DATE: May 7, 2024
TO: Board of Supervisors
SUBMITTED BY: Steven E. White, Director
Department of Public Works and Planning
SUBJECT: Budget Resolutions for CSA 34SWTP and CSA OV
RECOMMENDED ACTION(S):
TITLE
1. Adopt Budget Resolutions increasing FY 2023-24 appropriations for County Service Area 34 Surface Water Treatment Plant - Millerton New Town in the amount of $100,000 for increased operational costs (4/5 vote).
2. Adopt Budget Resolution increasing FY 2023-24 appropriations for County Service Area OV - Van Ness Lighting in the amount of $5,000 for increased operational costs (4/5 vote).
REPORT
Approval of the recommended actions will increase FY 2023-24 appropriations, in the amount of $100,000 for County Service Area 34 Surface Water Treatment Plant (CSA 34SWTP), Org 9322; in the amount of $5,000 for County Service Area OV (CSA OV), Org 9314. This item pertains to a location in District 2 and to a location in District 5.
ALTERNATIVE ACTION(S):
If the recommended actions are not approved for CSA 34SWTP and CSA OV, remaining appropriations will be depleted before the end of FY 2023-24, and the districts will be unable to pay for district expenditures.
FISCAL IMPACT:
There is no Net County Cost associated with any of the recommended actions.
All costs for administering CSA 34SWTP are budgeted in Department of Public Works and Planning - CSA 34SWTP, Org 9322 (Millerton New Town), and all costs for CSA 34SWTP are paid by fees collected by benefitting zones and interest on cash reserves. The proposed budget resolution will increase appropriations using CSA 34SWTP Fund 0830 general reserves by $100,000 in CSA 34SWTP Org 9322 in the FY 2023-24 Adopted Budget.
All costs for administering CSA OV are budgeted in Department of Public Works and Planning - CSA OV, Org 9314 (Van Ness Lighting), and all costs for CSA OV are paid by benefit assessments and interest on cash reserves. The proposed budget resolution will increase appropriations using CSA OV Fund 0260 general reserves by $5,000 in CSA OV Org 9314 in the FY 2023-24 Adopted Budget.
DISCUSSION:
CSA 34SWTP is set up as a separate budget that began in FY 16-17 per the rate adjustment procedure which adopted an engineer’s report to set fees and assessments within County Service Area 34 (CSA 34), and its Zones A (CSA 34A), C (CSA 34C), D (CSA 34D), and G (CSA 34G) for the surface water treatment plant. A separate budget for the plant was determined to be the most efficient method of tracking and appropriately sharing the costs between the benefitting zones. This is because CSA 34SWTP does not collect revenues directly from the customers that use the plant. Funds for CSA 34SWTP are budgeted as operating transfers out of the funds from each zone of benefit. The water treatment plant began operations in June 2002, upon conveyance from the Developer under Settlement Agreement 02-271. The plant currently serves 394 active connections within CSAs 34A, 34C, 34D, and 34G. The plant will serve future zones of benefit within CSA 34 as the development within Millerton New Town continues. CSA 34SWTP has experienced increased expenditures due to turbidity issues. The budgeted appropriations for CSA 34SWTP will be increased by $100,000 using fund balance to fund operations, maintenance, and administrative costs.
CSA OV was formed in 1962, to provide street lighting for the residential area, Van Ness Boulevard Estates Lighting District, south of Herndon Avenue, along the west side of Van Ness Boulevard. Lighting is provided by a contract with PG&E. There are 251 parcels in CSA OV. Van Ness Lighting District maintenance budget is funded by annual assessments and interest on cash reserves. CSA OV has experienced increased expenditures due to the unplanned repair costs of eight (8) individual streetlights that were reported as out by residents. The budgeted appropriations for CSA OV will be increased by $5,000 using fund balance to fund operations, maintenance, and administration costs.
ATTACHMENTS INCLUDED AND/OR ON FILE:
On file with Clerk - Budget Resolution (Org 9322)
On file with Clerk - Budget Resolution (Org 9314)
CAO ANALYST:
Salvador Espino