TO: Lake Berryessa Resort Improvement District Board
FROM: Tracy Schulze - Auditor-Controller
REPORT BY: Georgina Panganiban - Deputy Auditor-Controller
SUBJECT: Authorization to prepare necessary entries to close the financial books for the fiscal year ended June 30, 2025.
RECOMMENDATION
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Authorize preparation of the necessary accounting entries to close the financial books for the fiscal year ended June 30, 2025. (Fiscal Impact: $4,809,808 Expense; Lake Berryessa Resort Improvement District Fund; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
The Auditor-Controller anticipates completing all the necessary accounting entries to close the financial books for the fiscal year ended June 30, 2025 by Tuesday, September 30, 2025.
There are no changes requiring Board approval to the financial records for Lake Berryessa Resort Improvement District for the year ended June 30, 2025. In addition, there are no changes to fund balance commitments or restrictions - the district will maintain the fund balance restriction in the amount of $150,151 for FEMA/CALOES revenue received for the 2017 Storm Event. Funds are restricted until the projects are fully audited and can be released,
However, on June 24, 2025, your Board approved estimated amounts of remaining budget and related contracts for continued projects to be carried forward into the following year. The item presented today is to ratify final amounts resulting from completing all accounting entries through June 30, 2025.
The six capital improvement projects to be completed in Fiscal Year 2025-26 or beyond are as follows:
Project 19007
Ponds Inflow Mitigation Project was created in September of 2018 for the purpose of sewer collection system inflow and infiltration studies after heavy rainfall in the winter of 2017 caused a series of spills into the environment. The carryover appropriations amount is $1,563,653, fully funded by carryforward grant revenue of the same amount from the California Department of Water Resources. The re-encumbrance contract for G.H.D. Inc. (No.240306B) is $19,168 and, $19,067 for Benchmark Civil Construction, Inc. (No.250344B).
Project 22009
To find other sustainable potable water resources from Putah Creek, the drought, aged infrastructure and wildfire devastation in the Putah Creek watershed have compromised the water supply. The carryover amount is $1,766,233 and includes carryforward grant revenue from the California Department of Water Resources in the amount of $219,075.
Project 22013
Replace treatment process air compressors, refrigerated dryer, delivery piping, add cross-flow building ventilation, small pipe, metal door, protective coatings. Move chemicals to outdoor storage. Drinking water and regulatory permit compliance. The carryover amount is $2,860.
Project 22014
Coatings on the tank interior are deteriorating rapidly with pit corrosion emerging through steel wall panels in the past year. Seep stains when the tank has filled are evident on the outside surfaces. The metal roof dome and showing signs of corrosion attack. Replace bolted steel tank with reinforced concrete structure. A new tank is necessary to prevent raw sewerage spills into nearby Putah Creek prompting regulatory enforcement action by Central Valley Regional Water Quality Control Board. Clean water, environmental and regulatory permit compliance. The carryover amount is $990,280. The re-encumbrance contract for G.H.D. Inc. (No.230149B) is $44,379 and $798,554 for Piazza Construction (No.250178B).
Project 23005
To replace an existing, tank number 3, a 100,000-gallon redwood water storage tank original to the District with a new bolted steel tank with similar capacity. Other improvements include access road improvements, site security at all three of the District’s potable storage tank locations, and the installation of equipment in each of the three tanks that will help reduce the formation of disinfection byproducts in the District potable water. The carryover amount is $166,301 and includes grant revenue carryforward of the same amount from the state
Water Resources Control Board. The re-encumbrance contract for Piazza Construction (No. 240118B) is $104,061 and for RGM Kramer (No. 240189D) is $4,197.
Project 24019
The Drought and Water Supply Sustainability project includes procurement of material and services to install a floating intake structure in Putah Creek. It is to conduct temporary water transfers within the creek channel from up-channel pools to the existing intake pool during drought conditions, rehabilitation of the existing stationary intake structure, and hydrogeologic explorations for a potential alternative water supply that can satisfy the maximum daily water demand of the community. The carryover amount is $320,481 and includes grant revenue carryforward of $85,922.
The Attachment provides a summary of carryforward revenues, expenditures and the remaining contract amounts by project.
Requested Action: Approve budget amendment 25-1411, increasing appropriations for fiscal year 2025-26 by $4,809,808, for continued projects with remaining budget in the prior year.
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
No |
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Where is it budgeted? |
All capital projects listed (19007, 22009, 22013, 22014, 23005 and 24019) are funded with use of available fund balance. |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Approval of these entries will enable the books to be properly closed in compliance with Generally Accepted Accounting Principles (GAAP) and with State accounting and budgeting practices, and will also align the Capital Improvement Projects with the County's budgeting process. |
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Is the general fund affected? |
No |
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Consequences if not approved: |
The Lake Berryessa Resort Improvement District would not be in compliance with Generally Accepted Accounting Principles (GAAP) or State accounting and budgeting practices. In addition, the current approved Capital Improvement Projects would not have the appropriations to complete the work committed. |
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ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.