TO: Members of the Governing Board
FROM: Christopher Silke - District Engineer
REPORT BY: Sarah Geiss - Supervising Staff Services Anayst
SUBJECT: Fiscal Year 2024-2025 Mid-Year Budget Review
RECOMMENDATION
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Approve a Budget Amendment increasing appropriations in the Napa Berryessa Resort Improvement District (District) operations budget from its available fund balance in the amount of $110,000 to cover the cost of continued operations and maintenance expenses through the end of the fiscal year. (Fiscal Impact: $110,000; Napa Berryessa Resort Improvement District Fund; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
District staff continuously monitors the operations and capital budgets throughout each fiscal year. A part of this continuous review is the submittal of the six-month budget projections to fiscal staff, and a recommendation for additional funds needed to allow the District to operate through the end of the fiscal year.
The six-month review of the operations budget (Fund 5240, Subdivision 5240000) shows that expenditures will exceed approved appropriations by the end of the fiscal year. Since the adoption of the operating budget in June 2024, several unplanned equipment and service line pipe failures in the water and sewer systems required urgent repairs above and beyond what was originally budgeted to maintain uninterrupted operations of the water and sewer systems. Additionally, along with the noted repairs, increased compensation for operations contractor oversight was necessary to oversee two major water main breaks and to address water quality process control challenges at the water treatment plant caused by November 2024 storms.
While District staff includes budget for a variety of unexpected repairs each year, the actual and projected costs of these repairs in the current fiscal year exceeded the estimated values adopted by the Board during the budget hearings and a budget amendment from available fund balance in amount of $110,000 is needed to allow the District to continue paying invoices through the end of the fiscal year.
Requested Actions:
1. Approve a Budget Amendment increasing appropriations by $110,000 in the Napa Berryessa Resort Improvements operations budget
a. Increase Other Professional Services by $50,000
b. Increase Utilities-Electric by $60,000
c. Offset all expense increase against available fund balance
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? |
Fund 5240, Subdivision 5240000 |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
Approval of the budget amendment will allow the District to continue paying invoices for operations and maintenance activities through the end of fiscal year |
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Is the general fund affected? |
No |
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Future fiscal impact: |
The reduction of available fund balance requested by this action may impact the District's ability to pay for unexpected expenses in future fiscal years. The end of FY 2024-2025 fund balance is projected to be approximately $900,000 including this budget amendment. |
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Consequences if not approved: |
If the budget amendment is not approved, operational expenses are anticipated to exceed budgeted appropriations before the end of the fiscal year |
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.