TO: Board of Supervisors
FROM: Steven Lederer - Director of Public Works
REPORT BY: Sarah Geiss - Supervising Staff Services Analyst
SUBJECT: Napa County Community Facilities District 2012-1 MST FY 2025-26 Budget
RECOMMENDATION
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Conduct a Public Hearing to consider testimony for Milliken-Sarco-Tulocay on the Fiscal Year 2025-26 Recommended Budget for a total appropriation of $989,976. (Fiscal Impact $644,593 Net Use of Fund Balance; Milliken-Sarco-Tulocay Fund; Discretionary)
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BACKGROUND
The Milliken-Sarco-Tulocay (MST) basin has been designated as a groundwater deficient area for over 20 years. The County, in conjunction with Napa Sanitation District (NSD), participated in the planning and construction of recycled water pipelines to help alleviate the problem. Construction of the initial MST Recycled Water Pipeline Project was completed in 2016. The construction budget, which was the basis for a 1% State Revolving Fund (SRF) loan and formation of the Community Facilities District (CFD), was $13.2 million, partially offset by a 25% Water Smart grant from the Bureau of Reclamation. During construction, approximately $5 million in additional funding (via grant) was approved by the State, resulting in the final debt amount of $6,889,339 to be repaid over 20 years. Loan repayment commenced one year after project completion, in late 2016. CFD revenue has been collected since 2014 and is being used to repay the loan.
With the project now completed, the CFD special taxes have been recalculated based on the total project costs and current debt levels. Effective Fiscal Year 2022-23 sufficient funding was forecast to meet financial obligations of the CFD, such that no additional base special taxes are anticipated to be collected from CFD members, except for those members who owe catch up taxes based on joining the CFD late. One final round of annexations in Fiscal Year 2023-24 resulted in adequate funding commitments to fully retire the debt service once al...
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