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 am...
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