TO: Members of the Governing Board
FROM: Christopher Silke, District Engineer
REPORT BY: Annamaria Martinez, Assistant Engineer
SUBJECT: Budget Amendment from USDA Water Loan CIP Reserves for Short-Lived Asset Replacement
RECOMMENDATION
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Approve a Budget Amendment to increase appropriations in the Napa Berryessa Resort Improvement District's "USDA Res WTP," Project 21072 budget by $40,000; offset by a reduction in the "USDA Bond-Water Depr Res," Project 16023 budget for the replacement of an eligible short-lived asset at the water treatment plant. (Fiscal Impact: $40,000 Revenue and Expense; Napa Berryessa Resort Improvement District Fund; Not Budgeted; Discretionary)
[4/5 vote required]
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BACKGROUND
The Napa Berryessa Resort Improvement District ("NBRID") is a special district of the State of California organized under the Resort Improvement District Law (Public Resources Code Section 13000 et seq.) for the provision of water and sewer service in an unincorporated portion of the County of Napa.
NBRID residents voted to approve Assessment District 2012-01 on July 10, 2012 to repay sewer/wastewater and water loans from the United States Department of Agriculture (USDA) used to fund two major improvement projects - the Wastewater Storage Capacity Upgrades and Treatment Plant Replacement Project and the Water Treatment Plant Replacement Project. NBRID issued Series A Bonds (Wastewater System Improvements) in the principal amount of $7,959,872 for the wastewater facilities and Series B Bonds (Water System Improvements) in the principal amount of $2,923,728 for the water facilities. The combined total of the USDA loan principal amount is $10,883,600.
In accordance with the loan agreements for the two USDA loans, NBRID is required to deposit an annual sum of $58,966 and $53,067 into a designated sewer (Project 16022) and water (Project 16023) loan depreciation reserve fund annually for 10 years. NBRID can use the funds included in the depreciation funds...
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