TO: Members of the Governing Board
FROM: Christopher Silke, District Engineer
REPORT BY: Christopher Silke, District Engineer
SUBJECT: Presentation of the 2024 NBRID Water and Sewer Rate Study and Discussion of the Funding Scenarios to Balance the Utility Budget
RECOMMENDATION
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Receive presentation of the Napa Berryessa Resort Improvement District (NBRID) Water and Sewer Rate Study and instruct NBRID staff to advance either Scenario B or C as outlined in previous financial reports and summarized below as a short-term measure to boost revenue until re-development of a recreational resort, housing rebuilds, and utility infrastructure upgrades can bring fiscal stability to the operating budget. (No Fiscal Impact, Discretionary)
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BACKGROUND
The water and sewer utility operating budget faces mounting deficits due to customer loss, unplanned expenses, and infrastructure weakness at risk of failures. Napa County has provided a series of temporary loans to support the NBRID's utility operations and minor capital projects. In early 2024, a certified Median Household Income Survey report concluded NBRID is a Disadvantaged Community (DAC) creating opportunities to fund capital improvement projects via grants provided the District has a balanced operating budget with sufficient cash reserves. RDN, Inc., the District's Utility Finance Consultant, will present updated water and sewer operating budget projections to achieve financial sustainability. Adjustment to User Rates and/or adoption of a Special Tax across the subdivision parcel base is a pre-requisite to applying for capital improvement project financial assistance through State Water Resource Control Board, Division of Financial Assistance Programs.
In May of 2021 and June 2023, the District requested and received two $1,000,000 loans from Napa County for payment of expenditures above and beyond the District's available fund balance until such time as a proposed resort development at Steele Canyon would b...
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