Fiscal Year 2020-21 Final Budget
he Fiscal Year 2020-21 Budget adoption process was successfully completed when the Bear Valley Community Services District Board of Directors held a public hearing and adopted the Final Budget on June 26, 2020. The District began the budget process by preparing the draft Proposed Budget with Department Heads and Supervisors in the spring and then held a public budget study session on June 5th to present an overview and fiscal status based on the draft Proposed Budget. The Proposed Budget was then presented to the Finance Committee on June 17th, where it was reviewed and recommended for approval to the Board of Directors. The Final Budget was then adopted by the Board on June 26th, prior to the July 1 start of the District’s next fiscal year.
The 2020-21 Budget includes overall expenditures of $11,357,520, a decrease of $704,889 or 5.8% in comparison to the 2019-20 Budget. The 2020-21 Budget funds several major projects expected to be completed this year, including re-striping of several roads, the second phase of a multi-year guardrail improvement project to replace outdated guardrail, the third year of a five-year plan to rehabilitate and/or replace all existing mailbox stations, the gate drainage project, the fuel station upgrade, a hydro-geological study, a new phone system, and a community survey.
Revenues in the General Fund remain relatively flat with the main revenue source of property tax conservatively estimated to increase by 1.6% from Fiscal Year 2019-20. Prior to the consideration of one-time expenditure and capital outlay requests, the General Fund operating budget was balanced. With surplus fund balance above its contingency reserve requirement, the General Fund was able to fund capital needs like a Fuel Station Upgrade and a Police Vehicle. The General Fund’s fund balance is estimated to be $2,816,806 at the end of Fiscal Year 20-21.
The Roads Fund budget for Fiscal Year 20-21 includes $150,000 for Guardrail Repair and Replacement as well as $60,000 for the Phase 2 Striping project. Capital projects include the purchase of a much-needed roller compactor and the gate drainage project. The Roads Fund’s fund balance is estimated to be $323,080 at the end of Fiscal Year 20-21.
The Water Enterprise Fund’s finances are improving after the implementation of a rate study and gradual rate increases to cover current operations and maintenance and build appropriate reserves. The Water Enterprise Fund is anticipated to have an operating surplus that will be used to replenish reserves as was intended with the adopted rate study. After funding a capital outlay budget of $754,000 that includes the Oakflat Booster Pump Repair and Mainline Replacement at Port Royal/Aqua Villa, the Water Enterprise Fund’s fund balance is estimated to be $211,350 and the Water Reserve Fund’s fund balance is estimated to be $746,429 at the end of Fiscal Year 20-21.
The Wastewater Enterprise Fund continues to be at a critical point as its current utility rates are unable to cover rising costs and capital needs. The Fiscal Year 20-21 operating deficit is estimated to be $330,370 and will be funded by a transfer from the Wastewater Reserve Fund, which will leave the reserve fund critically low at $15,140. A Rate Study will be finalized to accurately determine the overall cost of the operations and establish rates to cover current operations and capital needs as well as build appropriate reserves.
After completion of the Transfer Station Reconfiguration project to satisfy new state permit requirements and additional staffing to cover the Transfer Station operating hours, the Solid Waste Enterprise Fund budget is also reaching a critical point as its current utility rates are unable to cover rising costs and capital needs. The Fiscal Year 20-21 operating deficit is estimated to be $298,798 and will be funded by a transfer from the Solid Waste Reserve Fund, which will leave the reserve fund critically low at $73,044. A Rate Study will be completed here as well to accurately determine the overall cost of the operations and establish rates to cover current operations and capital needs as well as build appropriate reserves.
The adopted Final Budget for Fiscal Year 2020-21 is available for review at the front counter of the Bear Valley CSD Admin Building at 28999 South Lower Valley Road or in the Document Library.