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Isla Vista CSD adopts FY25‑26 budget, plans reserve withdrawal and flags longer‑term deficits
Summary
The Isla Vista Community Services District approved a FY25‑26 budget with $1.946 million in revenue, $1.945 million in expenses, and a $130,551 reserve withdrawal to cover an operating shortfall while staff warned five‑year projections show a cumulative deficit if revenue or costs do not change.
The Isla Vista Community Services District board on Aug. 12 approved the district’s FY25‑26 budget after staff presented revenue and expense details and five‑year projections showing persistent structural shortfalls if current trends continue.
Staff said total revenue for 2025‑26 is $1,946,000 and total expenses are $1,945,000; to balance the year the budget includes a one‑time reserve withdrawal of $130,551 to cover an operating deficit. Revenue relies heavily on the district’s utility user tax (roughly $1.5 million) and includes a $200,000 contribution from UCSB and $15,000 from a county agreement for room management income.
On the expense side, staff described a distribution of roughly 66% community programs/non‑operations and 34% operations, with salary costs representing about 62% of operating expenses. New or changed items include funding for a second data intern, one‑time costs for new community center couches, and added budget for three ADA portable restrooms on Del Playa (cost‑shared with the county at three‑quarters district / one‑quarter county for annual operations). Staff said insurance and health‑benefit costs are rising and forecast a 14% increase in employee health costs in January for next year.
The board reviewed funding priorities and items that did not make this budget (a second community engagement intern, dedicated public‑art funding, and some branding/event line items). Staff presented five‑year projections that, under current assumptions, show a cumulative deficit of approximately $821,000 across five years if no policy changes on revenue or expenses are implemented; board members urged exploring revenue options and continued cost discipline.
After discussion of program priorities, trash and restroom projects, and parking‑program reserves, the board voted to adopt the FY25‑26 budget by voice vote (motion passed 4–0). The board also reaffirmed $250,000 in reserves for parking operations and $50,000 for parking capital.
What’s next: staff will continue to pursue grants and revenue opportunities, implement an updated rental/reservations system and move‑in outreach, and return to the board with options for longer‑term revenue changes to avoid depleting reserves.
