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Policy review: committee told enterprise rates can'not substitute for general-fund priorities
Summary
A policy presentation outlined that CCSD's enterprise funds (water/wastewater) are legally restricted and cannot be used freely for parks or open-space maintenance; presenters urged prioritizing public safety and water/wastewater infrastructure and suggested greater use of nonprofit partners for parks upkeep.
The CCSD finance committee spent substantial time on Jan. 12 discussing how limited general-fund revenue constrains parks, recreation and open-space maintenance and why enterprise revenues are not interchangeable with those general funds.
Mr. McElhinney framed the issue: “the ratepayers pay rates for, into the enterprise fund to support water, wastewater, whereas the general fund is funded by property taxes, which are primarily meant for fire protection.” He told the committee the district's combined revenue is about $14.6 million, with roughly $4.2 million in the general fund and $10.46 million in enterprise funds. He cited Proposition 218 as a legal constraint on enterprise-fund use and warned that franchise fees (about $170,000 annually from Mission Country Disposal) face legal uncertainty in higher courts.
Committee members and staff discussed priorities and possible approaches to closing the general-fund gap: shifting allocations through attrition (not filling vacant positions in facilities and resources), creating a maintenance fund supported by local nonprofits for the skate park and other new amenities, and better tracking of staff hours devoted to open-space stewardship to allocate costs appropriately.
The packet and presenter also flagged an MSR/LAFCO review that showed the district's net position decreased 12% over a five-year audited period; presenters said that history and recent unfunded responsibilities explain the push to prioritize fire and critical infrastructure.
Possible near-term actions discussed included continuing to work with Friends of the Fiscolini Ranch on stewardship and endowment use, pursuing targeted grants for signature projects (including Vets Hall upgrades), and bringing a fee-schedule update and procurement items to future meetings. Staff agreed to return with tracking metrics for ranch maintenance hours and a status update on potential historic designation or FEMA-eligibility for the Vets Hall.
Committee members asked staff to put the finance-policy slide back on a future agenda for extended discussion during the budget cycle.
