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Finance committee accepts Q1 budget report, flags $2.3M Steuart Street tank and fire engine payment
Summary
At its Oct. 20 meeting the Cambria Community Services District finance committee accepted the FY25–26 first-quarter budget report, reviewed a $2.3 million budget adjustment for the Steuart Street tank and a $1 million fire engine purchase (planned from reserves), and discussed SAFER grant cost-sharing for additional firefighters.
The Cambria Community Services District finance committee on Oct. 20 accepted the district’s FY2025–26 first-quarter budget report and discussed several large capital items that will push reserves to cover planned expenditures.
Denise, the district finance/staff presenter, told the committee that the board has already approved two budget adjustments reflected in the report: $2.3 million for the Steuart Street tank project and $1 million for a new fire engine. She said those amounts are being treated as planned reserve expenditures and explained timing distortions tied to property tax receipts that make the early‑year financials appear in deficit.
Why it matters: The Steuart Street tank and the fire engine together represent the largest unprogrammed capital draws on the district’s reserves this year and will shape near‑term funding decisions. The committee discussed whether to fund the tank from reserves or seek outside financing and noted the district may need loans for additional projects.
On the fire engine, committee members debated payment options and were told the board chose to make an upfront payment to capture a substantial discount. “We saved close to $200,000 by paying up front,” Denise said, noting the choice reduced overall cost though it increases near‑term cash outflows.
The committee also reviewed a federal SAFER grant award that will add firefighter staffing. Denise said the SAFER award provides funding for three firefighter positions but with a lower cost‑share than prior awards: "This year it's 75% that they pay 75% and the third year they only pay 35%," meaning the district will bear increasing payroll costs in later years.
Budget mechanics and capital accounting were a major portion of the presentation. Denise walked members through fund‑by‑fund variances, explaining that large negative balances reported in enterprise funds largely reflect planned capital projects and carryforwards (including a $12.1 million bond for SST/ECM wastewater projects) rather than unexpected operating shortfalls.
"Some of these big projects come forward like that and then as we get closer to completion ... we get an actual dollar value of what it's going to cost," Denise said, describing how RFPs and vendor bids can change earlier cost estimates.
The committee voted to accept the report and asked staff to include committee comments in the staff report to the full board. The item will appear on the board meeting agenda for formal consideration.
