McKinleyville board adopts FY2026–27 budget; Measure B deficit projected to improve, insurance coverage increased

The McKinleyville Community Services District board adopted the fiscal year 2026–27 budget and the associated appropriation limit (Resolution 2026‑22) at its June 3 meeting after a presentation by finance director Samantha Howard.

Key points highlighted in the presentation included a planned purchase of a boom truck in the Street Lights fund that will create a one‑year operating deficit but leave the fund with a projected positive net position at year‑end. Staff said the Measure B fund—whose assessment amount was increased by property owners in 2023—showed a prior audited deficit of roughly $352,275, but with current-year estimated actuals and conservative budgeting the 2026–27 draft projects a significantly reduced deficit by June 30, 2027.

Howard also explained a near‑40% increase in general liability insurance in the proposed budgets after staff undertook an internal fixed‑asset audit and found multiple district assets not previously scheduled on insurance forms (parks, playgrounds, tanks and some vehicles). The district contracted an appraiser and updated coverage via its risk‑pool provider to ensure property and equipment are insured going forward.

Board members asked questions about CalPERS employer contribution rates, the change in PEPA versus classic employee mixes affecting contribution rates, and continuity of operations. After public comment praising staff work, the board approved the FY2026–27 budget and the appropriation‑limit resolution by roll call vote.