Los Osos CSD unanimously adopts FY 2026–27 budget; board approves recruiting assistant general manager and authorizes reserve use

At a public hearing, the Los Osos Community Services District Board of Directors voted unanimously to adopt Resolution 20269, approving the district's fiscal year 2026–27 final budget and associated adjustments.

General Manager Greg Quallic presented the budget and described key changes adopted by staff and the board: updated Zone A tax allocations ($150,000 to the fire fund; $100,000 to parks and recreation), modest cost-allocation percentage shifts among funds, and a $215,000 increase in the administration budget to cover overlap pay, a leave payout for outgoing General Manager Ron Muns and the new position. Quallic proposed creation of an assistant general manager role (with an alternate recruitment title of assistant general manager/district engineer). Salary ranges presented were $127,000–$154,500 for the AGM and $151,000–$184,500 for the AGM/District Engineer; staff proposed initially funding the position 60% from water and 40% from admin.

On the request to authorize use of reserves, staff asked for prior board authorization to use up to $1,000,000 from the district's capital outlay reserve (fund 500) as a safeguard if unassigned cash proves insufficient for pay-as-you-go capital projects; staff said they would notify the board if and when reserves are actually used. Quallic said the recruitment timeline could begin as soon as the following week, with first interviews in July and an expected onboarding by the end of August to accommodate notice periods.

During discussion directors asked for clearer, side-by-side cost-allocation comparisons and emphasized the need to revisit allocations if capital workloads change (staff acknowledged the 60/40 split is an initial estimate and can be adjusted after hire). Resident Richard Margusson urged a future board workshop on the mechanics of cost allocation and raised that capital line items often roll over year to year.

A board member moved adoption of Resolution 20269 and a second was recorded; a roll call vote recorded all present directors voting yes and the resolution passed unanimously. The board also approved the job descriptions and salary schedules for the new position as part of the motion. Staff will return with any updates if reserves are used and with further materials should recruitment or allocations change.