Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Long Term Financial Plan topic
No spam. Unsubscribe anytime.
District presents long-term financial plan update; staff seeks board nod on reserve transfers
Summary
Finance staff reviewed the 10-year capital and cash-flow model, described assumptions (3% capital inflation, 6% property tax growth, 7% personnel inflation), proposed transferring $700,000 this year to replenish a $3M water infrastructure reserve, and reported Madden Creek Phase 3 would be funded from unrestricted general fund dollars.
Finance staff presented the district's annual long-term financial planning update, describing updated assumptions and capital program totals and asking the board for feedback and a nod toward a proposed $700,000 transfer into a water infrastructure reserve this year.
The presentation included a 10-year water capital forecast (approximately $130 million total, $83M debt-financed), sewer capital ($26.5M PAYGO), and general fund capital plans (nearly $40M with $15M shown as debt-financed). Staff noted an updated capital inflation assumption of 3% and that the Madden Creek Phase 3 project will be funded this year with unrestricted general fund dollars while Phase 4 remains modeled as USDA debt.
On reserves, staff proposed replenishing the water system acquisition and infrastructure improvement reserve to $3,000,000 over three years; the initial ask is a $700,000 transfer this year, to be formalized in a June resolution. Staff emphasized the model is conservative and intended as a planning tool; board members asked for clarity on property-tax impacts, debt-service coverage, and scenarios if grants or financing change.
Board members and staff discussed key "knobs" on the model — rates, property tax allocation, PAYGO vs. debt financing — and noted that some years show constrained unrestricted cash primarily because of planned debt-service reserve funding in later years (notably 2029 in the model). Staff said they will return in June with a formal resolution to amend reserve policy if the board confirms the direction.
