Board adopts final budget; staff seeks to roll forward $4.2 million in capital encumbrances

At a public hearing the Cambria Community Services District board adopted Resolution 33‑022026 approving the final FY26–27 budget and a package of encumbrance roll‑forwards for multi‑year capital projects.

Finance manager Miss Fritz told the board the encumbrance request total for the final budget is $4,200,000 and reviewed reserve estimates. She noted the district ended the prior fiscal year with audited cash balances and that projected deficits for some funds reflect planned capital expenditures funded from reserves: "a deficit of approximately $1,000,000, which is due to the purchase, which is a planned, reserve expenditure for the purchase of the fire engine," she said, explaining the fire engine purchase drove much of last year's deficit.

Miss Fritz also summarized enterprise fund results: wastewater with a net income of about $272,000 and WRF operations with a surplus of roughly $354,000, while the water fund shows a projected ~$761,000 deficit driven by capital projects (including Stewart Street tank work and influent/effluent line design). She explained that some large items (SST projects) are funded by loan proceeds or bond funds rather than reserves, and that staff will return with financing or grant options when a project exceeds the carry‑forward budget.

Directors and staff discussed reserve impacts and the timing of reimbursement grants. General manager McElhinney and Director Scott both emphasized active pursuit of grants, federal funding and potential funding consultants to reduce reserve draws. The board approved the final budget and the staff's roll‑forward list on a unanimous roll call vote.

Next steps: staff will present financing options where projects do not have fully identified funding and will incorporate roll‑forwards into the budget documents; follow‑up reporting on reserve status and grant reimbursement timing was requested by directors.