This action provides resolution for the Budget Overage for FY 2014, the Cash Overage for FY 2014 and any necessary advances of cash prior to full cost recovery utilizing a Proposition 218 processes. These actions are necessary for the closeout of the FY 2014 budget funds and recoverable in FY 2015.

In the last 3 years the Esparto budget of the MERCSA has been exceeded. The main reason being the water service bills for maintenance of all detention basins, walking paths and common areas within the town of Esparto. The Esparto Community Service District previously passed a Proposition 218 election which restructured water rates for end users including MERCSA. This did alleviate some future years water cost. Prior to this, the fixed cost during the winter months were equal to the cost of the water being turned on during the summer months, thus doubling the Esparto County Service Area costs for each year, and causing budget overages. Financial relief to the County Service Area was requested in previous years, but denied, thus a proposition 218 is now required to raise annual revenues to cover water costs. Also, during the last 3 years the CSA has moved forward with the most financially efficient landscape maintenance by using Yolo County Probation. This has assisted substantially in closing the gap to only a $10,000 difference in budget. A board resolution for the increase in Esparto CSA budget appropriations for $10,000 is necessary. The resolution is attached.