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Consent-General Government # 10.
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| Board of Supervisors |
County Administrator |
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| Subject |
| Adopt budget resolution increasing North Davis Meadows County Service Area 2017-18 Operations budget by $215,000 utilizing fund balance to address higher than anticipated utility costs and expenditures related to the design of the community's Water System Consolidation Project. (No general fund impact) (4/5 vote required) (Blacklock/Gabor) |
| Recommended Action |
| Adopt budget resolution increasing North Davis Meadows County Service Area (CSA) 2017-18 Operations budget by $215,000 utilizing fund balance. |
| Strategic Plan Goal(s) |
Operational Excellence
Thriving Residents
Safe Communities |
| Reason for Recommended Action/Background |
An increase in the Operations budget for the North Davis Meadows CSA is necessary to address higher than anticipated utility costs (current water service) and expenditures related to the design of the community's Water System Consolidation Project.
When the Water System Consolidation Project was initiated in 2016, it was anticipated a planning-only loan would be obtained, and thus CSA fees were increased accordingly. It was discovered in 2017 that such a loan was not available and CSA fees would not cover the costs of project design. As the engineering of the project was already underway, a $430,000 loan from the County was obtained to cover planning costs (project management, engineering, studies) until a construction loan for all costs of the project (including planning) would be awarded, which was anticipated for early 2018. A change in course of the project has both increased planning costs and delayed that loan until fall of 2018.
These expenditures, while not structural, are likely to put the CSA's Operations budget into a temporary cash-flow deficit by the end of 2017-18, even with the current $430,000 County loan. If that is the case, the need to increase the County loan will be evaluated along with the timing of award of a construction loan. |
| Collaborations (including Board advisory groups and external partner agencies) |
| Financial Services |
| Competitive Bid Process |
| N/A |
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| Fiscal Impact |
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| Source of Funds for this Expenditure |
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