Draft Stallion Springs CSD budget shows deficits in several areas

A public hearing for the 2023-24 fiscal year budget for Stallion Springs Community Services District will be held on June 20.

General Manager Vanessa Stevens reviewed a draft budget with members of the district’s Board of Directors at their meeting on May 23.

Revenue for the district in the next fiscal year is expected to be $3,864,255 with operating expenses at $3,283,200 and capital expense at $757,206 for a total expense of $3,939,961.

The water department, at about 28 percent of the operating expense, is among the district’s largest expenses, followed by the police department at 26 percent and administration at 22 percent.

Stevens said the budget assumes a 6.5 percent cost of living increase for all employees and a 5 percent merit increase for those employees who will qualify for raises.

“The budget also reflects the unfortunate news that our modification factor increased in the calculation of workers’ compensation insurance, so most departments show an increase in that cost,” she said in a staff report to the board. The budget also reflects a significant increase in property, liability, utility and fuel costs, she said.

The sewer and parks departments each total about 9 percent of the operating budget, with solid waste at 4 percent and roads at 2 percent.

The district’s operating expense for administration is $732,200. Stevens said this is for a full-time general manager, support staff for the office and half of the expense for the district’s public works supervisor. The administration department budget is supported partly by property tax and partly by allocations from other department budgets.

Operating expense for the police department is budgeted at five full-time officers, including the chief of police, Stevens said, adding that it is difficult for the small department to remain fully staffed — as is the case with small agencies across the country. The police department is funded in part by property tax, state funding, and an assessment previously approved by voters.

The district’s water revenue has continued to decrease due to conservation efforts by residents and drought conditions that created a drop in water sales, the general manager said. An expected decrease in new homebuilding related to real estate market conditions also means less revenue from water capacity fees, she said. The district uses those fees to offset loan payments covering water department capital expense.

The anticipated water department deficit for next year is $270,509, Stevens said.

Similar factors have impacted revenue for sewer/ wastewater operations, she said, but operational expenses have increased due to utility, chemical and lab analysis costs going up.

The roads department shows a deficit of $103,042 in the coming year, Stevens noted.

“This deficit, along with the current condition of some of our roads, clearly shows the need to continue with an increase in the current road assessment,” she said. In March, the board approved spending up to $40,000 for a Proposition 218 road study. Once complete the board will review the study and determine options for addressing road needs and related funding.

Although the district collects a $150 per parcel assessment annually, more than half of those funds go to pay an annual loan payment of $182,642. The loan covered a much-needed road contract a few years ago, Stevens said.

PUBLIC HEARING

The public hearing will be held as part of the district’s next regular Board of Directors meeting, set for 6 p.m. on Tuesday, June 20, at the district office, 27800 Stallion Springs Drive. Agenda information will be online at stallionspringscsd.com.