Cameron Park CSD Approved Budget has a Structural Deficit of at least $113,265

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Vicky Neibauer, Sr Administrative Analyst, June 27, 2012

The Cameron Park CSD now has an approved budget for the coming fiscal year starting July 1 with a structural deficit of at least $113,265 funded by savings from deferred Fire Program capital expenditures such as engines and other safety equipment and maintenance. The exact amount of the deficit will not be known until sometime after June 30 when the District completes its year end accounting process.

This coming fiscal year’s $4,988,599 budget includes two additional fulltime, permanent positions with full benefits and other discretionary spending and is more than 13.8% greater than the spending expectations for the current fiscal year to end June 30. The CSD Board approved this 13.8% spending increase with flat property tax revenue expectations while El Dorado County and others are looking to a 1% property tax decline.

At the General Board Meeting on June 20, Board Member Greg Stanton said “Come September, if the money is not there, we will make the cuts needed.” My question is, why are we spending money we do not have in hand? Is that not exactly the game that has gotten this Country into the financial mess it finds itself in today? If September is such a short time to wait to see ‘if the money is not there’ then surely it is not too long a time to wait TO BE SURE THE MONEY IS TRULY THERE TO SPEND!

During the same discussion, Stanton also suggested it was important to give the District and the General Manager the tools with which to do the job of running the district including the two new permanent positions. Yet, these two positions are to be held unfilled until September for review by the Board. A tool indeed, like a shovel with only the handle and no spade. In addition, approved positions without funding can lead to unintended financial results in the future when the details of approval become faded and susceptible to current circumstance.

Again, I ask, if September is such a short time to wait to see ‘if the money is not there’ then surely it is not too long to wait TO BE SURE THE MONEY IS TRULY THERE TO SPEND!

Comments

CPCSD Budget

Does the county or district charter require the CPCSD to balance the budget? Are there any county ordinances or state laws that require a balanced budget?

Submitted by Vic Subia on Wed, 06/27/2012 - 09:02 Permalink

GOV. CODE § 26909

California Code - Section 26909 (a)(1)The county auditor shall either make or contract with a certified public accountant or public accountant to make an annual audit of the accounts and records of every special district within the county for which an audit by a certified public accountant or public accountant is not otherwise provided. In each case, the minimum requirements of the audit shall be prescribed by the Controller and shall conform to generally accepted auditing standards. (2)Where an audit of a special district's accounts and records is made by a certified public accountant or public accountant, the minimum requirements of the audit shall be prescribed by the Controller and shall conform to generally accepted auditing standards, and a report thereof shall be filed with the Controller and with the county auditor of the county in which the special district is located. The report shall be filed within 12 months of the end of the fiscal year or years under examination. (3)Any costs incurred by the county auditor, including contracts with, or employment of, certified public accountants or public accountants, in making an audit of every special district pursuant to this section shall be borne by the special district and shall be a charge against any unencumbered funds of the district available for the purpose. (4)For a special district that is located in two or more counties, the provisions of this subdivision shall apply to the auditor of the county in which the treasury is located. (5)The county controller, or ex officio county controller, shall effect this section in those counties having a county controller, or ex officio county controller. (b)A special district may, by unanimous request of the governing board of the special district, with unanimous approval of the board of supervisors, replace the annual audit required by this section with one of the following, performed in accordance with professional standards, as determined by the county auditor: (1) A biennial audit covering a two-year period. (2)An audit covering a five-year period, if the special district's annual revenues do not exceed an amount specified by the board of supervisors. (3)An audit conducted at specific intervals, as recommended by the county auditor, that shall be completed at least once every five years. (c)(1)A special district may, by unanimous request of the governing board of the special district, with unanimous approval of the board of supervisors, replace the annual audit required by this section with a financial review, in accordance with the appropriate professional standards, as determined by the county auditor, if the following conditions are met: (A)All of the special district's revenues and expenditures are transacted through the county's financial system. (B)The special district's annual revenues do not exceed one hundred fifty thousand dollars ($150,000). (2)If the board of supervisors is the governing board of the special district, it may, upon unanimous approval, replace the annual audit of the special district required by this section with a financial review in accordance with the appropriate professional standards, as determined by the county auditor, if the special district satisfies the requirements of subparagraphs (A) and (B) of paragraph (1). (d)Notwithstanding the provisions of this section, a special district shall be exempt from the requirement of an annual audit if the financial statements are audited by the Controller to satisfy federal audit requirements.

Submitted by Admin on Wed, 06/27/2012 - 09:58 Permalink

CPCSD Budget

This looks to me like legal requirement(s) to audit a district. But I don't see anything about a legal requirement to balance the budget. Am I wrong?

Submitted by Vic Subia on Thu, 06/28/2012 - 16:11 Permalink

Cameron Park CSD Approved Budget has a Structural Deficit of at least $113,265

Comments

CPCSD Budget

GOV. CODE § 26909

CPCSD Budget

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