Knowledge brings responsibility.
(1) June 30, 2006, “Note 12, The District in the past fiscal year incurred significant losses in the Enterprise Funds (Water and Wastewater). The Water Fund realized a deficit change in net assets of $135,749 and the Wastewater Fund $454,183. If the District continues to incur these deficits it will be unable to meet their ongoing obligations.
(2) February 22, 2007, Mid year Budget Review: “ The CCSD is not meeting the debt coverage ratio required on the bond debt issue for the Wastewater Department.”
(3) February 22, 2007, Reserves: It is projected that $886,507.00 from Reserves will be needed to balance the 2006/2007 Operating Budget from January 1-June 30, 2007.” The Reserve Balance at its highest point was $16.5 million. As of August 31, 2007, the reserve account held $4,827,953.
(4) November 19, 2007, Agenda No. V.A. 6 Reserve Balance $4,141,494.00
(5) For the fiscal year ending June 30, 2006, the following expenses accounted for the growing deficit: Pine Knolls Tank Project, Build Out Reduction Program, Desalinization Project, Meter Replacement Program, and Water Master Plan EIR, the Bluff Trail, Santa Rosa Creek Riparian Bank and tennis courts. (page 4, Auditor’s Report from Basic Financial Statements.) Page 14, from audited financials, June 30, 2006: “Labor costs, including benefits, account for approximately 50% of the CCSD’s Costs
(6) Page 40, Annual Pension Cost,
6/04 $203,701
6/05 $318,003
6/06 $513,579
This increase in the Pension Cost is extremely troubling.
(7) The miracle of compounding and savings are well known, the downside of deficit spending and compounding costs of benefits can lead to the District’s Bankruptcy.
Given the balance of $4,141,494 in the reserve account, and the deficits accruing each month, we have only a few months to avert bankruptcy, and it can’t just be done with a rate increase but will require cuts in operating expenses. Everything will have to be on the table, both labor costs, including benefits and all the projects set forth in item (5).
It seems this would be a time for pro-growth agendas and anti-growth agendas be put aside and we concentrate on the financial survival of the district.
Last 5 posts by charlotte
- No Water, No Development
- Sanders Viewpoint, June5
- May 22 Budget Hearing
- Salaries and Benefits and Public Safety
- A Cautionary Tale
Thank you, Charlotte, for this informative comment! The more detail we can disclose concerning financial aspects of CCSD, the more likely the district will be to aspire to and obtain fiscal responsibility.
The pension issue confronts public service and business employees all across the country and so confronts tax payers, consumers, and investors as well. I think a careful, detailed description of salaries, wages, and benefits for CCSD staff needs to be done immediately. Then we have to decide what can be afforded in this district. Elizabeth Bettenhausen
Elizabeth, well said.
To your point about benefits – CSD law allows directors to have the same
benefits that management of a CSD receives. I have requested from Ms. Burdock a list of all benefits received by the directors from the district. I think this is important for two reasons
(1) a fair stipend and benefit program will encourage quality people to run for the board. The amount of time and energy a board director needs to put in to do a good job requires more than the old “$100.00 one meeting a month compensation. Additional benefits (such as health benefits) would incentivize well qualified applicants to run for our board. It is important that all citizens know the total amount of compensation received by the board of directors (as well as staff management).
I have received through public record requests a copy of credit card charges for the staff as well as those of some of the board. Some board members have credit cards, others do not Some have just requested checks for reimbursement of trips, hotels, food, etc. .
I also have copies of stipend amounts for the months of Sept and Oct.
Chaldecott received $500.00 IN Oct, and $600.00 in Sept. Cobin received
$500.00 in Sept. and $600.00 in Oct, Sanders received $500.00 for Aug,
and $500.00 for Sept. ( i didn’t get a copy of his oct stipends)
I will scan to Amanda the copies of stipend requests and credit card charges so you will be able to review all the charges for everyone.
(2) Public disclosure of all compensation is important so that the rate payers can provide oversite to the staff and directors expenditures for their travel, entertainment, lodging etc. Without public disclosure there is no incentive to show some discipline when deciding who will travel to meetings, and what amounts to spend.
I requested full disclosure from Ms. Burdock on December 6. When I receive the information I will post it.
I hope this information will help get qualified people to run for the board if we have a vacancy, or in November, and that knowing expenses are being scrutinized, the board and the staff will exercise good stewardship of our funds.
Charlotte Darehshori
From the Government Code governing CSDs in California. (The code can be viewed in its entirety in the Resource Links of AboutCambria.com)
61047. (a) The board of directors may provide, by ordinance or resolution, that each of its members may receive compensation in an amount not to exceed one hundred dollars ($100) for each day of service. A member of the board of directors shall not receive compensation for more than six days of service in a month.
(b) The board of directors, by ordinance adopted pursuant to Chapter 2 (commencing with Section 20200) of Division 10 of the Water Code, may increase the amount of compensation that may be received by members of the board of directors.
(c) The board of directors may provide, by ordinance or resolution, that its members may receive their actual and necessary traveling and incidental expenses incurred while on official business. Reimbursement for these expenses is subject to Section 53232.2 and 52232.3.
(d) A member of the board of directors may waive any or all of the payments permitted by this section.
(e) For the purposes of this section, a “day of service” means any of the following:
(1) A meeting conducted pursuant to the Ralph M. Brown Act, Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5.
(2) Representation of the district at a public event, provided that the board of directors has previously approved the member’s representation at a board of directors’ meeting and that the member delivers a written report to the board of directors regarding the member’s representa-tion at the next board of directors’ meeting following the public event.
(3) Representation of the district at a public meeting or a public hearing conducted by another public agency, provided that the board of directors has previously approved the mem-ber’s representation at a board of directors’ meeting and that the member delivers a written report to the board of directors regarding the member’s representation at the next board of directors’ meeting following the public meeting or public hearing.
(4) Representation of the district at a meeting of a public benefit nonprofit corporation on whose board the district has membership provided that the board of directors has previously ap-proved the member’s representation at a board of directors’ meeting and the member delivers a written report to the board of directors regarding the member’s representation at the next board of directors meeting following the corporation’s meeting.
(5) Participation in a training program on a topic that is directly related to the district, that the board of directors has previously approved the member’s participation at a board of directors’ meeting and that the member delivers a written report to the board of directors regarding the member’s participation at the next board of directors’ meeting following the training program.
Note that the new §61067 allows CSDs to provide benefits to the members of their boards of directors, just like other local governments. Those benefits are in addition to the stipends and reimbursements that this section allows.