Title
Adopt a Groundwater Monitoring Program Regulatory Fee Stabilization Policy.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
Adopt a Groundwater Monitoring Program Regulatory Fee Stabilization Policy.
SUMMARY/DISCUSSION:
Generally Accepted Accounting Principles (GAAP) recommend that governments establish a formal policy to indicate an appropriate level of reserves to be maintained for rate stability, capital improvement projects, and other operational obligations. The purpose of the Groundwater Monitoring Program (GMP) Regulatory Fee Stabilization Policy (RFSP) is to implement sound financial management practices consistent with the GAAP recommendation, and moderate the potential for fee volatility due to unforeseeable circumstances. The RFSP proposes to establish two reserve funds within the GMP, a Capital Reserve and an Operating Reserve, and to limit the accumulation and replenishment of the reserve within any given fiscal-year to 20% of the reserve target.
Each year, the GMP is reevaluated to ensure regulatory objectives are being met reliably and cost effectively. The annual GMP budget preparation and fee-setting process entails numerous public meetings and two public hearings before final consideration for approval by the Board of Supervisors. The regulatory fees ultimately set are consistent with Gov. Code § 53758(c), which states in part: “…that the amount [of the fee] is no more than necessary to cover the reasonable costs to the local government in providing the specific benefit or specific government service…” While great care is taken to plan for effective implementation of the GMP, not all uncertainty can be eliminated. Because the GMP is in place to meet SGMA regulatory mandates, unforeseen yet necessary actions cannot simply be dismissed or delayed. If an unforeseen action becomes necessary, the Agency has two options: 1) it can amend the GMP budget and fee in the then current fiscal-year if cash is insufficient...
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