Title
Consider recommending that the Monterey County Water Resources Agency Board of Supervisors:
a. Approve and adopt the Fiscal Year (FY) 2024-25 assessment charges with cost-of-living adjustment (COLA) increase of 2.4% for Flood Zones 1, 1A, 8, 9, 12, and 17; and
b. Set and hold a public hearing on May 29, 2024, at 10:30 a.m. to consider approving and adopting assessment rate charges; and
c. Direct the Clerk of the Board of Supervisors to publish a hearing notice once a week for two consecutive weeks prior to the date set for the hearing.
(Staff Presenting: Nan Kyung Kim)
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Directors
recommend that the Monterey County Water Resources Agency Board of Supervisors to:
a. Approve and adopt the Fiscal Year (FY) 2024-25 assessment charges with cost-of-living adjustment (COLA) increase of 2.4% for Flood Zones 1, 1A, 8, 9, 12, and 17; and
b. Set and hold a public hearing on May 29, 2024, at 10:30 p.m. to consider approving and adopting assessment rate charges; and
c. Direct the Clerk of the Board of Supervisors to publish a hearing notice once a week for two consecutive weeks prior to the date set for the hearing.
SUMMARY/DISCUSSION:
The Monterey County Water Resource Agency (“Agency”) ordinances that govern MCWRA flood zones are Ordinance Nos. 2626, 2974, 3878, and 3881 (“Ordinances”). These Ordinances were adopted for the main purposes of protecting life and property, and reducing the impact caused by flooding.
MCWRA requests a FY 2024-25 COLA increase of 2.4% to the assessments of MCWRA’s flood control benefit assessment zones below, based on the annual change in Consumer Price Index (CPI) February 2023 -February 2024 for the San Francisco, Oakland and San Jose urban area:
• Zones 1 & 1A - Pajaro River Fund 112
• Zone 8 - Soledad Storm Drain Fund 121
• Zone 9 - Reclamation Ditch Fund 122
• Zone 12 - San Lorenzo Creek Fund 124
• Zone 17 - Moro Cojo Slough Fund 127
The attached Summary Chart details the assessment rates of FY 2024-25 with 2.4% COLA increase from FY 2023-24.
It is requested that the Board of Directors recommend that a public hearing be set and held for May 29, 2024 at 10:30 AM for the MCWRA Board of Supervisors to consider approving and adopting assessment rates as set forth in the Notices of Public Hearing relating to Zones 1, 1A, 8, 9, 12 and 17, for Fiscal Year 2024-25, all identified in the Public Notices. A notice will be published once a week for two consecutive weeks prior to the date set for this hearing.
OTHER AGENCY INVOLVEMENT:
None
FINANCING:
The Agency held a workshop on March 18, 2024 to review FY 2024-25 budget requests with assumption of 3% COLA increase. Assessment revenues for FY 2024-25 Recommended Budget for FY 2024-25 has been reduced to reflect 2.4% CPI as the annual COLA for FY 2024-25.
Estimated revenue with the requested 2.4% COLA increase in FY2024-25 to the flood control benefit assessment Zones is as follows:
• Zones 1 & 1A - Pajaro River Fund 112 : $553,078
• Zone 8 - Soledad Storm Drain Fund 121 : $86,819
• Zone 9 - Reclamation Ditch Fund 122 : $1,406,656
• Zone 12 - San Lorenzo Creek Fund 124 : $36,254
• Zone 17 - Moro Cojo Slough Fund 127 : $104,360
The MCWRA Fiscal Year 2024-25 Recommended Budgets is as follows:
Fund 112 - Expenditure $1,045,000; Revenue $1,040,356; and Use of Fund Balances $4,644
Fund 121 - Expenditure $129,292; Revenue $108,542; and Use of Fund Balances $20,750
Fund 122 - Expenditure $1,968,504; Revenue $2,040,285; and Add to Fund Balances $71,781
Fund 124 - Expenditure $254,482; Revenue $246,811; and Use of Fund Balances $7,671
Fund 127 - Expenditure $582,491; Revenue $322,261; and Use of Fund Balances $260,230
Prepared by: Nan Kyung Kim, Finance Manager III (831) 755-4860
Approved by: Ara Azhderian, General Manager (831) 755-4860
Attachments:
1. Summary - Fiscal Year 2024-25 Assessment charges of Flood Zones
2. Notices of Public Hearing for Zone 1
3. Notices of Public Hearing for Zone 1A
4. Notices of Public Hearing for Zone 8
5. Notices of Public Hearing for Zone 9
6. Notices of Public Hearing for Zone 12
7. Notices of Public Hearing for Zone 17
8. Board Order