The Cosumnes Community Services District (CSD) board on Sept. 16 heard a financial outlook for the district’s General Fund over the next 10 years.
Their district’s staff is projecting that property tax revenue will start steadily growing after 2025 and that recreation fee revenue could recover starting in 2022.
The CSD provides fire and emergency medical services for Elk Grove and Galt, and they operate Elk Grove’s parks and recreation system.
“Like many agencies, we have challenges, but our challenges are manageable with the assumptions we have in place,” CSD Chief Administrative Officer Nitish Sharma told the CSD board.
He also noted that the 10-year outlook report is intended to help the board recognize future challenges and to financially plan ahead to meet them.
Most of the revenues from the CSD’s current $131 million budget come from property taxes collected in Elk Grove and Galt. Sharma told the CSD board that construction is continuing in Elk Grove, noting that 3,265 building permits were pulled in Elk Grove between January and July 2020 – all of which adds up to a $137.5 million valuation in properties.
However, a CSD staff report warned that could be a 2-4% drop in property tax assessments between 2022-25 due to the current recession, a rise in unemployment, increases in construction costs, and a boost in commercial vacancies.
They predict that property tax revenues could begin rebounding after 2025 when revenues are projected to reach roughly $50 million.
Sharma said that if there were no new recreation revenues, then the district would have to use more property tax dollars to pay for recreation programs. He said that the district could consider recreation programming they never considered before.
Sharma told the CSD board that the district’s Landscaping and Lighting fund, which supports park maintenance, would have its financial outlook presented in a future report.