J U - W ATER - WORTH TM O O) O) O O) O) O) O) O) O) O ) O (0) O o) Fadlitier ORV S E - 0 : 9 C - - . / 1976-" and - Open Spare CAMBRIA COMMUNITY SERVICES DISTRICT, CA - WATERWORTH SCENARIO DEMONSTRATION Revenue Requirements - General Fund JU WATERWORTH 1- Operating Expense. The blue layer represent the General Fund's operating expenses, which are projected to exceed $3.4 million in fiscal year 2025-26. From fiscal year 2026 onward, a 3 percent annual inflation factor is applied to support consistent forecasting and long-term financial planning. R & o Q 5M 4.5M 4M 3.5M 2026 Operating Expenses 3,408,485 3M VA 2.5M 2M 1.5M 1M 500k 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 Operating Expenses U WATERWORTH 2 - Capital Expenditures. The capital improvement plan has been narrowed down to a prioritized set of projects totaling just over $5.1 million. This reflects a more sustainable approach compared to the original $7 million list (entire CSD's CIP). Projects were selected based on urgency, funding availability, and alignment with community and safety priorities. Each project is spread over multiple years. 2025 Capital Improvements 2030 Capital Improvements R R Q . 1,218,000 1,292,741 1.2M 2026 Capital Expansion 1.200,000 1M 2028 Capital Expansion 627,407 800k 4 600k 400k 200k 2028 Capital Improvements 261,420 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Capital Improvements Capital Expansion Capital Expenditures - Explanation The revised capital plan accounts for multiple revenue streams that partially offset the burden on the General Fund. Major potential funding sources were assumed, including: $600,000 from the Land & Water Conservation Fund Grant (reimbursable) $47,500 from the CBID Tourism Grant allocated to the Skate Park Restroom $178,000 General Fund Reserves allocated to the Skate Park $309,257 in private funds raised for the Skate Park project *No projected increases in property taxes or assessments are assumed at this time, per staff direction No new financing or borrowing is included in this iteration, though financing options remain open for future scenarios The model reflects these revenues as offsets to capital costs, with reimbursements timed conservatively due to grant payout delays. Despite these contributions, a significant portion of capital expenses are still projected to be covered through encumbered General Fund reserves. This reinforces the message: without additional external funding or revenue growth, reserves will continue to decline even under the scaled-down capital plan. JU WATERWORTH 3 - Capital Breakdown List of projects being referenced in this scenario. Id 4 Item Descriptor Category Inflation 2024 2025 2026 2027 2028 2029 2030 2031 2032 - SKATE PARK - Facilities and Resources Capital Expansion 0.00% 0 1,200,000 0 0 0 0 2 EAST RANCH RESTROOM - Facilities and Resources Capital Improvements V 0.00% 549,432 0 12 RE -ROOF ENTIRE BUILDING - Facilities and Resources Capital Improvements V 1.50% 104,568 0 17 ROOF, DRY ROT AND RAIN GUTTER REPAIR & PAINT Fire Capital Improvements V 1.50% 156,852 0 18 FIRE ENGINE - TYPE 1 - Fire Capital Improvements V 1.50% 1,218,000 1,292,741 0 20 GATE & FENCING Fire Capital Improvements V 1.50% 40,600 21 REPLACE WATER TENDER Fire Capital Expansion 1.50% 627,407 0 22 Capital Improvements V 0.00% Y & Totals 549,432 1,218,000 1,240,600 888,827 1,292,741 U WATERWORTH 4 - Revenue Requirements of the whole System In fiscal year 2025-2026, the system's total revenue requirement is projected at approximately $4.7 million, driven by multiple financial obligations. This includes $1.2 million in capital expansion (Skate Park), and $3,5M in operating expenses, capital improvements and debt service. These figures reflect both one-time project investments and recurring annual costs necessary to sustain service levels and address long-term infrastructure needs. R & o Q 5M 2026 Capital Expansion 4.5M 1,200,000 4M 2026 Capital Improvements 40,600 3.5M 2026 Current Debt Service 9215 3M 2026 Operating Expenses 3,433,396 2.5M 2M 1.5M 1M 500k 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Operating Expenses Current Debt Service Capital Improvements Capital Expansion Revenues VS. Budgeted Expenditures (Status Quo) JU WATERWORTH Status Quo Dashboard - Revenues VS. Expenses R 2 Q 5M 4.5M 4M 3.5M 3M 2.5M 2M 1.5M 1M 500k 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Operating Expenses Current Debt Service Capital Improvements Capital Expansion Administrative Charges Property Taxes Other Operating Revenue a Developer Contributions - Non-Operating Revenue Grants Borrowed Funds Comparing revenue requirements (background) to Status Quo revenues (bars) reveals funding gaps starting in the next couple of years. *Bars represent revenues, Property Taxes, Administrative Services, and even assumed Grants/ external funding for some projects. The background represents expenditures, such as operating costs, debt service, and capital projects. -Black arrows highlight gaps where projected expenditures exceed revenues, requiring fund balance drawdowns. JU WATERWORTH Status Quo Full Dashboard (Cash Flow/ Cash Implications) R o 5M 4M 3M A 2M 1M 0 2026 Cash Position 2036 Cash Position 2,854,261 -276,684 1M 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Cash Position Operating Expenses Current Debt Service Capital Improvements Capital Expansion Administrative Charges a Property Taxes - Other Operating Revenue a Developer Contributions a Non-Operating Revenue Grants Borrowed Funds The funding gap, where expenses outpace revenues, results in a steady decline of the system's cash position, as shown by the solid black line. If no corrective action is taken, the General Fund's cash position is projected to fall below within 10 to 15 years. This occurs even under conservative assumptions that include scaled-back capital investments and partial grant reimbursements. Staff have already reduced the capital plan to only the most essential projects, yet the long-term outlook continues to show pressure on reserves without new funding or policy adjustments. Staff Recommended Solutions Staff do not recommend canceling the skate park project outright, but want to clarify that no General Fund reserves should be used beyond what has already been encumbered. While the assumed Grants and current Private Group's funds help funding the Skate Park Project, as other crucial Capital Projects are completed, the General Fund reserves are significantly impacted. Instead, the Cambria County Council (CCC) must close the remaining funding gap in coordination with Skate Cambria or through other external sources. If the CCC cannot raise the rest, the project cannot move forward without putting critical public safety projects at risk. This scenario clearly shows the General Fund being further depleted, pushing reserves well below the internal target and threatening the viability of upcoming essential capital projects like fire apparatus replacements and building repairs. The model still shows long-term pressure even if the funding gap is closed. But reserve levels would remain more stable, and the district can pursue priority capital needs like the fire engine, water tender, and facility maintenance over the next 10 years. Staff's core recommendation is that the Board review and decide if the current path is sustainable and if the District can risk general fund reserves expenditures beyond what has been committed. O WATERWORTH O O O 0 O O O) 0 0 -