Is there a budgeting problem at the Cosumnes Community Service District?

Recently, property owners in the Cousmnes Community Services District, specifically those in Benefit Zone 3, received an urgent postcard regarding budget shortages for park maintenance (see image above). The postcard warned property owners that if they do not voluntarily impose higher taxes on themselves, the district would reduce maintenance and services to the zone's 10 parks, totaling 33 acres.

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The district (see map below) was established in 1997, and by law, the assessment can be adjusted annually in accordance with the Consumer Price Index. However, if property owners agree, they can increase the assessment rate.

On the Zone 3 webpage, the CCSD states, "Since 2009, Cosumnes CSD has made several attempts to raise the assessment to sustainable levels, but all efforts - except in three neighborhoods - have been unsuccessful. Despite aggressive cost-saving measures, funds are now critically low. Without voter-approved increases, service reductions will become unavoidable in many areas of Benefit Zone 3."

Zone 3 expenses are paid with the district-wide lighting and landscaping assessments. Benefit Zone 3 has three additional areas receiving additional funding through so-called overlay assessments. 

Those overlay assessments cover Camden Estates & Camden Pointe (MacDonald Park), Perry Ranch (Perry Park), and Vista Creek (Jordan Family Park). Consequently, these three areas receive additional funding and are exempt from service reductions at other park facilities in Zone 3. 

 The CCSD sent approximately 4,500 postcards to property owners in Zone 3 regarding their appeal for higher assessments and promoting information sessions. At a meeting held last night at the Albiani Recreation Center, a handful of residents in attendance were outnumbered by CCSD staff members.   

According to one person in attendance, the fee increase, as presented at the meeting, would rise from approximately $172 to $424 annually. Staff members informed the attendees that the district will mail ballots later this year, seeking voter approval in Zone 3 for higher assessments.

Although the district did not delve into financial specifics during the meeting, these persistent deficiencies highlight district budgetary practices. Given that the assessments were approved in 1997 and pegged to the CPI, as a matter of regular practice, for almost 30 years, it suggests the district has not accurately budgeted expenses, most notably labor costs.       

Over the last few years, the CCSD has also experienced turnover of its General Manager. Former General Manager Joshua Greene left the district in May 2023 and was replaced by Phil Lewis, who had served as the district's parks and recreation administrator. Lewis was separated from the district by a unanimous vote of the five members of the CCSD Board of Directors last October. 

Interestingly, the district, which also operates and manages the Cosumnes Community Fire Department, has received extra funding from the City of Elk Grove's Measure E sales tax increase. After deducting 20 percent of that revenue to a reserve fund, 30 percent of the remaining 80 percent is directed to the CCSD, or approximately $6 million annually.

Of those allocations, based on current tax receipts, two-thirds, or $4 million, is directed to fire services, and one-third, or $2 million, is for parks and recreation. During the 2022 campaign for Measure E, where Elk Grove Mayor Bobbie Singh-Allen single-handedly convinced voters to adopt the regressive consumer sales tax increase, one of her key talking points was that the funds would be directed toward quality-of-life factors, including park maintenance.  

The CCSD will conduct two more meetings regarding the assessment hikes. Those meetings will take place on September 11 at the district headquarters and another on September 25 at the Albiani Center.