ELK GROVE, CA (MPG) - The Cosumnes Community Services District (CSD) netted a General Fund surplus of nearly $9 million in the previous fiscal year, the board of directors heard at its Oct. 2 regular meeting.

CSD Budget Manager Jillian Chavez presented the preliminary report on the budget performance in fiscal year 2023-24, saying the results were boosted in large part by strong investment returns. The unaudited results cover the period from July 2023 through June 2024.

Chavez highlighted several bright spots in the report, including roughly 5% growth in property tax revenue, and annexations to its community facilities districts to support the Mello-Roos tax base. High interest rates caused a short-term boost in the district’s investment gains, and income from the Measure E sales tax is beating expectations.

The district faces various challenges as well, Chavez said. Despite having some benefits, the high interest rates have discouraged people from selling their houses, and the reduced housing market churn limited the rise in property tax income. Chavez said Elk Grove Unified School District has begun providing free preschool, which outcompetes the district’s offerings. Administrative requirements, supply chain delays and employee retention also pose problems.

Higher-than-expected revenue and lower-than-expected expenses meant that the General Fund balance after quarter 4 was $8.8 million higher than predicted. The majority of the extra revenue is due to historically high interest rates, which Chavez emphasized is a volatile fund source.

Expenditures were $5 million lower than expected. This was largely because the district had a lower retirement liability payment because of good investment returns, and it saw the results of a cost-saving program in the Recreation Division.

Funds from Measure E, received from the city of Elk Grove, exceeded expectations by $1.9 million, reaching a total of $10.3 million. Spending from the fund was below projections by about $3.3 million, which Chavez said was due to previously approved purchases being delayed by supply chain issues. The district is setting that savings aside to eventually complete the purchases.

Director Gil Albiani asked whether the CSD could reach an agreement to receive reimbursement from EGUSD for the preschool students that CSD serves.

“We already have a symbiotic relationship. Just seems like this is another area that somebody ought to explore,” Albiani said. Chavez said district staff had a meeting planned with the school district to discuss options.

Albiani also praised the CSD’s financial footing and the quality of its services.

Director Peter Sakaris asked whether the district could allocate some funds to the CORE recreation center, which is under construction, something Chavez said is possible. The board did not act on the suggestion at the meeting.

The board approved the report by a 3-0 vote. Board President Jim Luttrell and Sakaris abstained.

Assistant Fire Chief Robert Kasparian spoke about the launch of an emergency medical services unit, EMS 71.

Implemented on Oct. 1, the program converted day-shift EMS personnel to a 24-hour schedule that will allow round-the-clock service. A staff member on this schedule serves two 24-hour shifts followed by four days off.

With the new schedule, the unit will respond more quickly to EMS equipment needs and provide additional support during emergency responses, Kasparian said.

The unit will be able to visit any hospital in the county to assist crews waiting for a patient to be admitted, such as by bringing food and helping with the admission process.

Kasparian said the unit would allow the department to provide EMS education at fire stations, rather than bringing crews to a central training center, and the unit may eventually help with transporting patients to destinations besides hospitals, such as mental-health facilities.

The CSD board voted to cancel its Oct. 16 regular meeting. The next regular meeting is scheduled for Nov. 6.