Report 2018-133 Recommendation 13 Responses

Report 2018-133: Fallen Leaf Lake Community Services District: Its Billing Practices and Small Electorate Jeopardize Its Ability to Provide Services (Release Date: July 2019)

Recommendation #13 To: Fallen Leaf Lake Community Services District

To improve its financial viability and safeguard its ability to continue providing services to the Fallen Leaf Lake community, the district should, by December 31, 2019, develop a five-year forecast of estimated revenues and expenditures and a plan to guide its decisions and actions in the event of fluctuations.

1-Year Agency Response

The District's Board has retained and authorized a third-party financial-consultant to conduct a research study starting in July 2020 to review District's operations and reserves so that the District may forecast economics for the next five fiscal years. That company, called Applied Reserve Analysis, through its principal, Eric Phillipps, RS, PRA, is expected to complete its research, analysis, and findings in Q3 of 2020. In addition, the District met on July 4, 2020 and discussed the potential for COVID-19 pandemic-related loss of revenues, and potential climate-related increases in spending, as well as new sources of revenues.

California State Auditor's Assessment of 1-Year Status: Pending

6-Month Agency Response

DISTRICT'S RESPONSE TO NUMBER 13: The District's Board has retained and authorized a third-party company to conduct a research study

starting in May 2020 to review District's operations and reserves so that the District may forecast economics for the next five fiscal years. In addition, the District met on December 7, 2019 and discussed the potential for climate-related increases in spending, as well as potential new sources of revenues.

California State Auditor's Assessment of 6-Month Status: Pending

All Recommendations in 2018-133

Agency responses received are posted verbatim.