Templeton board previews FY2026–27 budget; staff flags $2M well, $450K lift‑station work and COLA

The Templeton Community Services District Board of Directors on May 28 reviewed a near-final draft of the district's fiscal year 2026–27 budget, directed staff to reflect a cost-of-living adjustment in the wage schedule and heard staff warn that several large capital projects will raise future operating and asset-replacement costs.

The board reported out of closed session that it had directed staff to incorporate a cost-of-living adjustment equal to the consumer price index for the past 12 months (3.68%) for all full-time classifications and additional classification adjustments tied to the district's compensation study; staff said those items will be formally considered as part of the budget adoption following the public hearing on June 16, 2026.

General Manager (name not stated) briefed the board on fund-by-fund highlights. On the water side, staff said design work for the Platts River well is almost complete and that about $40,000 in design costs are carried forward; the district has programmed roughly $2 million for construction if bids and final design reach that estimate. Staff also noted water‑system capital including a near‑$400,000 turnout relocation design and $164,000 programmed for a district-led recharge/recovery project.

On wastewater, staff described a $40,000 carryforward for the wastewater master plan and a placeholder increased to $130,000 for consulting and reporting work needed to comply with new regional board permit requirements. The board heard that initiating design for Westside force main upgrades is budgeted at $125,000 and that a $450,000 rehabilitation program for the Westside lift station is programmed to address structural and pump‑attachment failures; staff said a significant portion of that cost reflects bypass pumping and temporary plumbing during work.

Staff also walked the board through other fund highlights: a new approach to allocating PERS unfunded actuarial liability (UAL) that moves UAL into the admin fund (raising admin allocations but spreading costs across funds), a roughly $83,000 increase in admin UAL charges, a projected 10% rise in health insurance costs in January 2027 (final CalPERS rates pending), and higher property/liability insurance costs through SDRMA.

The general manager said the water fund shows about $482,000 in ongoing net resources before one-time projects, falling to about $70,000 after those projects; the wastewater fund is roughly $26,000 to the good excluding one-time costs and about $700,000 positive when including one-time transfers for the current fiscal year. Staff repeatedly cautioned that projects such as the Platts River well and the recharge/recovery project will increase ongoing asset-replacement and operating costs and that a rate study will likely be needed once the master plan provides more detailed project lists and funding breakdowns.

On smaller funds, staff warned the drainage fund is running a modest deficit (about $4,800) and the streetlights and parks funds have limited near-term cushions but potential long-term funding pressure depending on capital decisions. Parks one-time items noted included work to resolve a long-standing Everest Park lot-line/tree-maintenance issue (survey and legal processing), ADA restroom work ($30,000 for Everest Park), and planning funds for an Everest Park improvement bid process.

Before adjourning, the board approved the consent agenda—which included Resolution 08-2026 (CFD annexation No. 18) and authorization for a staff member to attend a general manager summit—by roll call. The general manager and staff said the draft budget will be updated with any board-directed changes and returned for the public hearing and formal adoption on June 16.

The board concluded the special meeting after brief closing remarks thanking staff for the presentation.