RANCHO MURIETA, CA (MPG) - The Rancho Murieta Community Services District Board tackled a wide range of issues during its nearly five-hour March 18 meeting.

Discussion included the monthly finance report, an update on overdue audits and a call to schedule a strategic planning session this summer. Separate stories in this issue cover the proposed 2026-27 budget, which would significantly increase rates, and a contentious debate over water.

During her monthly finance report, Director of Finance and Administration Cecilia Min acknowledged community concerns about delayed audits. When she arrived last May, she encountered significant accounting and system problems that she had previously described as a “Frankenstein.”

Min and her staff, including contracted accountants, completed the 2021-22 audit in about 3½ months. They then spent roughly six months preparing and cleaning records for the 2022-23 and 2023-24 fiscal years. Work on 2024-25 was put on hold until the earlier years are completed.

Beginning in late January, she paused most of her work on the audits to focus on preparing the 2026-27 budget, although staff continued cleanup efforts. Her goal is to complete all outstanding audits, including fiscal year 2025-26, by the end of this calendar year.

Min cautioned that the timeline is a plan, not a guarantee, noting that each new area she reviews continues to reveal additional legacy issues.

One example emerged during her review of 15 months of invoices as part of developing the new budget using zero-based budgeting. She found many invoices had been entered in incorrect accounting periods, with inconsistent or missing information.

Min also reported ongoing problems loading data into the district’s accounting system. 

“My Great Plains is stalling everywhere, and I don’t think I can go through another year without a cloud-based (updated) version,” she said. “This is very important because our server is actually not very stable.”

Min reported that through Jan. 31, operating revenues are about 57% of the annual budget, operating expenses are about 59% and administrative expenses are about 71%. Also, after seven months, the district had a $448,000 deficit without property taxes.

Min said costs are being driven up by sharp increases in chemical prices and several unbudgeted emergency repairs, while some other lines appear historically under budgeted because they relied on unreliable past numbers.

As of January, the district had about $12 million in cash and investments, down from $15 million a year earlier. Min plans to transfer funds from investments into the operating account to restore roughly six months of cash on hand – about $5 million – in operating reserves.

That would leave about $7.8 million in restricted investment funds, which she described as relatively low compared to the total net assets of approximately $24 million.

In another part of the meeting, Director Linda Butler emphasized that the district cannot continue operating without a clear, shared roadmap: a point she has raised for months. The last strategic planning session was held in 2021.

She recommended that the board hold a formal session around mid-summer to define the district’s mission, vision, goals and priorities, review Brown Act requirements and board roles, and have each department manager outline where they want their area to be and what is needed to get there.

Butler also addressed the need to train a new general manager, stressing that the district has never had a formal onboarding program: a gap she said must be addressed before a new hire arrives.

She argued that success depends on a structured training plan, at minimum outlining essential topics, documents, systems and expectations so the general manager can understand how the district operates, along with its history, constraints and priorities. She cautioned that the board should not expect a new general manager to walk in and “fix everything” without support.

The board directed Interim General Manager Amelia Wilder to dispose of the dilapidated safety center rather than attempt to sell it as she disposes of surplus property.

Directors also approved the emergency purchase of membranes for the water treatment plant and authorized a contract with a recruiting firm to search for candidates for the open general manager and operations manager positions.

A request by Director Bill Gere to increase director stipends was tabled due to his absence from the meeting.

The board authorized the purchase of dam and levee insurance coverage for $47,500 in the coming year. The coverage had previously been dropped under former General Manager Mimi Morris.

District Counsel Patrick Enright said he will brief the board at a future meeting on updates to the Brown Act, California’s open meetings law.

Butler reported on a meeting of the Security Working Group, which includes two members from the Rancho Murieta Association and a former CSD board member. The group is evaluating whether existing surveillance systems are compatible with upgrades or will need to be replaced entirely.

The board also considered a staff request to create a new administration manager position to address chronic workload issues. Ultimately, directors approved the position and its job description and ordered a salary survey, but stopped short of funding or filling it, leaving that decision for a future budget cycle.

The board also approved numerous items on the consent calendar, including a task order for the district engineer to study whether the Rio Oso tank should be repaired or replaced, and the purchase of two new fire hydrants.

Directors also accepted a $3.4 million detention basin from the Riverview subdivision, adopted an election schedule for the Nov. 3 election, and approved a cybersecurity policy along with a revised salary survey for non-represented employees.

The board’s next meeting will be at 5 p.m. Wednesday, April 15.