Board Approves $9.80 Assessment

The Board approved an assessment of $9.80 per acre for fiscal year 2020 at their June 20 meeting. Based on assessable acreage of 71,332.5, this generates a projected revenue of $699,059. This amount covers the 2020 budget of $666,246, which is the amount approved by South Fork Kings GSA landowners in the assessment election passed in 2018. Items included in the 2020 budget are administrative costs of $73,130, professional services in the amount of $377,650, and a $43,586 contingency fund. The $9.80 assessment also provides approximately $33,000 in additional revenue.

For Board consideration, Assistant Treasurer Brian Trevarrow presented Board members with two assessment options, $9.34 and $9.80. Trevarrow stated the proposed budget amount of $666,246 does not include money for legal expenses nor allow much cushion for cost increases. Another concern is the potential unplanned costs that may arise from implementing a new regulation as comprehensive and complex as SGMA (Sustainable Groundwater Management Act). Trevarrow also noted to date only $627,000 of the $698,000 revenue assessed last year is collected potentially leaving a $71,000 gap in uncollected revenue for fiscal year 2019.

Considering all of these factors, the Board decided it was prudent to approve the $9.80 rate for fiscal year 2020 to ensure the basic costs of implementing SGMA are funded and to lessen the impact of any possible shortfall in revenue due to unpaid assessments.

Translate ยป