Agenda Item No: K.3
AGENDA REPORT
DATE: August 4, 2026
TO: Mayor and Council
FROM: David Gassaway, City Manager
SUBJECT: Resolution 2026-170 PW Fiscal Year 2026-2027 Budget Adjustment for the Smith Ranch Assessment District Phase Two Improvement Fund
Authorizing an Update to the Fiscal Year 2026-2027 Smith Ranch Assessment District Phase Two Improvement Fund Budget for Rancho Solano Raw Water Pump Deferred Maintenance
Funding Source: $369,439; Smith Ranch Phase Two Improvement Fund
Contact: Ryan Panganiban, (707) 428-7017
RECOMMENDED ACTION
Adopt resolution.
STATEMENT OF ISSUE
The Public Works Department is requesting an update to the fiscal year (FY) 202 6-2027 Smith Ranch Assessment District (District) Phase Two Improvement Fund (Improvement Fund) budget increasing appropriations by $369,439 for Rancho Solano Raw Water Pump deferred maintenance.
DISCUSSION
The District was formed in 1986 to fund the acquisition, construction, and ongoing maintenance of public infrastructure and improvements in the Rancho Solano subdivision including but not limited to access ways for public utilities, water systems, storm drainage facilities, sanitary sewer systems, and streetlight facilities.
In 1988, the City Council adopted Resolution No. 88-200 and Resolution No. 88-201, authorizing the issuance and award of bonds in the amount of $6,773,000 for the improvements described in the District’s Resolution of Intention No. 86 -291. As required by Resolution No. 88 -200, all bond proceeds were deposited into the Improvement Fund, which has a remaining balance of $369,439.
The Department has identified deferred maintenance of the Rancho Solano Raw Water Pump Station as an eligible use of Improvement Fund balance. The scope of deferred maintenance includes rebuilding three existing pumps with slow start drives, replacing and upsizing one pump, replacing electrical components , and r ebuilding existing electrical switch gear. The cost of the Deferred Maintenance is estimated to be up to the total remaining balance. All unused funds will remain in the Improvement Fund and will be used to cover the cost of other eligible described in Resolution No. 86-291.
The adoption of this resolution will authorize an update to the FY 2026-2027 Improvement Fund budget increasing appropriations by $ 369,439 which will be financed using the Improvement Fund balance, to cover the cost of the deferred maintenance.
FINANCIAL IMPACT
The total authorization is for a one -time budget adjustment of $369,439 from fund balance to increase appropriations in the FY 2026-2027 Smith Ranch Phase Two Improvement Fund (Fund 362) budget.
PUBLIC CONTACT/ADVISORY BODY RECOMMENDATION
N/A
ALTERNATIVE ACTION
The council may choose not to approve the budget adjustment or direct staff to return with more information.
COORDINATED WITH
Finance Department
STAFF CONTACT
Chris Lewis, Sr. Management Analyst
(707) 428-7089
[email protected]
ATTACHMENTS
Attachment 2: Proposed Resolution