ELK GROVE, CA (MPG) - At its Jan. 17 regular meeting, the Cosumnes Community Services District (CSD) board of directors received the annual comprehensive financial report for 2023.

Finance Director Nou Vang said CSD’s auditor had issued an unmodified opinion on the report, meaning that the data included in the document is fairly presented and reliable. She said the auditor recommended performing more reviews of finance data to reduce the number of adjustments during the audit. A staff report said the auditor identified 20 adjustments that the district then corrected.

In fiscal year 2022-23, CSD revenue reached nearly $138.4 million, an increase of $22.5 million or 20% over the previous year. Expenses also rose, to $119 million, which is $19.8 million or 20% higher than the previous year.

The largest portion of the district’s income, close to 44%, comes from property taxes, with charges for services making up the next largest chunk, 37%. Public protection accounted for 58% of CSD’s spending, and 32% went to parks and recreation; general government made up the remaining 10%.

Vang considered the property taxes and charges for services for highlights, as both increased notably over the previous fiscal year, property taxes by about  8% and charges by about 20%. She also pointed to jumps in development fees and capital assets, and growth in the district’s reserve fund.

Looking at challenges facing CSD, Vang said that the district’s liability for pension and other retirement benefits had grown by $150.9 million. She said this was caused by a number of factors, such as inflation, the fact that people are living longer, and the fact that CalPERS, the public-employee pension plan, reported a loss on its investments.

Vang said pension liability is a “moving target number” that can go up or down based on how well CalPERS’ investments pan out.

“Overall, I’m really pleased with how we ended out the fiscal year. This really highlights our commitment being trusted stewards of public funds,” Vang said.

Director Pete Sakaris asked Vang whether CSD is prepared to handle the ups and downs in its pension liabilities. Acknowledging that it is “tough” to manage the changes, Vang said the district is on a 20-year plan with CalPERS to pay down the obligations, and that may sometimes mean increasing its contribution. She said district staff are reviewing the current arrangement. Sakaris asked for a presentation on the pension agreement.

The directors commended Vang and staff for their work.

In addition, CSD recognized two former committee members and two retired Cosumnes Fire Department chiefs. Lisa Robinson and Gloria Lambert-Hector served on the Parks Advisory Committee for more than three years. Former fire chiefs Tracey Hansen and Michael Laughlin were honored after having been inducted into the California Fire Chiefs Association Hall of Fame.