One word. Inflation. Across the prior 20 years, costs for maintaining our 4 community properties have steadily increased. There are simply not enough funds to cover the needs of the aging properties.
A standard recommendation for governmental agencies is to maintain a cash reserve of six months’ expenditures. The board has projected with an average rate of 5% inflation that reserves will be depleted if no adjustment is made.
With these projections, the CRD will become insolvent in 5 years. The State would then step in and dissolve the CRD. This would then lead to the parks likely being handed over to the County to manage and operate.
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