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ITEM: WORKSHOP/DISCUSSION |
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1. |
REVIEW PROPOSED MPWMD BUDGET
FOR FISCAL YEAR 2008-09 |
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Meeting
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May 22, 2008 |
Budgeted: |
N/A |
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Program/ |
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General
Manager |
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Prepared
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Cost Estimate: |
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General Counsel Approval: N/A |
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Committee Recommendation: N/A |
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CEQA Compliance: N/A |
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SUMMARY: A copy of the proposed budget for Fiscal Year 2008-09 is attached as Exhibit 1-A. Proposed expenditures and revenues total $8,209,500. The revenue budget does include the use of general operating reserves in the amount of $1,139,500. However, as noted in the background section, if the District was not funding the ASR project on a pay-as-you-go basis, the proposed budget would replenish the general operating reserve by $340,000. Additional information related to program categories and performance measures will be added to the budget prior to bringing it back to the Board for adoption on June 16, 2008.
RECOMMENDATION: Staff recommends that the Board discuss the proposed Fiscal Year 2008-09 budget and give general direction to staff. No formal action should be taken.
BACKGROUND: For several years prior to Fiscal Year 2005-06, District budgets had been balanced by using large amounts of previously accumulated reserves. At the District’s strategic planning session on September 29, 2004, staff recommended that a balanced budget be prepared for Fiscal Year 2005-06 using a combination of revenue and expenditure adjustments to eliminate the use of reserve funds. At the January 19, 2005 budget workshop, the Board adopted an eight part strategy for balancing the 2005-06 budget. The proposed Fiscal Year 2008-09 budget was prepared consistent with that strategy, resulting in a balanced budget for on-going expenditures for the fourth consecutive year. Despite the strategy to adopt a balance budget, it should be noted that the FY 2008-09 budget does include use of reserves, and a general operating reserve drawdown, due to two exceptions to the strategy that were recently approved by the Board. First, at its November 2007 meeting, the Board authorized the use of general operating reserves to fund completion of the Phase 1 Aquifer Storage and Recovery (ASR) Project on a pay-as-you-go basis. Also, at its April 2008 meeting, the Board authorized use of the flood/drought reserve to fund approximately $170,000 of preliminary costs relating to the District’s 95-10 Desalination Project. It should be noted that, if the District was not funding the ASR project on a pay-as-you-go basis, the proposed budget would actually replenish the general operating reserve by $340,000.
1-A Fiscal Year 2008-09 Proposed Budget
U:\staff\word\boardpacket\2008\2008boardpackets\20080522\Discussion\1\item1.doc