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ITEM: WORKSHOP/DISCUSSION |
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1. |
REVIEW PROPOSED MPWMD BUDGET
FOR FISCAL YEAR 2010-11 |
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Meeting
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May 20, 2010 |
Budgeted: |
N/A |
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Program/ |
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General
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Prepared
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Cost Estimate: |
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General Counsel Review: N/A |
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Committee Recommendation: N/A |
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CEQA Compliance: N/A |
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SUMMARY: The proposed budget for Fiscal Year 2010-11 is attached as Exhibit 1-A. While preparing the proposed budget, District staff was mindful of the current uncertain economic conditions. Proposed expenditures and revenues each total $10,590,100. The revenue budget includes the use of general operating reserves in the amount of $614,300. However, as noted in the background section, if the District was not funding the Phase 1 Aquifer Storage and Recovery (ASR) project on a pay-as-you-go basis, the proposed budget would replenish the general operating reserve by $481,300. Additional information related to program categories and performance measures will be added to the budget document prior to bringing it back to the Board for adoption on June 21, 2010.
RECOMMENDATION: Staff recommends that the Board discuss the proposed Fiscal Year 2010-11 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 significant 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 2010-11 budget was prepared consistent with that strategy, resulting in a balanced budget for on-going expenditures for the sixth consecutive year. Despite the strategy to adopt a balanced budget, it should be noted that the FY 2010-11 budget includes use of reserves in the amount of $614,300 for completion of the Phase 1 ASR Project. The Board previously approved funding the ASR Project on a pay-as-you-go basis at its November 2007 meeting. 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 $481,300.
1-A Fiscal Year 2010-11 Proposed Budget
U:\rick\word\staffnotes\2010\052010\budget1011.doc