ITEM: |
PUBLIC HEARINGS |
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29. |
CONSIDER ADOPTION OF PROPOSED FISCAL YEAR 2010-2011 MPWMD BUDGET AND
RESOLUTION 2010-08 |
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Meeting
Date: |
June 21, 2010 |
Budgeted: |
N/A |
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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: At the May 20, 2010 budget workshop, staff presented the proposed budget for Fiscal Year 2010-11. After receiving staff’s presentation and responses to questions regarding the proposed FY 2010-11 budget, the Board requested no changes. Subsequent to that workshop, District staff and legal counsel re-evaluated the amount budgeted for legal services for FY 2010-11. With the anticipation that legal activities related to the Cease and Desist Order, Regional Water Project and District User Fee will wind down during the first half of FY 2010-11, staff has reduced the amount budgeted for legal services $450,000 to $400,000, and the FY 2010-11 budget sets aside the $50,000 difference in the Litigation/Insurance Reserve to fund potential future unanticipated legal activities. Furthermore, staff and legal counsel believe that legal costs in FY 2010-11 could actually be as low as $350,000 and staff recommends that any amount not spent from the budgeted amount of $400,000 also be placed in the Litigation/Insurance Reserve for future use. The latest version of the proposed 2010-11 budget is attached as Exhibit 29-A. Proposed expenditures and revenues total $10,590,100. The revenue budget does include the use of general operating reserves in the amount of $614,300. However, 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 $481,300. Resolution No. 2010-__, A Resolution of the Board of Directors of the Monterey Peninsula Water Management District Adopting the Budget for Fiscal Year 2010-11 is included as the first page of the budget document.
RECOMMENDATION: District Staff recommends that the Board adopt Resolution No. 2010-08, A Resolution of the Board of Directors of the Monterey Peninsula Water Management District Adopting the Budget for Fiscal Year 2010-11.
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 balance budget, it should be noted that the FY 2010-11 budget does include use of the general operating reserve due to an exception to the strategy that was previously approved by the Board. 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. It should be noted that, if the District was not funding Phase 1 of the ASR project on a pay-as-you-go basis, the proposed budget would actually replenish the general operating reserve by $481,300. The proposed Fiscal Year 2010-11 budget was presented by staff to the Board at its May 20, 2010 budget workshop. No changes were requested by the Board at that time.
29-A Fiscal Year 2010-11 Proposed Budget
U:\staff\word\boardpacket\2010\20100621\PubHrgs\29\item29.doc