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ITEM: WORKSHOP/DISCUSSION |
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1. |
REVIEW PROPOSED MPWMD BUDGET
FOR FISCAL YEAR 2011-12 |
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Meeting
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May 26, 2011 |
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 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 2011-12 is attached as Exhibit 1-A. While preparing the proposed budget, District staff was mindful of the continued uncertain economic conditions as well as the current status of the District’s User Fee. Proposed expenditures and revenues each total $9,674,200, a decrease of 6.4%. The revenue budget includes the use of General Operating, Litigation/Insurance and Flood/Drought Reserves totaling $1,020,244 due to the User Fee situation. It also includes the proposed use of $727,100 from the District’s line of credit to fund budgeted capital costs for Water Project 1 in the amount of $577,100, and preliminary costs of Water Project 3 in the amount of $150,000. If the Board of Directors does not wish to use the line of credit for Water Project 1, that work would be deferred to a future fiscal year. 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 20, 2011.
RECOMMENDATION: Staff recommends that the Board discuss the proposed Fiscal Year 2011-12 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. Despite the strategy to adopt balanced budgets annually, the FY 2011-12 budget does include use of General Operating, Litigation/Insurance and Flood/Drought Reserves in order to maintain most District programs and services until the current user fee issue is resolved.
1-A Fiscal Year 2011-12 Proposed Budget
U:\staff\word\boardpacket\2011\20110526\01\item1.docx