ITEM: |
PUBLIC HEARING |
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23. |
CONSIDER ADOPTION OF PROPOSED FISCAL YEAR 2011-2012 MPWMD BUDGET AND
RESOLUTION 2011-10 |
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Meeting
Date: |
June 20, 2011 |
Budgeted: |
N/A |
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Program/ |
N/A |
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General
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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 26, 2011 budget workshop, staff presented the proposed budget for Fiscal Year 2011-2012. After receiving staff’s presentation and responses to questions regarding the proposed budget, the Board requested no changes. Subsequent to that workshop, District staff has reviewed the percentage of expenditures allocated to the Mitigation, Capital Projects and Conservation Funds and modified them slightly. This resulted in a small shift of expenditures among the three funds, but the total expenditure budget did not change. The latest version of the proposed 2011-2012 budget is included as Exhibit 23-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. Resolution No. 2011-10, A Resolution of the Board of Directors of the Monterey Peninsula Water Management District Adopting the Budget for Fiscal Year 2011-12 is included as the first page of the budget document.
RECOMMENDATION: District Staff recommends that the Board adopt Resolution No. 2011-10, A Resolution of the Board of Directors of the Monterey Peninsula Water Management District Adopting the Budget for Fiscal Year 2011-2012.
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. The proposed Fiscal Year 2011-12 budget was presented by staff to the Board at its May 26, 2011 budget workshop. No changes were requested by the Board at that time.
23-A Fiscal Year 2011-12 Proposed Budget
U:\staff\word\boardpacket\2011\20110620\PubHrng\23\item23.docx