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ITEM: |
ACTION
ITEM |
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17. |
REVIEW PROPOSED MPWMD BUDGET
FOR FISCAL YEAR 2012-13 |
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Meeting
Date: |
May
21, 2012
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Budgeted:
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N/A
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From: |
David J.
Stoldt, |
Program/ |
N/A |
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General
Manager |
Line Item No.: |
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Prepared
By: |
Suresh
Prasad |
Cost Estimate: |
N/A |
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General Counsel Review:
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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 (FY) 2012-13 is attached as Exhibit 17-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. This budget assumes adoption and successful implementation of the annual Water Use Fee in FY 2012-13. Proposed expenditures and revenues each total $14,162,200, an increase of 69% from the amount budgeted in FY 2011-12. All of the increase is attributed to project expenditures portion of the budget and are primarily reimbursable from other agencies. This balanced budget does not include the use of reserves or existing line of credit. The FY 2012-13 Budget also assumes payment of $120,600 towards debt service (interest and principal) for the existing line of credit. The budget document has been revised from prior year’s format and includes a new section of divisional budget. There are other subtle changes such as segregation of revenues between District revenues and reimbursement revenues, breakdown of project expenditures into five categories. Staff will go over all the changes at the meeting.
RECOMMENDATION: Staff recommends that the Board discuss the proposed FY 2012-13 budget and give general direction to staff to prepare the final budget document for adoption at the June 12, Board Meeting. No formal action should be taken at tonight’s meeting.
BACKGROUND: After compilation of the original requests from all Divisions, a detailed review, and numerous adjustments by Division Managers and the General Manager, budgeted expenditures and projected revenues for FY 2012-13 total $14,162,200. More than half the budget includes reimbursement funds from grants, California American Water and other agencies.
For a decade, 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 FY 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 FY 2005-06 Budget. However, it should be noted that in only one year of the past ten have reserves NOT been used for District expenditures in a fiscal year, and last year significant use of reserves and credit line were used to balance the budget. This proposed FY 2012-13 Budget does not include use of reserves or existing line of credit to balance the budget and maintains most District programs and services. This budget assumes the adoption and successful implementation of the annual Water Use Fee.
17-A Draft Fiscal Year 2012-13 Proposed Budget
17-B Draft Resolution No. 2012-XX
17-C Draft Copy Certification
U:\staff\Boardpacket\2012\20120521\ActionItem\17\item17.docx