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ITEM: |
DISCUSSION
ITEM |
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20. |
REVIEW PROPOSED MPWMD FISCAL
YEAR 2013-2014 MPWMD BUDGET |
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Meeting
Date: |
May
20, 2013
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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:
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 (FY) 2013-2014 listed as Exhibit 20-A will be delivered as a separate packet. While preparing the proposed budget, District staff was mindful of the continued economic conditions as well as the current status of the District’s two main funding sources (Mitigation Program revenue and Water Supply Charge). This budget assumes continuation of the adopted annual Water Supply Charge and continued collection of the Mitigation Program revenue from California American Water in FY 2013-2014. This budget also takes into account District’s new Rabobank ASR loan debt obligation. Proposed expenditures and revenues each total $15,319,714, which is an increase of 8% for expenditures and 11% increase for revenues from the amount budgeted in FY 2012-2013. A more detailed justification of the proposed budget is provided in the transmittal which is part of the budget document. This proposed balanced budget does not include the use of any reserves. The FY 2013-2014 Budget also assumes payment of $230,000 towards debt service (interest and principal) for the Rabobank ASR Loan. The budget document has been presented in same format from prior year.
RECOMMENDATION: Staff recommends that the Board discuss the proposed FY 2013-2014 budget and give general direction to staff to prepare the final budget document for adoption at the June Board Meeting. No formal action is required at this meeting.
BACKGROUND: After compilation of the original requests from all Divisions, a detailed review, and numerous adjustments by Division Managers and the General Manager, culminated budgeted expenditures and revenues for FY 2013-2014 total $15,319,714, of which $5,268,595 or 34% includes reimbursement funds from grants, California American Water and other agencies.
In the past, District budgets had been balanced by use 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. In being mindful of the 2005 Board adopted strategy, this proposed FY 2012-13 Budget was balanced without the use of reserves and maintains most District programs and services. This budget assumes the continued collection of the annual Water Supply Charge and California American Water Mitigation Program revenues.
20-A Draft Fiscal Year 2013-2014 Proposed Budget (distributed to the Board on May 17, 2013)
20-B Draft Resolution No. 2013-07
20-C Draft
Copy Certification
U:\staff\Boardpacket\2013\20130520\DiscussionItem\20\item20.docx