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ITEM: |
DISCUSSION
ITEM |
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20. |
REVIEW PROPOSED MPWMD BUDGET
FOR FISCAL YEAR 2014-2015 |
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Meeting
Date: |
May 19, 2014 |
Budgeted: |
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) 2014-2015 is attached as Exhibit 20-C. While preparing the proposed budget, District staff was mindful of the continued economic conditions as well as the current status of the District’s three main funding sources (Mitigation Program revenue, Property Tax 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 ratepayer of California American Water in FY 2014-2015. This budget also takes into account District’s new Rabobank ASR loan debt obligation. Proposed expenditures and revenues each total $10,888,600, which is a decrease of 32% for expenditures and revenues from the amount budgeted in FY 2013-2014. A more detailed justification of the proposed budget is provided in the transmittal which is part of the budget document. This proposed budget does include the use of reserves. The FY 2014-2015 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 2014-2015 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 several adjustments by Division Managers and the General Manager, culminated budgeted expenditures and revenues for FY 2014-2015 total $10,888,600, of which $1,945,450 or 18% 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 2014-2014 Budget was balanced with the use of reserves to maintain 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 Resolution No. 2014-08
20-B Draft Copy Certification
20-C Draft Fiscal Year 2014-2015 Proposed Budget
U:\staff\Boardpacket\2014\20140519\DiscussionItems\20\item20.docx