|
ITEM: |
ACTION
ITEM |
||||
|
|
|||||
|
30. |
REVIEW PROPOSED FISCAL YEAR
2023 - 2024 MPWMD BUDGET AND RESOLUTION NO. 2023-07 |
||||
|
|
|||||
|
Meeting
Date: |
June 20, 2023 |
Budgeted: |
N/A |
||
|
|
|||||
|
From: |
David J.
Stoldt, |
Program/ |
N/A |
||
|
|
General
Manager |
Line Item No.: |
|||
|
|
|||||
|
Prepared
By: |
Suresh
Prasad |
Cost Estimate: |
N/A |
||
|
|
|||||
General Counsel Review: N/A |
|||||
Committee Recommendation: N/A |
|||||
|
CEQA Compliance: This action does not constitute a project
as defined by the California Environmental Quality Act Guidelines Section
15378. |
|||||
SUMMARY: At the May 25, 2023 Board Budget Workshop meeting, staff presented the proposed budget for Fiscal Year 2023-2024. After receiving staff’s presentation and responses to questions regarding the proposed budget, the Board comments and changes have been incorporated in this version of the budget. The latest version of the proposed budget for Fiscal Year (FY) 2023-2024 is attached as Exhibit 30-B. While preparing the proposed budget, District staff was mindful of the continued economic conditions due to COVID-19 and as well as the current status of the District’s four main funding sources (User Fee Revenue, Property Tax Revenue, Water Supply Charge, and Pure Water Monterey (PWM) water sales). This budget assumes continuation of the adopted annual Water Supply Charge and the User Fee revenue from ratepayers of California American Water in FY 2023-2024. Although, Water Supply Charge will be collected, it will be set aside in reserve fund due to pending litigation. This budget does not use proceeds from Water Supply Charge revenue. Proposed expenditures and revenues each total $48,438,250, which is higher for expenditures and revenues from the amount budgeted in FY 2022-2023. A more detailed justification of the proposed budget is provided in the transmittal letter which is part of the budget document. This proposed budget does include the use of reserves to balance the proposed budget. The budget document has been presented in same format as in prior years.
RECOMMENDATION: Staff recommends that the Board adopt Resolution No. 2023-07, A Resolution of the Board of Directors of the Monterey Peninsula Water Management District Adopting the Budget for Fiscal Year 2023-2024.
BACKGROUND: After
compilation of the original requests from all Divisions, a detailed review and
several adjustments by Division Managers and the General Manager, culminated
this budget with proposed expenditures and revenues for FY 2023-2024 totaling $48,438,250,
of which $20,232,200 or 42% includes reimbursement funds from grants,
California American Water and other agencies.
It also includes $13,275,000 for PWM water sales. Additionally, general reserves in the amount
of $878,156 (includes fund balance and carry forward programs) was used to
balance this budget.
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 2005-2006 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 2005-2006 Budget. In being mindful of the 2005 Board adopted strategy, every effort was made to balance this proposed budget without the use of reserves. This proposed FY 2023-2024 Budget was balanced with the use of reserves to maintain all of District’s programs and services. The use of reserve was carry forward of projects from prior year. This budget assumes the continued collection of the annual Water Supply Charge, User Fee revenues from ratepayers of the California American Water, and Property Tax revenues from the County.
30-A Draft Resolution No. 2023-07
30-B Draft Fiscal Year 2023-2024 Proposed Budget
U:\staff\Boardpacket\2023\20230620\Action
Items\30\Item-30.docx