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ITEM: |
ACTION ITEM |
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28. |
ADOPT PROPOSED FISCAL YEAR
2024-2025 MPWMD BUDGET AND RESOLUTION NO. 2024-07 |
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Meeting
Date: |
June 17, 2024 |
Budgeted: |
N/A |
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From: |
David J.
Stoldt, |
Program/ |
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General
Manager |
Line Item No.: |
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Prepared
By: |
Nishil
Bali |
Cost Estimate: |
N/A |
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General Counsel Review: N/A |
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Committee/Board Recommendation: The Board discussed this item on May 30, 2024. |
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CEQA Compliance: This action does not constitute a project
as defined by the California Environmental Quality Act Guidelines Section
15378. |
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SUMMARY: At the May 30,
2024 Board Budget Workshop meeting, staff presented the proposed budget for
Fiscal Year 2024-2025. After receiving the staff’s presentation and
responses to questions regarding the proposed budget, the Board's comments and
changes have been incorporated in this version of the budget. The latest
version of the proposed budget for Fiscal Year (FY) 2024-2025 is attached as Exhibit
28-B.
While
preparing the proposed budget, District staff was mindful of 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 the continuation of the
adopted annual Water Supply Charge and the User Fee revenue from ratepayers of
California American Water in FY 2024-2025. Proposed budgeted expenditures and
revenues each total $42,859,718. This is higher than the FY 2023-2024 revised mid-year budget
by 3.34%. 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 not include the use
of reserves to balance the budget. Instead, the Water Supply Charge (WSC) has
been utilized for Water Supply expenditures. Depending on
the outcome of the ongoing litigation, the District may use its general
reserves to reimburse any WSC collections for FY 2024-25.
RECOMMENDATION: Staff recommends that the Board adopt Resolution No. 2024-07, A Resolution of the Board of Directors of the Monterey Peninsula Water Management District Adopting the Budget for Fiscal Year 2024-2025.
BACKGROUND: After compilation of the original requests from all
Divisions, a detailed review, and several adjustments by Division Managers and
the General Manager, this budget is being proposed with expenditures and
revenues for FY 2024-2025, totaling $42,859,718, of which $14,082,218 or 32.8% includes reimbursement
funds from grants, California American Water and other agencies. It also includes $14,619,500
for PWM water sales. Additionally,
general fund carryforward in the amount of $500,000 (includes carryforward projects/programs)
was used to supplement this budget.
In the past, District budgets had been balanced by the use of previously accumulated reserves. The Board adopted a multi-part strategy for balancing the District Budget at its January 19, 2005 budget workshop. In being mindful of the board-adopted strategy, a balanced FY 2024-25 budget is being presented to the Board that maintains all of the District’s programs and services and includes funding for its adopted strategic goals.
28-A Draft Resolution No. 2024-07
28-B Fiscal Year 2024-2025 Proposed Budget (provided separately and available at https://www.mpwmd.net/who-we-are/board-of-directors/board-meeting-agendas/ )
U:\staff\Boardpacket\2024\06172024\Action
Item\28\Item-28.docx