Administrative Committee April 13, 2004

Item 5 – Other Business

Review Preliminary Draft Budget for Fiscal Year 2004-2005

SUMMARY: The first draft of the 2004-2005 budget is attached as Exhibit 5-A. The first two pages of the exhibit summarize the revenues and expenditures. The remaining pages provide comparisons to prior budgets, present the draft budget by Division and provide detailed listings of proposed capital asset purchases and project expenditures. It is important to note that these are the actual requests submitted by District staff in response to the Board Chair’s desire that staff’s initial requests include everything they think is needed to carry out District activities during 2004-2005. No reductions or other adjustments have been made to the initial staff requests.

RECOMMENDATION: It is recommended that the Administrative Committee review the first draft of the 2004-2005 Budget and provide direction to District staff.

BACKGROUND AND DISCUSSION INFORMATION: Board Chair Edwards has requested that staff present its initial 2004-2005 budget request for review by the Administrative Committee meeting at its April meeting. Chair Edwards further requested that the initial requests include all items that staff thinks it will need to carry out District activities next fiscal year. District staff has completed the first draft of the 2003-2004 budget in accordance to these requests. The purpose of this item is to provide the Administrative Committee with the opportunity to discuss and comment on items included in the initial draft budget and provide direction to District staff. Issues to be discussed are as follows:

Revenue and Expenditure Issues: In recent years the budget has been balanced by utilizing large amounts of reserved funds for operational and project expenditures. The 2003-2004 budget, as revised on January 29, 2004, anticipated the use of District reserves in the amount of $1,760,800. As noted at the March 31, 2004 budget workshop, the Capital Projects Fund general reserve is projected to be depleted by the end of the current fiscal year. The initial draft of the 2004-2005 budget again reflects the usage of a significant amount of reserve funds which would create deficits in several of the funds. Discussion by the Committee should include potential revenue increases and expenditure reductions.

Miscellaneous: The Committee may discuss other issues it wishes to address during the preparation of the 2004-2005 budget.

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