12. CONSIDER DRAFT FISCAL YEAR 2003-2004 MPWMD BUDGET
Meeting Date: May 19, 2003 Budgeted: N/A
Program/Line Item No.: N/A
Staff Contact: Rick Dickhaut Cost Estimate: N/A
General Counsel Approval: N/A
Committee Recommendation: The Administrative Committee reviewed the draft 2003-2004 Budget on April 30 and May 12, 2003 and recommended consideration by the full Board of Directors.
CEQA Compliance: N/A
SUMMARY: The first two pages of Exhibit 12-A show the current draft of the 2003-2004 budgeted revenues and expenditures. Included on these pages are comparisons to the actual revenues and expenditures for Fiscal Years 1999-2000, 2000-2001 and 2001-2002 as well as comparisons to the 2002-2003 budgeted and estimated amounts. The other pages provide additional information on revenues and expenditures including detailed listings of proposed capital asset purchases and project expenditures. It is important to note that the current draft budget is based on the requests as submitted by District staff and changes suggested by the Administrative Committee.
RECOMMENDATION: The Administrative Committee reviewed the draft 2003-2004 Budget on April 30 and May 12, 2003, and recommended several changes that have been incorporated into this draft. The Committee recommended consideration by the full Board of Directors.
BACKGROUND AND DISCUSSION INFORMATION: Due to pending capital project issues that were to be discussed at the March 27, 2003 Special Board meeting, and their significant impact on the 2003-2004 Budget, the budget was not discussed at the March Administrative Committee and Board meetings as was originally anticipated. At the March Administrative Committee meeting it was decided that a special Administrative Committee meeting would be held for the sole purpose of discussing the first draft of the budget. District staff completed the first draft of the 2003-2004 Budget and it was presented to the Administrative Committee at the special meeting on April 30, 2003. The budget was again discussed at the May 12, 2003 Administrative Committee meeting. Suggested minor changes received from the Committee at those meetings have been incorporated into the latest draft. Pending issues which may be discussed by the Board 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 2002-2003 Budget, as revised on February 27, 2003, anticipated the use of District reserves in the amount of $1,234,300, however, due to less than anticipated project expenditures it is currently projected that the actual use of reserves will be approximately $200,000. This amount could be larger or smaller depending on the timing of work on several large projects currently underway. The initial draft of the 2003-2004 budget reflects increased project expenditures that again would require a significant use of reserves. Additionally, this draft budget includes a larger portion of project expenditures that Cal-Am is not expected to reimburse. Discussion by the Board may include potential revenue increases and expenditure reductions.
Miscellaneous: The Board may have other issues it wishes to address during the preparation of the 2003-2004 Budget. The final 2003-2004 budget will be presented for adoption at the regular Board meeting of June 16, 2003.