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.
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