17. CONSIDER
ADOPTION OF FISCAL YEAR 2003-2004 MPWMD BUDGET
Meeting
Date: June 16, 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 latest draft 2003-2004 Budget on June 10, 2003 and voted
2 to 0 to recommend that the budget be presented to the full Board.
CEQA
Compliance: N/A
SUMMARY:
General: The latest draft of the 2003-2004 budget
is included as Exhibit 17-A
and includes all programs and expenses currently being considered for the
Fiscal Year beginning July 1, 2003. It
is based on the District’s current strategic initiatives and other ongoing
programs. Exhibit 17-B shows comparisons of the
proposed budget to 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. Exhibit 17-C
is Districts staff’s latest effort to identify items that could be used to
reduce the proposed budget.
Current
Year: In recent years the budget has been balanced
by utilizing large amounts of reserve funds for operational and project
expenditures. The 2002-2003 Budget, as
revised on February 27, 2003, anticipated the use of 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.
Fiscal
Year 2003-2004: Assumptions governing both revenues and
expenditures are listed in the draft budget.
The assumptions are not significantly different from those relating to
the current year’s budget, with the exception that no project reimbursements
from Cal-Am are currently included in the draft budget.
Revenues:
For Fiscal Year 2003-2004, revenues are anticipated to total $3,755,000,
or about 10 percent less than those included in the Fiscal Year 2002-2003
budget. This reduction is due mostly to
decreased reimbursements from Cal-Am as mentioned in the paragraph above.
Expenditures:
For Fiscal Year 2003-2004, proposed expenditures total $5,911,300 or
about 7.2 percent more than the Fiscal Year 2002-2003 budget. Most of the increase is attributable to
project expenditures that increased from the 2002-2003 budgeted amount of
$1,972,200 to approximately $2,337,800, an increase of approximately
18.5%. This increase is due to the
substantial work currently underway for a comprehensive EIR for water supply
projects as well as other Board directed strategic initiatives.
Effect
on fund balances: The
proposed budget anticipates the use of $2,156,300 in reserves during Fiscal
Year 2003-2004. It is important to note
that these reserve funds were set aside by the Board in previous years
specifically to be used for this purpose.
RECOMMENDATION: The
Administrative Committee reviewed the latest draft of the 2003-2004 Budget on
June 10, 2003, recommended several reductions and voted 2 to 0 to recommend
that the budget be presented to the full Board.
IMPACT
ON STAFF AND RESOURCES: District staff has expended substantial time,
beginning in February of this year, to develop this budget. The budget will facilitate execution of the
District’s current strategic plan.
Activities proposed are achievable within the coming fiscal year given
proposed staffing and resources.
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 and suggested changes
received from the Committee at those at meetings were incorporated into a draft
that was reviewed by the Board at its May 19, 2003 meeting. At that meeting, District staff also
presented its first attempt to reduce the amount of the proposed budget, less
contractual and Board commitments, by 10%.
Following the presentation, the Board of Directors provided additional
direction regarding items to be considered in a 10% reduction and District
staff has subsequently further refined the list of potential reductions. The Administrative Committee again reviewed
the draft budget at its June 10, 2003 meeting and recommended several
reductions that have been incorporated into the latest draft.
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