Meeting Date:

May 15, 2017





David J. Stoldt,




General Manager

Line Item No.:


Prepared By:

Suresh Prasad

Cost Estimate:



General Counsel Review:N/A

Committee Recommendation: N/A

CEQA Compliance:This action does not constitute a project as defined by the California Environmental Quality Act Guidelines section 15378.


SUMMARY:The proposed budget for Fiscal Year (FY) 2017-2018 is attached as Exhibit 15-C.While preparing the proposed budget, District staff was mindful of the continued economic conditions as well as the current status of the Districtís three main funding sources (User Fee Revenue, Property Tax Revenue, and Water Supply Charge).This budget assumes continuation of the adopted annual Water Supply Charge and resumption of the User Fee revenue from ratepayers of California American Water in FY 2017-2018.This budget also takes into account Districtís existing Rabobank ASR loan debt obligation.Proposed expenditures and revenues each total $13,040,800, which is relatively flat for expenditures and revenues from the amount budgeted in FY 2016-2017.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 proposed budget.The FY 2017-2018 Budget also assumes payment of $230,000 towards debt service (interest and principal) for the Rabobank ASR Loan.The budget document has been presented in same format as in prior years.


RECOMMENDATION: Staff recommends that the Board discuss the proposed FY 2017-2018 budget and give general direction to staff to prepare the final budget document for adoption at the June 19th Board Meeting.No formal action is required at this meeting.


BACKGROUND:After compilation of the original requests from all Divisions, a detailed review and several adjustments by Division Managers and the General Manager, culminated this budget with proposed expenditures and revenues for FY 2017-2018 totaling $13,040,800, of which $3,081,300 or 22% includes reimbursement funds from grants, California American Water and other agencies.


In the past, District budgets had been balanced by use of previously accumulated reserves.At the Districtís strategic planning session on September 29, 2004, staff recommended that a balanced budget be prepared for FY 2005-2006 using a combination of revenue and expenditure adjustments to eliminate the use of reserve funds.At the January 19, 2005 budget workshop, the Board adopted an eight-part strategy for balancing the FY 2005-2006 Budget.In being mindful of the 2005 Board adopted strategy, every effort was made to balance this proposed budget without the use of reserves.This proposed FY 2017-2018 Budget was balanced without the use of reserves to maintain all of Districtís programs and services.This budget assumes the continued collection of the annual Water Supply Charge and resumption of the User Fee revenues from ratepayers of the California American Water.



15-A††† Draft Resolution No. 2017-09

15-B††† Draft Copy Certification

15-C††† Draft Fiscal Year 2017-2018 Proposed Budget