The fiscal year is the twelve-month period beginning July 1 and ending June 30 of the following year. The District uses the fiscal year as the basis for reporting financial information a twelve-month accounting period.
The budget assumptions are generally accepted statements, which if untrue, would materially alter the financial planning and budget of the agency.
Revenues are derived from various sources and allocated to each operating fund. Property taxes, permits fees, water connection charges, user fees, interest on investments, reimbursements to the District for projects carried-out by the District and grants are the principal revenue sources. Revenues may include a portion of the prior-year fund balance used to offset expenditures. A pie chart graphically shows percentages of revenues according to source.
Designated reserves are funds set aside by the Board for specific, restricted uses. Examples include
capital equipment, litigation, flood/drought, and pre-paid expenses.
General reserves are the balances in each operating fund of the District that remain after all budgeted expenses are paid. Normally, the general reserve balance is carried forward from one fiscal year to the next. The value is verified annually by the independent auditor and reported in the annual audit report.
Article XIII (B):
Article XIII (B) is a section of the California State Constitution relating to the amount of a public entities tax revenues that may be expended in a given fiscal year. In the instance of the MPWMD, the article limits the amount of property tax revenue that may be spent in a fiscal year. It is calculated based upon the prior year=s limit multiplied by a factor representing annual growth in population and consumer prices. The latter is furnished by the State Treasurer=s Office. The calculation, required since the passage of Proposition 13 in 1978, is contained in each District budget and is identified as “Property Tax Appropriation.”
Expenditures are associated with each operating fund. Personnel costs, services and supplies, capital assets and project expenditures are the principal categories. A pie chart graphically shows percentages of expenditures according to category.
Capital assets are equipment and components costing $500 or more that are not expendable or consumable.
The Summary of Project Expenditures is a listing of costs for the coming year that are projected as a result of specific projects and programs carried-out by the staff, consultants and contractors. Generally the largest expense category in the budget. Project expenditures do not include staff compensation for regular employees.
Office Purchase Reimbursement:
The office purchase reimbursement category is the annual reimbursement to the Capital Projects and Mitigation Funds, with reimbursement beginning in 2000 and ending in 2014, to repay the capital costs for the District office building in Ryan Ranch.
The contingency is a small percentage of the budget identified for expenditure for unforeseen emergencies or special purposes requiring Board approval.
Allocation of Staff Effort:
The allocation of staff effort table is the budget schedule that relates employee output to the three operating funds. It shows the output of each employee as a percentage of total time by operating fund and number of days of labor in a year. The sum of the total number of days of labor by all employees is expressed as a percentage. This percentage is used throughout the budget as the basis of allocating general and administrative (overhead) costs.