12. CONSIDER ADOPTION OF MID-YEAR FISCAL YEAR
2003-2004 BUDGET
ADJUSTMENT
Meeting
Date: January 29, 2004 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 this item on January 20,
2004 and recommended approval.
CEQA
Compliance: N/A
SUMMARY:
Annually, the District considers its financial position after the end of the
second fiscal quarter. District staff
has reviewed income and spending patterns since July and determined that
adjustment of the budget developed last spring and adopted June 16, 2003 is
required. The tables below summarize
the proposed budget changes:
|
Revenue |
Adopted |
Change |
Amended |
|
Property Tax |
$980,000 |
$50,000 |
$1,030,000 |
|
Permit Fees |
90,000 |
0 |
90,000 |
|
Connection
Charges |
350,000 |
0 |
350,000 |
|
User Fees |
1,920,000 |
0 |
1,920,000 |
|
Recording Fees |
11,000 |
0 |
11,000 |
|
Interest |
200,000 |
(50,000) |
150,000 |
|
Project
Reimbursements |
132,000 |
113,600 |
245,600 |
|
Legal Fee
Reimbursements |
17,000 |
0 |
17,000 |
|
Grants |
50,000 |
0 |
50,000 |
|
Other |
5,000 |
10,000 |
15,000 |
|
Subtotal |
$3,755,000 |
$123,600 |
$3,878,600 |
|
Capital Equip.
Reserve |
38,000 |
0 |
38,000 |
|
From Fund
Balance |
2,028,600 |
(267,800) |
1,760,800 |
|
Total |
$5,821,600 |
($144,200) |
$5,677,400 |
|
|
|
|
|
|
Expenditures |
Adopted |
Change |
Amended |
|
Personnel |
$2,419,700 |
$0 |
$2,419,700 |
|
Supplies &
Services |
539,500 |
9,000 |
548,500 |
|
Program
Expenses |
2,337,800 |
(172,600) |
2,165,200 |
|
Fixed Assets |
159,500 |
23,500 |
183,000 |
|
Other |
365,100 |
(4,100) |
361,000 |
|
Total |
$5,821,600 |
($144,200) |
$5,677,400 |
|
|
|
|
|
RECOMMENDATION:
Following presentation by District staff and
the public hearing, adopt the proposed mid-year budget adjustment for Fiscal
Year 2003-2004. The
Administrative Committee reviewed the proposed mid-year adjustments on January
20, 2004 and voted 3 to 0 to recommend approval.
IMPACT
OF STAFF AND RESOURCES:
The changes discussed in the background section relate only to current District
activities, including funding required this year for strategic initiative
projects already in progress. Future
funding for strategic initiatives approved by the Board will be addressed
during the 2004-2005 budget process.
PRIOR
BOARD ACTION: The Board adopted the original Fiscal Year
2003-2004 budget on June 16, 2003
BACKGROUND: The
paragraphs below summarize significant changes to the annual budget and fund
balances.
Revenue
The
2003-2004 original budget anticipated revenue collections in the amount of
$3,755,000. In addition to the budgeted revenues, it was projected that
$2,066,600 would be utilized from prior-year fund balances to pay the
$5,821,600 in planned expenditures. As
of November 30, 2003, actual revenue collections totaled $917,548 or about 24
percent of the budget amount. District
staff has analyzed the revenue activity for the first six months of the fiscal
year, as well as changes in activities scheduled for the second half of the
fiscal year and recommends that various adjustments to the revenue portion of
the budget be made as discussed below.
In
December 2003, the District received approximately $567,000 in property taxes, which
is about 66 percent of the budgeted amount.
Based on these collections, the budget for property tax revenue has been
increased by $50,000. The amount of
District reserves available for investment has declined and interest rates have
continued to stay very low resulting in a projected reduction of $50,000 in
interest revenue for the fiscal year.
Project reimbursements have been increased by a total amount of
$113,600. This increase is comprised of
approximately $61,200 of unbudgeted reimbursements from Cal-Am related to their
dam application for the period July 1, 2002 to August 18, 2003; and $52,400 of
revenue generated by a contract to provide services to the Carmel River
Watershed Council. The “Other” category
has been increase by $10,000, mostly due to revenue generated by the sale of
surplus vehicles. The cumulative effect
of the above adjustments is a net increase of $123,600 in projected revenues
for Fiscal Year 2003-2004.
Expenditures
The
original budget envisioned expenditures of $5,821,600 in the fiscal year ending
June 30, 2004. As of November 30, 2003, actual expenditures totaled $1,706,409
or approximately 29 percent of the annual budget.
A
review of the personnel portion of the 2003-2004 budget indicated that no
changes to the budgeted amounts are required.
The supplies and services portion of the budget was increased by $9,000
due to additional computer hardware and software requirements for the new
Geographic Information System (GIS) and general District-wide support by
Information Technology (IT).
Fixed
asset expenditures have been increased by $23,500. A listing of the proposed expenditures is included as Exhibit 12-A. Of this amount, $1,400 is
due to the actual cost of obtaining aerial orthophotos of the District being
slightly higher than the $70,000 amount that was budgeted. The remaining amount of $22,100 includes
funds for purchase of two laptop computers (one additional and one
replacement), replacement of three desktop personal computers, various hardware
and software for security video surveillance of the front office counters, and
various hardware and software for the GIS and general IT support.
Various
adjustments were required to program expenditures resulting in a net decrease
of $172,600. The changes are shown on Exhibit 12-B. One notable increase is $7,500 for the application fee for the
2004 temporary permit for the Seaside aquifer storage and recovery
project. This fee, which was previously
only $100, has been increased due to a lack of State funding. Many of the other large program expenditure
reductions are due to the fact that the funds won’t be expended until Fiscal
Year 2004-2005. The funds will again be
included in that budget.
The
“Other” expense category includes annual accruals for the Flood and Drought
Reserve, Capital Equipment Reserve, election expense, annual reimbursement of
the capital cost of the office building and the contingency. The decrease of $4,100, shown in the “Other” category in the table in the summary
section of this staff note, reflects an adjustment to the contingency amount
based on the net decrease in the Supplies & Services and Program
Expenditure categories.
The
cumulative effect of the adjustments to the expenditure side of the budget is a
decrease of $144,200 in projected expenditures for Fiscal Year 2003-2004.
Fund
Balances
|
|
The
net effect of the proposed mid-year budget adjustment reduces the amount to be
used from fund balance by $267,800.
Actual
fund balances, as reported in the annual audit report for the Fiscal Year
ending June 30, 2003, were $4,352,734, which is approximately $447,000 less
than projected at the time the budget for 2003-2004 was prepared. These actual fund balances will be
incorporated into the amended budget.
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