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ITEM: |
PUBLIC
HEARING |
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32. |
CONSIDER ADOPTION OF PROPOSED
FY 2018-2019 MPWMD BUDGET AND RESOLUTION 2018-10 |
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Meeting
Date: |
June 18, 2018 |
Budgeted: |
N/A |
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From: |
David J.
Stoldt, |
Program/ |
N/A |
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General
Manager |
Line Item No.: |
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Prepared
By: |
Suresh Prasad |
Cost Estimate: |
N/A |
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General Counsel Review: N/A |
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Committee Recommendation: N/A |
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CEQA Compliance: This action does not constitute a project
as defined by the California Environmental Quality Act Guidelines Section
15378. |
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SUMMARY: At the May 21, 2018 Board meeting, staff presented the proposed budget for Fiscal Year 2018-2019. After receiving staff’s presentation and responses to questions regarding the proposed budget, the Board requested comments and changes have been incorporated in this version of the budget. Staff has reviewed the budget and made further adjustments to the proposed budget. The latest version of the proposed budget for Fiscal Year (FY) 2018-2019 is attached as Exhibit 32-B. While preparing the proposed budget, District staff was mindful of the continued economic conditions as well as the current status of the District’s 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 the User Fee revenue from ratepayers of California American Water in FY 2018-2019. This budget also takes into account District’s existing Rabobank ASR loan debt obligation. Proposed expenditures and revenues each total $15,989,300, which is slightly less for expenditures and revenues from the amount budgeted in FY 2017-2018. 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 2018-2019 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 adopt Resolution No. 2018-10, A Resolution of the Board of Directors of the Monterey Peninsula Water Management District Adopting the Budget for Fiscal Year 2018-2019.
In the past, District budgets had been balanced by use of previously accumulated reserves. At the District’s 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 2018-2019 Budget was balanced without the use of reserves to maintain all of District’s programs and services. This budget assumes the continued collection of the annual Water Supply Charge and the User Fee revenues from ratepayers of the California American Water.
32-A Draft Resolution No. 2018-10
32-B Draft Fiscal Year 2018-2019 Proposed Budget
U:\staff\Boardpacket\2018\20180618\PublicHrngs\32\Item-32.docx