ITEM:

ACTION ITEM

 

33.

REVIEW PROPOSED FISCAL YEAR 2021-2022 MPWMD BUDGET AND RESOLUTION 2021-05

 

Meeting Date:

June 21, 2021

Budgeted:

N/A

 

From:

David J. Stoldt,

Program/

N/A

 

General Manager

Line Item No.:

 

 

Prepared By:

Suresh Prasad

Cost Estimate:

N/A

 

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:At the May 27, 2021 Board Budget Workshop meeting, staff presented the proposed budget for Fiscal Year 2021-2022.After receiving staffís presentation and responses to questions regarding the proposed budget, the Board 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) 2021-2022 is attached as Exhibit 33-B.While preparing the proposed budget, District staff was mindful of the continued economic conditions due to COVID-19 and as well as the current status of the Districtís four main funding sources (User Fee Revenue, Property Tax Revenue, Water Supply Charge, and Pure Water Monterey (PWM) water sales).This budget assumes continuation of the adopted annual Water Supply Charge and the User Fee revenue from ratepayers of California American Water in FY 2021-2022.This budget also takes into account Districtís existing Mechanics Bank (formerly Rabobank) Aquifer Storage Recovery (ASR) loan obligation.Proposed expenditures and revenues each total $29,530,700, which is slightly higher for expenditures and revenues from the amount budgeted in FY 2020-2021.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 include the use of reserves to balance the proposed budget.The FY 2021-2022 Budget also assumes payment of $230,000 towards debt service (interest and principal) for the Mechanics Bank Loan.The budget document has been presented in same format as in prior years.

 

RECOMMENDATION: Staff recommends that the Board adopt Resolution No. 2021-05, A Resolution of the Board of Directors of the Monterey Peninsula Water Management District Adopting the Budget for Fiscal Year 2021-2022.

 

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 2021-2022 totaling $29,603,700, of which $4,163,700 or 16% includes reimbursement funds from grants, California American Water and other agencies.It also includes $9,828,000 for PWM water sales.Additionally, general reserves in the amount of $4,174,000 (includes fund balance and carry forward programs) was used to balance this budget.

 

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 2021-2022 Budget was balanced with the use of reserves to maintain all of Districtís programs and services.The use of reserve was primarily due to expenditures related to PWM project and ASR project.This budget assumes the continued collection of the annual Water Supply Charge, User Fee revenues from ratepayers of the California American Water, and Property Tax revenues from the County.

 

EXHIBITS

33-A††† Draft Resolution No. 2021-05

33-B††† Draft Fiscal Year 2021-2022 Proposed Budget

 

 

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