BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Receive and Approve the Fiscal Year 2018-19 Year-End Closing Budget Adjustment and Fiscal Year 2019-20 Midyear Budget Adjustment.
End
RECOMMENDATION:
Recommendation
A. Approve the Fiscal Year 2018-19 year-end closing budget adjustment; and
*B. Approve the Fiscal Year 2019-20 midyear operating and capital budget adjustments as per Supplemental Attachments 1 and 2.
Body
SUMMARY:
At the end of each fiscal year (FY), Valley Water conducts a reconciliation of budget reserve estimates with actual reserves. The result of this reconciliation is to implement the year-end closing budget adjustment. The year-end closing budget adjustments are submitted to the Board on an annual basis as part of the year-end closing process.
The projected year-end budget reserves are adjusted to reflect the FY 2018-19 actual reserves validated by the external audit process conducted by independent auditors Maze & Associates.
Concurrently, staff submits to the Board the FY 2019-20 Midyear adjustment to reflect impacts of prior year-end fiscal close and to recommend other budget adjustments in anticipation of necessary expenses not included at the time of adoption.
The FY 2018-19 year-end closing budget adjustments are presented in Attachment 1 summarized as follows:
1. Reduce capital project appropriation: There are no FY 2018-19 reductions in capital project appropriations.
2. Deferral of capital project budget to FY 2019-20: There are no capital project budget deferred from FY 2018-19 to FY 2019-20.
3. Update FY 2018-19 budget reserves: To reflect the audited reserves for FY 2018-19 resulting from final revenues, expenses, transfers and debt proceeds. These year-end reserves become the beginning reserves for FY 2019-20. Therefore, this adjustment brings the FY 2019-20 reserves budget into alignment with the prior year-end results. The change to reserves total is $86.0 million. Attachment 1 shows the specific reserve adjust...
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