BOARD AGENDA MEMORANDUM
SUBJECT:
Title
Overview of the Fiscal Year (FY) 2018-19 First Pass Budget Development Process.
End
RECOMMENDATION:
Recommendation
Receive and discuss the overview of the District's FY 2018-19 First Pass Budget Development Process.
Body
SUMMARY:
The District develops the annual budget to allocate the public's funds that are necessary to provide Silicon Valley with safe, clean water for a healthy life, environment and economy. The development of the District's budget is accomplished in an open transparent process providing opportunity for Board and public input. This report presents the first pass budget update and schedule for development of the final FY 2018-19 Budget. The process includes over ten (10) open session discussions providing the Board and public significant opportunity for input. In addition to the Board open sessions, Board Advisory committees have opportunities for input during the development of the Budget. The Board has scheduled Budget work study sessions for April 25 through 27. The process is scheduled to conclude with the adoption of the budget on May 8, 2018.
The First Pass budget update includes the various assumptions that support the first pass results (See attachment 1). The key revenue assumption is a 9.6% increase for the North County Zone W-2 Municipal & Industrial (M&I) groundwater production charge and a 7.6% increase for the South County Zone W-5. The base case preliminary groundwater production charge analysis presented to the Board on January 9th, 2018 assumed a 9.2% increase for North County and 6.2% for South County. The difference is driven by an assumed 7.5% participation level in the State Water Project portion of the California WaterFix instead of the 5% participation level assumed in the base case preliminary analysis.
The update also includes a staff proposal to modify the projects that roll up under the Information Technology (IT) Fund. Staff proposes to move IT operations projec...
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