File #: 18-1151    Version: 1 Name:
Type: CEO Item Status: Agenda Ready
File created: 12/19/2018 In control: Board of Directors
On agenda: 2/12/2019 Final action:
Title: Overview of the Fiscal Year 2019-20 First Pass Budget Development Process.
Attachments: 1. Attachment 1: PowerPoint, 2. *Handout 8.2-A Katja Irvin
BOARD AGENDA MEMORANDUM


SUBJECT:
Title
Overview of the Fiscal Year 2019-20 First Pass Budget Development Process.


End
RECOMMENDATION:
Recommendation
Receive and discuss the overview of the District's Fiscal Year 2019-20 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 Fiscal Year (FY) 2019-20 Budget. The process includes over nine (9) 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 on April 24 and 25. The process is scheduled to conclude with the adoption of the budget on May 14, 2019.

The First Pass budget update includes the various assumptions that support the first pass results (See attachment 1). The key revenue assumption is a 6.6% increase for the North County Zone W-2 Municipal & Industrial (M&I) groundwater production charge and a 6.9% increase for the South County Zone W-5. The groundwater production charge analysis presented to the Board on January 8th, 2019 assumed a 6.4% increase for North County and 6.6% for South County. The difference is driven by schedule and cost refinements to the Capital Improvement Program (CIP) as well as increases to contingency reserves and corrections to the Salary and Benefits overhead rates.

The District's financial planning and budget development processes are governed by the District Act, Section 13 for taxation and Section 20 for adoption of the budget. In addition,...

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