6PM Tuesday, June 13 - Helix WD Special Board Meeting - 2017-18 Preliminary Budget

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Dear Friends: 
Here is the link (and attached) for the board package for our Special Helix Water District Board Meeting:
 AGENDA
SPECIAL MEETING OF THE BOARD OF DIRECTORS
Tuesday, June 13, 2017, 6pm
7811 University Avenue, La Mesa, CA 91942-0427
  Interesting Notes from Last Week’s Regular Board Meeting:

• Drought Level 1 was rescinded. However, per our Helix Policy 4.9 customers still must adhere to permanent water use efficiency measures.
• Item on the Customer Survey was pulled from the agenda. The item will come to committee for further discussion.

 
Proposed Fiscal Year 2017-18 Preliminary Budget:

• The Board Adopt the Fiscal Year 2017-18 Preliminary $88,282,730 Budget.
  This will result in a Total costs, including capital expenses and water purchases, are increasing by approximately $2.5 million, or 2.9 percent versus the prior year’s budget, primarily due to an increase in capital expenses. Fortunately, we were able to hold tight on our department budgets and due to rains we will be able to take advantage of using more local water supply from Lake Cuyamaca.
• This Proposed Budget’s affect to the average Customer using 18 units every two months (pdf page 21):
  • Water Rate Increase due to San Diego County Water Authority    2.3%
  • Water Rate Increase due to Helix Water District                             1.6%
  • Total Water Rate Increase                                                               3.9%
     
    Please note: This is an estimated water rate, we will go over water rates again once we have our end of the year budget numbers in August.
     
    Based on my suggestion to the District this year, I asked that we formulate our budget to comply with the Government Finance Officers Association Best Management Practices for Budgets (www.gfoa.org). The GFOA recognizes agencies to prepare budget documents of the very highest quality that reflect both the guidelines established by the National Advisory Council on State and Local Budgeting and the GFOA’s best practices on budgeting and then to recognize individual governments that succeed in achieving that goal.
     
    Helix is working toward complying with all the GFOA Budget Best Management Criteria and plans to submit for the GFOA Budget Awards Program in the next year or two. This is a huge step in the right direction, I think you will be pleased on all the information and layout. One of the most important additions to our budget is page 16, (pdf page number 25), Funding Sources and Uses.
    
    

Fiscal Year 2017-18 Funding Sources

Operating Revenue                                                         $ 82,925,300
Capital Reserves - Carryforward                                        3,905,000
Prior Year Capacity Receipts                                             1,092,430
Maintenance Reserves                                                          360,000

Total Funding Sources:                                                 $88,282,730
 
Fiscal Year 2017-18 Use of Funds

Operating Expenses                                                        $ 71,564,500
Capital Expenses - PAYGO                                               12,508,000
Capital Expenses - Carryforward & Other *                       4,205,000
Contribution to Reserves**                                                     5,230

Total Use of Funds:                                                         $88,282,730

 *Funds from the year before not spent
**Funds left over from the year before currently either comes from or goes to the General Fund – I would like to discuss this line item at a future board meeting to propose it go to the Rate Stabilization Fund.

Our 2017-18 Budget this year is very comprehensive and encompasses a new layout and a good format and all information pertaining to the District Budget, including financial policies, debt management guidelines and strategic plan.
 
The remaining dates in the annual budget and rate setting process are as follows:

June 13 Board Meeting Preliminary Fiscal Year 2017-18 Budget for Board Approval
August 2 Review with Board Tentative Final Water Rates
August 16 Board Meeting Approval of Water Rates and Distribute Fiscal Year 2017-18 Budget Document
September Bill Insert Mailed to Customers Regarding Upcoming Water Rates
January 1 Water rates effective on bills for water used in November and December

As always, I welcome your comments and feedback. 
 
Per the request of the Helix Water District Board on May 16, 2012, the following language is to be added by all Board Directors in all outgoing Director correspondence. "This correspondence, and any documents attached hereto, reflects the individual opinions and positions of the above-named Director and does not represent the opinions or positions of the District's Board of Directors or the District.  Pursuant to Section 9.1-11(A) of the Helix Water District Policies and Procedures Manual, individual Directors, except as otherwise authorized by the Board, shall have no power to act for the District or the District's Board of Directors."
 
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