FROM: Robert Thompson, General Manager
Originator: Wally Ritchie, Director of Finance
SUBJECT:
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BUDGET INCREASE FOR FISCAL YEAR 2024-25
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION: Recommend to the Board of Directors to:
Approve a budget increase of $20,000,000 for FY 2024-25, for a total budget as follows:
FY 2024-25
Net Operating
$232,674,493
Self-Insurance - Worker's Comp.
$1,124,029
Self-Insurance - Property & Gen. Liability
$4,402,500
Net Capital Improvement Program
$243,075,113
Debt/COP Service
$61,027,421
Intra-District Joint Equity Purchase/Sale (1)
$3,500,000
Total
$545,803,556
(1) Cash to/from Revenue Area 14 (RA14) in exchange for capital assets to/from Consolidated Revenue Area 15 (RA15)
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BACKGROUND
In June 2024, the Board of Directors approved the Operating, Capital, Debt Service, and Self-Insurance Budgets for FY 2024-25 and FY 2025-26. Subsequently, the Board of Directors approved a land purchase in September 2024, and a construction claim settlement in December 2024. These actions are capital expenditures and were not included in the original budget. Staff did not request a budget increase at the time of approval of these expenses believing there was sufficient budget capacity. In the final months of the fiscal year, pre-planned and budgeted capital expenses were fully realized, driving the need to request a FY 2024-25 budget increase. However, cashflow remains unaffected due to receiving higher than budgeted revenues, which offset this budget increase.
RELEVANT STANDARDS
* Ensure the public's money is wisely spent
* Produce appropriate financial reporting - Ops & CIP budgets every two years, with annual update
PROBLEM
The budget authority for FY2024-25 is not adequate to cover the actual expenses for the fiscal year. The budget authority was not increased concurrently with the Board approval of the property purchase or construction claim settlement after budget adoption. Planned oper...
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