Coachella Valley Mosquito and Vector Control District

Board of Trustees Meeting

June 10, 2008

 

Agenda Item:  New Business

Approval of Fiscal Year 2008-2009 Draft Budget – David I’Anson, Finance Manager

 

Background:

The budget process began January 8, 2008, when each department head presented a draft program description and a list of their accomplishments for the year.  On January 22, first draft budgets were submitted with descriptions of the individual budget line item requests.  A draft of the 2008/2009 goals and objectives was completed by January 29. In February, department budgets were incorporated into a District-wide first draft budget for presentation to the Finance Committee at their March 11 meeting.  This allowed them an opportunity to closely review the draft prior to their March 28 meeting. 

 

At the Finance Committee’s March 28 and April 7 meetings, Committee members met with department heads.  Suggestions and recommendations were made regarding each specific budget proposal. The Finance Committee met again April 28 to review the third draft budget. On May 2, the Finance Committee met to review the fourth draft. A fifth draft was presented to the Finance Committee at their May 13 meeting which incorporated all the recommended revisions.  After careful review at a subsequent meeting on May 30, 2008, the Finance Committee moved to forward the final draft budget to the Board of Trustees for their approval. 

 

In order to obtain an historical understanding of the District’s financial planning; the following graphs provide a perspective of the past decade of planning. They show projected revenue (Figure 1) and expenses (Figure 2) versus actual (in dollars and percentage differences) (Figure 3).

 

 

Figure 1

Figure 1 shows the budgeted revenue versus the actual revenue for the past 10 years.

 

 

Figure 2

Figure 2 displays the budget expenditure versus actual.

 

FY 2008-2009

The FY 2008-2009 budget reflects actual anticipated District revenue and expenditures for the period. The revenue budget is based on forecasting using the actual numbers for 2007-2008 and expenditure is based on actual forecasted expenditures. Figure 3 represents the budget percentage differences for the past 10 years, it is anticipated that this budget is within 10 percent accuracy for revenue and expenditures.

 

Figure 3

 

FY 2006-2007 budgeted revenue was $8.3 million, actual $9.7 million difference of almost $1.4 million. FY 2007-2008 total budgeted revenue is $8.9 million, 2007-2008 forecast revenue is $10.3 million a difference of over $1.3 million or 15 percent from budgeted amounts. FY 2007-2008 budgeted revenue was based on the previous year’s budget not actual. FY 2008-2009 is based on 2007-2008 forecasts. FY 2008-09 predicts a small growth of 3 percent for property tax, due to the slowing housing market, on FY 2007-2008 forecast and a reduction in benefit assessment total revenue from 2007-2008 budget amounts of $2.6 million to FY 2008-2009 total of $1.7 million.  Figure 4 is a summary of FY 2008-2009 revenue.

 

Figure 4 FY 2008-09 Revenue

 

 

 

Budget

 Budget

Forecast

 

 

 2008-2009

2007-2008

2007-2008

Current Secured

 

$4,320,011

$3,156,300

$4,194,185

Current Supplemental

 

$113,801

$171,544

$110,486

Current Unsecured

 

$123,879

$132,069

$120,271

Homeowners

 

$44,044

$60,060

$42,761

Interest on Riverside County Investments

 

$90,000

$52,500

$111,971

Other Miscellaneous Revenue

 

$25,078

$30,000

$39,248

Prior Supplemental

 

$124,375

$8,085

$120,752

Prior Unsecured

 

$6,218

$8,925

$0

Redevelopment Pass-Thru

 

$2,620,257

$2,395,363

$2,543,938

Disposal of Surplus Property

 

$15,000

$5,250

$23,899

Interest on Bank Accounts

 

$37,550

$70,000

$85,244

Interest Income - LAIF/CDs

 

$154,000

$200,000

$282,051

Other Miscellaneous Receipts

 

$21,000

$21,000

$57,624

Reimbursement - Services

 

$7,560

$7,560

$9,457

Benefit Assessment Income

 

$1,771,129

$2,676,556

$2,596,934

 

Total Operations Revenue

 

$9,473,900

$8,995,211

$10,338,821

 

 

The 2008/09 Budget reflects changes in reporting capital items.  Previous budgets incorporated the capital items with the operating budget.  Projects, such as the District building construction, were included in the capital budgets for a number of years. The Finance Committee made recommendations for staff to reflect in the budget the assumption that the capital improvements were to be completed after FY 2008-2009. The Committee recommended staff use more realistic figures based on 2007- 2008 actual numbers to date, rather than the fully budgeted staff assumption, with the difference to be allocated as a reserve item and budget adjustment made during the year when positions recruited. For example, the position of Vector Ecologist has been vacant for over 2 budget years, resulting in payroll, benefits and tools for the job not being expended.

 

 

 

 

Budget

 Budget

Forecast

 

 

 2008-2009

2007-2008

2007-2008

100 Buildings and Grounds

 

$227,424

$680,690

$250,279

200 Administration

 

$625,676

$582,750

$601,941

205 Risk Management

 

$177,039

$342,100

$205,930

210 Information Technology

 

$220,270

$268,234

$163,049

215 Community Outreach

 

$318,919

$306,870

$103,192

220 Bio-Control

 

$319,249

$377,998

$289,663

225 District Wide

 

$1,946,482

$2,896,216

$1,615,830

250 Trustees

 

$38,400

$53,400

$58,344

300 Shop

 

$196,845

$415,781

$352,652

400 Lab

 

$330,870

$356,886

$203,736

500 Field Operations

 

$4,214,929

$4,487,939

$4,217,901

580 Abatement

 

$3,100

$3,100

$3,100

600 Research

 

$292,139

$266,669

$228,217

800 District Capital Expenditure

 

$550,186

$2,470,000

$1,073,265

 

Total

 

$9,461,527

$13,508,633

$9,367,099

 

 

Summary

FY 2008-2009 budget revenue shows an increase of nearly 5 percent on FY 2007-2008 budgeted revenue. This includes the reduction of Benefit Assessment.

 

FY 2008-2009 budget expenditure shows a reduction of $3.7 million on FY 2007-2008 amended budget. This is a decrease of over 27 percent in budget expenditure for District operations and capital improvements, but is an increase of $94,428, 1 percent, on actual expenditure forecast for 2007-2008. 

 

 

Staff Recommendation:

Approve Fiscal Year 2008-2009 Draft Budget