Title
a. Approve and recommend that the Monterey County Water Resources Agency Board of Supervisors approve Budget Amendment No. 2 for the Monterey County Water Resources Agency FY 2016-17 Adopted Budget to appropriate an allocation of $97,205 to Agency Funds: 116, 131, and 132, needed to pay for the revised scope of work on an approved FY 2015-16 agreement with Raftelis Financial Consultants, Inc. and appropriate an additional $20,000 in Fund 132 for increased interest on the Salinas Valley Reclamation (SVRP) Project loan;
b. Authorize the Auditor-Controller to amend the Monterey County Water Resources Agency FY 2016-17 Adopted Budget for Fund 116-ADM, WRA 006 to increase appropriation by $37,000 financed by unassigned fund balance (4/5th vote required);
c. Authorize the Auditor-Controller to amend the Monterey County Water Resources Agency FY 2016-17 Adopted Budget for Fund 131 CSIP O&M, WRA 020 to increase appropriation by $37,000 financed by unassigned fund balance (4/5th vote required); and,
d. Authorize the Auditor-Controller to amend the Monterey County Water Resources Agency FY 2016-17 Adopted Budget for Fund 132 SVRP O&M, WRA 021 to increase appropriations by $43,205 financed by unassigned fund balance (4/5th vote required).
Report
RECOMMENDATION:
It is recommended that the Monterey County Water Resources Agency Board of Directors:
a. Approve and recommend that the Monterey County Water Resources Agency Board of Supervisors approve Budget Amendment No. 2 for the Monterey County Water Resources Agency FY 2016-17 Budget to appropriate an allocation of $97,205 to Agency Funds: 116, 131, and 132, needed to pay for the revised scope of work on an approved FY 2015-16 agreement with Raftelis Financial Consultants, Inc. and appropriate an additional $20,000 in Fund 132 for increased interest on the Salinas Valley Reclamation (SVRP) Project loan;
b. Authorize the Auditor-Controller to amend the Monterey County Water Resources Agency FY 2016-17 Adopted Budget for Fund 116-ADM, WRA 006 to increase appropriation by $37,000 financed by unassigned fund balance (4/5th vote required);
c. Authorize the Auditor-Controller to amend the Monterey County Water Resources Agency FY 2016-17 Adopted Budget for Fund 131 CSIP O&M, WRA 020 to increase appropriation by $37,000 financed by unassigned fund balance (4/5th vote required); and,
d. Authorize the Auditor-Controller to amend the Monterey County Water Resources Agency FY 2016-17 Adopted Budget for Fund 132 SVRP O&M, WRA 021 to increase appropriations by $43,205 financed by unassigned fund balance (4/5th vote required).
SUMMARY/DISCUSSION:
On February 29, 2016, the Agency Board of Director’s approved the Raftelis Financial Consultants Inc. agreement with an original scope of work that included all Agency flood zones and assessment zones. However, when the report moved for approval to the Board of Supervisors it was determined that no funding would be provided by the County of Monterey and that the scope of work was too large. At that point in time, the Agency modified the scope of work to include only Zones 2B, 2Y, and 2Z which are under the umbrella of Zone 2C and make up approximately 70% of the Agency’s total assessment revenue. This transaction will reallocate the remaining balance owed ($97,205) of the original $110,360 to Funds 116 Administration, 131 CSIP O&M, and 132 SVRP O&M.
The second part of the transaction in this report is a request to increase appropriations in Fund
132 SVRP O&M of $20,000 to pay the additional interest on SVRP loan. This increase is a result of modifications to the annual excess lands report required by the Agency to file annually with the USBR as part of the contractual agreement for the loan. The definition of “excess land” is all land in the project service area capable of being furnished irrigation benefits which is held in private ownership by a limited recipient or qualified recipient in excess of 320 irrigable acres. The increase in annual interest on the unpaid loan principal was based on the 2015 total irrigable land and the total irrigable excess land and we anticipate it to be the same for 2016.
OTHER AGENCY INVOLVEMENT:
No other agencies were involved in preparing this report.
FINANCING:
The Agency FY 2016-17 Adopted Budget has sufficient fund balance in Funds 116 ADM, 131, and 132 to finance these transactions as shown in Attachment Nos. 1 & 2.
Prepared by: Cathy Paladini, Finance Manager II, (831) 755-4860
Approved by:
David E. Chardavoyne, General Manager, (831) 755-4860
Attachments:
1. Board Order
2. MCWRA Budget Revision
3. MCWRA Budget Summary