HomeMy WebLinkAbout2023-10-10; Municipal Water District; ; Authorization to appropriate fiscal year 2022-23 budget carryforward requests to fiscal year 2023-24CA Review: JRT
Meeting Date: Oct. 10, 2023
To: President and Board Members
From: Scott Chadwick, Executive Manager
Staff Contact: Zach Korach, Finance Director
zach.korach@carlsbadca.gov, 442-339-2127
Subject: Authorization to appropriate fiscal year 2022-23 budget carryforward
requests to fiscal year 2023-24
Districts: All
Recommended Action
Adopt a resolution approving the fiscal year 2022-23 budget carryforward requests and
appropriation of funds to fiscal year 2023-24 and authorizing capital outlay purchases.
Executive Summary
The City Council approved staffs’ request to carry unspent funds from the fiscal year 2022-23
budget over to fiscal year 2023-24 on Sept. 26, 2023, appropriating the funding for specific
projects and authorized capital outlay purchases. The attachment to the resolution,
Carryforward Budget Requests for City Council Consideration, included two requests related to
the Utilities Department’s Potable Water Fund, to complete a potable water master plan
update and a couple utility truck conversions.
Because those requests pertaining to potable water would be funded from the water district’s
enterprise fund, which is separate from the city’s General Fund, they need to be approved by
the Carlsbad Municipal Water District Board. The attached resolution provides the correct
approval from the Carlsbad Municipal Water District to appropriate the funds to fiscal year
2023-24 for these two non-General Fund requests.
Explanation & Analysis
The City Council’s approval is required for the use of any remaining General Fund surplus funds
for items equal to or greater than $100,000 under City Council Policy No. 87, the General Fund
Surplus Policy. These budget transfers of unspent funds from one fiscal year to the next are
known as carryforwards.
The City Council approved the budget carryforward requests for the current fiscal year on Sept.
26, 2023. This included two requests funded by the Utilities Department’s Potable Water Fund,
which is governed by the Carlsbad Municipal Water District.
Oct. 10, 2023 Item #6 Page 1 of 4
To receive the correct approval to appropriate these funds, staff are recommending the Board
approve two requests received from Utilities:
• Potable water master plan update - $650,000
o The Potable Water Master Plan update provides a system evaluation and
capacity assessment of the potable water system and recommends a Capital
Improvement Program project to provide for continued reliable water service
through buildout conditions, which are projected to occur by 2045 or later.
Updating this master plan will help guide Carlsbad in spending public funds in the
most cost-effective manner. The plan was last updated in 2019, and it is an
industry best practice to update such plans every five years to reflect changing
conditions such as development, zoning and water availability. The process can
take a year or more, so Utilities staff recommend initiating it now.
• Convert several trucks in the Utilities fleet - $95,000
o This request for carryforward funding would pay to convert two CMWD regular
light-duty pickup trucks slated for replacement to make them utility trucks
capable of being outfitted with specialized equipment. An additional $35,000 will
cover the outfitting costs, such as adding light bars for night work, for a new
CMWD vehicle. The original request approved by the City Council on Sept. 26
had a total value of $145,000, with $50,000 to come from the Wastewater Fund
to upgrade a truck used in wastewater services. The remaining $95,000 requires
the approval of the CMWD Board because it is to come from the Potable Water
Fund.
Fiscal Analysis
The fiscal year 2022-23 unspent and unencumbered budget of $745,000 in the water fund and
will be appropriated to fiscal year 2023-24.
Next Steps
Both Board-approved carryforward requests will be appropriated to the fiscal year 2023-24
budget.
Environmental Evaluation
This action does not require environmental review because it does not constitute a project
within the meaning of the California Environmental Quality Act under California Public
Resources Code Section 21065 in that it has no potential to cause either a direct physical
change or a reasonably foreseeable indirect physical change in the environment.
Exhibits
1. Carlsbad Municipal Water District Board resolution
Oct. 10, 2023 Item #6 Page 2 of 4
RESOLUTION NO. 1719
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CARLSBAD
MUNICIPAL WATER DISTRICT OF THE CITY OF CARLSBAD, CALIFORNIA,
APPROVING THE FISCAL YEAR 2022-23 BUDGET CARRYFORWARD REQUESTS
AND APPROPRIATION OF FUNDS TO FISCAL YEAR 2023-24 AND
AUTHORIZING CAPITAL OUTLAY PURCHASES
WHEREAS, City Council Policy No. 87 requires City Council approval for the carryforward of any
unspent and unencumbered budget for a particular item equal to or greater than $100,000; and
WHEREAS, Utilities department carryforward requests were submitted for approval at the Sept.
26, 2023, City Council meeting for $745,000 in the Potable Water Fund for master plan updates and
utility truck conversions;
WHEREAS, the Board of Directors of the Carlsbad Municipal Water District of the City of
Carlsbad, California, or CMWD, has determined it necessary, desirable and in the public interest to
update the master plan and complete the utility truck conversions; and
WHEREAS, the CMWD Board of Directors has approved both carryforward requests and
appropriation of funds in fiscal year 2023-24.
NOW, THEREFORE, BE IT RESOLVED by the CMWD Board of Directors, as follows:
1.That the above recitations are true and correct.
2.That the budget carryforward requests for $745,000 in the Potable Water Fund are
approved for carryforward from fiscal year 2022-23 to fiscal year 2023-24.
3.That the Executive Manager, or designee, is authorized to purchase the capital outlay
items totaling $95,000 in the Potable Water Fund for two utility truck conversions and
outfitting costs.
4.That the Executive Manager, or designee, is authorized to appropriate carryforward
budgets to the Potable Fund.
Exhibit 1
Oct. 10, 2023 Item #6 Page 3 of 4
PASSED, APPROVED AND ADOPTED at a Special Meeting of the Board of Directors of the
Carlsbad Municipal Water District of the City of Carlsbad, California on the 10th day of Oct., 2023, by
the following vote, to wit:
AYES:
NAYS:
ABSTAIN:
ABSENT:
Blackburn, Bhat-Patel, Acosta, Burkholder.
None.
None.
Luna.
KEITH BLACKBURN, President
SHERRY FREISINGER, Secretary
(SEAL)
Oct. 10, 2023 Item #6 Page 4 of 4