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MINUTES OF THEFISCAL POLICY COMMITTEE OF

VISTA IRRIGATION DISTRICT

April23,20l8

A meeting of the Fiscal Policy Committee was held on Monday, April 23,2018, at the offices ofthe District, l39l Engineer Street, Vista, California.

1. CALL TO ORDER

Chair Dorey called the meeting to order at 9:30 a.m

2, ROLL CALL

Directors present: Chair Dorey and Director MacKenzie.

Staff present: Eldon Boone, General Manager; Brett Hodgkiss, Assistant General Manager; DonSmith, Director of Water Resources; Frank Wolinski, Operations and Field Services Manager; RandyWhitmann, Director of Engineering; Farrokh Shahamiri, Finance Associate; Marlene Kelleher, FinanceManager; and Lisa Soto, Board Secretary.

APPROVAL OF'AGENDA

The agenda was approved as presented.

PUBLIC COMMENT TIME

There were no members of the public present.

DRAF'T F'ISCAL YEAR2Ol9 BUDGET

See staffreport attached hereto.

Assistant General Manager Brett Hodgkiss provided an overview of the District's Fiscal Year (FY)2019 Budget. He noted that the Revenue and Operating Budgets both reflect an increase of approximatelyfour percent for FY 2019 and that the Capital Budget is proposed to decrease by 16.2 percent whencompared to FY 2018; it is projected that approximately $1.4 million will be contributed to reserves. Headvised that, based on a 1O-year rolling average, the District projects to receive I I percent less local waterin FY 2019; consequently, the District will purchase more water from the San Diego County WaterAuthority; the Operating Budget reflects the anticipated cost of additional water purchases.

Mr. Hodgkiss stated that, based on discussion which took place at the recent meeting of the PublicAffairs Committee regarding the possibility of making changes to the District's Scholarship Contest, thebudget for Awards/Contributions on Page 13 had been increased by $3,000.

Mr. Hodgkiss pointed out the continued downward trend in the District's overall legal expenses.He noted a corection to the description for legal expenses, stating that the second sentence should bestricken, as it was no longer applicable. Under "Consultants" on the same page, Mr. Hodgkiss stated thatthe first item in the account group listing should be changed from "Master Plan/Facilities Study" to "WaterSupply Planning Study". Mr. Hodgkiss also reviewed changes to the Field Services Department

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Fiscal Policy CommitteeMINUTES 412312018VISTA IRRIGATION DISTRICT

Organizational Chart; the revisions were being made to correct the omission of approved positions fromthe organizational chart. The revisions are as follows: 1) add a Welder I position; 2) change the title of oneConstruction Worker position to Welder Helper; and 3) add a Labor Trainee position (under the FacilitiesSupervisor).

The Committee reviewed the Capital Budget. Chair Dorey requested that the original purchase yearbe added to the description of assets being replaced in future budget documents. The Committee discussedthe proposed HB Reservoir Rehabilitation Project. Director MacKenzie suggested adding a generaldescription of the location of reservoirs in future documents.

Mr. Hodgkiss reviewed the capital request to purchase mini hydraulic excavator (5-ton) to replacea much larger 24-ton excavator. Mr. Boone commended staff for recommending eliminating the aged largerexcavator in favor of this smaller, more versatile piece of equipment. Operations and Field ServicesManager Frank Wolinski stated staff has concluded that it would be more cost effective to rent the largerexcavator when needed, rather than keeping one as part of the District's inventory. The Committeeconcurred with this assessment.

The Committee recommended that the Fiscal Year 2019 Budget, with minor changes as noted, bepresented to the Board of Directors for approval on May 2,2018.

6. COMMENTS BY COMMITTEE MEMBERS

None were presented.

COMMENTS BY GENERAL MANAGER

None were presented.

ADJOURI\MENT

There being no further business to come before theadjourned the meeting.

Paul E. , Chair

ATTEST:

Lisa R.Board of DirectorsVISTA IRRIGATION DISTRICT

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at 10:35 a.m. Chair Dorey

Fiscal Policy CommitteeMINUTES 4/23/20182VISTA IRRIGATION DISTRICT

FISCAL POLICY COMMITTEE

STAFF REPORT

Agenda Item: 5 Meeting Date: April 23, 2018 Prepared By: Marlene Kelleher Reviewed By: Brett Hodgkiss Approved: Eldon Boone

SUBJECT: DRAFT FISCAL YEAR 2019 BUDGET RECOMMENDATION: Review draft Fiscal Year 2019 Budget. FISCAL IMPACT: The draft Budget projects revenues of $53,210,300, operating expenses of $45,832,700 and capital outlay of $5,958,000; revenues are projected to exceed operating expenses and capital outlay resulting in a $1,419,600 being contributed to reserves. SUMMARY: The draft Budget projects water sales of 16,500 acre feet; 14,207 acre feet of water is projected to be purchased from the San Diego County Water Authority and 3,393 acre feet of local water is projected to come from Lake Henshaw. Local water production is budgeted based on a 10-year rolling average. Revenue and Operating Budgets are projected to increase by just over 4% primarily as a result of inflationary adjustments made to water rates and charges as well as operating expenses, including purchased water and infrastructure repair and maintenance costs. The Capital Budget is projected to decrease by 16% to $5,958,000. Approximately 92% of the Capital Budget is designated for the Mainline Replacement Program and other necessary water-related and infrastructure improvement projects; the majority of other Capital Budget items are construction equipment needed to provide direct support to the Mainline Replacement Program. DETAILED REPORT: See draft Fiscal Year 2019 Budget. ATTACHMENT: Draft Budget – Fiscal Year 2019