Title
Proposed FY 2020 Fourth Quarter Budget Amendments
Body
Agenda of: June 24, 2020
Item No.: 2020-216
Amount: N/A
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Sue F. McCormick
Chief Executive Officer
Great Lakes Water Authority
DATE: June 24, 2020
RE: Proposed FY 2020 Fourth Quarter Budget Amendments
MOTION
Upon recommendation of Nicolette Bateson, Chief Financial Officer/Treasurer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), approves the Proposed FY 2020 Fourth Quarter Budget Amendments as presented; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
The founding legal documents for the Great Lakes Water Authority (GLWA) provide a structure for budget preparation, adoption, and amendment.
JUSTIFICATION
At the time of preparing the agenda on June 22, 2020, compiling and validating the final budget amendment report is in process. That report will be distributed on the morning of June 23, 2020. While the detailed report is in process, it should be noted that there are no surprises as the monthly Audit Committee reports proactively identify trends, areas of caution, and positive variances.
Key takeaways for the fourth quarter budget amendment process include the following.
1. The budget for both the water and sewer systems are balanced.
2. There is a local system budget shortfall in both the water and sewer systems. The impact is a reduced contribution to the improvement and extension (I&E) fund for the respective systems. Repayment of the shortfall is later credited to the respective I&E funds. This is deemed to be a COVID-19 impact.
3. Reduction of investment income of $1 million for both the water and sewer fund as reported to the Board in April 2020 as a result of market conditions. This is deemed to be a COVID-19 impact.
4. Forecasted reduction of wholesale water sales of $4.6 ...
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