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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 06/26/2024BOARD OF DIRECTORS JUNE 26, 2024 East Valley Water District was formed in 1954 and provides water and wastewater services to 107,000 residents within the cities of San Bernardino and Highland, and portions of San Bernardino County. EVWD operates under the direction of a 5­member elected Board. GOVERNING BOARD EXECUTIVE MANAGEMENT James Morales, Jr. Chairman of the Board Michael Moore General Manager/CEO Ronald L. Coats Vice­Chairman Brian W. Tompkins Chief Financial Officer Chris Carrillo Governing Board Member Jeff Noelte Director of Engineering & Operations David E. Smith Governing Board Member Kerrie Bryan Director of Administrative Services Phillip R. Goodrich Governing Board Member Patrick Milroy  Operations Manager Vacant  Water Reclamation Manager Justine Hendricksen District Clerk Board of Directors Regular Meeting June 26, 2024 ­ 5:30 PM 31111 Greenspot Road, Highland, CA 92346 www.eastvalley.org PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District’s office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District’s website at eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability­related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above agendized public meeting should be directed to the District Clerk at (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE PRESENTATIONS AND CEREMONIAL ITEMS 2024 Inland Solar Challenge San Andreas High School Student Recognition Introduction of Newly Hired Employee Cliff Ray, Storekeeper/Buyer Introduction of EVWD’s Assigned San Bernardino County Sheriff Deputy Bogdan Nastase, Deputy ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. 1.AGENDA This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. a.Approval of Agenda 2.APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a.Approve the May 15, 2024 Special Board Meeting Minutes b.Accept and File Investment Transaction Report for Month Ended May 31, 2024 c.Accept and File Financial Statements for April 2024 3.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Community Advisory Commission Appointment b.Consider approval of Amendment No. 3 ­ Reimbursement Agreement with the City of Highland for Law Enforcement Services c.Consider Adoption of Resolution 2024.10 Approving the Fiscal Year 2024­25 Operating and Capital Budgets 4.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSJUNE 26, 2024East Valley Water District was formed in 1954 and provides water and wastewater services to107,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD EXECUTIVE MANAGEMENTJames Morales, Jr.Chairman of the Board Michael MooreGeneral Manager/CEORonald L. CoatsVice­Chairman Brian W. TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsDavid E. SmithGoverning Board Member Kerrie BryanDirector of Administrative ServicesPhillip R. GoodrichGoverning Board Member Patrick Milroy Operations ManagerVacant Water Reclamation ManagerJustine Hendricksen District Clerk Board of Directors Regular Meeting June 26, 2024 ­ 5:30 PM 31111 Greenspot Road, Highland, CA 92346 www.eastvalley.org PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District’s office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District’s website at eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability­related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above agendized public meeting should be directed to the District Clerk at (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE PRESENTATIONS AND CEREMONIAL ITEMS 2024 Inland Solar Challenge San Andreas High School Student Recognition Introduction of Newly Hired Employee Cliff Ray, Storekeeper/Buyer Introduction of EVWD’s Assigned San Bernardino County Sheriff Deputy Bogdan Nastase, Deputy ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. 1.AGENDA This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. a.Approval of Agenda 2.APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a.Approve the May 15, 2024 Special Board Meeting Minutes b.Accept and File Investment Transaction Report for Month Ended May 31, 2024 c.Accept and File Financial Statements for April 2024 3.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Community Advisory Commission Appointment b.Consider approval of Amendment No. 3 ­ Reimbursement Agreement with the City of Highland for Law Enforcement Services c.Consider Adoption of Resolution 2024.10 Approving the Fiscal Year 2024­25 Operating and Capital Budgets 4.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSJUNE 26, 2024East Valley Water District was formed in 1954 and provides water and wastewater services to107,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD EXECUTIVE MANAGEMENTJames Morales, Jr.Chairman of the Board Michael MooreGeneral Manager/CEORonald L. CoatsVice­Chairman Brian W. TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsDavid E. SmithGoverning Board Member Kerrie BryanDirector of Administrative ServicesPhillip R. GoodrichGoverning Board Member Patrick Milroy Operations ManagerVacant Water Reclamation ManagerJustine HendricksenDistrict ClerkBoard of Directors Regular MeetingJune 26, 2024 ­ 5:30 PM31111 Greenspot Road, Highland, CA 92346www.eastvalley.orgPLEASE NOTE:Materials related to an item on this agenda submitted to the Board after distribution of theagenda packet are available for public inspection in the District’s office located at 31111Greenspot Rd., Highland, during normal business hours. Also, such documents are availableon the District’s website at eastvalley.org and are subject to staff’s ability to post thedocuments before the meeting.Pursuant to Government Code Section 54954.2(a), any request for a disability­relatedmodification or accommodation, including auxiliary aids or services, that is sought in orderto participate in the above agendized public meeting should be directed to the District Clerkat (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE PRESENTATIONS AND CEREMONIAL ITEMS 2024 Inland Solar Challenge San Andreas High School Student Recognition Introduction of Newly Hired Employee Cliff Ray, Storekeeper/Buyer Introduction of EVWD’s Assigned San Bernardino County Sheriff Deputy Bogdan Nastase, Deputy ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. 1.AGENDA This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. a.Approval of Agenda 2.APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a.Approve the May 15, 2024 Special Board Meeting Minutes b.Accept and File Investment Transaction Report for Month Ended May 31, 2024 c.Accept and File Financial Statements for April 2024 3.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Community Advisory Commission Appointment b.Consider approval of Amendment No. 3 ­ Reimbursement Agreement with the City of Highland for Law Enforcement Services c.Consider Adoption of Resolution 2024.10 Approving the Fiscal Year 2024­25 Operating and Capital Budgets 4.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSJUNE 26, 2024East Valley Water District was formed in 1954 and provides water and wastewater services to107,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD EXECUTIVE MANAGEMENTJames Morales, Jr.Chairman of the Board Michael MooreGeneral Manager/CEORonald L. CoatsVice­Chairman Brian W. TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsDavid E. SmithGoverning Board Member Kerrie BryanDirector of Administrative ServicesPhillip R. GoodrichGoverning Board Member Patrick Milroy Operations ManagerVacant Water Reclamation ManagerJustine HendricksenDistrict ClerkBoard of Directors Regular MeetingJune 26, 2024 ­ 5:30 PM31111 Greenspot Road, Highland, CA 92346www.eastvalley.orgPLEASE NOTE:Materials related to an item on this agenda submitted to the Board after distribution of theagenda packet are available for public inspection in the District’s office located at 31111Greenspot Rd., Highland, during normal business hours. Also, such documents are availableon the District’s website at eastvalley.org and are subject to staff’s ability to post thedocuments before the meeting.Pursuant to Government Code Section 54954.2(a), any request for a disability­relatedmodification or accommodation, including auxiliary aids or services, that is sought in orderto participate in the above agendized public meeting should be directed to the District Clerkat (909) 885­4900 at least 72 hours prior to said meeting.In order to comply with legal requirements for posting of agenda, only those items filedwith the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesdaymeeting not requiring departmental investigation, will be considered by the Board ofDirectors.CALL TO ORDERPLEDGE OF ALLEGIANCEPRESENTATIONS AND CEREMONIAL ITEMS2024 Inland Solar ChallengeSan Andreas High School Student RecognitionIntroduction of Newly Hired EmployeeCliff Ray, Storekeeper/BuyerIntroduction of EVWD’s Assigned San Bernardino County Sheriff DeputyBogdan Nastase, DeputyROLL CALL OF BOARD MEMBERSPUBLIC COMMENTSAny person wishing to speak to the Board of Directors is asked to complete a SpeakerCard and submit it to the District Clerk prior to the start of the meeting. Each speaker islimited to three (3) minutes, unless waived by the Chairman of the Board. Under the Stateof California Brown Act, the Board of Directors is prohibited from discussing or takingaction on any item not listed on the posted agenda. The matter will automatically bereferred to staff for an appropriate response or action and may appear on the agenda at afuture meeting.1.AGENDAThis agenda contains a brief general description of each item to be considered.Except as otherwise provided by law, no action shall be taken on any item notappearing on the following agenda unless the Board of Directors makes adetermination that an emergency exists or that a need to take immediate action onthe item came to the attention of the District subsequent to the posting of theagenda.a.Approval of Agenda2.APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a.Approve the May 15, 2024 Special Board Meeting Minutes b.Accept and File Investment Transaction Report for Month Ended May 31, 2024 c.Accept and File Financial Statements for April 2024 3.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Community Advisory Commission Appointment b.Consider approval of Amendment No. 3 ­ Reimbursement Agreement with the City of Highland for Law Enforcement Services c.Consider Adoption of Resolution 2024.10 Approving the Fiscal Year 2024­25 Operating and Capital Budgets 4.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN Agenda Item #2a June 26, 20241 Meeting Date: June 26, 2024 Agenda Item #2a Consent Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approve the May 15, 2024 Special Board Meeting Minutes RECOMMENDATION That the Board of Directors approve the May 15, 2024 special Board meeting minutes as submitted AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability B. Utilize Effective Communication Methods REVIEW BY OTHERS This agenda item has been reviewed by Administration. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS Draft May 15, 2024 Special Board Meeting Minutes Special Board Meeting & Public Hearing Meeting Date: May 15, 2024 CALL TO ORDER The Chairman of the Board called the meeting to order at 5:30 p.m. PLEDGE OF ALLEGIANCE Vice Chairman Coats led the flag salute. ROLL CALL OF BOARD MEMBERS PRESENT Directors: Carrillo, Coats, Goodrich, Morales, Smith ABSENT Directors: None STAFF Michael Moore, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Kerrie Bryan, Director of Administrative Services; Rudy Guerrero, Finance Supervisor; Ryan Ritualo, Information Technology Manager; Christi Koide, Business Services Coordinator; Shayla Antrim, Administrative Specialist LEGAL COUNSEL Jean Cihigoyenetche GUESTS Members of the public PUBLIC COMMENTS Chairman Morales declared the public participation section of the meeting open at 5:32 p.m. Mr. Toovey made a public comment regarding the effectiveness of the Weaver Basins as a component of the Sterling Natural Resource Center. Draft pending approval 1 6 6 7 Mr. Serrano made a public comment regarding IB Consulting’s rate study. There being no further written or verbal comments, the public participation section was closed at 5:39 p.m. DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Adoption of Resolution 2024.08 – Updating Water and Wastewater Rates and Charges, Capacity Fees, and Certain Miscellaneous Fees, Public Hearing The General Manager/CEO provided information relating to the District’s water and wastewater rate study. He discussed considerations taken into formulating rates and how revenue will be utilized. The Chief Financial Officer presented the proposed water and wastewater rate increases. He discussed Proposition 218 requirements and the steps that the District took to comply with them. He also discussed details of IB Consulting, their experience and qualifications, and the District’s selection process for their firm. Mr. Habib Issac of IB Consulting provided additional information regarding his firm's cost-of-service analysis. The Chief Financial Officer provided information regarding updates to certain miscellaneous fees paid by commercial customers for the inspection of backflow devices and for pretreatment inspection and monitoring. The Chief Financial Officer stated the next steps for the public hearing is for the Board to consider adopting the rates. Legal Counsel provided an outline of the guidelines for the public hearing and Prop 218 rules and requirements. He provided history and details of Prop 218, and how it relates to the California Constitution and how it applies to rate increase being proposed. Chairman Morales declared the public hearing open at 6:21 p.m. Oral testimony was received as follows: Ms. Anna Canton expressed her opposition to the rate increase, stating that the word "increase" has become a negative term for the residents, as they are seeing everything around them being affected by increases. She indicated her intention to formally protest the increase and wanted to take the time to express her thoughts on the matter as a resident of East Valley, East Highlands Ranch. Mr. Mark Falcone wanted to take the time to acknowledge that the staff has done its due diligence and executed well, along with Michael Moore and the Board, in mitigating the financial impact that the proposed rate increase would have on ratepayers. In his opinion, a 6.7% increase each year for the next three years is acceptable, considering 1 6 6 7 that all of us have experienced double-digit percentage increases in the costs of goods and services across all spectrums of the marketplace in the economy in the last several years. Mr. Falcone is in favor of the rate increase. Mr. Anthony Serrano stated that he has lived in the District for 34 years and tries to be active. He raised two main issues: 1. Concerning the capital costs of the Sterling Natural Resource Center, as detailed on page 88 of the consultants' report, there is a debt service of $7.8 million dollars per year. However, there is insufficient information provided. Resolution 2022.08 indicates a reasonably expected maximum amount of construction funds of $175 million and a reasonably expected max principal of $168 million. Based on these figures, it is difficult to understand how $7.8 million dollars per year relates to rates. Mr. Serrano submitted a document and referenced Michael Moore’s response letter dated May 14, in which the General Manager/CEO stated that he does not need to provide information, such as amortization schedules or details on the loan. 2. The second issue concerns the San Manuel Band of Mission Indians (SMBMI), mentioned on the second page of his public records request and Exhibit 13. Mr. Serrano's May 12th letter discusses a partnership between EVWD and the SMBMI which the Board has never notified the ratepayers about. Records from EVWD indicate that they are providing water to the SMBMI. None of this has been disclosed to the ratepayers. Mr. Serrano submitted a protest requesting a rescheduling of the hearing so that his public records request could be addressed, and ratepayers could be informed about any contracts with SMBMI. Chairman Morales declared the public hearing closed at 6:30 p.m. Comments were received from the Board. The Administrative Specialist announced that the District has identified 31,689 parcels, a majority of the identified parcels would equal 15,846. That the District received six written protests. That a majority protest does not exist and the Board of Directors may consider the adoption of Resolution 2024.08. A motion was made by Director Goodrich, seconded by Vice Chairman Coats, that the Board adopt Resolution 2024.08, updating the Schedule of Water and Wastewater Rates and Charges as submitted. The motion was carried by the following roll call vote: Ayes: Goodrich, Coats, Carrillo, Smith, Morales Noes: None Absent: None 1 6 6 7 REPORTS a.General Manager/CEO Report The General Manager/CEO emphasized the District's commitment to responsibly setting rates to protect our customers' funds. He announced that the fiscal year 2024/25 Budget will be presented at the June 12 Board meeting, showcasing how the District is utilizing external funding sources to mitigate costs. The upcoming budget presentation will provide further details on safeguarding the budget. Ensuring clean and safe drinking water remains the District's top priority. The General Manager/CEO thanked the Community Advisory Committee and the Board for their valuable input and support. For information only. b.Legal Counsel Report No report at this time. c.Board of Directors’ Comments Chairman Morales expressed his gratitude to everyone for attending and encouraged the public to sign up for notifications regarding posted agendas. He also requested their continued participation and engagement. He emphasized the importance of staying informed about upcoming state legislative changes by reading the agenda for more details. For information only. ADJOURN Chairman Morales adjourned the meeting at 6:41 p.m. James Morales, Jr., Board President Michael Moore, Secretary Agenda Item #2b June 26, 20241 Meeting Date: June 26, 2024 Agenda Item #2b Consent Item 1 1 1 6 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Accept and File Investment Transaction Report for Month Ended May 31, 2024 RECOMMENDATION That the Board of Directors accept and file the attached Investment Transaction Report for the month ended May 31, 2024. BACKGROUND / ANALYSIS California Government Code §53607 requires the CFO/Treasurer of a public agency to submit a monthly investment transaction report to the Board of Directors (Board) when the Board has delegated to the CFO/Treasurer the authority to invest, reinvest, sell, or exchange securities held in the Agency’s investment portfolio. During May the District maintained a balance of $19,345,392 in funds invested with LAIF. There were no deposits or withdrawals. Investments held in the District’s U.S. Bank Custodial Account totaled $16,116,409 at the beginning of May. Earnings added $26,978 to the account, while fees reduced the balance by $1,000. In addition, amortization of premiums and accretion of discounts on several different securities added $116 to the adjusted cost basis for the investments, resulting in an account balance at the end of May of $16,142,503. This balance is split between a mutual fund ($599,108) and federal securities shown on the attached schedule with a total balance of $15,543,395. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department. Agenda Item #2b June 26, 20242 Meeting Date: June 26, 2024 Agenda Item #2b Consent Item 1 1 1 6 FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS 1. Investment Transaction Report for Month Ended May 31 2024 2. LAIF Statement for May 2024 EAST VALLEY WATER DISTRICT Investment Activity Month Ended April 30, 2024 Activity (Book Value) Purch Date Units / Face Value Maturity Date Amort Cost Adjustment Adjusted Cost 5/1/2024 Matured / Called Adjusted Cost 5/31/2024 Market ValueIssuerCUSIPYield5/1/2024 Purchases Total Water Sewer 10/18/21 03/31/21 12/08/23 12/26/23 12/27/23 04/22/24 US Treasury Note US Treasury Note US Treasury Note US Treasury Note US Treasury Note US Treasury Note 91282CAZ4 91282CBT7 91282CJL6 91282CJS1 91282CJP7 91282CJC6 880591ER9 91282CFG1 91282CGX3 91282CKH3 91282CJE2 91282CKJ9 3130AJUN7 3134GWMY9 3130APAZ8 3130ALUF9 3130ALPB4 3130ALU93 3130AP6M2 3130AWLY4 3130AYBS4 3130AYB39 3130AKC95 3130APJ55 3130APLB9 3130AYZV1 3130APUY9 3130AQ2H5 3130B0SH3 3130B0SU4 3130B0SP5 3130B0UQ0 3130B0YF0 3130B13F2 3133ENEM8 3133EPT21 3130AY5A0 3130AY5Z5 3130AY7M2 3135GAQM6 3134H1YX5 3134H1E41 0.375% 0.750% 4.875% 4.250% 4.375% 4.625% 2.875% 3.250% 3.875% 4.500% 5.000% 4.500% 0.550% 0.625% 1.030% 1.000% 0.800% 0.750% 1.020% 5.125% 5.000% 5.400% 0.550% 1.250% 0.850% 5.060% 1.000% 1.050% 5.080% 5.150% 5.250% 5.000% 5.250% 4.910% 1.430% 4.625% 5.140% 5.000% 5.000% 5.150% 5.050% 5.300% 500,000 11/30/25 03/31/26 05/31/24 12/31/25 12/15/26 10/15/26 09/15/24 08/31/24 04/30/25 03/31/26 10/31/25 04/15/27 07/30/24 08/19/25 09/30/26 03/30/26 05/30/25 06/30/25 09/30/26 06/13/25 06/26/25 12/22/25 10/29/25 10/26/26 10/28/24 02/13/26 02/28/25 11/25/24 04/09/26 01/09/26 01/08/27 04/15/27 04/22/26 11/27/26 11/23/26 01/27/25 12/18/25 12/18/26 12/18/26 03/26/27 03/26/26 10/08/27 496,915.99 498,086.80 501,062.77 499,696.75 605,828.49 198,928.72 300,594.08 299,937.98 298,925.83 498,168.89 399,829.47 794,488.54 249,995.62 100,000.00 200,000.00 300,000.00 300,000.00 200,000.00 400,000.00 402,874.68 500,000.00 500,000.00 199,190.98 299,998.33 100,000.00 200,000.00 200,000.00 99,996.95 500,000.00 500,000.00 500,000.00 500,000.00 300,000.00 450,436.08 200,000.00 399,758.22 300,000.00 500,000.00 300,000.00 500,000.00 448,563.43 500,000.00 164.40 497,080.39 498,152.52 501,026.22 499,720.31 605,663.66 198,957.29 300,457.13 299,946.97 299,006.39 498,234.80 399,829.47 794,612.12 249,996.99 100,000.00 200,000.00 300,000.00 300,000.00 200,000.00 400,000.00 402,676.71 500,000.00 500,000.00 199,235.68 299,998.33 100,000.00 200,000.00 200,000.00 99,997.44 500,000.00 500,000.00 500,000.00 500,000.00 300,000.00 450,405.35 200,000.00 399,785.85 300,000.00 500,000.00 300,000.00 500,000.00 448,611.18 500,000.00 497,080.39 498,152.52 501,026.22 499,720.31 605,663.66 198,957.29 300,457.13 299,946.97 299,006.39 498,234.80 399,829.47 794,612.12 249,996.99 100,000.00 200,000.00 300,000.00 300,000.00 200,000.00 400,000.00 402,676.71 500,000.00 500,000.00 199,235.68 299,998.33 100,000.00 200,000.00 200,000.00 99,997.44 500,000.00 500,000.00 500,000.00 500,000.00 300,000.00 450,405.35 200,000.00 399,785.85 300,000.00 500,000.00 300,000.00 500,000.00 448,611.18 500,000.00 497,080.39 498,152.52 501,026.22 499,720.31 605,663.66 198,957.29 300,457.13 299,946.97 299,006.39 464,140.00 461,155.00 497,890.00 492,990.00 591,912.00 198,468.00 297,096.00 297,903.00 295,998.00 494,980.00 399,064.00 791,872.00 247,037.50 94,352.00 181,308.00 277,338.00 286,689.00 190,330.00 362,528.00 399,600.00 498,755.00 499,800.00 186,656.00 272,700.00 97,914.00 500,000 500,000 500,000 600,000 200,000 300,000 300,000 300,000 500,000 400,000 800,000 250,000 100,000 200,000 300,000 300,000 200,000 400,000 400,000 500,000 500,000 200,000 300,000 100,000 200,000 200,000 100,000 500,000 500,000 500,000 500,000 300,000 450,000 200,000 400,000 300,000 500,000 300,000 500,000 450,000 500,000 65.72 (36.55) 23.56 (164.83) 28.57 (136.95) 8.99 80.56 01 & 05/20 Tenn Valley Authority 08/19/20 05/19/23 04/05/24 04/10/24 US Treasury N/B US Treasury Note US Treasury Note US Treasury Note 65.91 498,234.80 200,000.00 399,829.47 794,612.12 249,996.99 100,000.00 4/10 & 4/11 US Treasury Note Federal Home Loan Bank 123.58 1.3707/30/20 08/05/20 09/23/21 03/25/21 03/25/21 03/29/21 09/17/21 12/27/23 12/26/23 12/27/23 10/15/21 10/15/21 10/28/21 02/14/24 11/10/21 11/29/21 04/05/24 04/09/24 04/09/24 04/10/24 04/16/24 04/22/24 11/17/21 12/27/23 12/12/23 12/14/23 12/18/23 03/26/24 04/11/24 04/15/24 FHLMC MTN Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank Federal Farm Credit Bank Federal Farm Credit Bank Federal Home Loan Bank Federal Home Loan Bank Federal Home Loan Bank FNMA 300,000.00 300,000.00 200,000.00 400,000.00 402,676.71 500,000.00 500,000.00 (197.97) 44.70 199,235.68 299,998.33 100,000.00 200,000.00 200,000.00 99,997.44 199,160.00 193,126.00 97,696.000.49 500,000.00 500,000.00 500,000.00 500,000.00 300,000.00 450,405.35 200,000.00 498,890.00 498,585.00 498,835.00 497,840.00 298,806.00 449,392.50 182,408.00 398,220.00 298,191.00 496,115.00 297,645.00 496,185.00 447,759.00 498,170.00 (30.73) 27.63 399,785.85 300,000.00 300,000.00 500,000.00 500,000.00 448,611.18 500,000.00 FHLMC MTN FHLMC MTN 47.75 15,550,000.00 15,543,278.60 116.20 15,543,394.80 --15,543,394.80 13,346,142.70 2,197,252.10 15,225,499.00 Attachment A Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 June 12, 2024 LAIF Home PMIA Average Monthly Yields EAST VALLEY WATER DISTRICT CHIEF FINANCIAL OFFICER P.O. BOX 3427 SAN BERNARDINO, CA 92413 Tran Type Definitions 0.00 Beginning Balance:19,345,392.40 Account Number: XX-XX-XXX May 2024 Statement Account Summary Total Deposit: Total Withdrawal:0.00 Ending Balance:19,345,392.40 Agenda Item #2c June 26, 20241 Meeting Date: June 26, 2024 Agenda Item #2c Consent Item 1 1 1 8 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Accept and File Financial Statements for April 2024 RECOMMENDATION That the Board of Directors accept and file the attached financial statements as of, and for the period ended, April 30, 2024. BACKGROUND / ANALYSIS The East Valley Water District adopted an annual budget on June 28, 2023 for fiscal year 2023-24. In accordance with District Administrative Policy 7.7, the Chief Financial Officer provides regular budget updates to the Board of Directors (Board). Included herewith for the Board’s review is a summary of the District’s financial results, as of April 31, 2024. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer Agenda Item #2c June 26, 20242 Meeting Date: June 26, 2024 Agenda Item #2c Consent Item 1 1 1 8 ATTACHMENTS 1. April 2024 Financial Statement Monthly Review 2. April 2024 Financial Statements FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING APRIL 30, 2024 page | 1 The following is a highlight summary of the District’s financial results as of April 30, 2024. Please note all values presented are in millions (unless otherwise noted). Statement of Net Position Total assets at April 30, 2024 are $391.57 million. CLASSIFICATION WATER WASTEWATER RECLAMATION DISTRICT TOTAL Cash and Investments $ 21.51 $ 10.63 $ 8.80 $ 40.94 Utility Plant, Net 100.77 17.00 - 117.77 Other Assets 38.15 24.31 170.40 232.86 Current Liabilities 2.41 3.18 12.62 18.21 Long Term Liabilities 43.42 8.11 163.15 214.68 Beginning Net Position 105.34 38.68 3.01 147.03 Change in Equity 7.68 1.63 0.42 9.73 TOTAL NET $ 113.02 $ 40.31 $ 3.43 $ 156.76 Cash and Investments Cash and Investments are $40.94 million for the month of April, an increase of $1.97 million from the prior month. In April the District paid $378K for construction of the recycled water pipeline in March 2024 and also received over $1M in reimbursements. The District’s Due from Other Governments includes a receivable for work performed on the Recycled Water Pipeline from March and Weaver Basin Recharge from January through March bringing the ending balance as of April 30, 2024 to $2.78 million. $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 Mi l l i o n s CASH & INVESTMENTS Restricted Unrestricted FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING APRIL 30, 2024 page | 2 Statement of Revenues & Expenses Total Revenues & Expenses through April 30, 2024 are summarized below (in millions): Column1 WATER WASTEWATER RECLAMATION DISTRICT TOTAL Revenue $ 24.81 $ 5.59 $ 9.26 $ 39.66 Expense 17.12 3.97 8.84 29.93 The Reclamation Fund expenses continue to exceed revenues as the SNRC facility has recently started operations, but has only fully transitioned flow away from San Bernardino Municipal Water Department in late March 2024. The final Contract Services expense for Treatment payment to San Bernardino Municipal Water Department was made in April. The District is incurring Contract Service expenses for Treatment as well as plant expenses such as Salaries and Benefits, Uti lities, Materials and Supplies but has yet to begin collecting any offsetting revenues anticipated from operation such as Tipping Fees, etc. Water Sales by Tier Water Sales for the month ending April 30, 2024 were $919K; $80K under staff projections for the month and $885K under projections year-to-date. $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 Mi l l i o n s WATER SALES BY TIER Tier 1 Tier 2 Tier 3 FY 2023-24 Projection For a more detailed presentation, operating results are presented in three ways on pages 2 through 6 of the attached financial statements for the period ending April 30, 2024. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING APRIL 30, 2024 page | 3 First is a one-page summary with monthly and year-to-date totals for revenue and expenses, presented by Expense Category. Second is a one-page summary with monthly and year-to-date totals for Revenues and Expense by Program. Third is a Budget -to- Actual presentation of program expense detail. Water Sales by Customer Class The table below shows the District’s water sales for the month of April 2024 by customer class. The following icons are to compliment the graph below: positive change, no change, negative change when comparing actuals versus projections. CUSTOMER CLASS ACTUAL PROJECTION $ VARIANCE % VARIANCE Residential 519,982$ 559,000$ (39,018)$ -7% Multi-Family 217,622 254,000 (36,378) -14% Commercial 97,291 116,000 (18,709) -16% Irrigation 83,750 70,000 13,750 20% TOTAL $ 918,645 $ 999,000 $ (80,355)-8% The following table displays customer class by tier for the month of March 2024: CUSTOMER CLASS TIER ACTUAL PROJECTION $ VARIANCE % VARIANCE Residential Tier 1 307,326$ 420,000$ (112,674)$ -27% Residential Tier 2 145,452 89,000 56,452 63% Residential Tier 3 67,204 50,000 17,204 34% Multi-Family Tier 1 135,766 203,000 (67,234) -33% Multi-Family Tier 2 39,007 30,000 9,007 30% Multi-Family Tier 3 42,849 21,000 21,849 104% Commercial Tier 1 65,243 70,000 (4,757) -7% Commercial Tier 2 6,291 8,000 (1,709) -21% Commercial Tier 3 25,757 38,000 (12,243) -32% Irrigation Tier 2 40,395 37,000 3,395 9% Irrigation Tier 3 43,355 33,000 10,355 31% TOTAL $ 918,645 $ 999,000 $ (80,355)-8% Legend - Positive Change in Actuals - Neutral Change in Actuals - Negative Change in Actuals FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING APRIL 30, 2024 page | 4 The chart below is a comparative illustration of Water Revenue year -to-date compared to last year’s Water Revenue year-to-date as of April. As noted in the graph, Water Revenue experienced a minor increase over last year mostly due to residential meter charges. Water consumption decreased 111.01 million gallons (148.4K HCF) compared to April of 2023 but water sales were up $106K for all three tiers combined. $0 $5 $10 $15 $20 $25 4/30/2023 4/30/2024 Mi l l i o n s COMPARATIVE MONTHLY WATER REVENUE (WATER SALES & METER CHARGES) Meter Tier 1 Tier 2 Tier 3 Total -$22,477,036 Total -$22,839,193 FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING APRIL 30, 2024 page | 5 Water Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Water Fund operating cost centers for FY 2022-23 and FY 2023-24. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING APRIL 30, 2024 page | 6 Wastewater Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Wastewater Fund operating cost centers for FY 2022-23 and FY 2023-24. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING APRIL 30, 2024 page | 7 Water Reclamation Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Water Reclamation Fund operating cost centers for FY 2022-23 and FY 2023-24. WATER WASTEWATER RECLAMATION DISTRICT TOTAL Assets: Current Assets: 01 Cash and Cash Equivalents 6,729,059.92$ 5,629,363.87$ 1,002,516.93$ 13,360,940.72$ 02 Investments 7,966,899.26 1,616,255.46 - 9,583,154.72 03 Accounts Receivable, Net 3,851,904.09 311,471.60 548,409.10 4,711,784.79 14*05 Other Receivables 8,711,814.22 - - 8,711,814.22 07. Due from Reclamation Fund - 4,133,715.17 - 4,133,715.17 06 Due from Other Governments - - 2,780,644.48 2,780,644.48 08 Inventory 1,192,533.53 6,721.16 - 1,199,254.69 09 Prepaid Expenses 743,675.96 41,405.80 - 785,081.76 29,195,886.98 11,738,933.06 4,331,570.51 45,266,390.55 Non-Current Assets: 10 Restricted Cash and Cash Equivalents 6,814,404.81 3,379,934.17 7,800,000.00 17,994,338.98 11 Capital Assets not being Depreciated 18,117,764.02 17,995,394.14 167,071,475.89 203,184,634.05 13 Capital Assets, Net 100,769,578.86 16,997,047.78 - 117,766,626.64 125,701,747.69 38,372,376.09 174,871,475.89 338,945,599.67 Total Assets:154,897,634.67 50,111,309.15 179,203,046.40 384,211,990.22 Deferred Outflow Of Resources 24*Deferred Charge on Refunding 581,826.53 272,820.05 - 854,646.58 25 Deferred Outflows - Pensions 4,954,821.80 1,546,575.07 - 6,501,396.87 160,434,283.00 51,930,704.27 179,203,046.40 391,568,033.67 Current Liabilities: 22 Accounts Payable and Accrued Expenses - 29,842.00 - 29,842.00 29. Due to Sewer Fund - - 4,133,715.17 4,133,715.17 23 Accrued Payroll and Benefits 3,311.06 - - 3,311.06 15 Customer Service Deposits 1,436,631.75 - - 1,436,631.75 16 Construction Advances and Retentions 119,524.14 3,010,696.98 8,424,576.48 11,554,797.60 17 Accrued Interest Payable - - - - 18 Current Portion of Compensated Absences 449,527.20 137,616.80 65,033.00 652,177.00 19 Current Portion of Long-Term Debt 396,500.28 - - 396,500.28 2,405,494.43 3,178,155.78 12,623,324.65 18,206,974.86 Non-Current Liabilities: 20 Compensated Absences, less current portion 224,953.73 53,555.35 53,499.48 332,008.56 28 Net Pension Liability 10,600,994.28 3,254,141.95 - 13,855,136.23 21 Long Term Debt, Less Current Portion 32,589,187.50 4,800,908.00 163,097,574.00 200,487,669.50 27 Other Liabilities 1,173.64 - - 1,173.64 43,416,309.15 8,108,605.30 163,151,073.48 214,675,987.93 Total Liabilities:45,821,803.58 11,286,761.08 175,774,398.13 232,882,962.79 Deferred Inflows Of Resources 26 Deferred Inflows - Pensions 1,589,671.06 336,902.07 - 1,926,573.13 47,411,474.64 11,623,663.15 175,774,398.13 234,809,535.92 31 Equity 105,340,469.37 38,679,547.28 3,008,522.25 147,028,538.90 105,340,469.37 38,679,547.28 3,008,522.25 147,028,538.90 Tot Total Revenue 24,805,269.57 5,593,059.02 9,259,848.94 39,658,177.53 Tot Total Expense 17,122,930.58 3,965,565.18 8,839,722.92 29,928,218.68 7,682,338.99 1,627,493.84 420,126.02 9,729,958.85 113,022,808.36 40,307,041.12 3,428,648.27 156,758,497.75 160,434,283.00$ 51,930,704.27$ 179,203,046.40$ 391,568,033.67$ Unaudited As of April 30, 2024 Combining Schedule of Net Position Total Equity and Current Surplus (Deficit): Total Assets and Deferred Outflows of Resources: Total Current Assets: Total Non-Current Assets: Total Liabilities, Equity and Current Surplus (Deficit): Total Beginning Equity: Equity: Revenues Over/Under Expenses Total Current Liabilities: Total Liabilities and Deferred Inflows of Resources: Total Non-Current Liabilities: Page 1 of 6 AMENDED AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 918,644.16$ 14,429,519.98$ 17,695,000.00$ -$ -$ -$ -$ -$ 332,000.00$ 18,027,000.00$ 3,597,480.02$ 42 Meter Charges 859,533.90 8,410,180.43 10,096,000.00 - - - - - - 10,096,000.00 1,685,819.57 43 Penalties 53,535.64 484,342.22 450,000.00 5,851.70 51,377.34 60,000.00 - - - 510,000.00 (25,719.56) 44 Wastewater System Charges - - - 519,253.46 4,987,053.77 5,968,000.00 - - - 5,968,000.00 980,946.23 45 Wastewater Treatment Charges - - - - - - 897,844.31 8,784,605.65 10,379,000.00 10,379,000.00 1,594,394.35 46 Other Operating Revenue 301,309.06 1,192,287.42 42,000.00 (192,500.94) 364,151.18 - 333,723.50 391,378.50 500,000.00 542,000.00 (1,405,817.10) 47 Non Operating Revenue 129,718.01 288,939.52 420,000.00 44,969.58 190,476.73 20,000.00 32,802.75 83,864.79 100,000.00 540,000.00 (23,281.04) 48 Gain or Loss on Disposition - - - - - - - - - - - 56 Benefits - - - - - - - - - - - 68 Depreciation - - - - - - - - - - - Revenue Total:2,262,740.77 24,805,269.57 28,703,000.00 377,573.80 5,593,059.02 6,048,000.00 1,264,370.56 9,259,848.94 11,311,000.00 46,062,000.00 6,403,822.47 - - - - - - - - Expense by Category 51 Labor 435,169.50 4,486,049.06 5,725,500.00 118,596.41 1,252,821.25 1,638,500.00 60,439.72 606,748.59 750,000.00 8,114,000.00 1,768,381.10 52 Temporary Labor 1,058.40 15,089.82 32,900.00 453.60 6,467.06 14,100.00 - - - 47,000.00 25,443.12 56 Benefits 152,410.29 2,303,007.38 2,940,400.00 38,051.35 571,967.83 768,600.00 21,432.51 307,828.13 404,000.00 4,113,000.00 930,196.66 63 Contract Services 381,278.49 3,541,193.47 5,254,400.00 103,663.55 1,174,621.23 1,632,600.00 42,325.32 6,391,736.33 7,346,000.00 14,233,000.00 3,125,448.97 65 Professional Development 270.07 180,262.26 309,000.00 81.00 56,035.06 112,000.00 - 7,879.57 20,000.00 441,000.00 196,823.11 53 Overtime 35,419.87 436,129.53 473,800.00 1,582.93 20,842.86 27,200.00 32,437.53 108,185.37 50,000.00 551,000.00 (14,157.76) 62 Materials and Supplies 68,405.80 1,368,598.39 1,617,600.00 7,196.06 127,089.72 155,400.00 28,233.30 192,454.99 618,000.00 2,391,000.00 702,856.90 64 Utilities 75,555.76 2,444,057.57 4,043,600.00 19,288.89 162,500.90 254,400.00 177,368.80 540,386.22 1,538,000.00 5,836,000.00 2,689,055.31 52 Temporary Labor 1,058.40 15,089.82 32,900.00 453.60 6,467.06 14,100.00 - - - 47,000.00 25,443.12 67 Other 22,314.56 1,264,536.50 1,263,900.00 4,488.83 369,392.69 341,100.00 2,390.45 604,449.52 380,000.00 1,985,000.00 (253,378.71) 54 Standby 7,407.76 74,528.00 33,000.00 171.42 2,489.76 2,000.00 40.00 120.00 55,000.00 90,000.00 12,862.24 61 Water Supply - 410,657.61 768,000.00 - - - - - - 768,000.00 357,342.39 71 Debt Service - 1,912,356.24 3,103,000.00 - 224,421.50 273,000.00 - - - 3,376,000.00 1,239,222.26 81 Capital Improvement 92,928.37 881,230.82 2,695,000.00 - - 300,000.00 - - - 2,995,000.00 2,113,769.18 82 Capital Outlay 17,423.44 330,025.50 670,000.00 2,002.50 190,159.01 285,000.00 - 79,934.20 150,000.00 1,105,000.00 504,881.29 83 Accounting Income Add back (92,928.37) (2,539,881.39) - - (199,710.75) - - - - - 2,739,592.14 88 Transfer to Reserves - - (260,000.00) - - 230,000.00 - - - (30,000.00) (30,000.00) 99 Transfer from Reserves - - - - - - - - - - - Expense Total:1,197,772.34 17,122,930.58 28,703,000.00 296,030.14 3,965,565.18 6,048,000.00 364,667.63 8,839,722.92 11,311,000.00 46,062,000.00 16,133,781.32 Total Surplus (Deficit):1,064,968.43$ 7,682,338.99$ -$ 81,543.66$ 1,627,493.84$ -$ 899,702.93$ 420,126.02$ -$ -$ (9,729,958.85)$ Unaudited Revenue and Expense Budget-to-Actual by Category Month Ended April 30, 2024 WATER WASTEWATER DISTRICT WIDERECLAMATION Page 2 of 6 AMENDED AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 918,644.16$ 14,429,519.98$ 17,695,000.00$ -$ -$ -$ -$ -$ 332,000.00$ 18,027,000.00$ 3,597,480.02$ 42 Meter Charges 859,533.90 8,410,180.43 10,096,000.00 - - - - - - 10,096,000.00 1,685,819.57 43 Penalties 53,535.64 484,342.22 450,000.00 5,851.70 51,377.34 60,000.00 - - - 510,000.00 (25,719.56) 44 Wastewater System Charges - - - 519,253.46 4,987,053.77 5,968,000.00 - - - 5,968,000.00 980,946.23 45 Wastewater Treatment Charges - - - - - - 897,844.31 8,784,605.65 10,379,000.00 10,379,000.00 1,594,394.35 46 Other Operating Revenue 301,309.06 1,192,287.42 42,000.00 (192,500.94) 364,151.18 - 333,723.50 391,378.50 500,000.00 542,000.00 (1,405,817.10) 47 Non Operating Revenue 129,718.01 288,939.52 420,000.00 44,969.58 190,476.73 20,000.00 32,802.75 83,864.79 100,000.00 540,000.00 (23,281.04) Revenue Total:2,262,740.77 24,805,269.57 28,703,000.00 377,573.80 5,593,059.02 6,048,000.00 1,264,370.56 9,259,848.94 11,311,000.00 46,062,000.00 6,403,822.47 Progra 1000 - Governing Board 14,868.32 176,797.77 251,300.00 6,337.37 73,259.00 107,700.00 - - - 359,000.00 108,943.23 Progra 2000 - General Administration 59,215.14 707,621.13 959,000.00 24,322.35 292,885.47 411,000.00 - - - 1,370,000.00 369,493.40 Progra 2100 - Human Resources 42,165.11 1,674,214.38 1,722,900.00 17,387.64 542,035.73 568,100.00 2,390.45 604,449.52 380,000.00 2,671,000.00 (149,699.63) Progra 2200 - Public Affairs 73,657.03 587,175.92 868,000.00 33,772.73 308,718.15 372,000.00 - - - 1,240,000.00 344,105.93 Progra 2300 - Conservation 23,635.82 102,585.98 615,000.00 - - - - - - 615,000.00 512,414.02 Progra 3000 - Finance & Accounting 46,196.47 621,693.12 900,800.00 19,779.01 266,511.59 403,200.00 - - - 1,304,000.00 415,795.29 Progra 3200 - Information Technology 83,983.48 789,489.06 1,114,400.00 35,992.93 338,312.62 477,600.00 - - - 1,592,000.00 464,198.32 Progra 3300 - Customer Service 143,113.20 1,187,123.44 1,424,100.00 59,784.79 503,722.32 623,900.00 - - - 2,048,000.00 357,154.24 Progra 3400 - Meter Services 18,250.23 207,171.01 292,000.00 - - - - - - 292,000.00 84,828.99 Progra 4000 - Engineering 45,303.93 575,009.49 908,600.00 18,700.95 201,404.02 389,400.00 - - - 1,298,000.00 521,586.49 Progra 5000 - Water Production 139,104.89 3,635,444.94 5,942,000.00 - - - - - - 5,942,000.00 2,306,555.06 Progra 5100 - Water Treatment 138,205.57 1,212,533.58 1,275,000.00 - - - - - - 1,275,000.00 62,466.42 Progra 5200 - Water Quality 38,198.19 327,783.14 504,000.00 - - - - - - 504,000.00 176,216.86 Progra 6000 - Maintenance Administration 24,443.92 357,031.62 418,500.00 2,608.10 37,833.52 46,500.00 - - - 465,000.00 70,134.86 Progra 6100 - Water Maintenance 157,350.18 2,606,487.38 3,246,000.00 - - - - - - 3,246,000.00 639,512.62 Progra 6200 - Wastewater Collection - - - 32,625.66 557,270.51 801,000.00 - - - 801,000.00 243,729.49 Progra 6300 - Water Reclamation - - - - - - 361,871.96 8,155,285.99 10,781,000.00 10,781,000.00 2,625,714.01 Progra 7000 - Facilities Maintenance 77,241.96 1,248,846.39 1,445,400.00 28,862.24 520,686.95 607,600.00 405.22 53.21 - 2,053,000.00 283,413.45 Progra 7100 - Fleet Maintenance 55,415.46 522,191.06 608,000.00 13,853.87 108,055.54 152,000.00 - - - 760,000.00 129,753.40 Progra 8000 - Capital 17,423.44 583,731.17 6,208,000.00 2,002.50 214,869.76 1,088,000.00 - 79,934.20 150,000.00 7,446,000.00 6,567,464.87 Total Surplus (Deficit):1,064,968.43$ 7,682,338.99$ -$ 81,543.66$ 1,627,493.84$ -$ 899,702.93$ 420,126.02$ -$ -$ (9,729,958.85)$ . WATER WASTEWATER DISTRICT WIDE Revenue and Expense Budget-to-Actual by Program Month Ended April 30, 2024 Unaudited RECLAMATION Page 3 of 6 AMENDED AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 918,644.16$ 14,429,519.98$ 17,695,000.00$ -$ -$ -$ -$ -$ 332,000.00$ 18,027,000.00$ 3,597,480.02$ 42 Meter Charges 859,533.90 8,410,180.43 10,096,000.00 - - - - - - 10,096,000.00 1,685,819.57 43 Penalties 53,535.64 484,342.22 450,000.00 5,851.70 51,377.34 60,000.00 - - - 510,000.00 (25,719.56) 44 Wastewater System Charges - - - 519,253.46 4,987,053.77 5,968,000.00 - - - 5,968,000.00 980,946.23 45 Wastewater Treatment Charges - - - - - - 897,844.31 8,784,605.65 10,379,000.00 10,379,000.00 1,594,394.35 46 Other Operating Revenue 301,309.06 1,192,287.42 42,000.00 (192,500.94) 364,151.18 - 333,723.50 391,378.50 500,000.00 542,000.00 (1,405,817.10) 47 Non Operating Revenue 129,718.01 288,939.52 420,000.00 44,969.58 190,476.73 20,000.00 32,802.75 83,864.79 100,000.00 540,000.00 (23,281.04) 48 Gain or Loss on Disposition - - - - - - - - - - - 56 Benefits - - - - - - - - - - - 68 Depreciation - - - - - - - - - - - Revenue Total:2,262,740.77 24,805,269.57 28,703,000.00 377,573.80 5,593,059.02 6,048,000.00 1,264,370.56 9,259,848.94 11,311,000.00 46,062,000.00 6,403,822.47 - - - - - - - - Program: 1000 - Governing Board - - - - - 51 Labor 10,351.84$ 70,887.05$ 84,000.00$ 4,436.50$ 30,380.04$ 36,000.00$ -$ -$ -$ 120,000.00$ 18,732.91$ 56 Benefits 4,277.91 38,077.17 63,000.00 1,833.37 16,318.65 27,000.00 - - - 90,000.00 35,604.18 62 Materials and Supplies - 968.10 2,100.00 - 414.89 900.00 - - - 3,000.00 1,617.01 63 Contract Services - 49,105.63 77,700.00 - 21,045.27 33,300.00 - - - 111,000.00 40,849.10 65 Professional Development 238.57 17,759.82 24,500.00 67.50 5,100.15 10,500.00 - - - 35,000.00 12,140.03 Program: 1000 - Governing Board Total:14,868.32 176,797.77 251,300.00 6,337.37 73,259.00 107,700.00 - - - 359,000.00 108,943.23 - - - - - - Program: 2000 - General Administration - - - - - 51 Labor 30,183.17 334,658.86 407,400.00 12,935.63 144,061.88 174,600.00 - - - 582,000.00 103,279.26 52 Temporary Labor - 3,661.62 21,000.00 - 1,569.26 9,000.00 - - - 30,000.00 24,769.12 53 Overtime 250.63 2,319.59 2,800.00 107.42 994.17 1,200.00 - - - 4,000.00 686.24 56 Benefits 11,361.27 153,591.46 184,800.00 3,813.55 57,124.97 79,200.00 - - - 264,000.00 53,283.57 62 Materials and Supplies 100.55 1,564.94 4,900.00 43.10 670.71 2,100.00 - - - 7,000.00 4,764.35 63 Contract Services 17,170.65 138,677.71 217,000.00 7,358.85 59,433.28 93,000.00 - - - 310,000.00 111,889.01 64 Utilities 117.37 1,063.01 2,800.00 50.30 455.57 1,200.00 - - - 4,000.00 2,481.42 65 Professional Development 31.50 72,083.94 118,300.00 13.50 28,575.63 50,700.00 - - - 169,000.00 68,340.43 Program: 2000 - General Administration Total:59,215.14 707,621.13 959,000.00 24,322.35 292,885.47 411,000.00 - - - 1,370,000.00 369,493.40 - - - - - - Program: 2100 - Human Resources - - - - - - 51 Labor 17,626.02 184,814.13 230,300.00 7,553.99 79,205.96 98,700.00 - - - 329,000.00 64,979.91 52 Temporary Labor - - - - - - - - - - - 53 Overtime 456.16 1,888.01 2,100.00 195.49 809.10 900.00 - - - 3,000.00 302.89 56 Benefits 5,233.93 115,965.41 139,300.00 2,243.02 49,698.83 59,700.00 - - - 199,000.00 33,335.76 62 Materials and Supplies 48.67 1,036.13 4,900.00 20.86 444.05 2,100.00 - - - 7,000.00 5,519.82 63 Contract Services 6,691.28 86,279.19 116,200.00 2,867.69 36,976.70 49,800.00 - - - 166,000.00 42,744.11 64 Utilities 41.44 429.52 1,200.00 17.76 184.07 800.00 - - - 2,000.00 1,386.41 65 Professional Development - 18,919.27 39,200.00 - 5,324.33 16,800.00 - - - 56,000.00 31,756.40 67 Other 12,067.61 1,264,882.72 1,189,700.00 4,488.83 369,392.69 339,300.00 2,390.45 604,449.52 380,000.00 1,909,000.00 (329,724.93) Program: 2100 - Human Resources Total:42,165.11 1,674,214.38 1,722,900.00 17,387.64 542,035.73 568,100.00 2,390.45 604,449.52 380,000.00 2,671,000.00 (149,699.63) - - - - - - Program: 2200 - Public Affairs - - - - - - 51 Labor 26,116.20 268,137.97 300,300.00 11,192.64 115,790.37 128,700.00 - - - 429,000.00 45,071.66 52 Temporary Labor - - - - - - - - - - - 53 Overtime 1,024.64 6,385.84 11,900.00 439.12 2,736.76 5,100.00 - - - 17,000.00 7,877.40 56 Benefits 7,915.96 88,789.09 88,900.00 3,392.39 38,051.31 38,100.00 - - - 127,000.00 159.60 62 Materials and Supplies 3,313.04 19,032.39 55,300.00 2,470.31 9,207.22 23,700.00 - - - 79,000.00 50,760.39 63 Contract Services 29,599.32 187,139.21 362,600.00 13,840.61 135,350.43 155,400.00 - - - 518,000.00 195,510.36 64 Utilities 5,687.87 7,850.28 27,300.00 2,437.66 3,364.39 11,700.00 - - - 39,000.00 27,785.33 65 Professional Development - 9,841.14 21,700.00 - 4,217.67 9,300.00 - - - 31,000.00 16,941.19 Program: 2200 - Public Affairs Total:73,657.03 587,175.92 868,000.00 33,772.73 308,718.15 372,000.00 - - - 1,240,000.00 344,105.93 - - - - - - Program: 2300 - Conservation - - - - - - 51 Labor 8,512.50 89,376.50 107,000.00 - - - - - - 107,000.00 17,623.50 52 Temporary Labor - - - - - - - - - - - 53 Overtime 877.80 3,152.10 7,000.00 - - - - - - 7,000.00 3,847.90 56 Benefits 2,966.23 27,801.93 42,000.00 - - - - - - 42,000.00 14,198.07 62 Materials and Supplies 1,190.02 6,615.28 26,000.00 - - - - - - 26,000.00 19,384.72 63 Contract Services 2,785.74 (29,438.76) 322,000.00 - - - - - - 322,000.00 351,438.76 64 Utilities 30.53 305.76 26,000.00 - - - - - - 26,000.00 25,694.24 65 Professional Development - 10,111.50 15,000.00 - - - - - - 15,000.00 4,888.50 67 Other 7,273.00 (5,338.33) 70,000.00 - - - - - - 70,000.00 75,338.33 Program: 2300 - Conservation Total:23,635.82 102,585.98 615,000.00 - - - - - - 615,000.00 512,414.02 Program: 3000 - Finance & Accounting - - - - - - 51 Labor 33,689.07 352,377.59 502,500.00 14,438.14 151,003.15 232,500.00 - - - 735,000.00 231,619.26 52 Temporary Labor - - - - - - - - - - - 53 Overtime 794.76 4,787.77 9,100.00 340.62 2,051.89 3,900.00 - - - 13,000.00 6,160.34 56 Benefits 10,000.71 187,824.80 261,800.00 4,285.85 80,459.50 112,200.00 - - - 374,000.00 105,715.70 62 Materials and Supplies 205.07 2,569.01 4,900.00 87.89 1,101.02 2,100.00 - - - 7,000.00 3,329.97 63 Contract Services 1,360.20 56,358.11 98,700.00 563.66 24,312.79 42,300.00 - - - 141,000.00 60,329.10 64 Utilities 146.66 1,178.60 2,800.00 62.85 505.10 1,200.00 - - - 4,000.00 2,316.30 65 Professional Development - 16,515.71 21,000.00 - 7,078.14 9,000.00 - - - 30,000.00 6,406.15 67 Other - 81.53 - - - - - - - - (81.53) Program: 3000 - Finance & Accounting Total:46,196.47 621,693.12 900,800.00 19,779.01 266,511.59 403,200.00 - - - 1,304,000.00 415,795.29 - - - - - - Month Ended April 30, 2024 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Page 4 of 6 AMENDED AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended April 30, 2024 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Program: 3200 - Information Technology - - - - - - 51 Labor 21,412.17 225,729.43 303,100.00 9,176.64 96,741.00 129,900.00 - - - 433,000.00 110,529.57 52 Temporary Labor 1,058.40 11,428.20 11,900.00 453.60 4,897.80 5,100.00 - - - 17,000.00 674.00 53 Overtime - - - - - - - - - - - 56 Benefits 7,090.74 154,403.58 181,300.00 3,038.89 66,172.40 77,700.00 - - - 259,000.00 38,424.02 62 Materials and Supplies 558.93 65,781.11 49,000.00 239.55 28,152.80 21,000.00 - - - 70,000.00 (23,933.91) 63 Contract Services 52,905.70 318,047.77 557,200.00 22,673.88 136,306.22 238,800.00 - - - 796,000.00 341,646.01 64 Utilities 957.54 11,983.53 8,400.00 410.37 5,135.79 3,600.00 - - - 12,000.00 (5,119.32) 65 Professional Development - 2,115.44 3,500.00 - 906.61 1,500.00 - - - 5,000.00 1,977.95 Program: 3200 - Information Technology Total:83,983.48 789,489.06 1,114,400.00 35,992.93 338,312.62 477,600.00 - - - 1,592,000.00 464,198.32 - - - - - - Program: 3300 - Customer Service - - - - - - 51 Labor 32,534.96 339,707.08 433,300.00 13,943.52 145,588.37 185,700.00 - - - 619,000.00 133,704.55 52 Temporary Labor - - - - - - - - - - - 53 Overtime 643.70 5,745.02 4,900.00 275.87 2,462.16 2,100.00 - - - 7,000.00 (1,207.18) 56 Benefits 11,868.59 170,211.28 217,000.00 5,086.39 72,945.90 93,000.00 - - - 310,000.00 66,842.82 62 Materials and Supplies 164.49 1,409.28 4,900.00 70.49 603.96 2,100.00 - - - 7,000.00 4,986.76 63 Contract Services 71,507.63 565,770.97 635,200.00 30,646.16 242,473.23 285,800.00 - - - 921,000.00 112,755.80 64 Utilities 23,419.88 98,166.08 112,700.00 9,762.36 39,133.08 48,300.00 - - - 161,000.00 23,700.84 65 Professional Development - 1,203.15 11,900.00 - 515.62 5,100.00 - - - 17,000.00 15,281.23 67 Other 2,973.95 4,910.58 4,200.00 - - 1,800.00 - - - 6,000.00 1,089.42 Program: 3300 - Customer Service Total:143,113.20 1,187,123.44 1,424,100.00 59,784.79 503,722.32 623,900.00 - - - 2,048,000.00 357,154.24 - - - - - - Program: 3400 - Meter Services - - - - - - 51 Labor 12,540.80 131,928.42 173,000.00 - - - - - - 173,000.00 41,071.58 53 Overtime 58.79 367.42 6,000.00 - - - - - - 6,000.00 5,632.58 56 Benefits 5,361.44 72,616.43 101,000.00 - - - - - - 101,000.00 28,383.57 62 Materials and Supplies - - 4,000.00 - - - - - - 4,000.00 4,000.00 63 Contract Services 153.18 1,199.72 7,000.00 - - - - - - 7,000.00 5,800.28 64 Utilities 136.02 999.02 1,000.00 - - - - - - 1,000.00 0.98 65 Professional Development - 60.00 - - - - - - - - (60.00) Program: 3400 - Meter Services Total:18,250.23 207,171.01 292,000.00 - - - - - - 292,000.00 84,828.99 - - - - - - Program: 4000 - Engineering - - - - - - 51 Labor 31,007.76 298,790.36 438,900.00 13,289.04 137,055.58 188,100.00 - - - 627,000.00 191,154.06 52 Temporary Labor - - - - - - - - - - - 53 Overtime - - 2,100.00 - - 900.00 - - - 3,000.00 3,000.00 56 Benefits 7,454.19 68,605.92 107,100.00 3,194.58 29,401.76 45,900.00 - - - 153,000.00 54,992.32 62 Materials and Supplies 84.20 6,274.97 13,300.00 36.08 262.36 5,700.00 - - - 19,000.00 12,462.67 63 Contract Services 6,132.42 127,520.83 275,100.00 2,128.48 10,696.38 117,900.00 - - - 393,000.00 254,782.79 64 Utilities 625.36 69,385.67 61,600.00 52.77 21,867.63 26,400.00 - - - 88,000.00 (3,253.30) 65 Professional Development - 4,431.74 10,500.00 - 2,120.31 4,500.00 - - - 15,000.00 8,447.95 Program: 4000 - Engineering Total:45,303.93 575,009.49 908,600.00 18,700.95 201,404.02 389,400.00 - - - 1,298,000.00 521,586.49 - - - - - - Program: 5000 - Water Production - - - - - - 51 Labor 57,631.11 619,663.18 790,000.00 - - - - - - 790,000.00 170,336.82 53 Overtime 7,168.22 69,413.31 46,000.00 - - - - - - 46,000.00 (23,413.31) 54 Standby 5,225.06 40,119.59 15,000.00 - - - - - - 15,000.00 (25,119.59) 56 Benefits 18,736.70 325,597.77 400,000.00 - - - - - - 400,000.00 74,402.23 61 Water Supply - 410,657.61 768,000.00 - - - - - - 768,000.00 357,342.39 62 Materials and Supplies 8,149.18 176,951.49 285,000.00 - - - - - - 285,000.00 108,048.51 63 Contract Services 41,041.85 247,513.65 528,000.00 - - - - - - 528,000.00 280,486.35 64 Utilities 1,152.77 1,739,114.32 3,099,000.00 - - - - - - 3,099,000.00 1,359,885.68 65 Professional Development - 6,414.02 11,000.00 - - - - - - 11,000.00 4,585.98 Program: 5000 - Water Production Total:139,104.89 3,635,444.94 5,942,000.00 - - - - - - 5,942,000.00 2,306,555.06 - - - - - - Program: 5100 - Water Treatment - - - - - - 51 Labor 21,020.80 220,843.40 273,000.00 - - - - - - 273,000.00 52,156.60 53 Overtime 2,568.59 23,890.37 39,000.00 - - - - - - 39,000.00 15,109.63 56 Benefits 6,518.43 142,159.69 164,000.00 - - - - - - 164,000.00 21,840.31 62 Materials and Supplies 16,967.26 293,078.85 265,000.00 - - - - - - 265,000.00 (28,078.85) 63 Contract Services 74,046.45 393,631.50 349,000.00 - - - - - - 349,000.00 (44,631.50) 64 Utilities 17,084.04 138,929.77 185,000.00 - - - - - - 185,000.00 46,070.23 Program: 5100 - Water Treatment Total:138,205.57 1,212,533.58 1,275,000.00 - - - - - - 1,275,000.00 62,466.42 - - - - - - Program: 5200 - Water Quality - - - - - - 51 Labor 16,022.40 165,058.81 223,000.00 - - - - - - 223,000.00 57,941.19 53 Overtime 54.72 1,858.86 12,000.00 - - - - - - 12,000.00 10,141.14 56 Benefits 2,884.52 64,900.47 107,000.00 - - - - - - 107,000.00 42,099.53 62 Materials and Supplies 15,016.55 22,548.47 25,000.00 - - - - - - 25,000.00 2,451.53 63 Contract Services 4,220.00 72,851.74 128,000.00 - - - - - - 128,000.00 55,148.26 64 Utilities - - 2,000.00 - - - - - - 2,000.00 2,000.00 65 Professional Development - 564.79 7,000.00 - - - - - - 7,000.00 6,435.21 Program: 5200 - Water Quality Total:38,198.19 327,783.14 504,000.00 - - - - - - 504,000.00 176,216.86 - - - - - - Page 5 of 6 AMENDED AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended April 30, 2024 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Program: 6000 - Maintenance Administration - - - - - - 51 Labor 11,794.79 152,426.64 195,300.00 1,310.55 16,789.05 21,700.00 - - - 217,000.00 47,784.31 52 Temporary Labor - - - - - - - - - - - 53 Overtime - 377.72 1,800.00 - 41.97 200.00 - - - 2,000.00 1,580.31 54 Standby 2,182.70 34,408.41 18,000.00 171.42 2,489.76 2,000.00 - - - 20,000.00 (16,898.17) 56 Benefits 7,571.76 124,674.63 142,200.00 831.26 13,576.14 15,800.00 - - - 158,000.00 19,749.23 62 Materials and Supplies 241.12 735.05 2,700.00 - 54.88 300.00 - - - 3,000.00 2,210.07 63 Contract Services 60.78 893.98 900.00 6.78 99.27 100.00 - - - 1,000.00 6.75 64 Utilities 2,592.77 23,273.45 36,900.00 288.09 2,585.85 4,100.00 - - - 41,000.00 15,140.70 65 Professional Development - 20,241.74 20,700.00 - 2,196.60 2,300.00 - - - 23,000.00 561.66 Program: 6000 - Maintenance Administration Total:24,443.92 357,031.62 418,500.00 2,608.10 37,833.52 46,500.00 - - - 465,000.00 70,134.86 - - - - - - Program: 6100 - Water Maintenance - - - - - - 51 Labor 88,762.48 861,252.04 1,064,000.00 - - - - - - 1,064,000.00 202,747.96 53 Overtime 20,835.83 306,541.53 319,000.00 - - - - - - 319,000.00 12,458.47 56 Benefits 36,252.05 475,906.29 620,000.00 - - - - - - 620,000.00 144,093.71 62 Materials and Supplies 3,798.52 567,923.24 686,000.00 - - - - - - 686,000.00 118,076.76 63 Contract Services 7,701.30 394,864.28 557,000.00 - - - - - - 557,000.00 162,135.72 64 Utilities - - - - - - - - - - - Program: 6100 - Water Maintenance Total:157,350.18 2,606,487.38 3,246,000.00 - - - - - - 3,246,000.00 639,512.62 - - - - - - Program: 6200 - Wastewater Collection - - - - - - 51 Labor - - - 24,468.24 282,977.44 371,000.00 - - - 371,000.00 88,022.56 53 Overtime - - - - 9,132.70 9,000.00 - - - 9,000.00 (132.70) 56 Benefits - - - 7,761.07 115,763.55 174,000.00 - - - 174,000.00 58,236.45 62 Materials and Supplies - - - - 32,427.53 42,000.00 - - - 42,000.00 9,572.47 Wastewater Treatment - - - - - 7,610,000.00 - - - 7,610,000.00 7,610,000.00 63 Contract Services - - - 396.35 116,969.29 (7,405,000.00) - - - (7,405,000.00) (7,521,969.29) Program: 6200 - Wastewater Collection Total:- - - 32,625.66 557,270.51 801,000.00 - - - 801,000.00 243,729.49 - - - - - - Program: 6300 - Water Reclamation - - - - - - 51 Labor - - - - - - 60,439.72 606,748.59 750,000.00 750,000.00 143,251.41 53 Overtime - - - - - - 32,437.53 108,185.37 50,000.00 50,000.00 (58,185.37) 54 Standby - - - - - - 40.00 120.00 55,000.00 55,000.00 54,880.00 56 Benefits - - - - - - 21,432.51 307,818.64 404,000.00 404,000.00 96,181.36 62 Materials and Supplies - - - - - - 28,189.58 192,411.27 618,000.00 618,000.00 425,588.73 63 Contract Services - - - - - - 41,963.82 6,391,736.33 7,346,000.00 7,346,000.00 954,263.67 64 Utilities - - - - - - 177,368.80 540,386.22 1,538,000.00 1,538,000.00 997,613.78 65 Professional Development - - - - - - - 7,879.57 20,000.00 20,000.00 12,120.43 Program: 6300 - Water Reclamation Total:- - - - - - 361,871.96 8,155,285.99 10,781,000.00 10,781,000.00 2,625,714.01 - - - - - - Program: 7000 - Facilities Maintenance - - - - - - 51 Labor 11,478.15 120,695.66 153,300.00 4,919.20 51,726.43 65,700.00 - - - 219,000.00 46,577.91 53 Overtime 752.40 6,661.21 9,800.00 322.45 2,854.77 4,200.00 - - - 14,000.00 4,484.02 56 Benefits 4,259.34 67,229.64 86,100.00 1,825.41 28,810.98 36,900.00 - 9.49 - 123,000.00 26,949.89 62 Materials and Supplies 8,804.03 55,011.63 40,600.00 1,786.71 20,694.22 17,400.00 43.72 43.72 - 58,000.00 (17,749.57) 63 Contract Services 43,027.14 792,779.60 870,000.00 17,462.39 359,433.60 373,000.00 361.50 - - 1,243,000.00 90,786.80 64 Utilities 8,920.90 206,468.65 284,100.00 2,546.08 57,166.95 108,900.00 - - - 393,000.00 129,364.40 65 Professional Development - - 1,500.00 - - 1,500.00 - - - 3,000.00 3,000.00 Program: 7000 - Facilities Maintenance Total:77,241.96 1,248,846.39 1,445,400.00 28,862.24 520,686.95 607,600.00 405.22 53.21 - 2,053,000.00 283,413.45 - - - Program: 7100 - Fleet Maintenance - - - - - - 51 Labor 5,543.68 64,791.76 80,000.00 1,385.92 7,969.04 20,000.00 - - - 100,000.00 27,239.20 53 Overtime 389.79 4,628.79 2,400.00 97.45 568.44 600.00 - - - 3,000.00 (2,197.23) 56 Benefits 2,200.36 22,763.81 32,800.00 550.08 2,834.74 8,200.00 - - - 41,000.00 15,401.45 62 Materials and Supplies 9,764.17 147,098.45 144,000.00 2,441.07 33,056.08 36,000.00 - - - 180,000.00 (154.53) 63 Contract Services 22,874.85 137,998.34 152,800.00 5,718.70 31,524.77 38,200.00 - - - 191,000.00 21,476.89 64 Utilities 14,642.61 144,909.91 192,800.00 3,660.65 32,102.47 48,200.00 - - - 241,000.00 63,987.62 65 Professional Development - - 3,200.00 - - 800.00 - - - 4,000.00 4,000.00 Program: 7100 - Fleet Maintenance Total:55,415.46 522,191.06 608,000.00 13,853.87 108,055.54 152,000.00 - - - 760,000.00 129,753.40 - - - Program: 8000 - Capital - - - - - 11 Capital Assets not being Depreciated - - - - - - - - - - - 71 Debt Service - 1,912,356.24 3,103,000.00 - 224,421.50 273,000.00 - - - 3,376,000.00 1,239,222.26 81 Capital Improvement 92,928.37 881,230.82 2,695,000.00 - - 300,000.00 - - - 2,995,000.00 2,113,769.18 82 Capital Outlay 17,423.44 330,025.50 670,000.00 2,002.50 190,159.01 285,000.00 - 79,934.20 150,000.00 1,105,000.00 504,881.29 83 Accounting Income Add back (92,928.37) (2,539,881.39) - - (199,710.75) - - - - - 2,739,592.14 88 Transfer to Reserves - - (260,000.00) - - 230,000.00 - - - (30,000.00) (30,000.00) 99 Transfer from Reserves - - - - - - - - - - - Program: 8000 - Capital Total:17,423.44 583,731.17 6,208,000.00 2,002.50 214,869.76 1,088,000.00 - 79,934.20 150,000.00 7,446,000.00 6,567,464.87 Total Surplus (Deficit):1,064,968.43$ 7,682,338.99$ -$ 81,543.66$ 1,627,493.84$ -$ 899,702.93$ 420,126.02$ -$ -$ (9,729,958.85)$ Page 6 of 6 Agenda Item #3a June 26, 20241 Meeting Date: June 26, 2024 Agenda Item #3a Discussion Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Community Advisory Commission Appointment RECOMMENDATION That the Board of Directors appoint one member to the Community Advisory Commission. BACKGROUND / ANALYSIS The Community Advisory Commission (Commission) is a group of customers appointed by the Board of Directors to be provided a detailed look at District operations and functions while given the opportunity to voice their input on various East Valley Water District (District) projects and programs. The Commission meets quarterly and currently includes seven (7) volunteer customers. One member is no longer available to complete the remainder of their term, ending on January 1, 2025. The District has selected one customer who has attended previous Community Advisory Commission meetings, actively participated in the District’s Conservation workshops and lives near the Sterling Natural Resource Center. In 2020, the Governing Board took action to implement both term limits and expand the capacity of the Commission to a maximum of seven (7) members. Staff are recommending the appointment that would bring the total Commission back to seven (7) members. 1. Jose Andres Ibarra Gonzalez AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability B. Utilize Effective Communication Methods D. Provide Quality Information to Encourage Community Engagement REVIEW BY OTHERS Agenda Item #3a June 26, 20242 Meeting Date: June 26, 2024 Agenda Item #3a Discussion Item This agenda item has been reviewed by Administration. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ William Ringland Public Affairs/Conservation Manager ATTACHMENTS No Attachments Agenda Item #3b June 26, 20241 Meeting Date: June 26, 2024 Agenda Item #3b Discussion Item 1 1 0 9 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider approval of Amendment No. 3 - Reimbursement Agreement with the City of Highland for Law Enforcement Services RECOMMENDATION That the Board of Directors authorize the General Manager/CEO to execute Amendment No. 3 reimbursement agreement with the City of Highland for law enforcement services. BACKGROUND / ANALYSIS East Valley Water District (District) serves the needs of the community through water and wastewater services. Maintaining secure facilities is essential to achieving these objectives, resulting in the District taking an active role in emergency mitigation measures, including a variety of site safety and security measures. A contract was established with the San Bernardino County Sheriff’s Department Highland Station on January 1, 2022, remaining in-place until 2031. As part of this partnership, a deputy has been assigned to the District to provide security at various sites within the service area, conduct criminal investigations related to District property, and assist District personnel in managing customer conflicts. Moreover, the deputy supports the District during public events at the Sterling Natural Resource Center or other District facility. The amount for each fiscal year (FY) covers the full annual costs for the deputy and for FY 2024-25, the amount is $312,785, a 2.8% increase from the previous year. This total cost reflects the approved salary and benefits as adopted by the San Bernardino County Board of Supervisors. Term Amount January 1, 2022 - June 30, 2022 $154,000 FY 2022-23 $290,764 FY 2023-24 $304,254 FY 2024-25 $312,785 Since the City of Highland is the primary contract holder for law enforcement services with the San Bernardino County Sheriff’s Department, the District's amendment aligns with the contract to ensure there is no duplication of services. It is important to note Agenda Item #3b June 26, 20242 Meeting Date: June 26, 2024 Agenda Item #3b Discussion Item 1 1 0 9 the ultimate command and control of the deputy will remain under the discretion of the Highland Sheriff Department Command Staff. Finally, the City of Highland does not impose any administrative fees for facilitating this agreement. Partnerships between local agencies provides enhanced levels of service to the community, while maximizing organizational expertise. The District will continue fostering a strong working relationship with the City of Highland and San Bernardino County Sheriff’s Department to ensure the safety and security of the District’s assets. AGENCY GOALS AND OBJECTIVES III - Deliver Public Service With Purpose While Embracing Continuous Growth A. Advance Emergency Preparedness Efforts IV - Promote Planning, Maintenance and Preservation of District Resources A. Develop Projects and Programs to Ensure Safe and Reliable Services D. Enable Fact-Based Decision Making REVIEW BY OTHERS This agenda item has been reviewed by Administration. FISCAL IMPACT The annual contract amount of $312,785, is reflected in the proposed annual budget for FY 2024-25. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ William Ringland Public Affairs/Conservation Manager ATTACHMENTS Contract Amendment #3 Cost Schedule A 1 AMENDMENT NO. 3 REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF HIGHLAND AND EAST VALLEY WATER DISTRICT FOR LAW ENFORCEMENT SERVICES This Amendment No. 3 Reimbursement Agreement Between the City of Highland and East Valley Water District for Law Enforcement Services (“Amendment No. 3”) is made and entered into this 14th day of May 2024 by and between the CITY OF HIGHLAND, a municipal corporation (“City”) and EAST VALLEY WATER DISTRICT, a California special district (“EVWD”). The City and EVWD may be collectively referred to as “the Parties”. 1. RECITALS A. On September 28, 2021, the City and EVWD entered into a Reimbursement Agreement for law enforcement services (“Agreement”). Pursuant to the Agreement, beginning January 1, 2022, the City, through its Contract with the County, will provide one Sheriff’s deputy to patrol EVWD’s Sterling Natural Resource Center and provide law enforcement services to EVWD’s 41 sites. EVWD would then be responsible for reimbursing the City for the full cost of the Sheriff’s deputy. B. On May 10, 2022, the Parties entered into Amendment No. 1 to the Agreement to provide that the payment under the Agreement would be $285,356.00. The cost subsequently increased by $5,408.00, and the increase was paid by EVWD to the City, for a total of $290,764.00 for Fiscal Year 2022-2023. C. On May 9, 2023, the Parties entered into Amendment No. 2 to provide that payment under the Agreement for one (1) Deputy would be $304,254.00 for Fiscal Year 2023-2024. D. The Parties now seek to enter into this Amendment No. 3 to address the contract amount for Fiscal Year 2024-2025. According to the San Bernardino County Sheriff’s Department, the full cost of one (1) Deputy for Fiscal Year 2024-2025 is $312,785. 2. THIRD AMENDMENT A. Section 3, Payment of the Agreement is hereby amended to read as follows: 3. Payment. On or before July 1, 2024, EVWD shall pay to the City Three Hundred Twelve Thousand Seven Hundred Eighty-Five Dollars ($312,785) for the full cost of the Sheriff’s deputy. The cost breakdown is attached hereto as Exhibit “B”. Thereafter, on or before July 1st of each subsequent year, EVWD shall pay to the City the full cost of the Sheriff’s deputy based on the revised schedule of payment. The parties acknowledge that the cost of the Sheriff’s deputy may change each year and that the full cost that the City pays the County for the Sheriff’s deputy shall be passed 2 through to EVWD. Beginning in June 2022, no later than June 1st of each year, the City shall provide to EVWD a new schedule of payment for the Sheriff’s deputy that will replace Exhibit “B” hereto. Beginning in June 2022, no later than July 1st of each year, EVWD shall pay to the City the amount set forth in Exhibit “B”. The City’s Contract with the County provides that personnel costs include salary and benefits are subject to change by Board of Supervisor action. The Contract further provides that changes in salary and benefit costs will be billed to the City on a quarterly basis. If the cost for the Sheriff’s deputy increases in any year after payment has been made by EVWD to the City, the City shall promptly notify EVWD of the additional cost and EVWD shall pay the City the additional cost within thirty days of receipt of the City’s notice.” B. Exhibit “B” of “Amendment No. 3” shall replace Exhibit “B” of “Amendment No. 2” dated May 9, 2023. C. All other Exhibits and provisions of the Agreement shall remain in full force and effect. 3. SEVERABILITY If any provision of “Amendment No. 3” shall be adjudged to be invalid, void, or illegal, it shall in no way affect, impair or invalidate any other provision(s) hereof, the parties hereby agreeing that they would have entered into the remaining portion of “Amendment No. 3” notwithstanding the omission of the portion or portions adjudged invalid, void, or illegal. 4. COUNTERPARTS “Amendment No. 3” may be executed in any number of counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, taken together, shall be deemed to be one and the same instrument. IN WITNESS WHEREOF, the parties hereto have executed “Amendment No. 3” on the date and year first above written. 3 CITY OF HIGHLAND EAST VALLEY WATER DISTRICT _______________________________ _______________________________ Carlos Zamano, City Manager Michael Moore, General Manager/CEO ATTEST: _______________________________ Alondra Muñoz, City Clerk APPROVED AS TO FORM: _______________________________ Maricela Marroquin, City Attorney 4 Exhibit “B” Payment Schedule FY 2024-2025 (July 1, 2024 - June 30, 2025) Deputy Sheriff: $236,362 Marked Patrol Unit: $21,713 Plus, other costs such as: HT radio and taser, Dispatch Services, Administrative support, Vehicle and Personnel Liability and Insurance is approximately $54,710. Total Cost for the above deputy and equipment in FY 2024-2025 (July 1, 2024 - June 30, 2025) is $312,785. Agenda Item #3c June 26, 20241 Meeting Date: June 26, 2024 Agenda Item #3c Discussion Item 1 6 7 2 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Adoption of Resolution 2024.10 Approving the Fiscal Year 2024-25 Operating and Capital Budgets RECOMMENDATION That the Board of Directors adopt Resolution 2024.10 approving the Operating and Capital Budgets for fiscal year 2024-25. BACKGROUND / ANALYSIS The Fiscal Year (FY) 2024-25 Operating and Capital Budgets have been developed to continue to provide high quality water delivery, wastewater collection, and water reclamation services to District ratepayers. The proposed budget directs the District’s resources towards the Agency Goals and Objectives described in the Five-Year Work Plan adopted by the Board. Many outside drivers such as inflation, new regulations, and lower water demand are accounted for in the budget. The budget is presented by Program, each having stated goals and objectives for the upcoming fiscal year that align with Agency Goals. The Capital Budget specifically identifies equipment scheduled for replacement or upgrade, and projects from the Capital Improvement Program (CIP) designated as high priority due to age and condition or having insufficient capacity to meet anticipated growth. Revenues: As discussed during the Board workshop on June 12, 2024, Total Revenue projected for FY 2024-25 is $51,929,000, a 12.7% increase over revenue projected for the prior year. Factors affecting revenue projections include: •Consumption based on historical trends and rate model assumptions; •Meter Charge and Tiered Rate increases, effective January 2025; •Wastewater Collection and Treatment Rate increases, effective July 2024; •Rising interest rates; and •SNRC Non-Rate Revenue – a phased in approach in this first full year of digester operations. The FY 2024-25 Operating and Capital Budgets have been developed to continue to provide high quality water delivery, wastewater collection, and water reclamation services to District ratepayers. Agenda Item #3c June 26, 20242 Meeting Date: June 26, 2024 Agenda Item #3c Discussion Item 1 6 7 2 Projected revenues are summarized in the chart below: Expenses: The District accounts for all operating expenses at the program level. Each Program is evaluated on an annual basis to determine its effectiveness. As a result, some programs may be redefined or enhanced, to ensure that they run effectively and with a high level of accountability. FY 2024-25 program expenses are budgeted $38,893,000, a 6.2% increase compared to the prior fiscal year. Total program expenses are presented by cost type below: Capital Outlay: The Capital Outlay Budget is an effort to plan for the replacement of vehicles and equipment. The objective is to standardize the replacement process to Water Sales $17,920,000 System Charges $17,040,000 Wastewater Treatment $12,233,000 SNRC Non-Rate Revenue $3,120,000 Other Income $1,616,000 FY 2024-25 Projected Revenue $51,929,000 Employment Services $14,829,000 Water Costs $833,000 Power Costs $4,625,000 Materials & Supplies $2,808,250 Contract Services $15,254,750 Other Operating Expenses $543,000 FY 2024-25 Program Expenses $38,893,000 Agenda Item #3c June 26, 20243 Meeting Date: June 26, 2024 Agenda Item #3c Discussion Item 1 6 7 2 create a managed system of purchasing and funding capital equipment, thereby allowing the District to accurately plan and budget for future needs. The cost of independent studies encompassing long-term infrastructure planning and re-design of the District’s website are also included in Capital Outlay. No vehicles are budgeted for replacement this year. The FY 2024-25 Capital Outlay Budget totals $1,453,000 and includes a combination of equipment purchases and planning studies, as summarized in the table below: P R OP OSED CA PIT A L OUT LA Y A MOUNT Infrastructure Upgrades / T echnology Enhancem ents 530,000$ Facil ity Im provements / Security 270,000 Water Q uality / Environm ental Studies 375,000 Equi pment A cquisition 278,000 T OT A L CA P IT A L OUT LA Y 1,453,000$ Capital Improvement Program (CIP): This year’s proposed Capital Improvement Program Budget totals $7,390,000 and focuses on the following: installation of additional data collector in the central west area of the District; rehabilitation of the 0.5 million gallon tank at Plant 56; completing rehabilitation of boosters and a hydro tank at Plant 101; beginning project to design, drill, and equip a new groundwater production well at Plant 129; and continuing rehabilitation of critical infrastructure to ensure system reliability in future years. The CIP Budget is fully funded utilizing $708,000 from Operating Revenue, $3,022,000 from Water Replacement Reserve, approximately $660,000 from Grants, and $3,000,000 from Capacity Fees. A summary of the CIP Budget for FY 2024-25, by project type, is shown in the following table: P ROP OSED CA PIT A L IMP ROVEMENT PROJECT S A MOUNT A utom ated Metering Enhancem ents 150,000$ Storage T ank / Reservoir U pgrades & Rehabi litations 1,660,000 Plant 101 - Hydro T ank Rehabilitati on 900,000 Pipeline U pgrades & V alve Replacem ents 700,000 Plant 129 Well Design & Construction 3,000,000 General Facil ity Rehabilitations / Relocations 450,000 Plant 39 Warehouse Building / Storage 380,000 Weaver Basins Em ergency Storage Pum ping 150,000 T OT A L CA P IT A L IMP ROVEMENT P ROJEC T S 7,390,000$ The Mid-Year Budget Review, usually conducted in February, will allow the District to measure actual revenue against revenue projections and determine whether excess revenue, if any, is sufficient to fund additional projects. Agenda Item #3c June 26, 20244 Meeting Date: June 26, 2024 Agenda Item #3c Discussion Item 1 6 7 2 Debt Service: The District will pay debt service on five debt instruments in FY 2024- 25. Both water and wastewater revenues are pledged as security for revenue bonds, while only water revenues are pledged for repayment of existing loans. A preliminary calculation based on budget numbers has resulted in FY 2024-25 debt service coverage of 154%, well in excess of the 120% required by bond documents. Debt service payments scheduled for FY 2024-25 are shown in the following table: DEBT ISSUE INT ER EST RA T E FY 2024-25 DEBT SER VICE 2020A Refunding Revenue Bonds 3-5% $ 1,595,000 2020B Refunding Revenue Bonds 3-5% 596,000 SWRCB Loan - T reatm ent Plant 0.00% 234,000 SWRCB Loans - A ssessm ent Districts 0.00% 19,000 SWRCB Loan - SN RC (Esti m ated)1.80% 7,731,000 C ity of SB Settlem ent 0.00% 700,000 T OT A L $ 10,875,000 Budget Funding: Current year water and wastewater rate revenue will pay for all FY 2024-25 operating expenses, debt service on District debt, and will contribute toward the current year Capital Budget, which includes Capital Outlay, and year one of the multi-year Capital Improvement Program. In addition to rate revenue, the Capital Budget will also be funded by grants and capacity fees collected from developers. The table below displays expenditure types included in the FY 2024-25 Budget, and the funding sources available to pay those expenditures: EXPENDITURE TYPE WA TER FUND WA STEWA TER FUND RECLA MA TION FUND TOTA L Operating Expenses $ 25,148,000 $ 6,006,000 7,739,000$ 38,893,000$ Debt S ervice 2,662,000 482,000 7,731,000 10,875,000 Capital Outlay 1,128,000 242,000 83,000 1,453,000 Capital Improvement Program 558,000 - 150,000 708,000 TOTA L $29,496,000 $ 6,730,000 $ 15,703,000 $ 51,929,000 Conclusion: The proposed FY 2024-25 budget balances projected revenues and expenditures, covers all debt service payments, including the first payment on the state loan financing the Sterling Natural Resource Center, and begins construction on a new well for the first time in over 20 years. The proposed budget maintains the District reserve policies. Throughout the coming year, staff will closely monitor revenues versus Program spending, and propose adjustments as necessary to ensure the District’s fiscal sustainability. Agenda Item #3c June 26, 20245 Meeting Date: June 26, 2024 Agenda Item #3c Discussion Item 1 6 7 2 AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by all Departments and was presented as an information only item at the June 12, 2024 Board Meeting. FISCAL IMPACT The FY 2024-25 Operating Budget is balanced, and the Capital Budget is fully funded. Approval of the budget will allow the District to execute the expenses for operating, debt service, capital outlay, and capital improvements totaling $51,929,000 for FY 2024-25. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS 1. Presentation 2. FY 2024-25 Draft Budget 3. Resolution 2024.10 June 26, 2024 FY 2024-25 OPERATING & CAPITAL BUDGETS Brian Tompkins, Chief Financial Officer 2 BUDGET PROCESS 3 BUDGET SUMMARY: REVENUE REVENUE / SOURCES WATER FUND WASTEWATER FUND RECLAMATION FUND FY 2023-24 TOTAL Water Sales / Wastewater Collection Charges / LRIP $ 17,920,000 $ 6,515,000 $ 1,072,000 $ 25,507,000 Wastewater Treatment Charges - - 12,233,000 12,233,000 Water System (Meter) Charges 10,525,000 - - 10,525,000 Other Operating Income 115,000 5,000 2,058,000 2,178,000 Other Charges and Income 936,000 210,000 340,000 1,486,000 TOTAL REVENUE / SOURCES $29,496,000 $ 6,730,000 $ 15,703,000 $ 51,929,000 LRIP – Local Resource Investment Program 4 BUDGET SUMMARY: EXPENSES OPERATING EXPENSES WATER FUND WASTEWATER FUND RECLAMATION FUND FY 2024-25 TOTAL Employment Expenses $ 10,313,300 $ 2,783,700 $ 1,732,000 $ 14,829,000 Water Costs 833,000 - - 833,000 Power Costs 3,225,000 - 1,400,000 4,625,000 Materials & Supplies 1,847,500 173,750 787,000 2,808,250 Contract Services 8,524,000 2,930,750 3,800,000 15,254,750 Other Operating Expenses 405,200 117,800 20,000 543,000 TOTAL OPERATING EXPENSES $ 25,148,000 $ 6,006,000 $ 7,739,000 $ 38,893,000 EXPENSES - OTHER Debt Service $ 2,662,000 $ 482,000 $ 7,731,000 $ 10,875,000 Capital Outlay 1,128,000 242,000 83,000 1,453,000 Capital Improvement Program 558,000 - 150,000 708,000 TOTAL EXPENSES - OTHER $ 4,348,000 $ 724,000 $ 7,964,000 $ 13,036,000 TOTAL OPERATING / OTHER EXPENSES $ 29,496,000 $ 6,730,000 $ 15,703,000 $ 51,929,000 5 WATER FUND Water Sales $17,920,000 Meter Charges $10,525,000 Other Charges $1,051,000 SOURCE OF REVENUE Operations $25,148,000 Debt Service $2,662,000 Capital Expenditures $1,686,000 EXPENDITURES / OTHER USES FY 2024-25 Total Water Budget = $29,496,000 6 WASTEWATER FUND Wastewater Collection $6,515,000 Other Charges $215,000 SOURCE OF REVENUE Operations $6,006,000 Debt Service $482,000 Capital Expenditures $242,000 EXPENDITURES / OTHER USES FY 2024-25 Total Wastewater Budget = $6,730,000 Water Sales (LRIP) $1,072,000 Wastewater Treatment Charges $12,233,000 Other Charges $2,398,000 SOURCE OF REVENUE 7 WATER RECLAMATION FUND LRIP – Local Resource Investment Program Operations $7,739,000 Debt Service $7,731,000 Capital Expenditures $233,000 EXPENDITURES / OTHER USES FY 2024-25 Total Water Reclamation Budget = $15,703,000 8 BUDGET ALLOCATION BY PROGRAM DESCRIPTION WATER FUND WASTEWATER FUND RECLAMATION FUND TOTAL FY 2023-24 BUDGETED CHANGE 1000 - Governing Board $ 228,200 $ 97,800 $ - $ 326,000 $ 359,000 -9% 2000 - General Administration 911,400 390,600 - 1,302,000 1,370,000 -5% 2100 - Human Resources & Risk Management 2,530,500 1,084,500 - 3,615,000 2,671,000 35% 2200 - Public Affairs 1,059,100 453,900 - 1,513,000 1,240,000 22% 2300 - Conservation 651,000 - - 651,000 615,000 6% 3000 - Finance & Accounting 978,250 419,250 - 1,397,500 1,304,000 7% 3200 - Information Technology 1,323,700 567,300 - 1,891,000 1,592,000 19% 3300 - Customer Service 1,548,400 663,600 - 2,212,000 2,048,000 8% 3400 - Meter Services 304,000 - - 304,000 292,000 4% 4000 - Engineering 924,700 396,300 - 1,321,000 1,298,000 2% 5000 - Water Production 6,185,000 - - 6,185,000 5,942,000 4% 5100 - Water Treatment 1,629,000 - - 1,629,000 1,275,000 28% 5200 - Water Quality 605,000 - - 605,000 504,000 20% 6000 - Maintenance Admin 396,900 44,100 - 441,000 465,000 -5% 6100 - Water Maintenance 3,711,250 - - 3,711,250 3,246,000 14% 6200 - Wastewater Collection - 962,250 - 962,250 801,000 20% 6300 - Water Reclamation - - 7,739,000 7,739,000 10,781,000 -28% 7000 - Facilities Maintenance 1,527,400 654,600 - 2,182,000 2,053,000 6% 7100 - Fleet Maintenance 634,200 271,800 - 906,000 760,000 19% TOTAL $25,148,000 $ 6,006,000 $ 7,739,000 $38,893,000 $38,616,000 1% 9 •Debt Proceeds Used For: •Plant 134 Treatment Upgrade •Administration / Operations Facility •4-Million Gallon Underground Tank •SNRC Water Reclamation Plant •Water Company Annexation DEBT SERVICE 2020A Bonds $1,595,000 2020B Bonds $596,000 SRF Loans -Plant 134 $234,000 SRF Loans - Assessment Districts $19,000 SRF Loans -SNRC (Estimated) $7,731,000 FY 2024-25 Total Payments = $10,175,000 10 CAPITAL BUDGET FUNDING SUMMARY DESCRIPTION WATER FUND WASTEWATER FUND RECLAMATION FUND TOTAL Capital Outlay $ 1,128,000 $ 242,000 $ 83,000 $ 1,453,000 Capital Improvement Program 7,240,000 - 150,000 7,390,000 TOTAL EXPENDITURES $ 8,368,000 $ 242,000 $ 233,000 $ 8,843,000 Operating Revenue 1,686,000 242,000 233,000 2,161,000 Replacement Reserve 3,022,000 - - 3,022,000 Capacity Fees 3,000,000 - - 3,000,000 Grants / Loans 660,000 - - 660,000 TOTAL SOURCES $ 8,368,000 $ 242,000 $ 233,000 $ 8,843,000 •Total Full-Time Positions: 75 •Part-Time Positions: 3 •Position Changes: +2 •Wastewater Treatment Plant Operator III •Facilities Maintenance Worker I PROGRAM FY 2022-23 Actual FY 2023-24 Actual FY 2024-25 Proposed 2000 - General Administration 3 3 3 2100 - Human Resources 2 2 2 2200 - Public Affairs 4 4 4 2300 - Conservation 1 1 1 3000 - Finance & Accounting 6 6 6 3200 - Information Technology 3 3 3 3300 - Customer Service 7 7 7 3400 - Meter Services 2 2 2 4000 - Engineering 4 3 3 5000 - Water Production 7 7 7 5100 - Water Treatment 2 2 2 5200 - Water Quality 2 2 2 6000 - Maintenance Admin 2 2 2 6100 - Water Maintenance 14 14 14 6200 - Wastewater Collection 4 4 4 6300 - Water Reclamation 9 8 9 7000 - Facilities Maintenance 3 2 3 7100 - Fleet Maintenance 1 1 1 TOTAL 76 73 75 AUTHORIZED POSITIONS 11 QUESTIONS? Highland, California Annual Publication of East Valley Water District 2 0 2 4 - 2 5 f i s c a l y e a r b u d g e t DRAFT TABLE OF CONTENTS Program Descriptions 113 Position Summary Schedule 113 Governing Board 115 General Administration 121 Human Resources & Risk Management 127 Public Affairs 133 Conservation 139 Finance & Accounting 145 Information Technology 151 Customer Service 157 Meter Services 163 Engineering 169 Water Production 175 Water Treatment 181 Water Quality 187 Water Maintenance 193 Wastewater Collection 199 Water Reclamation 205 Facilities Maintenance 211 Fleet Maintenance 217 Program Summaries 111 Capital Budget Overview 225 Capital Outlay 225 CIP Five-Year Schedule 229 Capital Improvement Projects 233 Infrastructure Accomplishments 261 Capital Budget 223 Glossary 265 Acronyms 271 Chart of Accounts 275 Budget Guide 3 Statistical/Supplemental Information 7 District Vision 10 District Goals and Objectives 11 Organizational Structure 14 Industry Benchmarks 21 Introduction 1 Financial Policies 29 Budget Process 35 Budget Cycle Calendar 38 Basis of Budgeting 39 Fund Structure 40 Fund/Program Relationship 43 Budget Summary 45 Revenue Summary 47 Expenditure Summary 55 Debt Overview 61 Fund Equity & Reserves 67 Long Range Financial Plan 75 Financial Summary 27 Water Fund 81 Wastewater Fund 93 Water Reclamation Fund 99 Consolidated Financial Schedules 105 LEADERSHIP | PARTNERSHIP | STEWARDSHIP James Morales, Jr. Chairman of the Board Ronald L. Coats Vice Chairman Chris Carrillo Governing Board Member Phillip R. Goodrich Governing Board Member David E. Smith Governing Board Member Michael Moore, P.E. General Manager/CEO 31111 Greenspot Road Highland, CA 92346 (909) 889-9501 www.eastvalley.org June 26, 2024 Honorable Chairman, Governing Board, District Ratepayers, and Community Members: The financial drivers affecting water utilities make this year’s budget cycle very challenging, requiring new and unique decisions during the preparation stages. For the first time in over 30 years, we are seeing simultaneous decreases in water sales and record inflation impacting East Valley Water District (District). These headwinds have started to decrease over the past three months as we prepared the budget for the fiscal year. The District maintains strong financial flexibility to navigate these challenges and is meeting all established financial commitments. However, the District has needed to decrease its overall capital improvements and pull funds from the District’s reserve accounts. The financial challenges facing the District are the result of several factors. First, the Sterling Natural Resource Center (SNRC) is a decision made a decade ago to recycle the community’s wastewater and ensure water security for our District. The cost of constructing the $250 million project has required the District to carefully manage cash flows. Second, the District has faced significantly lower water sales due to wet weather, with a decrease of over 16% over the past two years. Finally, high inflation has impacted both overall operating expenses and capital improvement projects across the service area. Through the extraordinary actions of staff and the Board of Directors, the District has been able to make strategic adjustments to spending and balance the budget. The lengthy and transparent budget process began with the Board of Directors in Fall 2023 with strategic planning workshops to identify goals and objectives. In winter 2023, staff developed the Five-Year Work Plan update to identify specific goals and projects for each budget program spanning the upcoming five years. Finally, over the past three months, revenue projections, operating budgets, and capital improvement plans were presented at board meetings and Community Advisory Commission meetings. These public meetings were important for receiving public input to ensure the budget met the strategic objectives of the District. The goal throughout the public presentations was to create a budget that shifted the District’s financial focus from the completed SNRC construction to addressing the challenges of the District’s aging infrastructure. A cost-of-service analysis and 3-year rate adjustment were approved by the Board in May 2024. The rate adjustment and this budget provide a step in a new direction to replace aging water infrastructure and meet today’s challenges. This significant step in replacing pipelines and groundwater wells is the beginning of a multi- year program needed to ensure reliable service to our customers. As we prepared the budget, it is important to realize that challenges with rising construction costs, stagnant water sales, and aging infrastructure are not temporary and will continue to be addressed in future budgets. In February 2024, the Board approved changes to the District’s Reserve Funds Policy that will allow the District to address these challenges without cutting infrastructure investment. Building these reserves will take a few years but will provide flexibility for staff to address unforeseen budget challenges. The budget for FY 2024-25 is balanced and reflects the District’s commitment to maximizing resources to meet or exceed the expectations of District stakeholders. Operating expenses incurred by the District’s programs are allocated to the Water, Wastewater, and Water Reclamation (Reclamation) Funds based on the assumed benefit FY 2024-25 BUDGET | ii LE A D E R S H I P | P A R T N E R S H I P | S T E W A R D S H I P of services to each fund. The Water, Wastewater, and Water Reclamation Funds are self-supporting based on rates received for services provided. Total projected revenues for FY 2024-25 are $51,929,000. Over this past year, staff made significant progress on goals set through the Five-Year Work Plan and FY 2023- 24 program goals. Below is a list of completed accomplishments with additional activities listed under each program summary: • Commissioned the Sterling Natural Resource Center and held a community ribbon cutting celebration. • Implemented a new Fats, Oils and Grease (FOG) program to oversee and manage the discharge within the District’s sewer collection system. • Completed the rehabilitation of Plant 120 and commissioned the plant back into operation. • Reduced customer credit card transaction fees by 50%. • Implemented pilot water conservation rebate program. • Replaced approximately 800 lineal feet of waterline and replaced 40 broken isolation valves with District staff. • Implemented a new three-year labor agreement for all staff. • Began establishing SNRC debt service and other reserves required to comply with agreements. • Completed Rate Study and adjusted water and wastewater rates for the next three years. • Installed new AMI radio collectors to increase meter reads by 10%. The budget process is a lengthy effort that lasts for six months and includes dozens of meetings with staff and the Board. I’d like to thank Brian Tompkins, Rudy Guerrero, and Christi Koide from the Finance Department for putting together the budget. In addition, William Ringland and Roxana Morales from the Public Affairs Department compiled the budget and goals of each budget program into this document. I also want to recognize the Department Heads for everything they do to control costs while continuing to meet their goals and provide service to our customers. Finally, I’d like to thank the Board of Directors for their time and effort in providing the mission and vision for the District. The long-term focus set by the Board allows staff to make decisions and set policy, even with the temporary challenges we face each year. You have provided the resources necessary to maintain our strong credit rating, our position as a trusted community partner, and our status as a Top Workplace. I am confident in the future of the District to provide the highest level of water and wastewater service to our community with this budget, and I look forward to executing our strategic initiatives. Yours in Service, Michael Moore, P.E. General Manager/CEO Brian Tompkins Chief Financial Officer Jeff Noelte Director of Engineering & Operations Justine Hendricksen District Clerk Kerrie Bryan Director of Administrative Services Patrick Milroy Operations Manager William Ringland Public Affairs/Conservation Manager District Management Resolution 2024.10 EAST VALLEY WATER DISTRICT | iii Resolution 2024.10 WHEREAS, East Valley Water District (“District”) is a county water district organized and operating pursuant to California Water Code Section 30000 et seq.; and WHEREAS, the Board of Directors has reviewed and considered the Budget as presented for FY 2024-25, hereinafter referred to as the “Budget;” and WHEREAS, the Budget provides a comprehensive plan of financial operations for the District including an estimate of revenues and the anticipated requirements for expenditures, appropriations, and reserves for the forthcoming fiscal year; and WHEREAS, the Budget establishes the basis for incurring liability and making expenditures on behalf of the District; and NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the East Valley Water District as follows: Section 1. The Budget, and each and every part thereof, is hereby approved and adopted for the FY 2024-25; and Section 2. The provisions of this Resolution shall take effect on July 1, 2024. ADOPTED this 26th day of June 2024. Ayes: Directors: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Abstain: None Absent: None James Morales, Jr. Board President June 26, 2024 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2024.10 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held June 26, 2024. Michael Moore, P.E. Secretary, Board of Directors ATTEST: Michael Moore, P.E. Secretary, Board of Directors A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT APPROVING THE OPERATING AND CAPITAL BUDGETS FOR FY 2024-25 [PAGE LEFT BLANK] Intentionally FY 2024-25 BUDGET | iv EAST VALLEY WATER DISTRICT | 1 TRANSMITTAL LETTERfy 2023-24 IN T R O D U C T I O N The financial plan serves as a policy document, operations guide for programs, and as a means of transparent communication. introductionfy 2024-25 EAST VALLEY WATER DISTRICT | 1 FY 2024-25 BUDGET | 2 • Budget Guide • Statistical/Supplemental Information • District Vision • Organizational Structure • Industry Benchmarks Introduction Contents EAST VALLEY WATER DISTRICT | 3 BUDGET GUIDE The budget document is East Valley Water District’s (District) annual financial plan prepared by District staff and approved by the Governing Board. The financial plan serves as a policy document, operations guide for programs, and as a means of transparent communication. The intended audiences of the budget document are citizens, local businesses, creditors, governmental agencies, and other stakeholders. Budget Document Sections East Valley Water District’s Fiscal Year (FY) 2024-25 Operating and Capital Budgets provide customers, ratepayers, and members of the community with detailed information about the District’s programs and operations. The goal of the budget document is to provide transparency to the community regarding the services, programs, and operations of the District. The budget document consists of seven sections, including:  INTRODUCTION This section includes the Budget Guide on how to read the budget, Statistical/Supplemental Information, Organizational Structure, and District Vision.  FINANCIAL SUMMARY This section presents an in-depth Districtwide overview of the FY 2024-25 Budget, including methodology and principles to provide guidelines for the formation and consideration of the comprehensive annual budget.  WATER, WASTEWATER, AND RECLAMATION FUNDS Financial projections, assumptions and considerations for revenue, expenses, and operations are included in this section.  CONSOLIDATED FINANCIAL SCHEDULES This section is a comprehensive summary of the District’s Budget presented for the organization as a whole and for each of the District Funds. The budget represents actions needed to implement the District’s short-term and long-term goals and objectives. FY 2024-25 BUDGET | 4  PROGRAM SUMMARIES This section provides comprehensive information for each functional program within the District including their operational budget. Descriptions include highlights of accomplishments, key goals and objectives, and proposed Operating Budget for the specific Program. The FY 2024-25 Budget is organized into the following summary programs: • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Each program section includes: • Program Personnel: Explanation of authorized personnel allocated to each program including an organization chart. • Program Structure: Organization chart displaying the reporting for program personnel since supervisors may be allocated to different program funding. • Function: A basic description of the responsibilities of each program. • Goals & Objectives: Articulates the expectations for FY 2024-25 through specific goals and objectives. • Accomplishments: Highlights and milestones from FY 2023-24. • Significant Changes: Clarification of funding request differences compared to the previous year. • Levels of Service: Key Performance Indicators to measure program operations and achievement of the District’s Goals and Objectives. • Key Performance Indicators: These tables present measures that help the District define and evaluate a program’s performance. • Program Budget Detail: A detailed breakdown of the program expenditures by category or line item. Department Name Function Goals & Objectives Goals that directly support the District’s Five-Year Work Plan are noted in the various Program Summaries with the use of this icon. Accomplishments Program Budget Detail EAST VALLEY WATER DISTRICT | 5 Introduction  CAPITAL BUDGET This section presents the Capital Outlay expenditures and Capital Improvement Projects for the FY 2024-25 Budget.  GLOSSARY This section provides definitions for general terms, acronyms, and the Chart of Accounts used throughout the budget document. Budget Financial Information The District operates on a fiscal year, or budget time period, that begins on July 1 and ends June 30. The columns typically presented are: FY 2022-232022-23 ACTUALS Actual financial information for FY 2022-23 as reported in the Comprehensive Annual Financial Report. The actual financial information is reported in the budget document on a budgetary basis. FY 2023-242023-24 BUDGET The FY 2023-24 Budget was adopted by the Governing Board on June 23, 2023 and may also include any adjustments approved by the Governing Board at the Mid-Year Budget Review. FY 2023-242023-24 PROJECTED The FY 2023-24 Projected column reflects the adopted budget in addition to any amendments approved by the Governing Board during the fiscal year. This budget is prepared before the completion of the current year budget. The FY 2023-24 Projected column is also adjusted to reflect management’s estimate of what revenues and expenditures will be at the end of the fiscal year. FY 2024-252024-25 BUDGET This column initially reflects the FY 2024-25 “Proposed” Budget submitted by the General Manager/CEO. After the Governing Board reviews and approves the FY 2024-25 Budget, the information in the FY 2024-25 column changes, if necessary, to reflect the Governing Board’s actions. AMOUNT CHANGED AND %% CHANGE These columns provide the amount changed/percent change from the previous year’s budget to the newly proposed budget. FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PRESENTED TO East Valley Water District California For the Fiscal Year Beginning July 01, 2023 Executive Director GOVERNMENT FINANCE OFFICERS ASSOCIATION Distinguished Budget Presentation Award Finance Department East Valley Water District, California November 9, 2023 The Government Finance Officers Associationof the United States and Canada The Certificate of Recognition for Budget Preparation is presented by the Government Finance Officers Association to those individuals who have been instrumental in their government unit achieving a Distinguished Budget Presentation Award. The Distinguished Budget Presentation Award, which is the highest award in governmental budgeting, is presented to those government units whose budgets are judged to adhere to program standards. presents this CERTIFICATE OF RECOGNITION FOR BUDGET PREPARATION to Date: Executive Director Budget Awards The Government Finance Officers Association (GFOA) of the United States and Canada presented a Distinguished Budget Presentation Award and the California Society of Municipal Finance Officers (CSMO) presented the Excellence Award to the District for its annual budget for the fiscal year beginning July 1, 2023. In order to receive these awards, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. These awards are valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA and CSMFO to determine its eligibility for another award. FY 2024-25 BUDGET | 6 Award and recognition of the District’s annual budget is a testament to the organization’s dedication to fiscal excellence. It boosts internal and external confidence while setting a foundation for sustainable financial health. EAST VALLEY WATER DISTRICT | 7 This District serves over 108,000 people within the cities of Highland and San Bernardino, portions of the unincorporated County of San Bernardino, the San Manuel Band of Mission Indians, and Patton State Hospital. District Boundary Map District Headquarters 31111 Greenspot Road Highland, CA 92346 Sterling Natural Resource Center (SNRC) 25318 5th Street San Bernardino, CA 92410 Government The District is a California Special District established in 1954. The District has a five-member Governing Board elected by voters at-large to staggered four-year terms. The Governing Board represents the public’s interest as policy makers with regards to rate for service, policies, ordinances, and budget adoption. The District provides water and wastewater services to residents within its 30 Square mile area. This includes over 108,000 people within the cities of Highland and San Bernardino, portions of the unincorporated County of San Bernardino, the San Manuel Band of Mission Indians, and Patton State Hospital. STATISTICAL/SUPPLEMENTAL INFORMATION 210 210 santa a n a r i v e r sant a a n a r i v e r plun g e c r e e k plunge creek eld e r c r e e k cit y c r e e k city c r e e k sa n d c r e e k tw i n c r e e k tw i n c r e e k warm cr e e k cook creek mil l c r e e k San Bernardino Highland Seven Oaks Dam N DistrictHeadquarters SNRC Phillip R. Goodrich Governing Board Member James Morales, Jr. Chairman of the Board Ronald L. Coats Vice Chairman of the Board Chris Carrillo Governing Board Member David E. Smith Governing Board Member FY 2024-25 BUDGET | 8 Appointed by the Governing Board, the General Manager/CEO is responsible for overseeing daily operations and managing staff resources. The District is a rate-based organization that receives no tax-related revenue and operates in accordance with Division 12 of the California Water Code. The District’s service area includes the City of Highland, San Manuel Band of Mission Indians, Patton State Hospital, and portions of both the City and County of San Bernardino. Additionally, the District is within the sphere of influence of the Inland Valley Development Authority, which oversees the reuse of the former Norton Air Force Base. Water Sources The District has three sources for water, the Santa Ana River (SAR), the Bunker Hill Groundwater Basin (Bunker Hill Basin), and the State Water Project (SWP). The SAR starts with natural springs and snow melt high in the San Bernardino Mountains. Groundwater is drawn from the Bunker Hill Basin, a natural underground storage area made up of soil, sand, and gravel. A portion of the District’s surface water is locally supplied from the Santa Ana River. All surface water is treated at the District’s Water Treatment Plant. Wastewater Collection and Treatment The District is responsible for the collection and treatment of wastewater within the service area, including monitoring and maintaining 230 miles of sewer main that are part of the infrastructure. Wastewater flows are treated at the District’s Sterling Natural Resource Center facility located in San Bernardino. The facility became fully operational in January 2024 and treats up to eight million gallons of wastewater daily for recharge into the local Bunker Hill Basin. The SNRC provides drought-proof recycled water supply and allows hundreds of millions of gallons of water to be stored for use in dry years for beneficial reuse higher in the Santa Ana River watershed. Population Growth Population growth projections vary within the District’s service area due to a number of proposed developments with unspecified timing for completion. There are a number of developments currently under construction and planned for the future within the District’s service area including: • Construction and development of a new shopping center that includes fast food restaurants and retailer. • New residential development on the east-end of service area. • Logistic warehouses in the airport area. 80% Groundwater (Bunker Hill Basin) 4% 16% Surface Water(Imported State Water Project) Surface Water(Santa Ana River) $91,551 California Average $61,323$67,619 City ofSan BernardinoEast ValleyWater District $72,222 City of Highland $79,091 County ofSan Bernardino Average Household Income *Income information retrieved from census.gov. Introduction EAST VALLEY WATER DISTRICT | 9 Climate The climate in the cities of Highland and San Bernardino vary throughout the year, but overall is considered arid. On average, there are 283 days of sunshine per year. Temperatures average a daily high of 94 degrees in the summer and a daily low of 42 degrees during the winter. This area typically averages 13 inches of precipitation annually, mostly during the months of January through March. Education Residents within the District’s service area have access to award winning K-12 schools through the Redlands Unified School District (RUSD) and San Bernardino City Unified School District (SBCUSD). Higher education institutions located near the District’s service area include: California State University, San Bernardino; California Baptist University; Loma Linda University; University of California at Riverside; and University of Redlands. Community colleges within the region include: Crafton Hills College; Riverside City College; and San Bernardino Valley College. Hospital & Medical Facilities Hospital and medical facilities located in or near the District service area include Arrowhead Regional Medical Center, Loma Linda University Medical Center, Kaiser Foundation Hospital, Redlands Community Hospital, Community Hospital of San Bernardino, J. Pettis Veteran’s Administration Hospital, and St. Bernardine Medical Center. Additionally, there are a number of urgent care and outpatient facilities located throughout the region. Transportation Public transportation is available within the District service area through OmniTrans. With a variety of routes, OmniTrans provides busing services throughout the San Bernardino Valley, including cities of Highland and San Bernardino. Community members have access to the Metrolink commuter rail service, which provides long distance transportation to commuters from the San Bernardino area to major centers of employment including Los Angeles and Orange County. Interstate 210 and both State Route 18 and 330 traverse through the District’s boundaries. These roadways provide access to major transportation corridors including Interstates 215, 15, and 10; and State Routes 18, 38, 60, and 91. Public Safety The District serves members of the community within the cities of Highland and San Bernardino, unincorporated County of San Bernardino and San Manuel Band of Mission Indians. Within these communities, law enforcement is provided by the San Bernardino County Sheriff’s Department, City of San Bernardino Police Department, and San Manuel Department of Public Safety. Fire protection services are provided by the California Department of Forestry and Fire Protection (CalFire), San Bernardino County Fire Department, and the San Manuel Fire Department. Major Employers Major employment industries within the cities of Highland and San Bernardino include education, mental health services, public administration, health care, public safety, casinos, transportation, and construction. Strategic Planning Workflow The District has set out to be a world-class organization, with a focus not only on providing safe and reliable drinking water but enhancing and preserving the quality of life for our community. Through a series of planning measures, the Governing Board, staff, and the community have developed a District Vision that empowers the organization to be innovative, efficient, and effective. FY 2024-25 BUDGET | 10 A Five-Year Work Plan has been developed with an emphasis on the elements needed to clearly look to the future and account for daily operations of the District. This effort is designed to consider general policy direction and highlight priority projects that allow for the consideration of specific tasks necessary for implementation. The District now has a series of measurable guiding elements that have established varying degrees of direction for operational and planning decisions. The strategic planning workflow includes: the guiding principles, bridge measures, and performance measures. By setting clear expectations, all staff members are encouraged to be active participants in operations while looking for opportunities to make a positive impact on the community. District Vision Core Values guiding principles District Vision Core Values Goals & Objectives BRIDGE MEASURES Five-Year Work Plan PERFORMANCE MEASURES Daily Operations IndustryBenchmarks Budget IndividualPerformanceGoals ENHANCE & PRESERVE THE QUALITY OF LIFE FOR OUR COMMUNITY THROUGH INNOVATIVE LEADERSHIP AND WORLD-CLASS PUBLIC SERVICE. LEADERSHIP Motivating a group of people to act toward achieving a common goal or destination. PARTNERSHIP Developing relationships between a wide range of groups and individuals through collaboration and shared responsibility. STEWARDSHIP Embracing the responsibility of enhancing and protecting resources considered worth caring for and preserving. EAST VALLEY WATER DISTRICT | 11 Introduction Goals and Objectives Implement Effective Solutions Through Visionary Leadership Maintain a Commitment to Sustainability, Transparency, and Accountability Deliver Public Service with Purpose While Embracing Continuous Growth Promote Planning, Maintenance and Preservation of District Resources • Identify Opportunities to Optimize Natural Resources • Maximize Internal Capabilities Through Ongoing Professional Development • Strengthen Regional, State and National Partnerships • Encourage Performance Based Results Through Staff Empowerment • Practice Transparent and Accountable Fiscal Management • Utilize Effective Communication Methods • Pursue Alternative Funding Sources • Provide Quality Information to Encourage Community Engagement • Advance Emergency Preparedness Efforts • Strive to Provide World-Class Customer Relations • Promote a Positive Organizational Culture • Embrace an Environment of Active Learning and Knowledge Sharing • Develop Projects and Programs to Ensure Safe and Reliable Services • Enhance Planning Efforts that Respond to Future Demands • Dedicate Efforts Toward System Maintenance and Modernization • Enable Fact-Based Decision Making Through State-of-the-Art Data Management FY 2024-25 BUDGET | 12 District Spotlight A glance at the District’s operational highlights for FY 2023-24 is shown below. This summary includes key metrics to understand the overall effort required to uphold water quality and infrastructure maintenance over a 12-month period. The budget reflects the commitment of allocating resources to meet the needs of District stakeholders. Miles of Wastewater Mains 230 Average Gallons of Wastewater Collected 6,000,000 WASTEWATER SYSTEM AT-A-GLANCE Miles of Wastewater Monitored by Video 63 Miles of Wastewater Main Cleaned 140 Manholes 5,100 WATER SYSTEM AT-A-GLANCE Average Gallons of Water Produced Daily Gallons of Water Storage Water Samples Collected 3,500 Active Groundwater Wells 12 Miles of Water Main 300 Feet of Water Main Replaced 800 Water Leaks Repaired 315 28,977,000 14,125,000 Hydrants Repaired, Replaced, Inspected 686 Hydrants Flushed 518 EAST VALLEY WATER DISTRICT | 13 es t a b l i s h e s p r i o r i t i e s th e a n n u a l b u d g e t margin margin Legal Counsel CUSTOMER SERVICE REPRESENTATIVE III CUSTOMER SERVICE REPRESENTATIVE II (4) (2) Management General StaExecutive Management Elected Ocials LEGEND CHIEF FINANCIAL OFFICER WASTEWATER TREATMENT PLANT OPERATOR IIII FINANCE SUPERVISOR INFORMATION TECHNOLOGY MANAGER ACCOUNTANT SR. ACCOUNTING TECHNICIAN ACCOUNTING TECHNICIAN BUSINESS SERVICES COORDINATOR CUSTOMER SERVICE SUPERVISOR NETWORK ADMINISTRATOR INFORMATION TECHNOLOGY ANALYST INFORMATION TECHNOLOGY INTERN PT * All positions are full-time unless noted otherwise as part time (PT). WATER RECLAMATION MANAGER SR. WASTEWATER TREATMENT PLANT OPERATOR (7) CUSTOMER SERVICE REPRESENTATIVE I (PT) FY 2024-25 BUDGET | 14 Organizational Structure margin margin Ratepayers/Community Members ADMINISTRATIVE SPECIALIST DIRECTOR OF ADMINISTRATIVE SERVICES SR. TREATMENT PLANT OPERATOR FACILITIES MAINTENANCE WORKER II FACILITIES MAINTENANCE WORKER SR. WATER PRODUCTION OPERATOR WATER PRODUCTION OPERATOR II WATER PRODUCTION OPERATOR III SR. FIELD SERVICE WORKER FLEET MAINTENANCE COORDINATOR STOREKEEPER/ BUYER WAREHOUSE FIELD SERVICE WORKER III FIELD SERVICE WORKER II FIELD SERVICE WORKER I METER TECHNICIAN II GENERAL MANAGER/CEO DISTRICT CLERK GOVERNING BOARD (5) (8) (2) (3) (3) (5) (2) DIRECTOR OF ENGINEERING & OPERATIONS HUMAN RESOURCES COORDINATOR WATER PRODUCTION SUPERVISOR FIELD SERVICE SUPERVISOR SENIOR ENGINEER (2) PUBLIC AFFAIRS/ CONSERVATION MANAGER SR. ADMINISTRATIVE ASSISTANT FIELD SERVICE SUPERVISOR FACILITIES AND FLEET SUPERVISOR PUBLIC AFFAIRS COORDINATOR PUBLIC AFFAIRS SPECIALIST CONSERVATION COORDINATOR (2) WATER QUALITY WORKER PT WATER & WASTEWATER COMPLIANCE SUPERVISOR WATER QUALITY TECHNICIAN OPERATIONS MANAGER margin margin Legal Counsel CUSTOMER SERVICE REPRESENTATIVE III CUSTOMER SERVICE REPRESENTATIVE II (4) (2) Management General StaExecutive Management Elected Ocials LEGEND CHIEF FINANCIAL OFFICER WASTEWATER TREATMENT PLANT OPERATOR IIII FINANCE SUPERVISOR INFORMATION TECHNOLOGY MANAGER ACCOUNTANT SR. ACCOUNTING TECHNICIAN ACCOUNTING TECHNICIAN BUSINESS SERVICES COORDINATOR CUSTOMER SERVICE SUPERVISOR NETWORK ADMINISTRATOR INFORMATION TECHNOLOGY ANALYST INFORMATION TECHNOLOGY INTERN PT * All positions are full-time unless noted otherwise as part time (PT). WATER RECLAMATION MANAGER SR. WASTEWATER TREATMENT PLANT OPERATOR (7) CUSTOMER SERVICE REPRESENTATIVE I (PT) EAST VALLEY WATER DISTRICT | 15 Introductionmargin margin Ratepayers/Community Members ADMINISTRATIVE SPECIALIST DIRECTOR OF ADMINISTRATIVE SERVICES SR. TREATMENT PLANT OPERATOR FACILITIES MAINTENANCE WORKER II FACILITIES MAINTENANCE WORKER SR. WATER PRODUCTION OPERATOR WATER PRODUCTION OPERATOR II WATER PRODUCTION OPERATOR III SR. FIELD SERVICE WORKER FLEET MAINTENANCE COORDINATOR STOREKEEPER/ BUYER WAREHOUSE FIELD SERVICE WORKER III FIELD SERVICE WORKER II FIELD SERVICE WORKER I METER TECHNICIAN II GENERAL MANAGER/CEO DISTRICT CLERK GOVERNING BOARD(5) (8) (2) (3) (3) (5) (2) DIRECTOR OF ENGINEERING & OPERATIONS HUMAN RESOURCES COORDINATOR WATER PRODUCTION SUPERVISOR FIELD SERVICE SUPERVISOR SENIOR ENGINEER(2) PUBLIC AFFAIRS/ CONSERVATION MANAGER SR. ADMINISTRATIVE ASSISTANT FIELD SERVICE SUPERVISOR FACILITIES AND FLEET SUPERVISOR PUBLIC AFFAIRS COORDINATOR PUBLIC AFFAIRS SPECIALIST CONSERVATION COORDINATOR (2) WATER QUALITY WORKER PT WATER & WASTEWATER COMPLIANCE SUPERVISOR WATER QUALITY TECHNICIAN OPERATIONS MANAGER The District’s organizational structure is essential to achieving its mission by ensuring clear roles, responsbilities, and communication channels along with promoting accountability and the efficient use of resources. FY 2024-25 BUDGET | 16 Program Structure The District has built a world-class team of individuals committed to the Agency Vision and Core Values. The Organizational Chart reflects the current 75 authorized positions in relation to the chain of command structure. It is important to note that the District fosters a collaborative work environment which encourages communication and cooperation between different programs. A more detailed look at staffing can be viewed within each individual Program. The District currently has 18 programs, which are overseen by various members of the Executive Management Team. This chart reflects the organizational structure based on Program oversight. Program Level Operational Responsibilities Overview Ratepayers/ Community The individuals, businesses and stakeholders receiving services from the District. Governing Board The Governing Board is the legislative body of the organization. Comprised of five members elected at-large to four-year staggered terms of office. DISTRICT CLERK General Administration General Administration is responsible for ensuring the District’s business and daily operations activities are performed following Federal, State, and Governing Board approved policies. The General Manager/CEO provides daily oversight for interagency relations for advancing the District’s initiatives. Ratepayers/Community Members Governing Board General Manager/CEO * This program is overseen by a Director position but managed by a member of the Executive Team. Public Aairs Conservation Public Aairs/ Conservation Manager District Clerk Administration Director of Engineering & Operations Engineering *Operations *Water Reclamation Director of Administrative Services HumanResources &RiskManagement Chief Financial Ocer Finance Customer Service InformationTechnology Operations Manager Meter Services Water Production Water Treatment Water Quality Water Maintenance Wastewater Collection Facilities Maintenance Fleet Maintenance WastewaterTreatment Water Reclamation Manager EAST VALLEY WATER DISTRICT | 17 Introduction DIRECTOR OF ADMINISTRATIVE SERVICES Human Resources & Risk Management Human Resources & Risk Management is responsible for administering programs to attract and retain a diverse and qualified workforce. This Program also oversees the District safety program to ensure staff maintain a safe work environment. Additionally, this Program is responsible for managing the District’s pathway and risk management programs. PUBLIC AFFAIRS/CONSERVATION MANAGER Public Affairs Public Affairs oversees internal and external communication programs consistent with the District’s Vision and guiding principles. Through community and media relations, the Program provides effective and strategic communications to various stakeholders. The Program is also responsible for grant writing, and facility rental programs. Conservation Conservation is responsible for overseeing programs that facilitate and encourage sustainable water use throughout the District. Additionally, this program is responsible for communicating conservation benchmarks to various regulatory agencies, tracking and monitoring legislative affairs and advocating on behalf of the District’s legislative platform. CHIEF FINANCIAL OFFICER Finance & Accounting Finance and Accounting oversees the business operations of the District in order to provide accountability and adequate control over the use of District funds. Information Technology Information Technology oversees the District’s technology infrastructure to support essential business and operational functions. The functions utilize industry specific software programs required to meet agency needs. Customer Service Customer Service provides the community with prompt, courteous, and world- class customer relations. DIRECTOR OF ENGINEERING & OPERATIONS Engineering The Engineering Program responsibilities include infrastructure planning, maintaining a safe and reliable water supply, and ensuring compliance with Federal and State regulations. The Program oversees water, wastewater, and water reclamation capital projects. Water Reclamation The Water Reclamation Program is responsible for treating and disinfecting eight million gallons of wastewater per day (MGD). Reclamation of wastewater generated by District customers will also convert solid waste to electricity. FY 2024-25 BUDGET | 18 OPERATIONS MANAGER Meter Services The Meter Service program maintains a network of approximately 23,000 Advanced Metering Infrastructure (AMI) meters. The Program conducts routine maintenance, testing and replacement of meters to ensure billing is accurate. Water Production Water Production is responsible for the daily monitoring and operations of the entire water production system to ensure preventative maintenance of all pumps, motors, wells, boosters, reservoirs, pressure regulating valves (PRVs), hydro-pneumatic plants, and the Supervisory Control and Data Acquisition (SCADA) system. Water Treatment Water Treatment is responsible for management of three different sources of supply used by the District. The Program is responsible for the operation of Plant 134, a Surface Water Treatment Plant, and two unique groundwater treatment facilities at Plant 28 and Plant 39. Water Quality Water Quality is responsible for ensuring District compliance with State and Federal Drinking Water Regulations. This program manages backflow prevention, water sampling, Fats, Oils, and Grease Program (FOG), and the fire hydrant flushing programs. Water Maintenance The Water Maintenance Program is responsible for the repair and replacement of the District’s 300 miles of water pipeline. Water Maintenance coordinates with Engineering and Water Production to install water service lines, fire hydrants, meters, valves, and all related equipment. Wastewater Collection The Program’s purpose is prevention of wastewater spillage and leaks. This is accomplished by routine inspections, cleaning, repairs, and replacements of the District’s 230 miles of collection pipelines. Facilities Maintenance Facilities Maintenance is responsible for the maintenance of all District facilities. The Program oversees administration buildings, water facilities, District-Owned vacant properties, and easements. Fleet Maintenance Fleet Maintenance is responsible for the preventative maintenance program for all District vehicles and heavy equipment. This includes the procurement of fleet items and maintain compliance with State and Federal air quality rules and regulations. SEWER EAST VALLEY WATER DISTRICT | 19 Introduction Budget Summary by Program The sum of many pieces makes the whole, and through 18 programs the District is able to provide world-class services to the community it serves. The graphic below displays the budget allocation for each program within the FY 2024-25 Operating and Capital Budgets. To align resources with District goals and objectives, it is crucial to strategically staff and budget for the appropriate number of personnel. Water Reclamation 20% Water Maintenance 11% WaterProduction 16% HumanResources 9% Information Technology 5% Water Treatment 4% Finance &Accounting 4% Public Aairs 4% Engineering 3% GeneralAdministration 3% Customer Service 6% Facilities Maintenance 6% Board 1% Water Quality1% Meters 1% Conservation2% 2% 2%Fleet Maintenance Wastewater Collection FY 2024-25 BUDGET | 20 re s p o n s i b l e u s e o f r e s o u r c e s th e a n n u a l b u d g e t IN D U S T R Y BE N C H M A R K S EAST VALLEY WATER DISTRICT | 21 INDUSTRY BENCHMARKS Program Summaries Section Industry Benchmarks allow East Valley Water District to examine itself in comparison with other utilities across the United States. FY 2024-25 BUDGET | 22 EAST VALLEY WATER DISTRICT | 23 The data presented in the following tables are sourced from the American Water Works Association’s (AWWA) 2022 Utility Benchmarking Program, neighboring water districts, and the U.S. Environmental Protection Agency (U.S. EPA). The District’s data includes the previous completed fiscal years. By leveraging these benchmarks, the District can enhance its operations, foster trust and transparency with stakeholders, and ensure that it continues to invest resources in building a safe and reliable public utility. Operating Fund Target Level The operating fund target level pertains to the desired amount of funds that the District aims to have available in order to sustain day-to-day operations and ensure financial stability. The District’s Reserve Funds Policy No. 7.2 establishes both maximum and minimum levels, which serve the purpose of guaranteeing adequate liquidity and covering operational expenses. The District is committed to delivering world-class service to its community, customers, and stakeholders. As part of its continuous improvement efforts, the District has established Industry Benchmarks that offer valuable insights into its performance relative to others in the industry. INDUSTRY BENCHMARKS 40 80 120 160 200 Da y s o f O p e r a t i o n District-Wide Days of Operations * Target Level Minimun* Target Level Maximum FY 2020-21 FY 2021-22 FY 2022-23 120 90 141 124 207 FY 2024-25 BUDGET | 24 Capital Replacement Fund Balance The graph illustrates the restricted funds for capital replacement. The Capital Fund Target Balance is set based upon the District’s adopted Reserve Funds Policy No. 7.2 to ensure the District has an appropriate level of financial reserves, while allowing for investment in infrastructure projects and optimizing long-term rehabilitation opportunities. Miles of Sewer Cleaned The chart provides an overview of the number of miles of sewer lines cleaned. The District aims to clean at least 50% of the system per fiscal year with the U.S. EPA setting a target of 30%. $2M $4M $6M $8M $10M $12M $14M Restricted for Future Capital Expansion Project at Year-End Capital Replacement Fund Target Balance FY 2020-21 FY 2021-22 FY 2022-23 1010.34 10.34 10 10% 20% 30% 40% 50% 60% 70% 80% 90% Pe r c e n t C l e a n e d % of System Cleaned per Year (Actual) U.S. EPA % of System Cleaned per Year (Target) FY 2020-21 FY 2021-22 FY 2022-23 30% 69.2 % 94.3 % 76.7 % EAST VALLEY WATER DISTRICT | 25 Introduction Main Leaks The chart displays the total number of main line leaks per 100 miles of water. The data includes AWWA’s 2022 benchmark information to compare water systems across the United States. Water Affordability The chart presents the affordability of the District’s water by comparing it to the U.S. EPA 2.5% threshold. FY 2020-21 FY 2021-22 FY 2022-23 20 25 30 35 40 45 50 Ma i n L e a k s P e r 1 0 0 M i l e s Leaks per 100 Miles of Pipe AWWA 2022 Combined Utilities WaterOperations Leaks per 100mi. of Pipe (Target) 8.1 29.67 29.33 50.67 0.50% 1.00% 1.50% 2.00% 2.50% Pe r c e n t a g e o f Ho u s e h o l d I n c o m e Water Service Aordability (% of MHI) U.S. EPA (% of MHI) Target State Water Board Threshold (% of MHI) FY 2020-21 FY 2021-22 FY 2022-23 2.50% 1.50%1.19%1.19% 1.32% FY 2024-25 BUDGET | 26 Staffing Levels The graph highlights the staffing levels of the District in comparison to neighboring water districts. The data is presented in relation to the total number of accounts per employee, offering insights into the efficiency and workload distribution of the District’s workforce relative to its counterparts. Wait Time The chart illustrates the call wait time experienced by District customers when contacting customer service representatives. It also includes a comparison with other utilities using the 2022 AWWA benchmarking data, offering insights into the District’s performance in terms of customer service responsiveness in relation to industry standards. 50 100 150 200 250 300 Ac c o u n t s P e r E m p l o y e e Customer Accounts per Employee Neighboring Agencies Average Accounts per Employee FY 2020-21 FY 2021-22 FY 2022-23 212 326 287 285 10 20 30 40 50 60 70 80 Av e r a g e Q u e u e T i m e Avg Queue Time AWWA 2022 Combined UtilitiesWait Time Target FY 2020-21 FY 2021-22 FY 2022-23 78 25 32 37 EAST VALLEY WATER DISTRICT | 27 FI N A N C I A L S U M M A R Y The annual budget is an opportunity to establish priorities for the fiscal year, identify means to evaluate results, and ensure that the planned operations and capital projects responsibly use District resources. financial summaryfy 2024-25 • Financial Policies • Budget Process • Current & Proposed Budget Cycle Calendar • Basis of Budgeting • Fund Structure • Fund/Program Relationship • Budget Summary • Revenue Summary • Expenditure Summary • Debt Overview • Net Position/Fund Equity • Long-Range Financial Plan Financial Summary Contents FY 2024-25 BUDGET | 28 FINANCIAL POLICIES East Valley Water District financial management policies provide a basic framework for the overall fiscal management of the District. The policies represent a foundation for addressing changing circumstances and conditions, and assist in the decision-making process. Financial policies represent guidelines for evaluating both current activities and proposals for future programs. They also reflect long-standing principles and practices, which have enabled the District to maintain its financial stability. Policies are reviewed annually to ensure the guidelines represent a realistic, current framework for policy decisions. Operating and Capital Budget Policy PURPOSE AND SCOPE The purpose of this policy is to provide guidelines to assist in the formulation and consideration of a comprehensive annual budget, one of the most important financial activities the District undertakes each year. Those guidelines include a Strategic Plan and Capital improvement Program (CIP), which assist in completing financial planning cycles that deliver efficient and effective public services. This policy applies to all funds under the budgetary and fiscal control of the Governing Board. BALANCED BUDGET The District will adopt a balanced budget for each fund this policy covers, where the sum of estimated revenues and use of reserves is equal to or greater than current expenditures. Expenditures will include operating expenses, debt service, and the Budget’s contribution to the CIP. Short-term operating deficits will be mitigated either by raising rates and fees or cutting costs. The use of one-time revenues and development fees for the funding of operating costs is not permitted, and reserves may only be used for the purpose for which they were intended in accordance with the District’s Designated Funds Policy. The budget development process is outlined on pages 39-41. Investment Policy PURPOSE AND SCOPE The purpose of this policy is to establish guidelines for the prudent investment of District funds in conformance with California Government Code (CGC) requirements. The policy applies to all funds under direct authority of the District, which does not include funds held in trust for the District’s retirement plans and post-employment health benefits. EAST VALLEY WATER DISTRICT | 29 FY 2024-25 BUDGET | 30 OBJECTIVES CGC §53600.5 states that, when investing and managing public funds, the primary objectives, in priority order, of the District’s investment activities shall be: • Safety — Safety of principal is foremost, therefore, investments shall be undertaken in a manner that seeks to preserve capital, while mitigating risks such as interest rate risk and credit risk. • Liquidity — The investment portfolio shall remain sufficiently liquid to enable the District to meet all operating requirements that can reasonably be anticipated. • Return on Investment — The investment portfolio shall be designed for attaining the best yield while keeping in mind that return is secondary to the objectives of safety and liquidity. DELEGATION OF AUTHORITY The authority of the District’s Governing Board to invest District funds is derived from CGC § 53601. CGC § 53607, allowing the Governing Board to delegate that authority to a Treasurer. The District’s Chief Financial Officer has historically been selected to serve as this delegated authority. This delegation expires and may be renewed annually, by Board resolution, in conjunction with the annual review of the investment policy. AUTHORIZED INVESTMENTS The District is empowered by CGC §53600 et. seq. to invest in certain types of investments. The District policy is more restrictive than the CGC regarding allowable investments due to the size of the District’s investment portfolio and limited staff resources available to manage invested funds. SAFEKEEPING AND INTERNAL CONTROL To protect against potential losses caused by the collapse of a security dealer, all book-entry securities are kept in safekeeping by a third-party bank trust department, acting as agent for the District under the terms of a custody agreement. Internal controls have been established to help ensure assets are protected from loss, theft or misuse. Controls include separation of transaction authority from record-accounting, and confirmation of telephone transactions for investments and wire transfers. REPORTING In accordance with CGC §53646, the Chief Financial Officer will prepare, and render to the Governing Board, a quarterly investment report within 30 days of the end of each quarter. The report shall list types of investments, maturity, par and market values of each investment, transactions occurring during the quarter, and identification of funds managed by a third-party. Reserve Funds Policy PURPOSE The District recognizes that fiscal responsibility requires anticipating, and preparing for, unforeseen events, in addition to ensuring sufficient funding is available for current operating, capital, and debt service needs. To that end, the District has adopted a Reserve Funds Policy as part of prudent financial planning and to ensure sufficient funding for current and future needs. Financial Summary EAST VALLEY WATER DISTRICT | 31 GENERAL PROVISIONS The following provisions and principles are established for building and utilizing reserve funds: Interest: Interest income will be credited to reserve funds until maximum target levels have been reached. Once a fund reaches the established maximum, interest will be allocated to other funds. Funding Priority: Fund balances are reviewed annually to determine whether maximum target levels have been reached. Operating reserves will be funded first. When Operating reserves are at their target levels, Capital reserves will be funded. The Governing Board will determine how excess monies will be allocated after reserves are at their maximum levels. Pay Go Versus Debt: For funding of capital acquisitions and improvements, the District will analyze the use of reserves and/or issuing debt to determine the optimal funding strategy. Current and future liquidity positions will also be considered. TYPES OF RESERVES The District has established and will strive to maintain the following funds: OPERATING RESERVE FUND The Operating Reserve is used for unanticipated operating expenses. This fund is designated by the Governing Board to maintain working capital for current operations and to meet routine cash flow needs. 1. Target Level – Funding shall be targeted at a minimum amount equal to 90 days of the District’s budgeted total operating expenses, and the maximum amount shall not exceed 120 days of the budgeted total operating expenses. 2. Events or Conditions Prompting the Use of the Fund – Upon Governing Board authorization, this fund may be routinely utilized by staff to cover temporary cash flow deficiencies caused by timing differences between revenue and expenses and extraordinary decreases in revenues and unexpected increases in expenses. 3. Periodic Review Dates for Balances – Fund balances and target level will be reviewed by staff and the Governing Board during the preparation and approval of the annual budget. Operating Reserve Fund CapitalReplacementReserve Restricted Reserve (Includes debt proceeds, customer deposits and developer fees.) FY 2024-25 BUDGET | 32 CAPITAL REPLACEMENT RESERVE All Funds will maintain a reserve for the replacement of capitalized assets when they reach the end of their useful lives or in the unexpected need for emergency repair. The source of reserves will be user fee revenue from the respective fund. 1. Target Level – The minimum target level should be equal to twice the five-year average of the District’s annual Capital Improvement Plan plus one percent of the system asset value. The maximum balance shall not exceed the projected needs for five years according to the District’s Capital Improvement Plan plus two percent of the system asset value. 2. Events or Conditions Prompting the Use of the Fund – Staff will recommend assets to be replaced during the Capital Budget presentation. As projects are approved, funds will be appropriated from undesignated funds or available revenues. Emergency reserves will be used to begin repair of the water and sewer systems after a catastrophic event or other unforeseen circumstances. 3. Periodic Review Dates for Balances – Fund balances and projected improvement projects will be reviewed by staff and the Governing Board during the preparation and approval of the annual budget. RESTRICTED RESERVE Restricted reserves shall be segregated and limited in use to specific and designated purposes as defined by law or adopted ordinance, contractual agreement, or as a condition or covenant of borrowing. 1. Bond Proceeds – Typically consist of construction fund monies, and a debt service reserve. a. Target Level – The debt service reserve requirement, if applicable, is established at the time of issue. b. Events or Conditions Prompting the Use of the Fund – Construction fund monies must be spent on applicable projects, while the debt service reserve can only be used in the event of a shortfall of pledged revenues. 2. Development Fees – Consists of capacity fees paid by developers to buy into the infrastructure system paid for by the investment of existing customers. a. Target Level – Capacity fees are collected to pay for facility additions or improvements to support demands on the system by new delopment. b. Events or Conditions Prompting the Use of the Fund – Capacity fees may be used for Capital Improvement Projects necessitated wholly, or in part, by new development. Debt Policy The purpose of this policy is to establish guidelines for the issuance and management of District debt, and to provide guidance for decision makers with respect to options available for financing infrastructure, and other capital projects, so that the most prudent, equitable, and cost-effective financing can be chosen. STANDARDS FOR USE OF DEBT FINANCING When appropriate, the District will use long-term financing to: • Achieve an equitable allocation of capital costs/charges between current and future system users; • Provide more manageable rates in the near and medium term; and • Maintain minimum rate volatility. The District will not construct or acquire a facility if it is unable to adequately provide for the subsequent annual operation and maintenance costs of the facility throughout its expected life. In addition, capital projects financed through debt will not be financed for a term longer than the expected useful life of the project. EAST VALLEY WATER DISTRICT | 33 Financial Summary METHODS OF FINANCING The Finance Program will investigate all possible project financing alternatives including, but not limited to: annual operating revenue, reserves, bonds, loans, and grants. When applicable, development fees will be used to pay for increased capital costs resulting from new development. The District may legally issue short and long-term financing using the following debt instruments: COMPLIANCE The use of bond proceeds must be monitored to ensure compliance with all Internal Revenue Code arbitrage rebate requirements, and requirement under California Government Code §8855. The District is also responsible for verifying compliance with all undertakings, covenants, and agreements of each debt issue, typically including: • Annual appropriations of revenue to meet debt service payments; • Timely transfer of debt service payments to the Trustee; • Compliance with insurance requirements; and • Compliance with rate covenants. GOVERNING BOARD DISCRETION This policy is intended to serve as a guide and in no way restricts the ability of the District Governing Board to review proposed rate actions, debt issuances, or other actions of substance to the District. Inter-Fund Borrowing Safety of principal is foremost, therefore, investments shall be undertaken in a manner that seeks to preserve capital while mitigating risks such as interest rate risk and credit risk. Lines of Credit May be considered as short-term borrowing. The Chief Financial Officer shall determine when it is prudent to recommend that the District enter into an agreement with a commercial bank or other financial institution for the purpose of acquiring a line or letter of credit. Capital Lease Debt May be used for equipment purchases where cost exceeds $50,000 and financing terms are cost effective. State Revolving Fund (SRF) Loans Based on availability, loans are low or zero interest for water and wastewater infrastructure projects with a term of 20 to 30 years. Joint Powers Agency Revenue Bonds Financing may be obtained through the issuance of debt under a joint exercise of powers agreement with such debt payable from amounts paid by the District under a lease, installment sale agreement, or contract of indebtedness. Refunding Revenue Bonds The District may issue refunding revenue bonds to refund District indebtedness pursuant to the State of California local agency refunding revenue bond law (Title 5 of the California Government Code). FY 2024-25 BUDGET | 34 st r a t e g i c p l a n n i n g th e a n n u a l b u d g e t EAST VALLEY WATER DISTRICT | 35 BUDGET PROCESS The Budget reflects direction from the Governing Board as established by the District Vision and communicated to District staff through various meetings and workshops. The purpose of this budget document is to communicate the District’s financial priorities with citizens, local businesses, creditors, rating agencies, local agencies, stakeholders, and District staff. The FY 2024-25 Budget represents guidelines established to address the District’s short-term and long-term goals and objectives. This document also demonstrates the District’s ability to use financial resources for completing critical capital projects for current and future customers as well as the District’s commitment to meet its financial obligations. Staff is confident that the financial framework outlined in the FY 2024-25 Budget will allow the District to deliver reliable, high-quality water, wastewater collection, and water reclamation services to its customers in a prudent and sustainable manner. Each year, administrative and operational program managers establish Goals and Objectives in support of the District’s Five-Year Work Plan, which upon adoption by the Governing Board, provide clear direction to staff regarding District priorities. Progress toward accomplishing established goals is measured throughout the fiscal year and reported to the Governing Board. Moreover, in developing the budget, staff utilized the District Vision for prioritizing District resources for operational and capital activities. Stakeholder Input The District has established a Community Advisory Commission (CAC) which meets regularly at publicly noticed meetings and Governing Board workshops, to discuss significant activities of the District, including development of the goals and objectives and Five-Year Work Plan. Members of the CAC are community leaders who donate their time to provide input to staff on agenda items. District Vision Five-YearWork Plan DevelopProgram Goalsand Objectives Adopt Budget Monitor Programs andAdjust asNecessary Establish KeyPerformance Indicators and Estimate Costs FY 2024-25 BUDGET | 36 District Vision To help ensure consistent purpose, the District has adopted a comprehensive statement that serves as a guide for the decision making process throughout the organization. This element of the Strategic Plan remains consistent year-to- year. The District Vision includes the District’s Vision statement, Core Values, and Agency Goals and Objectives. Five-Year Work Plan The District has adopted a Five-Year Work Plan identifying a series of long-term objectives that link management and staff work efforts to the District’s Strategic Plan. Objectives in the Five-Year Work Plan have estimated completion dates ranging from 3 to 20 years and present the core work efforts to which District financial and human resources will be dedicated. The Five-Year Work Plan will be revised annually to reflect progress made on complex objectives, status of long-range or cyclical planning measures, and external considerations that require a significant response or operational adjustment. The Five- Year Work Plan was presented to the Governing Board in May, then adopted as Program Goals in relevant Programs and Capital Budgets. Develop Program Goals and Objectives Each program manager is tasked with developing achievable and measurable goals and objectives to be implemented in a single fiscal year. This endeavor clearly identifies the planned efforts of the program for the given period, links the program’s efforts to the Five-Year Work Plan when possible, and allows program employees to propose/establish individual goals that support the District’s long-term goals and vision. Program Goals and Objectives were presented to the Governing Board and public at a public workshop in April 2024. •District Vision •Core Values •Goals & Objectives GuidingPrinciples •Industry Benchmarks •FY 2024-25 Operating and Capital Budgets •Individual Performance Goals PerformanceMeasures •Five-Year Work Plan BridgeMeasures Every January, the budget process begins with the Governing Board creating and adopting the Five-Year Work Plan, which serves as the District’s guiding strategy plan spanning over the course of multiple years. District sta will then develop the milestones and objectives needed to meet the Five-Year Work Plan goals within the District’s financial forecasts. The eort allows for a strategic planning process through goal setting and planning, while considering ongoing operational needs in the development of the program and capital expenses. Scan this QR code to view a copy of the 2024-25 Five-Year Work Plan. EAST VALLEY WATER DISTRICT | 37 Establish Key Performance Indicators & Estimate Costs To assess the organization’s productivity and effectiveness, unique key performance indicators were utilized as a quantitative measure. Cost estimates reflect the anticipated expenses for accomplishing each program’s day-to-day operational tasks, special projects and overall Program Goals. Once this effort has been completed, expenses can be compared to revenue projections. In situations where expenses are projected to exceed revenues, staff works collaboratively to reevaluate activities to fit within available funding. Adopt Budget The final budget document is assembled, including projected revenues, expenditures, and funding of all Goals and Objectives proposed by Program Managers if possible. The document is presented to the District Governing Board at the first regular meeting in June for discussion. Barring any revisions or corrections, the budget is agendized at the second Board meeting in June for adoption. A hard copy version of the final budget document is available to the public on request or can be viewed in its entirety digitally on the District website. To provide an opportunity for discussion and participation, the budget is presented to the Governing Board in phases at a series of three public meetings. In addition, the information is presented during one public meeting of the Community Advisory Commission. The annual budget must be adopted by June 30 in order to begin the new fiscal year on July 1. Program Monitoring & Budget Adjustments In January of each year, District management meets to analyze revenues and spending to determine whether realized revenue has exceeded revenue projections to the extent that additional program services or capital projects can be proposed, and to determine whether transfers between budget line items are necessary to ensure that budget limitations are not exceeded. Given that the budget is developed based on projections, every program monitors monthly expenses. Each quarter, the budget-to-actuals are reviewed by staff to allow for an opportunity to take formal budget adjustments to the Governing Board for consideration. Consistent budget review eases the transition of programs from year-to-year. Requests for budget adjustments are submitted by Program Managers to Executive Management for review, who then forward the requested adjustments to Finance for incorporation into proposed budget amendments to be presented to the Governing Board at a Mid-Year Budget Review in February. When possible, adjustments have no net effect on the original budget balance unless additional revenue is available. However, if revenue shortfalls or unanticipated costs are realized, and transfers between line items cannot meet the projected deficit, a recommendation to defer capital projects or draw on reserves is usually required to meet the shortfall. All proposed changes are presented to the Governing Board at a Mid-Year Budget Review. Operating under the principles of transparency, the District takes steps to make financial reports reader-friendly and easily accessible to the public. Financial Summary EAST VALLEY WATER DISTRICT | 37 FY 2024-25 BUDGET | 38 Current & Proposed Budget Cycle Calendar June 26, 2024 FY 2024-25 Budget Adoption November 13, 2024 First Quarter FY 2024-25 Budget Review at Public Board Meeting January 23, 2025 Budget Meeting to Distribute FY 2025-26 Worksheets to Program Managers February 12, 2025 FY 2024-25 Mid-Year Budget Review at Public Board Meeting February 24 - March 13, 2025 Discuss FY 2025-26 Goals & Objectives with Program Managers March 4 & 11, 2025 FY 2025-26 Capital Outlay and Capital Improvement Program Planning Meeting March 27, 2025 FY 2025-26 New Position Requests, Program Goals & Objectives and Budget Requests, Capital Outlay, and CIP Requests April 9, 2025 FY 2025-26 Proposed Goals and Objectives Workshop at Public Board Meeting April 21-24, 2024 FY 2025-26 Budget Review with Executive Managers and General Manager/CEO April 23, 2025 FY 2025-26 Revenue Projection Workshop at Public Board Meeting May 20, 2025 CAC FY 2025-26 Budget Review May 30, 2025 FY 2025-26 Budget Complete with all Revisions June 11, 2025 FY 2025-26 Budget Presentation at Public Board Meeting June 25, 2025 FY 2025-26 Budget Adoption at Public Board Meeting EAST VALLEY WATER DISTRICT | 39 BASIS OF BUDGETING The District’s financial records are kept in accordance with Generally Accepted Accounting Principles (GAAP) for governmental enterprise funds, which are business-type funds used to report an activity for which a fee is charged to external users for goods or services. Therefore, the District follows the GAAP requirement that enterprise funds use the full accrual basis of accounting. The District uses the full accrual basis for budgeting as well, however, there are exceptions where the accrual basis is not conducive to effective presentation of the District’s budget because it does not allow discrete presentation of some significant uses of current financial resources. In these cases, GAAP is not followed, and instead those uses of current resources are shown as expenditures rather than as a reduction to a previously recorded liability, or a capitalized cost. Exceptions to the full accrual basis used for the District’s budget presentation are as follows: • Compensated absence expense reflects the change in related accrued liabilities during the accounting period on the full accrual basis, but for budget purposes, expense includes anticipated leave time to be used and/or cashed by employees during the fiscal year. • Principal payments on Long-Term Debt are applied to reduce the outstanding liability on the full accrual basis; but are shown as a current expenditure for Budget purposes. • Capital Outlay and Construction costs are capitalized and expensed over the useful life of the asset on a full accrual basis; shown as a current expenditure for Budget purposes. • Depreciation is recorded annually to expense the cost of a capital asset over its useful life on a full accrual basis but is not contemplated in the annual Budget. • Pension expense is budgeted based on employer contribution rates assigned by the California Public Employee’s Retirement System (CalPERS). For financial statement reporting, pension expense is recorded based on the change to the net pension liability in accordance with Governmental Accounting Standards Board Statement No. 68. • Other Post Employment Benefits (OPEB) expense (retiree health insurance) is budgeted based on stipulated reimbursements to retirees toward the cost of health insurance until they reach medicare age. For financial statement reporting, OPEB expense is recorded based on the change to net OPEB liability in accordance with Governmental Accounting Standards Board Statement No. 75. • Interest payments related to financing of the cost of a capital asset during construction are capitalized on the GAAP basis; shown as a current expenditure on a Budget basis. FY 2024-25 BUDGET | 40 Fund Structure GAAP requires that the District, a California Special District, account for its activities as a single, governmental Enterprise Fund. The activities of enterprise funds closely resemble those of ongoing businesses, in that rates and fees charged for services are intended to cover the cost of operations and capital needs. Though it is a single Enterprise Fund, the District engages in three separate and distinct business-type activities including the distributions of potable water, the collection of wastewater, and the reclamation and recycling of wastewater. Accordingly, the District’s budget is organized based on these activities, or sub- funds, hereafter referred to as the Water Fund, Wastewater Fund, and the Water Reclamation Fund. The Water Fund accounts for the costs of acquiring raw water, treating the water, and then pumping and distributing the treated water to District customers. The Wastewater Fund accounts for the cost of maintaining a system of pipelines responsible for collecting wastewater from residential and commercial customers and delivering the wastewater to the treatment facility. The Water Reclamation Fund treats wastewater to the standards of Title 22 of the California Code of Regulations and conveys recycled water for groundwater replenishment. Currently, the District operates its own reclamation facility known as the Sterling Natural Resource Center. Recycled water is sent to the Weaver Basins, owned by the San Bernardino Valley Municipal Water District, for recharge into the Bunker Hill Basin. Each of the Funds’ operations rely on a significant amount of planning and infrastructure. Accordingly, each fund contributes to the maintenance, replacement, and improvement of that infrastructure. When the issuance of debt is appropriate to fund major capital projects, each fund has the authority to issue debt. To support these costs, each fund adopts its own user rates, fees and charges, and has its own self-balancing set of accounts. Budgets for each fund are adopted to support the associated capital, and debt service costs, to make reasonable contributions to reserves, and to pay for direct, and allocated, operating and maintenance program expenses. The District follows the GAAP requirement that enterprise funds use the full accrual basis of accounting. RAW WATER SOURCES WATER PRODUCTION PLANTS DISTRIBUTION & STORAGE WATER FUND WATER RECLAMATION WASTEWATER FUND COLLECTION & CONVEYANCEWASTEWATER TREATMENT CUSTOMER USE RECYCLED WATER RECHARGE EVWD STERLING NATURAL RESOURCE CENTER EAST VALLEY WATER DISTRICT | 41 Financial Summary Flow of Funds Additional details about the activities and budgets of each fund are included at the Water Fund, Wastewater Fund, and Water Reclamation Fund tabs in this document. Water Sales System Charges Water Fund Wastewater Fund Investment/Other Income Water Operations, Capital Expendituresand Debt Service Collection Charges Investment/Other Income Investment/Other Income WastewaterTreatment Charges Wastewater Operations,Capital Expendituresand Debt Service SharedAdministrationPrograms Reclamation Operations,Capital Expendituresand Debt ServiceReclamation Fund FY 2024-25 BUDGET | 42 go a l s e t t i n g a n d p l a n n i n g th e a n n u a l b u d g e t EAST VALLEY WATER DISTRICT | 43 FUND/PROGRAM RELATIONSHIP District operating and maintenance expenses are all budgeted and accounted for by Program. Expenses incurred by Program are then allocated to the Water, Wastewater and Water Reclamation Funds based on the assessed benefit of Program services to each fund. The benefit assessment entails the evaluation of each program and the services provided through activity-based costing. Programs with activities fully aligned with the purpose of one fund or the other, are charged fully to the appropriate fund, while programs with general and administrative type functions are allocated proportionally. For FY 2024-25, the cost of centralized functions such as Administration, Public Affairs and Finance are allocated between the Water and Wastewater funds, usually by a 70% - 30% split. The Water Reclamation Fund will also share in the future costs of these functions once fund reserves have been established and operating costs for the Water Reclamation Fund are better known and predictable. The percentage allocation can be adjusted for unique circumstances. For example, with the implementation of water budget-based rates, allocated costs for Customer Service were shifted from the Wastewater Fund to the Water Fund due to the increased cost of administering the new rates. The annual budget development provides an opportunity for cooperation and collaboration with the understanding that an efficient operation requires high degrees of teamwork and focus. FY 2024-25 BUDGET | 44 Below is a table illustrating the Fund/Program relationship for FY 2024-25: Program Water Fund Wastewater Fund Reclamation Fund Total 1000 Governing Board $ 228,200 $ 97,800 $ - $ 326,000 2000 General Administration 911,400 390,600 - 1,302,000 2100 Human Resources & Risk Mgmt. 2,530,500 1,084,500 - 3,615,000 2200 Public Affairs 1,059,100 453,900 - 1,513,000 2300 Conservation 651,000 - - 651,000 3000 Finance & Accounting 978,250 419,250 - 1,397,500 3200 Information Technology 1,323,700 567,300 - 1,891,000 3300 Customer Service 1,548,400 663,600 - 2,212,000 3400 Meter Services 304,000 - - 304,000 4000 Engineering 924,700 396,300 - 1,321,000 5000 Water Production Administration 710,000 - - 710,000 5000-51 Wells 3,986,000 - - 3,986,000 5000-52 Boosters 1,044,000 - - 1,044,000 5000-54 Reservoirs 445,000 - - 445,000 5100 Water Treatment 1,629,000 - - 1,629,000 5200 Water Quality 605,000 - - 605,000 6000 Maintenance Administration 396,900 44,100 - 441,000 6100 Water Maintenance 3,711,250 - - 3,711,250 6200 Wastewater Collection - 962,250 - 962,250 6300 Water Reclamation - - 7,739,000 7,739,000 7000 Facilities Maintenance 1,527,400 654,600 - 2,182,000 7100 Fleet Maintenance 634,200 271,800 - 906,000 TOTAL OPERATING EXPENSES $ 25,148,000 $ 6,006,000 $ 7,739,000 $ 38,893,000 EAST VALLEY WATER DISTRICT | 45 BUDGET SUMMARY The budget for FY 2024-25 is balanced and reflects East Valley Water District’s commitment to allocating anticipated resources to meeting the expectations of District ratepayers, creditors, and stakeholders. The District projects that it will receive $51,929,000 in revenue during FY 2024-25 and has developed a budget plan to allocate $38,893,000 toward funding of program operations, $10,875,000 toward the amortization of outstanding debt, and $2,161,000 toward capital asset improvement and replacement resources. The table below presents a summary of revenue by type, and expenditures by cost category, and is followed by a discussion of revenue and expenditures. Water Fund Wastewater Fund Reclamation Fund FY 2024-25 Total REVENUE / SOURCES Water Sales $ 17,920,000 $ - $ 1,072,000 $ 18,992,000 Meter Charges 10,525,000 - - 10,525,000 Penalties 416,000 110,000 60,000 586,000 Wastewater System Charges - 6,515,000 - 6,515,000 Wastewater Treatment Charges - - 12,233,000 12,233,000 Other Operating Revenue 115,000 5,000 2,058,000 2,178,000 Miscellaneous Revenue 520,000 100,000 280,000 900,000 TOTAL REVENUE / SOURCES $ 29,496,000 $ 6,730,000 $ 15,703,000 $ 51,929,000 OPERATING EXPENSES Employment Expenses $ 10,313,300 $ 2,783,700 $ 1,732,000 $ 14,829,000 Water Costs 833,000 - - 833,000 Power Costs 3,225,000 - 1,400,000 4,625,000 Materials & Supplies 1,847,500 173,750 787,000 2,808,250 Contract Services 8,524,000 2,930,750 3,800,000 15,254,750 Other Operating Expenses 405,200 117,800 20,000 543,000 TOTAL OPERATING EXPENSES $ 25,148,000 $ 6,006,000 $ 7,739,000 $ 38,893,000 FY 2024-25 BUDGET | 46 Water Fund Wastewater Fund Reclamation Fund FY 2024-25 Total OTHER EXPENSES Debt Principal $ 1,873,000 $ 385,000 $ 4,527,000 $ 6,785,000 Debt Interest Expense 789,000 97,000 3,204,000 4,090,000 Capital Outlay 1,128,000 242,000 83,000 1,453,000 Capital Improvement Program 558,000 - 150,000 708,000 TOTAL OTHER EXPENSES $ 4,348,000 $ 724,000 $ 7,964,000 $ 13,036,000 TOTAL OPERATING / OTHER EXPENSES $ 29,496,000 $ 6,730,000 $ 15,703,000 $ 51,929,000 NET SURPLUS (DEFICIT)$ - $ - $ - $ - Consistent budget review eases the transition of programs from year to year. EAST VALLEY WATER DISTRICT | 47 REVENUE SUMMARY Revenue projections are key to determining the extent of financial resources available to support District programs and other obligations. Therefore, projections are developed early in the budget process and then presented to the District’s Governing Board in May. East Valley Water District receives 94% of its revenue from user rates and fees; the District receives no increment from property or sales taxes. Utility rates and miscellaneous charges are reviewed on three to five year cycles and adjusted as necessary to cover the costs of providing services to ratepayers. The District derives its authority for setting rates from California Water Code §31000 and rate adjustments are adopted at public hearings conducted in accordance with requirements established by California Propositions 26 and/or 218. User fees, which is the term used to refer to SNRC Non-Rate Revenue, are negotiated with third-party contractors. The District has six revenue categories based on established rates, fees and charges. The six categories and the fund which recognizes the revenue, are: 1 Water Sales Water Fund 2 Meter Charges Water Fund 3 Wastewater Collection Wastewater Fund 4 Wastewater Treatment Reclamation Fund 5 SNRC Non-Rate Revenue Reclamation Fund 6 Other Charges All Funds FY 2024-25 ProjectedRevenue 13% WastewaterCollection 34% Water Sales 20% Meter Charges 24% WastewaterTreatment 6%SNRC Non-RateRevenue 3%Other Charges FY 2024-25 BUDGET | 48 Revenue History and Forecast (In Millions) Water sales are also reliant on consumer demand, which increases or decreases based on weather, water rates, and drought conditions. Since 2015, two multi-year droughts have forced the District, and like agencies, to promote conservation and reduce water usage as part of a State-wide effort. However, an unusually wet winter in 2023, and higher than average rainfall in the winter of 2024, have filled state reservoirs and allowed the State Water Project to announce that they can deliver water allocations to agencies in Southern California. State Water Project is one of the District’s three water sources. Construction within the region has been picking up over the last three to four years. Multiple moderate sized developments of between 200 and 300 units have requested District assistance with the formation of Community Facilities Districts (CFD), and one of the CFDs has new homes under construction, which contributed to the increase of 101 new dwelling units during FY 2023-24. However, rising interest rates have slowed market absorption of new homes and in turn, slowed new development plans. The most significant factors affecting District revenues in FY 2024-25 will be rate adjustments adopted in May 2024, and the fact that this coming fiscal year will be the first full year of operations for the SNRC Water Reclamation facility. Rate adjustments, with effective dates of July 1, 2024 (wastewater) and January 1, 2025 (water) are expected to impact revenues approximately 6.7% over each of the next three years, and with the SNRC online, the District will treat and recycle all wastewater produced by District customers for groundwater recharge, retaining all wastewater treatment fees collected. Anaerobic digesters at the SNRC will also allow the District to produce energy from wastewater sludge and other high grade food waste accepted from third-party haulers. As a result, new revenue sources associated with the SNRC include: • Payment from the San Bernardino Valley District Local Resource Investment Program for recycled water used for recharge; • Tipping fees from liquid waste haulers; and • Energy produced by digesters will offset the facility’s power operating costs by between 50% and 90%. The actual percentage will depend on how efficiently the plant is operated and will have a significant impact on net revenue in the Reclamation Fund. There is also potential that excess power will be produced and sold to the Southern California Edison (SCE) power grid. A more detailed description of the District’s major revenue sources, and related trends, is provided in the following sections, including a discussion of new revenue streams under Other SNRC Income. In addition, the Water Fund, Wastewater Fund, and Water Reclamation Fund sections of this document include a detailed discussion of the rates used to calculate FY 2024-25 revenue projections. Forecasting revenue projections requires consideration of external factors that could impact the demand for water services. Elements factored into the FY 2024-25 forecasts included potential drought declaration, construction activity within the service area, and the opening of the Sterling Natural Resource Center. In addition, water and wastewater rate revenues are highly reliant on new development and rate increases for sustained growth. FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Estimated FY 2024-25 Projected FY 2025-26 Projected FY 2026-27 Projected Reclamation RevenueWastewater RevenueWater Revenue $27.7 $26.8 $27.4 $28.4 $29.9 $31.6 $4.8 $5.6 $6.0 $6.5 $6.7 $6.9 $9.8 $10.1 $11.0 $15.3 $17.2 $18.5 $5M $10M $15M $20M $25M $30M EAST VALLEY WATER DISTRICT | 49 Financial Summary WATER SALES The District produces potable water for sale to four customer classes: single-family residential, multi-family residential, commercial and irrigation. All customers are billed on a monthly cycle based on their amount of water usage, which is metered and measured in hundred cubic feet (HCF) where one HCF is equal to 748 gallons. The District bills for water consumption in three ascending ‘Water Budget’ rate tiers. Therefore, as customers’ water usage exceeds established tier widths or thresholds, water becomes more expensive. Water Budget tiers are unique in that tier width, or the number of units (HCF) billed at each tier, is determined based on the individual customer’s characteristics. For single and multi-family customers, the Tier 1 width is determined based on the number of occupants in a dwelling and is intended to allocate the customer with sufficient water for indoor health and safety needs. Tier 2 width is based on a customer’s landscaped square footage, and the measured evapotranspiration, or the rate at which plants and soil lose moisture during the month being billed. The Tier 2 budget is intended to allocate sufficient water for efficient irrigation of the landscaped square footage. Tier 3 is billed for water use in excess of the Tier 1 and 2 budgets and is deemed to be inefficient use. Irrigation customers receive only a Tier 2 budget as described above, with usage in excess of the budget billed at the Tier 3 rate. Finally, commercial customers, having neither occupants nor landscaped area associated with their domestic meter, have received Tier 1 and 2 water budgets based on the business’ historical water usage, with excess usage billed at the Tier 3 rate. Billing for commercial customers will change, however, to a flat rate in January 2025 as a result of the cost-of-service-analysis. The cost-of-service analysis determined that business water usage by these customers is neither outdoor usage, or indoor health and safely usage, and proposed that a separate flat rate be calculated and adopted. The Water Fund section of this document includes more discussion of the new flat rate for non-residential customers. The table below summarizes water sales volume (HCF) by billing tier for the last three years, and also includes conservative projections for FY 2024-25. CUSTOMER CONSUMPTION IN HUNDRED CUBIC FEET Water consumption during FY 2024-25 is expected to increase 2.4% to 15.6 thousand acre feet compared to the 15.1 thousand acre feet projected for FY 2023-24. This slight increase is a projected rebound from two successive wet winters experienced in California, and is attributed to continued development, both residential and commercial, along the City of Highland’s 5th Street corridor. Based on the projection of water sales in volume, and the tier rates that will be effective throughout the year, the District has projected water sales of $17,920,000 for FY 2024-25. The graph below shows water sales trends for four years and the current year projection. Additional information about water rates is available in the Water Fund section of this document. FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Estimated FY 2024-25 Budget Tier 1 $ 6,834,379 $ 7,097,089 $ 7,082,200 $ 7,147,000 Tier 2 6,868,459 5,398,193 5,544,200 5,832,000 Tier 3 4,770,037 4,509,293 4,643,600 4,262,000 Commercial Flat Rate - - - 679,000 TOTAL $ 18,472,875 $ 17,004,575 $ 17,270,000 $ 17,920,000 FY 2024-25 BUDGET | 50 WATER SALES TRENDS Water System Charges Also referred to as Meter Charges, water system charge rate revenue consists of a fixed monthly rate assessed to customers based on the size of the meter serving their property. The District sets its meter charge rates to generate between 35% and 40% of annual water operating revenue. In doing so, the District is able to shift some of the burden for revenue stability from unpredictable water sales, such as during times of severe drought and water restrictions, to a more reliable fixed charge. Meter charges were included in the cost-of-service analysis and rate study completed in January 2024 and adopted in May 2024. Proposed adjustments will become effective beginning January of 2025. The remaining adjustment become effective in January of each of the following two years. Revenues have been slightly impacted by development activity in the last two years as there have been approximately 120 new residential connections added to the District system. Development could potentially add 50 new residential customers consistently over the next ten years, but those new customers have not been counted and factored into projections. Only rate adjustments scheduled for January 2025 have been included in Meter Charge projections which are $10,525,000 for FY 2024-25. METER CHARGES $19,305,631 $18,472,875 $17,004,575 $17,270,000 $17,920,000 $2M $6M $10M $14M $18M FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Estimated FY 2024-25 Budget Tier 1 Tier 2 Tier 3 Commercial Flat Rate $9,217,003 $9,192,297 $9,831,561 $10,119,000 $10,525,000 $8.5M $9M $9.5M $10M FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Estimated FY 2024-25 Budget EAST VALLEY WATER DISTRICT | 51 Financial Summary Wastewater Collection (System) Charges Wastewater Collection charges are assessed to District customers to fund the maintenance and replacement of wastewater collection pipelines, make wastewater debt service payments, and fund program services associated with the Wastewater Fund. Wastewater collection rates were included in the cost-of-service analysis and rate study completed in January 2024 and then adopted at a public hearing in May 2024. The study proposed a modest 8.6% increase over three years beginning in July 2024. District wastewater customers include 19,450 single-family units and 10,963 multi- family units. These unit counts multiplied by the fixed charges were used to project residential collections revenue. 620 commercial accounts will continue to be billed at a monthly flat rate plus a volumetric charge based on water usage (measured in HCF). The volumetric rate varies according to the strength of the wastewater a customer type typically discharges into the collection system. Phase two of adopted collection charge adjustments was implemented in January 2023 and will be followed by an adjustment in 2024. Projected wastewater collection revenue for FY 2024-25 is $6,515,000. A more thorough discussion of the calculation of projected wastewater collection revenue can be found in the Wastewater Fund section of this document. WASTEWATER COLLECTION CHARGES Wastewater Treatment Revenue Wastewater generated by District customers is now treated by the newly commissioned Sterling Natural Resource Center (SNRC) water recycling plant. Until March of 2024, some of the District’s wastewater was still being treated by the SBMWD treatment plant. SNRC treatment rates include a monthly fixed charge, assessed based on the number of dwelling units, for both single-family and multifamily residential accounts. Commercial customers are billed both a monthly fixed charge, and then a volumetric charge based on water consumption. The volumetric rate is assessed for every hundred cubic feet (HCF) of water used, and the rate varies based on the ‘strength’ of the wastewater a customer discharges into the District wastewater system. Strength is categorized as low strength, medium strength, or high strength. Wastewater Treatment Charges are a revenue of the new Water Reclamation Fund, and total charges projected for FY 2024-25 are $12,233,000. FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Estimated FY 2024-25 Budget Single-Family Multi-Family Commercial $4,705,683 $4,828,526 $5,651,554 $6,018,300 $6,515,000 $1M $2M $3M $4M $5M $6M FY 2024-25 BUDGET | 52 WASTEWATER TREATMENT REVENUE SNRC Non-Rate Revenue Commencement of operations at the Sterling Natural Resource Center in Spring 2024 meant that the District will assess and collect its own wastewater treatment revenue, and in addition, other revenue streams associated with the anaerobic digesters and recycled water will begin to be realized. Explanations of those revenues and projections for FY 2024-25 are presented below. LOCAL RESOURCE INVESTMENT PROGRAM (LRIP) In October 2018, the District signed an agreement to sell up to 11,000 acre-feet annually of recycled water produced by the SNRC to San Bernardino Valley. San Bernardino Valley will initially pay $173 per acre-foot for recycled water made available to recharge the local groundwater basin. The District estimates that the SNRC will produce and recharge 6,200 acre feet annually beginning in fiscal year 2024-25. As a result of recharging this water, the District will receive an LRIP Contribution from San Bernardino Valley of $1,072,000. WASTEWATER HAULER TIPPING FEES In order to maximize the power generation capacity of the SNRC digesters, activated wastewater sludge from the SNRC will be supplemented by soliciting disposal of high grade food waste at the SNRC. The District anticipates that up to 130,000 gallons of liquid waste per day will be discharged by haulers at the SNRC for a fee of $0.08 per gallon. The District projects that at the beginning of FY 2024-25 approximately 60,000 gallons of food waste will be received and processed daily, with that number ramping up to 130,000 gallons per day by the end of the fiscal year. In total, approximately 25.6 million gallons of liquid waste is expected to be accepted at the SNRC during FY 2024-25 generating tipping fees of approximately $2,048,000. ELECTRICAL POWER GENERATION Gases released and burned by the anaerobic digesters will be used to generate electrical power to help offset the cost of supplying the SNRC with power. The District has also installed a two-way electric meter for situations where the digesters are generating surplus power, which can be sold to the power grid at $0.13 per kilowatt hour. The District does not anticipate any net revenue from power sales during FY 2024-25 as the digesters will not likely reach full capacity until the end of the year. FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Estimated FY 2024-25 Budget Single-Family Multi-Family Commercial $8,456,508 $9,764,357 $10,108,850 $10,572,200 $12,233,000 $2M $4M $6M $8M $10M $12M EAST VALLEY WATER DISTRICT | 53 Financial Summary The table below provides a summary of all projected non rate revenue from the SNRC for FY 2024-25. Other Charges and Income Other charges are assessed according to an adopted fee schedule, but are only charged to users who request, or require, use of District resources beyond the scope of delivering water, wastewater and water reclamation services. Charges include initiation of service fees, and charges related to collection of customer payments, including delinquent fees, final notice fees, and disconnect/reconnect fees. In prior years, revenue from charges related to collection of delinquent customer payments (delinquent fees, notice charges, disconnect/reconnect fees) have been significant, so the District has successfully implemented procedures to work closely with customers to reduce the number of service disconnections for non-payment. Revenue related to fees charges for collection efforts have been projected at $586,000 in the upcoming year. Other Income included in FY 2024-25 projections are facilities rentals, interest, and miscellaneous revenue. Projections for interest revenue have increased as yields are expected to remain at around 4% to 5%, and the amount of investible funds held by the District will be fairly significant as the District has substantially completed the construction of the SNRC and is carefully planning future capital improvements, including the incorporation of external funding such as grants. In total, the FY 2024-25 projection for Other Charges and Income is $1,616,000, which is calculated using adopted fees and an estimate of the number of occurrences for each type of fee based on historical trends. Revenue Type Unit of Measure Volume FY 2023-24 Fee Per Unit Non-Rate Revenue Total LRIP Contribution Acre Foot (AF) 6,200 AF $ 173.00 $ 1,072,000 Tipping Fees Gallon 25.60 MG $ 0.08 2,048,000 Power Sales kWh - $ 0.13 - $ 3,120,000 Other Charges $880,000Investment Income $300,000Disconnect Notice Charge $180,000Delinquent Fees $106,000Reconnect Fees $40,000Misc. and Other $30,000Initiation of Service FY 2024-25 BUDGET | 54 su p p o r t s t h e d i s t r i c t v i s i o n th e a n n u a l b u d g e t EAST VALLEY WATER DISTRICT | 55 EXPENDITURE SUMMARY The District prepares its annual budget and financial plan based on operating expenses proposed by program managers, debt service payments scheduled in accordance with covenants and contractual obligations to bondholders and other creditors, and capital expenditures prioritized in the District’s Capital Improvement Program and equipment replacement schedules. Resources required for these expenditures are then appropriated from the District’s Water, Wastewater, and Water Reclamation Funds. Operating expenses are addressed on the following pages by broad cost category as listed in the Budget Summary on page 45. Expenses are presented in more detail, by account type, in the Water, Wastewater, and Water Reclamation Fund Sections, and again, by Program in the Program Summaries. Employment Expenses Budgeted Employment Expenses include salaries and benefits paid for 75 full-time employees (FTEs) and 3 part- time employees, and also includes District contributions toward health insurance for current retirees. Employees are represented by two in-house bargaining units, or employee partnerships, which have negotiated a three-year Memorandum of Understanding (MOU) regarding wage and benefit adjustments through FY 2025-26. $2,161,000Capital Expenditures Expenditures by Category $15,254,750Contract Services $10,875,000 Debt Service $14,829,000 Employment Expenses Other Operating $543,000 $833,000Water Costs $2,808,250Materials & Supplies $4,625,000Power Costs FY 2024-25 BUDGET | 56 Salaries include regular wages, overtime and on-call pay, paid leave time, incentives, and differential payments which are awarded upon attainment of designated certifications. Per an agreement with employees at adoption of the current MOU, a 5% COLA will also take effect in FY 2024-25 in addition to pay scale step increases of 5% available for employees who have not reached the top step in their pay range, subject to annual performance evaluations. With new positions at the SNRC being filled to ensure full-time oversight of the plant, and the terms of the new MOU, projected salaries expense for FY 2024-25 is $10,173,000. Benefit programs include a retirement plan with the California Public Employee Retirement System (CalPERS), a cafeteria health insurance plan, a deferred compensation plan with employer matching, and Worker’s Compensation and Medicare insurance. The District also contributes up to $850 per month toward retiree health insurance. The most significant employee benefit is the CalPERS retirement plan. Funding requirements for the plan are determined through actuarial valuations conducted by CalPERS and include contributions from both the District and the employees. Contributions from the District are made toward the plan’s annual normal cost, at a rate of 15.53% of payroll for employees hired prior to January 2013 (Classic), and 7.94% of payroll for post January 2013 hires (PEPRA), and as a lump sum against the plan’s unfunded liability. In recent years, unfunded pension liabilities have risen significantly as the plan struggles to meet the expectation administrators have set to earn a 7% return on plan assets each year. The rise of unfunded liabilities has led plan administrators to adopt 25 year amortization schedules, requiring increasing annual contributions to the plan, in an attempt to ensure that the plan is ultimately fully funded. However, instead of relying on the administrator plans for funding, the District has implemented an aggressive 15 year level-pay plan to amortize unfunded pension liabilities in order to reduce the cost of this liability. While the 15-year plan requires higher initial annual contributions of $1,165,981, the shorter amortization period is projected to save the District $3.5 million. For FY 2024-25, District paid costs related to the retirement plan are projected to increase 4.8%. Healthcare costs are also split between the District and employees as the District pays 90% to 95% of premiums equal to the designated ‘benchmark’ insurance plan, with employees paying the balance. Premiums for the benchmark plan increased 2.49% between 2023 and 2024, therefore a similar decrease for the cost of healthcare benefits is expected. Contributions toward retiree health insurance premiums are capped at $850 per month for FY 2024-25. Payments continue until the retiree reaches the age of 65, or Medicare age, provided they meet all eligibility requirements for this benefit. Worker’s compensation and life insurance premiums, cell phone allowances, and auto allowances for managers make up the remaining benefits. Total District paid benefits are expected to increase 8.4% to $4,305,000 for FY 2024-25, while contributions toward retiree health insurance were determined by an actuary to be $351,000. SALARIES AND BENEFITS FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Estimated FY 2024-25 Budget Salaries Benefits Retiree Health Benefit $2M $4M $6M $8M $10M $12M $14M $11,673,338 $12,336,284 $13,057,464 $12,963,183 $14,829,000 EAST VALLEY WATER DISTRICT | 57 Financial Summary Water Costs The District anticipates customer demand for approximately 15,528 acre-feet, or 5.06 billion gallons, of water during FY 2024-25. This is a projected 5% decrease in demand compared to projections used for FY 2023-24, as actual demand will fall short of projections in the prior year due to the wet winter season at the beginning of 2024. The District meets customer demand by procuring water from three different raw water sources – groundwater, surface water, and the purchase of imported water. Each of these sources have associated rates, fees, or assessments charged by other agencies/companies as explained below: Total water costs associated with these three sources are projected to be $833,000 for FY 2024-25. WATER COSTS Groundwater The District obtains approximately 80% of its water supply through its wells by pumping water from the Bunker Hill Groundwater Basin. The fee associated with pumping groundwater is paid to the San Bernardino Valley Conservation District. The District’s total assessment for FY 2024-25 is projected to be $352,000. Surface Water Stockholder assessments paid to the North Fork Water Company (NFWC) on company shares owned by the District. Annual assessments are set to cover the costs of operating NFWC and includes delivery of Santa Ana River surface water, also based on the number of shares owned. The District owns approximately 7,147 shares and projects that the assessment will be $181,000 and is budgeted accordingly. Purchased Water Paid to San Bernardino Valley to buy State Water Project at $126 per acre foot (AF) when available. Due to the significant amount of rainfall and snow pack in California last winter, at least 30% of the normal allocation of water is available from the State Water Project. The District has budgeted $300,000 for up to 2,400 acre feet of water from the State Water Project in FY 2024-25. FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Estimated FY 2024-25 Budget Purchased Water GW Council Assessment Surface Water $200K $400K $600K $800K $506,879 $373,096 $257,161 $595,316 $833,000 FY 2024-25 BUDGET | 58 Contracted Wastewater Treatment As outlined in the discussion about wastewater treatment revenue, the District transitioned from contracting with the SBMWD for wastewater treatment, to commencing its own wastewater treatment operations at the new Sterling Natural Resource Center (SNRC) during FY 2023-24. Accordingly, contracted treatment payments, previously displayed as a single line item, have been replaced in this document by various costs associated with operating a treatment plant, capital costs, and debt service payments to the State Water Resources Control Board on a low-interest loan used for financing the construction of the SNRC. The transition of costs is displayed in the accompanying Water Reclamation Fund section. WASTEWATER TREATMENT COSTS Annual payments to the SBMWD for wastewater treatment services has represented approximately 22% of the District’s annual budget in past years. Going forward, however, contracted treatment payments will be replaced by new debt service payments, SNRC treatment staff salaries, and other operating costs displayed in other sections of this budget, and also summarized in the Water Reclamation Fund. Power Costs Power costs include the electrical power for extracting groundwater through wells, treating imported water, surface water, and groundwater when necessary, and distributing water throughout nine pressure zones within the District. Significant power costs will also be incurred for the SNRC in FY 2024-25 as the new plant commences its first year of operation. Rates for electrical power have been steadily increasing over the past three years, resulting in significant budget pressure, despite the fact that the District has implemented various energy conservation measures including the installation of high efficiency pumps at several plants, and construction of a hydroelectric generation facility at the District’s surface water treatment plant (Plant 134), to help mitigate rising costs. In addition, District operations staff works closely with representatives from Southern California Edison (SCE) to try to ensure that water production facilities are assigned Time-of-Use (TOU) rates wherever possible, encouraging staff to operate facilities to take advantage of the off-peak rates. In spite of these efforts to control costs, electricity rate pressures have resulted in steadily increasing power costs. The addition of the SNRC had the potential to more than double the District’s power demand. In order to mitigate the cost, the District added anaerobic digesters to the SNRC project to convert wastewater sludge, supplemented with imported liquid food waste, into energy. The District contracted with SCE to install a two-way meter at the plant, so any excess energy produced by the digesters in the future can be sold on the power grid. During startup, and at least for the FY 2024-25, the District expects to consume all power generated on-site for the operation of the plant and expects that the SNRC will be a net user of power. A budget of $1,400,000 has been established for net power costs at the SNRC for FY 2024-25. This amount is approximately half of the expected cost to run the plant without the self-generated capabilities with the digestor. Power costs for water production were approximately $2.2 million in FY 2023-24, well below the budgeted amount of $2,985,000. The District was expecting Edison rate increases in combination with a surge of water usage following a very wet winter in FY 2022-23 to cause energy costs to rise significantly. Instead, a 3% decrease in customer water usage resulted in lower than expected power costs for water production. In projecting power costs for FY 2024-25, the District again expects Edison rate increases, although the percentage is not yet known, and anticipates that the loss of three wells that are too close to the new regional recycled water recharge basins, will make it difficult to avoid peak time-of-use power rates until replacement wells can be placed in service. Under these circumstances, the District expects power costs for water production to be $3,225,000 in FY 2024-25. Based on the above, the total proposed budget for power to run production facilities in FY 2024-25 is $4,625,000. EAST VALLEY WATER DISTRICT | 59 Financial Summary POWER COSTS Materials and Supplies Materials and supplies are purchased to assist staff with the performance of their daily tasks. For administrative programs, materials ordinarily consist of office supplies, informational/educational printed materials for the public, books and reference materials for staff, and small office equipment. For operating and maintenance programs, materials also include some office supplies, but also include items such as chemicals for water treatment, small tools and parts for distribution system repairs, fuel and lubricants, and fill materials for backfilling trenches, among other items. Materials costs are budgeted to increase 9% to $2,808,250 for FY 2024-25. Significant variances between prior year Contract Services costs and projections for the upcoming year is due to Water Reclamation’s budget of $650,000 for chemicals, a new program expense. FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Estimated FY 2024-25 Budget Wells Boosters $1M $2M $3M $4M $5M Water Treatment Wastewater Treatment $2,267,909 $2,565,150 $3,467,005 $3,733,808 $4,625,000 Plant Repair Materials Materials &Supplies $48,000Oce Supplies $1,603,000 Plant Repair Materials $1,010,000 Chemicals $147,250Small Tools FY 2024-25 BUDGET | 60 Contract Services Contract services are proposed by program managers to fund ongoing needs for outside services, and periodic technical expertise to help meet Program Goals and Objectives. For administrative programs outside services include, but are not limited to, legal services, banking and payment processing, printing, and insurance, while technical services would include rate consultants, engineering consultants, and legislative advocates. Operating and maintenance programs primarily use ongoing outside services such as paving, electrical repair, landscape maintenance, and equipment maintenance. The budget for contract services is expected to increase 28% to $15,254,750 for FY 2024- 25. Significant variances between prior year contract services costs and projections for the upcoming year include: • A full year of operations at the SNRC Water Reclamation Facility will add over $3.3 million in additional Contract Services, including solids hauling and disposal, SCADA support, and new laboratory services. Other Operating Expenses Other Operating Expenses budgeted for FY 2024-25 total $543,000 and includes conservation rebates, professional development, memberships and dues, licensing, meeting expenses, employee recognition, and education assistance. The District emphasizes professional growth and leadership, encouraging employees to utilize resources made available by the District to continue learning through formal education, certifications, and collaboration with other agencies responsible for delivering similar service to its ratepayers. ContractServices $9,752,250 Professional & Support Services$2,616,500 Utilities & Other $2,292,000 Insurance $206,000Printing & Mailing $388,000Building & LandscapeMaintenance OtherOperating Expenses $85,000 Conservation Rebates $172,000 Memberships & Dues $175,000 Professional Development $51,000Meetings $41,000EmployeeRecognition $19,000Other EAST VALLEY WATER DISTRICT | 61 DEBT OVERVIEW East Valley Water District’s debt service payments in FY 2024-25 will be $10,175,000 on total outstanding debt of $210,033,000 as of June 30, 2024. These amounts include the initial debt service payment, and outstanding State Water Resources Control Board loan balance on the SNRC water reclamation plant that was commissioned in May of 2024. The SWRCB declared that the project was essentially complete in December 2023, establishing the date for debt service payments to begin in December 2024. A more complete discussion about the funding for this project and annual debt service of approximately $7.7 million annually is included in the discussion about SWRCB loans below. The District issues debt for the purpose of building and improving capital assets, and to refund/refinance previously issued debt when interest rates and other circumstances make it financially prudent. In September 2020, the District refunded its outstanding 2010 and 2013 Revenue bonds with 2020 Series A & B Refunding Revenue bonds in order to achieve annual interest savings of approximately $400,000. The District’s Debt Management Policy states that debt may only be issued to finance capital projects that have been incorporated into the District’s Capital Improvement Program. Additionally, debt will only be used to finance projects if it is the most cost-effective means of doing so and the District’s credit rating will not be negatively impacted. District policy prohibits the issuance of long-term debt to fund operating activities. Types of Debt REVENUE BONDS Revenue bonds are issued to finance the construction or upgrade of water and wastewater facilities. Debt service on revenue bonds is payable out of water and wastewater system net revenue. • 2020A Refunding Revenue Bonds: Issued to refund outstanding 2010 Revenue bonds and save $380,000 annually on interest. The 2020A bonds have an outstanding balance of $14,060,000, and bear (tax-exempt) interest ranging from 3.0% to 5.0%. • 2020B Refunding Revenue Bonds: Issued to refund outstanding 2013 Revenue bonds, which had been issued to finance the construction of a new administration and operations headquarters. The 2020B bonds outstanding total $12,780,000, and bear (taxable) interest ranging from 0.42% to 2.93%. STATE WATER RESOURCES CONTROL BOARD (SWRCB) LOANS SWRCB loans are utilized to finance the construction or upgrade of clean drinking water or recycled water projects. Debt service is payable out of water and wastewater system net revenue. • Treatment Plant 134: Borrowed to finance upgrades to treatment technology at the District’s Plant 134. The total loan outstanding is $4,901,000 bearing interest at 0%. FY 2024-25 BUDGET | 62 • SNRC: Borrowed as primary funding for the Water Reclamation Plant known as the SNRC. The total loan amount approved is $168.3 million. Through June 2024, approximately $143.2 million has been drawn down. Interest on the loan is 1.8%, which has accrued on all draws against the loan during the project construction period. The accrued interest will be added to the loan balance bringing the total amount to be repaid to $178 million. Annual debt service on this total will be approximately $7.7 million annually. The District has also signed two SWRCB loan agreements in support of the State’s consolidation of mutual water companies with failing water infrastructure within the District’s service area. The District is responsible for ensuring payment on the State loans, which is payable from assessments on property formerly served by the water companies. Assessment Districts • Arroyo Verde & Eastwood Farms: Borrowed to fund installation of new water distribution system connected to the District’s water supply facilities. Loans outstanding total is $311,000 and bear interest at 0%. OTHER LOANS — SUBORDINATE Financing agreements signed with equipment vendors, installers, or construction project managers for the purchase or installation of equipment with useful lives of 20 years or less. Repayment periods are typically 10 years or less. Two loans with outstanding balances totaling $1,719,000 at June 30, 2023, were paid off during the 2023-24 fiscal year. OTHER LONG TERM OBLIGATIONS On November 21, 2017 the District entered into a Settlement Agreement (Agreement) with SBMWD that defined the terms under which the District would stop sourcing wastewater treatment services to SBMWD in accordance with a 1957 Joint Powers Agreement, and would construct and operate its own water reclamation facilities capable of treating all wastewater flows generated by District customers. One of the terms of the Agreement is that the District will pay ten annual installments of $700,000 to SBMWD to help alleviate the loss of revenue resulting from the District’s departure. The first payment was due within 30 days after the District began treating all wastewater generated by its customers — that occurred in March of 2024. Accordingly, the District made the initial $700,000 payment in FY 2023-24 and will budget these annual payments through FY 2032-33. WATER FUND WASTEWATER FUNDS Fiscal Year Principal Interest Principal Interest Total 2024-25 $ 490,000 - $ 210,000 - $ 700,000 2025-26 490,000 - 210,000 - 700,000 2026-27 490,000 - 210,000 - 700,000 2027-28 490,000 - 210,000 - 700,000 2028-29 490,000 - 210,000 - 700,000 2030-34 1,960,000 - 840,000 - 2,800,000 TOTAL $ 4,410,000 $ - $ 1,890,000 $ - $ 6,300,000 WATER FUND WASTEWATER FUNDS Fiscal Year Principal Interest Principal Interest Total 2024-25 $ 1,383,000 $ 789,000 $ 4,702,000 $ 3,301,000 $ 10,175,000 2025-26 1,028,000 747,000 4,783,000 3,218,000 9,776,000 2026-27 1,063,000 715,000 4,871,000 3,133,000 9,782,000 2027-28 1,098,000 682,000 4,956,000 3,046,000 9,782,000 2028-29 1,134,000 645,000 5,042,000 2,957,000 9,778,000 2030-34 6,212,000 2,634,000 26,618,000 13,388,000 48,852,000 2035-39 7,197,000 1,646,000 29,141,000 10,872,000 48,856,000 2040-44 8,479,000 581,000 31,918,000 8,086,000 49,064,000 2045-49 234,000 - 33,523,000 5,130,000 38,887,000 2050-54 - - 36,651,000 2,003,000 38,654,000 TOTAL $ 27,828,000 $ 8,439,000 $ 182,205,000 $ 55,134,000 $ 273,606,000 EAST VALLEY WATER DISTRICT | 63 Financial Summary Impact of Current Debt Levels A schedule of FY 2024-25 debt service payments, by debt issue, is shown in the following schedule. DEBT SERVICE PAYMENTS As detailed above, debt service for FY 2024-25 on all outstanding District debt is $10,175,000. This amount represents 19.6% of the District’s total budget for FY 2024-25. This level of debt service does not affect utility services provided to District ratepayers but does directly impact the number of Capital Projects that can be funded by operating revenues. The following table presents District debt level ratios compared to 2015 Southwest Regional medians reported by Fitch ratings. District debt used for the calculations includes loan funds borrowed for the SNRC through June 2024, but for which debt service is not yet being paid. DEBT SERVICE THROUGH MATURITY WATER FUND WASTEWATER FUNDS Debt Issue Principal Interest Principal Interest Total 2020A Refunding Revenue Bonds $ 1,030,000 $ 565,000 $ - $ - $ 1,595,000 2020B Refunding Revenue Bonds 100,000 224,000 175,000 97,000 596,000 SWRCB Loan Treatment Plant 134 234,000 - - - 234,000 SWRCB Loans Assessment Districts 19,000 - - - 19,000 SWRCB Loans SNRC (Estimated) - - 4,527,000 3,204,000 7,731,000 TOTAL $ 1,383,000 $ 789,000 $ 4,702,000 $ 3,301,000 $ 10,175,000 FY 2024-25 BUDGET | 64 Future Debt Levels The addition of the SWRCB Loan for the SNRC will substantially increase the District’s annual debt service requirement. Contractual payments on this loan will begin six months after completion of construction, which will be approximately December 2024. Now that the SNRC is operational, wastewater treatment payments to SBMWD are replaced with labor, materials, and other direct treatment costs, and debt service. The graph below presents total debt service on existing debt through maturity. DEBT SERVICE Bond Ratings Credit risk is the potential that creditors will suffer financial loss if the District fails to fulfill its obligation to make timely payments to holders of District debt. This risk is measured by the assignment of a rating to the District’s bonds by a nationally recognized credit rating organization. Strong credit ratings provide benefits to District ratepayers in the form of reduced debt service costs. Prudent financial management policies resulted in a bond rating of AA- from both Standard & Poor’s and Fitch ratings when the District issued 2020 A & B series revenue bonds in September 2020. Fitch affirmed this rating as the result of a review conducted in June 2024. The AA- rating is considered a high quality, investment grade rating. Debt Capacity and Debt Service Coverage The District has no policy limitation, and there is no statutory limitation, on the amount of debt that may be issued by the District, however, bond covenants for the District’s 2020 Revenue Bonds require an additional bonds test prior to issuing additional obligations payable from Net Operating Revenue. The test determines the amount of additional debt that may be issued by calculating the amount of net revenue available for additional debt service payments. The Revenue Bond documents, as well as loan agreements with the SWRCB and US Bank, require that the District maintain a debt service coverage ratio equal to 1.2 or 120 percent of annual debt service or greater. A $2M $4M $6M $8M $10M Water Fund Wastewater Fund Reclamation Fund 20 2 4 - 2 5 20 2 5 - 2 6 20 2 6 - 2 7 20 2 7 - 2 8 20 2 8 - 2 9 20 2 9 - 3 0 20 3 0 - 3 1 20 3 1 - 3 2 20 3 2 - 3 3 20 3 3 - 3 4 20 3 4 - 3 5 20 3 5 - 3 6 20 3 6 - 3 7 20 3 7 - 3 8 20 3 8 - 3 9 20 3 9 - 4 0 20 4 0 - 4 1 20 4 1 - 4 2 20 4 2 - 4 3 20 4 3 - 4 4 20 4 4 - 4 5 20 4 5 - 4 6 20 4 6 - 4 7 20 4 7 - 4 8 20 4 8 - 4 9 20 4 9 - 5 0 20 5 0 - 5 1 20 5 1 - 5 2 20 5 2 - 5 3 20 5 3 - 5 4 20 5 4 - 5 5 Water Fund Wastewater Fund Reclamation Fund Total REVENUE Sales & Services $ 28,445,000 $ 6,515,000 $ 12,233,000 $ 47,193,000 Other Charges 511,000 115,000 3,120,000 3,746,000 Interest & Miscellaneous Revenue 540,000 100,000 350,000 990,000 Grants / Self Generation Incentives - - 3,650,000 3,650,000 TOTAL REVENUES $ 29,496,000 $ 6,730,000 $ 19,353,000 $ 55,579,000 OPERATING EXPENSES Programs $ 25,148,000 $ 6,006,000 $ 7,705,000 $ 38,859,000 TOTAL OPERATING EXPENSES $ 25,148,000 $ 6,006,000 $ 7,705,000 $ 38,859,000 NET REVENUE $ 4,348,000 $ 724,000 $ 11,648,000 $ 16,720,000 ANNUAL $ $ 2,662,000 $ 482,000 $ 7,731,000 $ 10,875,000 DEBT COVERAGE RATIO 1.63 1.50 1.51 1.54 EAST VALLEY WATER DISTRICT | 65 Financial Summary The FY 2024-25 proposed Budget provides the net revenue to debt ratios shown in the table below. DEBT SERVICE COVERAGE The District’s Debt Management Policy stipulates that debt may only be issued to finance capital projects. FY 2024-25 BUDGET | 66 fr a m e w o r k f o r p o l i c y d e c i s i o n s th e a n n u a l b u d g e t EAST VALLEY WATER DISTRICT | 67 FUND EQUITY & RESERVES As previously discussed, EVWD operates water, wastewater collection, and water reclamation enterprise activities; the District does not have governmental or non-major enterprise activities as part of its operational structure. For financial reporting purposes, each of the District’s activities report Equity, the excess of Assets and Deferred Outflows over Liabilities and Deferred Inflows, as Net Position. Also for financial reporting purposes, Net Position is reported in three distinct classifications: For budgeting purposes, and for purposes of this discussion, the three classifications above will be referred to as designations of the District’s equity, rather than of Net Position. Restricted and unrestricted equity are spendable reserves, Equity Invested in Capital Assets is not. Equity Invested in Capital Assets maintains a running balance of resources previously spent on the acquisition and construction of capital assets, less outstanding long-term debt, and net of depreciation of those capital assets over time. It does not include spendable funds that are available for appropriation and is therefore not considered as part of the budget process. Restricted Net Position may include any or all of the following in a given year: 1) unspent proceeds from the issuance of long-term debt, 2) developer paid capacity fees, and 3) debt service reserves. Unspent debt proceeds and capacity fees are available for appropriation for capital projects, but only as defined by contractual agreement with bondholders and other creditors, or by studies adopted by the District that state the purpose and amount of capacity fees to be collected from developers. Debt proceeds are used only for projects specifically stated in debt agreements, and capacity fees are used only for construction of projects that expand the capacity of the District’s infrastructure. Debt service reserves may only be used to pay debt service on the associated debt, if and when needed. The amount of funds required to be held in this reserve is equal to one year’s debt service. Unrestricted fund equity is the residual after the balances in the other two classifications of equity have been determined. The District has the most flexibility in determining how unrestricted equity may be appropriated, and the Governing Board has done so by establishing a Reserve Funds Policy, which is summarized on pages 34-35. The policy, which was revised in February 2024, establishes two designations for unrestricted equity, and has defined their purpose, order of priority for funding, target levels, and uses. Those unrestricted designations are the: Invested in Capital Assets Restricted Unrestricted Operating Reserve Capital Replacement Reserve FY 2024-25 BUDGET | 68 The Operating Reserve has the highest priority and is funded first out of any excess of revenue over expenditures at the end of each fiscal year. When the Operating Reserve has reached its target level of 120 days operating expenses, excess funds are applied to the Capital Replacement Reserve with a minimum target level of twice the annual average of the District’s five year Capital Improvement Program, and a maximum level equal to the five year CIP total. If the Capital Replacement Reserve reaches its maximum target, excess funds are to be placed back in the Operating Reserve. Expenditure of funds out of any of the Unrestricted Reserve categories will be replenished with excess Operating Reserves, and then by transfer from reserves with lower priority. The District’s Governing Board may take action to transfer balances between the Unrestricted Reserve designations at any time. Enterprise Reserves Water Fund Reserves The Water Fund is projected to have $6,200,052 in Operating Reserves, $7,292,000 in the Capital Replacement Reserve, and $2,793,420 in Restricted Reserves at the end of FY 2024-25. The Water Reserves table presents changes to the Water Fund unrestricted and restricted equity, broken down by reserve designation, over a five year period, and includes beginning balances, annual activity, and ending balances. Target levels for each of the reserve designations, in accordance with the District’s reserve policy, are also shown. UNRESTRICTED RESERVES Funding for unrestricted reserves is built into rates when the District conducts a cost-of-service analysis; this occurs approximately every five years. Rate adjustments were last adopted in May 2024 and will become effective in three phases on January 1st of each year, 2025, 2026, and 2027. Modeling for the new rates continued to focus on collecting at least 35% of revenue from the fixed system (meter) charges as California continues living with droughts and mandatory conservation, which results in reduced water sales. The unrestricted Operating Reserve balance will remain near its target level during the fiscal year, while funds from the unrestricted Capital Replacement Reserve will be drawn upon to supplement operating revenue for many important capital projects including drilling a rehabilitation of an existing tank. Operating Reserve Water Enterprise Capital Replacement Reserve Capital Replacement Reserve Operating Reserve Wastewater Enterprise Capacity Fees Capacity Fees Capital Replacement Reserve Operating Reserve Water Reclamation Enterprise Capacity Fees Water Unrestricted Reserves Wastewater Unrestricted Reserves Water Reclamation Unrestricted Reserves Restricted Reserves EAST VALLEY WATER DISTRICT | 69 Financial Summary RESTRICTED RESERVES Restricted Reserves are from the collection of water capacity fees from new development. Although the receipt of capacity fees is not included in revenue projections and budgeted, accumulated fees are available for appropriation for certain capital improvement projects. $3,000,000 of restricted reserve balances are budgeted for use toward construction of a new well during FY 2024-25, leaving a projected year-end balance of $2,793,420. UNRESTRICTED AND RESTRICTED EQUITY — WATER FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Projected FY 2024-25 Budget WATER OPERATING RESERVE Maximum Target Level 120 Days Operations $ 6,025,000 $ 6,366,000 $ 6,645,000 $ 7,245,000 $ 8,400,000 Beginning Fund Balance 6,489,732 6,031,622 8,405,421 6,645,000 6,200,052 Revenue 29,145,482 29,273,276 28,250,377 28,667,803 29,496,000 Operating / Non-Operating Expenditures (20,132,623) (22,435,689) (21,919,678) (21,161,367) (25,148,000) Capital Expenditures (4,179,287) (5,131,241) (7,134,813) (3,365,000) (1,686,000) Debt Principal Payments (2,393,628) (2,120,011) (2,161,691) (3,067,000) (2,662,000) Land Sale / Transfer CIP from Wastewater (6,298,054) 2,448,816 - - - Transfer to Other Reserves 3,400,000 338,648 1,205,384 (1,519,384) - ENDING WATER OPERATING RESERVE $ 6,031,622 $ 8,405,421 $ 6,645,000 $ 6,200,052 $ 6,200,052 WATER CAPITAL REPLACEMENT RESERVE Minimum Target Level $ 10,000,000 $ 10,000,000 $ 10,000,000 $ 10,314,000 $ 10,314,000 Beginning Fund Balance 13,738,648 10,338,648 10,000,000 8,794,616 10,314,000 Transfer from (to) Other Reserves (3,400,000) (338,648) (1,205,384) 1,519,384 - Capital Expenditures - - - - (3,022,000) ENDING WATER CAPITAL REPLACEMENT RESERVE $ 10,338,648 $10,000,000 $ 8,794,616 $ 10,314,000 $ 7,292,000 TOTAL UNRESTRICTED RESERVES - WATER $ 16,370,270 $ 18,405,421 $ 15,439,616 $ 16,514,052 $ 13,492,052 FY 2024-25 BUDGET | 70 WATER RESERVES Wastewater Fund Reserves The Wastewater Fund is projected to have $2,334,455 in Operating Reserves, $7,000,000 in the Capital Replacement Reserve, and $3,529,854 in Restricted Reserves. The following table presents changes to the Wastewater Fund unrestricted and restricted equity, broken down by reserve designation, over a five year period, and includes beginning balances, annual activity, and ending balances. The target levels established for each reserve designation, in accordance with the District’s Reserve Funds Policy, are also shown. FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Projected FY 2024-25 Budget WATER CAPACITY FEES No Target Level $ - $ - $ - $ - $ - Beginning Fund Balance 2,284,023 2,576,874 3,560,177 4,527,579 5,793,420 Fees Collected 292,851 983,303 967,402 1,265,841 - Capital Expenditures - - - - (3,000,000) ENDING WATER CAPACITY FEES $ 2,576,874 $ 3,560,177 $ 4,527,579 $ 5,793,420 $ 2,793,420 TOTAL RESTRICTED RESERVES - WATER $ 2,576,874 $ 3,560,177 $ 4,527,579 $ 5,793,420 $ 2,793,420 $16,370,270 $18,405,421 $15,439,616 $16,514,052 $13,492,052 $2,576,874 $3,560,177 $4,605,274 $5,793,420 $2,793,420 $5M $10M $15M $20M FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Estimated FY 2024-25 Budget Unrestricted Restricted FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Projected FY 2024-25 Budget WASTEWATER OPERATING RESERVE Maximum Target Level 120 Days Operations $ 1,250,000 $ 1,850,000 $ 1,900,000 $ 2,000,000 $ 2,250,000 Beginning Fund Balance 2,311,575 2,540,325 538,315 8,679,634 1,533,728 Revenue 4,846,067 5,189,870 5,795,316 6,935,418 6,730,000 Operating / Non-Operating Expenditures (4,920,069) (4,070,081) (4,913,771) (5,821,324) (6,103,000) Capital Expenditures (5,885,302) (2,951,799) (2,951,799) (585,000) (242,000) Debt Principal Payments (110,000) (170,000) (175,000) (175,000) (385,000) SRF Loan Proceeds - Net - - 10,386,573 - - Transfer to Other Reserves - - - (7,500,000) - Transfer CIP to Other Fund 6,298,054 - - - - ENDING WASTEWATER OPERATING RESERVE $ 2,540,325 $ 538,315 $ 8,679,634 $ 1,533,728 $ 1,533,728 WASTEWATER CAPITAL REPLACEMENT RESERVE Minimum Target Level $ 10,000,000 $ 10,000,000 $ 10,000,000 $ 10,000,000 $ 2,000,000 Beginning Fund Balance - - - - 7,500,000 Transfer from Other Reserves - - - 7,500,000 - Loans from (to) Other Reserves - - - - - Capital Expenditures - - - - - ENDING WASTEWATER CAPITAL REPLACEMENT RESERVE $ - $ - $ - $ 7,500,000 $ 7,500,000 TOTAL UNRESTRICTED RESERVES - WASTEWATER $ 2,540,325 $ 538,315 $ 8,679,634 $ 9,033,728 $ 9,033,728 EAST VALLEY WATER DISTRICT | 71 Financial Summary UNRESTRICTED AND RESTRICTED EQUITY — WASTEWATER UNRESTRICTED RESERVES FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Projected FY 2024-25 Budget WASTEWATER CAPACITY FEES No Target Level $ - $ - $ - $ - $ - Beginning Fund Balance 1,696,736 1,837,888 2,701,340 3,144,381 3,723,964 Fees Collected 141,152 863,452 443,041 579,583 - Debt Issued - - - - - Capital Expenditures - - - - - ENDING WASTEWATER CAPACITY FEES $ 1,837,888 $ 2,701,340 $ 3,144,381 $ 3,723,964 $ 3,723,964 TOTAL RESTRICTED RESERVES - WASTEWATER $ 1,837,888 $ 2,701,340 $ 3,144,381 $ 3,723,964 $ 3,723,964 FY 2024-25 BUDGET | 72 The accumulation of wastewater Operating and Capital Replacement reserves have been limited due to the investment in construction of the SNRC, a water reclamation facility for which the Water Reclamation Fund was established in FY 2022-23. Prior to establishing the Water Reclamation Fund, the Wastewater Fund financed costs not covered by a grant/loan agreement provided by the State Water Resources Control Board (SWRCB) affecting its ability to build reserves, in spite of the fact that rate adjustments were implemented in each of the years beginning with FY 2021-22. However, in FY 2022-23, with the establishment of the Reclamation Fund and with the District being granted a second amendment to its SWRCB loan agreement, whereby an additional $18 million in construction costs became eligible for reimbursement from the SWRCB loan, more than $10 million in cash funded costs were reimbursed to the Wastewater Fund filling its unrestricted reserves. The FY 2024-25 balanced budget does not project any increases or decreases to wastewater fund unrestricted reserves during the fiscal year, therefore total unrestricted reserves are projected to remain at $9,033,728. RESTRICTED RESERVES Restricted Reserves are primarily from the collection of wastewater capacity fees from new development. The table also includes balances and activity for restricted Wastewater capacity fees. Although the receipt of capacity fees is not included in revenue projections and budgeted, accumulated fees are available for appropriation for certain capital improvement projects. The projected restricted reserve balance at the end of FY 2024-25 is $3,723,964. The projected total for all Wastewater Fund reserves at the end of FY 2024-25 is $12,757,692. WASTEWATER RESERVES Water Reclamation Fund Reserves The Water Reclamation Fund was established to account for the revenues and expenditures related to the Sterling Natural Resource Center water reclamation plant which began operations in January of 2024. Target levels will be established as they are for other funds, in accordance with the District’s Reserve Funds Policy. $2,701,500 $1M $3M $5M $7M $9M Unrestricted Restricted FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Estimated FY 2024-25 Budget $9,033,728 $9,033,728 $538,315 $2,540,325 $1,837,888 $3,147,881 $8,679,634 $3,723,964 $3,723,964 FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Projected FY 2024-25 Budget RECLAMATION OPERATING RESERVE Maximum Target Level 120 Days Operations $ - $ - $ - $ 4,100,000 $ 5,235,000 Beginning Fund Balance - - - - 529,659 Revenue 8,456,508 9,764,357 10,108,850 11,266,603 15,703,000 Operating/Non Operating Expenditures (8,456,508) (9,764,357) (10,286,707) (10,086,944) (10,943,000) Capital Expenditures - - - (150,000) (233,000) Debt Principal Payments - - - - (4,527,000) Transfer from (to) Debt Service Reserve - - 177,857 (500,000) - ENDING RECLAMATION OPERATING RESERVE $ - $ - $ - $ 529,659 $ 529,659 TOTAL UNRESTRICTED RESERVES - RECLAMATION $ - $ - $ - $ 529,659 $ 529,659 RECLAMATION DEBT SERVICE RESERVE Target - One Year’s Annual Debt Service $ - $ - $ - $ - $ 7,731,000 Beginning Fund Balance - - - - 4,000,000 Transfer from Other Reserves - - - 4,000,000 - Loans from (to) Other Reserves --- - - Grants & Other Contributions - - - - 3,650,000 ENDING RECLAMATION DEBT SERVICE RESERVE $ - $ - $ - $ 4,000,000 $ 7,650,000 RECLAMATION CAPACITY FEES No Target Level $ - $ - $ - $ - $ - Beginning Balance 2,518,595 1,860,609 2,736,642 3,008,522 96,896 Capacity Fees Received 143,182 876,033 449,737 588,374 - Expenditures / Transfers to Other Reserves (801,168) - (177,857) (3,500,000) - ENDING RECLAMATION CAPACITY FEES $ 1,860,609 $ 2,736,642 $ 3,008,522 $ 96,896 $ 96,896 TOTAL RESTRICTED RESERVES - RECLAMATION $ 1,860,609 $ 2,736,642 $ 3,008,522 $ 4,096,896 $ 7,746,896 EAST VALLEY WATER DISTRICT | 73 Financial Summary UNRESTRICTED AND RESTRICTED EQUITY — RECLAMATION FY 2024-25 BUDGET | 74 UNRESTRICTED RESERVES Prior to the SNRC, the District contracted with the SBMWD for wastewater treatment, and all revenue billed and received was remitted to the SBMWD. Given this agreement, there was no opportunity or reason to build a reserve for wastewater treatment operations. The Water Reclamation Fund will establish unrestricted operating and capital replacement reserves, but unlike other funds, the Water Reclamation Fund must first establish a Debt Service reserve. As with other reserve funds, there is a clear prioritization and target for all types. Projections for the Reclamation Fund operations through the end of FY 2023-24 estimate that the Fund will have a surplus of approximately $1,030,000, of which $500,000 will be transferred to the Debt Service Reserve, and the balance of $529,659 will begin to build an Operating Reserve. FY 2024-25 will be the first full year of operations for the Reclamations plant, and the first payment on the state loan financing the plant construction is due in December. RESTRICTED RESERVES The tables for accumulated wastewater treatment capacity fees, which belong to the Reclamation Fund, and for the new Debt Service Reserve are shown above. The District began collecting wastewater treatment capacity fees when construction began on the SNRC, for this reason the accumulation of restricted funds began occurring prior to the creation of the Water Reclamation Fund. The debt service reserve, which is required by section 3.7(a) of the SNRC loan funding agreement with the State Water Resources Control Board, must have a balance equal to one year’s debt service on the loan from the SWRCB, approximately $7,500,000 (the Target Level). In FY 2023-24, a total of $4,000,000 was transferred by the Operating and Capacity Fee reserves to the Debt Service reserve to begin building the required balance. In FY 2024-25, an additional $3,650,000 in grants (CA Natural Resource Agency) and self- generation incentive payments (Edison) will supply the balance needed to finish funding the Debt Service reserve. The projected total for all Reclamation Fund reserves at the end of FY 2024-25 is $8,276,555. RECLAMATION RESERVES $2,736,642 $1M $3M $5M $7M $9M Unrestricted Restricted FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 Estimated FY 2024-25 Budget $1,860,609 $3,008,522 $4,096,896 $7,746,896 $529,659 $529,659 EAST VALLEY WATER DISTRICT | 75 LONG-RANGE FINANCIAL PLAN The Long-Range Financial Plan provides a forward-looking view of the District’s three different funds, allowing leadership, along with other stakeholders, to evaluate whether financial resources will be available to achieve the District’s long-term goals and objectives included in the Five-Year Work Plan. The Five-Year Work Plan and long range financial planning serve conjunctively as tools for future decision making regarding the District’s spending and projected revenues. As a multi-beneficial organization that provides water, wastewater, and water reclamation services, the District’s long-term planning efforts consider factors such as the age, condition, and efficiency of infrastructure used to deliver world-class services to District customers and maintaining compliance with changing regulations. Over the last decade, the cyclical droughts in California has raised water supply reliability, operational flexibility, and water quality, as prominent issues in strategic planning. Based on these identified priorities, the District has developed goals that will have a significant impact on the District’s financial planning and Budget over the next few years, including: • Cost recovery through user rates and development fees, as applicable; • Address rapidly rising energy costs and green energy regulations; • Ensure water quality and supply reliability; • Maintain organizational culture and staff capabilities; and • Replace aging infrastructure. The achievement of these goals is subject to certain assumptions but will remain a priority as they support the District Vision and Five-Year Work Plan. User Rates & Development Fees From Reserves COST DRIVER ASSUMPTION LINK TO DISTRICT GOALS AND OBJECTIVES Utility User Rates Support Reasonable Costs Related to Existing Customers; Development Fees Pay for New Infrastructure • Water usage per capita will not increase due to conservation efforts • Development will add 50 customers annually to District service area • Practice Transparent Fiscal Management ―Conduct Cost-of-Service Analysis for Rates • Enhance Planning Efforts for Future Demand Energy Costs and Green Energy Regulations • Digesters at SNRC will support energy requirements of plant • Incentives and federal credits will help defray the cost of additional self- generation projects • Identify Opportunities to Optimize Natural Resources ―Analyze Alternative Energy Sources • Enhance Planning Efforts that Respond to Future Demand FY 2024-25 BUDGET | 76 User Rates & Development Fees from Reserves The District updated all water and wastewater user rates in May 2024 to help ensure that operating revenue can cover the cost of operations, debt service costs and help maintain reserves. Updated rates were based on a three year Cost of Service Analysis and financial model, that considered the rapidly escalating cost of capital improvement projects that are needed to replace aging facilities. Adjustments will occur in three phases, one each during the fiscal years 2024-25, 2025-26, and 2026-27. Developer capacity fees will be updated in FY 2024-25 and will be based on an independent capacity fee study. Fees were last updated in December 2019, and although adopted fees include a provision for annual adjustment each July based on the prior calendar year’s Construction Cost Index, the index has not helped fees keep pace with construction costs. Updated miscellaneous fees and charges are primarily fees related to the collection of delinquents accounts, and charges for Engineering services. The amount of each of the fees and charges was established by determining the average amount of staff and equipment time required for a single occurrence, and then multiplying the time required by labor rates and equipment rental rates. Energy Costs and Green Energy Regulations Construction on the Sterling Natural Resource Center (SNRC) was completed in FY 2023-24, including anaerobic digesters capable of generating three megawatts of electrical power. This amount of power self-generation should allow the District to power the plant and produce excess energy to sell back to the Edison grid as soon as FY 2025-26 COST DRIVER ASSUMPTION LINK TO DISTRICT GOALS AND OBJECTIVES Water Quality and Reliability • Recycled water from SNRC will provide sustainable supply for recharge • Existing treatment processes will need to be enhanced to ensure product water meets standards • Ensure Safe & Reliable Services ―Complete Construction of SNRC ―Construct Third Monitoring Well Near Recycled Water Recharge ―Evaluate Feasibility of Salt Mitigation Organizational Culture / Staff Capabilities • Staff training, engagement and knowledge transfer will facilitate world class customer relations • Maximize Internal Capabilities Through Professional Development ―Develop Succession Plan ―Evaluate IT, SNRC Staffing ―Enhance Emergency Preparedness Training Aging Infrastructure • District’s rates will provide revenue for some, but not all, capital improvement projects • Grant funding will be available to help pay for the District’s infrastructure improvements • Dedicate Effort Toward System Maintenance & Modernization ―Pipeline Replacement Program ―Water Reservoir Rehabilitation Program ―New Well Construction ―Pursue Alternative Funding Sources EAST VALLEY WATER DISTRICT | 77 Financial Summary While other self-generation District facilities have not shared in the same level of success, state regulation requiring the integration of electric vehicles into the District’s fleet and the furtherance of other green energy goals, and the rising cost of purchased power, compel the District to explore more clean energy generating options, particularly while there are federal incentives to invest in clean energy alternatives. Over the next five years the District will consider the addition of solar panels and Tesla batteries, and consider participating in a regional effort to acquire hydro facilities, to help alleviate the pressures of rising energy prices and new regulations. Water Quality and Reliability The District built a State Water Project turnout at its Surface Water Treatment Plant in order to utilize as much imported water as feasible. This strategy would preserve water in the groundwater basin and allow the District to take delivery of, and treat, water at a high elevation, using gravity to assist with water distribution to customers. The alternative is to incur significant pumping costs by extracting water with wells and then pumping it uphill for distribution. Unfortunately, California continues to experience cyclical droughts, in which State Water Project deliveries are unreliable. For FY 2023-24, State Water Project contractor agencies, the source for the District’s imported water, have been told their annual allocation of imported water will be 15%, whereas, in the previous fiscal year, the supply provided was 100% of requested. As a result, EVWD will experience fluctuating power costs to pump groundwater over the next five years to offset the unreliability of available imported water. Organizational Culture and Staff Capabilities An aging workforce, emerging technology, inflation, and beginning a new enterprise activity with the completion of the Sterling Natural Resource Center (SNRC) water recycling facility have highlighted the need for the District to remain competitive regarding staff compensation. This is necessary in order to attract and retain talented team members to operate the state-of-the-art SNRC, or implement and maintain new technologies, while at the same time the District must remain prudent with the public funds used to pay compensation. Inflationary pressures resulted in an average of 4.3% COLA adjustments to salaries during the current three year Memorandum of Understanding with staff and will likely result in similar percentages being negotiated for future years when the current MOU ends in June 2026. Aging Infrastructure As mentioned under User Rates, adopted rates included funding for the Capital Improvement Program including water main replacements. The District must also replace three wells that were taken off-line due to their proximity to SNRC recycled water recharge basins, and the rapidly increasing cost to build new water tanks/reservoirs makes it imperative that the District allocate resources for the rehabilitation of existing tanks. Having the funding available to proactively contract for rehabilitation projects, rather than reacting to reports of system leaks or failures, allows the District to select the most opportune time to take plants or infrastructure off-line, minimizing overtime, avoiding excess power to run alternate facilities during peak hours, and [ptemtoa;;u avoiding water losses. The District has identified specific plants for rehabilitation and includes rehabilitation projects in Capital budget requests each year, but the District is also actively searching for external funding. FY 2025-29 Forecast REVENUE FORECAST Water, wastewater, and reclamation revenues are expected to increase moderately over the next five years due to continued development activity and approved rate adjustments. Rate adjustments were adopted in May 2024 and will be implemented beginning in July 2024. Additional approved rate adjustments become effective in January 2025. FY 2024-25 BUDGET | 78 Water Revenue projections include approved rate adjustments as well as a modest growth rate of 2% annually. Sales per capita is expected to remain flat as water budget based tiered rates implemented by the District incentivize consumers to use water efficiently. Wastewater revenue projections include rate adjustments in July 2024, for both collection and treatment charges, of about 7.0%. For years subsequent to 2024, a 3.0% escalation factor was used to account for potential future rate increases and/or growth related to new development. Other operating revenues, such as LRIP contributions from the groundwater basin watermaster for delivering recycled water for recharge, and tipping fees from waste haulers, will increase while the SNRC is scaling up to reach full capacity. At full capacity the SNRC is expected to produce 6,200 acre feet of recycled water and receive $173 per acre foot for a total annual contribution from San Bernardino Valley of $1,072,000. In addition, food waste haulers are projected to pay $.11 per gallon to offload their waste at the SNRC digesters and haulers could deliver as much as 130,000 gallons per day. The procurement and induction of external waste will be managed by a third party who will take 20% of receipts as a fee, with the remaining 80% ($0.88 per gallon) to be received by the District. Tipping fee revenue will be approximately $2,704,000 annually. OPERATING COST FORECAST Operating costs for the District include salaries and benefits, maintenance and operation of the water distribution, wastewater collection systems, water reclamation, contract services and materials and supplies. Costs also include monthly payments to the SBMWD for wastewater treatment services through October 2023. Toward the end of calendar year 2023 the SNRC will begin operations and contract payments to SBMWD will be phased out as the District gradually diverts wastewater flows to the SNRC, and those payments will be replaced by staff and direct operating costs related to the new Water Reclamation Fund. EMPLOYMENT EXPENSES Labor & Benefits are the largest costs in the District’s Budget and are adjusted in accordance with a memorandum of understanding (MOU) with employees. The current three-year MOU became effective in July 2023 and remains in effect through FY 2025-26 and the average increase for the three years was 5% due to the results of a salary survey. Retirement plan contributions make up two-thirds of total benefit costs and are expected to increase 1% per year, and other benefit costs including medical are projected to increase 5% per year. Staffing levels will increase from 73 to 75 full-time positions in FY 2024-25 as the District fills two more positions tied to commencement of operations at the SNRC – Wastewater Treatment Plant Operator and a Facilities Maintenance Worker. WASTEWATER TREATMENT Between the months of January and March of 2024, the District completed a phased transition of all of its wastewater flows away from the City of San Bernardino treatment plant to the newly commissioned Sterling Natural Resource Center. As a result, future years beginning with FY 2024-25 will no longer show contracted treatment costs of approximately $8.6 million, but instead will show approximately $7.7 million in operating expenses associated with water reclamation / recycling. POWER COSTS The District has taken steps to insulate ratepayers from significant increases in the cost of electricity by implementing energy conservation measures, installing a hydro-electric generation facility, and constructing digesters at the SNRC to generate electricity. EAST VALLEY WATER DISTRICT | 79 Financial Summary The SNRC digesters will take a few months to ramp up to full capacity during FY 2024-25, so the budget for that year includes approximately $1.4 million in net power costs incurred for reclamation activities. Thereafter, the District is projected to increase energy production to the point where energy needed to power the operations of the SNRC is produced on site, and to possibly produce excess energy which can be sold back to the grid. With all of these measures in place the District continues to experience increased power costs at plants without alternative energy sources or generation capabilities, and accordingly, will continue to investigate additional power generation facilities. Although the existing measures mitigate the extent of price increases, the District projects that energy costs will still increase between 3% and 5% annually for the next five years. MATERIALS AND SUPPLIES Materials and supplies are projected to increase by 19% in FY 2023-24 as the SNRC completes commissioning transitioning the facility to regularly purchase chemicals and other supplies. In the following years cost increases are based on inflation projections of 3% for FY 2024-25 through 2027-28. These significant inflation percentages are supported by notification from vendors stating that supply chain interruptions are creating shortages and increasing costs. OTHER CONTRACTED SERVICES Other Contracted Services such as facilities maintenance, professional consulting, security, customer bill generation and printing are increasing 34% to $11.9 million for FY 2023-24, due to the commencement of SNRC operations in Spring of 2024. Thereafter an inflation adjustment factor of 3% has been used to project costs for the future as vendors are expected to realize, and pass through, the increased cost of materials for the reasons explained above in the Material and Supplies Section. DEBT SERVICE FORECAST Debt service costs include principal and interest on Revenue Bonds and Loans issued to finance system improvements. Future debt service cost projections include an additional loan from the State Revolving Fund issued to finance the construction of the SNRC. The final loan amount will not be determined until the project is complete, however, the additional debt related to this project is expected to increase annual debt service from $3.4 million in FY 2023-24, to $10.2 million in FY 2024-25. FY 2023-24 also included the first of ten annual installments of $700,000 to be made to the SBMWD to help offset the loss of revenue from the District which will now treat its own wastewater. A schedule of future debt service, including the State Revolving Fund loan from the SWRCB, is shown on page 63 of this document. REVENUE FUNDED CAPITAL EXPENDITURES FORECAST Revenue funded capital spending is projected to average $4.2 million over the next five years. Projects included in the forecast are discussed in the five-year Capital Improvement Program section of this budget. FY 2024-25 BUDGET | 80 FORECAST FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 REVENUE Water Sales / Wastewater Collection $ 24,435,000 $ 25,250,000 $ 26,557,000 $ 27,678,000 $ 28,851,000 Wastewater Treatment 12,233,000 13,458,000 14,798,000 15,242,000 15,700,000 Meter Fees 10,525,000 11,320,000 12,000,000 12,120,000 12,242,000 LRIP Revenue 1,038,000 1,038,000 1,038,000 1,038,000 1,038,000 Other Operating Charges 2,674,000 3,614,000 3,609,000 3,604,000 3,599,000 Investment Income 880,000 1,367,000 1,117,000 1,279,000 1,449,000 Grants / Other Contributions 3,650,000 - 1,125,000 - 1,125,000 Other Income 110,000 120,000 120,000 120,000 120,000 TOTAL REVENUE $ 55,545,000 $ 56,167,000 $ 60,364,000 $ 61,081,000 $ 64,124,000 EXPENDITURES Labor & Benefits $ 14,478,000 $ 15,203,000 $ 15,830,000 $ 16,484,000 $ 17,021,000 Water Costs 833,000 768,000 768,000 768,000 768,000 Power Costs 4,625,000 4,122,000 3,922,000 3,925,000 3,931,000 Contract Services 12,928,750 13,317,980 13,718,349 14,131,210 14,555,666 Materials 2,808,250 2,907,350 3,010,668 3,117,051 3,227,603 Conservation 120,000 120,000 - - - Other Operating Expenses 819,000 826,000 833,050 840,153 847,310 Insurance 2,282,000 2,282,000 2,329,000 2,377,000 2,426,000 Debt Service 10,875,000 10,478,000 10,480,000 10,485,000 10,480,000 Capital Outlay 1,453,000 1,450,000 1,450,000 1,450,000 1,450,000 Capital Improvement Program 6,730,000 7,945,000 3,557,000 2,451,000 3,337,000 TOTAL EXPENDITURES $ 57,952,000 $ 59,419,330 $ 55,898,067 $ 56,028,413 $ 58,043,580 CHANGE IN EQUITY $ (2,407,000)$ (3,252,330) $ 4,465,933 $ 5,052,587 $ 6,080,420 BEGINNING UNRESTRICTED EQUITY $ 39,691,719 $ 37,319,719 $ 34,067,389 $ 38,413,322 $ 43,345,909 ENDING UNRESTRICTED EQUITY $ 37,284,719 $ 34,067,389 $ 38,533,322 $ 43,465,909 $ 49,426,329 Five Year Forecast FY 2024-25 Through FY 2028-29 The following financial forecast is presented to provide a general understanding of how long-term goals will affect operating revenue, operating expenditures, debt service costs, and capital expenditures over the next five years. Budget based rates promote water efficiency and are based on the cost-of-service while remaining equitable and fair. water fundfy 2024-25 EAST VALLEY WATER DISTRICT | 81 WA T E R F U N D FY 2024-25 BUDGET | 82 WATER FUND Rates The District has taken many steps to encourage water-use efficiency and water supply reliability, and accordingly utilizes water budget-based rates for use in billing for water usage. The water budget-based rates promote water efficiency and are based on the cost-of-service; they are equitable and fair; and support sustainable behavior change. The State Water Resources Control Board approves of the water budget-based rate structure for its ability to produce superior water savings, and this alternative approach is compliant with the California Drought Conservation Regulations. The District also collects a monthly fixed charge based on meter size serving the property. This fixed charge helps ensure the water fund’s long-term financial sustainability. In May 2024, a public hearing was held in accordance with Proposition 218 at which the Governing Board adopted rates that would adjust over a three-year period beginning January 1, 2025. The Board also approved a recommendation to revise billing for commercial customers to a flat volumetric rate as their water use is for business purposes and not for health and safety or irrigation purposes which are used to define water use for other customer classes. The existing rates, and three phases of adjustments adopted in May 2024 are listed below: COMMODITY CHARGES EAST VALLEY WATER DISTRICT | 83 Rates Current FY 2024-25 FY 2025-26 FY 2026-27 Tier 1 $ 2.11 $ 2.19 $ 2.33 $ 2.47 Tier 2 2.70 2.84 3.02 3.21 Tier 3 4.18 4.10 4.35 4.62 Commercial Flat Rate - 2.39 2.54 2.70 East Valley Water District understands the importance of preserving California’s water supplies. The Water Fund pays for all activities related to acquiring and treating raw water, then pumping and distributing the treated water to District customers. FY 2024-25 BUDGET | 84 MONTHLY METER CHARGES MONTHLY FIRE LINE SERVICE CHARGES PROJECTED TIER REVENUE BY CUSTOMER CLASS Meter Size Current FY 2024-25 FY 2025-26 FY 2026-27 5/8 in. $ 25.49 $ 27.52 $ 29.18 $ 30.94 3/4 in. 32.74 34.62 36.70 38.91 1 in. 47.24 48.83 51.76 54.87 1.5 in. 83.50 84.35 89.42 94.79 2 in. 127.00 126.97 134.59 142.67 3 in. 243.01 368.48 390.59 414.03 4 in. 373.52 901.23 955.31 1,012.63 6 in. 736.05 1,433.89 1,520.02 1,611.23 8 in. 2,041.16 2,854.65 3,025.93 3,207.49 10 in. 2,041.16 4,630.48 4,908.31 5,202.81 12 in. 2,041.16 5,695.98 6,037.74 6,400.01 Meter Size Current FY 2024-25 FY 2025-26 FY 2026-27 1 in. $8.78 $14.01 $14.86 $15.76 1.5 in.13.18 14.36 15.23 16.15 2 in.17.57 14.71 15.6 16.54 3 in.26.35 15.41 16.34 17.33 4 in.35.14 16.11 17.08 18.11 6 in.52.7 17.51 18.57 19.69 8 in.70.27 18.91 20.05 21.26 10 in.87.84 20.31 21.53 22.83 12 in.87.84 21.71 23.02 24.41 Customer Class Tier 1 Tier 2 Tier 3 Flat Rate Total Residential $ 4,605,000 $ 3,887,000 $ 2,009,000 $ - $ 10,501,000 Multi-Family 1,937,000 777,000 1,200,000 - 3,914,000 Commercial 605,000 54,000 248,000 - 907,000 Commercial - Flat Rate --- 679,000 679,000 Irrigation / Construction - 1,114,000 805,000 - 1,919,000 TOTAL $ 7,147,000 $ 5,832,000 $ 4,262,000 $ 679,000 $ 17,920,000 Class No. Of Accounts Tier 1 (Acre Feet) Tier 2 (Acre Feet) Tier 3 (Acre Feet) Flat Rate Total (Acre Feet)Total Sales Residential 19,976 4,920 3,254 1,111 - 9,285 $ 10,501,000 Multi-Family 479 2,067 650 664 - 3,381 3,914,000 Commercial 712 751 53 161 519 1,484 1,586,000 Irrigation / Construction 364 - 933 445 - 1,378 1,919,000 TOTALS 21,531 7,738 4,890 2,381 519 15,528 $ 17,920,000 EAST VALLEY WATER DISTRICT | 85 Water Fund WATER SALES The table below projects the amount of water to be produced for FY 2024-25. The amount of water produced is more than the amount of water sold to account for unanticipated water demand and regular system water losses. WATER PRODUCTION (ACRE FEET) Assumptions and Trends The development of the revenue projections for FY 2024-25 requires management to estimate customer consumption for the next year. The District will provide water services through approximately 21,517 domestic and irrigation connections in FY 2024-25. In addition, 277 commercial fire services and 14 temporary hydrant meters are connected to the District’s system. Water demand is estimated at 6,764,000 hundred cubic feet of water (HCF = 748 gallons). The estimate is based on the baseline year consumption established for rate modeling, and actual consumption history for the last five years. Staff is confident projections will allow adequate funding for Program Goals and Objectives without considerable risk of overstatement. The District considers multiple factors in calculating each customer’s monthly water budget: Since the adoption of water budget-based rates, the District has experienced success in reducing water consumption and stabilizing revenues to ensure operating and capital needs of the District are adequately funded. How Water Bills Are Calculated — Residential Indoor Water Budgets are unique to each customer and are based on the number of occupants residing in the house. Each occupant is budgeted 55 gallons of water per day (gpd) for efficient indoor use, this allocation will drop to 47 gallons per day on January 1, 2025 in accordance with state guidelines. The total gallons per day for all occupants is then multiplied by the number of days in the billing period. Source of Supply FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Projected FY 2024-25 Budget Ground Water 12,800 12,826 14,590 11,543 11,543 Surface Water 3,574 3,581 2,575 3,950 3,950 Purchased Water 800 800 - 1,800 1,800 TOTAL 17,174 17,207 17,165 17,293 17,293 • Number of Occupants • Number of Dwelling Units • Medical Needs • Horses / Livestock • Business Needs • Agricultural Needs • Irrigable Landscape • Weather • Meter Size FY 2024-25 BUDGET | 86 TIER 11 INDOOR BUDGET EXAMPLE OUTDOOR WATER BUDGETS are unique to customer property and are based on the landscape area. Landscape area represents the square footage of the property’s landscape requiring irrigation (e.g., grass, parkways, trees, bushes, and various plants). TIER 22 FACTORS In determining the customer’s outdoor budget, the following factors and conversions are made during each billing cycle. Square Footage of Landscape Area (Irrigable Landscape): When the District restructured its uniform rates to budget- based rates in FY 2014-15, the District hired a consultant that provided property information for each customer’s parcel located within the District’s service area. The consultant used an advanced camera that was attached to an airplane flown over the District boundary capturing each parcel’s unique landscape area square footage. Evapotranspiration (ETo): The process by which water is transferred from the land to the atmosphere by evaporation from the soil and other surfaces and by transpiration from plants. ETo is measured in inches, which is captured and recorded by a State-Certified weather station. The District received ETo data from the California Irrigation Management Information System (CIMIS) Station ID 251 in Highland, California. The sum of daily ETo measurement during the billing period is used in the calculation for efficient outdoor water usage. Crop Coefficient (Kc): The properties of plants used in predicting evapotranspiration (ETo). Below is a table listing the values used in each month. The District has elected to use the Cool-Season Crop Coefficient. Square Footage to Gallons Conversion: The District provides water in the measurement of HCF (1 unit = 748 gallons), but the ETo rate is measured in inches. Additionally, the measurement of landscape area is square foot which must be converted to gallons to determine the outdoor budget. One square foot equals 0.62 gallons. The sum of the billing periods ETo is multiplied by 0.62 gallons to develop the efficient outdoor water budget. 55 Gal 748 Persons Per Household Per Person, Per Day Days in Billing Cycle Number of Gallons In One Unit Tier 1 Budget 55 Gal 74835Days 7,700 Gallons or 10 Units of Water for Tier 1 Budget Example:Tier 1 budget calculation for a home with 4 occupants during a 35 day billing cycle. Month JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Annual Average Cool Season Plant Factor 0.61 0.64 0.75 1.04 0.95 0.88 0.94 0.86 0.74 0.75 0.69 0.60 0.79 Warm Season Plant Factor 0.55 0.54 0.76 0.72 0.79 0.68 0.71 0.71 0.62 0.54 0.58 0.55 0.65 One Foot On e F o o t WATER One Cubic Foot = 7.48 Gallons One F o o t One Foot WATER 1 Inch of Water perSquare Foot = 0.62 Gallons 1” EAST VALLEY WATER DISTRICT | 87 Water Fund TIER 22 OUTDOOR BUDGET EXAMPLE TIER 33 INEFFICIENT USE When a customer exceeds their Tier 1 and Tier 2 budgets, the excess units of water used are billed at the Tier 3 rate. The District has developed its rates in accordance with Proposition 218, allowing the District and like agencies to charge customers the highest rate due to the additional cost incurred by the District for delivering inefficient water, including but not limited to, imported water cost, electricity expenses for pumping and boosting water throughout the system, and chemicals needed for the treatment process. How Water Bills Are Calculated — Non Residential Non-residential commercial customers are billed at a flat rate for each unit of water usage to account for the fact that usage is not specifically allocated for health and safety or irrigation purposes, but for business processes. 7480.620.95 Landscape Area in Square Feet Monthly Evapotranspiration Rate Note: This rate varies per day and month Monthly Plant Factor Note: Plant factor changes each month Number of Gallons In One Unit Sq. Ft. to Gallons Conversion Factor for Irrigation 748 15,885 Gallons or 22 Units of Waterfor Tier 2 Usage Tier 2 Usage 0.620.953,000 8.99 Landscape Area in Square Feet Evapotranspiration Rate Plant Factor Sq. Ft. to Gallons Conversion Factor for Irrigation Number of Gallons In One Unit Example: Tier 2 budget calculation for a home with 3,000 sq. ft. of irrigable area. 1,500 Sq. Ft. 1,500 Sq. Ft. 0.95 8.99 May Plant Factor Evapotranspiration Rate Sq. Ft. = Square Feet HCF = Hundred Cubic Feet or 1 Billing Unit FY 2024-25 BUDGET | 88 METER CHARGE REVENUE Meter Size No. of Services Rate July–Dec Rate Jan–June Total 5/8 in. 3,233 $25.49 $27.52 $1,028,000 3/4 in. 13,369 32.74 34.62 5,403,000 1 in. 4,232 47.24 48.83 2,440,000 1.5 in. 273 83.50 84.35 274,000 2 in. 299 127.00 126.97 456,000 3 in. 77 243.01 368.48 282,000 4 in. 29 373.52 901.23 222,000 6 in. 12 736.05 1,433.89 156,000 8 in. 7 2,041.16 2,854.65 206,000 Fire Service 1.5 in. 4 14.36 14.36 1,000 Fire Service 4 in. 49 16.11 16.11 10,000 Fire Service 6 in. 142 17.51 17.51 29,000 Fire Service 8 in. 64 18.91 18.91 13,000 Fire Service 10 in. 17 20.31 20.31 4,000 Fire Service 12 in. 1 21.71 21.71 1,000 TOTALS 21,808 $10,525,000 METER CHARGE REVENUE BY METER SIZE The District’s Operating Revenue includes fixed charges, which are based on the size of the meter serving the customer’s property. The rates meet the compliance requirements of Proposition 218. Meter Charges have been established based on a comprehensive third-party cost-of-service analysis, and the rates provide funding for operating and capital needs. Other Charges & Other Revenue Sources Other charges and other revenue include fees related to the collection of delinquent accounts, investment revenue, reimbursements from other agencies, facility rentals, and other miscellaneous revenue. ASSUMPTIONS AND CONSIDERATIONS Delinquent fees, final notice charges, and disconnect/reconnect fees will increase as the State moratorium on service disconnections for non-payment has expired and collection efforts will resume. The LAIF interest rate, which is paid on District funds invested with LAIF, lags behind adjustments to the federal rate but should trend upward over the next year, and investment earnings with it. Expenses The Water Fund is one of three enterprise funds the District operates. Water Fund resources pay for operations and maintenance of the water distribution system, repair and replacement of water infrastructure, a portion of District customer accounts and administration costs, and debt service. Water Fund debt is incurred to provide full or partial funding for multiple CIP projects. EAST VALLEY WATER DISTRICT | 89 Water Fund ASSUMPTIONS AND CONSIDERATIONS FOR OPERATING EXPENSES Expenses are based on the cost of providing water to meet customer demands. Primary cost considerations and assumptions include: • Electricity Expense for operating wells, pumps and boosters, treatment plants and other facilities. • Chemical Expense purchased for the treatment of source water before it enters the distribution system for consumption. The cost trends for chemicals are stable, with no foreseeable significant increases. • Contract Services are expenses incurred for services provided by third parties. Many District programs utilize consultants or vendors who offer quality and economical services. Since these services are unique to the program, it is difficult to list them all. Program Managers are responsible for researching or pre- bidding services in developing their program’s budget. • Materials and Supplies are needed to support field operations and general administration related to operating the District. • The District is continuing to focus effort on the Conservation Program, which is committed to assisting customers with conservation efforts through the continuance of the rebate programs and instructor-led seminars and demonstrations. The following costs are allocated to all Funds, including the Water Fund: • Customer Account costs are related to reading meters, billing and payment collection, and responding to customer inquiries. • Administration costs are incurred in various programs, including, but not limited to Human Resources & Risk Management, Public Affairs, Engineering and Finance. DEBT SERVICE & CAPITAL EXPENSES The District has issued debt to pay for capital expenditures for replacing, improving, and adding infrastructure. In addition to debt financing, the District also budgets a portion of operating revenue each year to cash finance certain capital projects. CapitalExpenditures 40% Administration 9% Debt Service 6%15% Source of Supply 6% CustomerAccounts 4% 4% 16% Transmission &Distribution Pumps &Boosters Treatment Water Fund Expenses by Cost Center FY 2024-25 BUDGET | 90 Conclusions The proposed budget for the Water Fund is balanced, including contributions to reserves. District staff will continue to monitor the revenues and expenses and present the progress to the Governing Board on a periodic basis. FY 2024-25 Proposed Water Fund Budget FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget REVENUE / SOURCES Water Sales $ 18,472,875 $ 17,004,577 $ 17,695,000 $ 18,014,499 $ 17,920,000 Meter Charges 9,192,297 9,831,561 10,096,000 10,067,528 10,525,000 Penalties 298,362 567,398 450,000 574,408 416,000 Other Operating Revenue 1,420,752 1,485,861 42,000 1,188,142 115,000 Miscellaneous Revenue 180,486 345,869 420,000 193,337 520,000 Gain on Disposal of Assets 807,425 23,669 - - - TOTAL REVENUE / SOURCES $ 30,372,197 $ 29,258,935 $ 28,703,000 $ 30,037,914 $ 29,496,000 OPERATING EXPENSES Employment Expenses $ 9,787,000 $ 9,502,190 $ 9,484,200 $ 9,261,830 $10,313,300 Water Costs 373,096 257,161 768,000 595,316 833,000 Power Costs 2,565,150 3,467,006 3,165,000 2,433,808 3,225,000 Materials & Supplies 1,604,795 1,937,379 1,617,600 1,667,084 1,847,500 Contract Services 5,048,055 6,458,208 7,077,000 6,881,434 8,524,000 Other Operating Expenses 507,757 475,594 383,200 312,788 405,200 TOTAL OPERATING EXPENSES $ 19,885,853 $ 22,097,538 $ 22,495,000 $ 21,152,260 $ 25,148,000 OTHER EXPENSES Debt Principal $ 2,088,231 $ 1,260,957 $ 2,217,000 $ 2,217,000 $ 1,873,000 Debt Interest Expense 906,479 812,244 886,000 886,000 789,000 Other Non-Operating Expense 322,574 - - - - Capital Outlay 541,195 164,804 670,000 670,000 1,128,000 Capital Improvement Program 2,724,603 5,118,007 2,695,000 2,695,000 558,000 Transfer to (from) Reserves 3,903,262 (194,615) (260,000) 2,417,654 - TOTAL OTHER EXPENSES $ 10,486,344 $ 7,161,397 $ 6,208,000 $ 8,885,654 $ 4,348,000 TOTAL OPERATING / OTHER EXPENSES $ 30,372,197 $ 29,258,935 $ 28,703,000 $ 30,037,914 $ 29,496,000 NET SURPLUS $ - $ - $ - $ - $ - EAST VALLEY WATER DISTRICT | 91 Water Fund WATER FUND REVENUES VS. EXPENSES The District delivers over 14 million gallons of water daily through 300 miles of water distribution pipeline. $17,683,000 $21,415,000 $21,163,000 $21,125,000 $25,148,000 $5M $10M $15M $20M $25M $30M FY 2019-20 Actual FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Estimated FY 2024-25 Proposed Operating Expenses Revenues $17,487,000 $28,930,000 $28,388,000 $27,909,000 $30,038,000 $29,496,000 $26,583,000 co n s i d e r s d a i l y o p e r a t i o n a l n e e d s th e a n n u a l b u d g e t FY 2024-25 BUDGET | 92 The activities of enterprise funds closely resemble those of ongoing businesses in which the purpose is to conserve and add to resources while funding operating expenses from current revenues. wastewater fundfy 2024-25 EAST VALLEY WATER DISTRICT | 93 WA S T E W A T E R F U N D FY 2024-25 BUDGET | 94 WASTEWATER FUND The Wastewater Fund pays for all activities related to the operations and maintenance of the District’s wastewater collection system. In FY 2021-22 and prior, the wastewater fund also reported all activities related to wastewater treatment, which consisted primarily of billing and collection of wastewater treatment revenue on behalf of the San Bernardino Municipal Water Department, and remittance of those revenues to SBMWD on a monthly basis. However, with the District’s completion of the Sterling Natural Resource Center, reporting of past and current wastewater treatment activity is now shown in the District’s Water Reclamation Fund. Revenues The Wastewater Fund relies primarily on revenue from Wastewater Collection System charges. Wastewater Collection rate adjustments are adopted at a public hearing that occurs every three to five years, and the adjustments are supported by an independent cost-of-service analysis. The most recent analysis was completed in January of 2024 and the rates proposed by that analysis will become effective July 1, 2024. The adopted rates by customer class are listed in the rate tables below. RESIDENTIAL Residential collection system rates were restructured in FY2021-22 to charge customers in a manner more consistent with the nature of their customer class. The updated multi-family rates add equitability because they consider the number of dwelling units associated with an account and then assess a monthly fixed charge for each dwelling unit, very similar to charges to single-family accounts. Both residential account types, Single-Family and Multi-Family, are considered residential accounts as they have similar impacts to the collection system, whereas Multi-Family accounts were previously billed similar to non-residential (commercial) accounts. NON-RESIDENTIAL The District also bills non-residential customers on a monthly basis using a different calculation. The non-residential charge consists of two components—a flat rate and a consumption based rate. The flat rate is assessed once per billing cycle, while the consumption based rate is assessed for every hundred cubic feet (HCF), of water consumption in the billing period. Additionally, the consumption-based rate varies depending on the strength of wastewater discharged into the collection system. There are four strength categories: low strength, medium strength, high strength, and mixed use. Shown on the following page are the calculations for projected wastewater system charge revenue from all customer classes for FY 2024-25. EAST VALLEY WATER DISTRICT | 95 FY 2024-25 BUDGET | 96 Customer Type Units Monthly Fixed Charge Usage (HCF)Charge per HCF Total Single-Family Residential 19,450 $ 16.70 -$ - $ 3,897,500 Multi-Family Residential 10,963 15.48 -- 2,036,500 Commercial Low Strength 393 10.59 210,000 0.77 212,000 Commercial Medium Strength 69 10.59 6,000 0.77 60,000 Commercial High Strength 81 10.59 196,000 0.77 161,000 Commercial Mixed Use 77 10.59 312,000 Varies 148,000 TOTAL 31,033 $ 6,515,000 Other Revenue Other revenue posted to the Wastewater Fund include: • Investment Income — Allocated based on the balance of the funds invested reserves. • Penalties — Fees related to the collection of delinquent utility accounts. These revenues are projected based on an estimated number of occurrences during the fiscal year and they are shared with the Water Fund. • Miscellaneous Revenue — These fees include items such as the collection of delinquent accounts, investment revenue, and inspections. Expenses Operating expenses have remained consistent in the Wastewater Fund. The District typically utilizes a crew of four field staff plus a Supervisor to conduct preventative maintenance programs on the wastewater pipelines. This includes video monitoring and cleaning the lines on a regular schedule. Also, the fund’s budget includes contracting for spot repairs of the conveyance system when video monitoring reveals minor deficiencies or faults in the wastewater collection lines. The Wastewater Fund also continues to share in allocated costs from internal service or administrative type programs within the District usually at a 30% allocation. Cost Center Amount Transmission & Distribution $ 975,150 Customer Service 663,600 Administration 4,367,250 Debt Service 482,000 Transfer to Reserves - Capital Expenditures 242,000 TOTAL $ 6,730,000 EAST VALLEY WATER DISTRICT | 97 Wastewater Fund Conclusions The Wastewater Fund is balanced and, after several years, is building the financial capacity to begin a pipeline replacement program and/or establish a Capital Replacement reserve. District staff will continue to monitor the revenues and expenses and, if appropriate, recommend funding new projects during the budget review(s) with the Governing Board. FY 2024-25 Proposed Wastewater Fund Budget FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget REVENUE / SOURCES Penalties $ 106,560 $ 59,944 $ 60,000 $ 60,701 $ 110,000 Wastewater System Charges 4,828,525 5,651,554 5,968,000 5,957,067 6,515,000 Wastewater Treatment Charges 9,764,357 - - - - Other Operating Revenue 1,745,551 523,441 - 742,202 5,000 Miscellaneous Revenue 17,070 33,465 20,000 175,303 100,000 Gain on Disposal of Assets 235,137 6,465 - - - TOTAL REVENUE / SOURCES $ 16,697,200 $ 6,274,869 $ 6,048,000 $ 6,935,273 $ 6,730,000 Wastewater Fund Expenses by Cost Center 65 % Administration 7% Debt Service4% CapitalExpenditures 14% Collection &Transmission 10% CustomerAccounts FY 2024-25 BUDGET | 98 FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget OPERATING EXPENSES Employment Expenses $ 2,549,215 $ 2,602,446 $ 2,569,800 $ 2,436,720 $ 2,783,700 Materials & Supplies 157,881 123,888 155,400 159,799 173,750 Contract Services 10,259,072 1,784,271 2,121,000 2,231,612 2,930,750 Other Operating Expenses 92,460 80,572 113,800 81,182 117,800 TOTAL OPERATING EXPENSES $ 13,058,628 $ 4,591,177 $ 4,960,000 $ 4,909,313 $ 6,006,000 OTHER EXPENSES Debt Principal $ 170,000 $ 175,000 $ 175,000 $ 175,000 $ 385,000 Debt Interest Expense 210,654 144,370 98,000 98,000 97,000 Other Non-Operating Expense 158,990 - - - - Capital Outlay - - 285,000 285,000 242,000 Capital Improvement Program 679,228 541,925 300,000 300,000 - Transfer to (from) Reserves 2,419,700 822,397 230,000 1,167,960 - TOTAL OTHER EXPENSES $ 3,638,572 $ 1,683,692 $ 1,088,000 $ 2,025,960 $ 724,000 TOTAL OPERATING / OTHER EXPENSES $ 16,697,200 $ 6,274,869 $ 6,048,000 $ 6,935,273 $ 6,730,000 NET SURPLUS $ - $ - $ - $ - $ - World class public service requires a constant commitment to creative solutions and innovation. waterreclamation fund fy 2024-25 EAST VALLEY WATER DISTRICT | 99 WA T E R RE C L A M A T I O N F U N D FY 2024-25 BUDGET | 100 WATER RECLAMATION FUND The Water Reclamation Fund pays for all activities related to the operation of the SNRC and the treatment of the District’s wastewater. The District has established wastewater treatment rates to cover water reclamation costs, which are offset by energy generation from anaerobic digestion processes at the SNRC. Revenues The Water Reclamation Fund relies primarily on revenue from Wastewater Treatment charges. These are supplemented by Non-Rate operating revenue generated from third parties, miscellaneous revenue, interest income, and capacity charges for new services. On May 15, 2024, the Governing Board adopted new treatment rates effective after July 1, 2024. The adopted rates by customer class are listed in the rate tables on the next page. RESIDENTIAL Residential treatment rates are structured to charge customers in a manner consistent with the nature of their customer class. Redesigned multi-family rates in FY 2021-22 added equitability because they consider the number of dwelling units associated with an account and then assess a fixed charge for each dwelling unit, very similar to charges to single-family accounts. Both account types, Single-Family and Multi-Family, are considered residential accounts as they have similar requirements for treatment, whereas Multi-Family accounts were previously billed similar to non-residential (commercial) accounts. NON-RESIDENTIAL The District bills non-residential customers on a monthly basis for wastewater using a different calculation. The non- residential charge consists of two components—a flat rate and a consumption based rate. The flat rate is assessed once per billing cycle, while the consumption based rate is assessed for every hundred cubic feet (HCF) of water consumption in the billing period. Additionally, the consumption based rate varies significantly depending on the strength of a customer’s wastewater discharged for treatment. There are four strength categories: low strength, medium strength, high strength, and mixed use. Shown on the following page are the calculations for projected wastewater treatment revenue from all customer classes for FY 2024-25. EAST VALLEY WATER DISTRICT | 101 FY 2024-25 BUDGET | 102 Customer Type Units Monthly Fixed Charge Usage (HCF)Charge per HCF Total Single-Family Residential 19,450 $ 29.79 $ 6,953,000 Multi-Family Residential 10,963 25.67 3,377,000 Commercial Low Strength 393 9.16 210,000 $ 2.19 503,000 Commercial Medium Strength 69 9.16 67,000 2.54 178,000 Commercial High Strength 81 9.16 196,000 3.96 785,000 Commercial Mixed Use 77 9.16 312,000 Varies 437,000 TOTAL 31,033 $ 12,233,000 Other Revenue Other revenues posted to the Reclamation fund include: • Other Operating Income — Consists of fees charged to, or earned from, third parties. Currently these include tipping fees charged to liquid waste haulers who unload at the SNRC digesters, and Local Resource Investment Program (LRIP) revenue earned. • Investment Income — Allocated based on the balance of the funds invested reserves. • Miscellaneous Revenue — These fees include items such as the collection of delinquent accounts, investment revenue, and inspections. Expenses With the startup of operations at the SNRC in January 2024, this fund has seen an anticipated increase in expenses as commissioning and treatment operations initiated. During FY 2024-25 the District will utilize a field staff of nine for plant operations and maintenance of the SNRC. The District has forecasted these types of expenses and planned for these operations through the District’s wastewater rates. Water Reclamation Fund Expenses by Cost Center CapitalExpenditures 49% Debt Service 49% Reclamation Operations 2% EAST VALLEY WATER DISTRICT | 103 Water Reclamation Fund Conclusion The new Water Reclamation Fund is balanced, however, with the recent start of new operations, there will be future adjustments in this fund as the District becomes more efficient in the treatment process. District staff will continue to monitor the revenues and expenses and present the progress to the Governing Board on a semi-annual basis. FY 2024-25 Proposed Water Reclamation Fund Budget FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget REVENUE / SOURCES Water Sales $ - $ - $ 332,000 $ 450,000 $ 1,072,000 Penalties - - - - 60,000 Wastewater Treatment Charges - 10,108,850 10,379,000 10,572,000 12,233,000 Other Operating Revenue - 449,578 500,000 76,873 2,058,000 Miscellaneous Revenue - - 100,000 167,730 280,000 TOTAL REVENUE / SOURCES $ - $ 10,558,428 $ 11,311,000 $ 11,266,603 $ 15,703,000 OPERATING EXPENSES Employment Expenses $ - $ 952,828 $ 1,259,000 $ 1,225,740 $ 1,732,000 Power Costs - 178,308 1,500,000 1,300,000 1,400,000 Materials & Supplies - 72,847 618,000 308,000 787,000 Contract Services - 9,079,706 7,764,000 7,241,229 3,800,000 Other Operating Expenses - 3,018 20,000 11,975 20,000 TOTAL OPERATING EXPENSES $ - $ 10,286,707 $ 11,161,000 $ 10,086,944 $ 7,739,000 OTHER EXPENSES Debt Principal $ - $ - $ - $ - $ 4,527,000 Debt Interest Expense - - - - 3,204,000 Capital Outlay - - 150,000 150,000 83,000 Capital Improvement Program - - - - 150,000 Transfer to (from) Reserves - 271,721 - 1,029,659 - TOTAL OTHER EXPENSES $ - $ 271,721 $ 150,000 $ 1,179,659 $ 7,964,000 TOTAL OPERATING / OTHER EXPENSES $ - $ 10,558,428 $ 11,311,000 $ 11,266,603 $ 15,703,000 NET SURPLUS $ - $ - $ - $ - $ - de m o n s t r a t e s r e s p o n s i b i l i t y th e a n n u a l b u d g e t FY 2024-25 BUDGET | 104 The District conducts an extensive process gathering input from internal staff and the community throughout the budget development and review process. consolidatedfinancial schedules fy 2024-25 EAST VALLEY WATER DISTRICT | 105 C O N S O L I D A T E D F I N A N C I A L S C H E D U L E FY 2024-25 BUDGET | 106 CONSOLIDATED FINANCIAL SUMMARY Overview of revenues and other financing sources and expenditures. Districtwide Summary FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed REVENUES 4100 Water Sales $ 17,004,577 $ 18,027,000 $ 18,464,499 $ 18,992,000 $ 965,000 5% 4200 Meter Charges 9,831,561 10,096,000 10,067,528 10,525,000 429,000 4% 4301 Penalties 627,342 510,000 635,109 586,000 76,000 15% 4400 Wastewater Collection Charges 5,651,554 5,968,000 5,957,067 6,515,000 547,000 9% 4500 Wastewater Treatment Charges 10,108,850 10,379,000 10,572,000 12,233,000 1,854,000 18% 4605 Other Operating Charges 2,458,880 542,000 2,007,217 2,178,000 1,636,000 302% 4700 Miscellaneous Revenue 379,334 540,000 536,370 900,000 360,000 67% 4801 Gain on Disposal of Assets 30,134 - - - - 0% TOTAL REVENUES $ 46,092,232 $ 46,062,000 $ 48,239,790 $ 51,929,000 $ 5,867,000 13% EXPENSES – OPERATING BY PROGRAM 1000 Governing Board $ 376,456 $ 359,000 $ 321,422 $ 326,000 $ (33,000)-9% 2000 General Administration 1,268,646 1,370,000 1,214,618 1,302,000 (68,000)-5% 2100 Human Resources & Risk Management 2,382,834 2,671,000 2,906,915 3,615,000 944,000 35% 2200 Public Affairs 1,674,906 1,240,000 1,001,820 1,513,000 273,000 22% 2300 Conservation 1,020,922 615,000 541,205 651,000 36,000 6% 3000 Finance & Accounting 1,221,105 1,304,000 1,085,519 1,397,500 93,500 7% EAST VALLEY WATER DISTRICT | 107 FY 2024-25 BUDGET | 108 FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed 3200 Information Technology $ 1,226,431 $ 1,592,000 $ 1,345,755 $ 1,891,000 $ 299,000 19% 3300 Customer Service 2,001,535 2,048,000 2,002,016 2,212,000 164,000 8% 3400 Meter Services 256,211 292,000 252,388 304,000 12,000 4% 4000 Engineering 1,151,657 1,298,000 1,099,793 1,321,000 23,000 2% 5000 Water Production 5,543,730 5,942,000 4,714,842 6,185,000 243,000 4% 5100 Water Treatment 1,110,495 1,275,000 1,692,118 1,629,000 354,000 28% 5200 Water Quality 440,703 504,000 442,810 605,000 101,000 20% 6000 Water Maintenance Adminstration 435,490 465,000 485,908 441,000 (24,000)-5% 6100 Water Maintenance 3,542,288 3,246,000 3,253,264 3,711,250 465,250 14% 6200 Wastewater Collection 752,474 801,000 749,349 962,250 161,250 20% 6300 Water Reclamation 9,601,460 10,781,000 10,086,944 7,739,000 (3,042,000)-28% 7000 Facilities Maintenance 2,159,835 2,053,000 2,210,805 2,182,000 129,000 6% 7100 Fleet Maintenance 808,244 760,000 741,026 906,000 146,000 19% TOTAL OPERATING EXPENSES $ 36,975,422 $ 38,616,000 $ 36,148,517 $ 38,893,000 $ 277,000 1% OTHER EXPENSES Debt Principal $ 1,435,957 $ 2,392,000 $ 2,392,000 $ 6,785,000 $ 4,393,000 184% Debt Interest Expense 956,614 984,000 984,000 4,090,000 3,106,000 316% Capital Outlay 164,804 1,105,000 1,105,000 1,453,000 348,000 31% Capital Improvement 5,659,932 2,995,000 2,995,000 708,000 (2,287,000)-76% Transfer to (from) Reserves 899,503 (30,000)4,615,273 - 30,000 -100% TOTAL OTHER EXPENSES $ 9,116,810 $ 7,446,000 $ 12,091,273 $ 13,036,000 $5,590,000 75% TOTAL OPERATING / OTHER EXPENSES $ 46,092,232 $ 46,062,000 $ 48,239,790 $ 51,929,000 $ 5,867,000 13% NET SURPLUS $ - $ - $ - $ - $ - - Itemized Operating Expense Summary FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 8,388,689 $ 8,161,000 $ 7,662,473 $ 9,432,000 $ 1,271,000 16% 5102 Temporary Labor 53,105 47,000 26,728 47,000 - 0% 5103 Overtime 547,813 554,000 735,218 572,000 18,000 3% 5104 Standby 38,345 90,000 92,693 122,000 32,000 36% 5200 Benefits 3,566,213 4,110,000 3,918,178 4,305,000 195,000 5% TOTAL PERSONNEL $ 12,594,165 $ 12,962,000 $ 12,435,290 $ 14,478,000 $ 1,516,000 12% WATER SUPPLY 6101 Purchased Water $ 31,557 $ 200,000 $ 200,000 $ 300,000 $ 100,000 50% 6102 Groundwater Replenishment 109,631 451,000 280,647 352,000 (99,000)-22% 6103 Water Assessments 115,973 117,000 114,669 181,000 64,000 55% TOTAL WATER SUPPLY $ 257,161 $ 768,000 $ 595,316 $ 833,000 $ 65,000 8% OPERATING EXPENSES 6201 Materials & Supplies $ 1,702,265 $ 1,311,000 $ 1,378,844 $ 1,603,000 $ 292,000 22% 6202 Tools 82,302 119,000 118,612 147,250 28,250 24% 6203 Office Supplies 26,930 56,000 31,786 48,000 (8,000)-14% 6204 Chemicals 322,617 905,000 605,641 1,010,000 105,000 12% 6205 Conservation Rebates 227,661 70,000 85,400 85,000 15,000 21% 6301 Contract Services 4,478,230 5,888,000 5,423,804 9,531,250 3,643,250 62% 6302 Banking Services 293,373 401,000 413,128 412,000 11,000 3% 6303 Printing & Publishing 276,362 202,000 148,438 206,000 4,000 2% 6304 Legal Services 203,798 171,000 123,501 171,000 - 0% 6305 Treatment Services 8,531,612 6,300,000 6,162,411 - (6,300,000)-100% 6306 Rents & Leases 17,979 20,000 28,750 20,000 - 0% 6307 Uniforms 79,482 102,000 84,769 103,500 1,500 1% 6308 Billing Services 83,199 68,000 52,783 57,000 (11,000)-16% EAST VALLEY WATER DISTRICT | 109 Consolidated Financial Summary FY 2024-25 BUDGET | 110 FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed 6309 Shut Off Notice Services 271,203 225,000 233,626 300,000 75,000 33% 6310 Street Services $ 444,869 $ 450,000 $ 450,000 $ 525,000 $ 75,000 17% 6311 Landscape Services 272,014 233,000 275,238 233,000 - 0% 6312 Janitorial Services 175,773 148,000 130,383 155,000 7,000 5% 6314 Litigation Expense 7,953 25,000 8,566 50,000 25,000 100% 6401 Utilities 47,726 48,000 44,970 48,000 - 0% 6402 Telephone 149,950 156,000 144,060 155,000 (1,000)-1% 6403 Electricity 3,850,264 4,955,000 3,973,084 4,915,000 (40,000) -1% 6404 Fuel 236,962 256,000 227,074 296,000 40,000 16% 6405 Permits 144,963 201,000 187,702 194,000 (7,000)-3% 6406 Postage 231,182 220,000 177,034 216,000 (4,000)-2% 6501 Memberships & Dues 151,402 176,000 131,516 172,000 (4,000)-2% 6502 Professional Development 90,419 177,000 134,286 175,000 (2,000)-1% 6503 Education Assistance - 3,000 - 13,000 10,000 333% 6504 Meetings 39,839 44,000 32,867 51,000 7,000 16% 6505 Employee Recognition 44,361 41,000 19,000 41,000 - 0% 6701 General Insurance 1,130,081 1,548,000 1,770,762 2,282,000 734,000 47% 6702 Insurance Claims 40,524 10,000 28,000 10,000 - 0% 6703 Cash Over/Short (320) 1,000 - 1,000 - 0% 6704 Bad Debt Expense 5,744 5,000 2,876 5,000 - 0% 6705 Retiree Benefits 463,299 351,000 489,000 351,000 - 0% 6706 Inventory Over/Short 78 - - - - 0% SUBTOTAL OPERATING EXPENSES $ 24,124,096 $ 24,886,000 $ 23,117,911 $ 23,582,000 $ (1,304,000)-5% TOTAL OPERATING EXPENSES $ 36,975,422 $ 38,616,000 $ 36,148,517 $ 38,893,000 $ 277,000 1% Program-based budgeting allows for costs to be clearly identified while easily measuring benefits as outlined in the Key Performance Indicators and completion of Goals and Objectives. program summariesfy 2024-25 EAST VALLEY WATER DISTRICT | 111 P R O G R A M S U M M A R I E S • Program Descriptions • Position Summary Schedule • Program Summaries Program Summary Contents FY 2024-25 BUDGET | 112 PROGRAM DESCRIPTIONS EAST VALLEY WATER DISTRICT | 113 Comprehensive information for each functional program within the District provides a higher degree of operational detail. The District utilizes program-based budgeting. Requested funds are associated with the expected results and performance is measured by indicators and reviewed on a quarterly basis with the Governing Board. This results-oriented strategy provides the ability to monitor expenses related to a particular program or activity and track measurable benefits. Program-based budgeting results can be used in cost-benefit analysis, just as it would be in a business environment to determine the value of decisions and enhance transparency. Program Summary Schedule The District continues to evaluate staffing needs to ensure all services are addressed by a high-quality workforce. This process is supported by the strategic direction and succession planning efforts previously approved by the Governing Board. The District will add two full-time employees in FY 2024-25 to address staffing deficits created by the completion of the Sterling Natural Resource Center. The first is an additional Wastewater Treatment Plant Operator, and the other, a Facilities Maintenance Worker, needed to tend the 13-acre facility which also provides public open space for the community. The table on the following page summarizes the number of full-time personnel by Program. All authorized positions are funded in the proposed budget for FY 2024-25. Part-time positions are included in the program descriptions and not shown in the table. Goals that directly support the District’s Five-Year Work Plan are noted in the various Program Summaries with the use of this icon. Program Goals and Objectives have been designed to correlate directly with the District’s adopted Vision and Five-Year Work Plan for the upcoming fiscal year. Key Performance Indicators (KPI) monitor progress towards meeting program objectives. Each KPI has a target that provides users of the budget the ability to assess the Program’s performance over time. Program-based budgeting also increases accountability and transparency as community members and Governing Board can more easily see where dollars are invested and monitor program effectiveness. The FY 2024-25 Budget is organized into the following summary programs: • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance FY 2024-25 BUDGET | 114 Full-Time Staffing Summary by Program Program FY 2022-23 Actual FY 2023-24 Actual FY 2024-25 Proposed 2000 General Administration 3 3 3 2100 Human Resources & Risk Management 2 2 2 2200 Public Affairs 4 4 4 2300 Conservation 1 1 1 3000 Finance & Accounting 6 6 6 3200 Information Technology 3 3 3 3300 Customer Service 7 7 7 3400 Meter Services 2 2 2 4000 Engineering 4 3 3 5000 Water Production 7 7 7 5100 Water Treatment 2 2 2 5200 Water Quality 2 2 2 6000 Maintenance Administration 2 2 2 6100 Water Maintenance 14 14 14 6200 Wastewater Collection 4 4 4 6300 Water Reclamation 9 8 9 7000 Facilities Maintenance 3 2 3 7100 Fleet Maintenance 1 1 1 TOTAL 76 73 75 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 75 Nu m b e r o f P o s i t i o n s 73 6667 7676 68 Total Authorized Positions EAST VALLEY WATER DISTRICT | 115 G O V E R N I N G BO A R D GOVERNING BOARD Program Summaries Section The Governing Board is the District's legislative body responsible for serving as the organizational policy makers. FY 2024-25 BUDGET | 116 • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Program Summaries Contents Governing Board Members 5 Elected Officials 5 PROGRAM PERSONNEL PROGRAM STRUCTURE GOVERNING BOARD VICE CHAIRMAN GOVERNING BOARD CHAIRMAN GOVERNING BOARD MEMBERS RATEPAYERS/ COMMUNITY MEMBERS GOALS OBJECTIVES 1 Provide Organizational Direction and Set Expectations through Policy Decisions Consistent with the Five-Year Work Plan 1. Consider actions to acquire outstanding shares of the NFWC. 2. Convene a City Creek Mutual Water Company Board Meeting to appoint officers and consider levy of an operating assessment. 3. Conduct General Manager/CEO annual evaluation. 4. Review and consider approval of update to the Five-Year Work Plan. 2 Support and Engage Community with the District’s Capital Improvement Program Plan 1. Participate in community groups on capital investment programs. 2. Engage with legislators to discuss funding for capital investment. 3 Engage Elected Officials and Community on the District’s Strategic Priorities and Legislative Priorities 1. Adopt the updated legislative platform document. 2. Engage with legislators to promote the legislative platform. 3. Engage community-based Committees in strategic plan, goals, and objectives. Program Summary GOVERNING BOARD The Governing Board is the legislative body of the organization. Comprised of five members elected at-large to four-year staggered terms of office. Governing Board members are responsible for providing leadership, direction, and serving as the organizational policy makers. EAST VALLEY WATER DISTRICT | 117 FY 2024-25 BUDGET | 118 FY 2023-24 Accomplishments Goal One Provided Organizational Direction and Set Expectations through Policy Decisions Consistent with the Five-Year Work Plan • Engaged in a strategic planning session to establish District goals and objectives. Goal Two Addressed Policy Decisions Related to the SNRC • Executed pretreatment MOU with the SBMWD. • Participated in Regional Water Quality Control Board (RWQCB) permit hearing. • Executed operation agreement with San Bernardino Valley for recharge basins. Goal Three Engaged Elected Officials and Community on the District’s Strategic Priorities and Legislative Priorities • Visited Sacramento and seven legislative offices to discuss the SNRC, pending legislation, and state water bonds. • Engaged Community Advisory Commission in the strategic planning effort. • Led May 3rd ribbon cutting ceremony for SNRC operations facility. LEVELS OF SERVICE The Governing Board has four KPI metrics that are associated with the District’s Goals and Objectives of: • Identify Opportunities to Optimize Natural Resources (I-A) • Maximize Internal Capabilities Through Ongoing Professional Development (I-B) • Provide Quality Information to Encourage Community Engagement (II-D) • Strengthen Regional, State and National Partnerships (I-C) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2021-22 FY 2022-23 FY 2023-24 I-A Act on project related agenda items presented by staff 100%100%100%100% I-B Average number of professional development hours per Governing Board Member 6 6 15 18 II-D Submit all documentation by deadlines pursuant to transparency policies 100%100%100%100% I-C Attend Regional and State meetings as representatives of the District 160 236 258 288 EAST VALLEY WATER DISTRICT | 119 Governing Board Program Budget Detail FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 111,150 $ 120,000 $ 109,200 $ 142,000 $ 22,000 18% 5200 Benefits 71,303 90,000 64,378 90,000 - 0% OPERATING EXPENSES 6201 Materials & Supplies - 3,000 1,844 3,000 - 0% 6301 Contract Services 172,161 110,000 110,000 55,000 (55,000)-50% 6307 Uniforms 320 1,000 1,000 1,000 - 0% 6502 Professional Development 21,522 35,000 35,000 35,000 - 0% GOVERNING BOARD TOTAL $ 376,456 $ 359,000 $ 321,422 $ 326,000 $ (33,000)-9% 1%SIGNIFICANT CHANGES IN PROGRAM BUDGET • Strategic Planning completed and decreased the Contract Services budget. PROGRAM BUDGET ALLOCATION • $326,000 FY 2024-25 BUDGET | 120 [PAGE LEFT BLANK] Intentionally EAST VALLEY WATER DISTRICT | 121 G E N E R A L A D M I N I S T R A T I O N GENERAL ADMINISTRATION Program Summaries Section General Administration is responsible for implementing the District's Vision, maintaining official records, promoting public trust, and ensuring transparency compliance. FY 2024-25 BUDGET | 122 • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Program Summaries Contents General Manager/CEO 1 District Clerk 1 Administrative Specialist 1 Total Full-Time 3 PROGRAM PERSONNEL PROGRAM STRUCTURE DISTRICT CLERK GENERAL MANAGER/CEO ADMINISTRATIVE SPECIALIST GOVERNING BOARD CHAIRMAN GOALS OBJECTIVES 1 Schedule City Creek Mutual Water Company Shareholder Meeting 1. Work with legal counsel to establish annual shareholder meeting agenda for the City Creek Mutual Water Company. 2. Work with Finance to establish the amount for a proposed operating assessment. 3. Begin proceedings to obtain inactive shares with delinquent assessments. 2 Enhance Document Management Process 1. Continue to scan vital documents and incorporate them into the electronic document repository. 2. Continue destruction of documents in compliance with the Records Retention Policy. 3. Review current agenda management platform to determine if new features or upgrades are necessary to improve the user experience. 3 Organizational Priorities and Philosophies 1. Review and revise the District’s Strategic Plan. 2. Determine the direction and activities of the Community Heritage and Education Foundation. 3. Conduct all activities required for the Board of Directors’ election. Program Summary GENERAL ADMINISTRATION General Administration is responsible for ensuring the District’s business and daily activities are performed following Federal, State, and Governing Board approved policies. The General Manager/CEO provides daily oversight for interagency relations for advancing the District’s initiatives. Additionally, the General Manager/CEO implements strategic planning for future operations and capital improvement funding requirements and resource allocation. EAST VALLEY WATER DISTRICT | 123 Di r e c t l y S u p p o r t s t h e F i v e - Y e a r W o r k P l a n FY 2024-25 BUDGET | 124 FY 2023-24 Accomplishments Goal One Consolidation / Dissolution of Mutual Water Companies •Reviewed prior NFWC shareholders water allocation with the District. •Consulted with legal counsel to determine how the NFWC will operate in the future. Goal Two Implemented Document Management Process •Scanned vital documents and incorporated them into the electronic document repository. •Provided training to Customer Service and Finance staff to ensure the document repository system is used consistently. •Destroyed 1,120 boxes of documents in compliance with the Records Retention Policy. Goal Three Developed District Clerk Handbook •Finalized the District Clerk Handbook. Other Accomplishments •Completed reaccreditation process and received Special District Leadership Foundation (SDLF) District Transparency Certificate of Excellence and District of Distinction Certificate. LEVELS OF SERVICE The General Administration Program has four KPI metrics that are associated with the District’s Goals and Objectives of: •Practice Transparent and Accountable Fiscal Management (II-A) •Provide Quality Information to Encourage Community Engagement (II-D) •Dedicated Efforts Toward System Maintenance and Modernization (IV-C) •Maximize Internal Capabilities through Ongoing Professional Development (I-B) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2021-22 FY 2022-23 FY 2023-24 II-A Make administrative documents available online 50 53 57 52 II-D Publish Open Meeting/Public Notices on or before statutory requirement 100%100%100%100% IV-C Reduce number of boxes held in off-site storage 1,000 2,770*1,970 1,061 I-B Participate in Professional Development Opportunities 6 9 11 22 *Not able to reduce boxes due to COVID-19 restrictions. EAST VALLEY WATER DISTRICT | 125 General Administration Program Budget Detail 3%SIGNIFICANT CHANGES IN PROGRAM BUDGET • Moved Legislative Lobbyist expense to Public Affairs; as a result the Contract Services budget decreased. • Increased Litigation Services budget due to proceedings to obtain inactive shares with delinquent assessments. PROGRAM BUDGET ALLOCATION • $1,302,000 FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 559,084 $ 582,000 $ 580,800 $ 621,000 $ 39,000 7% 5102 Temporary Labor 853 30,000 6,976 30,000 - 0% 5103 Overtime 2,252 4,000 3,942 4,000 - 0% 5200 Benefits 286,724 264,000 260,018 267,000 3,000 1% OPERATING EXPENSES 6201 Materials & Supplies 533 4,000 536 3,000 (1,000)-25% 6203 Office Supplies 1,269 3,000 2,256 3,000 - 0% 6301 Contract Services 123,601 161,000 121,450 42,000 (119,000)-74% 6303 Printing & Publishing 2,206 3,000 436 3,000 - 0% 6304 Legal Services 143,426 120,000 95,448 120,000 - 0% 6307 Uniforms 1,097 1,000 - 1,000 - 0% 6314 Litigation Services 7,953 25,000 8,566 50,000 25,000 100% 6402 Telephone 1,838 3,000 1,737 3,000 - 0% 6406 Postage - 1,000 51 1,000 - 0% 6501 Memberships & Dues 113,050 104,000 96,386 104,000 - 0% 6502 Professional Development 11,814 50,000 23,497 30,000 (20,000)-40% 6504 Meetings 12,946 15,000 12,519 20,000 5,000 33% GENERAL ADMIN TOTAL $ 1,268,646 $ 1,370,000 $ 1,214,618 $ 1,302,000 $ (68,000)-5% FY 2024-25 BUDGET | 126 [PAGE LEFT BLANK] Intentionally EAST VALLEY WATER DISTRICT | 127 H U M A N R E S O U R C E S & R I S K M G M T . HUMAN RESOURCES & RISK MANAGEMENT Program Summaries Section Human Resources & Risk Management focuses on the management and development of employees in an organization. FY 2024-25 BUDGET | 128 • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Program Summaries Contents Director of Administrative Services 1 Human Resources Coordinator 1 Total Full-Time 2 PROGRAM PERSONNEL GENERAL MANAGER/CEO HUMAN RESOURCES COORDINATOR DIRECTOR OF ADMINISTRATIVE SERVICES PROGRAM STRUCTURE GOALS OBJECTIVES 1 Advance the District’s Emergency Preparedness Program 1. Develop an emergency preparedness training program and prepare employees to follow plans established by the District. 2. Update the District’s emergency response documents to reflect current conditions, regulations, and identified actions. 3. Conduct an audit of the District’s Emergency Operations Center item inventory, purge expired items, and stock inventory with needed materials and supplies. 2 Promote a Positive Organizational Culture that Maintains a Supportive and Encouraging Work Environment 1. Update the District’s Succession Plan to identify organizational growth, prepare for future retirements, and continue to provide training and development opportunities for staff. 2. Create administrative policies regarding work schedules and standby responsibilities for SNRC maintenance and operations. 3. Facilitate quarterly activities that support employee engagement, team building, or empowerment. 3 Promote Regional Involvement and Provide Workforce Experience and Educational Opportunities 1. Actively engage schools within the District’s service area to promote participation in water industry workforce experiences. 2. Enhance the summer internship program to provide opportunities to local high school students. 3. Develop educational and interactive tours of the SNRC with hands on lab experiments for students to understand wastewater physical and biological processes. Program Summary HUMAN RESOURCES & RISK MANAGEMENT Human Resources & Risk Management is responsible for administering programs to attract and retain a diverse and qualified workforce. To remain an industry leader, this Program analyzes compensation and benefits packages against the market and implements new initiatives based upon market demands. Acknowledging the need to build a work-life balance to support a successful workforce, Human Resources & Risk Management creates programs focused on the health and wellness of all employees. Additionally, Human Resources & Risk Management administers the Risk Management Program to mitigate personnel injuries, property damage and financial loss for the District, the Emergency Preparedness Program to ensure business continuity and recovery efforts in the event of a disaster, and the Pathway Program which provides water industry career education and internship opportunities to local students. EAST VALLEY WATER DISTRICT | 129 FY 2024-25 BUDGET | 130 FY 2023-24 Accomplishments Goal One Implemented Workforce Programs in Support of the SNRC • Recruited and onboarded two candidates to join the SNRC team. • Identified opportunities to ensure collaboration between staff located at District Headquarters and the SNRC. Goal Two Promoted a Positive Organizational Culture that Maintains a Supportive and Encouraging Work Environment • Implemented new MOU for July 1, 2023 – June 30, 2026. • Graduated 21 employees from the District’s Leadership Development & Alignment Series. • Implemented the Onboarding module of our current NeoGov Recruitment Suite. Goal Three Promoted Regional Involvement and Provided Workforce Experience and Educational Opportunities • Engaged with San Gorgonio and Indian Springs High Schools to promote participation in water industry workforce experiences. • Presented the success of the Internship Program to the Board in September. LEVELS OF SERVICE The Human Resources & Risk Management Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Encourage Performance Based Results through Staff Empowerment (I-D) • Promote a Positive Organizational Culture (III-C) • Embrace an Environment of Active Learning and Knowledge Sharing (III-D) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2021-22 FY 2022-23 FY 2023-24 I-D Percentage of annual non-retirement employee turnover <7%1%1%1% I-D Annual performance appraisals completed in a timely manner 95%100%100%100% III-C Maintain high level of employee participation in annual employee engagement survey 90%100%95.5%100% III-D Utilization rate of District’s Employee Assistance Program >10%13.43%11.76%XX EAST VALLEY WATER DISTRICT | 131 Human Resources & Risk ManagementProgram Budget Detail 9%SIGNIFICANT CHANGES IN PROGRAM BUDGET • Contract Services budget increased due to the Emergency Preparedness Program’s move from Public Affairs to Human Resources. This Program’s name has changed to Human Resources & Risk Management. • Increased the General Insurance budget due to higher insurance premiums for Property/Liability and Worker’s Compensation coverages. PROGRAM BUDGET ALLOCATION • $3,615,000 FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 331,495 $ 329,000 $ 318,451 $ 353,000 $ 24,000 7% 5103 Overtime 1,828 3,000 2,728 3,000 - 0% 5200 Benefits 195,452 199,000 210,804 214,000 15,000 8% OPERATING EXPENSES 6201 Materials & Supplies 854 6,000 1,000 4,000 (2,000)-33% 6203 Office Supplies 1,494 1,000 800 1,000 - 0% 6301 Contract Services 126,842 150,000 43,000 320,000 170,000 113% 6303 Printing & Publishing 569 1,000 500 1,000 - 0% 6304 Legal Services 29,329 15,000 8,000 15,000 - 0% 6307 Uniforms 43 - - - - 0% 6402 Telephone 644 1,000 400 1,000 - 0% 6406 Postage 49 1,000 900 1,000 - 0% 6501 Memberships & Dues 4,832 4,000 4,270 4,000 - 0% 6502 Professional Development 3,826 9,000 6,300 12,000 3,000 33% 6504 Meetings 7,312 3,000 3,000 3,000 - 0% 6505 Employee Recognition 44,361 40,000 19,000 40,000 - 0% 6701 General Insurance 1,130,081 1,548,000 1,770,762 2,282,000 734,000 47% 6702 Insurance Claims 40,524 10,000 28,000 10,000 - 0% 6705 Retiree Benefits 463,299 351,000 489,000 351,000 - 0% HUMAN RESOURCES & RISK MGMT. TOTAL $ 2,382,834 $ 2,671,000 $ 2,906,915 $ 3,615,000 $ 944,000 35% FY 2024-25 BUDGET | 132 [PAGE LEFT BLANK] Intentionally EAST VALLEY WATER DISTRICT | 133 PU B L I C AF F A I R S PUBLIC AFFAIRS Program Summaries Section Public Affairs establishes solid public relationships built on a foundation of trust. FY 2024-25 BUDGET | 134 • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Program Summaries Contents Public Affairs/Conservation Manager 1 Public Affairs Coordinator 1 Public Affairs Specialist 2 Total Full-Time 4 PROGRAM PERSONNEL PROGRAM STRUCTURE GENERAL MANAGER/CEO PUBLIC AFFAIRS SPECIALIST PUBLIC AFFAIRS COORDINATOR PUBLIC AFFAIRS/ CONSERVATION MANAGER (2) GOALS OBJECTIVES 1 Enhance Strategic Community Engagement Initiatives 1. Develop a targeted outreach plan to enhance community engagement and neighborhood outreach. 2. Engage with community members and organizations through pop-ups, presentations, and local events. 3. Conduct a community recruitment process to fill vacancies resulting from the term limits of CAC sitting members. 2 Utilize Communication Methods that Enhance the District’s Priorities 1. Continue to develop the District’s digital presence through website redesign and increase social media engagement. 2. Rollout and communicate with ratepayers the District’s website domain transition from a .org to a .gov domain. 3. Assess and enhance current communication platforms used in community outreach and crisis communications. Identify new channels for community digital notification. 4. Showcase the District’s projects and programs through participation in industry related conferences and awards. 3 Legislative and Grants 1. Monitor, track, and review legislative bills that have an impact on District customers. 2. Review and update the legislative and grant platforms. 3. Monitor and respond to grant opportunities in accordance with the District’s grant platform. Program Summary PUBLIC AFFAIRS Public Affairs oversees internal and external communication programs consistent with the District’s Vision and guiding principles. Through community and media relations, the Program provides effective and strategic communications to various stakeholders. Public Affairs is also responsible for grant writing, legislative affairs, and the facility rental programs. EAST VALLEY WATER DISTRICT | 135 FY 2024-25 BUDGET | 136 FY 2023-24 Accomplishments Goal One Implemented Community Based Activities at the SNRC • Hosted a ribbon cutting event for SNRC operations on May 3, 2024. • Partnered with third parties to offer community activities to maximize the SNRC public space. Goal Two Utilized Communication Methods that Enhanced the District’s Priorities • Engaged with community members and organizations through 25 pop- ups, presentations, and local events. • Initiated web design through issuing an RFP, conducted a website audit, and developed a revised sitemap. • Increased social media engagement communication and overall account followers. • Updated the District’s Five-Year Work Plan. Goal Three Advanced the District’s Emergency Preparedness Program • Received grants for Seismic Retrofit of seven reservoirs, HMP update, Planning grant for new well. • Received $263,205 reimbursement for design phase of Seismic Retrofit of water mains. Other Accomplishments • Received Urban Greening grant. LEVELS OF SERVICE The Public Affairs Program has five KPI metrics that are associated with the District’s Goals and Objectives of: • Provide Quality Information to Encourage Community Engagement (II-D) • Strengthen Regional, State and National Partnerships (I-C) • Utilize Effective Communication Methods (II-B) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2021-22 FY 2022-23 FY 2023-24 II-D Number of community event presentations 15 11 41 25 I-C Number of Community Advisory Commission meetings conducted 6 5 6 5 II-B Number of followers on social media 3,000 2,062 2,700 3,102 EAST VALLEY WATER DISTRICT | 137 Public Affairs Program Budget Detail 4%SIGNIFICANT CHANGES IN PROGRAM BUDGET • Removed Director of Strategic Services position and added another Public Affairs Specialist. • Increased Contract Services budget due to Legislative Lobbyist expense that moved from the Governing Board’s budget. • Increased Professional Development budget due to additional trainings/conferences staff plan to attend. • Increased Contract Services and Janitorial budgets for Facilities Rentals due to hosting more community events during the work week. PROGRAM BUDGET ALLOCATION • $1,513,000 FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 670,411 $ 429,000 $ 462,159 $ 517,000 $ 88,000 21% 5103 Overtime 11,981 17,000 10,212 17,000 - 0% 5200 Benefits 233,195 127,000 154,046 153,000 26,000 20% OPERATING EXPENSES 6201 Materials & Supplies 129,171 77,000 50,000 95,000 18,000 23% 6203 Office Supplies 4,862 2,000 1,500 1,000 (1,000)-50% 6301 Contract Services 345,059 380,000 165,000 475,000 95,000 25% 6303 Printing & Publishing 185,156 127,000 111,100 133,000 6,000 5% 6304 Legal Services 5,950 5,000 6,600 5,000 - 0% 6307 Uniforms 5,226 1,000 1,246 2,000 1,000 100% 6402 Telephone 3,871 3,000 3,187 3,000 - 0% 6406 Postage 25,067 36,000 11,700 32,000 (4,000)-11% 6501 Memberships & Dues 22,967 21,000 7,200 23,000 2,000 10% 6502 Professional Development 5,179 3,000 6,900 23,000 20,000 667% 6503 Education Assistance - - - 5,000 5,000 100% 6504 Meetings 5,290 7,000 4,800 11,000 4,000 57% FACILITIES RENTAL EXPENSES 6201 Materials & Supplies 18,145 - 302 - - 0% 6301 Contract Services 616 3,000 1,168 9,000 6,000 200% 6312 Janitorial Services 2,760 2,000 4,700 9,000 7,000 350% PUBLIC AFFAIRS TOTAL $ 1,674,906 $ 1,240,000 $ 1,001,820 $ 1,513,000 $ 273,000 22% FY 2024-25 BUDGET | 138 [PAGE LEFT BLANK] Intentionally EAST VALLEY WATER DISTRICT | 139 CO N S E R V A T I O N CONSERVATION Program Summaries Section Conservation programs help educate customers on how to use water efficiently. FY 2024-25 BUDGET | 140 • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Program Summaries Contents Conservation Coordinator 1 Total Full-Time 1 PROGRAM PERSONNEL PROGRAM STRUCTURE GENERAL MANAGER/CEO CONSERVATION COORDINATOR PUBLIC AFFAIRS/ CONSERVATION MANAGER GOALS OBJECTIVES 1 Coordinate Necessary Program Working Groups to Complete Conservation Reports and Monitor Progress on Water Use Efficiency Objectives 1. Continue to hold group meetings for the purpose of tracking informational data requests for State mandated reports and identifying data inputs for new reporting requirements. 2. Prepare and submit required water efficiency reports such as the Drought Risk Assessment, Urban Water Use Objectives, and Commercial, Industrial, Institutional (CII) classifications, and Annual Water Use Efficiency Objectives. 2 Evaluate Rebate Program Success and Implement Program Modifications 1. Continue to streamline rebate programs to maximize customer water savings in line with new State objectives. 2. Continue to analyze water consumption data to better understand historical conservation responses to forecast trends. 3 Engage and Educate Students on Water Resources Consistent with State Curriculum 1. Enhance engagement with students in a classroom environment to provide current water conservation and water resource materials consistent with State curriculum. Program Summary CONSERVATION Conservation is responsible for overseeing programs that facilitate and encourage sustainable water use throughout the District. Additionally, this program is responsible for communicating conservation benchmarks to various regulatory agencies, preparing regulatory compliance documents, and monitoring regulatory conservation requirements. EAST VALLEY WATER DISTRICT | 141 FY 2024-25 BUDGET | 142 FY 2023-24 Accomplishments Goal One Coordinated Necessary Program Working Groups to Complete Conservation Reports • Held working group meetings to report informational data requests for State mandated reports and identified data inputs for new reporting requirements. • Submitted required water use efficiency reports such as the Drought Contingency Plan, Drought Risk Assessment, Urban Water Use Objectives, and Commercial, Industrial, Institutional (CII) classifications. Goal Two Evaluated Rebate Program Success and Implemented Program Enhancements • Launched Pilot Leak Repair Rebate Programs to maximize customer water savings in line with new State objectives. • Analyzed water consumption data using WaterView Platform to better understand historical conservation responses to forecast trends. Goal Three Engaged and Educated Students on Water Resources Consistent with State Curriculum • Conservation Coordinator received certification through Project WET, allowing the District to conduct eleven classroom presentations. • Participated in quarterly educational activities with schools located within the District’s service area. • Developed digital material and other educational elements to provide customers with conservation resources, free community events, and held four conservation workshops. LEVELS OF SERVICE The Conservation Program has five KPI metrics that are associated with the District’s Goals and Objectives of: • Identify Opportunities to Optimize Natural Resources (I-A) • Provide Quality Information to Encourage Community Engagement (II-D) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2021-22 FY 2022-23 FY 2023-24 I-A Meet SWRCB (SBX7-7) conservation goal 172 gpcd 160 159 136 I-A Maintain significant level of participation in annual conservation rebate programs 200 200 350 250 II-D Number of educational materials created 100 78 125 107 II-D Number of conservation workshops held 4 4 4 4 II-D Number of attendees at workshops 300 125 160 250 GPCD = Gallons Per Capita Per Day EAST VALLEY WATER DISTRICT | 143 Conservation Program Budget Detail 2%SIGNIFICANT CHANGES IN PROGRAM BUDGET • Increased Materials & Supplies budget for Water Education Program enhancements. • Increased Conservation Rebates budget for special projects for targeted rebates. • Increased Contract Services budget for a three-year subscription renewal for a data management tool. PROGRAM BUDGET ALLOCATION • $651,000 FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 113,417 $ 107,000 $ 107,820 $ 123,000 $ 16,000 15% 5103 Overtime 6,907 7,000 3,032 7,000 - 0% 5200 Benefits 35,438 42,000 33,116 44,000 2,000 5% OPERATING EXPENSES 6201 Materials & Supplies 28,061 25,000 13,100 62,000 37,000 148% 6203 Office Supplies 242 1,000 800 1,000 - 0% 6205 Conservation Rebates 227,661 70,000 85,400 85,000 15,000 21% 6301 Contract Services 504,462 270,000 253,081 237,000 (33,000)-12% 6303 Printing & Publishing 75,048 50,000 24,700 52,000 2,000 4% 6304 Legal Services - 1,000 200 1,000 - 0% 6307 Uniforms 499 1,000 643 1,000 - 0% 6402 Telephone 937 2,000 328 2,000 - 0% 6406 Postage 19,262 24,000 9,000 24,000 - 0% 6501 Memberships & Dues 4,004 12,000 7,754 8,000 (4,000)-33% 6502 Professional Development 2,569 2,000 1,431 3,000 1,000 50% 6504 Meetings 2,415 1,000 800 1,000 - 0% CONSERVATION TOTAL $ 1,020,922 $ 615,000 $ 541,205 $ 651,000 $ 36,000 6% FY 2024-25 BUDGET | 144 [PAGE LEFT BLANK] Intentionally EAST VALLEY WATER DISTRICT | 145 F I N A N C E & AC C O U N T I N G FINANCE & ACCOUNTING Program Summaries Section Finance & Accounting manage, plan, and direct financial resources. FY 2024-25 BUDGET | 146 • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Program Summaries Contents Chief Financial Officer 1 Finance Supervisor 1 Accountant 1 Sr. Accounting Technician 1 Accounting Technician 1 Business Services Coordinator 1 Total Full-Time 6 PROGRAM PERSONNEL BUSINESS SERVICES COORDINATOR GENERAL MANAGER/CEO ACCOUNTANT SR. ACCOUNTING TECHNICIAN ACCOUNTING TECHNICIAN CHIEF FINANCIAL OFFICER FINANCE SUPERVISOR PROGRAM STRUCTURE GOALS OBJECTIVES 1 Ensure Financial Stability with Full Understanding of Operational Complexities 1. Ensure timely submission of grant claims for cash flow purposes. 2. Ensure fiscal agent account transactions for revenue and CFD bonds are recorded timely. 3. Update the Procurement Policy and present to the Board for approval. 4. Work with a consultant to complete the Pension Unfunded Accrued Liability Policy and present it to the Board. 5. Work with Customer Service to evaluate convenience fees and present to the Board. 6. Evaluate pros and cons of migrating to Tyler’s Munis Enterprise ERP. 2 Fully Understand the Cost and Accounting Associated with Placing the SNRC in Service 1. Receive SNRC debt service schedule from SWRCB and incorporate it into the existing debt service repayment plan. 2. Meet with the Water Reclamation Manager monthly to monitor SNRC operating expenses. 3. Ensure timely invoicing to San Bernardino Valley for delivery of recycled water. 4. Ensure timely invoicing to Waste dischargers for pre-treatment permits. Program Summary FINANCE & ACCOUNTING Finance and Accounting oversees the business operations of the District to provide accountability and adequate control over the use of District funds. Staff maintains the financial systems and records in accordance with GAAP as well as applicable laws, regulations, and District policies. EAST VALLEY WATER DISTRICT | 147 FY 2024-25 BUDGET | 148 FY 2023-24 Accomplishments Goal One Ensured Financial Stability with Full Understanding of Operational Complexities • Established SNRC debt service and other reserves required to comply with agreements. • Completed Rate Study and held a Public Hearing on May 15, 2024 to consider rate adjustments. • Worked with CalPERS staff to determine if the current “level pay” amount is adequate to pay down Unfunded Actuarial Liability (UAL) in 15 years as planned. Goal Two Fully Understood the Cost and Accounting Associated with Placing the SNRC in Service • Determined placed-in-service date and finalized total project costs. • Submitted final State Revolving Fund (SRF) request. • Allocated total project costs to physical plant components in the accounting system. Goal Three Maximized the Utility and Security of Financial Software and Data • Developed standard procedures for linking capital improvements in the District’s accounting software to the GIS mapping software. • Conducted informal review of financial software and determined current software is among industry leaders. • Identified pros and cons for moving Tyler to a hosted environment to determine that software will continue to be hosted on-premise. LEVELS OF SERVICE The Finance & Accounting Program has six KPI metrics that are associated with the District’s Goals and Objectives of: • Practice Transparent and Accountable Fiscal Management (II-A) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2021-22 FY 2022-23 FY 2023-24 II-A Days to prepare and present Annual Report after fiscal year end 135 days 167 103 117 II-A Enhance District bond rating through strong reserves and fiscal policies AA AA-AA-AA- II-A Number of fiscal policies updated / enhanced and reviewed with the Governing Board 4 2 3 3 II-A Provide program managers monthly budget variance reports 12 12 12 12 II-A Consecutive years Certificate of Achievement for Excellence in Financial Reporting received for Annual Report 12 10 11 12 II-A Consecutive years Certificate of Achievement for Excellence in Financial Reporting received for PAFR 7 5 6 7 EAST VALLEY WATER DISTRICT | 149 Finance & Accounting Program Budget Detail 4%SIGNIFICANT CHANGES IN PROGRAM BUDGET • Moved a professional certification expense from the Professional Development budget to Education Assistance. PROGRAM BUDGET ALLOCATION • $1,397,500 FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 698,045 $ 735,000 $ 607,007 $ 823,000 $ 88,000 12% 5103 Overtime 11,660 13,000 7,606 13,000 - 0% 5200 Benefits 277,953 374,000 338,489 383,000 9,000 2% OPERATING EXPENSES 6203 Office Supplies 4,621 7,000 3,503 6,000 (1,000)-14% 6301 Contract Services 192,195 90,000 72,440 91,000 1,000 1% 6302 Banking Services 16,429 32,000 24,410 32,000 - 0% 6303 Printing & Publishing 2,019 7,000 1,702 5,000 (2,000)-29% 6304 Legal Services 4,606 10,000 2,253 10,000 - 0% 6307 Uniforms 1,501 2,000 - 1,500 (500)-25% 6402 Telephone 2,110 3,000 1,583 3,000 - 0% 6406 Postage 301 1,000 383 1,000 - 0% 6501 Memberships & Dues 2,136 5,000 3,320 5,000 - 0% 6502 Professional Development 4,843 20,000 20,068 14,000 (6,000)-30% 6503 Education Assistance - - - 5,000 5,000 100% 6504 Meetings 2,686 5,000 2,646 5,000 - 0% 6704 Bad Debt - - 109 - - 0% FINANCE & ACCT. TOTAL $ 1,221,105 $ 1,304,000 $ 1,085,519 $ 1,397,500 $ 93,500 7% FY 2024-25 BUDGET | 150 [PAGE LEFT BLANK] Intentionally EAST VALLEY WATER DISTRICT | 151 IN F O R M A T I O N T E C H N O L O G Y INFORMATION TECHNOLOGY Program Summaries Section Information Technology coordinates and implements agency-wide technology by facilitating vendor access and support for technology focused projects. FY 2024-25 BUDGET | 152 • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Program Summaries Contents PROGRAM PERSONNEL Information Technology Manager 1 Network Administrator 1 Information Technology Analyst 1 Total Full-Time 3 Part-Time Information Technology Intern 1 Total Part-Time 1 PROGRAM STRUCTURE GENERAL MANAGER/CEO NETWORK ADMINISTRATOR INFORMATION TECHNOLOGY ANALYST INFORMATION TECHNOLOGY INTERN PT CHIEF FINANCIAL OFFICER INFORMATION TECHNOLOGY MANAGER GOALS OBJECTIVES 1 Ensure Reliability of Technology Infrastructure for Primary Business and Operation Requirements 1. Upgrade the Cisco phone system after determining which environment (hosted vs. on-premise) is ideal for the District. 2. Upgrade SCADA radios and technology at two sites identified by Advanced Telemetry Systems Internation (ATSI). 3. Work with Engineering to upgrade and replace the Engineering plotter. 4. Replace technology that has reached end of its useful life to comply with hardware replacement schedule. 2 Improve Systems and Cybersecurity Measures for Response Functions 1. Replace current email security with Cisco email cloud security. 2. Implement new technology and security at Plant 39 Warehouse (Internet Fiber, access controls). 3. Upgrade all security cameras at District Headquarters and Plant 39. 4. Update all District email addresses to align with the new website government domain. 3 Analyze Current Systems to Enhance Reporting and Automate Processes 1. Work with the General Manager/CEO and Department heads to identify data-based decisions and source of supporting data. 2. Work with the Laserfiche development team and Administration to implement Engineering’s automation and workflow in the document repository, in accordance with the retention schedule. 3. Design and launch a public portal for developers to access as-built designs of the District. Program Summary INFORMATION TECHNOLOGY The Information Technology (IT) Program oversees the District’s technology infrastructure to support essential business and operational functions. The functions utilize industry specific software programs required to meet agency needs. The Program implements routine cybersecurity training campaigns to mitigate financial and data loss. In addition to software management, the Program proactively schedules hardware replacements from the point of procurement to installation. EAST VALLEY WATER DISTRICT | 153 FY 2024-25 BUDGET | 154 FY 2023-24 Accomplishments Goal One Ensured Reliability of Technology Infrastructure for Primary Business and Operation Requirements • Upgraded all server operating systems to comply with Microsoft server life cycle. • Updated active directory and group policy cleanup. • Installed hardware and software for the SNRC solids, headworks, and main electrical buildings. • Upgraded District firewalls to comply with standardization best-practice. Goal Two Improved Systems and Cybersecurity Measures for Response Functions • Continued monthly email phishing campaign to reduce click rate and educate staff on security risks. • Implemented multi-factor authentication software for new VPN. • Contracted CISA, Cybersecurity and Infrastructure Agency for network vulnerability routine scan, and mitigated all detected vulnerabilities. Goal Three Analyzed Current Systems to Enhance Reporting and Automate Processes • Worked with Administration, Customer Service, and Finance staff to implement naming conventions for the District’s electronic document repository. • Worked with Tyler and Customer Service to revise and streamline the utility billing packet processing workflow process. • Reconfigured payment contract, conservation reports, disconnection door hangers, and arrearage reports. Other Accomplishments • Implemented site security cameras at Plant 134. • Implemented site to site VPN access between Weaver Basins and SNRC Reclamation plant. • Implemented asset management module for Water Reclamation and SNRC plant assets. • Upgraded Eleveo call recording software for Customer Service. • Upgraded Selectron IVR environment. • Assisted Water Quality to implement new Backflow and FOG software • Refreshed On-Premise Backup server. • Implemented new VPN software and Multi-Factor Authentication to meet cybersecurity measures. • Implemented Utility Network to enable GIS edits and updates to ArcPro Enterprise. LEVELS OF SERVICE The Information Technology Program has six KPI metrics that are associated with the District’s Goals and Objectives of: • Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) • Strive to Provide World-Class Customer Relations (III-B) The program’s performance related to these metrics are included in the following table. EAST VALLEY WATER DISTRICT | 155 Information Technology KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2021-22 FY 2022-23 FY 2023-24 IV-A Elevate Cybersecurity awareness by sending out test ‘phishing’ emails 800 1,080 1,139 1,200 IV-A Maximize system availability 99%99%99%99% IV-A Cybersecurity awareness results for phishing email click rate <7%7.8%7.9%7.7% IV-A Complete disaster recovery drill (system restoration, power outages, emergency notifications) 2 4 4 4 III-B Receive ‘Excellent’ scores on IT satisfaction surveys submitted by staff >95%100%100%100% III-B Minimize resolution time for help desk issues submitted by staff 24 Hrs.17.2 4.4 4.8 Program Budget Detail FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 438,190 $ 433,000 $ 389,176 $ 487,000 $ 54,000 12% 5102 Temporary Labor - 17,000 19,752 17,000 - 0% 5103 Overtime 430 - - - - 0% 5200 Benefits 211,394 259,000 280,596 280,000 21,000 8% OPERATING EXPENSES 6201 Materials & Supplies 66,414 65,000 96,500 80,000 15,000 23% 6203 Office Supplies 970 5,000 900 5,000 - 0% 6301 Contract Services 478,735 795,000 535,200 1,004,000 209,000 26% 6307 Uniforms 1,011 1,000 200 1,000 - 0% 6402 Telephone 23,614 12,000 19,400 12,000 - 0% 6501 Memberships & Dues 130 4,000 3,107 4,000 - 0% 6502 Professional Development 5,410 1,000 796 1,000 - 0% 6504 Meetings 133 - 128 - - 0% IT TOTAL $ 1,226,431 $ 1,592,000 $ 1,345,755 $ 1,891,000 $ 299,000 19% 5%SIGNIFICANT CHANGES IN PROGRAM BUDGET • Increased Materials & Supplies budget for hardware replacements that will occur this fiscal year. • Increased Contract Services budget for a GIS consultant expense that moved from Engineering’s budget; and software renewals that were moved from various programs. PROGRAM BUDGET ALLOCATION • $1,891,000 FY 2024-25 BUDGET | 156 EAST VALLEY WATER DISTRICT | 157 CU S T O M E R SE R V I C E CUSTOMER SERVICE Program Summaries Section Customer Service downloads meter read data, audits data, and submits data files to a third-party vendor for bill printing and mailing. FY 2024-25 BUDGET | 158 • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Program Summaries Contents PROGRAM PERSONNEL Customer Service Supervisor 1 Customer Service Representative III 2 Customer Service Representative II 4 Total Full-Time 7 Part-Time Customer Service Representative I 1 Total Part-Time 1 PROGRAM STRUCTURE GENERAL MANAGER/CEO CUSTOMER SERVICE REPRESENTATIVE III CUSTOMER SERVICE REPRESENTATIVE II CHIEF FINANCIAL OFFICER CUSTOMER SERVICE SUPERVISOR (4) (2) CUSTOMER SERVICE REPRESENTATIVE I PT GOALS OBJECTIVES 1 Develop Strategies to Address Organizational Service Needs 1. Implement new payment options for District customers that are already supported by the District’s billing software. 2. Enforce contractor compliance with an agreement to make temporary meters available for monthly reads through an increased assessment of Temporary Meter Read Availability Charge. 2 Review Regulatory Changes that Require Updates to District Processes / Fee Schedules 1. Work with Engineering and other agencies on a process for identifying additional, billable dwelling units that are added to existing services. 2. Research and assess new/alternative industry practices used for reducing the number of disconnections for non-payment. 3 Enhance Customer Utilization of AMI Data 1. Coordinate with Public Affairs to publish AMI related bill inserts, push notifications, and educational videos. 2. Follow-up on each AMI outreach effort with 100 in-person calls to discuss recent campaign. 3. Register twenty customers for leak alerts monthly. 4 Refine Data in Billing System Toward Compliance with State Indoor and Outdoor Water Usage Goals 1. Compare the number of household occupants in the Billing system with external sources of the District’s population. 2. Identify customer accounts with default occupant data. 3. Develop method(s) for converting default occupants to confirmed occupants. 4. Reduce the number of accounts with default occupant numbers by 10%. Program Summary CUSTOMER SERVICE Customer Service provides the community with prompt, courteous, and world-class customer relations. As the primary contact point with residents, this program explores opportunities to provide thorough/accurate responses to billing inquiries; provide convenient locations and methods for payment; and to resolve customer concerns about service delivery by requesting assistance from water maintenance personnel, and then following up with customers regarding the resolution to their concern. EAST VALLEY WATER DISTRICT | 159 FY 2024-25 BUDGET | 160 FY 2023-24 Accomplishments Goal One Developed Strategies to Address Organizational Service Needs • Met with payment processors to evaluate cost savings and convenience fees, and payment options not currently being offered to District customers. • Provided feedback to Public Affairs for Customer Service needs on new website. Goal Two Worked with other Departments to Recover Costs That Are Not Currently Captured by the District Fee Schedule • Evaluated the need for a fee to discourage defaults on payment plan contracts and found that the number of payment plans has drastically diminished and a fee for defaults is no longer necessary. • Researched costs associated with credit card charges and identified a vendor to capture the convenience fee. • Prepared revisions to ordinance and fee schedule and incorporated them into Public Hearing process for rates (obstruction, convenience fee). Goal Three Identified and Implemented Software Adjustments Needed Due to SB 998 and other Legislation • Reconfigured Tyler revenue codes to accommodate new time requirements under SB 998. • Revised and streamlined utility billing packet processing workflow process. • Reconfigured payment contract, conservation reports, disconnection door hangers, and arrearage report. LEVELS OF SERVICE The Customer Service Program has five KPI metrics that are associated with the District’s Goals and Objectives of: • Strive to Provide World-Class Customer Relations (III-B) • Maximize internal Capabilities through Ongoing Professional Development (I-B) • Dedicate Efforts Toward System Maintenance and Modernization (IV-C) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2021-22 FY 2022-23 FY 2023-24 III-B Reduce number of customers disconnected for non-payment each year 1,800 0*1,661 2,078 III-B Number of customer payments received through convenient off-site locations 5,000 4,323 3,886 3,208 I-B Number of customer service training hours per employee 16 4 4 6 IV-C Customers enrolled in paperless billing 2,000 1,411 1,506 1,614 IV-C Customers enrolled in the Pre-Authorized Payment Plan (auto-debit)5,000 3,663 3,001 4,053 *Due to California Governor Executive Order N-42-20 and the COVID-19 Pandemic, customer disconnections were prohibited. EAST VALLEY WATER DISTRICT | 161 Customer Service Program Budget Detail 6%SIGNIFICANT CHANGES IN PROGRAM BUDGET • Convenience fee has significantly reduced the net cost for electronic payment processing. • Increased Shut Off Notice Services budget due to increased number of disconnections. PROGRAM BUDGET ALLOCATION • $2,212,000 FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 582,850 $ 619,000 $ 585,088 $ 686,000 $ 67,000 11% 5102 Temporary Labor 52,252 - - - - 0% 5103 Overtime 16,400 7,000 9,716 7,000 - 0% 5200 Benefits 249,437 310,000 301,603 325,000 15,000 5% OPERATING EXPENSES 6203 Office Supplies 7,160 7,000 2,170 7,000 - 0% 6301 Contract Services 239,106 240,000 248,000 248,000 8,000 3% 6302 Banking Services 276,944 369,000 388,718 380,000 11,000 3% 6303 Printing & Publishing 10,394 10,000 10,000 10,000 - 0% 6304 Legal Services 6,036 5,000 - 5,000 - 0% 6307 Uniforms 2,721 4,000 4,000 4,000 - 0% 6308 Billing Services 83,199 68,000 52,783 57,000 (11,000)-16% 6309 Shut Off Notice Services 271,203 225,000 233,626 300,000 75,000 33% 6402 Telephone 9,265 8,000 8,287 8,000 - 0% 6406 Postage 186,463 153,000 153,000 153,000 - 0% 6501 Memberships & Dues - 1,000 - - (1,000)-100% 6502 Professional Development - 13,000 - 13,000 - 0% 6504 Meetings 2,681 3,000 2,258 3,000 - 0% 6703 Cash Over/Short (320) 1,000 - 1,000 - 0% 6704 Bad Debt 5,744 5,000 2,767 5,000 - 0% CUSTOMER SERVICE TOTAL $ 2,001,535 $2,048,000 $ 2,002,016 $ 2,212,000 $ 164,000 8% FY 2024-25 BUDGET | 162 [PAGE LEFT BLANK] Intentionally EAST VALLEY WATER DISTRICT | 163 M E T E R SE R V I C E S METER SERVICES Program Summaries Section Meter Services is responsible for maintaining the District's smart meter network, on-site customer meter- related requests, and customer service assistance. FY 2024-25 BUDGET | 164 • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Program Summaries Contents Meter Technician II 2 Total Full-Time 2 PROGRAM PERSONNEL PROGRAM STRUCTURE GENERAL MANAGER/CEO OPERATIONS MANAGER FIELD SERVICE SUPERVISOR METER TECHNICIAN II DIRECTOR OF ENGINEERING & OPERATIONS (2) GOALS OBJECTIVES 1 Implement Inspection Program for AMI Meters 1. Identify and replace eight vaults in need of lid replacements. 2. Visually inspect meter boxes in routes where read problems are occurring. 2 Work with Customer Service to Address Coverage Issues with the AMI Network 1. Confirm and correct MIU (meter interface unit) and meter numbers on meters that are not transmitting reliable read data. 2. Determine if an additional data collector is needed near or at Plant 132. Order and install if needed to address unreliable collection of reads. 3 Continue Meter Testing Programs in Compliance with State Water Audits Best Practices 1. Conduct an audit of 10% of large meters for accuracy to ensure compliance with AWWA standards. 2. Replace large meters that do not meet AWWA standards. Program Summary METER SERVICES The Meter Services program maintains a network of approximately 23,000 Advanced Metering Infrastructure (AMI) meters. The AMI meter program provides the District and its customers with near real-time consumption information. The Program conducts routine maintenance, testing and replacement of meters to ensure billing is accurate. EAST VALLEY WATER DISTRICT | 165 FY 2024-25 BUDGET | 166 FY 2023-24 Accomplishments Goal One Implemented Inspection Program for AMI Meters • Replaced 11 vault lids. • Visually inspected 100% of meter boxes in routes where read problems occurred. Goal Two Worked with Customer Service to Address Coverage Issues with the AMI Network • Corrected 25 MIU (meter interface unit) and meter numbers in billing database for errors made during installation. • Installed additional data collector at SNRC to address unreliable transmission of reads for routes in that vicinity. Goal Three Continued Meter Testing Programs in Compliance with State Water Audits Best Practices • Conducted an audit of 10% of large meters for accuracy and ensured compliance with AWWA standards. • Replaced 12 large meters that did not meet AWWA standards. LEVELS OF SERVICE The Meter Services Program has three KPI metrics that are associated with the District’s Goals and Objectives of: • Identify Opportunities to Optimize Natural Resources (I-A) • Strive to Provide World-Class Customer Relations (III-B) • Dedicate Efforts towards System Maintenance and Modernization (IV-C) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2021-22 FY 2022-23 FY 2023-24 I-A Number of large meters tested for accuracy 11 11 11 11 III-B Respond to customer requests for assistance within two hours 100%100%100%100% IV-C Number of employees trained on the Mobile Data Collector and access Neptune 360 4 3 3 4 EAST VALLEY WATER DISTRICT | 167 Meter Services Program Budget Detail 1%SIGNIFICANT CHANGES IN PROGRAM BUDGET • None. PROGRAM BUDGET ALLOCATION • $304,000 FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 171,033 $ 173,000 $ 159,183 $ 181,000 $ 8,000 5% 5103 Overtime 2,289 6,000 412 6,000 - 0% 5200 Benefits 80,253 101,000 89,642 104,000 3,000 3% OPERATING EXPENSES 6201 Materials & Supplies - 1,000 - 1,000 - 0% 6202 Tools - 3,000 - 3,000 - 0% 6301 Contract Services - 5,000 - 5,000 - 0% 6307 Uniforms 1,328 2,000 2,000 2,000 - 0% 6402 Telephone 1,308 1,000 1,151 2,000 1,000 100% METER SERVICES TOTAL $ 256,211 $ 292,000 $ 252,388 $ 304,000 $ 12,000 4% FY 2024-25 BUDGET | 168 [PAGE LEFT BLANK] Intentionally EAST VALLEY WATER DISTRICT | 169 E N G I N E E R I N G ENGINEERING Program Summaries Section Engineering coordinates and supports new development within the District's service area by streamlining plan checking and inspection efforts. FY 2024-25 BUDGET | 170 • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Program Summaries Contents PROGRAM PERSONNEL Director of Engineering & Operations 1 Senior Engineer 2 Total Full-Time 3 PROGRAM STRUCTURE GENERAL MANAGER/CEO DIRECTOR OF ENGINEERING & OPERATIONS SENIOR ENGINEER (2) GOALS OBJECTIVES 1 Develop and Implement the District’s Capital Improvement Program to Address Rehabilitation and Maintenance Needs While Preparing for New Development 1. Complete rehabilitation of the reservoir at Plant 56. 2. Retrofit and upgrade the water facilities at Plant 101. 3. Conduct the bid phase and start construction of grant-funded pipeline replacements. 4. Evaluate options to upgrade the Plunge Creek Crossing for the North Fork Water Company Pipeline. 2 Develop Plans to Optimize District Water and Energy Resources 1. Complete a study to evaluate alternatives to optimize surface water treatment capacity within the District. 2. Complete groundwater master planning efforts to consider short-term and long-term actions related to groundwater production capacity. 3. Conduct an analysis of alternative energy sources. 4. Complete the bid and drilling phase for the new groundwater well at Plant 129. 5. Complete design of grant-funded seismic retrofits of seven storage reservoirs. Program Summary ENGINEERING The Engineering Program responsibilities include infrastructure planning, maintaining a safe and reliable water supply, and ensuring compliance with Federal and State regulations. This Program also oversees wastewater collection and reclamation capital projects. EAST VALLEY WATER DISTRICT | 171 FY 2024-25 BUDGET | 172 FY 2023-24 Accomplishments Goal One Developed and Implemented the District’s Capital Improvement Program to Address Rehabilitation and Maintenance Needs While Preparing for New Development • Completed preliminary design report for Canal 3 Zone reservoir at the Applewood site. • Completed design of 6.5 miles of District water mains. • Reviewed minutes of three utility coordination meetings with the City of Highland to monitor the Baseline Bridge replacement project. • Completed design and bid package for Plant 101. • Completed design and substantial construction of water main relocation at Little 3rd Street and Little Tippecanoe. Goal Two Developed Plans to Optimize District Water and Energy Resources • Completed design of new groundwater well at Plant 129. • Provided Engineering support for rehabilitation of Plant 120. • Provided Engineering and surveying support related to the North Fork pipeline root intrusion. Goal Three Completed Construction and Commissioning of the SNRC • Completed construction of the regional recycled water pipeline and Weaver Basins. LEVELS OF SERVICE The Engineering Program has three KPI metrics that are associated with the District’s Goals and Objectives of: • Develop Projects and Programs to Ensure Safe and Reliable Services (IV-A) • Strive to Provide World-Class Customer Relations (III-B) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2021-22 FY 2022-23 FY 2023-24 IV-A Initiate fully funded projects included in the current year CIP 100%100%100%100% III-B Complete development infrastructure plan reviews in < 14 days 100%100%100%80% III-B Issue development impact fee costs estimates in < 2 days 100%100%100%95% EAST VALLEY WATER DISTRICT | 173 Engineering Program Budget Detail 3%SIGNIFICANT CHANGES IN PROGRAM BUDGET • Contract for a GIS consultant moved to Information Technology’s Contract Services budget. PROGRAM BUDGET ALLOCATION • $1,321,000 FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 583,000 $ 627,000 $ 522,067 $ 658,000 $ 31,000 5% 5103 Overtime - 3,000 - - (3,000)-100% 5200 Benefits 173,739 153,000 116,479 154,000 1,000 1% OPERATING EXPENSES 6201 Materials & Supplies 2,303 9,000 1,500 3,000 (6,000)-67% 6202 Tools 2,252 7,000 5,700 1,000 (6,000)-86% 6203 Office Supplies 627 3,000 960 2,000 (1,000)-33% 6301 Contract Services 299,023 377,000 341,154 374,000 (3,000)-1% 6303 Printing & Publishing - 3,000 - 1,000 (2,000)-67% 6304 Legal Services 12,491 10,000 11,000 15,000 5,000 50% 6307 Uniforms 932 3,000 500 3,000 - 0% 6402 Telephone 3,380 3,000 2,610 3,000 - 0% 6405 Permits 60,828 84,000 89,000 94,000 10,000 12% 6406 Postage 40 1,000 - 1,000 - 0% 6501 Memberships & Dues 1,742 5,000 1,916 4,000 (1,000)-20% 6502 Professional Development 10,737 7,000 6,707 7,000 - 0% 6504 Meetings 563 3,000 200 1,000 (2,000)-67% ENGINEERING TOTAL $ 1,151,657 $ 1,298,000 $ 1,099,793 $ 1,321,000 $ 23,000 2% FY 2024-25 BUDGET | 174 [PAGE LEFT BLANK] Intentionally EAST VALLEY WATER DISTRICT | 175 WA T E R P R O D U C T I O N WATER PRODUCTION Program Summaries Section Water Production specializes in managing the overall water distribution system. FY 2024-25 BUDGET | 176 • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Program Summaries Contents PROGRAM PERSONNEL Operations Manager 1 Sr. Water Production Operator 1 Water Production Operator III 1 Water Production Operator II 3 Sr. Administrative Assistant 1 Total Full-Time 7 SR. ADMINISTRATIVE ASSISTANT GENERAL MANAGER/CEO OPERATIONS MANAGER WATER PRODUCTION SUPERVISOR SR. WATER PRODUCTION OPERATOR DIRECTOR OF ENGINEERING & OPERATIONS WATER PRODUCTION OPERATOR II (3) WATER PRODUCTION OPERATOR III PROGRAM STRUCTURE GOALS OBJECTIVES 1 Implement a Plan to Identify and Enhance Water Sources’ Requirements Due to the SNRC Discharge Location 1. Support work of contractor to complete rehabilitation of Plant 101. 2. Support construction of new well at Plant 129, and identification of second site to facilitate start of preliminary design work. 3. Contract for a study to determine alternate use of plant and equipment at Plant 143. 2 Enhance the SCADA System to Improve Water Production Reliability 1. Work with the SCADA contractor to identify individual sites for SCADA upgrades. 3 Rehabilitate Plant Components to Ensure Water Production 1. Coordinate with Water Maintenance for replacement of isolation valves to repair critical PRV (Pacific/Osbun). 2. Work with Engineering for rehabilitation of reservoir at Plant 56. 3. Solicit proposals and finalize new master agreements for pump and motor maintenance. Program Summary WATER PRODUCTION Water Production is responsible for the daily monitoring and operations of the entire water production system to ensure preventative maintenance of all pumps, motors, wells, boosters, reservoirs, pressure regulating valves (PRVs), hydro-pneumatic plants, and the SCADA system. This Program is also responsible for the delivery of Santa Ana River water through the North Fork Water Company canal/pipeline. EAST VALLEY WATER DISTRICT | 177 FY 2024-25 BUDGET | 178 FY 2023-24 Accomplishments Goal One Implemented a Plan to Identify and Enhance Water Sources’ Requirements Due to the SNRC Discharge Location • Installed pressure regulating valve (PRV) at Plant 129 to connect the plant to the upper zone distribution system. • Contracted for repairs and upgrades to Well 120 to ensure its operational readiness for summer 2024 production. Goal Two Enhanced the SCADA System to Achieve Water Production Requirements • Worked with SCADA contractor to upgrade servers and add new cell modems to Headquarters and Plant 134. • Upgraded radio at Plants 120, 37, 131, and 38. Goal Three Rehabilitated Plant Components to Ensure Water Production • Coordinated with Water Maintenance for replacement of isolation valves to repair critical PRV (Church/Water and Baseline/Sterling). LEVELS OF SERVICE The Water Production Program has six KPI metrics that are associated with the District’s Goals and Objectives of: • Develop Projects and Programs to Ensure Safe and Reliable Services (IV-A) • Dedicate Effort towards System Maintenance and Modernization (IV-C) • Enable Fact-Based Decision Making through State-of-the-Art Data Management (IV-D) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2021-22 FY 2022-23 FY 2023-24 IV-A Perform upgrades to SCADA radios as recommended by consultant 5/Yr 5 3 4 IV-C Perform or schedule repairs recommended by reservoir inspection report 1/Yr 0 1 1 IV-D Implement available SCADA software updates 100%100%100%100% IV-A Complete all efficiency testing for all well pumps 12 100%100%100% IV-A Schedule well replacement of pumps based on SCE reports*1 1 1 1 IV-A Complete all efficiency testing on booster pumps 30 100%100%100% *New KPI starting in FY 2023-24 EAST VALLEY WATER DISTRICT | 179 Water Production Program Budget Detail Administration FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 276,178 $ 271,000 $ 258,310 $ 303,000 $ 32,000 12% 5103 Overtime 375 1,000 41 1,000 - 0% 5104 Standby 14,442 15,000 46,527 47,000 32,000 213% 5200 Benefits 150,981 180,000 192,099 196,000 16,000 9% OPERATING EXPENSES 6201 Materials & Supplies 2,143 - 3,811 3,000 3,000 100% 6202 Tools 674 6,000 3,177 6,000 - 0% 6203 Office Supplies 5,322 9,000 5,449 4,000 (5,000)-56% 6301 Contract Services 88,237 103,000 106,676 110,000 7,000 7% 6307 Uniforms 11,638 15,000 12,023 15,000 - 0% 6402 Telephone 11,796 14,000 13,748 14,000 - 0% 6501 Memberships & Dues 735 3,000 588 3,000 - 0% 6502 Professional Development 14,171 7,000 7,448 7,000 - 0% 6504 Meetings 1,577 1,000 516 1,000 - 0% ADMINISTRATION TOTAL $ 578,269 $ 625,000 $ 650,413 $ 710,000 $ 85,000 14% Wells FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 162,768 $ 215,000 $ 201,723 $ 234,000 $ 19,000 9% 5103 Overtime 8,726 17,000 12,925 17,000 - 0% 5200 Benefits 53,607 83,000 92,881 67,000 (16,000)-19% OPERATING EXPENSES 6101 Purchased Water 31,557 200,000 200,000 300,000 100,000 50% 6102 Groundwater Replenishment 109,631 451,000 280,647 352,000 (99,000)-22% 6103 Water Assessment 115,973 117,000 114,669 181,000 64,000 55% 6201 Materials & Supplies 69,896 45,000 41,252 45,000 - 0% 6204 Chemicals 135,241 150,000 132,473 150,000 - 0% 6301 Contract Services 134,154 265,000 46,839 265,000 - 0% 6403 Electricity 2,567,441 2,275,000 1,659,279 2,275,000 - 0% 6405 Permits 77,300 100,000 81,702 100,000 - 0% WELLS TOTAL $ 3,466,294 $ 3,918,000 $ 2,864,390 $ 3,986,000 $ 68,000 2% 16%SIGNIFICANT CHANGES IN PROGRAM BUDGET • The District plans to increase the amount of prepaid Tier 1 SWP water from San Bernardino Valley this fiscal year. • Increased Water Assessment budget due to NFWC’s increase in Operating and Capital Assessments. PROGRAM BUDGET ALLOCATION • $6,185,000 FY 2024-25 BUDGET | 180 Boosters FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 109,008 $ 119,000 $ 108,689 $ 132,000 $ 13,000 11% 5103 Overtime 11,141 14,000 10,611 14,000 - 0% 5200 Benefits 48,081 63,000 66,940 68,000 5,000 8% OPERATING EXPENSES 6201 Materials & Supplies 13,817 20,000 16,555 20,000 - 0% 6301 Contract Services 16,247 100,000 92,514 100,000 - 0% 6403 Electricity 762,784 710,000 535,319 710,000 - 0% BOOSTERS TOTAL $ 961,078 $ 1,026,000 $ 830,628 $ 1,044,000 $ 18,000 2% Reservoirs FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 263,075 $ 185,000 $ 180,660 $ 215,000 $ 30,000 16% 5103 Overtime 13,267 14,000 59,416 60,000 46,000 329% 5200 Benefits 179,144 74,000 57,231 65,000 (9,000)-12% OPERATING EXPENSES 6201 Materials & Supplies 16,425 5,000 2,447 30,000 25,000 500% 6204 Chemicals 30,516 50,000 18,533 30,000 (20,000)-40% 6301 Contract Services 35,662 45,000 51,124 45,000 - 0% RESERVOIRS TOTAL $ 538,089 $ 373,000 $ 369,411 $ 445,000 $ 72,000 19% TOTAL WATER PRODUCTION $ 5,543,730 $5,942,000 $ 4,714,842 $ 6,185,000 $ 243,000 4% EAST VALLEY WATER DISTRICT | 181 WA T E R TR E A T M E N T WATER TREATMENT Program Summaries Section Water Treatment manages three sources of water, including surface water, groundwater, and State Water Project imported water. FY 2024-25 BUDGET | 182 • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Program Summaries Contents PROGRAM PERSONNEL Water Production Supervisor 1 Sr. Treatment Plant Operator 1 Total Full-Time 2 PROGRAM STRUCTURE GENERAL MANAGER/CEO OPERATIONS MANAGER WATER PRODUCTION SUPERVISOR SR. TREATMENT PLANT OPERATOR DIRECTOR OF ENGINEERING & OPERATIONS GOALS OBJECTIVES 1 Maximize Plant 134 Water Production 1. Determine the frequency of changeouts required for GAC media. 2. Determine most efficient and cost-effective method for disposing of increasing levels of sludge. 2 Develop a Long- Term Replacement Plan Based on Plant Performance 1. Track individual membrane integrity test (MIT) results and repairs to prioritize replacement schedule. 3 Evaluate and Rehabilitate Existing Clean-in- Place Equipment at Plant 134 1. Inspect existing equipment and establish prioritized replacement schedule. 2. Purchase and install necessary parts and materials to complete the clean-in-place equipment project. Program Summary WATER TREATMENT Water Treatment is responsible for the management of three different sources of supply used by the District. The District operates Plant 134, a Surface Water Treatment Plant, that can treat Santa Ana River water and imported water from the State Water Project. Staff also operate two unique groundwater treatment facilities: Plant 28 uses Granular Activated Carbon (GAC) and Plant 39 is a blending facility. EAST VALLEY WATER DISTRICT | 183 FY 2024-25 BUDGET | 184 FY 2023-24 Accomplishments Goal One Maximized Plant 134 Water Production While Utilizing GAC Facilities • Developed flow standards to meet water quality objectives. • Determined frequency of carbon filtration media changeouts to maintain water quality. • Implemented data collection requirements identified in the permit amendment. Goal Two Completed Plant 134 Membrane Replacements Using a Five-Phase Replacement Schedule • Procured the necessary membrane modules from the manufacturer in accordance with the District’s Purchasing Policy. • Coordinated and scheduled in-house installation of new membranes in the fifth and final train. LEVELS OF SERVICE The Water Treatment Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) • Dedicate Effort towards System Maintenance and Modernization (IV-C) • Maximize Staff Capabilities through Ongoing Professional Development (I-B) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2021-22 FY 2022-23 FY 2023-24 IV-A Meet all regulatory requirements 100%100%100%100% IV-A Maximize utilization of treatment plant capacity according to peak demands (July – September)7.5 MGD 4.3 3.6 4.4 IV-C Percentage of plant equipment and motors on preventative maintenance schedules 100%100%100%100% I-B Number of Production staff with T-4 certification or higher 4 5 4 3 EAST VALLEY WATER DISTRICT | 185 Water Treatment Program Budget Detail 4%SIGNIFICANT CHANGES IN PROGRAM BUDGET • Identified July through September are peak demand months to operate Plant 134. • Materials & Supplies increased $50,000 at mid-year, due to additional materials needed for Plant 134 repairs. Staff do not anticipate needing more than $20,000 this fiscal year. • Increased Electricity budget due to higher energy costs. PROGRAM BUDGET ALLOCATION • $1,629,000 FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 263,315 $ 273,000 $ 266,431 $ 304,000 $ 31,000 11% 5103 Overtime 57,477 39,000 28,429 39,000 - 0% 5200 Benefits 138,374 164,000 180,855 179,000 15,000 9% OPERATING EXPENSES 6201 Materials & Supplies 157,681 70,000 113,513 20,000 (50,000)-71% 6204 Chemicals 156,860 195,000 254,635 180,000 (15,000)-8% 6301 Contract Services 195,242 347,000 605,566 662,000 315,000 91% 6307 Uniforms 461 2,000 491 2,000 - 0% 6402 Telephone 4,304 5,000 2,988 3,000 (2,000)-40% 6403 Electricity 136,781 180,000 239,210 240,000 60,000 33% WATER TREATMENT TOTAL $ 1,110,495 $ 1,275,000 $ 1,692,118 $ 1,629,000 $ 354,000 28% FY 2024-25 BUDGET | 186 [PAGE LEFT BLANK] Intentionally EAST VALLEY WATER DISTRICT | 187 WA T E R QU A L I T Y WATER QUALITY Program Summaries Section Water Quality has dedicated, state certified team members to test water quality and ensure all members of the community receive safe drinking water. FY 2024-25 BUDGET | 188 • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Program Summaries Contents PROGRAM PERSONNEL Water & Wastewater Compliance Supervisor 1 Water Quality Technician 1 Total Full-Time 2 Part-Time Water Quality Worker 1 Total Part-Time 1 PROGRAM STRUCTURE GENERAL MANAGER/CEO OPERATIONS MANAGER WATER PRODUCTION SUPERVISOR WATER & WASTEWATER COMPLIANCE SUPERVISOR WATER QUALITY TECHNICIAN WATER QUALITY WORKER PT DIRECTOR OF ENGINEERING & OPERATIONS GOALS OBJECTIVES 1 Evaluate Water Quality Regulations and Improve Process Efficiencies to Enhance Water Quality Compliance 1. Begin sampling for U.S. EPA’s revised Lead and Copper Rule, effective summer of 2024. 2. Complete Unregulated Contaminant Monitoring Rule (UCMR5) sampling in accordance with U.S. EPA’s sample schedule. 2 Implement Backflow Program Enhancement Modifications 1. Work with customers to replace remaining outdated and unapproved backflow devices. 2. Work with staff to obtain required backflow certification. 3 Evaluate FOG Program Procedures for Effectiveness 1. Identify and investigate non-permitted locations for compliance. 2. Work with contractors to evaluate additional needs for system efficiencies. 3. Evaluate program to ensure fees are adequate to cover program cost. Program Summary WATER QUALITY Water Quality is responsible for ensuring District compliance with State and Federal Drinking Water Regulations. This program manages Backflow Prevention, Water Sampling, and the Fire Hydrant Flushing Programs. Water Quality is also assisting in the development and launch of the Fats, Oils, and Grease (FOG) program for SNRC pre-treatment. EAST VALLEY WATER DISTRICT | 189 FY 2024-25 BUDGET | 190 FY 2023-24 Accomplishments Goal One Evaluated Water Quality Regulations and Improved Process Efficiencies to Enhance Water Quality Compliance • Implemented updated sampling requirements outlined in the District’s latest permit amendment. • Completed U.S. EPA registration for Unregulated Contaminant Monitoring Rule (UCMR5) sample schedule. • Identified sample requirements for U.S. EPA’s Revised Lead and Copper Rule, effective summer 2024. Goal Two Implemented Backflow Program Enhancement Modifications • Completed backflow software migration and implementation for cloud- based service. • Provided contractor tester training for accessing and updating customer device information via cloud-based software. Goal Three Implemented Customer / Vendor FOG Program Requirements and Training Campaign • Conducted customer outreach and vendor training for cloud-based compliance reporting. • Created customer Best Management Practices campaign to maintain program standards. • Assisted Water Reclamation with procurement and management of contract for FOG compliance inspection. LEVELS OF SERVICE The Water Quality Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) • Strive to Provide World-Class Customer Relations (III-B) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2021-22 FY 2022-23 FY 2023-24 IV-A Conduct all water quality sampling required by SWRCB and U.S. EPA 100%100%100%100% IV-A Complete annual Hazmat site-handling permits*100%100%100%100% III-B Response time to water quality complaints by customers (average)2.0 Hrs 1.5 1.5 1.5 IV-A Number of underground fire services to be re- routed aboveground annually 3 3 4 3 *New KPI starting in FY 2022-23 EAST VALLEY WATER DISTRICT | 191 Water Quality Program Budget Detail 1%SIGNIFICANT CHANGES IN PROGRAM BUDGET • Hired a part-time Water Quality Worker. • Increased Contract Services. budget due to U.S. EPA’s sampling requirements for UCMR5 and the Lead & Copper Rule. PROGRAM BUDGET ALLOCATION • $605,000 FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 110,633 $ 98,000 $ 99,360 $ 133,000 $ 35,000 36% 5103 Overtime 2,596 6,000 2,024 6,000 - 0% 5200 Benefits 26,614 41,000 17,609 24,000 (17,000)-41% WELLS OPERATING EXPENSES 6201 Materials & Supplies 12,414 14,000 14,000 14,000 - 0% 6301 Contract Services 55,987 59,000 59,000 95,000 36,000 61% 6307 Uniforms 1,170 4,000 4,000 4,000 - 0% 6504 Meetings 234 1,000 1,000 1,000 - 0% RESERVOIR PERSONNEL EXPENSES 5101 Regular Labor 110,420 125,000 99,360 146,000 21,000 17% 5103 Overtime 2,596 6,000 381 6,000 - 0% 5200 Benefits 55,180 66,000 65,076 78,000 12,000 18% RESERVOIR OPERATING EXPENSES 6201 Materials & Supplies 576 2,000 2,000 2,000 - 0% 6202 Tools 3,000 9,000 9,000 9,000 - 0% 6301 Contract Services 55,685 65,000 65,000 79,000 14,000 22% 6406 Postage - 2,000 2,000 2,000 - 0% 6502 Professional Development 3,598 3,000 3,000 3,000 - 0% 6503 Education Assistance - 3,000 - 3,000 - 0% WATER QUALITY TOTAL $ 440,703 $ 504,000 $ 442,810 $ 605,000 $ 101,000 20% FY 2024-25 BUDGET | 192 [PAGE LEFT BLANK] Intentionally EAST VALLEY WATER DISTRICT | 193 WA T E R M A I N T E N A N C E WATER MAINTENANCE Program Summaries Section Water Maintenance maintains the District's water transmission and distribution system. FY 2024-25 BUDGET | 194 • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Program Summaries Contents PROGRAM PERSONNEL Field Service Supervisor 1 Sr. Field Service Worker 1 Field Service Worker III 8 Field Service Worker II 1 Field Service Worker I 4 Storekeeper/Buyer (Warehouse)1 Total Full-Time 16 PROGRAM STRUCTURE GENERAL MANAGER/CEO OPERATIONS MANAGER FIELD SERVICE SUPERVISOR SR. FIELD SERVICE WORKER FIELD SERVICE WORKER III FIELD SERVICE WORKER II FIELD SERVICE WORKER I DIRECTOR OF ENGINEERING & OPERATIONS (8) (4) STOREKEEPER/ BUYER WAREHOUSE GOALS OBJECTIVES 1 Prioritize Preventative Maintenance Schedules to Ensure Equipment Readiness for Emergency Response 1. Replace 40 inoperable gate valves on the west side of the District. 2. Coordinate with Production to perform valve replacements to isolate crucial PRV stations in Pacific/Osbun; Plant 37; and Orange/Mercedes. 3. Inspect, maintain, and replace (as needed) 3,000 hydrants on a three- year cycle. 4. Solicit proposals and finalize new master agreement for pipeline repair services. 2 Fully Utilize Tyler’s EnerGov Asset Management Software 1. Continue training and implementation of Tyler’s Asset Management module (EnerGov). 3 Continue Replacement Program for Mains and Inground Fire Service Devices 1. Replace 1,500 feet of water main in Elmwood Drive north of Lynwood. 2. Coordinate with Water Quality to replace final three outdated fire services on Central Avenue, Palm Avenue, and Pacific Street. Program Summary WATER MAINTENANCE The Water Maintenance Program is responsible for repair and replacement of the District’s 300 miles of water pipeline. Water Maintenance coordinates with Engineering and Water Production to install water service lines, fire hydrants, meters, valves, and all related equipment. Crew members remain on standby during non-business hours to respond to customer afterhours requests and emergencies. EAST VALLEY WATER DISTRICT | 195 FY 2024-25 BUDGET | 196 FY 2023-24 Accomplishments Goal One Prioritized Preventative Maintenance Schedules to Ensure Equipment Readiness for Emergency Response • Replaced 40 inoperable gate valves on the west side of the District. Conducted majority of work in house, augmented by outside contractor. • Coordinated with Production to perform valve replacements to isolate crucial PRV stations in Baseline/Sterling, North Church, and Central/ Mansfield. • Inspected and maintained 1,055 District hydrants; replaced 15 hydrants. Goal Two Assessed Operation of Tyler’s EnerGov Asset Management Software • Trained all staff on use of new software. • Enhanced tracking of all labor, equipment, and materials for water maintenance activities. Goal Three Continued Replacement Program for Mains and Inground Fire Service Devices • Replaced 900 feet of water mains in Darren Place, Tiffani Place, and Valaria Court. LEVELS OF SERVICE The Water Maintenance Program has six KPI metrics that are associated with the District’s Goals and Objectives of: • Maximize Internal Capabilities through Ongoing Professional Development (I-B) • Advance Emergency Preparedness Efforts (III-A) • Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) • Dedicate Effort towards System Maintenance and Modernization (IV-C) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2021-22 FY 2022-23 FY 2023-24 I-B Number of Water Maintenance staff with D-3 certification or higher 5 5 5 4 III-A Annual equipment and safety training hours per staff member 16 16 16 16 IV-A Number of gate valves exercised*1,200 643 755 1,284 IV-C Respond to, and assess, customer leak concerns within reasonable time frame (two hours)98%100%100%100% IV-C Number of main leaks repaired*<70 92 88 120 IV-C Estimate of water losses from main leaks (MG)*<10 MG 0.54 MG 0.54 MG 0.28 MG *Data reported for calendar year beginning FY 2023-24. EAST VALLEY WATER DISTRICT | 197 Water Maintenance Program Budget Detail Administration FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 225,908 $ 217,000 $ 208,149 $ 218,000 $ 1,000 0% 5103 Overtime 1,586 2,000 560 2,000 - 0% 5104 Standby 23,903 20,000 46,059 20,000 - 0% 5200 Benefits 135,013 158,000 173,130 132,000 (26,000)-16% OPERATING EXPENSES 6203 Office Supplies 46 3,000 3,000 3,000 - 0% 6307 Uniforms 3,692 1,000 1,234 2,000 1,000 100% 6402 Telephone 35,724 41,000 30,637 41,000 - 0% 6501 Memberships & Dues 1,204 2,000 2,000 2,000 - 0% 6502 Professional Development 4,455 18,000 18,139 18,000 - 0% 6504 Meetings 3,881 3,000 3,000 3,000 - 0% 6706 Inventory Over/Short 78 - - - - 0% ADMINISTRATION TOTAL $ 435,490 $ 465,000 $ 485,908 $ 441,000 $ (24,000)-5% 11%SIGNIFICANT CHANGES IN PROGRAM BUDGET • Increased Materials & Supplies, Tools, and Street Services budgets due to inflation. PROGRAM BUDGET ALLOCATION • $4,152,250 FY 2024-25 BUDGET | 198 Pipeline Maintenance FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 1,143,044 $ 1,064,000 $ 1,043,228 $ 1,280,000 $ 216,000 20% 5103 Overtime 337,271 319,000 380,941 219,000 (100,000)-31% 5200 Benefits 550,451 620,000 586,095 630,000 10,000 2% OPERATING EXPENSES 6201 Materials & Supplies 893,947 650,000 650,000 880,000 230,000 35% 6202 Tools 51,991 36,000 36,000 67,000 31,000 86% 6301 Contract Services 79,718 67,000 67,000 70,250 3,250 5% 6307 Uniforms 34,162 40,000 40,000 40,000 - 0% 6310 Street Services 444,869 450,000 450,000 525,000 75,000 17% 6405 Permits 6,835 - - - - 0% PIPELINE MAINTENANCE TOTAL $ 3,542,288 $ 3,246,000 $ 3,253,264 $ 3,711,250 $ 465,250 14% TOTAL WATER MAINTENANCE $ 3,977,778 $ 3,711,000 $ 3,739,172 $ 4,152,250 $ 441,250 12% EAST VALLEY WATER DISTRICT | 199 WA S T E W A T E R CO L L E C T I O N WASTEWATER COLLECTION Program Summaries Section Wastewater Collection prevents wastewater spillage and leaks by monitoring and maintaining wastewater pipelines. FY 2024-25 BUDGET | 200 • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Program Summaries Contents PROGRAM PERSONNEL Sr. Field Service Worker 1 Field Service Worker II 2 Field Service Worker I 1 Total Full-Time 4 PROGRAM STRUCTURE GENERAL MANAGER/CEO OPERATIONS MANAGER FIELD SERVICE SUPERVISOR FIELD SERVICE WORKER II DIRECTOR OF ENGINEERING & OPERATIONS (2) FIELD SERVICE WORKER I SR. FIELD SERVICE WORKER GOALS OBJECTIVES 1 Continue Wastewater Collection System Maintenance and Management 1. Video inspect and assess 75 miles of District sewer mains between the northern and southern District boundaries, and west of Del Rosa Avenue. 2. Clean 230 miles of sewer main. 3. Investigate and implement method(s) to reduce rainwater inflow into the wastewater collection system during storm events. 2 Provide Support for the New Fats, Oils, and Grease (FOG) Program 1. Identify high maintenance areas within the collection system for the new contracted FOG inspector. 2. Assist FOG inspector in prioritizing correction efforts. 3 Keep Sewer Mains Clear of Pests and Obstructions 1. Video sewer mains to identify root intrusions. 2. Schedule foam blasting of identified areas to control roots. 3. Schedule to spray 2,500 manholes for insect control. Program Summary WASTEWATER COLLECTION The Wastewater Collection program performs routine inspections, cleaning, repairs, and replacement of the District’s 230 miles of collection pipelines. The District’s collection system has been engineered to use best practice gravity flow conveyance prior to treatment. California public health code mandates the District is responsible for inspection of wastewater collection systems. The pipeline inspection program uses a sewer inspection camera/transporter and closed-circuit television (CCTV) technology. The videoing software allows the operator to document pipeline condition attributes and location data for maintenance or replacement consideration. Along with videoing the collection pipeline, the Wastewater Collection Program conducts a weekly sewer cleaning program using specialized equipment. The jetting program ensures the entire system is cleaned within 24 months, and high maintenance areas are cleaned more regularly. EAST VALLEY WATER DISTRICT | 201 SEWER FY 2024-25 BUDGET | 202 FY 2023-24 Accomplishments Goal One Continued Wastewater Collection System Maintenance and Management • Video inspected and assessed 63 miles of District sewer mains between the northern and southern District boundaries, and east of Victoria. • Cleaned 237 miles of sewer main. • Developed communication protocols for Collection staff to notify SNRC staff of specialized maintenance activities (tree root chemicals, insects, etc). Goal Two Provided Support for New Fats, Oils, and Grease (FOG) Program • Identified three high maintenance areas within the collection system for the new contracted FOG inspector. • Assisted FOG inspector in prioritizing correction efforts. Goal Three Kept Sewer Mains Clear of Pests and Obstructions • Treated 16,340 ft of sewer mains with root control foam for root intrusions. • Sprayed 2,500 manholes for insect control. LEVELS OF SERVICE The Wastewater Collection Program has six KPI metrics that are associated with the District’s Goals and Objectives of: • Maximize Internal Capabilities through Ongoing Professional Development (I-B) • Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) • Dedicate Effort towards System Maintenance and Modernization (IV-C) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2021-22 FY 2022-23 FY 2023-24 I-B Number of staff holding CWEA certifications 4 6 5 5 IV-A Miles of wastewater mains inspected by video 55 71 75 63 IV-A Category 1 Sanitary System Overflows reportable to SWRCB 0 0 0 0 IV-C Miles of wastewater mains jetted / cleaned 230 211 230 140 IV-C Category 4 or 5 spot repairs identified 0 1 0 0 IV-C Category 4 or 5 spot repairs completed 0 1 0 0 EAST VALLEY WATER DISTRICT | 203 Wastewater Collection Program Budget Detail 2%SIGNIFICANT CHANGES IN PROGRAM BUDGET • Increased Contract Services to fund FOG Inspection and Environmental Support Services. Annual Discharge Permit fees will be used to cover the increase. PROGRAM BUDGET ALLOCATION • $962,250 FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 420,449 $ 371,000 $ 349,470 $ 396,000 $ 25,000 7% 5103 Overtime 32,093 9,000 12,177 9,000 - 0% 5200 Benefits 128,981 174,000 143,973 177,000 3,000 2% OPERATING EXPENSES 6201 Materials & Supplies 9,607 31,000 31,000 31,000 - 0% 6202 Tools 7,115 11,000 11,000 6,250 (4,750)-43% 6301 Contract Services 153,169 201,000 201,000 339,000 138,000 69% 6307 Uniforms 1,060 4,000 729 4,000 - 0% WASTEWATER COLLECTION TOTAL $ 752,474 $ 801,000 $ 749,349 $ 962,250 $ 161,250 20% FY 2024-25 BUDGET | 204 [PAGE LEFT BLANK] Intentionally EAST VALLEY WATER DISTRICT | 205 WA T E R RE C L A M A T I O N WATER RECLAMATION Program Summaries Section Water Reclamation oversees and manages all operations related to the SNRC to ensure compliance with strict State water quality standards. FY 2024-25 BUDGET | 206 • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Program Summaries Contents PROGRAM PERSONNEL Water Reclamation Manager 1 Sr. Wastewater Treatment Plant Operator 1 Wastewater Treatment Plant Operator I - III 7 Total Full-Time 9 PROGRAM STRUCTURE GENERAL MANAGER/CEO WATER RECLAMATION MANAGER SR. WASTEWATER TREATMENT PLANT OPERATOR WASTEWATER TREATMENT PLANT OPERATOR I III DIRECTOR OF ENGINEERING & OPERATIONS (7) GOALS OBJECTIVES 1 Evaluate SNRC Resourcing 1. Create a plan to onboard interns and provide learning opportunities at the SNRC. 2. Start the Operater In Training Plan (OIT). 3. Develop and implement the SNRC Internship Recruitment Plan. 4. Contract for maintenance and other services not currently performed by staff or other contractors. 2 Meet and Exceed Compliance Requirements for the SNRC 1. Manage and enforce a pre-treatment program. 2. Comply with Air Quality Management District (AQMD) emissions requirements. 3. Comply with recycled water quality requirements. 3 Operate the SNRC to Ensure Long- Term Sustainability and Resource Optimization 1. Develop a comprehensive asset management plan. 2. Participate with regional coalitions and implement Salt Mitigation Feasibility study recommendations. 3. Optimize digestor energy operations to produce 85% of on-site energy needs. Program Summary WATER RECLAMATION The Water Reclamation Program is responsible for treating and disinfecting up to eight million gallons of wastewater per day (MGD) at the District’s new water recycling plant known as the Sterling Natural Resource Center (SNRC). The SNRC operations include anaerobic digestion for energy generation to offset the cost of power needed to operate the plant. EAST VALLEY WATER DISTRICT | 207 FY 2024-25 BUDGET | 208 FY 2023-24 Accomplishments Goal One Completed Staffing and Training for New Wastewater Treatment Operations • Continued to hire staff in accordance with staffing plan finalized by Human Resources & Risk Management. • Ensured new employees are trained for operations and maintenance for the SNRC. • Worked with Water Quality to procure a contract for the FOG program compliance inspector. Goal Two Met and Exceeded Compliance Requirements for the SNRC • Implemented and managed a pre-treatment program. • Complied with AQMD emissions requirements. • Complied with recycled water quality requirements. Goal Three Commenced Operations at the SNRC • Completed transition: of wastewater flows to the SNRC over a three- month period, discharged water to Weaver Basins, generated on-site renewable energy, and disposed residual solids. • Performed optimization of the Aeration system. • Managed new preventative maintenance program. LEVELS OF SERVICE The Water Reclamation Program has six KPI metrics that are associated with the District’s Goals and Objectives of: • Maximize Internal Capabilities through Ongoing Professional Development (I-B) • Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) • Dedicate Effort towards System Maintenance and Modernization (IV-C) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2021-22 FY 2022-23 FY 2023-24 I-B Number of staff holding Wastewater Treatment certifications 6 2*6*6 IV-A Comply with Waste Discharge Requirements (WDR) and Water Recycling Requirements (WRR) for Removal of BOD and TSS at the SNRC 95%N/A N/A 100% IV-A Deliver recycled water to San Bernardino Valley for groundwater recharge 98% N/A N/A XX IV-C Tipping Fees collected from outside haulers $3.2M N/A N/A XX IV-C Comply with AQMD fence line odor monitoring violations (30 ppb)0 N/A N/A XX IV-C Number of validated noise ordinance (Highland) violations.0 XX XX XX *Pursuant to Division 7, Chapter 9, Section 13627 of the Water Code an Operator with a water treatment certification may operate a wastewater treatment plant of the appropriate grade, the District has hired two Water Treatment certified operators for SNRC Operator positions. EAST VALLEY WATER DISTRICT | 209 Water Reclamation Program Budget Detail 20%SIGNIFICANT CHANGES IN PROGRAM BUDGET • Added a new Wastewater Treatment Plant Operator position. • Decreased Treatment Services budget due to completing transition of wastewater flows to the SNRC. • In addition, the Materials & Supplies, Tools, and Contract Services budgets have also increased. PROGRAM BUDGET ALLOCATION • $7,739,000 FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 715,218 $ 750,000 $ 710,333 $ 1,071,000 $ 321,000 43% 5103 Overtime 7,873 50,000 172,529 125,000 75,000 150% 5104 Standby - 55,000 107 55,000 - 0% 5200 Benefits 141,967 404,000 342,771 481,000 77,000 19% OPERATING EXPENSES 6201 Materials & Supplies 6,920 68,000 68,000 91,000 23,000 34% 6202 Tools 1,746 30,000 30,000 36,000 6,000 20% 6203 Office Supplies 265 10,000 10,000 10,000 - 0% 6204 Chemicals - 510,000 200,000 650,000 140,000 27% 6301 Contract Services 9,450 1,032,000 1,032,000 3,770,000 2,738,000 265% 6303 Printing & Publishing 970 1,000 - 1,000 - 0% 6304 Legal Services 1,960 5,000 - - (5,000)-100% 6305 Treatment Services 8,531,612 6,300,000 6,162,411 - (6,300,000)-100% 6307 Uniforms 2,094 8,000 8,000 8,000 - 0% 6401 Utilities 59 1,000 4,147 1,000 - 0% 6402 Telephone - 3,000 1,671 3,000 - 0% 6403 Electricity 178,308 1,500,000 1,300,000 1,400,000 (100,000)-7% 6404 Fuel - 16,000 16,000 16,000 - 0% 6405 Permits - 17,000 17,000 - (17,000)-100% 6406 Postage - 1,000 - 1,000 - 0% 6501 Membership & Dues 602 12,000 4,975 12,000 - 0% 6502 Professional Development 2,295 5,000 5,000 5,000 - 0% 6504 Meetings 121 2,000 2,000 2,000 - 0% 6505 Employee Recognition - 1,000 - 1,000 - 0% WATER RECLAMATION TOTAL $ 9,601,460 $ 10,781,000 $10,086,944 $ 7,739,000 $(3,042,000)-28% FY 2024-25 BUDGET | 210 [PAGE LEFT BLANK] Intentionally EAST VALLEY WATER DISTRICT | 211 FA C I L I T I E S M A I N T E N A N C E FACILITIES MAINTENANCE Program Summaries Section Facilities Maintenance ensures District facilities meet standards for aesthetics, functionality, and operation. FY 2024-25 BUDGET | 212 • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Program Summaries Contents PROGRAM PERSONNEL Facilities and Fleet Supervisor 1 Facilities Maintenance Worker II 1 Facilities Maintenance Worker I 1 Total Full-Time 3 PROGRAM STRUCTURE GENERAL MANAGER/CEO OPERATIONS MANAGER FACILITIES AND FLEET SUPERVISOR FACILITIES MAINTENANCE WORKER II FACILITIES MAINTENANCE WORKER I DIRECTOR OF ENGINEERING & OPERATIONS GOALS OBJECTIVES 1 Evaluate and Plan Improvements/ Demolition of West-End Inventory Storage Facilities (Del Rosa and Plant 39) 1. Contract for construction of a 3,200 sq. ft. storage building at Plant 39. 2. Work with IT to implement security cameras, access controls, and alarms. 3. Remove former office trailers located at the Del Rosa site to prepare for demolition and cleanup. 2 Continue Phased Upgrades and Rehabilitation of District Facilities 1. Develop a comprehensive site improvement project list. 2. Contract for painting the building at Plant 33. 3. Insulate Plant 59 building. 4. Complete the HVAC project by removing swamp coolers and sealing wall openings at Plants 39, 142, and 149. 5. Continue to improve energy efficiency of pump houses and other Plant buildings through lighting upgrades, insulation, and weatherstripping. 3 Assess Security Needs at SNRC, District Headquarters, and Plant 134 1. Determine the most cost-effective solution for physical security at all three sites. 2. Enhance alarm system for building on Administration side of the SNRC. Program Summary FACILITIES MAINTENANCE Facilities Maintenance is responsible for the maintenance of all District facilities. The District has several locations throughout the 30.1 square mile service area for operating the utility systems. The Program’s oversight includes administration buildings, water facilities, a water reclamation facility (SNRC), District-owned vacant properties, and easements. The purpose of this Program is to mitigate expenses by maintaining a complex facilities management system to achieve Program goals. EAST VALLEY WATER DISTRICT | 213 FY 2024-25 BUDGET | 214 FY 2023-24 Accomplishments Goal One Completed Site Improvements at the Del Rosa Facility • Enhanced site security by upgrading doors and locks on the existing warehouse. Goal Two Continued Phased Upgrades and Rehabilitation of District Facilities • Upgraded camera and alarm system at Treatment Plant. • Determined the most cost-effective solution for physical security at various sites. • Installed sound dampening material at SNRC. Goal Three Assessed Security Needs at SNRC, District Headquarters, and Plant 134 • Enhanced alarm system for building on Administration side of the SNRC. • Created new security guard schedule at SNRC and District Headquarters. • Completed installation of security glass on Customer Service counter at SNRC. Other Accomplishments • Coordinated installation of Tesla battery at District Headquarters. • Installed two HVAC units in electrical room at Plant 134. • Completed RFP for District Landscaping services. LEVELS OF SERVICE The Facilities Maintenance Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Dedicate Efforts Toward System Maintenance and Modernization (IV-C) • Identify Opportunities to Optimize Natural Resources (I-A) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2021-22 FY 2022-23 FY 2023-24 IV-C Close all service work orders timely <30 Days <30 Days <30 Days <30 Days IV-C Systematically rehabilitate buildings at Plant sites (paint, roof, general repairs)*2 3 2 2 IV-C Complete security fencing upgrades at Plant sites*1 1 1 2 I-A Identify and conduct energy efficiency measures at Plant facilities*2 1 1 2 *New KPI metric beginning in FY 2021-22. EAST VALLEY WATER DISTRICT | 215 Facilities Maintenance Program Budget Detail FY 2022-23 Actuals FY 2023-24 Budget FY 2023-24 Projected FY 2024-25 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 231,473 $ 219,000 $ 208,033 $ 304,000 $ 85,000 39% 5103 Overtime 17,966 14,000 11,256 14,000 - 0% 5200 Benefits 121,289 123,000 119,880 162,000 39,000 32% ADMINISTRATION OPERATING EXPENSES 6201 Materials & Supplies 113,278 40,000 69,734 40,000 - 0% 6202 Tools 1,732 2,000 2,402 4,000 2,000 100% 6301 Contract Services 836,418 772,000 976,053 772,000 - 0% 6306 Rents & Leases 17,979 20,000 28,750 20,000 - 0% 6307 Uniforms 8,723 11,000 7,561 11,000 - 0% 6311 Landscape Services 118,801 131,000 136,492 131,000 - 0% 6312 Janitorial Services 171,213 144,000 125,582 144,000 - 0% 6401 Utilities 46,402 37,000 37,720 37,000 - 0% 6402 Telephone 23,235 25,000 24,853 25,000 - 0% 6403 Electricity 204,950 290,000 239,276 290,000 - 0% 6403 Professional Development - 3,000 - 3,000 - 0% SOURCE OF SUPPLY/WELLS OPERATING EXPENSES 6201 Materials & Supplies 1,395 3,000 1,999 3,000 - 0% 6301 Contract Services 16,602 34,000 31,661 34,000 - 0% 6311 Landscape Services 83,336 40,000 73,646 40,000 - 0% 6402 Telephone 929 1,000 1,032 1,000 - 0% PUMPS AND BOOSTERS OPERATING EXPENSES 6201 Materials & Supplies 216 3,000 - 3,000 - 0% 6301 Contract Services 8,152 5,000 - 5,000 - 0% 6311 Landscape Services 33,594 35,000 28,728 35,000 - 0% TREATMENT OPERATING EXPENSES 6201 Materials & Supplies 6,109 10,000 1,088 10,000 - 0% 6301 Contract Services 30,779 22,000 15,507 25,000 3,000 14% 6311 Landscape Services 36,283 27,000 36,372 27,000 - 0% 6312 Janitorial Services 1,800 2,000 101 2,000 - 0% 6401 Utilities 1,265 10,000 3,103 10,000 - 0% 6402 Telephone 25,916 30,000 29,976 30,000 - 0% FACILITIES MAINTENANCE TOTAL $ 2,159,835 $2,053,000 $ 2,210,805 $ 2,182,000 $ 129,000 6% FY 2024-25 BUDGET | 216 6%SIGNIFICANT CHANGES IN PROGRAM BUDGET • Added a new Facilities Maintenance Worker position. PROGRAM BUDGET ALLOCATION • $2,182,000 EAST VALLEY WATER DISTRICT | 217 FL E E T M A I N T E N A N C E FLEET MAINTENANCE Program Summaries Section Fleet Maintenance ensures the proper function of vehicles and equipment used in the maintenance of the water and wastewater system. FY 2024-25 BUDGET | 218 • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Program Summaries Contents PROGRAM PERSONNEL Fleet Maintenance Coordinator 1 Total Full-Time 1 PROGRAM STRUCTURE GENERAL MANAGER/CEO OPERATIONS MANAGER FACILITIES AND FLEET SUPERVISOR FLEET MAINTENANCE COORDINATOR DIRECTOR OF ENGINEERING & OPERATIONS GOALS OBJECTIVES 1 Assess Future Operations of Fleet Management 1. Enhance service orders in the Fleet Maintenance module within Tyler’s Energov Asset Management (EAM) software. 2. Continue installation of four Electric Vehicle (EV) charging stations for pool vehicles. 2 Continue to Implement the Air Quality Management Program 1. Manage all air quality regulations for AQMD and California Air Resources Board (CARB). 2. Transmit emissions data to the Bureau of Automotive Repair (BAR) using Network Fleet devices. 3 Gain Understanding of New Legislation Affecting the Fleet Maintenance Program 1. Research and understand fleet regulations. 2. Contract vendor to ensure District is in compliance with zero emission regulations. Program Summary FLEET MAINTENANCE Fleet Maintenance is responsible for the preventative maintenance program for all District vehicles and heavy equipment. This includes the procurement of fleet items and maintaining compliance with State and Federal air quality rules and regulations. This program includes partnership with local charitable organizations in need of a vehicle to help continue their mission. The District fleet is comprised of light and heavy-duty utility trucks for water and wastewater crew members to maintain District infrastructure. The heavy equipment category of the fleet includes large, specialized equipment for routine maintenance and inspection of the water distribution, wastewater collection, and treatment systems. EAST VALLEY WATER DISTRICT | 219 FY 2023-24 Accomplishments Goal One Assessed Future Operations of Fleet Management • Trained new Fleet Maintenance Coordinator. • Procured new vendor for generator fuel delivery. • Installed EV charging stations for pool vehicles. Goal Two Continued to Implement the Air Quality Management Program • Managed all air quality regulations for AQMD and CARB. • Transmitted emissions data to the Bureau of Automotive Repair (BAR) using new Network Fleet devices. Goal Three Enhanced the Vendor-Managed Fleet Maintenance Program • Completed an RFP for mobile maintenance. • Provided a list of pre-approved safety repairs and replacements for the RFP. • Contracted with a vendor to provide detailing for specialized equipment. • Executed a new on-call fleet maintenance contract. LEVELS OF SERVICE The Fleet Maintenance Program has three KPI metrics that are associated with the District’s Goals and Objectives of: • Develop Projects and Programs to Ensure Safe and Reliable Services (IV-A) • Dedicate Efforts toward System Maintenance and Modernization (IV-C) The program’s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS CHANGES Agency Goal Key Performance Indicator Target FY 2021-22 FY 2022-23 FY 2023-24 IV-A Ensure vehicles and equipment are evaluated and replaced on schedule 80% of Net Asset Value 100%100%100% IV-C Percent of vehicles pass annual D.O.T. inspection 100%100% 100%N/A IV-A Number of vehicle/equipment units replaced 4 2 2 4 FY 2024-25 BUDGET | 220 EAST VALLEY WATER DISTRICT | 221 Fleet Maintenance Program Budget Detail 2%SIGNIFICANT CHANGES IN PROGRAM BUDGET • Increased Contract Services budget for heavy equipment maintenance and car wash vendor for District vehicles. PROGRAM BUDGET ALLOCATION • $906,000 FY 2021-22 Actuals FY 2022-23 Budget FY 2022-23 Projected FY 2023-24 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 98,525 $ 100,000 $ 87,776 $ 105,000 $ 5,000 5% 5103 Overtime 1,099 3,000 6,280 3,000 - 0% 5200 Benefits 21,643 41,000 30,467 32,000 (9,000)-22% OPERATING EXPENSES 6201 Materials & Supplies 152,360 160,000 198,663 160,000 - 0% 6202 Tools 13,792 15,000 21,333 15,000 - 0% 6203 Office Supplies 52 5,000 448 5,000 - 0% 6301 Contract Services 280,928 190,000 183,371 300,000 110,000 58% 6307 Uniforms 1,804 1,000 1,142 1,000 - 0% 6402 Telephone 1,079 1,000 472 1,000 - 0% 6404 Fuel 236,962 240,000 211,074 280,000 40,000 17% 6501 Memberships & Dues - 3,000 - 3,000 - 0% 6502 Professional Development - 1,000 - 1,000 - 0% FLEET MAINTENANCE TOTAL $ 808,244 $ 760,000 $ 741,026 $ 906,000 $ 146,000 19% FY 2024-25 BUDGET | 222 ac t s a s a c o m m u n i c a t i o n d e v i c e th e a n n u a l b u d g e t The District's long-term planning efforts includes consideration of the age, condition, and efficiency of infrastructure used to deliver services to its customers. capital budgetfy 2024-25 EAST VALLEY WATER DISTRICT | 223 CA P I T A L B U D G E T • Capital Budget Overview • Capital Improvement Projects • Infrastructure Accomplishments Capital Budget Contents FY 2024-25 BUDGET | 224 CAPITAL BUDGET OVERVIEW The District includes two types of capital expenditures in its Capital Budget. The two types are, 1) routine purchases and replacement of assets, referred to as Capital Outlay, and 2) non-routine construction project expenditures that are part of the District’s Capital Improvement Program. The District’s FY 2024-25 Capital Budget contains $8,843,000 in total capital expenditures. Of this amount, $1,453,000 are Capital Outlay, which typically include requests to replace heavy equipment, computer and office equipment, and to contract for infrastructure planning studies. The remaining proposed capital expenditures of $7,390,000 are current year (Year 1) costs pertaining to projects shown in the District’s Capital Improvement Program, presented in greater detail in the remainder of this section. With the District commencing operations at the new SNRC water reclamation plant in spring of 2024, care has been taken to not overextend financial and human resources by committing to starting multiple new projects in the upcoming Fiscal Year. Projects with external funding or regulatory requirements, or that are ‘shovel ready’, are moving forward, but the successful startup of the SNRC is a top priority. A summary of the proposed FY 2024-25 Capital Budget is shown below. Capital Budget Summary Capital Outlay The District defines Capital Outlay expenditures as an individually significant acquisition of capital assets (not involving construction) that have expected useful lives of more than two years and have a heavy equipment cost of $5,000 or more. This threshold is applied at the individual asset level. EAST VALLEY WATER DISTRICT | 225 Capital Outlay (Routine) Capital Improvement Program Infrastructure Upgrades / Technology Enhancements $ 530,000 Automated Metering Enhancements $ 150,000 Facility Improvements / Security 270,000 Storage Tank / Reservoir Upgrades & Rehabs 1,660,000 Water Quality / Environmental Studies 375,000 Plant 101 - Rehab Hydro System 900,000 Equipment Acquistion 278,000 Pipeline Upgrades & Valve Replacements 700,000 Plant 129 Well Design & Contruction 3,000,000 General Facilities Rehab / Relocation 450,000 Plant 39 Warehouse / Storage 380,000 Emergency Off-Spec. Pumping Program 150,000 TOTAL CAPITAL OUTLAY $ 1,453,000 TOTAL CIP EXPENDITURES $ 7,390,000 FY 2024-25 BUDGET | 226 Each year as part of the budget process, Program Managers and Supervisors compile and submit a list of Capital Outlay requests for consideration. The requests are reviewed and prioritized by management based on the assessment of need and the amount of funding available. Funding for Capital Outlay is paid out of the operating revenue from the fund (water, wastewater or water reclamation) that will benefit from use of the capital item. Items that benefit all funds are allocated accordingly. FY 2024-252024-25 CAPITAL OUTLAY Capital Improvement Program and Prioritization The District’s CIP is a five-year planning schedule with the first year (Year 1) adopted as part of the Capital Budget for the upcoming fiscal year. A project included in the District’s CIP is an individually significant construction project with a cost of more than $25,000, and either creates a new capital asset, improves an existing asset (increases its service capacity, etc.), or significantly extends an asset’s expected useful life. The Engineering Program is responsible for maintaining the District’s Capital Improvement Program and consults various sources for project planning. The primary sources for these planning efforts are the District’s Water Master Plan and Wastewater Collection System Master Plan — both were updated during FY 2018-19. The Master Plans identify the infrastructure improvements needed to serve a growing population. In addition, each project being considered must meet one or more of the following criteria: • Preservation of public health and water quality. • Improvements required as a result of local, State or Federal legislation/mandates. • Reduction of current maintenance expenditures and avoidance of costly future rehabilitation. • Preservation of existing facilities/infrastructure. • Positive impacts on customers. • External funding (grant/debt proceeds) has been secured for specific project. Program Water Wastewater Water Reclamation Total FUNDED BY OPERATING REVENUE 2100 Emergency Plan Updates $ 100,000 $ 50,000 $ - $ 150,000 2200 Website Redesign 100,000 50,000 - 150,000 3200 Hardware Replacements 35,000 - - 35,000 3200 Phone System 70,000 30,000 - 100,000 3200 District Headquarters Cameras 56,000 24,000 - 80,000 4000 Engineering Plotter 14,000 6,000 - 20,000 4000 Upper SAR HCP 160,000 - - 160,000 5000 SCADA Radios 50,000 25,000 - 75,000 5100 Plant 134 Turbidity Meters and Clean-in-Place Equipment 150,000 - - 150,000 5200 Sourcewater Assessments 150,000 - - 150,000 6300 Salt Mitigation Feasibility Study - - 65,000 65,000 6300 Golf Cart - - 18,000 18,000 7000 Fencing at District Headquarters 133,000 57,000 - 190,000 7100 Plant 39 Forklift 80,000 - - 80,000 7100 Trailer Mounted Pump 30,000 - - 30,000 TOTAL CAPITAL OUTLAY $ 1,128,000 $ 242,000 $ 83,000 $ 1,453,000 Capital Budget Overview EAST VALLEY WATER DISTRICT | 227 For FY 2024-25, the District has proposed the use of operating revenue, reserves, and a loan from the California Department of Water Resources to fund current year phases of Capital Improvement Program projects for $7,390,000 – total project costs for the projects in process are approximately $69.97 million over the next five years. The names of the projects funded, and the reasons for their prioritization this year include: The District completed installation of remote-read meters for all customer accounts in 2021. Some read captures have been inconsistent, so staff is proposing an additional data collector tower and a new mobile collector, as well as the addition of remote read meters on commercial fire services to detect unauthorized usage through these connections. Total cost for FY 2024-25 is proposed at $150,000. This project is prioritized to mitigate the need for staff to manually confirm/take reads when an AMI system has been installed. Automated Metering Infrastructure (AMI) Enhancements The District has created a priority list for the systematic rehabilitation of existing tanks to ensure their dependability and years of future service. A 0.5 million gallon storage tank at the District’s Plant 56 is proposed for recoating in FY 2024-25 at an estimated cost of $1,000,000 to be funded by water operating revenue. This project is a priority as it proactively addresses potential public health and safety concerns. Storage Tank Rehabilitation A hydropneumatic tank and booster station, that serves residents living at an elevation where water cannot be delivered by gravity, needs to be replaced. The design for the work has been completed so construction work is being proposed for FY 2024-25 at an estimated cost of $900,000. This project is a priority as it solves a potential health and safety issue for the residents it serves. Prioritizing this project ensures the continued functionality and reliability of the North Fork Pipeline, addressing segments that have not seen improvements in several decades. This proactive approach prevents potential infrastructure failures and service disruptions; maintaining water supply reliability. Repairing or replacing segments of the pipeline that are reaching the end of their useful service life reduces the risk of leaks, breaks, or other failures. This mitigates potential water supply interruptions, property damage, and safety hazards, safeguarding both infrastructure and communities. North Fork Pipeline RehabilitationPlant 101 Prioritizing the seismic retrofitting of existing storage reservoirs enhances EVWD’s water system resilience against seismic events, ensuring reliability and safety, especially in earthquake-prone areas. Aligned with the District’s 2019 Water System Master Plan, the project addresses vulnerabilities and follows best practices. Retrofitting reduces structural risks, minimizing disruptions, property damage, and safety hazards. Supported by a FEMA Hazard Mitigation Grant Program, it allows effective use of external funding, optimizing the project’s impact and cost-effectiveness. Reservoir Seismic Retrofits This project addresses concerns related to water scarcity and ensures continued access to groundwater resources. Prioritizing this project helps mitigate the impacts of droughts or water shortages on the community as well as enhancing the reliability of the water supply by diversifying water sources. This reduces dependency on surface water sources that may be susceptible to drought or contamination. Implementing this project proactively may be more cost-effective than reactive measures during water scarcity events. By investing in a new groundwater production well now, the District can potentially avoid higher costs associated with emergency response measures in the future. Plant 129 Well Design & Construction FY 2024-25 BUDGET | 228 The following Capital Improvement Projects section includes further detail for each of the projects that have been proposed for funding in FY 2024-25. Impact of Capital Improvement Program Project Investments on Operating Budgets The capital projects described in this section will have varying impacts on future operating expenses, both in increased costs and cost savings. The SNRC will have both operational costs and new revenue streams. Proposed treatment processes at the District’s Surface Water Treatment Plant will allow the District to run the plant at higher capacity, to fully utilize Santa Ana River water though the North Fork pipeline. The SNRC will result in a major shift of costs, from contracted treatment services to costs associated with owning and operating a District facility such as labor, materials, contract services, and other operating costs. At the same time, the inclusion of solid waste digesters at the facility will allow the District to tap into other revenue streams such as solid waste carrier tipping fees and recycled water revenue. Not included here, but discussed in the Debt section of this document, is a significant increase in debt service related to the SNRC. The following schedule provides an estimate of the effect of capital expenditures on future operations: The District has scheduled the replacement of one water main pipeline to be completed by District maintenance crews. Estimated cost for this project is $300,000. The project is designated as priority as it will reduce future responses for leak calls and increase fire flows which are directly related to public health and safety. The District has identified approximately 105 gate valves that are frozen or broken and therefore cannot be used for emergency shutdowns. This project proposes to replace 40 defective valves during FY 2024-25 at an estimated cost of $300,000 and has been given priority status due to public health and safety concerns in the event of an emergency situation. Gate Valve Replacements Water Main Replacements The proposed warehouse at Plant 39 addresses the need for improved infrastructure by providing a dedicated space for storing water distribution parts, crucial for efficient maintenance and repair. A centralized location streamlines storage and retrieval, enhancing operational efficiency, leading to faster response times and reduced downtime. This consolidation can also yield cost savings by eliminating multiple storage sites and reducing emergency shipments. Furthermore, the inclusion of an on-site restroom can save time and labor costs by minimizing travel for field staff. The 8-million-gallon emergency storage basin next to Weaver Basins was designed to use a trailer- mounted pump to return water from the basin to the sewer main in Greenspot Road. This project involves the potential construction of permanent pumping facilities to provide this function. Weaver Basins Emergency Storage Pumping Improvements Plant 39 Warehouse These line items involve various projects such as security upgrades and improving the aesthetics of buildings at plant sites; it also provides a budget for relocating facilities in conjunction with City street or storm drain improvement projects. Planned expenditures for FY 2024-25 are $450,000 to be funded by water operating revenue. These funds are kept available in the event of a notification by another agency. General Facilities Rehabilitation / Relocation Annual Impact on Operations Nature of Impact Automated Metering Enhancements $ (30,000) Reduced staffing commitments (OT) Storage Tank / Reservoir Upgrades & Rehabs (1,000,000) Extends useful life / avoids new purchase Plant 101 - Rehab Hydro System (1,000,000) Extends useful life / water supply reliability Pipeline Upgrades & Valve Replacements (100,000) Reduced staffing needs for repairs Plant 129 Well Design & Contruction 2,500,000 New well needed after required to place 4 offline Plant 39 Warehouse / Storage (250,000) Reduce energy cost and staffing commitments Weaver Basins Emergency Storage Pumping Improvements 100,000 Reduced staffing commitments (OT) TOTAL CIP EXPENDITURES $ 220,000 Capital Budget Overview EAST VALLEY WATER DISTRICT | 229 CAPITAL EXPENDITURE IMPACT OVERVIEW CIP FIVE-YEAR PROGRAM SCHEDULE (FY 2025-292025-29) Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total WATER Meter Replacement Program $ 150,000 $ 200,000 $ 200,000 $ 200,000 $ - $ 750,000 Canal Zone Storage Reservoir - 1,600,000 10,000,000 8,000,000 - 19,600,000 Plant 134 Membrane Replacement - - 350,000 350,000 350,000 1,050,000 Tank / Reservoir Rehabilitation 1,000,000 1,070,000 1,144,900 1,225,043 1,310,796 5,750,739 Plant 101 Hydro Tank Rehabilitation 900,000 - - - - 900,000 Plant 134 Enhancements SAR Pretreatment - 100,000 - - - 100,000 North Fork Pipeline Rehabilitation 100,000 100,000 - - - 200,000 Reservoir Seismic Retrofits 660,000 2,200,000 2,000,000 2,000,000 - 6,860,000 Water Main Replacements - Seismic Mitigation - 10,000,000 7,000,000 -- 17,000,000 Plant 129 Well Design & Construction 3,000,000 3,000,000 - - - 6,000,000 New Well - 400,000 1,500,000 3,000,000 - 4,900,000 Water Mains Elmwood Road & Dogwood Street 300,000 - - - 2,000,000 2,300,000 Facility Relocations 100,000 100,000 100,000 100,000 100,000 500,000 Facility Relocation - Baseline Bridge Water Main - - 1,000,000 - - 1,000,000 Facility Rehabilitations 350,000 75,000 75,000 75,000 75,000 650,000 Plant 39 Warehouse Building 380,000 - - - - 380,000 FY 2024-25 BUDGET | 230 Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total Santa Ana River Watershed Sanitary Survey - - 80,000 - - 80,000 Gate Valve Replacement Program 300,000 - - - - 300,000 WATER SUBTOTAL $ 7,240,000 $ 18,845,000 23,449,900 $ 14,950,043 $ 3,835,796 $ 68,320,739 RECLAMATION Weaver Basins Emergency Storage Pumping Improvements 150,000 - - - - 150,000 Replace Diffusers and UV Lamps - - 500,000 500,000 500,000 1,500,000 RECLAMATION SUBTOTAL $ 150,000 $ - $ 500,000 $ 500,000 $ 500,000 $ 1,650,000 TOTAL $ 7,390,000 $ 18,845,000 $ 23,949,900 $ 15,450,043 $ 4,335,796 $ 69,970,739 CIP FIVE-YEAR FUNDING SCHEDULE (FY 2025-292025-29) Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total Water Operating Revenue $ 558,000 $ 6,145,000 $ 4,699,900 $ 3,950,043 $ 3,835,796 $ 19,188,739 Water Replacement Reserve 3,022,000 - - - - 3,022,000 Water Capacity Fees 3,000,000 3,000,000 - - - 6,000,000 Grants 660,000 9,700,000 7,250,000 - - 17,610,000 Bond / Debt Proceeds - - 11,500,000 11,000,000 - 22,500,000 Reclamation Operating Revenue 150,000 - 500,000 500,000 500,000 1,650,000 TOTAL $ 7,390,000 $ 18,845,000 $ 23,949,900 $ 15,450,043 $ 4,335,796 $ 69,970,739 CIP FY 2024-25 2024-25 PROPOSED FUNDING Water Fund Operating Revenue Water Reclamation Fund Operating Revenue Grants/ Loans Other Fund Project Total WATER Meter Replacement Program $ 150,000 $ -$ -$ 150,000 Tank / Reservoir Rehabilitation -- 1,000,000 1,000,000 Plant 101 Hydro Tank Rehabilitation -- 900,000 900,000 North Fork Pipeline Rehabilitation 100,000 -- 100,000 Reservoir Seismic Retrofits -- 660,000 660,000 Plant 129 Well Design & Construction -- 3,000,000 3,000,000 Water Main Replacement - Elmwood Road & Dogwood Street -- 300,000 300,000 Facility Relocations 100,000 -- 100,000 Facility Rehabilitations 208,000 - 142,000 350,000 Plant 39 Warehouse Building -- 380,000 380,000 Gate Valve Replacement Program -- 300,000 300,000 WATER SUBTOTAL $ 558,000 $ - $ 6,682,000 $ 7,240,000 RECLAMATION Weaver Basins Emergency Storage Pumping Improvements - 150,000 - 150,000 RECLAMATION SUBTOTAL $ - $ 150,000 $ - $ 150,000 TOTAL $ 558,000 $ 150,000 $ 6,682,000 $ 7,390,000 Capital Budget Overview EAST VALLEY WATER DISTRICT | 231 Capital planning involves identifying current and future needs and prioritizing them through an assessment process. FY 2024-25 BUDGET | 232 ex e c u t e s s t r a t e g i c i n i t i a t i v e s th e a n n u a l b u d g e t C I P P R O J E C T S EAST VALLEY WATER DISTRICT | 233 CAPITAL IMPROVEMENTPROJECTS Capital Budget Section Projects included in the CIP are individually significant construction projects with a cost of more than $25,000, and either creates a new capital asset, improves an existing asset (increases its service capacity, etc.), or significantly extends an asset's expected useful life. FY 2024-25 BUDGET | 234 • Meter Replacement Program • Tank/Reservoir Rehabilitation • Plant 101 Hydro Tank Rehabilitation • North Fork Pipeline Rehabilitation • Reservoir Seismic Retrofits • Plant 129 Well Design & Construction • Water Main Replacement Elmwood & Dogwood Road • Gate Valve Replacement Program • Plant 39 Warehouse Building • Facility Relocations • Facility Rehabilitations • Weaver Basins Emergency Storage Pumping Improvements Capital Improvement Projects EAST VALLEY WATER DISTRICT | 235 [PAGE LEFT BLANK] Intentionally FY 2024-25 BUDGET | 236 Capital Improvement Program METER REPLACEMENT PROGRAM The installation of Advanced Metering Infrastructure (AMI) hardware, software, and meters throughout the entire District was completed in April 2021. Since that time, District staff has been troubleshooting and monitoring performance of the AMI system, and in doing so has determined that data capture and communication could be enhanced by the installation of an additional tower and data collector in the central west area of the District at Plant 132. $150,000 has been included in the capital budget for this work in FY 2024-25. Start Date: July 2024 Estimated Completion: June 2025 Project Type: Water Location: All Service Connections throughout the District Project Manager: Meter Services/Operations Total Project Cost: $150,000 Prior Years Budget: N/A Capital Requests: Previously Programmed Project Operating Budget Impact ADDITIONAL STAFF SALARIES The installation of an additional collector should reduce the amount of staff time required to collect manual reads of meters that cannot be picked up by the automated metering infrastructure-estimated at 30 hours per month. The addition of automated meters on hydrants will help to explain water losses, whether use of water through the hydrants, intentional misuse, or use for fire suppression. DEBT SERVICE N/A MAINTENANCE/UTILITIES Minimal increase in annual telecommunication costs of $5,400. Meter Replacement Program EAST VALLEY WATER DISTRICT | 237 Project Cost Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) - - - - - - Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials 150,000 200,000 200,000 200,000 - 750,000 District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 150,000 $ 200,000 $ 200,000 $ 200,000 $ - $ 750,000 Project Funding Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total FINANCING SOURCES Operating Revenue $ 150,000 $ 200,000 $ 200,000 $ 200,000 $ - $ 750,000 Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 150,000 $ 200,000 $ 200,000 $ 200,000 $ - $ 750,000 Benefits to the Community Provide customers with reliable meter information. Enhance operations by digitizing consumption information. Help identify water leaks and losses sooner. FY 2024-25 BUDGET | 238 Capital Improvement Program TANK/RESERVOIR REHABILITATION The District has completed a comprehensive, multi-year water tank inspection program and received an engineering report identifying and prioritizing tank rehabilitation projects. Many of the projects present significant challenges where there is no redundant storage capacity, limiting projects to certain times of year when demand for water is low, and requiring alternate methods for water distribution. Start Date: October 2024 Estimated Completion: June 2025 Project Type: Water Location: 3808 E. Citrus Street San Bernardino, CA Project Manager: Engineering Total Project Cost: $1,000,000 Prior Years Budget: Costs from Previous Tank Rehabilitations Do Not Accumulate Capital Requests: New Project The District has pre-qualified a list of three contractors to provide bids as the reservoir/plant to be rehabilitated in the upcoming year has been identified. In October 2019 the District awarded a contract to Crosno Construction for the rehabilitation of Tank 39-1; that project was completed in May 2020. In FY 2020- 21, the District entered into a contract for rehabilitation of the tank at Plant 108, a 2 million gallon reservoir serving the District’s Foothill zone. This year’s project is a 0.5 million gallon reservoir at District Plant 56. A contractor will be selected to execute the necessary rehabilitations to extend the reservoir’s useful service life. The estimated FY 2024-25 cost for this project $1,000,000. Operating Budget Impact This project requires no additional staff, debt service, or maintenance/utilities. Tank/Reservoir Rehabilitation EAST VALLEY WATER DISTRICT | 239 Project Cost Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ 100,000 $ 107,000 $ 115,000 $ 123,000 $ 132,000 $ 577,000 Land and Land Preparation - - - - - - Construction (Contract) 900,000 963,000 1,029,900 1,102,043 1,178,796 5,173,739 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 1,000,000 $ 1,070,000 $ 1,144,900 $ 1,225,043 $ 1,310,796 $ 5,750,739 Project Funding Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ 1,070,000 $ 1,144,900 $ 1,225,043 $ 1,310,796 $ 4,750,739 Replacement Reserve 1,000,000 - - - - 1,000,000 Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 1,000,000 $ 1,070,000 $ 1,144,900 $ 1,225,043 $ 1,310,796 $ 5,750,739 Benefits to the Community Help prolong the tank’s life to continue serving the community. Install anti-corrosion system and make repairs to maintain tank reliability. Identify and assess structural concerns to protect the Plant during an earthquake. FY 2024-25 BUDGET | 240 Capital Improvement Program PLANT 101 HYDRO TANK REHABILITATION The Hydro-pneumatic tank and booster pumps at Plant 101 increase water pressure to 37 homes that are situated at elevations too high to be gravity fed by the plant’s 1.4-million-gallon reservoir; the Hydro tank is the only means of serving these customers with sufficient water pressure. An inspection of Plant 101 revealed that the Hydro Tank and booster pumps need to be replaced, but those tasks were deferred until an on-site emergency generator could be installed. Start Date: July 2021 Estimated Completion: June 2025 Project Type: Water Location: 3045 N. Mountain Top Drive Highland, CA 92346 Project Manager: Engineering Total Project Cost: $1,896,000 Prior Years Budget: $996,000 Capital Requests: Previously Programmed Project With the generator now in place, and design for the tank and boosters complete, replacement of the tank and boosters can be scheduled. Project was out for bid during FY 2023-24 and staff proposes to complete these replacements during FY 2024-25. An estimated cost of $900,000 has been included in the FY 2024-25 budget for this project. Operating Budget Impact ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE/UTILITIES N/A Plant 101 Hydro Tank Rehabilitation EAST VALLEY WATER DISTRICT | 241 Project Cost Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 900,000 - - - - 900,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 900,000 $ - $ - $ - $ - $ 900,000 Project Funding Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Replacement Reserve 900,000 - - - - 900,000 Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 900,000 $ - $ - $ - $ - $ 900,000 Benefits to the Community Enhance plant operations to maintain service reliability. Facility allows the District to continue meeting the community’s water needs. Allows the District to continue to meet local, State, and Federal system requirements. FY 2024-25 BUDGET | 242 Capital Improvement Program NORTH FORK PIPELINE REHABILITATION Much of the North Fork Pipeline was improved from the 1990s through 2010, however, there are portions in which improvements have not occurred in 50-80 years. The purpose of this project is to fund necessary planning and design for locations along the North Fork Pipeline which are reaching the end of their useful service life and need repair or replacement. This fiscal year’s focus will include a portion of riveted steel pipeline that functions as a syphon crossing Plunge Creek and a portion of damaged reinforced concrete pipe with an irregular section near Carriage Hill and Highland Avenue. Start Date: July 2024 Estimated Completion: June 2025 Project Type: Water Location: Plunge Creek Crossing and East of Carriage Hill Access Box at Highland Avenue Intersection Project Manager: Engineering Total Project Cost: $100,000 Prior Years Budget: N/A Capital Requests: New Project Operating Budget Impact ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE/UTILITIES This is an ongoing maintenance task. Pipelines and appurtenances conveying raw surface water (pretreated). North Fork Pipeline Rehabilitation EAST VALLEY WATER DISTRICT | 243 Project Cost Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ 100,000 $ - $ - $ - $ - $ 100,000 Land and Land Preparation - - - - - - Construction (Contract) 100,000 - - - 100,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 100,000 $ 100,000 $ - $ - $ - $ 200,000 Project Funding Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total FINANCING SOURCES Operating Revenue $ 100,000 $ 100,000 $ - $ - $ - $ 200,000 Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 100,000 $ 100,000 $ - $ - $ - $ 200,000 Benefits to the Community Enhancements to the water distribution system. Allow the District to continue meeting the community’s water needs. Help extend the pipeline’s operating life. FY 2024-25 BUDGET | 244 Capital Improvement Program RESERVOIR SEISMIC RETROFITS 7 RESERVOIRS, PHASE I OF II There are 18 existing storage reservoirs in EVWD’s water system ranging from 0.07 million gallons (MG) to 4 MG in capacity. Per the District’s 2019 Water System Mater Plan, it was recommended that seismic retrofitting be performed on all EVWD tanks. This proposal will cover Phase I of two for a FEMA Hazard Mitigation Grant Program (HMGP) awarded to the District. Phase I portion of the work will consist of engineering analysis, planning, and bid package preparation for the construction of the Phase II portion. Start Date: November 2023 Estimated Completion: June 2025 Project Type: Water Location: Plants 33, 39 and 129 Project Manager: Engineering Total Project Cost: $660,000 (Phase I 100% Grant funding awarded by FEMA and CalOES) Prior Years Budget: N/A Capital Requests: Previously Programmed Project Operating Budget Impact This project requires no additional staff, debt service, or maintenance/utilities. Reservoir Seismic Retrofits EAST VALLEY WATER DISTRICT | 245 Project Cost Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ 60,000 $ - $ - $ - $ - $ 60,000 Land and Land Preparation - - - - - - Construction (Contract) 600,000 2,200,000 2,000,000 2,000,000 - 6,800,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 660,000 $ 2,200,000 $ 2,000,000 $ 2,000,000 $ - $ 6,860,000 Project Funding Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Replacement Reserve - - - - - - Grants/Loans 660,000 2,200,000 2,000,000 2,000,000 - 6,860,000 Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 660,000 $2,200,000 $2,000,000 $ 2,000,000 $ - $ 6,860,000 Benefits to the Community Identify and assess structural concerns to protect the Plant during an earthquake. Allow the District to continue to meet the community’s water needs. Enhance plant operations to maintain a reliable service. FY 2024-25 BUDGET | 246 Capital Improvement Program PLANT 129 WELL DESIGN & CONSTRUCTION The Drought Contingency Plan (DCP) includes a list of mitigation actions needed to protect against potential risks and impacts from drought and to increase flexibility and resiliency. The Priority 1 mitigation actions in the DCP include six projects to drill and equip new groundwater wells. A Site Feasibility for New Groundwater Production Well Technical Memorandum, which is included as part of the DCP, provided a high-level assessment of Plant 129 and determined that the site is suitable for a new production well. This project will design, drill, and equip a new groundwater production well at Plant 129. Start Date: July 2024 Estimated Completion: June 2027 Project Type: Water Location: 7800 Calle Del Rio Highland, CA 92346 Project Manager: Engineering Total Project Cost: $3,000,000 Prior Years Budget: N/A Capital Requests: New Project Operating Budget Impact This project requires no additional staff, debt service, or maintenance/utilities. Plant 129 Well Design & Construction EAST VALLEY WATER DISTRICT | 247 Project Cost Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ 300,000 $ 300,000 $ - $ - $ - $ 600,000 Land and Land Preparation - - - - - - Construction (Contract) 2,700,000 2,700,000 - - - 5,400,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 3,000,000 $ 3,000,000 $ - $ - $ - $ 6,000,000 Project Funding Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees 3,000,000 3,000,000 - - - 6,000,000 Other - - - - - - ANNUAL TOTAL $3,000,000 $3,000,000 $ - $ - $ - $ 6,000,000 Benefits to the Community Enhance plant operations to maintain a reliable service. Allow the District to continue to meet the community’s water needs. Allows the District to continue to meet local, State, and Federal system requirements. FY 2024-25 BUDGET | 248 Capital Improvement Program WATER MAIN REPLACEMENT ELMWOOD ROAD & DOGWOOD STREET This project will replace 1,127 feet of 4” wrapped steel water main in Elmwood Road, starting north from Lynwood Drive and then turning east to connect to the main in Dogwood Street. The new main will consist of 6” ductile iron pipe and will provide two benefits: enhanced fire flow capacity, and access to the pipeline in public right of ways rather than in private property where many sections of the existing main are aligned. Work will be performed in- house by District water maintenance crews and will take approximately three weeks to complete. Start Date: September 2024 Estimated Completion: June 2025 Project Type: Water Location: North of Lynwood Drive and West of Dogwood Street Project Manager: Operations Total Project Cost: $300,000 Prior Years Budget: N/A Capital Requests: New Project Operating Budget Impact This project requires no additional staff, debt service, or maintenance/utilities. Water Main Replacement - Elmwood Road EAST VALLEY WATER DISTRICT | 249 Project Cost Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ 30,000 $ - $ - $ - $ - $ 30,000 Land and Land Preparation - - - - - - Construction (Contract) - - - - 2,000,000 2,000,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials 90,000 - - - - 90,000 District Labor 180,000 - - - - 180,000 Other (Legal) - - - - - - ANNUAL TOTAL $ 300,000 $ - $ - $ - $ 2,000,000 $ 2,300,000 Project Funding Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ 2,000,000 $ 2,000,000 Replacement Reserve 300,000 - - - - 300,000 Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 300,000 $ - $ - $ - $2,000,000 $ 2,300,000 Benefits to the Community Protects health and safety of the community. Replaces water main to prevent a future break. Allows the District to continue to meet the community’s water needs. FY 2024-25 BUDGET | 250 Capital Improvement Program GATE VALVE REPLACEMENT PROGRAM The District’s water distribution pipeline system has approximately 8,000 gate valves which allow damaged / leaking water mains to be isolated while repair work is being performed. These valves must be routinely exercised in order to prevent them from corroding and seizing, rendering them unable to serve their purpose. Even with routine exercising, some valves eventually seize and need to be replaced. Start Date: July 2023 Estimated Completion: June 2025 Project Type: Water Location: Districtwide Project Manager: Operations Total Project Cost: $600,000 Prior Years Budget: $300,000 Capital Requests: Previously Programmed Project There are approximately 105 inoperable or broken valves in the District’s distribution system which the District plans to replace using a combination of in-house and contracted labor. Working from a prioritized list, 40 valves will be selected for replacement in each of the next two years. Operating Budget Impact ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE/UTILITIES There will be no significant change in maintenance costs associated with this replacement program. Gate Valve Replacement Program EAST VALLEY WATER DISTRICT | 251 Project Cost Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 185,000 - - - - 185,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials 25,000 - - - - 25,000 District Labor 90,000 - - - - 90,000 Other (Legal) - - - - - - ANNUAL TOTAL $ 300,000 $ - $ - $ - $ - $ 300,000 Project Funding Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Replacement Reserve 300,000 - - - - 300,000 Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 300,000 $ - $ - $ - $ - $ 300,000 Benefits to the Community Reduce service interruptions during water main leaks or repairs. Enhance the water distribution system to continue providing a reliable service. Repair and extend the useful life of the distribution system. FY 2024-25 BUDGET | 252 Capital Improvement Program PLANT 39 WAREHOUSE BUILDING This project involves building a new metal warehouse building at Plant 39 for the purpose of securely storing water distribution parts on the west end of the service area. The warehouse will facilitate access to parts during repairs and potentially reduce construction time. The building includes a restroom for Field staff. Start Date: July 2024 Estimated Completion: June 2025 Project Type: Water Location: Plant 39 Project Manager: Operations Total Project Cost: $380,000 Prior Years Budget: N/A Capital Requests: New Project Operating Budget Impact ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE/UTILITIES Improved security fencing will help deter intrusion onto District property and vandalism. Plant 39 Warehouse Building EAST VALLEY WATER DISTRICT | 253 Project Cost Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 380,000 - - - - 380,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 380,000 $ - $ - $ - $ - $ 380,000 Project Funding Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Replacement Reserve 380,000 - - - - 380,000 Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 380,000 $ - $ - $ - $ - $ 380,000 Benefits to the Community Reduce service interruption time during system repairs or enhancements. Provide a secure location to store water distribution parts. Enhance operations to maintain efficiency. FY 2024-25 BUDGET | 254 Capital Improvement Program FACILITY RELOCATIONS The District’s service area covers all of the City of Highland, parts of the City of San Bernardino and parts of San Bernardino County. When these agencies plan and construct improvements within their jurisdiction, there are occasionally alignment or location conflicts with existing District facilities. When this occurs, the District is frequently obligated to relocate its facilities. This project budget serves to fund relocation costs as they arise. Start Date: July 2024 Estimated Completion: June 2025 Project Type: Water Location: Districtwide Project Manager: Engineering Total Project Cost: $100,000 (Budgeted Annually) Prior Years Budget: $100,000 Capital Requests: Annual Budget Request Operating Budget Impact This project requires no additional staff, debt service, or maintenance/utilities. Facility Relocations EAST VALLEY WATER DISTRICT | 255 Project Cost Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 100,000 100,000 100,000 100,000 100,000 500,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Project Funding Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total FINANCING SOURCES Operating Revenue $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Benefits to the Community Relocate system facilities to maintain service reliability. Work with local agencies to ensure a smooth transition with minimal service interruptions. Extend the useful life of the distribution system. FY 2024-25 BUDGET | 256 Capital Improvement Program FACILITY REHABILITATIONS This project involves scheduled capital improvements to District facilities that can be performed within a single fiscal year. Improvements planned for FY 2024-25 include upgrade to wrought iron security fencing at various sites throughout the District including Plant 33 and additional Electric Vehicle Chargers at the District Headquarters and SNRC. Start Date: July 2024 Estimated Completion: June 2025 Project Type: Water Location: Districtwide Project Manager: Facilities Maintenance Total Project Cost: $350,000 (Budgeted Annually) Prior Years Budget: $325,000 Capital Requests: Annual Budget Request Operating Budget Impact ADDITIONAL STAFF SALARIES N/A DEBT SERVICE N/A MAINTENANCE/UTILITIES Improved security fencing will help deter intrusion onto District property and vandalism. Facility Rehabilitations EAST VALLEY WATER DISTRICT | 257 Project Cost Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 100,000 100,000 100,000 100,000 100,000 500,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Project Funding Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total FINANCING SOURCES Operating Revenue $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Benefits to the Community Enhance the security of water facilities. Prevent unauthorized access. Extend the useful life of water facilities. FY 2024-25 BUDGET | 258 Capital Improvement Program WEAVER BASINS EMERGENCY STORAGE PUMPING IMPROVEMENTS The 8-million-gallon emergency storage basin next to Weaver Basins was designed to use a trailer-mounted pump to return water from the basin to the sewer main in Greenspot Road. This project involves the potential construction of permanent pumping facilities to provide this function. Start Date: July 2024 Estimated Completion: June 2025 Project Type: Water Reclamation Location: Emergency Storage Basin next to Weaver Basins Project Manager: Meter Services/Operations Total Project Cost: $150,000 Prior Years Budget: N/A Capital Requests: New Project Operating Budget Impact This project requires no additional staff, debt service, or maintenance/utilities. Weaver Basins Emergency Storage Pumping Improvements EAST VALLEY WATER DISTRICT | 259 Project Cost Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 150,000 - - - - 150,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 150,000 $ - $ - $ - $ - $ 150,000 Project Funding Year 1 FY 2024-25 Year 2 FY 2025-26 Year 3 FY 2026-27 Year 4 FY 2027-28 Year 5 FY 2028-29 5-Year Project Total FINANCING SOURCES Operating Revenue $ 150,000 $ - $ - $ - $ - $ 150,000 Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 150,000 $ - $ - $ - $ - $ 150,000 Benefits to the Community Enhance facility operations. Facilitates water pumping for recycling. Provides a more efficient process for placing flows into the source system. su m m a r i z e s c a p i t a l i m p r o v e m e n t s th e a n n u a l b u d g e t FY 2024-25 BUDGET | 260 EAST VALLEY WATER DISTRICT | 261 IN F R A S T R U C T U R E AC C O M P L I S H M E N T S INFRASTRUCTUREACCOMPLISHMENTS Capital Budget Section The budget reflects the District's commitment to allocating resources to meet the needs of its stakeholders. FY 2024-25 BUDGET | 262 EAST VALLEY WATER DISTRICT | 263 INFRASTRUCTURE ACCOMPLISHMENTS Infrastructure improvements represent a significant investment in maintaining a reliable system for the community served by the District. Several Capital Improvement Projects were completed under budget in FY 2023-24 that focused on system improvements for both water and wastewater systems. There were a number of Capital Improvement Projects completed during FY 2023-24 that focused on system improvements for both water and wastewater systems. The District would like to highlight the following:  Plant 134 Membrane Replacement Project Budget: $305,000 Actual Cost: $305,205 Completed: February 2024  Sterling Natural Resource Center Project Budget: $175,000,000 Actual Cost: $181,038,124 Completed: March 2024  Plant 120 Rehabilitation Project Budget: $280,000 Actual Cost: $308,554 Completed: April 2024 hi g h l i g h t s a c c o m p l i s h m e n t s th e a n n u a l b u d g e t FY 2024-25 BUDGET | 264 The budget is formally reviewed each quarter, allowing for an opportunity to take formal budget adjustments to the Governing Board for consideration. glossaryfy 2024-25 EAST VALLEY WATER DISTRICT | 265 G L O S S A R Y • Definitions • Acronyms • Chart of Accounts Glossary Contents FY 2024-25 BUDGET | 266 EAST VALLEY WATER DISTRICT | 267 GLOSSARY Technical terms found in the budget document. Definitions A • Acre Foot: A water measurement equal to 325,851 gallons. - pg. 52 • Advanced Metering Infrastructure: The technology of collecting meter reads via a network. - pg. 18 • Air Quality Management District or South Coast Air Quality Management District: The air pollution agency responsible for regulating stationary sources of air pollution in the South Coast Air Basin, in Southern California. - pg. 207 • American Water Works Association: Established in 1881 and is the largest nonprofit, scientific, and educational association dedicated to managing and treating water. - pg. 23 • Annual Report: A set of U.S. government financial statements comprising of the financial report of a state, municipal, or other governmental entity that complies with the accounting requirements promulgated by the Governmental Accounting Standards Board. - pg. 148 C • California Public Employees’ Retirement System: An agency in the California executive branch that manages pension and health benefits for more than 1.6 million California public employees, retirees, and their families. - pg. 39 • California Special Districts Association: A 501c(6) not-for-profit association that promotes good governance and improved core local services through professional development, advocacy, and other services for independent special districts. - pg. 7 • Capital Outlay and Construction Costs: Capitalized and expenses over the useful life of the asset on a Generally Accepted Accounting Principle basis; shown as a current expenditure on a budget basis. - pg. 39 • Closed Circuit TV: The use of video cameras to transmit a signal to a limited set of monitors. - pg. 201 • Compensated Absence: An expense that reflects the change in related accrued liabilities during the accounting period on the Generally Accepted Accounting Principle basis, but for budget purposes, expense includes anticipated leave time to be used and/or cashed by employees during the fiscal year. - pg. 39 • Cool-Season Turfgrass: Grass species which require 80% replenishment of evapotranspiration. Species do not go dormant during winter months and include tall fescue, ryegrass, bentgrass, and Kentucky bluegrass. - pg. 86 D • Depreciation: Recorded annually to expense the cost of a capital asset over its useful life on a General Accepted Accounting Principle basis but is not contemplated on the budget basis. - pg. 39 FY 2024-25 BUDGET | 268 E • Enterprise Fund: Business-type funds used to report an activity for which a fee is charged to external users for goods or services - pg. 40 F • Fees: Charges for service that are based upon the cost of providing the service. - pg. ii • Fiscal Year: The time frame in which the budget applies. This period is from July 1 through June 30.- pg. i • Full-Time Employee: A measure of effective authorized positions, indicating the percentage of time a position or group of positions is funded. It is calculated by equating 2,080 hours of work per year with the full-time equivalent of one position. - pg. 55 • Fund: An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities, which are segregated for the purpose of carrying on specific activities or attaining certain objectives. - pg. i • Fund Equity: The excess of an entity’s assets over its liabilities; a negative Fund Equity is sometimes called a deficit. - pg. 67 G  • Generally Accepted Accounting Principles: Uniform minimum standards of, and guidelines for external financial accounting and reporting. They govern the form and content of the basic financial statements of an entity. Generally Accepted Accounting Principles (GAAP) encompasses the conventions, rules and procedures necessary to define accepted accounting practices at a particular time. They include not only broad guidelines of general application, but also detailed practices and procedures. The primary authoritative statements on the application of GAAP to state and local governments are Government Accounting Standards Board pronouncements. GAAP provides a standard by which to measure financial presentations. - pg. 39 • Geographic Information System: An organized collection of computer hardware, software and geographic data designed to efficiently capture, store, update, manipulate, analyze, and display all forms of geographically referenced information. - pg. 78 • Governmental Accounting Standards Board: A private, non-governmental organization who is the source of generally accepted accounting principles used by State and Local governments in the U.S. - pg. 39 • Governmental Accounting Standards Board 68: A state or local government employer will report the Net Pension Liability associated with its defined benefit pension plan(s) that is administered through a trust or equivalent arrangement. - pg. 39 • Government Finance Officers Association: Represents public finance officials throughout the United States and Canada. - pg. 6 • Granular Activated Carbon: A highly porous adsorbent material used during the water treatment process. It is used to remove tetrachloroethylene, also known as perchloroethylene (PCE). - pg. 183 • Groundwater: Water that occurs below the surface of Earth. - pg. i H • Hundred Cubic Feet: Water billing measurement equal to 748 gallons. - pg. 49 K • Key Performance Indicator: Monitors progress towards meeting program objectives. - pg. 4 L • Laserfiche: A digital content management software. - pg. 153 • Local Agency Investment Fund: A program administered by the California State Treasurers office to give local agencies and special districts the opportunity to participate in a major portfolio using the investment expertise of the Treasurer’s Office Investment staff. - pg. 88 N • North Fork Water Company: A mutual water company that secures surface water from the Santa Ana River and other available sources for delivery to its shareholders. - pg. 8 Glossary EAST VALLEY WATER DISTRICT | 269 P • Pension Expense: Budgeted based on employer contribution rates assigned by the California Public Employees’ Retirement System. For financial statement reporting, pension expense is recorded based on the change to the net pension liability in accordance with Governmental Accounting Standards Board Statement No. 68. - pg. 39 • Principal Payments: Payments on long-term debt are applied to reduce the outstanding liability on a Generally Accepted Accounting Principle basis; shown as a current expenditure on a budget basis. - pg. 39 • Purchased Water: Imported water purchased from the California State Water Project. - pg. 57 R • Revenue: Income generated by assessments, investments, connection fees, stand-by fees, and user charges. - pg. i • Reserve: An account set aside to meet unexpected costs. - pg. i S • San Bernardino Valley Municipal Water District: Formed in 1954 as a regional agency to plan a long- range water supply for the San Bernardino Valley. - pg. 8 • Section Sign (§): Typographical glyph for referencing numbered sections of a document. - pg. 30 • Single-Family Residential: A stand-alone residential building. - pg. 49 • Sterling Natural Resource Center: The District is planning and constructing a water recycling center called the Sterling Natural Resource Center. - pg. I • Supervisory Control and Data Acquisition: Generally refers to an industrial computer system that monitors and controls a process. - pg. 18 • Surface Water: Found in large bodies such as oceans or lakes which flows overland in streams. - pg. 8 T • Tyler Accounting System: The District’s enterprise resource planning software that integrates across all business processes and activities. - pg. 147 W • Wastewater Collection System Master Plan: Outlines existing deficiencies and facility requirements to meet increasing demands. It provides a general assessment to creat a comprehensive CIP for the wastewater collection system. - pg. 226 • Water Master Plan: Provides information on proposed CIP for the water system, including phasing of the necessary projects and capital requirements taking existing deficiencies and facility requirements to meet both current and future demand in consideration. - pg. 226 FY 2024-25 BUDGET | 270 ma k e s d e c i s i o n s a n d s e t s p o l i c y th e a n n u a l b u d g e t AC R O N Y M S EAST VALLEY WATER DISTRICT | 271 ACRONYMS Glossary Section The District is committed to sound stewardship and transparent operations, through its presentation of the capital and operating budget to the community. FY 2024-25 BUDGET | 272 EAST VALLEY WATER DISTRICT | 273 ACRONYMS Technical acronyms found in the budget document. A • AF: Acre Foot - pg. 52 • AMI: Advanced Metering Infrastructure - pg. 18 • AQMD or SCAQMD: Air Quality Management District or South Coast Air Quality Management District - pg. 207 • ATSI: Advanced Telemetry Systems, Inc. - pg. 153 • AWWA: American Water Works Association - pg. 23 B • BAR: Bureau of Automotive Repair - pg. 219 • BOD: Biological Oxygen Demand - pg. 208 C • CAC: Community Advisory Commission - pg. i • CalFire: California Department of Forestry and Fire and Protection - pg. 9 • CalPERS: California Public Employees’ Retirement System - pg. 39 • CARB: California Air Resources Board - pg. 219 • CCTV: Closed-Circuit Television - pg. 201 • CEO: Chief Executive Officer - pg. ii • CFD: Community Facilities District - pg. 48 • CGC: California Government Code - pg. 29 • CHEF: Community Heritage Education Foundation - pg. 123 • CIP: Capital Improvement Program - pg. 29 • CISCO: Computer Information System Company - pg. 153 • COSA: Cost-of-Service Analysis - pg. i • CSDA: California Special Districts Association - pg. 7 • CSMFO: California Society of Municipal Officers - pg. 6 • CWEA: California Water Environment Association - pg. 202 D • DWR: Department of Water Resources - pg. 227 E • EAM: Enterprise Asset Management - pg. 219 • EOC: Emergency Operations Center - pg. 129 • ERP: Enterprise Resource Planning - pg. 147 • EVWD: East Valley Water District - pg. 40 • EV: Electric Vehicle- pg. 77 F • FY: Fiscal Year - pg. i • FOG: Fats, Oils, and Grease - pg. ii G  • GAC: Granular Activated Carbon - pg. 183 • GASB: Governmental Accounting Standards Board - pg. 39 • GAAP: Generally Accepted Accounting Principles - pg. 39 • GC: San Bernardino Basin Area Groundwater Council - pg. 8 FY 2024-25 BUDGET | 274 • GIS: Geographic Information System - pg. 78 • GFOA: The Government Finance Officers Association - pg. 6 • H • HCF: Hundred Cubic Feet - pg. 49 • HVAC: Heating, Ventilation, and Air Conditioning - pg. 213 K • KPI: Key Performance Indicator - pg. 4 L • LAIF: Local Agency Investment Fund - pg. 88 • LRIP: Local Resource Investment Program - pg. 52 M • MG: Million Gallon - pg. 8 • MGD: Million Gallons Per Day - pg. 17 • MOU: Memorandum of Understanding - pg. 55 N • NFWC: North Fork Water Company - pg. 8 O • OIT: Operator in Training - pg. 207 • OPEB: Other Post Employment Benefits - pg. 39 • OT: Overtime - pg. 56 P • PAFR: Popular Annual Financial Report - pg. 148 • PRV: Pressure Regulating Valve - pg. 18 • PT: Part-Time - pg. 55 R • RFP: Request for Proposal - pg. 136 • RUSD: Redlands Unified School District - pg. 9 • RWQCB: Regional Water Quality Control Board - pg. 118 S • SAR: Santa Ana River - pg. 7 • SBCUSD: San Bernardino City Unified School District - pg. 9 • SBMWD: City of San Bernardino Municipal Water Department - pg. 51 • SCADA: Supervisory Control and Data Acquisition - pg. 18 • SCE: Southern California Edison - pg. 48 • SDLF: Special District Leadership Foundation - pg. 124 • SFR: Single-Family Residential - pg. 49 • SNRC: Sterling Natural Resource Center - pg. I • SRF: State Revolving Fund - pg. 33 • SWP: State Water Project - pg. 8 • SWRCB: State Water Resources Control Board - pg. 61 T • TSS: Total Suspended Solids - pg. 208 U • UAL: Unfunded Actuarial Liability - pg. 148 • UCMR5: Unregulated Contaminant Monitoring Rule 5 - pg. 189 • U.S. EPA: United States Environmental Protection Agency - pg. 23 W • WDR: Waste Discharge Requirements - pg. 208 • WET: Water Education Today - pg. 142 • WRR: Water Recycling Requirements - pg. 208 EAST VALLEY WATER DISTRICT | 275 C H A R T O F AC C O U N T S CHART OF ACCOUNTS Glossary Section The District actively enhances communication methods to reach a variety of stakeholders. FY 2024-25 BUDGET | 276 EAST VALLEY WATER DISTRICT | 277 CHART OF ACCOUNTS In order to maintain consistency across programs and ease the ability to compare expenses, each program budget detail has allocated District resources within a specific list of revenue and expense accounts. This budget includes specific accounts that will be used throughout the current fiscal year. Below is a listing of the District’s Chart of Accounts with a brief description of each account. • 5101 - Regular Labor: Regular salaries and wages for permanent full-time and part-time employees • 5102 - Temporary Labor: Costs for labor not permanently employed by the District • 5103 - Overtime: Employees that work more than their regular 40 hours per week • 5104 - Standby: Employees that are on call for emergencies during non-business hours, weekends, and holidays • 5200 - Benefits: Medical, dental, vision, retirement, and related benefits offered by the District • 6101 - Purchased Water: Cost to purchase imported water • 6102 - Groundwater Replenishment: Cost to pump groundwater from the basin • 6103 - Water Assessments: Cost of water shares directly related to North Fork Water Company • 6201 - Materials & Supplies: Items used in daily operations, repair, and maintenance • 6202 - Tools: Items used to perform repair and maintenance activities • 6203 - Office Supplies: Items such as pens, paper, and other related desk accessories • 6204 - Chemicals: Used for the treatment of water and cleaning equipment and tools • 6205 - Conservation Rebates: Costs to reimburse customers for eligible conservation efforts • 6301 - Contract Services: Services rendered by consultants and contractors; software subscriptions and licensing • 6302 - Banking Services: Service fees charged by financial institutions, merchant banks, and payment processors • 6303 - Printing & Publishing: Costs for printing and producing District publications • 6304 - Legal Services: Costs for legal advice, consultation, contract review, and litigation • 6305 - Treatment Services: Outside treatment services for wastewater • 6306 - Rents & Leases: Rental and lease costs for buildings and equipment that are not owned by the District • 6307 - Uniforms: Costs for the purchase, rental and laundering of uniforms, and other sundries for employees • 6308 - Billing Services: Costs associated with printing and mailing customer utility bills • 6309 - Shut Off Notice Services: Costs associated with the printing and delivery of 48 Hour Notices; these costs are charged back to customers through a fee • 6310 - Street Services: Costs associated with street restoration after District performs repairs and maintenance to existing infrastructure • 6311 - Landscape Services: Costs to maintain landscape, sprinklers, and weed abatement throughout the District • 6312 - Janitorial Services: Costs to clean and maintain District facilities • 6313 - Facilities Repair: Tracking of minor repairs for District facilities FY 2024-25 BUDGET | 278 • 6314 - Litigation Expense: Costs associated with legal proceedings, legal action, lawsuits, legal disputes, or legal cases. • 6401 - Utilities: Cable, gas, and other utilities not including telephone and electricity • 6402 - Telephone: Land lines, cellular phones, and internet services • 6404 - Fuel: Fuel costs for vehicles and generators • 6405 - Permits: Permit costs required by Federal, State, and local regulatory agencies • 6406 - Postage: Costs for mailing bills, publications, and special deliveries • 6501 - Memberships & Dues: Subscriptions (not including software) and memberships for associations and special groups; award applications • 6502 - Professional Development: Seminars, conferences, and travel costs for employee development • 6503 - Education Assistance: Tuition reimbursement for employees who attend school for a degree or certificate • 6504 - Meetings: Costs such as meals, parking, and registration that are not related to professional development • 6505 - Employee Recognition: Employee recognition costs to recognize excellent performance throughout the year • 6701 - General Insurance: General liability insurance for the District’s facilities and infrastructure development • 6702 - Insurance Claims: Cost of insurance claims paid during the fiscal year • 6703 - Cash Over/Short: Accounts for customer payment processing discrepancies • 6704 - Bad Debt: Account used to write off uncollectible customer unpaid water or wastewater charges • 6705 - Retiree Benefits: Other post-employment benefits reimbursed to District retirees The combination of elected representatives and water professionals working together, provides the customers of East Valley Water District with efficient and reliable water and sewer operations. MICHAEL MOORE | GENERAL MANAGER/CEOs e r v i c e e x p e r t District Headquarters 31111 Greenspot Road Highland, California 92346 Sterling Natural Resource Center 25318 5th Street San Bernardino, California 92410 District Board Meetings Second and Fourth Wednesday of Each Month at 5:30pm District Headquarters Board Room 31111 Greenspot Road, Highland, CA 92346 eastvalley.org b u d g e t a d o p t e d j u n e 2 6 , 2 0 2 4 East Valley Water District Resolution 2024.10 Page 1 of 2 RESOLUTION 2024.10 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT APPROVING THE OPERATING AND CAPITAL BUDGETS FOR FISCAL YEAR 2024-25 WHEREAS, East Valley Water District (“District”) is a county water district organized and operating pursuant to California Water Code Section 30000 et seq.; and WHEREAS, the Board of Directors has reviewed and considered the Budget as presented for fiscal year 2024-25, hereinafter referred to as the “Budget;” and WHEREAS, the Budget provides a comprehensive plan of financial operations for the District including an estimate of revenues and the anticipated requirements for expenditures, appropriations, and reserves for the forthcoming fiscal year; and WHEREAS, the Budget establishes the basis for incurring liability and making expenditures on behalf of the District; and NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the East Valley Water District as follows: Section 1. The Budget, and each and every part thereof, is hereby approved and adopted for the fiscal year 2024-25; and Section 2. The provisions of this Resolution shall take effect on July 1, 2024. ADOPTED this 26th day of June 2024. Ayes: Directors: Noes: Abstain: Absent: James Morales, Jr. Board President East Valley Water District Resolution 2024.10 Page 2 of 2 ATTEST: _____________________________ Michael Moore Secretary, Board of Directors June 26, 2024 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2024.10 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held June 26, 2024. _____________________________ Michael Moore Secretary, Board of Directors