HomeMy WebLinkAboutAgenda Packet - Community Advisory Commission - 08/22/2023COMMUNITY ADVISORY COMMISSION
AUGUST 22, 2023
East Valley Water District was formed in 1954 and provides water and wastewater services to
104,000 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.
COMMISSIONERS
Dr. Alan Kay
Commissioner
Robert Nowosielski
Commissioner
Gail Shelton
Commissioner
Judy Walsh
Commissioner
Dwayne Anthony
Commissioner
Vincente Tenerelli
Commissioner
Mark Falcone
Commissioner
William Ringland
Public Affairs/Conservation Manager
Community Advisory Commission Meeting
August 22, 2023 6:00 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
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.
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.
1.Approval of Agenda
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.
2.Approval of the May 23, 2023 Community Advisory Commission meeting minutes
INFORMATIONAL ITEMS
3.Fiscal Year 202324 Budget Overview
4.Strategic Plan Overview
DISCUSSION AND POSSIBLE ACTION ITEMS
REPORTS
5.Commissioners’ Comments
6.Staff’s Comments
ADJOURN
COMMUNITY ADVISORY COMMISSIONAUGUST 22, 2023East Valley Water District was formed in 1954 and provides water and wastewater services to104,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5member elected Board.COMMISSIONERSDr. Alan KayCommissioner Robert NowosielskiCommissionerGail SheltonCommissioner Judy WalshCommissionerDwayne AnthonyCommissioner Vincente TenerelliCommissioner
Mark Falcone
Commissioner
William Ringland
Public Affairs/Conservation Manager
Community Advisory Commission Meeting
August 22, 2023 6:00 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
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.
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.
1.Approval of Agenda
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.
2.Approval of the May 23, 2023 Community Advisory Commission meeting minutes
INFORMATIONAL ITEMS
3.Fiscal Year 202324 Budget Overview
4.Strategic Plan Overview
DISCUSSION AND POSSIBLE ACTION ITEMS
REPORTS
5.Commissioners’ Comments
6.Staff’s Comments
ADJOURN
COMMUNITY ADVISORY COMMISSIONAUGUST 22, 2023East Valley Water District was formed in 1954 and provides water and wastewater services to104,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5member elected Board.COMMISSIONERSDr. Alan KayCommissioner Robert NowosielskiCommissionerGail SheltonCommissioner Judy WalshCommissionerDwayne AnthonyCommissioner Vincente TenerelliCommissionerMark FalconeCommissioner William RinglandPublic Affairs/Conservation ManagerCommunity Advisory Commission MeetingAugust 22, 2023 6:00 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
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.
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.
1.Approval of Agenda
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.
2.Approval of the May 23, 2023 Community Advisory Commission meeting minutes
INFORMATIONAL ITEMS
3.Fiscal Year 202324 Budget Overview
4.Strategic Plan Overview
DISCUSSION AND POSSIBLE ACTION ITEMS
REPORTS
5.Commissioners’ Comments
6.Staff’s Comments
ADJOURN
Agenda Item
#2
August 22, 20231
Meeting Date: August 22, 2023
Agenda Item #2
Consent Item
Regular Meeting
TO: Commission Members
FROM: Public Affairs/Conservation Manager
SUBJECT: Approval of the May 23, 2023 Community Advisory Commission meeting
minutes
RECOMMENDATION
That the Community Advisory Commission approve the May 23, 2023 meeting minutes.
AGENCY GOALS AND OBJECTIVES
II - Maintain a Commitment To Sustainability, Transparency, and Accountability
A. Practice Transparent and Accountable Fiscal Management
B. Utilize Effective Communication Methods
FISCAL IMPACT
There is no fiscal impact associated with this agenda item.
Respectfully submitted:
________________
William Ringland
Public Affairs/Conservation Manager
ATTACHMENTS
May 23, 2023 Commission meeting minutes
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Minutes 05-23-23 cmc
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Subject to approval
EAST VALLEY WATER DISTRICT May 23, 2023
COMMUNITY ADVISORY COMMISSION
MINUTES
The Public Affairs Coordinator, called the special meeting to order at 6:02 pm and led
the flag salute.
PRESENT: Commissioners: Anthony, Falcone, Kay, Shelton, Walsh
ABSENT: Commissioners: Nowosielski, Shelton, Tenerelli
STAFF: Michael Moore, General Manager/CEO; William Ringland, Public
Affairs/Conservation Manager; Cecilia Contreras, Public Affairs
Coordinator; Janett Robledo, Conservation Coordinator;
Christianne Koide, Business Services Coordinator
GUEST(s): None
PUBLIC COMMENTS
The Public Affairs Coordinator declared the public participation section of the meeting
open at 6:03pm.
There being no written or verbal comments, the public participation section was closed.
APPROVE THE FEBRUARY 16, 2023 COMMISSION MEETING MINUTES
M/S/C (Falcone-Anthony) that the February 16, 2023 Commission meeting
minutes be approved as submitted.
CONSERVATION UPDATE
The Conservation Coordinator provided an update regarding the current drought status
the State is experiencing; that the Governor lifted the emergency and staff will be
recommending the Board approve the move to Stage 1 of the Water Shortage
Contingency Plan. The District continues to offer rebates to the residents for indoor
and outdoor efficiency, including a revamped irrigation direct install, and pilot parkway
turf replacement program targeted to residents that have grass in their parkways. He
also stated that staff continues to outreach and engage with the community including
having a booth at Indian Springs high school to talk about careers in the industry,
hosting an Earth Day Festival, and participating in the Citrus Harvest Festival.
Information only.
Vincente Tenerelli arrived at 6:07
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FISCAL YEAR 2023-24 BUDGET OVERVIEW
The Chief Financial Officer stated that staff has been working diligently to complete the
upcoming Fiscal year budget and part of the process includes establishing Goals &
Objectives for the District; that each program bases them off the Five-Year Work plan
and includes key considerations such as rates, funding, and water supply and quality.
He reviewed each program’s current fiscal years accomplishments and the goals set for
the upcoming fiscal year. He provided an update on the current year’s revenue and
presented projections for the new fiscal year including water and wastewater rates with
the adjustment, water and wastewater revenue projections, Sterling Natural Resource
Center (SNRC) non rate revenue, and other charges revenues.
The Commissioners asked multiple questions and staff answered appropriately.
Information only.
Adjourned to a break at 7:29pm
Reconvened at 7:33pm
INDUSTRY BENCHMARKS
The Public Affairs/Conservation Manager presented the Industry Benchmarks; that this
will highlight the overall health and performance of the agency, will be presented
semiannually, and will include established targets and goals; that it provides data on
the Finance, Operations, Conservation, Information Technology, and engagement with
the community; and that this data will be used towards budget development.
Information only.
COMMISSIONER COMMENTS
Dwayne Anthony stated that everything seems to be on course; that he’s happy more
maintenance is being completed and that he is satisfied with the information provided.
Mark Falcone stated that he attended the Board meeting where the budget information
was provided and stated that it was an eye-opener. He appreciates the community
outreach effort that staff provides especially with the upcoming rate increase.
Dr. Alan Kay mentioned that he attended the Facilities tour and was very impressed and
that messaging is key and agrees that the District does a great job at community
outreach.
Vincente Tenerelli stated that it all looked good to him.
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Judy Walsh praised the District for their openness of communication and that she is
pleased with the direction the District is going in and thrilled that there will be more local
control when the District starts treating wastewater.
Information only.
STAFF COMMENTS
The Public Affairs/Conservation manager stated that staff is monitoring legislative bills
that will impact district operations, and he invited the Commissioners to attend the
upcoming Legislative and Public Outreach Committee meeting where the District’s
lobbyist will be providing an update. He stated that staff will be scheduling semiannual
facilities tours and are looking to increase programs at SNRC.
Information only.
ADJOURN
The meeting adjourned at 7:54 pm.
________________________
William Ringland
Public Affairs/Conservation Manager
Agenda Item
#3
August 22, 20231
Meeting Date: August 22, 2023
Agenda Item #3
Informational Item
8
5
3
Regular Meeting
TO: Commission Members
FROM: Public Affairs/Conservation Manager
SUBJECT: Fiscal Year 2023-24 Budget Overview
RECOMMENDATION
This agenda item is for informational purposes only, no action is required.
BACKGROUND / ANALYSIS
Each year the District must complete the development of the budget document, which
serves as the program guide and financial plan for the organization. This process begins
in January of each year with the update of the Five Year Workplan. The budget along
with the program expenses and capital improvement program are presented to the
Governing Board for review and final approval. On June 28, 2023, the Governing Board
adopted the Fiscal Year 2023-24 Operating and Capital Budget.
This year’s budget includes several key initiatives to improve reliability and efficiency,
and improve water quality. The presentation to the Community Advisory Commission
will highlight the key initiatives reflected in the District’s budget.
AGENCY GOALS AND OBJECTIVES
II - Maintain a Commitment To Sustainability, Transparency, and Accountability
A. Practice Transparent and Accountable Fiscal Management
FISCAL IMPACT
There is no fiscal impact associated with this agenda item.
Agenda Item
#3
August 22, 20232
Meeting Date: August 22, 2023
Agenda Item #3
Informational Item
8
5
3
Respectfully submitted:
________________
William Ringland
Public Affairs/Conservation Manager
ATTACHMENTS
•Presentation
•Adopted Budget
Community Advisory Commission
OPERATING & CAPITAL BUDGET
FY 2023-24
August 22, 2023
2
BUDGET SUMMARY - REVENUE
3
BUDGET SUMMARY - EXPENSES
4
BUDGET ALLOCATION BY PROGRAM
5
•Total Full-Time Positions: 73
•Part-Time Positions: 2
•Position Changes: -3
•Associate Engineer
•Administrative Analyst
•Facilities Maintenance Worker
AUTHORIZED POSITIONS
6
•Total Full-Time
Positions: 73
•Part-Time Positions: 2
•Position Changes: -3
•Associate Engineer
•Administrative Analyst
•Facilities Maintenance
Worker
FULL-TIME STAFFING BY PROGRAM
All Capital Outlay is
Funded by Operating
Revenue
7
CAPITAL OUTLAY
Funding Sources for
Water Projects
8
CAPITAL IMPROVEMENT PROJECTS:
WATER FUND
9
CAPITAL IMPROVEMENT PROJECTS:
WASTEWATER FUND
Funding Sources for
Wastewater Projects
DISCUSSION
FISCALYEAR BUDGET
Annual Publication of East Valley Water District
Highland, California
2023-24
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EXPERT SERVICE
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/CEO
Department Name
Function
Goals & ObjectivesEast Valley Water District’s Fiscal Year (FY) 2023-24 Operating and
Capital Budgets provides 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 Operating and Capital Budgets include:
1.Transmittal Letter – A letter from Michael Moore, General
Manager/CEO outlining the District’s approach and
methodology in developing the budget.
2.Introduction – An overview of the District, the financial plan and
operating guide.
3.Financial Summary – Methodology and principles to provide
guidelines for the formulation and consideration of the
comprehensive annual budget.
4.Water, Wastewater and Water Reclamation Funds – Financial
projections, assumptions and considerations for revenue,
expenses, and operations.
5.Consolidated Financial Summary – A snapshot of the District’s
revenues and expenses.
6.Program Summaries – Descriptions highlighting the
accomplishments, goals, and proposed Operating Budget for
the specific program.
7.Capital Budget – Summary of Capital Budget and Proposed
Capital Improvement Projects.
8.Glossary – Explanation of key terms, acronyms and chart of
accounts used throughout the document.
Program Summaries
The Program Summaries section provides the structural overview,
key goals and objectives, accomplishments for the previous year,
and the budget details.
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 | i
HOW TO READ THE BUDGET
FISCAL YEAR 2023-24 BUDGET
[PAGE LEFT BLANK]
Intentionally
FY 2023-24 BUDGET | ii
TABLE OF CONTENTS
OVERVIEW OF THE BUDGET DOCUMENT STRUCTURE
EAST VALLEY WATER DISTRICT | iii
FY 2022-23 Accomplishments 8
District Management 9
Resolution 2023.09 10
Transmittal Letter 1
Budget Guide 13
Statistical/Supplemental Information 16
District Vision 19
District Goals and Objectives 20
Organizational Structure 22
Industry Benchmarks 29
Introduction 11
Financial Policies 37
Budget Process 42
Budget Cycle Calendar 44
Basis of Budgeting 45
Fund Structure 46
Fund/Program Relationship 48
Budget Summary 49
Revenue Summary 50
Expenditure Summary 57
Debt Overview 63
Fund Equity & Reserves 68
Long Range Financial Plan 75
Financial Summary 35
Water Fund 81
Wastewater Fund 93
Consolidated
Financial Schedules 105
Program Descriptions 113
Position Summary Schedule 113
Governing Board 115
General Administration 121
Human Resources 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 183
Water Quality 189
Water Maintenance 195
Wastewater Collection 201
Water Reclamation 207
Facilities Maintenance 213
Fleet Maintenance 219
Program Summaries 111
Capital Budget Summary 227
Capital Outlay 228
CIP Five-Year Schedule 230
Capital Improvement Projects 233
Infrastructure Accomplishments 259
Capital Budget 225
Glossary 263
Water Reclamation Fund 99 Acronyms 269
Chart of Accounts 273
[PAGE LEFT BLANK]
Intentionally
FY 2023-24 BUDGET | iv
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EAST VALLEY WATER DISTRICT | 1
TRANSMITTAL LETTERfy 2023-24
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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 2023-24 BUDGET | 2
• FY 2023-24 Accomplishments
• District Management
• Resolution 2023.09
Transmittal Letter Contents
EAST VALLEY WATER DISTRICT | 3
TRANSMITTAL LETTER
Honorable Chairman, Governing Board, District Ratepayers, and Community Members,
East Valley Water District (District) is proud to present the Fiscal Year (FY) 2023-24 Operating and Capital Budgets
(Budget) serving as a foundational guide and tool for our employees, stakeholders, and community. This document has
been designed to provide an insight and understanding into the District’s initiatives, operations, and goals.
The development of the Budget is completed through a collaborative strategic planning process, which actively engages
the District’s Governing Board, staff, and community members. The Budget presents a comprehensive financial plan
that includes a forecast of operating and non-operating revenues and expenditures; financing of long-term capital
improvement plans and funding for the repayment of long-term debt.
After several years of development and construction, the Sterling Natural Resource Center (SNRC) will come online and
begin treatment operations in FY 2023-24. With the additional service, the District has developed a comprehensive
commissioning strategy and will work to implement the facility’s staffing plan to ensure a safe and functioning facility.
BUDGET PROCESS
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 staff will then
develop the milestones and objectives needed to meet the Five-Year Work Plan goals within the District’s financial
forecasts. The effort 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.
Strategic Planning Efforts
With a vision to become a world-class organization, the District is focused on providing safe and reliable drinking water
and preserving the quality of life for our community.
The Governing Board, staff, and community have developed the District’s Guiding Principles, including the District Vision
that empowers the organization to take actions to be innovative, efficient, and effective. Carrying out this vision requires
a commitment to being a performance-based organization valuing results. Also established in the Guiding Principles
are the Core Values and Goals & Objectives. These three pillars of the District’s strategic planning process provide
the framework for the Five-Year Work Plan and subsequently the Utility Success Indicators, Budget, and Individual
Performance Goals.
With the strategic foundation in place, staff uses the framework to develop the FY 2023-24 Budget outlining the
financial steps needed to achieve the goals and maintain world-class operations. Given the high standards of the
District, it is important to showcase the strategic value of key projects outlined in the Five-Year Work Plan, including
the required planning steps, environmental awareness, and clear prioritization to allow staff to accomplish the set
goals. As a performance and operations-based organization, the FY 2023-24 Budget also accounts for on-going daily
operations, while maintaining the world-class standards set by the community.
Programmatic Goals and Objectives
All Program Goals have been designed to support the priorities outlined in the Five-Year Work Plan.
FY 2023-24 BUDGET | 4
Revenue and Projections
Anticipated rate and non-rate revenues are projected to estimate the
financial resources available to fund the activities and infrastructure
enhancements identified for the fiscal year. Given the significant potential
impacts of external factors such as the economy, inflation, drought
conditions, and demand, the District calculates these figures in a fiscally
conservative manner. A process is in place to allow for adjustments to
reflect actual revenue trends at quarterly intervals throughout the year
and ultimately reported in the Comprehensive Annual Financial Report.
Expenditure Projections
Expenditure projections are cost estimates developed to achieve
Program Goals and objectives along with daily operational needs. This
information is presented from multiple levels, including the Districtwide
perspective for each fund, and for individual programs. Once initial
expenditures are developed, they are compared to the revenue
projections. During the budget process, if expenditures were projected
above available revenues, the organization could use the strategic
nature of the budget to re-evaluate goals to ensure maintenance of
consistent expectations with available financial resources.
Budget Adoption
To provide an opportunity for discussion and participation, the budget
was presented to the Governing Board in phases at a series of three
public meetings. In addition, the information was presented during one
public meeting of the Community Advisory Commission. The Community
Advisory Commission is a group of seven residents appointed by the
Governing Board to provide input to support efforts of transparency and
accountability. The annual budget must be adopted by June 30 in order
to begin the new fiscal year on July 1.
•District Vision
•Core Values
•Goals & Objectives
Guiding
Principles
•Industry Benchmarks
•FY 2023-24 Operating
and Capital Budgets
•Individual
Performance Goals
Performance
Measures
•Five-Year Work Plan
Bridge
Measures
PROGRAM MONITORING AND BUDGET ADJUSTMENTS
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. Every year staff
presents a comprehensive update to the Governing Board midway through the fiscal year where this item is discussed
at an open public meeting and provides a summary of budget activity along with updated forecasts for the remainder of
the year.
Budget Summary
The budget for FY 2023-24 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 Funds based on the assumed benefit 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 2023-24 are $47,424,000.
Operating under the principles
of transparency, the District
takes steps to make financial
reports reader-friendly and easily
accessible to the public.
EAST VALLEY WATER DISTRICT | 5
[TRANSMITTAL LETTER]
WATER FUND
The Water Fund has identified $29,053,000 in both revenue and expenses. Key considerations when developing the
budget for this fund included the cost to supply, treat, and distribute drinking water and fire protection water throughout
the District. Revenues are derived from three sources for the Water Fund. The Assumptions for this budget are 63% for
water sales, 34% meter charges, and 3% other charges. The District reviews rates as needed and adjusts accordingly to
balance operation and capital expenses. The District conducted a rate analysis in FY 2020-21 with the Governing Board
adopting a water rate adjustment to take effect January 1, 2023.
Projected expenditures have been developed through a comprehensive organizational budget process to achieve
District goals, maintain operations, and balance budget with revenue projections. Expenses for the Water Fund consist
of 75% program, 14% capital, and 11% debt service.
WASTEWATER FUND
The Wastewater Fund has identified $6,048,000 in both revenues and expenses. When developing the budget for this
fund, key considerations included the maintenance and repair of the sewer collection system.
Wastewater Fund revenue projections have been developed based on historical revenues with source projections
including 99% system charges and 1% other charges. The District reviews rates on a periodic basis and adjusts
accordingly to continue providing reliable services to the community. A complete rate analysis was conducted in FY
2020-21 and the Governing Board, with wastewater rate increases scheduled for January 1, 2023.
Projected expenses have been developed through the budget process to support the Five-Year Work Plan, maintain
operations, and remain within projected revenues. Expenditures for the Wastewater Fund consist of 80% program, 9%
capital expenditures, 5% debt service, and 6% to reserves.
WATER RECLAMATION FUND
The new Water Reclamation Fund has been established to pay for all activities related to the SNRC facility operations.
The Water Reclamation Fund has identified $12,323,000 in both revenues and expenses.
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget % Change
REVENUE
Operating Revenue $ 45,829,279 $ 44,027,000 $ 46,153,859 $ 47,084,000 7%
Non-Operating Revenue 936,644 125,000 318,513 340,000 172%
TOTAL REVENUE $ 46,765,923 $ 44,152,000 $ 46,472,372 $ 47,424,000 179%
EXPENDITURES
Operating & Maintenance $ 32,935,953 $ 35,493,000 $ 33,360,111 $ 37,678,000 6%
Debt Service 3,071,890 3,354,000 3,354,000 3,376,000 1%
Capital Expenditures 3,945,026 6,505,000 6,505,000 4,890,000 -25%
Reserve Transfer To/(From) 6,331,490 (1,200,000) 3,253,261 1,480,000 -223%
TOTAL EXPENDITURES $ 46,284,359 $ 44,152,000 $ 46,472,372 $ 47,424,000 -241%
FY 2023-24 BUDGET | 6
Water Reclamation Fund revenue projections have been developed based on a comprehensive study with projections
including 83% wastewater treatment, 16% SNRC non-rate revenue, and 1% other charges. The District reviews rates on
a periodic basis and adjusts accordingly to continue providing reliable services to the community.
Projected expenses have been developed through the budget process to support the commissioning and operations
of the SNRC and remain within projected revenues. Additionally, the new Water Reclamation Fund will begin building
a reserve balance to be used for asset replacement in the future. Expenditures for the Water Reclamation Fund consist
of 90% program, 2% debt service, and 8% to reserves.
PROGRAM HIGHLIGHTS
As a results-oriented based organization, the District has identified 18 programs essential to operations. Program-based
budgeting allows for costs to be clearly identified while easily measuring benefits as outlined in the Key Performance
Indicators (KPI) and completion of Goals and Objectives.
STAFFING
The District continues to strategically evaluate the workforce needs to facilitate world-class service. The FY 2023-24
Budget has identified 73 authorized full-time positions along with two part-time positions. East Valley Water District
will begin implementing the staffing plan developed with the staffing considerations for the SNRC and the increased
District duties needed for daily operations.
STERLING NATURAL RESOURCE CENTER
The Sterling Natural Resource Center (SNRC) has presented a new opportunity for the District to begin recycling
wastewater for the community. As staff begins working towards commissioning the facility operations, the startup of
operations will be a fundamental shift in the District’s operational approach. Within the outlined budget, this shift will
include the onboarding of new staff, start of operations and the implementation of the new Wastewater Reclamation
program.
• The Governing Board is the District’s legislative
body responsible for serving as the organizational
policy makers.
• General Administration is responsible for
overseeing the day-to-day District operations.
• Human Resources is responsible for personnel
related programs.
• Public Affairs oversees internal and external
communications programs.
• Conservation encourages sustainable water use.
• Finance & Accounting provides transparent and
responsible oversight of District funds.
• Information Technology is responsible for District
technology and software programs.
• Customer Service provides the community with
world-class customer relations.
• Meter Services maintains a network of Advanced
Metering Infrastructure (AMI) meters.
• Engineering implements infrastructure projects
needed to provide safe and reliable services.
• Water Production is responsible for monitoring and
operating the entire water system.
• Water Treatment is responsible for treating the
three sources of supply.
• Water Quality complies with all required drinking
water regulations.
• Water Reclamation is responsible for treating and
disinfecting wastewater.
• Water Maintenance maintains the District’s water
transmission and distribution system.
• Wastewater Collection repairs and safeguards the
conveyance system.
• Facilities Maintenance repairs and maintains all
District sites.
• Fleet Maintenance cares for vehicles and
equipment.
EXTERNAL CONSIDERATIONS
In addition to the District’s daily operational needs, there are external factors that must be considered when developing
the budget document.
The current economic inflation rate is a consideration in the development of this document, both from an investment
revenue perspective and when estimating operational costs such as construction, labor and materials. When calculating
the Capital Budget, these factors were incorporated in project cost considerations. Inflation has been factored into
operational cost with significant increases in power supply, labor, and contract services.
After experiencing three years of extremely dry conditions, the State’s emergency drought declaration was lifted in
March 2023. This allowed Californians to pivot from severe restrictions to standard conservation measures. As such,
the District will reduce some outreach publications related to the drought emergency.
Regulations regarding water conservation, water rights, climate change and Capital Project funding continue to be
topics of discussion that could have potential operational impacts. Maintaining compliance with regulations is an
essential component to District operations. The District is monitoring proposed water quality regulations for emerging
contaminants and water efficiency standards that could affect District operations.
CAPITAL IMPROVEMENT PROGRAM
The District’s Capital Improvement Program (CIP) is a five-year planning schedule with each year approved in the
correlating fiscal year’s budget based on findings of the Water and Wastewater Master Plans. Scheduled projects in FY
2023-24 total $8,025,000 for water, wastewater and water reclamation projects, and include:
Future projects will be determined by completion of the Water and Wastewater Master Plan updates.
DEBT
The District utilizes debt funding to finance large capital projects. The District has outstanding debt which has been
utilized for water treatment facilities, energy efficiency improvements, mutual water company consolidations, and
infrastructure projects. Debt is not used to fund operating expenses. Debt service for FY 2023-24 on all outstanding
debt is $3,376,000. The District will continue to use the State Revolving Fund (SRF) for the construction of the SNRC.
EAST VALLEY WATER DISTRICT | 7
[TRANSMITTAL LETTER]
• Meter Program
• Canal Zone Storage Reservoir
• Plant 134 Membrane Replacement
• Tank/Reservoir Rehabilitation
• Plant 101 – Hydro Tank Rehabilitation
• Water Mains – Elmwood Road and Valaria Court
• Gate Valve Replacement Program
• Facility Relocations
• Facility Rehabilitations
• SNRC – Pipeline, Startup and Commissioning
Capital planning involves identifying current and future needs and prioritizing them through an assessment process.
FY 2023-24 BUDGET | 8
FY 2022-232022-23 ACCOMPLISHMENTS
The District made significant progress on strategic projects and planning efforts throughout FY 2022-23.
Optimize
Infrastructure
Capital Improvement Projects
The District completed construction for
the addition of Granular Activated Carbon
(GAC) filtration system at Plant 134, a
Seismic Study of the District’s reservoirs
and water main replacement projects.
The District completed a sewer pipeline
replacement, reservoir tank rehabilitation
and several upgrades across the system.
Sterling Natural Resource Center
In preparation of the SNRC becoming
operational in 2023, the District adopted
new wastewater treatment rates, and
implemented several service agreements
to support the operation of the new facility.
The District worked in partnership with
San Bernardino Valley Municipal Water
District to construct the Weaver Basins for
the regional recharge of the Bunker Hill
Groundwater Basin.
Financial
Stability with Full
Understanding
of Operational
Complexities
Financial Reserves
Increased cost of material and services has required the District to find creative solutions
in replacing assets and still balancing the budget. The District has also experienced long
delays in obtaining certain materials and information technology required for essential
operations. The District has increased the inventory of critical items to ensure material
and technology on-hand can provide reliable operations and maintenance. The District
also keeps financial reserves available to replace unbudgeted assets if required due to
an unforeseen emergency.
Protect
Organizational
Investments
Educational Programs
The District once again partnered with
Claremont McKenna College and local
schools allowing students and staff to
work together to develop data modeling
for Water Production efforts. Seeking to
foster student engagement and serve as
an industry leader, the District established
a Water and Wastewater Educational
Pathway Program.
Career development for employees is an
investment in the organization to continue
being a leader in the industry. The District
has invested in continuing education
for more than a dozen in FY 2022-23.
This includes a range of education
including college courses, trade schools
and water certification courses. The
District also launched a new leadership
training program that builds skills for new
supervisors and managers.
Staffing Analyses
As a performance-based organization, the
District takes an active role maintaining
staffing levels to performance-based
objectives. Over this past year, staff
developed performance-based objectives
for the newly created SNRC positions and
outlined specific duties required for these
key positions.
Yours in Service,
Michael Moore, P.E.
General Manager/CEO
Board of Directors
Phillip R. Goodrich
Chairman of the Board
James Morales, Jr.
Vice Chairman of the Board
David E. Smith
Governing
Board Member
Chris Carrillo
Governing
Board Member
Ronald L. Coats
Governing
Board Member
Kerrie Bryan
Director of Administrative Services
Justine Hendricksen
District Clerk
Patrick Milroy
Operations Manager
Jeff Noelte
Director of Engineering & Operations
Brian Tompkins
Chief Financial Officer
Rocky Welborn
Water Reclamation Manager
District Management
EAST VALLEY WATER DISTRICT | 9
Have Others See
the District as a
Premier Agency
Regional and Industry Involvement
The District continued to engage in regional activities and maintain active participation
in industry groups. Staff provided informational presentations on topics including the
SNRC, Educational Pathway Program, and general District activities.
Additionally, the District received all three financial awards from the Governmental
Finance Officers Association (GFOA) and was voted a Top Workplace in the Inland
Empire- small business category.
Awards
Summary
East Valley Water District staff have continued to move the District forward and provide safe and reliable service for our
community. The team is proud to launch operations at the new Sterling Natural Resource Center and begin providing
recycle water to recharge our groundwater basin. With staff taking an active role in embracing the District’s vision, we
will continue to provide services vital to the health and growth within the community.
[TRANSMITTAL LETTER]
Government Finance
Officers Association
(GFOA) Award for
FY 2022-23 Budget
California Society of
Municipal Finance Officers
(CSMFO) Excellence Award
for FY 2022-23 Budget
Top Workplace
Award by the Inland
News Group in Small
Company Category
Special District Leadership
Foundation’s (SDLF) District of
Distinction Accreditation Gold
Level and District Transparency
Certificate of Excellence
FY 2023-24 BUDGET | 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 2023-24, 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 2023-24; and
Section 2. The provisions of this Resolution shall take effect on July 1, 2023.
ADOPTED this 28th day of June 2023.
Ayes: Directors: Carrillo, Coats, Goodrich, Smith, Morales
Noes: None
Abstain: None
Absent: None
Phillip R. Goodrich
Board President
June 28, 2023
I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2023.09 adopted
by the Board of Directors of East Valley Water District at its Regular Meeting held June 28, 2023.
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 2023-24
Resolution 2023.09
EAST VALLEY WATER DISTRICT | 11
INTRODUCTIONfy 2023-24
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The financial plan serves as a policy document, operations guide
for programs, and as a means of transparent communication.
FY 2023-24 BUDGET | 12
• Budget Guide
• Statistical/Supplemental Information
• District Vision
• Organizational Structure
• Industry Benchmarks
Introduction Contents
EAST VALLEY WATER DISTRICT | 13
BUDGET GUIDE
The budget document is the District’s 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
The budget document consists of seven sections, including:
1 TRANSMITTAL LETTER
This section includes the District Officials, General Manager/CEO’s Budget Transmittal Letter, Strategic Plan,
Capital Improvement Program, and FY 2022-23 accomplishments.
2 INTRODUCTION
This section includes the Budget Guide, Statistical/Supplemental Information, Organizational Structure, and
District Vision.
3 FINANCIAL SUMMARY
This section presents an in-depth Districtwide overview of the FY 2023-24 Budget.
4 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.
5 PROGRAM SUMMARIES
This section provides comprehensive information for each functional program within the District including
their operational budget. The FY 2023-24 Budget is organized into the following summary programs:
• Governing Board
• General Administration
• Human Resources
• 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 2023-24 BUDGET | 14
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 2023-24 through specific goals and objectives.
• Accomplishments: Highlights and milestones from FY 2022-23.
• 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.
6 CAPITAL BUDGET
This section presents the Capital Outlay expenditures and Capital Improvement Projects for the
FY 2023-24 Budget.
7 GLOSSARY
This section provides definitions for general terms, acronyms, and the Chart of Accounts used throughout the
budget document.
BUDGET AWARDS
The Government Finance Officers Association of the United States and Canada presented a Distinguished
Budget Presentation Award and the California Society of Municipal Finance Officers presented the
Excellence Award to the District for its annual budget for the fiscal year beginning July 1, 2022. 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.
PRESENTED TO East Valley Water District California
For the Fiscal Year Beginning July 01, 2022
Executive Director
GOVERNMENT FINANCE OFFICERS ASSOCIATION
Distinguished
Budget Presentation
Award
Finance Department East Valley Water District, California March 27, 2023
The Government Finance Officers Association of 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
California Society of Municipal
Finance Officers
Certificate of Award Operating Budget Excellence Award
Fiscal Year 2022-2023
Presented to the
East Valley Water District
For meeting the criteria established to achieve the CSMFO Excellence Award in Budgeting. February 10, 2023
Scott Catlett James Russell-Field, Chair 2022 CSMFO President Recognition Committee
Dedicated Excellence in Municipal Financial Reporting
In addition to receiving the GFOA Distinguished Budget Award, the District also received Special
Capital Recognition and Special Long Range Financial Plans Recognition.
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 2021-222021-22 ACTUALS
Actual financial information for FY 2021-22 as reported in the Comprehensive Annual Financial Report. The actual
financial information is reported in the budget document on a budgetary basis.
FY 2022-232022-23 BUDGET
The FY 2022-23 Budget was adopted by the Governing Board on June 23, 2022 and may also include any adjustments
approved by the Governing Board at the Mid-Year Budget Review.
FY 2022-232022-23 PROJECTED
The FY 2022-23 Projected column reflects the adopted budget in addition to any amendments approved by the
Governing Board during the fiscal year. The FY 2022-23 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 2023-242023-24 BUDGET
This column initially reflects the FY 2023-24 “Proposed” Budget submitted by the General Manager/CEO. After the
Governing Board reviews and approves the FY 2023-24 Budget, the information in the FY 2023-24 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.
EAST VALLEY WATER DISTRICT | 15
[INTRODUCTION]
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed % Changed
210
210
santa
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plunge creek
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FY 2023-24 BUDGET | 16
STATISTICAL/SUPPLEMENTAL INFORMATION
The District provides water and wastewater services to residents within its 30.1 Square mile area.
This includes over 104,000 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.
The District was formed through a local election of mostly citrus grove operators, to have water service provided by a
public agency. The District is located in the foothills of the San Bernardino Mountains, 65 miles east of Los Angeles in
the County of San Bernardino.
District Boundary Map
District Headquarters
31111 Greenspot Road
Highland, CA 92346
Sterling Natural
Resource Center (SNRC)
25318 5th Street
Highland, 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. 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.
San Bernardino
Highland
Seven Oaks Dam
N
DistrictHeadquarters
SNRC
EAST VALLEY WATER DISTRICT | 17
[INTRODUCTION]
A portion of the District’s water is imported from Northern
California through the State Water Project. The District has
access to this water through San Bernardino Valley Municipal
Water District (Valley District). The District anticipates using
the allocated North Fork Water Company (NFWC) shares for
groundwater replenishment rather than treating for use in
the water distribution system directly. Not only will this help
to contribute to a healthy basin level, it will offset the District’s
cost obligation toward the San Bernardino Basin Groundwater
Council (GC).
Wastewater Collection and Treatment
The District is responsible for the collection and conveyance of wastewater within the service area. Currently, all
wastewater is sent to the City of San Bernardino Municipal Water Department (SBMWD) facilities, where it is treated in
accordance with a Joint Powers Agreement.
In 2018, the District successfully received authorization for reorganization to include wastewater treatment authority
by the Local Agency Formation Commission (LAFCO). This allows for the District to construct and ultimately operate
facilities to treat wastewater collected from within its service area.
The District is finalizing construction of the SNRC in the City of Highland that will treat up to eight million gallons of
wastewater daily for recharge into the Bunker Hill Basin. This project will create a drought-proof recycled water supply,
which will result in hundreds of millions of gallons of water stored for use in dry years for beneficial reuse higher in the
Santa Ana River watershed. The project broke ground in late 2018 with operations beginning in FY 2023-24. Once the
facility is commissioned, the District will be responsible for treating the wastewater generated within its service area.
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:
• Unit development offering a variety of
housing opportunities. The development
density identified by land use agencies allows
for a minimum of 250 housing units and a
maximum of 800 house units. The anticipated
new construction will be located along
Greenspot Road and the 210 Freeway.
• Residential planned community of 316
housing units. The permitted land use types
of this area focuses towards low to medium
density residential units with additional
inclusion of open space, agriculture, parks and
recreation.
10%SurfaceWater
15%
Surface Water
(Imported StateWater Project)75 %
Groundwater
(Bunker Hill Basin)
(SantaAna River)
districtwatersources
$79,99 8
California Average
$48,959
City ofSan Bernardino
$56,514
East ValleyWater District
$68,105
City of Highland
$68,711
County ofSan Bernardino
average household income
*Income information retrieved from census.gov.
FY 2023-24 BUDGET | 18
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 and 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.
EAST VALLEY WATER DISTRICT | 19
[INTRODUCTION]
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.
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-YearWork Plan
PERFORMANCE MEASURES
IndustryBenchmarks Budget IndividualPerformanceGoals
Daily Operations
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.
490
Hydrants Repaired, Replaced, Inspected 5100
Manholes
344
Hydrants Flushed
28,977,000
Gallons of Water Storage
230
Miles of
Wastewater
Mains 6,000,000
Average Gallons of Wastewater Collected
15
Active
Groundwater
Wells
191
Miles ofWastewaterMain Cleaned61Miles of Wastewater Video
300
Miles of
Water Mains
16,500,000
Average Gallons of Water Produced Daily
3,500
Water
Samples
Collected
344 Water Leaks Repaired
1,185 Feet of Water Main Replaced
FY 2023-24 BUDGET | 20
Goals and Objectives
District Spotlight
I.
Implement Effective Solutions Through Visionary Leadership
• 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
II.
Maintain a Commitment to Sustainability, Transparency, and Accountability
• Practice Transparent and Accountable Fiscal Management
• Utilize Effective Communication Methods
• Pursue Alternative Funding Sources
• Provide Quality Information to Encourage Community Engagement
III.
Deliver Public Service with Purpose While Embracing Continuous Growth
• 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
IV.
Promote Planning, Maintenance and Preservation of District Resources
• 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
EAST VALLEY WATER DISTRICT | 21
[PAGE LEFT BLANK]
Intentionally
margin
margin
Ratepayers/Community Members
ADMINISTRATIVE
SPECIALIST
DIRECTOR OF
ADMINISTRATIVE SERVICES
WATER QUALITY
COORDINATOR
SR. TREATMENT
PLANT OPERATOR
FACILITIES MAINTENANCE
WORKER II
SR. WATER
PRODUCTION OPERATOR
WATER PRODUCTION
OPERATOR II
WATER PRODUCTION
OPERATOR I
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)
(7)
(2)
(3)
WATER QUALITY
TECHNICIAN (6)
(3)
(2)
DIRECTOR OF
ENGINEERING & OPERATIONS
HUMAN RESOURCES
COORDINATOR
DIRECTOR OF
STRATEGIC SERVICES
OPERATIONS
MANAGER
WATER PRODUCTION
SUPERVISOR
FIELD SERVICE
SUPERVISOR
SENIOR
ENGINEER (2)
PUBLIC AFFAIRS
COORDINATOR
PUBLIC AFFAIRS
REPRESENTATIVE PT
PUBLIC AFFAIRS
SPECIALIST
CONSERVATION
COORDINATOR
PUBLIC AFFAIRS/
CONSERVATION MANAGER
ADMINISTRATIVE
ASSISTANT
FIELD SERVICE
SUPERVISOR
FACILITIES AND FLEET
SUPERVISOR
margin
margin
CUSTOMER SERVICE
REPRESENTATIVE I
Legal Counsel
CUSTOMER SERVICE
REPRESENTATIVE III
CUSTOMER SERVICE
REPRESENTATIVE II
CUSTOMER SERVICE
REPRESENTATIVE I
(2)
(2)
(2)
(PT)
Management
General StaExecutive Management
Elected Ocials
LEGEND
CHIEF FINANCIAL
OFFICER
ELECTRICAL &
INSTRUMENTATION
CONTROLS TECHNICIAN
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
WASTEWATER
TREATMENT PLANT
MECHANIC III
* All positions are full-time unless noted otherwise as part time (PT).
WATER RECLAMATION
MANAGER
SR. WASTEWATER
TREATMENT
PLANT OPERATOR
(4)
ORGANIZATIONAL STRUCTURE
[INTRODUCTION]
FY 2023-24 BUDGET | 22 EAST VALLEY WATER DISTRICT | 23
FY 2023-24 BUDGET | 24
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 73 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 Responsbilities Overview
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
Director of
Strategic
Services
District
Clerk
Administration
Director of
Engineering &
Operations
Engineering
*Operations
*Water Reclamation
Director of
Administrative
Services
Human
Resources
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
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.
EAST VALLEY WATER DISTRICT | 25
[INTRODUCTION]
DIRECTOR OF ADMINISTRATIVE SERVICES
Human Resources
Human Resources 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.
DIRECTOR OF STRATEGIC SERVICES
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, emergency preparedness, 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.
The budget reflects the commitment of allocating resources to meet the needs of District stakeholders.
FY 2023-24 BUDGET | 26
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 transition from a service contracted with
the SBMWD, to in-house operations at the newly completed SNRC during
FY 2023-24.
OPERATIONS MANAGER
Meter Services The Meter Service program maintains a network of approximately 23,000
Advanced Metering Infrastructure 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.
SEWER
EAST VALLEY WATER DISTRICT | 27
[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 2023-24
Operating and Capital Budgets.
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.
WaterReclamation
26%
WaterMaintenance
9%
Water
Production
15%
Human
Resources
8%
InformationTechnology
5%
Engineering
4%
Finance &
Accounting
4%
General
Administration
4%
Water
Treatment
3%
Public
Aairs
3%
Customer
Service
5%
Facilities
5%
Board
1%
Water
Quality1%
Meters
1%
Conservation2%
2%Wastewater
Maintenance
2%Fleet
FY 2023-24 BUDGET | 28
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INDUSTRY BENCHMARKS
Introduction Section
EAST VALLEY WATER DISTRICT | 29
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Industry Benchmarks allow East Valley Water District to examine itself in
comparison with other utilities across the United States.
FY 2023-24 BUDGET | 30
EAST VALLEY WATER DISTRICT | 31
[INTRODUCTION]
INDUSTRY BENCHMARKS
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. 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). 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
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.
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.
* Per District Policy No. 7.2 - Reserve Funds Policy
* Per District Policy No. 7.2 - Reserve Funds Policy
20
40
60
80
100
120
140
160
FY 2019-20 FY 2020-21 FY 2021-22
Da
y
s
o
f
O
p
e
r
a
t
i
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District-Wide Days of Operations
* Target Level Minimun* Target Level Maximum
120
90
$2M
$4M
$6M
$8M
$10M
$12M
$14M
Restricted for Future Capital Expansion Project at YE
Capital Replacement Fund Target Balance
FY 2019-20 FY 2020-21 FY 2021-22
10
FY 2023-24 BUDGET | 32
Miles of Sewer Cleaned
The chart provides an overview of the number of miles of sewer lines cleaned over the last three fiscal years. The
District aims to clean at least 50% of the system per fiscal year with the U.S. EPA setting a target of 30%.
Main Leaks
The chart displays the total number of main line leaks per 100 miles of water mains, over the past three fiscal years.
The data includes AWWA’s 2022 benchmark information to compare water systems across the United States.
* 230 Miles of Sewer Line in the District; Goal is to Do Close to Half per Fiscal Year
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 YearActual
U.S. EPA % of System Cleaned per YearTarget
FY 2019-20 FY 2020-21 FY 2021-22
30%
FY 2019-20 FY 2020-21 FY 2021-22
5
10
15
20
25
30
Ma
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L
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a
k
s
P
e
r
1
0
0
M
i
l
e
s
Leaks per 100 Miles of Pipe AWWA 2021 Combined UtilitiesWater Operations Leaks per 100mi. of PipeTarget
8.1
EAST VALLEY WATER DISTRICT | 33
[INDUSTRY BENCHMARKS]
Water Affordability
The chart presents the affordability of the District’s water by comparing it to the U.S. EPA 2.5% threshold, over the
past three fiscal years.
Staffing Levels
The graph highlights the staffing levels of the District over the past three fiscal years 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.
% of Median Household Income (MHI) is utilized by U.S. EPA (at 2.5% threshold) for Assessing Affordability
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
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c
o
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Water Service Aordability
(% of MHI)
U.S. EPA
(% of MHI)
Target
FY 2019-20 FY 2020-21 FY 2021-22
2.50%
50
100
150
200
250
300
Ac
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P
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E
m
p
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Customer
Accounts per Employee
Neighboring Agencies
Average Accounts per Employee
FY 2019-20 FY 2020-21 FY 2021-22
212
FY 2023-24 BUDGET | 34
Wait Time
The chart illustrates the call wait time experienced by District customers when contacting customer service
representatives, covering the past three fiscal years. It also includes a comparison with other utilities using the 2021
AWWA benchmarking data, offering insights into the District’s performance in terms of customer service responsiveness
in relation to industry standards.
10
20
30
40
50
60
70
80
Av
e
r
a
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e
Q
u
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u
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T
i
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Avg Queue Time AWWA 2022 Combined UtilitiesWait Time Target
FY 2019-20 FY 2020-21 FY 2021-22
78
EAST VALLEY WATER DISTRICT | 35
FINANCIAL SUMMARYfy 2023-24
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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.
FY 2023-24 BUDGET | 36
• 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
EAST VALLEY WATER DISTRICT | 37
FINANCIAL POLICIES
The 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 Plan (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 46-48.
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.
FY 2023-24 BUDGET | 38
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 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 Designated Funds (Reserve) Policy as part of prudent financial planning and to ensure sufficient funding
for current and future needs.
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.
EAST VALLEY WATER DISTRICT | 39
[FINANCIAL SUMMARY]
Operating Reserve Fund CapitalReplacementReserve
Restricted Reserve
(Includes debt proceeds, customer deposits and developer fees.)
FY 2023-24 BUDGET | 40
CAPITAL REPLACEMENT RESERVE
All Funds will maintain a reserve for the replacement of capitalized assets when they reach the end of their useful lives.
The source of reserves will be user fee revenue from the respective fund.
1. Target Level – The minimum target level should be equal to one year of depreciation as determined by
depreciation recorded for the previous fiscal year. The maximum balance shall not exceed the projected
needs for five years according to the District’s Capital Improvement Plan.
2. Events or Conditions Prompting the Use of the Fund – Staff will recommend assets to be replaced during the
Capital Improvement Plan/Capital Budget presentation. As projects are approved, funds will be appropriated
from undesignated funds or available revenues.
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.
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.
EAST VALLEY WATER DISTRICT | 41
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).
[FINANCIAL SUMMARY]
FY 2023-24 BUDGET | 42
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 2023-24 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 2023-24 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
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.
District Vision Five-YearWork Plan
DevelopProgram Goalsand Objectives
Adopt
Budget
Monitor Programs andAdjust asNecessary
Establish KeyPerformance Indicators and Estimate Costs
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 February, 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
by program managers to the Governing Board and public at a public workshop in April 2023.
Establish Key Performance Indicators and 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.
Program Monitoring and 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.
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.
EAST VALLEY WATER DISTRICT | 43
Scan this QR code to view
a copy of the 2023-24
Five-Year Work Plan.
[FINANCIAL SUMMARY]
FY 2023-24 BUDGET | 44
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.
Budget Cycle Calendar
June 28, 2023 FY 2023-24 Budget Adoption
November 8, 2023 First Quarter FY 2023-24 Budget Review at Public Board Meeting
January 25, 2024 Budget Meeting to Distribute FY 2024-25 Worksheets to Program Managers
February 14, 2024 FY 2023-24 Mid-Year Budget Review at Public Board Meeting
February 26 -
March 15, 2024 Discuss FY 2024-25 Goals & Objectives with Program Managers
March 5 & 12, 2024 FY 2024-25 Capital Outlay and Capital Improvement Program Planning Meeting
March 28, 2024 FY 2024-25 New Position Requests, Program Goals & Objectives and Budget
Requests, Capital Outlay, and CIP Requests
April 10, 2024 FY 2024-25 Proposed Goals and Objectives Workshop at Public Board Meeting
April 22-25, 2024 FY 2024-25 Budget Review with Executive Managers and General Manager/CEO
April 24, 2024 FY 2024-25 Revenue Projection Workshop at Public Board Meeting
May 28, 2024 CAC FY 2024-25 Budget Review
May 31, 2024 FY 2024-25 Budget Complete with all Revisions
June 12, 2024 FY 2024-25 Budget Presentation at Public Board Meeting
June 26, 2024 FY 2024-25 Budget Adoption at Public Board Meeting
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.
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 GAAP 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 GAAP 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 a GAAP basis; shown
as a current expenditure on a Budget basis.
• Capital Outlay and Construction costs are capitalized and expensed over the useful life of the asset on a GAAP
basis; shown as a current expenditure on a Budget basis.
• Depreciation is recorded annually to expense the cost of a capital asset over its useful life on a GAAP basis but
is not contemplated on the Budget basis.
• 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.
EAST VALLEY WATER DISTRICT | 45
The District follows the GAAP requirement that enterprise funds use the full accrual basis of accounting.
[FINANCIAL SUMMARY]
FY 2023-24 BUDGET | 46
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 standards of Title 22 of the California Code of
Regulations and conveys recycled water for groundwater replenishment.
Currently, wastewater flows are collected by a large interceptor line and sent to the SBMWD Treatment Plant where the
wastewater is treated and released into the Santa Ana River. However, beginning in FY 2023-24, the District will begin
operating its own reclamation facility known as the Sterling Natural Resource Center. Recycled water will be sent to the
Weaver Basins, owned by the San Bernardino Valley Municipal Water District, for recharge into the Bunker Hill Basin.
RAW WATER SOURCES WATER PRODUCTION
PLANTS
DISTRIBUTION &
STORAGE
COLLECTION &
CONVEYANCE
WATER FUND
WATER RECLAMATION
WASTEWATER FUND
RECYCLED WATER
DISCHARGE
CITY OF SAN BERNARDINO
SEWER TREATMENT AND WATER
RECLAMATION FACILITIES
Future
Present
COLLECTION &
CONVEYANCEWASTEWATER TREATMENT
STERLING NATURAL
RESOURCE CENTER
CITY OF SAN BERNARDINO
CUSTOMER USE
OFF
ON
RECYCLED WATER
RECHARGE
SNRC FY 202324
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.
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.
EAST VALLEY WATER DISTRICT | 47
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 City of San BernardinoWastewaterTreatment Expense
Wastewater Operations,Capital Expendituresand Debt Service
SharedAdministrationPrograms
Reclamation Operations,Capital Expendituresand Debt Service
Reclamation Fund
[FINANCIAL SUMMARY]
FY 2023-24 BUDGET | 48
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.
In the upcoming year, all funds will share in the cost of facilities maintenance functions, while the remaining centralized
function costs (Administration, Engineering, etc.) 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.
Below is a table illustrating the Fund/Program relationship for FY 2023-24:
Program Water Fund Wastewater Fund Reclamation Fund Total
1000 Governing Board $ 254,800 $ 109,200 $ - $ 364,000
2000 General Administration 959,000 411,000 - 1,370,000
2100 Human Resources 1,702,400 564,600 590,000 2,857,000
2200 Public Affairs 904,400 387,600 - 1,292,000
2300 Conservation 689,000 - - 689,000
3000 Finance & Accounting 940,800 403,200 - 1,344,000
3200 Information Technology 1,205,400 516,600 - 1,722,000
3300 Customer Service 1,304,100 558,900 - 1,863,000
3400 Meter Services 292,000 - - 292,000
4000 Engineering 999,600 428,400 - 1,428,000
5000 Water Production Administration 620,000 - - 620,000
5000-51 Wells 3,918,000 - - 3,918,000
5000-52 Boosters 1,026,000 - - 1,026,000
5000-54 Reservoirs 428,000 - - 428,000
5100 Water Treatment 1,082,000 - - 1,082,000
5200 Water Quality 546,000 - - 546,000
6000 Maintenance Administration 418,500 46,500 - 465,000
6100 Water Maintenance 2,826,000 - - 2,826,000
6200 Wastewater Collection - 867,000 - 867,000
6300 Water Reclamation - - 9,896,000 9,896,000
7000 Facilities Maintenance 1,011,000 405,000 607,000 2,023,000
7100 Fleet Maintenance 608,000 152,000 - 760,000
TOTAL OPERATING EXPENSES $ 21,735,000 $ 4,850,000 $ 11,093,000 $ 37,678,000
BUDGET SUMMARY
The budget for FY 2023-24 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 $47,424,000 in revenue during FY 2023-24 and has developed a budget plan to
allocate $37,678,000 toward funding of program operations, $3,376,000 toward the amortization of outstanding debt,
and $4,890,000 toward capital asset improvement and replacement. In addition, a $1,480,000 transfer to Reserves will
help build a reserve required by funding agreements with the State Water Resource Control Board.
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.
EAST VALLEY WATER DISTRICT | 49
Water Fund Wastewater Fund Reclamation Fund FY 2023-24 Total
REVENUE / SOURCES
Water Sales $ 18,345,000 $ - $ - $ 18,345,000
Meter Charges 9,996,000 - - 9,996,000
Penalties 450,000 60,000 - 510,000
Wastewater System Charges - 5,968,000 - 5,968,000
Wastewater Treatment Charges - - 10,279,000 10,279,000
Other Operating Revenue 42,000 - 1,944,000 1,294,000
Miscellaneous Revenue 220,000 20,000 100,000 340,000
Gain on Disposal of Assets - - - -
TOTAL REVENUE / SOURCES $ 29,053,000 $ 6,048,000 $ 12,323,000 $ 47,424,000
OPERATING EXPENSES
Employment Expenses $ 9,227,500 $ 2,544,700 $ 1,581,800 $ 13,354,000
Water Costs 768,000 - - 768,000
Contracted Treatment Costs --3,700,000 3,700,000
Power Costs 3,165,000 - 2,000,000 5,165,000
Materials & Supplies 1,331,500 133,100 751,400 2,216,000
Contract Services 6,827,800 2,066,400 3,038,800 11,933,000
Other Operating Expenses 415,200 105,800 21,000 542,000
TOTAL OPERATING EXPENSES $ 21,735,000 $ 4,850,000 $ 11,093,000 $ 37,678,000
OTHER EXPENSES
Debt Principal $ 2,217,000 $ 175,000 $ - $ 2,392,000
Debt Interest Expense 886,000 98,000 - 984,000
Other Non-Operating Expense - - - -
Capital Outlay 695,000 260,000 210,000 1,165,000
Capital Improvement Program 3,425,000 300,000 - 3,725,000
Transfer to (from) Reserves 95,000 365,000 1,020,000 1,480,000
TOTAL OTHER EXPENSES $ 7,318,000 $ 1,198,000 $ 1,230,000 $ 9,746,000
TOTAL OPERATING/
OTHER EXPENSES $ 29,053,000 $ 6,048,000 $ 12,323,000 $ 47,424,000
NET SURPLUS (DEFICIT) $ - $ - $ - $ -
[FINANCIAL SUMMARY]
FY 2023-24 BUDGET | 50
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:
Revenue History and Forecast (In Millions)
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 2023-24projectedrevenue
39 %
WaterSales
2%
Other Charges21%MeterCharges 4%
SNRC Non-RateRevenue
22%
WastewaterTreatment
12%
WastewaterReclamation
FY 2020-21
Actual
FY 2021-22
Actual
FY 2022-23
Estimated
FY 2023-24
Projected
FY 2024-25Projected FY 2025-26Projected
Reclamation RevenueWastewater RevenueWater Revenue
$28.5 $27.7 $27.7 $28.3 $29.2 $30.0
$4.7 $4.8 $5.6 $6.0 $6.3 $6.5
$8.5 $9.8 $10.0 $12.2 $14.5 $15.0
$5M
$10M
$15M
$20M
$25M
$30M
Forecasting revenue
projections requires
consideration of external
factors that could impact the
demand for water services.
Elements factored into the
FY 2023-24 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.
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 and record
snowpack in 2023 has refilled state reservoirs allowed the State Water Project to announce that they can deliver
100% allocation of requested water supplies from state water contracting agencies. In addition, the California Governor
issued Executive Order N-5-23 rolling back drought emergency provisions and allowing the District to move from level
2 to level 1 of the District Water Shortage Contingency Plan, which only obligates the District to conduct outreach and
education about efficient water use.
Construction within the region has been picking up over the last three 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 could slow market absorption of new homes and in turn, slow
new development plans.
The most significant factor affecting District revenue in FY 2023-24 will be the opening of the SNRC Water Reclamation
facility. With this plant online, the District will no longer send wastewater to the SBMWD for treatment but will treat and
recycle wastewater for groundwater recharge. 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 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. There is a potential to sell excess
power produced by the digesters 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 2023-24 revenue projections.
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 1 HCF is equal to 748 gallons.
The District bills for water consumption in three ascending ‘Water Budget’ rate tiers. Therefore, as customer 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.
EAST VALLEY WATER DISTRICT | 51
[FINANCIAL SUMMARY]
FY 2023-24 BUDGET | 52
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 or landscaped area associated with their domestic
meter, receive Tier 1 and 2 water budgets based on the business’ historical water usage, with excess usage billed at
the Tier 3 rate.
The table below summarizes water sales volume (HCF) by billing tier for the last three years, and also includes
conservative projections for FY 2023-24.
CUSTOMER CONSUMPTION IN HUNDRED CUBIC FEET
Water consumption during FY 2023-24 is expected to remain the same as FY 2022-23. Although the rate adjustment
mentioned above has one remaining phase, taking effect on January 1, 2024, between evolving State guidelines that
will require water agencies, such as East Valley Water District, to enforce stricter water conservation measures and the
rate adjustments, we anticipate consumption to remain similar to prior year.
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 $18.35 million for FY 2023-24. 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.
WATER SALES TRENDS
FY 2020-21
Actual
FY 2021-22
Actual
FY 2022-23
Estimated
FY 2023-24
Budget
Tier 1 3,696,721 3,578,209 3,522,058 3,671,000
Tier 2 2,659,770 2,672,552 2,212,894 2,342,000
Tier 3 1,237,088 1,258,585 1,163,158 1,108,000
TOTAL 7,593,579 7,509,346 6,898,110 7,121,000
$16,902,370
$19,305,631 $18,472,875 $17,600,000 $18,345,000
$2M
$6M
$10M
$14M
$18M
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Estimated
FY 2023-24
Budget
Tier 1 Tier 2 Tier 3
EAST VALLEY WATER DISTRICT | 53
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 a Cost of Service Analysis and Rate Study completed in January 2021. Adjustments
proposed by the January study were adopted by the District in May 2021 and the second of three adjustments became
effective in January of 2023. The remaining adjustment becomes effective in January of 2024.
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 2024 have been included in Meter Charge projections which
are $9,996,000 for FY 2023-24.
METER CHARGES
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
2021, and then were adopted at a public hearing in May 2021. The study proposed a change in how multi-family
residential accounts are billed, changing from a method based predominantly on water usage of the master account,
to a fixed charge per dwelling unit. This change brings billing for multi-family residential accounts into alignment with
the methodology in place for single-family residential accounts. For District wastewater services, there are currently
19,325 single-family units and 10,654 multi-family units, and these unit counts multiplied by the fixed charges were used
to project revenue.
There are 620 commercial accounts that will continue to be billed 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.
[FINANCIAL SUMMARY]
$9,023,267
$9,217,003
$9,192,297
$9,766,193
$9,996,000
$8.6M
$8.8M
$9M
$9.2M
$9.4M
$9.6M
$9.8M
$10M
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Estimated
FY 2023-24
Budget
FY 2023-24 BUDGET | 54
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 2023-24 is $5,968,000. 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 currently delivered to and treated by SBMWD facilities in accordance
with a Joint Powers Agreement (JPA). Under the JPA, the SBMWD establishes wastewater treatment rates to be paid
for services provided to District customers.
However, the District is nearing completion on construction of its own water reclamation facility known as the Sterling
Natural Resource Center (SNRC) that, when operational, will allow the District to treat its own wastewater and no longer
contract with the SBMWD. The SNRC is scheduled for completion in December 2023.
In anticipation of SNRC operations, the District adopted its own wastewater treatment rates which became effective in
May 2022. Phase two of rate adjustments were implemented in January 2023 and will be followed by an adjustment in
January 2024. Accordingly, FY 2023-24 treatment revenue projections are based on rates established by the District.
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
2023-24 are $10,279,000.
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Estimated
FY 2023-24
Budget
Single-Family Multi-Family Commercial
$4,647,347 $4,705,683 $4,828,525
$5,582,882 $5,968,000
$1M
$2M
$3M
$4M
$5M
$6M
EAST VALLEY WATER DISTRICT | 55
WASTEWATER TREATMENT REVENUE
SNRC Non-Rate Revenue
Commencement of operations at the Sterling Natural Resource Center in Fall 2023 will not only mean that the District
will assess and collect its own wastewater treatment revenue, but other revenue streams associated with the anaerobic
digesters and recycled water will begin to be realized. Explanations of those revenues and projections for FY 2023-24
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 the San Bernardino Valley Municipal Water District (Valley District). Valley District 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 6,000 acre feet annually when the plant is in full operation, but with fall of 2023 as
the target for the SNRC to be in full operation, the District estimates that a reduced yield of 4,000 acre feet of recycled
water will be produced and recharged for which it will receive an LRIP Contribution from Valley District of $692,000.
WASTE 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 during six months of operation in FY 2023-24, approximately 15.40 million gallons of liquid waste
will be accepted at the SNRC generating tipping fees of approximately $1,232,000.
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 the SNRC’s startup year.
[FINANCIAL SUMMARY]
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Estimated
FY 2023-24
Budget
Single-Family Multi-Family Commercial
$8,496,012 $8,456,508
$9,764,357 $10,083,076 $10,279,000
$2M
$4M
$6M
$8M
$10M
FY 2023-24 BUDGET | 56
The table below provides a summary of all projected non rate revenue from the SNRC for FY 2023-24.
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 was 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 $504,000 in the upcoming year.
Other Income included in FY 2023-24 projections are facilities rentals, interest, and miscellaneous revenue. Projections
for interest revenue have decreased as yields are expected to decline, and the amount of investible funds held by the
District will be depressed as the District continues to pay the construction costs of the SNRC and then must wait 30 to
60 days for reimbursement from the State Water Resources Control Board.
In total, the FY 2023-24 projection for Other Charges and
Income is $912,000, 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 2022-23 Fee Per Unit Non-Rate
Revenue Total
LRIP Contribution Acre Foot (AF) 4,000 AF $ 173.00 $ 692,000
Tipping Fees Gallon 15.40 MG 0.08 1,232,000
Power Sales kWh - 0.13 -
$ 1,924,000
other charges
$320,000Investment Income
$252,000Disconnect Notice Charge
$180,000Delinquent Fees
$72,000Reconnect Fees
$46,000Misc. and Other
$42,000Initiation of Service
The District has successfully implemented procedures to reduce the number of service disconnections.
EAST VALLEY WATER DISTRICT | 57
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 on the Budget Summary
on page 53. 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 73 full-time employees (FTEs) and 2 part-time
employees, and also includes District contributions toward health insurance for current retirees. Two of the budgeted
FTE positions are new positions related to the Sterling Natural Resource Center and will not be filled until mid-year of
FY 2023-24, after the District has commenced operations at the plant.
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.
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 2023-24 in addition to pay scale step increases of 2.5% available for
employees who have not reached the top step in their pay range, subject to annual performance evaluations. With the
new SNRC positions, and the terms of the new MOU, projected salaries expense for FY 2023-24 is $9,141,000.
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 comp 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 15.46 % of payroll, 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
[FINANCIAL SUMMARY]
expenditures by category
$15,343,000Contract Services
$13,354,000Employment Expenses
$5,455,000Power Costs
$4,890,000Capital Expenditures
$3,376,000Debt Service
$422,000Other Operating
$768,000Water Costs
$2,336,000Materials & Supplies
$1,480,000Transfer to Reserves
FY 2023-24 BUDGET | 58
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
fiscal year 2023-24, District paid costs related to the retirement plan are projected to increase 2.3%.
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
decreased 5.33% between 2022 and 2023, 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 2023-24. 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 2.5% to $4,162,000 for FY 2023-24, while contributions toward
retiree health insurance were determined by an actuary to be $351,000.
SALARIES AND BENEFITS
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Estimated
FY 2023-24
Budget
Salaries Benefits Retiree Health Benefit
$2M
$4M
$6M
$8M
$10M
$12M $10,665,117 $11,673,338 $12,303,074 $11,110,404
$13,654,000
EAST VALLEY WATER DISTRICT | 59
Water Costs
The District anticipates customer demand for approximately 16,346 acre-feet, or 5.33 billion gallons, of water during the
2023-24 Fiscal Year. This is the same demand used for projections in FY 2022-23, but actual demand will fall short of
projection in the prior due to the very wet and cold winter season experienced throughout California in early 2023. To
the contrary, a very hot ‘El Niño’ summer and fall is expected in 2023 which should push customer demand higher in
FY 2023-24.
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 $768,000 for FY 2023-24.
WATER COSTS
Groundwater
The District obtains approximately 75% 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 Groundwater
Council (GC). This is a collaborative effort formed in January 2018 for the purpose of purchasing imported
water to restore and maintain sustainable groundwater levels. The GC has two components – a water
cost assessment that is based on historical pumping levels by each of the signers to the GC Framework
Agreement, and an Operations and Maintenance component to fund the operations of the GC. The
District’s total assessment for FY 2023-24 is projected to be $351,000.
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 7,140 shares and projects that the assessment will be $10 per share and has budgeted
$71,400 accordingly.
Purchased Water
Paid to Valley District to buy State Water Project at $126 per acre foot (AF) when available. Due to the
high volume of rainfall and snow pack in Northern California last winter, 100% 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 2023-24.
[FINANCIAL SUMMARY]
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Estimated
FY 2023-24
Budget
Purchased Water GW Council Assessment Surface Water
$100K
$200K
$300K
$400K
$500K
$534,180 $506,879
$373,096
$548,336 $768,000
FY 2023-24 BUDGET | 60
Contracted Wastewater Treatment
As outlined in the discussion about wastewater treatment revenue, the District will transition from contracting with the
SBMWD, to commencing its own wastewater treatment operations at the new Sterling Natural Resource Center in Fall
2023. The transition of wastewater flows will begin in August by diverting approximately a quarter of wastewater flows
to the new plant. Every two weeks another quarter of the flows will be diverted until full flows are received at the SNRC
in December 2023. While this phased approach to diverting flows is taking place, some flows will continue going to
the SBMWD’s treatment facilities and the District will be charged for those scaled down treatment services. Projected
payments to the SBMWD in FY 2023-24 for approximately 4 months of treatment services are $3,700,000.
CONTRACTED WASTEWATER TREATMENT COSTS
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. In this year of transition, the SNRC will only be operational for
approximately ten months, ‘in-house’ costs are expected to include contract services, power, salaries and benefits, and
materials and supplies.
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 2023-24 as the new plant commences operations
in Fall 2023, gradually increasing capacity until all wastewater generated by District customers is being converted to
recycled water.
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.
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Estimated
FY 2023-24
Budget
$8,536,014 $8,456,508 $9,084,061
$8,307,804
$3,700,000
$3M
$5M
$7M
$9M
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Estimated
FY 2023-24
Budget
Wells Boosters
$1M
$2M
$3M
$4M
$5M
Water Treatment Wastewater Treatment
$1,588,178 $2,267,909 $2,565,150
$3,336,380
$5,165,000
EAST VALLEY WATER DISTRICT | 61
The addition of the SNRC had the potential to more than double the District’s power demand. This increased the
District’s decision to add anaerobic digesters to the SNRC project in order 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 2023-24, the District expects to use all power generated to run the plant and that the SNRC will be a net user
of power. A budget of $2,000,000 has been established for net power costs at the SNRC for FY 2023-24.
Power costs for water production were approximately $3.0 million in FY 2022-23. These costs were higher than
projected due to Edison rate increases, and unexpected ‘catch-up’ bills submitted by Edison that resulted from billing
issues they encountered when migrating to a new billing system. For FY 2023-24 the District is projecting higher
demand for water than in FY 2022-23, which was an unusually wet year as explained under Water Costs. The increased
demand, exacerbated by the loss of multiple wells that are too close to the new regional recycled water recharge, will
make it difficult to avoid peak time-of-use power rates until replacement wells can be placed in service.
Based on the above, the proposed FY 2023-24 budget for power costs has been adjusted higher to $3,165,000.
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 19% to $2,216,000 for FY 2023-24.
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.
[FINANCIAL SUMMARY]
materials& supplies
$1,030,000Chemicals
$769,000Plant Repair Materials
$277,000Printed Materials
$51,000Oce Supplies
$89,000Small Tools
FY 2023-24 BUDGET | 62
Contract Services
(Other Than Contracted Treatment)
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 34% to $11,933,000 for FY 2023-
24. Significant variances between prior year
contract services costs and projections for the
upcoming year include:
• Information Technology has added $235,000 to its contract services budget to account for the cost
of maintenance and support of new IT infrastructure and upgrades at the SNRC and Headquarters
campuses, and to implement Cybersecurity initiatives.
• Startup of operations at the new SNRC water reclamation facility will add over $1.7 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 2023-24 total $542,000 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.
other operating expenses
$147,000ProfessionalDevelopment
$9,000Other
$49,000Meetings
$120,000Conservation Rebates
$41,000EmployeeRecognition
$176,000Memberships & Dues
contractservices
$7,210,000Professional &Support Services
$2,385,000Utilities & Other
$1,755,000Insurance
$202,000Printing &Mailing
$381,000Building &LandscapeMaintenance
EAST VALLEY WATER DISTRICT | 63
DEBT OVERVIEW
The District’s debt service payments in FY 2023-24 will be $3,376,000 on total outstanding debt of $35,274,000 as of
June 30, 2023. Not included in this amount is $143,231,000 in loan funding borrowed from the State Water Resources
Control Board for the ongoing construction of the SNRC water reclamation plant. This project will be complete in
December 2023, with debt service of approximately $7.5 million annually due to begin one year after filing of a Notice
of Completion.
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 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 2010 bonds had been issued to finance pipelines and other infrastructure projects.
The 2020A bonds outstanding total $15,050,000, and bear (tax-exempt) 3.0% to 5.0% interest.
• 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 $13,060,000, and bear (taxable) interest of 0.42% to 2.93%.
STATE WATER RESOURCES CONTROL BOARD (SWRCB) LOANS
SWRCB loans are utilized to finance the construction or upgrade to 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 $5,135,000 bearing interest at 0%.
• 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 2023, approximately $143.2 million has been drawn
down. Interest on the loan is 1.8% and annual debt service on the full loan will be approximately $7.5 million
annually. The debt service on this loan is not included in the tables on the following pages since the facility is
still under construction.
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%.
[FINANCIAL SUMMARY]
FY 2023-24 BUDGET | 64
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 10 years and debt service
payments are paid out of energy cost savings.
• U.S. Bank Loans: Borrowed to finance construction and implementation of several energy conservation
measures. The total loan outstanding is $444,000 at an interest rate of 2.3%. This loan will be paid off in
March 2024.
• Valley District Loan: Borrowed from the San Bernardino Valley Municipal Water District (Valley District), the
region’s State Water Project (SWP) contractor, for the construction of an SWP turnout and hydro-electric
generation facility leading to the District’s treatment plant - Plant 134. Loan principal outstanding of $1,275,000
bears interest at the Local Agency Investment Fund (LAIF) apportionment rate, currently 2.74%. Debt service is
payable annually through February 2026 out of water net revenue and energy cost savings.
Impact of Current Debt Levels
A schedule of FY 2023-24 debt service payments, by debt issue, is shown in the following schedule.
DEBT SERVICE PAYMENTS
As detailed above, debt service for FY 2023-24 on all outstanding District debt is $3,376,000. This amount represents
7.1% of the District’s total budget for FY 2023-24. 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.
WATER FUND WASTEWATER FUND
Debt Issue Principal Interest Principal Interest Total
2020A Refunding
Revenue Bonds $ 990,000 $ 616,000 $ - $ - $ 1,606,000
2020B Refunding
Revenue Bonds 105,000 224,000 175,000 98,000 602,000
SWRCB Loan
Treatment Plant 134 234,000 - - - 234,000
SWRCB Loans
Assessment Districts 19,000 - - - 19,000
US Bank Loans 444,000 8,000 - - 452,000
Valley District Loan 425,000 38,000 - - 463,000
TOTAL $ 2,217,000 $ 886,000 $ 175,000 $ 98,000 $ 3,376,000
The District’s Debt Management Policy stipulates that debt may only be issued to finance capital projects.
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 2023, but for
which debt service is not yet being paid.
DEBT SERVICE THROUGH MATURITY
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 one year after completion of construction, which will be approximately
December 2023. As noted in other discussions about the fiscal impact of the SNRC in this document, wastewater
treatment services are currently provided by the SBMWD and payments under that contract are shown as Wastewater
Treatment operating expense. When the SNRC is operational, wastewater treatment payments to the SBMWD will be
replaced with labor, materials, and other direct treatment costs, and debt service.
The graph below presents total debt service on existing debt, and future SNRC loan payments, through maturity.
DEBT SERVICE
EAST VALLEY WATER DISTRICT | 65
WATER FUND WASTEWATER FUND
Fiscal Year Principal Interest Principal Interest Total
2023-24 $ 2,217,000 $ 886,000 $ 175,000 $ 98,000 $ 3,376,000
2024-25 1,808,000 813,000 175,000 97,000 2,893,000
2025-26 1,453,000 759,000 175,000 96,000 2,483,000
2026-27 1,063,000 715,000 180,000 94,000 2,052,000
2027-28 1,098,000 682,000 180,000 91,000 2,051,000
2029-33 6,029,000 2,832,000 945,000 406,000 10,212,000
2034-38 7,002,000 1,840,000 1,065,000 292,000 10,199,000
2039-43 8,032,000 809,000 1,215,000 131,000 10,187,000
2044-48 2,192,000 25,000 270,000 4,000 2,491,000
2049-53 - - - - -
TOTAL $ 30,894,000 $ 9,361,000 $ 4,380,000 $ 1,309,000 $ 45,944,000
-
$2M
$4M
$6M
$8M
$10M
Water Fund Wastewater Fund Reclamation Fund
20
2
3
-
2
4
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
[FINANCIAL SUMMARY]
FY 2023-24 BUDGET | 66
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 2022.
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.
The FY 2023-24 proposed Budget provides the net revenue to debt ratios shown in the table below.
DEBT SERVICE COVERAGE
Water
Fund
Wastewater
Fund
Reclamation
Fund Total
REVENUE
Sales and Services $ 28,341,000 $ 5,968,000 $ 10,279,000 $ 44,588,000
Other Charges 492,000 60,000 1,944,000 2,496,000
Interest & Miscellaneous Revenue 220,000 20,000 100,000 340,000
TOTAL REVENUES $ 29,053,000 $ 6,048,000 $ 12,323,000 $ 47,424,000
OPERATING EXPENSES
Programs $ 21,735,000 $ 4,850,000 $ 11,093,000 $ 37,678,000
TOTAL OPERATING EXPENSES $ 21,735,000 $ 4,850,000 $ 11,093,000 $ 37,678,000
NET REVENUE $ 7,318,000 $ 1,198,000 $ 1,230,000 $ 9,746,000
ANNUAL DEBT SERVICE $ 3,103,000 $ 273,000 $ - $ 3,376,000
DEBT COVERAGE RATIO 2.36 4.39 0.00 2.89
EAST VALLEY WATER DISTRICT | 67
[PAGE LEFT BLANK]
Intentionally
FY 2023-24 BUDGET | 68
FUND EQUITY & RESERVES
As previously discussed, the District 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 includes unspent proceeds from issuance of long-term debt and developer paid capacity fees.
These funds 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.
Accordingly, appropriations from Restricted funds will appear in the District’s capital budget when appropriate.
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 Policy, which is summarized on pages 79-84. The policy establishes three
designations for unrestricted equity, and has defined their purpose, order of priority for funding, target levels, and uses.
Those unrestricted designations are the:
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 up to a target level of $10 million. Finally, a Rate Stabilization
Reserve has been created to offset unexpected revenue shortfalls at a target level of 45 days of budgeted operating
expenses. If all funds have been fully funded, the remainder reverts to 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.
Invested in
Capital Assets Restricted Unrestricted
Operating
Reserve
Capital
Replacement
Reserve
Rate
Stabilization
Reserve
Enterprise Reserves
Water Fund Reserves
The Water Fund is projected to have $7,696,149 in Operating Reserves, $10,338,648 in Capital Replacement, and
$4,314,140 in Restricted Reserves. 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 adopted in May 2021 and become effective in three phases
on January 1st of each year, 2022 and 2023, and on January 1, 2024, in the upcoming fiscal year. 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. Both Unrestricted
Reserves, Capital Replacement and Operating Reserves continue to stay around target levels and the budget for FY
2023-24 projects a small surplus of $95,000 which can be added to these reserves.
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. Restricted reserve balances are budgeted to remain at $4,314,140. Changes in
this fund during the year will be reported at the mid-year budget review.
EAST VALLEY WATER DISTRICT | 69
Operating Reserve
Water Enterprise
Capital
Replacement Reserve
Capital
Replacement Reserve
Rate
Stabilization Reserve
Operating Reserve
Wastewater Enterprise
Rate
Stabilization Reserve
Capacity Fees Capacity Fees
Capital
Replacement Reserve
Operating Reserve
Water Reclamation Enterprise
Rate
Stabilization Reserve
Capacity Fees
Water Unrestricted Reserves Wastewater Unrestricted Reserves
Water Reclamation Unrestricted Reserves Restricted Reserves
[FINANCIAL SUMMARY]
FY 2023-24 BUDGET | 70
UNRESTRICTED AND RESTRICTED EQUITY — WATER
WATER RESERVES
FY 2019-20
Actual
FY 2020-21
Actual
FY 2021-22
Actual
FY 2022-23
Projected
FY 2023-24
Budget
WATER OPERATING RESERVE
Maximum Target Level
120 Days Operations $ 5,850,000 $ 6,025,000 $ 6,365,000 $ 6,645,000 $ 7,455,000
Beginning Fund Balance 6,484,818 6,489,732 6,031,622 8,066,773 7,601,149
Revenue 27,179,063 29,145,482 29,273,276 27,272,000 29,053,000
Operating/Non-Operating
Expenditures (18,717,810) (20,132,623) (22,435,689) (20,630,931) (22,621,000)
Capital Expenditures (4,132,028) (4,179,287) (5,131,241) (4,945,000) (4,120,000)
Debt Principal Payments (2,564,311) (2,393,628) (2,120,011) (2,161,693) (2,217,000)
Land Sale / Transfer
CIP From Wastewater - (6,298,054) 2,448,816 - -
Transfer to Other Reserves (1,760,000) 3,400,000 - - -
ENDING WATER
OPERATING RESERVE $ 6,489,732 $ 6,031,622 $ 8,066,773 $ 7,601,149 $ 7,696,149
WATER CAPITAL REPLACEMENT RESERVE
Minimum Target Level $ 10,000,000 $ 10,000,000 $ 10,000,000 $ 10,000,000 $ 10,000,000
Beginning Fund Balance 14,595,000 13,738,648 10,338,648 10,338,648 10,338,648
Transfer from Operating Fund 1,760,000 (3,400,000) - - -
Capital Expenditures (2,616,352) - - - -
ENDING WATER CAPITAL
REPLACEMENT RESERVE $ 13,738,648 $ 10,338,648 $ 10,338,648 $ 10,338,648 $ 10,338,648
TOTAL UNRESTRICTED
RESERVES - WATER $ 20,228,380 $ 16,370,270 $ 18,405,421 $ 17,939,797 $ 18,034,797
$20,228,380
$16,370,270 $18,405,421 $17,939,797 $18,034,797
$2,284,023 $2,576,874 $3,560,177 $4,314,140 $4,314,140 $5M
$10M
$15M
$20M
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Estimated
FY 2023-24
Budget
Unrestricted Restricted
Wastewater Fund Reserves
The Wastewater Fund is projected to have $2,144,956 in Operating Reserves, and $3,107,335 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–
only the operating reserve currently has a balance. The target levels established for each reserve designation, in
accordance with the District’s reserve policy, are also shown.
UNRESTRICTED AND RESTRICTED EQUITY — WASTEWATER
EAST VALLEY WATER DISTRICT | 71
FY 2019-20
Actual
FY 2020-21
Actual
FY 2021-22
Actual
FY 2022-23
Projected
FY 2023-24
Budget
WATER CAPACITY FEES
No Target Level $ - $ - $ - $ - $ -
Beginning Fund Balance 1,996,379 2,284,023 2,576,874 3,560,177 4,314,140
Fees Collected 287,644 292,851 983,303 753,963 -
Capital Expenditures - - - - -
ENDING WATER
CAPACITY FEES $ 2,284,023 $ 2,576,874 $ 3,560,177 $ 4,314,140 $ 4,314,140
TOTAL RESTRICTED
RESERVES - WATER $ 2,284,023 $ 2,576,874 $ 3,560,177 $ 4,314,140 $ 4,314,140
FY 2019-20
Actual
FY 2020-21
Actual
FY 2021-22
Actual
FY 2022-23
Projected
FY 2023-24
Budget
WASTEWATER OPERATING RESERVE
Maximum Target Level
120 Days Operations $ 1,250,000 $ 1,250,000 $ 1,980,000 $ 1,550,000 $ 1,615,000
Beginning Fund Balance 3,306,271 2,311,575 2,540,325 538,315 1,779,956
Revenue 4,784,495 4,846,067 5,189,870 6,679,728 6,048,000
Operating/Non-Operating
Expenditures (4,698,424) (4,920,069) (4,070,081) (4,489,720) (4,948,000)
Capital Expenditures (980,767) (5,885,302) (2,951,799) (773,367) (560,000)
Debt Principal Payments (100,000) (110,000) (170,000) (175,000) (175,000)
Transfer CIP to Water - 6,298,054 - - -
Transfer to Other Reserves - - - - -
ENDING WASTEWATER
OPERATING RESERVE $ 2,311,575 $ 2,540,325 $ 538,315 $ 1,779,956 $ 2,144,956
TOTAL UNRESTRICTED
RESERVES - WASTEWATER $ 2,311,575 $ 2,540,325 $ 538,315 $ 1,779,956 $ 2,144,956
[FINANCIAL SUMMARY]
FY 2023-24 BUDGET | 72
UNRESTRICTED RESERVES
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 has been established
beginning 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. These costs included
preliminary studies and design and defending litigation. New rate adjustments were adopted in May 2021, including
rates for the new water reclamation plant nearing completion, and became effective in May 2022. The new rates, which
include three phases, should allow for building towards reserve targets over the next three years. The FY 2023-24
budget projects a small surplus of $365,000 will be added to the operating reserve by the end of the fiscal year.
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 restricted reserve balance is projected to remain at $3,107,335 in fiscal year 2023-24 but
could possibly increase due to construction activity within the District.
WASTEWATER RESERVES
FY 2019-20
Actual
FY 2020-21
Actual
FY 2021-22
Actual
FY 2022-23
Projected
FY 2023-24
Budget
WASTEWATER CAPACITY FEES
No Target Level $ - $ - $ - $ - $ -
Beginning Fund Balance 636,995 1,696,736 1,837,888 2,701,500 3,107,335
Fees Collected 1,059,741 141,152 863,612 405,835 -
Debt Issued - - - - -
Capital Expenditures - - - - -
ENDING WASTEWATER
CAPACITY FEES $ 1,696,736 $ 1,837,888 $ 2,701,500 $ 3,107,335 $ 3,107,335
TOTAL RESTRICTED
RESERVES - WASTEWATER $ 1,696,736 $ 1,837,888 $ 2,701,500 $ 3,107,335 $ 3,107,335
$2,311,575 $2,540,325 $2,701,500
$3,107,335 $3,107,335
$500K
$1M
$1.5M
$2M
$2.5M
$3M
Unrestricted Restricted
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Estimated
FY 2023-24
Budget
$1,696,739 $1,837,888
$538,315
$1,779,956
$2,144,956
EAST VALLEY WATER DISTRICT | 73
Water Reclamation Fund Reserves
The Water Reclamation Fund is a new fund established to account for the revenues and expenditures related to the
Sterling Natural Resource Center water reclamation plant which will begin operation around Fall 2023. Target levels will
be established as they are for other funds, in accordance with the District’s Reserve Policy.
UNRESTRICTED AND RESTRICTED RESERVES — RECLAMATION
FY 2019-20
Actual
FY 2020-21
Actual
FY 2021-22
Actual
FY 2022-23
Projected
FY 2023-24
Budget
RECLAMATION OPERATING RESERVE
Maximum Target Level
120 Days Operations $ - $ - $ - $ 4,200,000 $ 4,200,000
Beginning Fund Balance - - - - 50,132
Revenue 8,496,012 8,456,508 9,764,357 10,062,300 12,323,000
Operating/Non Operating
Expenditures (8,496,012) (8,456,508) (9,764,357) (10,012,168) (11,133,000)
Capital Expenditures - - - - (190,000)
Debt Principal Payments - - - - -
Transfer to Debt Service Reserve - - - - (1,000,000)
ENDING RECLAMATION
OPERATING RESERVE $ - $ - $ - $ 50,132 $ 50,132
TOTAL UNRESTRICTED
RESERVES - RECLAMATION $ - $ - $ - $ 50,132 $ 50,132
RECLAMATION DEBT SERVICE RESERVE
Target - One Years
Annual Debt Service $ - $ - $ - $ - $ 7,500,000
Beginning Fund Balance - - - - -
Transfer From Operating Reserve - - - - 1,000,000
Debt Service Expenditures - - - - -
ENDING RECLAMATION
DEBT SERVICE RESERVE $ - $ - $ - $ - $ 1,000,000
RECLAMATION CAPACITY FEES
No Target Level $ - $ - $ - $ - $ -
Beginning Balance 646,583 2,518,595 1,860,609 2,736,642 3,148,465
Capacity Fees Received 1,872,012 143,182 876,033 411,823 -
Expenditures - (801,168) - - -
ENDING RECLAMATION
CAPACITY FEES $ 2,518,595 $ 1,860,609 $ 2,736,642 $ 3,148,465 $ 3,148,465
TOTAL RESTRICTED
RESERVES - RECLAMATION $ 2,518,595 $ 1,860,609 $ 2,736,642 $ 3,148,465 $ 4,148,465
[FINANCIAL SUMMARY]
FY 2023-24 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. The FY 2023-24 activity shown in the previous table is based on budget and
projections.
RESTRICTED RESERVES
The table includes balances and activity for restricted Wastewater Treatment capacity fees, which belong to the Water
Reclamation Fund and the accumulation of a Debt Service reserve. 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 (the Target Level). For this reason, funding of the Debt Service
reserve will take priority over funding of the Operating Reserve until the required target level is reached.
RECLAMATION RESERVES
Unrestricted Restricted
$50,132 $50,132
$2,518,595
$1,860,609
$2,736,642
$3,148,465
$4,148,465
$500K
$1M
$1.5M
$2M
$2.5M
$3M
$3.5
$4M
FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Estimated
FY 2023-24
Budget
Setting aside reserve funding enhances organizational flexibility to prioritize and respond to capital needs.
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 considers 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.
• Construction of a water recycling plant (SNRC).
• Identify alternative water supplies.
• Access and utilize alternative energy supplies.
• Meet all water quality standards; and
• Replace aging pipelines and increase water storage capacity.
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.
[FINANCIAL SUMMARY]
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
• Conduct Cost of Service Analysis
for Rates
• Pursue Alternative Funding Sources
Construct SNRC for
Recycled Water Supply
• Digesters at SNRC will
provide non-rate revenue
streams (energy sales,
tipping fees) that will help
ensure fiscal sustainability
• Identify Opportunities to Optimize
Natural Resources
• Enhance Planning Efforts that
Respond to Future Demand
• Pursue Alternative Funding Sources
Find/Utilize
Additional Water Supply
• Recycled water from SNRC
will provide sustainable
supply for recharge
• Complete construction of SNRC
• Strengthen Regional, State and
National Partnerships
FY 2023-24 BUDGET | 76
User Rates & Development Fees From Reserves
The District has updated all water and wastewater user rates, development capacity fees, and miscellaneous fees and
charges within the last three fiscal years.
Capacity Fees were updated in December 2019 and are based on an independent capacity fee study. The adopted
fees include a provision for annual adjustment each July based on the prior calendar year’s Construction Cost Index.
Water and wastewater utility rates, and miscellaneous fees and charges, were adopted in May 2021. The utility rates
were based on a five year Cost of Service Analysis and financial model, that considered the capital improvement
projects including the construction of a new surface water treatment plant at the east end of the District. Remaining
rate adjustments will occur in two phases on January 1 of each year 2023 and 2024. Utility rates established in May
2021 should support District operations for a five year period with updates to be presented to the Governing Board for
consideration in 2025.
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.
Construction of the SNRC
Construction on the SNRC will be completed during FY 2023-24, including anaerobic digesters capable of generating
three megawatts of electrical power. In order to generate this amount of electricity, sludge resulting from wastewater
treatment will be supplemented by high grade food waste accepted from waste haulers, for which the District expects
to receive tipping fees. Power cost offsets, tipping fees, and revenue from the sale of recycled water for recharge to
the Groundwater Basin Watermaster are projected to total $7.2 million when the SNRC reaches full capacity. When
combined with wastewater treatment fees of approximately $9.5 million, total projected ‘revenue’ for the SNRC should
be sufficient to cover SNRC operating and debt service costs over the next 10 years.
Find/Utilize Additional Water Supply
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.
COST DRIVER ASSUMPTION LINK TO DISTRICT GOALS AND OBJECTIVES
Replace Aging Pipelines
• District’s rate structure will
provide revenue stability
and adequate funding
for pipeline replacement
program
• Develop Projects and Programs to
Ensure Safe and Reliable Services
• Dedicate Effort Toward System
Maintenance and Modernization
Water Quality Standards • Existing treatment
processes will ensure
product water meets
standards
• Conduct Source Water Assessment
• Plant 134 Solids Processing
Evaluation
EAST VALLEY WATER DISTRICT | 77
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 100%. Whereas, in the previous fiscal year, the supply provided was 5%
of requested. As a result, the District will experience fluctuating power costs to pump groundwater over the next five
years to offset the unreliability of available imported water.
Pipeline Replacement
As mentioned under User Rates, adopted rates included funding for the Capital Improvement Program including water
main replacements. Having the funding available to proactively replace pipelines, rather than reacting to reports of
system leaks will save on labor and water losses.
FY 2024-28 Forecast
REVENUE FORECAST
Water and wastewater rates are expected to slightly increase over the next five years due to modest building
development and approved rate adjustments. Rate adjustments were adopted in May 2021 and implemented in May
of 2022. Additional approved rate adjustments become effective in January 2024.
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 also include rate adjustments in January 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 Valley District for releasing 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 6,000 acre feet of recycled water and receive $173 per acre foot for a total annual
contribution from Valley District of $1,038,000. In addition, food waste haulers are projected to pay $.08 per gallon to
offload their waste at the SNRC digesters and haulers could deliver as much as 130,000 gallons per day for estimated
revenue of $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 December 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 and 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 decrease to 73 full-time positions in FY 2023-24 due to deferring three previously funded but vacant
positions as the District will focus on filling operator and maintenance positions at the new SNRC in the upcoming year.
[FINANCIAL SUMMARY]
FY 2023-24 BUDGET | 78
Over the next five years the three positions currently being deferred, and likely two other new positions, will be filled
taking the FTE count to 78. Those five positions include:
WASTEWATER TREATMENT
Due to supply chain delays, FY 2023-24 will be the final year in which the District contracts with the SBMWD for
the treatment of all its wastewater flows. While commissioning is underway, the District will continue to pay for these
contract services until the SNRC is fully permitted for operation. The phased transition will take place over three months
in late 2023, systematically diverting wastewater to the SNRC until it is handling all of the District’s flows in January
2024.
Thereafter, monthly contract payments to the SBMWD averaging more than $650,000 per month, or $8.6 million
annually, will cease and be replaced by operating costs associated with the SNRC.
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
generate electricity.
With all of these measures in place the District continues to experience increased power costs at plants without
alternative energy sources or generation capabilities. 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
late 2023. Thereafter an inflation adjustment factor of 3% has been used to project costs for 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
$10.8 million in FY 2024-25.
Associate
Engineer
Administrative
Analyst
Facilities
Maintenance
Worker
GIS
Technician
SCADA
Technician
EAST VALLEY WATER DISTRICT | 79
FY 2023-24 will be the year in which the first of ten annual installments of $700,000 will be made to the SBMWD to help
offset the loss of revenue from the District treatment facility. Termination payments will continue for 10 years. A schedule
of future debt service, including the State Revolving Fund loan from the SWRCB, is shown on page 69 of this document.
REVENUE FUNDED CAPITAL EXPENDITURES FORECAST
Revenue funded capital project 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.
Five Year Forecast – FY 2023-24 Through FY 2027-28
The following financial forecast is presented to provide a general understanding of how long-term goals will affect
operating revenue and expenditures over the next five years.
[FINANCIAL SUMMARY]
FORECAST FY 2023-24 FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28
REVENUE
Water Sales / Wastewater Collect $ 24,313,000 $ 24,800,000 $ 25,297,000 $ 25,804,000 $ 26,321,000
Wastewater Treatment 10,279,000 11,628,000 12,338,000 12,968,000 13,630,000
Meter Fees 9,996,000 10,096,000 10,197,000 10,299,000 10,402,000
LRIP Revenue 692,000 1,038,000 1,038,000 1,038,000 1,038,000
GW Assessment Offset - 396,000 396,000 396,000 396,000
Other Operating Charges 1,784,000 3,351,000 3,554,000 3,549,000 3,544,000
Investment Income 320,000 732,040 682,009 667,047 739,168
Capacity Fees - - - - -
Other Income 40,000 70,000 70,000 70,000 70,000
TOTAL REVENUE $ 47,424,000 $ 52,111,040 $ 53,572,009 $ 54,791,047 $ 56,140,168
EXPENDITURES
Labor & Benefits $ 13,354,000 $ 13,821,848 $ 14,210,638 $ 14,610,932 $ 15,022,795
Water Costs 768,000 1,164,000 1,164,000 1,164,000 1,164,000
Contracted Wastewater Treatment 3,700,000 700,000 700,000 700,000 700,000
Power Costs 5,165,000 5,060,000 4,958,000 4,959,000 4,963,000
Contract Services 11,933,000 12,291,598 12,660,476 13,040,500 13,431,945
Materials 2,216,000 2,296,970 2,381,419 2,468,839 2,559,331
Other Operating Expenses 422,000 425,055 428,173 431,355 434,606
Debt Service 3,376,000 10,962,500 10,486,500 10,088,500 9,649,500
Capital Outlay 1,165,000 1,200,000 1,200,000 1,200,000 1,200,000
Capital Improvement Program 3,725,000 5,730,000 5,745,000 3,625,000 5,125,000
TOTAL EXPENDITURES $ 45,944,000 $ 53,771,971 $ 54,054,204 $ 52,408,126 $ 54,370,178
CHANGE IN EQUITY $ 1,480,000 $ (1,660,931) $ (482,195) $ 2,382,921 $ 1,769,990
BEGINNING
UNRESTRICTED EQUITY $ 22,868,000 $ 24,348,000 $ 22,687,069 $ 22,204,874 $ 24,587,795
ENDING
UNRESTRICTED EQUITY $ 24,348,000 $ 22,687,069 $ 22,204,874 $ 24,587,795 $ 26,357,785
FY 2023-24 BUDGET | 80
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EAST VALLEY WATER DISTRICT | 81
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Budget based rates promote water efficiency and are based
on the cost of service while remaining equitable and fair.
FY 2023-24 BUDGET | 82
EAST VALLEY WATER DISTRICT | 83
WATER FUND
Rates
The District has taken many steps to encourage water use efficiency and water supply reliability, and accordingly has
adopted 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 2021, a public hearing was held in accordance with Proposition 218, at the hearing the Governing Board adopted
rates that would adjust over a three-year period beginning January 1, 2022.
COMMODITY CHARGES
MONTHLY METER CHARGES
Rates FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
Tier 1 $ 1.83 $ 1.98 $ 2.04 $ 2.11
Tier 2 2.61 2.54 2.62 2.70
Tier 3 3.64 3.93 4.05 4.18
Meter Size FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
5/8 inch $ 23.06 $ 24.01 $ 24.74 $ 25.49
3/4 inch 29.27 30.85 31.78 32.74
1 inch 41.71 44.52 45.86 47.24
1 1/2 inch 72.81 78.69 81.06 83.50
2 inch 110.13 119.70 123.30 127.00
3 inch 228.30 229.05 235.93 243.01
4 inch 402.44 352.07 362.64 373.52
6 inch 819.14 693.79 714.61 736.05
8 inch 1,503.25 1,923.98 1,981.70 2,041.16
FY 2023-24 BUDGET | 84
MONTHLY FIRE LINE SERVICE CHARGES
PROJECTED TIER REVENUE BY CUSTOMER CLASS
WATER SALES
The table below projects the amount of water to be produced for FY 2023-24. 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)
Meter Size FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
1 inch $ 8.78 $ 8.78 $ 8.78 $ 8.78
1.5 inch 13.18 13.18 13.18 13.18
2 inch 17.57 17.57 17.57 17.57
3 inch 26.35 26.35 26.35 26.35
4 inch 35.14 35.14 35.14 35.14
6 inch 52.7 52.7 52.7 52.7
8 inch 70.27 70.27 70.27 70.27
10 inch 87.84 87.84 87.84 87.84
Customer Class Tier 1 Tier 2 Tier 3 Total
Residential $ 4,488,000 $ 3,833,000 $ 2,136,000 $ 10,457,000
Multi-Family 2,063,000 1,024,000 950,000 4,037,000
Commercial 1,063,000 109,000 387,000 1,559,000
Irrigation / Construction - 1,230,000 1,062,000 2,292,000
TOTAL $ 7,614,000 $ 6,196,000 $ 4,535,000 $ 18,345,000
Class No. Of
Accounts
Tier 1
(Acre Feet)
Tier 2
(Acre Feet)
Tier 3
(Acre Feet)
Total
(Acre Feet)Total Sales
Residential 19,966 4,965 3,326 1,198 9,489 $ 10,457,000
Multi-Family 479 2,282 888 533 3,703 4,037,000
Commercial 710 1,180 94 216 1,490 1,559,000
Irrigation /
Construction 360 - 1,067 597 1,664 2,292,000
TOTALS 21,515 8,427 5,375 2,544 16,346 $ 18,345,000
Source of Supply FY 2019-20
Actual
FY 2020-21
Actual
FY 2021-22
Actual
FY 2022-23
Projected
FY 2023-24
Budget
Ground Water 12,549 12,800 12,826 14,590 11,543
Surface Water 3,647 3,574 3,581 2,575 3,950
Purchased Water 800 800 800 - 1,800
TOTAL 16,996 17,174 17,207 17,165 17,293
Assumptions and Trends
The development of the revenue projections for FY 2023-24 requires management to estimate customer consumption
for the next year. The District will provide water services through approximately 21,503 domestic and irrigation
connections in FY 2023-24. In addition, 265 commercial fire services and 12 temporary hydrant meters are connected
to the District’s system. Water demand is estimated at 7,121,000 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, which is then multiplied by the
number of days in the billing period.
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).
EAST VALLEY WATER DISTRICT | 85
[WATER FUND]
• Number of Occupants
• Number of Dwelling Units
• Medical Needs
• Horses/Livestock
• Business Needs
• Agricultural Needs
• Irrigable Landscape
• Weather
• Meter Size
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.
FY 2023-24 BUDGET | 86
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.
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
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1”
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 water budget is calculated differently from residential to ensure water budgets for this customer class
are equitable and cover the cost of supplying water to these establishments.
TIER 11 AND TIER 2 2 WATER BUDGETS
The indoor (Tier 1) and outdoor water (Tier 2) budget are calculated by taking the average of the last two years
actual HCF consumption for each Tier, then multiplying by 90%. Calculating non-residential customers in this manner
encourages conservation and shares the cost of operating the District.
TIER 33 INEFFICIENT USE
When a customer exceeds their Tier 1 and Tier 2 budgets, the excess units of water are billed at the Tier 3 rate.
EAST VALLEY WATER DISTRICT | 87
[WATER FUND]
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 2023-24 BUDGET | 88
Meter Charge Revenue
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 services analysis, and the rates
provide funding for operating and
capital needs.
Other Charges and 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 account and administration costs, and debt service. Water Fund debt is incurred to provide full or partial
funding for multiple CIP projects.
Meter Size No. of
Services
Rate
July–Dec
Rate
Jan–June Total
5/8 in. 3,373 $ 24.74 $ 25.49 $ 1,016,000
3/4 in. 13,237 31.78 32.74 5,124,000
1 in. 4,212 45.86 47.24 2,353,000
1 1/2 in. 268 81.06 83.50 265,000
2 in. 303 123.30 127.00 455,000
3 in. 77 235.93 243.01 221,000
4 in. 22 363.64 373.52 97,000
6 in. 17 714.61 736.05 148,000
8 in. 6 1,981.70 2,041.16 145,000
Fire Service 1 1/2 in. 6 13.18 13.18 1,000
Fire Service 4 in. 50 35.14 35.14 22,000
Fire Service 6 in. 140 52.70 52.70 87,000
Fire Service 8 in. 57 70.27 70.27 49,000
Fire Service 10 in. 12 87.84 87.84 13,000
TOTALS 21,780 $ 9,996,000
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, Public
Affairs, Engineering and Finance.
DEBT SERVICES AND 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.
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.
EAST VALLEY WATER DISTRICT | 89
[WATER FUND]
31.6%
water fund expenses by cost center
Administration
10.7 %
Debt Service
13.7%
Transmission &Distribution
14.2%
CapitalExpenditures
16.5%
Sourceof Supply
0.3 %
ReserveTransfer
3.6 %
Pumps &Boosters3.9 %
Treatment
5.5%CustomerAccounts
FY 2023-24 BUDGET | 90
FY 2023-24 Proposed Water Fund Budget
FY 2020-21
Actual
FY 2021-22
Actual
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
REVENUE/SOURCES
Water Sales $ 19,305,632 $ 18,472,875 $ 17,700,000 $ 17,600,000 $ 18,345,000
Meter Charges 9,217,003 9,192,297 9,785,000 9,766,193 9,996,000
Penalties 172,918 298,362 468,000 584,224 450,000
Other Operating Revenue 540,578 1,420,752 442,000 1,476,438 42,000
Miscellaneous Revenue 409,618 (28,131) 120,000 282,714 220,000
Gain on Disposal of Assets (1,234,309) 807,425 - - -
TOTAL REVENUE/SOURCES $ 28,411,440 $ 30,163,580 $ 28,515,000 $ 29,709,569 $ 29,053,000
OPERATING EXPENSES
Employment Expenses $ 9,255,428 $ 9,781,129 $ 9,025,000 $ 8,120,500 $ 9,227,500
Water Costs 587,879 373,096 486,000 548,336 768,000
Power Costs 2,355,477 2,705,890 3,185,000 3,233,084 3,165,000
Materials & Supplies 1,096,265 1,830,103 1,640,400 1,875,321 1,331,500
Contract Services 3,682,286 4,907,175 6,323,400 5,068,927 6,827,800
Other Operating Expenses 153,931 282,449 260,200 243,196 415,200
TOTAL OPERATING EXPENSES $ 17,131,266 $ 19,879,842 $ 20,920,000 $ 19,089,364 $ 21,735,000
OTHER EXPENSES
Debt Principal $ - $ 2,088,231 $ 2,163,000 $ 2,163,000 $ 2,217,000
Debt Interest Expense 981,067 697,862 917,000 917,000 886,000
Other Non-Operating Expense 233,393 322,574 - - -
Capital Outlay 1,243,894 541,195 640,000 640,000 695,000
Capital Improvement Program 2,540,849 2,724,603 5,075,000 5,075,000 3,425,000
Transfer to (from) Reserves 6,280,971 3,909,273 (1,200,000) 1,825,205 95,000
TOTAL OTHER EXPENSES $ 11,280,174 $ 10,283,738 $ 7,595,000 $ 10,620,205 $ 7,318,000
TOTAL OPERATING/OTHER
EXPENSES $ 28,411,440 $ 30,163,580 $ 28,515,000 $ 29,709,569 $29,053,000
NET SURPLUS $ - $ - $ - $ - $ -
EAST VALLEY WATER DISTRICT | 91
[WATER FUND]
WATER FUND REVENUES VS. EXPENSES
$17,487,000 $17,131,266
$19,879,842 $19,089,364
$21,735,000
$5M
$10M
$15M
$20M
$25M
$30M
FY 2018-19
Actual
FY 2019-20
Actual
FY 2020-21
Actual
FY 2021-22
Actual
FY 2022-23
Estimated
FY 2023-24
Proposed
Operating Expenses Revenues
$16,062,000
$26,583,000
$28,411,440
$30,163,580
$29,709,569
$29,053,000
$26,504,000
FY 2023-24 BUDGET | 92
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EAST VALLEY WATER DISTRICT | 93
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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.
FY 2023-24 BUDGET | 94
EAST VALLEY WATER DISTRICT | 95
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,
as the District nears 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 2021 and the final
adjustment to Collection rates proposed by that analysis will become effective January 1, 2024. As this effective date is
at the midpoint of FY 2023-24, the detailed calculation of projected wastewater collection revenue shown later in this
section is presented in two steps, one for each six month period prior to, and after, the effective date.
RESIDENTIAL
Residential collection system rates were recently restructured to charge customers in a manner more consistent with the
nature of their customer class. The new 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 Patton – a rate developed
specifically for Patton State Hospital.
Shown on the following page are the calculations for projected wastewater system charge revenue from all customer
classes for FY 2023-24.
FY 2023-24 BUDGET | 96
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
Expenses
Operating expenses have remained consistent in the Wastewater Fund. The District 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.
Customer Type Units Monthly
Fixed Charge Usage (HCF)Charge
per HCF Total
JULY 2023 THROUGH DECEMBER 2023
Single-Family Residential 19,325 $ 15.25 $ 1,768,000
Multi-Family Residential 10,654 14.41 921,000
Commercial
Low Strength 463 11.06 175,000 $ 0.38 97,000
Commercial
Medium Strength 70 11.06 34,000 0.50 22,000
Commercial
High Strength 86 11.06 73,000 0.50 42,000
Commercial - Patton 1 11.06 90,000 0.61 55,000
TOTAL 30,599 $ 2,905,000
JANUARY 2024 THROUGH JUNE 2024
Single-Family Residential 19,325 $ 16.32 $ 1,892,000
Multi-Family Residential 10,654 15.42 986,000
Commercial
Low Strength 463 11.84 120,000 $ 0.41 82,000
Commercial
Medium Strength 70 11.84 25,000 0.54 18,500
Commercial
High Strength 86 11.84 60,000 0.54 38,500
Commercial - Patton 1 11.84 70,000 0.66 46,000
TOTAL 30,599 $ 3,063,000
TOTAL WASTEWATER COLLECTION REVENUE $ 5,968,000
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.
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.
EAST VALLEY WATER DISTRICT | 97
[WASTEWATER FUND]
Cost Center Amount
Transmission & Distribution $ 1,470,500
Customer Service 558,900
Administration 2,820,600
Debt Service 273,000
Transfer to Reserves 365,000
Capital Expenditures 560,000
TOTAL $ 6,048,000
wastewater fund expenses by cost center
47 %
Administration
5%
DebtService
6%
ReserveTransfer 24%
Collection &Transmission
9%
CapitalExpenditures
9%
CustomerAccounts
FY 2023-24 BUDGET | 98
FY 2023-24 Proposed Wastewater Fund Budget
FY 2020-21
Actual
FY 2021-22
Actual
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
REVENUE/SOURCES
Penalties $ 74,419 $ 106,560 $ 60,000 $ 61,736 $ 60,000
Wastewater System Charges 4,705,683 4,828,525 5,621,000 5,582,882 5,968,000
Wastewater Treatment Charges 8,456,508 9,764,357 - - -
Other Operating Revenue 354,302 1,745,551 100,000 999,310 -
Miscellaneous Revenue (4,002) (77,787) 5,000 35,799 20,000
Gain on Disposal of Assets (2,291) 235,137 - - -
TOTAL REVENUE/SOURCES $ 13,584,619 $ 16,602,343 $ 5,786,000 $ 6,679,727 $ 6,048,000
OPERATING EXPENSES
Employment Expenses $ 2,417,909 $ 2,546,698 $ 2,561,900 $ 2,168,217 $ 2,544,700
Power Costs ---- -
Materials & Supplies 94,680 157,881 110,000 105,114 133,100
Contract Services 9,661,840 10,259,072 1,951,100 1,833,248 2,066,400
Other Operating Expenses 44,676 92,460 99,000 81,092 105,800
TOTAL OPERATING EXPENSES $ 12,219,105 $ 13,056,111 $ 4,722,000 $ 4,187,671 $ 4,850,000
OTHER EXPENSES
Debt Principal $ - $ 170,000 $ 175,000 $ 175,000 $ 175,000
Debt Interest Expense 132,667 115,797 99,000 99,000 98,000
Other Non-Operating Expense 39,985 158,990 - - -
Capital Outlay 451,274 - 475,000 475,000 260,000
Capital Improvement Program 621,938 679,228 315,000 315,000 300,000
Transfer to (from) Reserves 119,650 2,422,217 - 1,428,056 365,000
TOTAL OTHER EXPENSES $ 1,365,514 $ 3,546,232 $ 1,064,000 $ 2,492,056 $ 1,198,000
TOTAL OPERATING/OTHER
EXPENSES $ 13,584,619 $ 16,602,343 $ 5,786,000 $ 6,679,727 $ 6,048,000
NET SURPLUS $ - $ - $ - $ - $ -
EAST VALLEY WATER DISTRICT | 99
WATER RECLAMATION FUNDfy 2023-24
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World class public service requires a constant
commitment to creative solutions and innovation.
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EAST VALLEY WATER DISTRICT | 101
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 treatment costs, however, a portion of
charges collected from customers will continue to be remitted to the San Bernardino Municipal Water Department until
100% of wastewater flows have been diverted from the SBMWD’s treatment facilities and to the SNRC. Flows will be
diverted in phases beginning in the fall of 2023, with 100% diversion expected by the end of December 2023.
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. Wastewater Treatment 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 2021 and the final adjustment to Treatment rates proposed by that analysis
will become effective January 1, 2024. As this adjustment does become effective at the midpoint of FY 2023-24, the
detailed calculation of projected wastewater treatment revenue shown later in this section is presented in two steps,
one for each six month period.
RESIDENTIAL
Residential treatment rates are structured to charge customers in a manner consistent with the nature of their customer
class. Redesigned multi-family rates add 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 Patton–
a rate developed specifically for Patton State Hospital.
Shown on the following page are the calculations for projected wastewater treatment revenue from all customer classes
for FY 2023-24.
FY 2023-24 BUDGET | 102
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 from the regional groundwater basin master for recharging recycled water into
the local groundwater basin.
• Investment Income — Allocated based on the balance of the funds invested reserves.
• Miscellaneous Revenue
Customer Type Units Monthly
Fixed Charge Usage (HCF)Charge
per HCF Total
JULY 2023 THROUGH DECEMBER 2023
Single-Family Residential 19,325 $ 25.01 N/A N/A $ 2,900,000
Multi-Family Residential 10,654 22.33 N/A N/A 1,427,000
Commercial
Low Strength 463 11.59 175,000 $ 1.03 212,000
Commercial
Medium Strength 70 11.59 34,000 1.64 60,000
Commercial
High Strength 86 11.59 73,000 3.66 273,000
Commercial - Patton 1 11.59 90,000 1.92 173,000
TOTAL 30,599 $ 5,045,000
JANUARY 2024 THROUGH JUNE 2024
Single-Family Residential 19,325 $ 26.77 N/A N/A $ 3,104,000
Multi-Family Residential 10,654 23.90 N/A N/A 1,527,000
Commercial
Low Strength 463 12.41 $ 120,000 $ 1.11 168,000
Commercial
Medium Strength 70 12.41 25,000 1.76 49,000
Commercial
High Strength 86 12.41 60,000 3.92 242,000
Commercial - Patton 1 12.41 70,000 2.06 144,000
TOTAL 30,599 $ 5,234,000
TOTAL WASTEWATER TREATMENT REVENUE $ 10,279,000
Expenses
With the startup of operations at the SNRC, this fund has seen an anticipated increase in expenses as commissioning
and treatment of operations nears. During FY 2023-24 the District will transition from treatment services provided by
the SBMWD to full operation of the Sterling Natural Resource Center. The District will utilize a field staff of eight for plant
operations and maintenance. The District has forecasted these types of expenses and planned for these operations
through the District’s wastewater rates.
Conclusion
The new Water Reclamation Fund is balanced, however, with the 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 quarterly basis.
EAST VALLEY WATER DISTRICT | 103
[WATER RECLAMATION FUND]
water reclamation fund expenses by cost center
8%
ReserveTransfer
30%
Treatment Services
60%
Reclamation
2%
CapitalExpenditures
A balanced budget allows the District to avoid budget deficits.
FY 2023-24 BUDGET | 104
FY 2020-21
Actual
FY 2021-22
Actual
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
REVENUE/SOURCES
Water Sales $ - $ - $ - $ - $ -
Wastewater Treatment Charges - - 9,851,000 10,083,076 10,279,000
Other Operating Revenue - - - - 1,944,000
Miscellaneous Revenue - - - - 100,000
Gain on Disposal of Assets - - - - -
TOTAL REVENUE/SOURCES $ - $ - $ 9,851,000 $ 10,083,076 $ 12,323,000
OPERATING EXPENSES
Employment Expenses $ - $ - $ 875,100 $ 742,993 $ 1,581,800
Contracted Treatment Costs - - 7,900,000 8,307,804 3,700,000
Power Costs - - 273,000 271,062 2,000,000
Materials & Supplies - - 119,600 77,191 751,400
Contract Services - - 671,000 683,093 3,038,800
Other Operating Expenses - - 12,300 933 21,000
TOTAL OPERATING EXPENSES $ - $ - $ 9,851,000 $ 10,083,076 $ 11,093,000
OTHER EXPENSES
Debt Principal $ - $ - $ - $ - $ -
Debt Interest Expense - - - - -
Other Non-Operating Expense - - - - -
Capital Outlay - - - - 210,000
Capital Improvement Program - - - - -
Transfer to (from) Reserves - - - - 1,020,000
TOTAL OTHER EXPENSES $ - $ - $ - $ - $ 1,230,000
TOTAL OPERATING/OTHER
EXPENSES $ - $ - $ 9,851,000 $ 10,083,076 $ 12,323,000
NET SURPLUS $ - $ - $ - $ - $ -
FY 2023-24 Proposed Water Reclamation Fund Budget
EAST VALLEY WATER DISTRICT | 105
CONSOLIDATED
FINANCIAL SCHEDULES
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The District conducts an extensive process gathering
input from internal staff and the community throughout
the budget development and review process.
FY 2023-24 BUDGET | 106
EAST VALLEY WATER DISTRICT | 107
CONSOLIDATED FINANCIAL SUMMARY
Overview of revenues and other financing sources and expenditures.
Districtwide Summary
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
REVENUES
4100 Water Sales $ 18,472,875 $ 17,700,000 $ 17,600,000 $ 18,345,000 $ 1,337,000 8%
4200 Meter Charges 9,192,297 9,785,000 9,766,193 9,996,000 211,000 2%
4301 Penalties 404,922 528,000 645,960 510,000 (18,000)-3%
4400 Wastewater
Collection Charges 4,828,525 5,621,000 5,582,882 5,968,000 347,000 6%
4500 Wastewater
Treatment Charges 9,764,357 9,851,000 10,083,076 10,279,000 428,000 4%
4605 Other Operating
Charges 3,166,303 542,000 2,475,748 1,986,000 752,000 139%
4700 Miscellaneous
Revenue (105,918) 125,000 318,513 340,000 215,000 172%
4801 Gain on Disposal
of Assets 1,042,562 - - - - 0%
TOTAL REVENUES $ 46,765,923 $ 44,152,000 $ 46,472,372 $ 47,424,000 $ 3,272,000 7%
EXPENSES – OPERATING BY PROGRAM
1000 Governing Board $228,477 $394,000 $335,015 $364,000 $(30,000)-8%
2000 General
Administration 1,289,090 1,294,000 1,164,467 1,370,000 76,000 6%
2100 HR/Risk
Management 1,854,930 1,917,000 2,382,709 2,857,000 940,000 49%
2200 Public Affairs 1,745,957 1,578,000 1,433,964 1,292,000 (286,000)-18%
2300 Conservation 570,652 862,000 448,718 689,000 (173,000)-20%
3000 Finance 1,230,080 1,271,000 930,991 1,344,000 73,000 6%
3200 Information
Technology 1,357,779 1,344,000 1,097,192 1,722,000 378,000 28%
3300 Customer Service 1,445,777 1,746,500 1,728,496 1,863,000 116,500 7%
3400 Meter Services 274,173 270,000 220,522 292,000 22,000 8%
FY 2023-24 BUDGET | 108
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
4000 Engineering $ 1,672,509 $ 1,224,000 $ 722,489 $ 1,428,000 $ 204,000 17%
5000 Water Production 4,655,222 5,657,000 5,240,446 5,992,000 335,000 6%
5100 Water Treatment 977,362 1,090,000 1,080,577 1,082,000 (8,000)-1%
5200 Water Quality 501,441 507,000 402,204 546,000 39,000 8%
6000 Water Maintenance
Adminstration 494,379 441,000 389,181 465,000 24,000 5%
6100 Water Maintenance 2,928,684 3,017,000 3,291,193 2,826,000 (191,000)-6%
6200 Wastewater
Collection 9,671,187 880,000 806,985 867,000 (13,000)-1%
6300 Water Reclamation - 9,111,000 8,799,782 9,896,000 785,000 9%
7000 Facilities
Maintenance 1,307,009 2,138,500 2,133,837 2,023,000 (115,500)-5%
7100 Fleet Maintenance 731,245 751,000 751,343 760,000 9,000 1%
TOTAL OPERATING
EXPENSES $ 32,935,953 $ 35,493,000 $ 33,360,111 $ 37,678,000 $ 2,185,000 6%
EXPENSES - OTHER
Debt Principal $ 2,258,231 $ 2,338,000 $ 2,338,000 $ 2,392,000 $ 54,000 2%
Debt Interest Expense 813,659 1,016,000 1,016,000 984,000 (32,000)-3%
Other Non-Operating
Expense 481,564 - - - - 0%
Capital Outlay 541,195 1,115,000 1,115,000 1,165,000 50,000 4%
Capital Improvement 3,403,831 5,390,000 5,390,000 3,725,000 (1,665,000)-31%
Transfer To (From)
Reserves 6,331,490 (1,200,000)3,253,261 1,480,000 2,680,000 -223%
TOTAL OPERATING
EXPENSES $ 13,829,970 $ 8,659,000 $ 13,112,261 $ 9,746,000 $ 1,087,000 13%
TOTAL OPERATING/
OTHER EXPENSES $ 46,765,923 $ 44,152,000 $ 46,472,372 $ 47,424,000 $ 3,272,000 7%
NET SURPLUS (DEFICIT) $ - $ - $ - $ - $ - -
Itemized Operating Expense Summary
EAST VALLEY WATER DISTRICT | 109
[CONSOLIDATED FINANCIAL SUMMARY]
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 7,798,066 $ 7,718,000 $ 6,006,537 $ 8,275,000 $ 557,000 7%
5102 Temporary Labor 5,719 30,000 56,395 47,000 17,000 57%
5103 Overtime 459,408 415,000 543,809 429,000 14,000 3%
5104 Standby 37,550 35,000 39,319 90,000 55,000 157%
5200 Benefits 3,561,924 3,913,000 3,803,556 4,162,000 249,000 6%
TOTAL PERSONNEL $11,862,667 $ 12,111,000 $ 10,665,682 $ 13,003,000 $ 892,000 7%
WATER SUPPLY
6101 Purchased Water $ 206,142 $ 302,000 $ 400,000 $ 300,000 $ (2,000)-1%
6102 Replenishment 95,341 110,000 146,175 351,000 241,000 219%
6103 Water Assessment 71,613 74,000 2,161 117,000 43,000 58%
TOTAL WATER SUPPLY $ 373,096 $ 486,000 $ 548,336 $ 768,000 $ 282,000 58%
OPERATING EXPENSES
6201 Materials &
Supplies $ 1,382,654 $ 1,193,000 $ 1,546,573 $ 1,046,000 $ (147,000)-12%
6202 Tools 65,760 63,000 84,386 89,000 26,000 41%
6203 Office Supplies 26,245 49,000 27,630 51,000 2,000 4%
6204 Chemicals 288,019 400,000 337,775 1,030,000 630,000 158%
6205 Conservation
Rebates 225,308 165,000 61,261 120,000 (45,000)-27%
6301 Contract Services 3,270,573 5,144,700 3,509,349 6,984,000 1,839,300 36%
6302 Banking Services 235,120 247,000 294,380 232,000 (15,000)-6%
6303 Printing &
Publishing 186,318 331,500 265,143 202,000 (129,500)-39%
6304 Legal Services 200,549 202,300 213,132 201,000 (1,300)-1%
6305 Treatment Services 9,084,061 7,900,000 8,307,804 3,700,000 (4,200,000)-53%
6306 Rents & Leases 17,994 20,000 20,277 20,000 - 0%
6307 Uniforms 77,014 113,000 80,764 102,000 (11,000)-10%
6308 Billing Services 49,803 60,000 71,002 52,000 (8,000)-13%
6309 Shut Off Notice
Services - 225,000 235,317 225,000 - 0%
FY 2023-24 BUDGET | 110
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
6310 Street Services $ 265,113 $ 525,000 $ 453,915 $ 525,000 $ - 0%
6311 Landscape
Services 169,819 233,000 274,335 233,000 - 0%
6312 Janitorial Services 138,743 148,000 154,181 148,000 - 0%
6314 Litigation Services 4,928 40,000 10,603 25,000 (15,000)-38%
6401 Utilities 51,673 58,000 48,935 48,000 (10,000)-17%
6402 Telephone 131,963 133,000 151,887 122,000 (11,000)-8%
6403 Electricity 2,733,178 3,480,000 3,535,059 5,455,000 1,975,000 57%
6404 Fuel 175,812 244,900 245,700 256,000 11,100 5%
6405 Permits 158,563 183,000 184,913 284,000 101,000 55%
6406 Postage 153,383 115,100 210,073 229,000 113,900 99%
6501 Memberships &
Dues 126,402 165,000 145,358 176,000 11,000 7%
6502 Professional
Development 160,830 101,500 87,909 147,000 45,500 45%
6503 Education
Assistance 75 6,000 - 3,000 (3,000)-50%
6504 Meetings 27,919 47,000 36,451 49,000 2,000 4%
6505 Employee
Recognition 21,432 46,000 46,551 41,000 (5,000)-11%
6701 General Insurance 754,048 890,000 1,130,081 1,745,000 855,000 96%
6702 Insurance Claims 13,482 10,000 367 10,000 - 0%
6703 Cash Over/Short 64 1,000 1,868 1,000 - 0%
6704 Bad Debt 38,187 5,000 7,084 5,000 - 0%
6705 OPEB Retirees 465,158 351,000 582,096 351,000 - 0%
SUBTOTAL OPERATING
EXPENSES $ 20,700,190 $ 22,896,000 $ 22,362,159 $ 23,907,000 $ 1,011,000 4%
TOTAL OPERATING
EXPENSES $ 32,935,953 $ 35,493,000 $ 33,360,111 $ 37,678,000 $ 2,185,000 6%
EAST VALLEY WATER DISTRICT | 111
PROGRAM SUMMARIESfy 2023-24
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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.
FY 2023-24 BUDGET | 112
• Program Descriptions
• Position Summary Schedule
• Program Summaries
Program Summaries Contents
EAST VALLEY WATER DISTRICT | 113
PROGRAM DESCRIPTIONS
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 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 2023-24 Budget is organized into the following summary programs:
• Governing Board
• General Administration
• Human Resources
• 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
Position 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 table below summarizes the number of full-time personnel by Program. All authorized positions are funded in the
proposed budget for FY 2023-24. Part-time positions are included in the program descriptions and not shown below.
Full-Time Staffing Summary by Program
Total Authorized Positions
Program FY 2021-22
Actual
FY 2022-23
Actual
FY 2023-24
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 3 2 2
4000 Engineering 5 4 3
5000 Water Production 7 7 7
5100 Water Treatment 2 2 2
5200 Water Quality 2 2 2
6100 Water Maintenance 13 14 16
6200 Wastewater Collection 4 4 4
6300 Water Reclamation 9 9 8
7000 Facilities Maintenance 2 3 2
7100 Fleet Maintenance 1 1 1
TOTAL 76 76 73
FY 2023-24 BUDGET | 114
FY 2017-18 FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24
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Program Summaries Section
The Governing Board is the District's legislative body
responsible for serving as the organizational policy makers.
FY 2023-24 BUDGET | 116
• Governing Board
• General Administration
• Human Resources
• 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
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
GOVERNING BOARD
PROGRAM SUMMARIES
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 North Fork
Water Company.
2. Consider City Creek Mutual Water Company dissolution.
3. Convene a City Creek Mutual Water Company Board Meeting to
update officers.
4. Conduct General Manager/CEO annual evaluation.
5. Engage in a strategic planning session to establish District goals
and objectives.
2 Address Policy
Decisions Related
to the SNRC
1. Consider agenda items related to project completion and
commencement of the SNRC.
2. Participate in activities that encourage community engagement
for the SNRC.
3 Engage Elected
Officials and
Community on the
District’s Strategic
Priorities and
Legislative Priorities
1. Evaluate and develop a legislative platform.
2. Engage with legislators to promote the legislative platform.
3. Engage community in strategic plan, goals and objectives.
Directly Supports the Five-Year Work Plan
FY 2023-24 BUDGET | 118
FY 2022-232022-23 ACCOMPLISHMENTS
Goal One
Provided Organizational Direction
and Set Expectations through
Policy Decisions Consistent with
the Five-Year Work Plan
• Completed a professional recruitment campaign for a new General
Manager/CEO.
• Approved Administrative Policy 2.4 – Telework Policy.
• Conducted the General Manager/CEO annual evaluation, including
establishment of FY 2023-24 Goals.
Goal Two
Addressed Policy Decisions
Related to the SNRC
• Approved the Balfour Beatty contract amendment.
• Participated in the soft opening for the SNRC Administrative building
and Weaver Basin groundbreaking ceremony.
Goal Three
Conducted All Activities Required
for the Board of Directors Election
• Coordinated with the San Bernardino County Registrar of Voters to
hold the 2022 elections.
• Updated and posted electoral information on the District’s website, in
accordance with statutory requirements.
• Reviewed and updated the Candidate Orientation Program.
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 2020-21 FY 2021-22 FY 2022-23
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 10 6 15
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 160 205 236 258
PROGRAM BUDGET DETAIL
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 97,475 $ 135,000 $ 109,200 $ 140,000 $ 5,000 4%
5200 Benefits 77,377 88,000 71,358 90,000 2,000 2%
OPERATING EXPENSES
6201 Materials & Supplies 1,620 2,000 - 3,000 1,000 50%
6301 Contract Services 7,815 143,000 133,333 110,000 (33,000)-23%
6307 Uniforms 860 1,000 - 1,000 - 0%
6502 Professional Development 43,330 25,000 21,124 20,000 (5,000)-20%
GOVERNING BOARD TOTAL $ 228,477 $ 394,000 $ 335,015 $ 364,000 $ (30,000)-8%
SIGNIFICANT CHANGES
IN PROGRAM BUDGET
• No elections and associated costs will be incurred in
FY 2023-24.
EAST VALLEY WATER DISTRICT | 119
[GOVERNING BOARD]
1%
[$364,000]
Program
Budget Allocation
[PAGE LEFT BLANK]
Intentionally
FY 2023-24 BUDGET | 120
EAST VALLEY WATER DISTRICT | 121
GENERAL ADMINISTRATION
Program Summaries Section
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General Administration is responsible for implementing the
District's Vision, maintaining official records, promoting public
trust, and ensuring transparency compliance.
FY 2023-24 BUDGET | 122
• Governing Board
• General Administration
• Human Resources
• 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
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 implement’s
strategic planning for future operations and capital improvement funding requirements and resource allocation.
EAST VALLEY WATER DISTRICT | 123
GENERAL ADMINISTRATION
PROGRAM SUMMARIES
Goals Objectives
1 Complete
Consolidation /
Dissolution of Mutual
Water Companies
1. Continue with eminent domain proceedings until court ruling is issued.
2. Perform annual review of prior NFWC shareholders’ water allocation
agreement with the District.
3. Consult with legal counsel to determine how the NFWC will operate
in the future.
4. Work with legal counsel toward dissolution of City Creek Mutual Water
Company, and schedule Board Meeting if required.
2 Implement
Document
Management
Process
1. Continue to scan vital documents and incorporate them into the
electronic document repository.
2. Coordinate and train remaining District staff to ensure the document
repository system is used consistently.
3. Continue destruction of documents in compliance with the Records
Retention Policy.
3 Document / Update
Organizational
Priorities and
Philosophies
1. Review and revise overall District Strategic Plan.
2. Complete District Clerk Handbook and present to the Finance and
Human Resources Committee.
3. Continue working with Community Heritage and Education Foundation
(CHEF) Board and Committee members to finalize scope of (historical
agricultural educational) project.
Directly Supports the Five-Year Work Plan
FY 2023-24 BUDGET | 124
FY 2022-232022-23 ACCOMPLISHMENTS
Goal One
Completed Consolidation/
Dissolution of North Fork Water
Company (NFWC)
• Entered eminent domain proceedings to acquire the remaining nine
shares of NFWC, not owned by the District.
• Maintained NFWC annual compliance review.
Goal Two
Developed Document
Management Process
• Developed a naming convention for efficient document retrieval.
• Began the process for scanning vital documents and incorporating
them into the electronic document repository.
• Completed training for the Customer Service and Finance departments
on document repository systems.
• Initiated destruction of 800 boxes in compliance with the Records
Retention Policy.
Goal Three
Developed District Clerk
Handbook
• Evaluated and identified best practices to be included in the new
Handbook.
• Coordinated with relevant staff and incorporated comments and
suggestions into the Handbook.
• Prepared a draft Handbook.
Goal Four
Community Heritage Education
Foundation (CHEF)
• Held a Committee Meeting to discuss long-term action priorities.
• General Manager/CEO held an annual Board Meeting to discuss
operations, financials, and a donation policy.
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 2020-21 FY 2021-22 FY 2022-23
II-A Make administrative documents available online 50 51 53 57
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 2,000 2,770*2,770*1,970
I-B Participate in Professional Development
Opportunities 6 20 9 11
*Not able to reduce boxes due to COVID-19 restrictions.
PROGRAM BUDGET DETAIL
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 574,774 $ 525,000 $ 430,595 $ 597,000 $ 72,000 14%
5102 Temporary Labor - 30,000 - 30,000 - 0%
5103 Overtime 4,521 4,000 1,911 4,000 - 0%
5200 Benefits 313,539 259,000 312,441 264,000 5,000 2%
OPERATING EXPENSES
6201 Materials & Supplies 1,419 4,000 454 4,000 - 0%
6203 Office Supplies 2,199 3,000 1,462 3,000 - 0%
6301 Contract Services 116,436 152,000 113,535 161,000 9,000 6%
6303 Printing & Publishing 1,000 3,000 2,077 3,000 - 0%
6304 Legal Services 134,298 120,300 149,112 120,000 (300)0%
6307 Uniforms - 1,000 632 1,000 - 0%
6314 Litigation Services 4,928 40,000 10,603 25,000 (15,000)-38%
6402 Telephone 3,136 5,000 1,730 3,000 (2,000)-40%
6406 Postage 291 700 - 1,000 300 43%
6501 Memberships & Dues 87,506 116,000 117,554 104,000 (12,000)-10%
6502 Professional Development 34,313 16,000 11,976 35,000 19,000 119%
6504 Meetings 10,730 15,000 10,385 15,000 - 0%
GENERAL ADMIN TOTAL $ 1,289,090 $ 1,294,000 $ 1,164,467 $ 1,370,000 $ 76,000 6%
SIGNIFICANT CHANGES
IN PROGRAM BUDGET
• Increased Contract Services budget for off-site records destruction.
EAST VALLEY WATER DISTRICT | 125
[GENERAL ADMINISTRATION]
4%
[$1,370,000]
Program
Budget Allocation
[PAGE LEFT BLANK]
Intentionally
FY 2023-24 BUDGET | 126
EAST VALLEY WATER DISTRICT | 127
HUMAN RESOURCES
Program Summaries Section
HU
M
A
N
R
E
S
O
U
R
C
E
S
Human Resources focuses on the management and
development of employees in an organization.
FY 2023-24 BUDGET | 128
• Governing Board
• General Administration
• Human Resources
• 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
Human Resources is responsible for administering programs to attract and retain a diverse and qualified workforce.
To remain an industry leader, the program analyzes the 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 creates
programs focused on the health and wellness of all employees. Additionally, HR administers the Risk Management
Program to mitigate personnel injuries, property damage and financial loss for the District, and the Pathway Program.
EAST VALLEY WATER DISTRICT | 129
HUMAN RESOURCES
PROGRAM SUMMARIES
Goals Objectives
1 Implement
Workforce Programs in
Support of the SNRC
1. Continue to recruit and onboard quality candidates to join the
SNRC team.
2. Create administrative policies regarding work schedules and standby
responsibilities for SNRC maintenance and operations.
3. Identify opportunities to ensure collaboration between staff located at
District Headquarters and the SNRC.
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. Ensure salaries, benefits, and related programs are executed as
adopted in the Memorandum of Understanding (MOU) effective
July 1, 2023 – June 30, 2026.
3. Implement the Onboarding module of our current NeoGov Recruitment
Suite to enhance the new-hire onboarding and transition process.
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. Monitor progress of summer internship program and report on
program’s success to the Board.
3. Develop educational and interactive tours of the SNRC with hands on
lab experiments for students to understand wastewater physical and
biological processes.
Directly Supports the Five-Year Work Plan
FY 2023-24 BUDGET | 130
FY 2022-232022-23 ACCOMPLISHMENTS
Goal One
Implemented Workforce Programs
in Support of the SNRC
• Recruited and onboarded Wastewater Treatment Operators for the
SNRC team.
• Facilitated a transition plan to relocate staff to the SNRC site.
Goal Two
Promoted a Positive
Organizational Culture that
Maintained a Supportive and
Encouraging Work Environment
• Implemented training and development programs for staff at all levels
throughout the organization.
• Ensured connection between the new General Manager/CEO with staff
by continuing the Breakfast with the Boss program, conducting annual
staff focus group meetings, and prioritizing interactions with individual
departments.
• Implemented Telework Policy that maintains District work expectations
while allowing scheduling flexibility.
• Negotiated a three-year MOU that considered both long-term financial
commitments and employee morale.
Goal Three
Promoted Regional Involvement
and Provided Workforce
Experience and Educational
Opportunities
• Enhanced the District’s Water and Pathway Program to be more
accessible to students within their current class structure.
• Modified current internship program for local youth to a summer
internship program that provides more convenient work experience
opportunities.
• Created a marketing campaign to recruit and onboard Customer
Service and administrative volunteers.
LEVELS OF SERVICE
The Human Resources 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 2020-21 FY 2021-22 FY 2022-23
I-D Percentage of annual non-retirement
employee turnover <7%3%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%100%95.5%
III-D Utilization rate of District’s Employee
Assistance Program >10%19%13.43%11.76%
PROGRAM BUDGET DETAIL
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 314,448 $ 307,000 $ 233,744 $ 329,000 $ 22,000 7%
5103 Overtime 1,686 3,000 2,276 3,000 - 0%
5200 Benefits 144,601 177,000 227,724 199,000 22,000 12%
OPERATING EXPENSES
6201 Materials & Supplies 5,521 6,000 921 6,000 - 0%
6203 Office Supplies 385 1,000 1,403 1,000 - 0%
6301 Contract Services 105,072 94,300 104,603 140,000 45,700 48%
6303 Printing & Publishing 330 1,000 758 1,000 - 0%
6304 Legal Services 15,841 15,000 34,718 15,000 - 0%
6307 Uniforms - - 57 - - 0%
6402 Telephone 772 - 626 - - 0%
6406 Postage 37 700 65 1,000 300 43%
6501 Memberships & Dues 5,102 5,000 6,443 4,000 (1,000)-20%
6502 Professional Development 5,458 8,000 5,180 9,000 1,000 13%
6504 Meetings 1,557 3,000 5,096 3,000 - 0%
6505 Employee Recognition 21,432 45,000 46,551 40,000 (5,000)-11%
6701 General Insurance 754,048 890,000 1,130,181 1,745,000 855,000 96%
6702 Insurance Claims 13,482 10,000 367 10,000 - 0%
6705 Retiree Benefits 465,158 351,000 582,096 351,000 - 0%
HUMAN RESOURCES TOTAL $ 1,854,930 $ 1,917,000 $ 2,382,709 $ 2,857,000 $ 940,000 49%
SIGNIFICANT CHANGES
IN PROGRAM BUDGET
• Increased Contract Services budget for
Consultant for the Leadership Academy.
• Increased Professional Development budget for
staff to attend various conferences.
• Increased General Insurance budget due to
onboarding new staff at the SNRC.
EAST VALLEY WATER DISTRICT | 131
[HUMAN RESOURCES]
8%
[$2,857,000]
Program
Budget Allocation
[PAGE LEFT BLANK]
Intentionally
FY 2023-24 BUDGET | 132
PUBLIC AFFAIRS
Program Summaries Section
EAST VALLEY WATER DISTRICT | 133
PU
B
L
I
C
AF
F
A
I
R
S
Public Affairs establishes solid public
relationships built on a foundation of trust.
FY 2023-24 BUDGET | 134
• Governing Board
• General Administration
• Human Resources
• 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 Strategic Services 1
Public Affairs/Conservation Manager 1
Public Affairs Specialist 1
Public Affairs Coordinator 1
Total Full-Time 4
Part-Time
Public Affairs Representative 1
Total Part-Time 1
PROGRAM PERSONNEL
PUBLIC AFFAIRS
COORDINATOR
GENERAL
MANAGER/CEO
PUBLIC AFFAIRS
SPECIALIST
PUBLIC AFFAIRS
REPRESENTATIVE PT
DIRECTOR OF
STRATEGIC SERVICES
PUBLIC AFFAIRS/
CONSERVATION MANAGER
PROGRAM STRUCTURE
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, emergency preparedness, and facility
rental programs.
EAST VALLEY WATER DISTRICT | 135
PUBLIC AFFAIRS
PROGRAM SUMMARIES
Goals Objectives
1 Implement
Community Based
Activities at the SNRC
1. Host a ribbon cutting event for SNRC operations.
2. Partner with third parties to offer community activities to maximize the
SNRC public space.
2 Utilize
Communication
Methods that
Enhance the
District’s Priorities
1. Engage with community members and organizations through pop-ups,
presentations, and local events.
2. Enhance the District’s digital presence through a website redesign and
continue to increase social media engagement.
3. Facilitate and update the District’s Strategic Plan.
3 Advance the
District’s Emergency
Preparedness
Program
1. Conduct formal update of the Emergency Response and Hazard
Mitigation Plans.
2. Partner with local and regional agencies for advanced emergency
response trainings.
3. Continue monitoring grant funding opportunities to construct mitigation
measures identified in the District’s emergency plans and critical
infrastructure projects.
Directly Supports the Five-Year Work Plan
FY 2023-24 BUDGET | 136
FY 2022-232022-23 ACCOMPLISHMENTS
Goal One
Advanced Construction of the
SNRC and Implemented Facility
Operations
• Hosted community activities to maximize the SNRC public space
including facility rentals and hosted events.
• Implemented the Wildlife Management Plan training and monitoring
program.
• Identified and engaged community stakeholders regarding SNRC
construction and commissioning.
Goal Two
Utilized Communication Methods
that Enhanced the District’s Brand
• Re-engaged with community members and organizations as post
COVID-19 activities resumed in-person.
• Highlighted the District’s premier agency standards through
presentations / engagements with national and regional organizations
such as ACWA, CMUA, WateReuse, CSDA, and PRSA .
• Enhanced digital outreach tools to increase customer engagement and
online presence of the District.
Goal Three
Advanced the District’s
Emergency Preparedness
Program
• Held annual review of the Emergency Response and Hazard Mitigation
Plans.
• Implemented the updated emergency response training program
following plans established by the District and participated in a tabletop
exercise.
• Monitored grant funding opportunities to construct mitigation measures
identified in the District’s emergency plans.
LEVELS OF SERVICE
The Public Affairs Program has five KPI metrics that are associated with the District’s Goals and Objectives of:
• Advance Emergency Preparedness Efforts (III-A)
• 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 2020-21 FY 2021-22 FY 2022-23
III-A Update Emergency Response Plan 100%100%100%100%
III-A Number of Emergency Response training
hours per FTE 16 15 14 23
II-D Number of community event presentations 15 0*11 41
I-C Number of Community Advisory Commission
meetings conducted 6 6 5 6
II-B Number of followers on social media 3,000 1,638 2,062 2,700
*Not able to complete due to COVID-19 restrictions.
PROGRAM BUDGET DETAIL
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 649,962 $ 589,000 $ 541,445 $ 429,000 $ (160,000)-27%
5103 Overtime 6,976 17,000 10,246 17,000 - 0%
5200 Benefits 209,528 243,000 254,619 127,000 (116,000)-48%
OPERATING EXPENSES
6201 Materials & Supplies 221,928 78,000 109,391 82,000 4,000 5%
6203 Office Supplies 4,754 2,000 6,340 2,000 - 0%
6301 Contract Services 449,404 377,000 258,674 413,000 36,000 10%
6303 Printing & Publishing 135,188 203,500 164,070 127,000 (76,500)-38%
6304 Legal Services 2,070 5,000 3,267 5,000 - 0%
6307 Uniforms 1,281 2,000 5,923 1,000 (1,000)-50%
6402 Telephone 2,968 3,000 3,137 3,000 - 0%
6406 Postage 19,040 24,500 27,644 45,000 20,500 84%
6501 Memberships & Dues 17,262 9,000 8,743 21,000 12,000 133%
6502 Professional Development 18,750 7,000 6,906 3,000 (4,000)-57%
6503 Education Assistance - 3,000 - - (3,000)-100%
6504 Meetings 4,339 10,000 6,280 12,000 2,000 20%
FACILITIES RENTAL EXPENSES
6201 Materials & Supplies 259 - 24,193 - - 0%
6301 Contract Services 1,068 3,000 446 3,000 - 0%
6312 Janitorial Services 1,180 2,000 2,640 2,000 - 0%
PUBLIC AFFAIRS TOTAL $ 1,745,957 $ 1,578,000 $ 1,433,964 $ 1,292,000 $ (286,000)-18%
SIGNIFICANT CHANGES
IN PROGRAM BUDGET
• The District is preparing to host a community
event for the commissioning of the SNRC.
• Printing and Publishing accounted for distribution
of the Prop 218 notice.
• Enhancement to the District’s website to ease accessibility
and provide an end-user, friendly experience.
EAST VALLEY WATER DISTRICT | 137
[PUBLIC AFFAIRS]
3%
[$1,292,000]
Program
Budget Allocation
[PAGE LEFT BLANK]
Intentionally
FY 2023-24 BUDGET | 138
CONSERVATION
Program Summaries Section
EAST VALLEY WATER DISTRICT | 139
CO
N
S
E
R
V
A
T
I
O
N
Conservation programs help educate
customers on how to use water efficiently.
FY 2023-24 BUDGET | 140
• Governing Board
• General Administration
• Human Resources
• 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
DIRECTOR OF
STRATEGIC SERVICES
PUBLIC AFFAIRS/
CONSERVATION MANAGER
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 legislative affairs.
EAST VALLEY WATER DISTRICT | 141
CONSERVATION
PROGRAM SUMMARIES
Goals Objectives
1 Coordinate
Necessary Program
Working Groups
to Complete
Conservation Reports
1. Maintain working 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 use efficiency reports such as the
Drought Contingency Plan, Drought Risk Assessment, Urban Water Use
Objectives, and Commercial, Industrial, Institutional (CII) classifications.
2 Evaluate Rebate
Program Success
and Implement
Program Modifications
1. Streamline rebate programs to maximize customer water savings in line
with new State objectives.
2. 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. Assess industry standards on educational programming and current
tactics used by peer agencies.
2. Participate in quarterly educational activities with schools located within
the District’s service area.
3. Develop digital material and other educational elements to provide
customers with conservation resources, free community events, and
four workshops.
Directly Supports the Five-Year Work Plan
FY 2023-24 BUDGET | 142
FY 2022-232022-23 ACCOMPLISHMENTS
Goal One
Coordinated Necessary Program
Working Groups to Complete
Conservation Reports
• Facilitated working group meetings for the purpose of tracking
informational data requests for State mandated reports.
• Prepared and submitted required regulatory reports such as the Supply
and Demand Assessment and the Drought Risk Assessment.
Goal Two
Evaluated Rebate Program
Success and Implemented
Program Enhancements
• Enhanced the rebate program to assist customers increase outdoor
efficiency with the implementation of the Parkway Transformation and
Irrigation Retrofit Program (Parkway and irrigation retrofit).
• Developed digital material and other educational elements to provide
customers with conservation resources, free community events (Earth
Day festival), and four workshops.
Goal Three
Participated in the Legislative
Process as it Related to Changes
in Conservation Regulations
• Actively participated in the legislative and regulatory process, (AB 2449,
SB 1157, SB 222, etc.) and updated District stakeholders on relevant
impacts to District programs.
• Monitored legislation related to low-income rate assistance, residential
water use standards, and communicated changes affecting District
operations.
• Completed semi-annual Conservation and legislative updates to staff,
the Governing Board, and quarterly updates to the Legislative and
Public Outreach Committee and Community Advisory Commission.
• Following the Governor’s Executive Order, implemented Stage 2 of the
District’s Water Shortage Contingency Plan.
LEVELS OF SERVICE
The Conservation Program has four 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)
• Pursue Alternative Funding Sources (II-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 2020-21 FY 2021-22 FY 2022-23
I-A Meet SWRCB conservation goal Yes Yes Yes Yes
I-A Maintain significant level of participation in
annual conservation rebate programs 200 430 200 350
II-D Number of educational materials created 100 100 78 125
II-C External conservation funding received $25,000 $32,000 $15,000 $200,000
PROGRAM BUDGET DETAIL
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 147,074 $ 107,000 $ 89,024 $ 107,000 $ - 0%
5103 Overtime 2,949 7,000 3,763 7,000 - 0%
5200 Benefits 39,920 40,000 32,661 42,000 2,000 5%
OPERATING EXPENSES
6201 Materials & Supplies 4,366 56,000 21,132 25,000 (31,000)-55%
6203 Office Supplies 3,916 2,000 323 1,000 (1,000)-50%
6205 Conservation Rebates 225,308 165,000 61,261 120,000 (45,000)-27%
6301 Contract Services 71,931 331,000 127,956 294,000 (37,000)-11%
6303 Printing & Publishing 47,202 109,000 80,944 50,000 (59,000)-54%
6304 Legal Services 150 1,000 - 1,000 - 0%
6307 Uniforms - 1,000 203 1,000 - 0%
6402 Telephone 487 2,000 1,120 2,000 - 0%
6406 Postage 15,058 24,000 20,069 24,000 - 0%
6501 Memberships & Dues 7,479 11,000 5,338 12,000 1,000 9%
6502 Professional Development 4,812 5,000 2,939 2,000 (3,000)-60%
6504 Meetings - 1,000 1,985 1,000 - 0%
CONSERVATION TOTAL $ 570,652 $ 862,000 $ 448,718 $ 689,000 $ (173,000)-20%
SIGNIFICANT CHANGES
IN PROGRAM BUDGET
• Drought Contingency Plan is underway with costs 50% completed.
• Assessing rebate program due to market saturation for the Weather
Based Irrigation Controller direct installation.
EAST VALLEY WATER DISTRICT | 143
[CONSERVATION]
2%
[$689,000]
Program
Budget Allocation
[PAGE LEFT BLANK]
Intentionally
FY 2023-24 BUDGET | 144
FINANCE & ACCOUNTING
Program Summaries Section
EAST VALLEY WATER DISTRICT | 145
F
I
N
A
N
C
E
&
AC
C
O
U
N
T
I
N
G
Finance and Accounting manage,
plan, and direct financial resources.
FY 2023-24 BUDGET | 146
• Governing Board
• General Administration
• Human Resources
• 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
Finance and Accounting oversees the business operations of the District in order 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
FINANCE & ACCOUNTING
PROGRAM SUMMARIES
Goals Objectives
1 Ensure Financial
Stability with Full
Understanding
of Operational
Complexities
1. Establish SNRC debt service and other reserves required to comply with
agreements and ensure fiscal sustainability.
2. Complete Rate Study and schedule Public Hearing to consider rate
adjustments if necessary.
3. Work 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.
4. Work with consultant to complete pension Unfunded Accrued Liability
Policy and present policy to the Board.
2 Fully Understand the
Cost and Accounting
Associated with Placing
the SNRC in Service
1. Determine placed-in-service date and finalize total project costs.
2. Closeout State Revolving Fund (SRF) funding including payment
of retention.
3. Allocate total project costs to physical plant components in sufficient
detail to facilitate recording in the accounting system, future
replacements and reasonable depreciation estimates.
3 Maximize the
Utility and Security
of Financial Software
and Data
1. Develop standard procedures for linking capital improvements in the
District’s accounting software to the GIS mapping software.
2. Conduct informal review of financial software being used by other water
agencies; schedule product demonstrations if potential replacements
for Tyler are identified.
3. Identify pros and cons for moving Tyler (or new ERP) to a hosted
environment.
Directly Supports the Five-Year Work Plan
FY 2023-24 BUDGET | 148
FY 2022-232022-23 ACCOMPLISHMENTS
Goal One
Ensured Financial Stability with
Full Understanding of Operational
Complexities
• Completed final billing for City of Highland and Urban Greening Grant
external funding for the SNRC.
• Met with Water Reclamation staff and the General Manager/CEO to
update cost estimates in the SNRC financial model.
• Completed selection of a rate consultant for updating cost of service
estimates as a result of inflation and construction delays.
Goal Two
Fully Understood the Cost
and Accounting Complexities
Associated with New Funds
• Completed setup of the Water Reclamation Fund in the District’s
financial accounting software.
• Completed setup of CFD 2021-1 (Mediterra) in the Tyler software.
• Worked with consultant to place property assessments on tax rolls for
the Mediterra development.
Goal Three
Maximized the Utility and Security
of Financial Software and Data
• Considered moving the Tyler Enterprise Resource Planning (ERP)
software to a hosted environment but determined to keep systems in-
house at least through FY 2023-24.
• Worked with IT to develop / identify link between Tyler and Geographic
Information System (GIS) for projects closed in FY 2022-23.
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 2020-21 FY 2021-22 FY 2022-23
II-A Days to prepare and present Annual Report
after fiscal year end 135 days 160 167 103
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 3 2 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
11 9 10 11
II-A
Consecutive years Certificate of Achievement
for Excellence in Financial Reporting received
for PAFR
6 4 5 6
PROGRAM BUDGET DETAIL
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 707,850 $ 700,000 $ 503,267 $ 775,000 $ 75,000 11%
5103 Overtime 28,066 13,000 6,118 13,000 - 0%
5200 Benefits 360,574 318,000 302,055 374,000 56,000 18%
OPERATING EXPENSES
6203 Office Supplies 7,922 12,000 4,900 7,000 (5,000)-42%
6301 Contract Services 77,017 184,000 69,645 90,000 (94,000)-51%
6302 Banking Services 17,633 18,000 19,819 32,000 14,000 78%
6303 Printing & Publishing 755 1,000 2,692 7,000 6,000 600%
6304 Legal Services 6,450 10,000 5,720 10,000 - 0%
6307 Uniforms 167 2,000 1,614 2,000 - 0%
6402 Telephone 2,283 3,000 2,345 3,000 - 0%
6406 Postage 347 1,000 402 1,000 - 0%
6501 Memberships & Dues 3,459 5,000 2,847 5,000 - 0%
6502 Professional Development 15,184 - 6,311 20,000 20,000 100%
6504 Meetings 2,373 4,000 3,256 5,000 1,000 25%
FINANCE & ACCT. TOTAL $ 1,230,080 $ 1,271,000 $ 930,991 $ 1,344,000 $ 73,000 6%
SIGNIFICANT CHANGES
IN PROGRAM BUDGET
• Decreased Contract Services budget due to completion of
the Cost of Service Analysis/Rate Study during FY 2022-23.
• Increased Professional Services budget for staff to attend
various conferences.
EAST VALLEY WATER DISTRICT | 149
[FINANCE & ACCOUNTING]
4%
[$1,344,000]
Program
Budget Allocation
[PAGE LEFT BLANK]
Intentionally
FY 2023-24 BUDGET | 150
EAST VALLEY WATER DISTRICT | 151
IN
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INFORMATION TECHNOLOGY
Program Summaries Section
Information Technology coordinates and implements
agency-wide technology by facilitating vendor access
and support for technology focused projects.
FY 2023-24 BUDGET | 152
• Governing Board
• General Administration
• Human Resources
• 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
PROGRAM STRUCTURE
GENERAL
MANAGER/CEO
NETWORK
ADMINISTRATOR
INFORMATION
TECHNOLOGY ANALYST
CHIEF FINANCIAL
OFFICER
INFORMATION
TECHNOLOGY MANAGER
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
INFORMATION TECHNOLOGY
PROGRAM SUMMARIES
Goals Objectives
1 Ensure Reliability
of Technology
Infrastructure for
Primary Business
and Operation
Requirements
1. Upgrade all server operating systems to comply with Microsoft server
life cycle.
2. Begin working on updating active directory and group policy cleanup.
3. Install hardware and software for the SNRC solids, headworks, and main
electrical building.
4. Upgrade District firewalls to comply with standardization best-practice.
2 Improve Systems
and Cybersecurity
Measures for
Response Functions
1. Continue monthly email phishing campaign to reduce click rate and
educate staff on security risk.
2. Implement multi-factor authentication software.
3. Replace current email security with email cloud security.
4. Contract for network penetration test.
3 Analyze Current
Systems to Enhance
Reporting and
Automate Processes
1. Work with General Manager/CEO and Department heads to identify
data-based decisions and source of supporting data.
2. Work with Administration, Customer Service, and Finance staff
to implement naming conventions for the District’s electronic
document repository.
3. Work with Tyler and Customer Service to:
• Revise and streamline the utility billing packet
processing workflow process.
• Reconfigure payment contract, conservation reports,
disconnection door hangers, and arrearage report.
Directly Supports the Five-Year Work Plan
FY 2023-24 BUDGET | 154
FY 2022-232022-23 ACCOMPLISHMENTS
Goal One
Ensured Reliability of Technology
Infrastructure for Primary Business
and Operation Requirements
• Upgraded software and servers and SCADA radios at Plants 25, 39,
99, 131, and 132.
• Replaced remaining end-of-life servers and switches at the SNRC and
District Headquarters.
• Installed new SCADA virtual host servers and updated virtual software
licensing at District Headquarters and Plant 134.
• Ordered valve exercise equipment.
Goal Two
Improved Systems and
Cybersecurity Measures for
Response Functions
• Continued monthly email phishing campaign and reduced click rate
and educated staff on security risk.
• Established and equipped an Emergency Operations Center (EOC) at
the SNRC.
• Implemented CISCO umbrella Domain Name System (DNS) security to
add a layer of security to the District network.
• Refreshed backup batteries in server room to comply with Emergency
Preparedness Plan.
Goal Three
Analyzed Current Systems
to Enhance Reporting and
Automate Processes
• Implemented Tyler’s EnerGov Asset Management System.
• Finalized the transition from Cityworks to a new software solution.
• Assisted Administration with implementing a new naming convention
within Laserfiche.
• Reviewed the pros and cons for transitioning Tyler Incode from On-
Premise to their hosted solution.
Other Accomplishments • Replaced backup batteries at District Headquarters to align with the
Emergency Response Plan.
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.
KEY PERFORMANCE INDICATORS CHANGES
Agency
Goal Key Performance Indicator Target FY 2020-21 FY 2021-22 FY 2022-23
IV-A Elevate Cybersecurity awareness by sending
out test ‘phishing’ emails 800 1,019 1,080 1,139
IV-A Maximize system availability 99%99%99%99%
IV-A Cybersecurity awareness results for phishing
email click rate <7%6%7.8%7.9%
Agency
Goal Key Performance Indicator Target FY 2020-21 FY 2021-22 FY 2022-23
IV-A
Complete disaster recovery drill (system
restoration, power outages, emergency
notifications)
2 2 4 4
III-B Receive ‘Excellent’ scores on IT satisfaction
surveys submitted by staff >95%96%100%100%
III-B Minimize resolution time for help desk issues
submitted by staff 24 Hrs.24 17.2 4.4
PROGRAM BUDGET DETAIL
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 426,103 $ 380,000 $ 328,602 $ 433,000 $ 53,000 14%
5102 Temporary Labor - - - 17,000 17,000 100%
5103 Overtime - - 574 - - 0%
5200 Benefits 119,573 212,000 236,401 259,000 47,000 22%
OPERATING EXPENSES
6201 Materials & Supplies 67,911 45,000 47,408 65,000 20,000 44%
6203 Office Supplies 352 1,000 1,294 5,000 4,000 400%
6301 Contract Services 722,579 690,000 454,062 925,000 235,000 34%
6307 Uniforms 611 1,000 1,349 1,000 - 0%
6402 Telephone 15,170 12,000 26,644 12,000 -0%
6501 Memberships & Dues 654 1,000 173 4,000 3,000 300%
6502 Professional Development 4,740 1,000 507 1,000 - 0%
6504 Meetings 86 1,000 178 - (1,000) -100%
IT TOTAL $ 1,357,779 $ 1,344,000 $ 1,097,192 $ 1,722,000 $ 378,000 28%
SIGNIFICANT CHANGES
IN PROGRAM BUDGET
• Increased Contract Services budget due to fiber
implementation at Plant 134.
• Increased Contract Services budget due to
coaxial phone lines.
• Moved Emergency Notification renewal from
Public Affairs to IT.
• Installed CISCO Umbrella DNS Security.
EAST VALLEY WATER DISTRICT | 155
[INFORMATION TECHNOLOGY]
5%
[$1,722,000]
Program
Budget Allocation
[PAGE LEFT BLANK]
Intentionally
FY 2023-24 BUDGET | 156
EAST VALLEY WATER DISTRICT | 157
CUSTOMER SERVICE
Program Summaries Section
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Customer Service downloads meter read data,
audits data, and submits data files to a third-party
vendor for bill printing and mailing.
FY 2023-24 BUDGET | 158
• Governing Board
• General Administration
• Human Resources
• 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 2
Customer Service Representative I 2
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
CUSTOMER SERVICE
REPRESENTATIVE I
CUSTOMER SERVICE
REPRESENTATIVE I PT
CHIEF FINANCIAL
OFFICER
CUSTOMER SERVICE
SUPERVISOR
(2)
(2)
(2)
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
CUSTOMER SERVICE
PROGRAM SUMMARIES
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. Work with Public Affairs to address Customer Service needs for the
District’s new web portal.
2 Work with other
Departments to
Recover Costs That
Are Not Currently
Captured by the
District Fee Schedule
1. Develop and propose a fee for recovery of costs associated with
clearing obstructions preventing access to District meters.
2. Develop and propose penalties or fees to discourage defaults on
payment plan contracts.
3. Research costs associated with credit card charges and propose a fee/
charge for cost recovery.
4. Prepare revisions to ordinance and fee schedule and incorporate them
into Public Hearing process for rates.
3 Identify and
Implement Software
Adjustments Needed
Due to SB 998 and
other Legislation
1. Work with Tyler and IT to:
• Reconfigure Tyler revenue codes to accommodate new time
requirements under SB 998.
• Revise and streamline utility billing packet processing
workflow process.
• Reconfigure payment contract, conservation reports,
disconnection door hangers, and arrearage report.
Directly Supports the Five-Year Work Plan
FY 2023-24 BUDGET | 160
FY 2022-232022-23 ACCOMPLISHMENTS
Goal One
Developed Strategies to Address
Organizational Service Needs
• Worked with IT to implement Tyler’s mobile work order application in
EnerGov Asset Management.
• Reviewed new vendor contracts with potential expansion of capabilities
and determined existing processes are more efficient.
• Provided Customer Service Supervisor administrative permissions to
grant staff access to transaction processing tools.
Goal Two
Modified Processes to Comply
with Changes in Legislation and
Agreements While Maintaining
Financial Stability
• Met quarterly with Conservation to assist with changing drought
regulations mandated by the State of California.
• Researched collection procedure options (in place at other agencies)
to avoid service disconnection as a tool for collection of delinquent
account balances and determined not a suitable option for the District.
• Continued to process wastewater billing under both SNRC and
SBMWD rates, pending transition of all wastewater flows to the SNRC.
Goal Three
Fully Understood and Utilized
Smart Meter Capabilities
• Coordinated with Public Affairs to increase the use of AMI data to
support conservation efforts.
• Reviewed routes and billing dates for possible changes to
accommodate timing of bills for customers on fixed income, and
determined that enhancements will need to be made to the billing
software.
LEVELS OF SERVICE
The Customer Service Program has six 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 2020-21 FY 2021-22 FY 2022-23
III-B Reduce number of customers disconnected for
non-payment each year 1,800 0*0*1,661
III-B Number of customer payments received
through convenient off-site locations 10,000 5,346 4,323 3,886
I-B Number of customer service training hours per
employee 16 13 4 4
IV-C Customers enrolled in paperless billing 2,000 2,049 1,411 1,506
IV-C Customers enrolled in the Pre-Authorized
Payment Plan (auto-debit)2,000 2,762 3,663 3,001
*Due to California Governor Executive Order N-42-20 and the COVID-19 Pandemic, customer disconnections were prohibited.
PROGRAM BUDGET DETAIL
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 431,702 $ 533,000 $ 401,451 $ 619,000 $ 86,000 16%
5102 Temporary Labor 5,719 - 56,395 - - 0%
5103 Overtime 20,363 7,000 15,703 7,000 - 0%
5200 Benefits 270,237 307,000 255,733 310,000 3,000 1%
OPERATING EXPENSES
6201 Materials & Supplies 1,237 - - - - 0%
6203 Office Supplies 1,032 7,000 5,962 7,000 - 0%
6301 Contract Services 258,641 277,800 204,496 240,000 (37,800)-14%
6302 Banking Services 217,487 229,000 274,561 200,000 (29,000)-13%
6303 Printing & Publishing 1,843 7,000 13,578 10,000 3,000 43%
6304 Legal Services - 5,000 8,047 5,000 - 0%
6307 Uniforms 2,039 3,000 3,843 4,000 1,000 33%
6308 Billing Services 49,803 60,000 71,002 52,000 (8,000)-13%
6309 Shut Off Notice Services - 225,000 235,317 225,000 - 0%
6402 Telephone 11,432 8,000 8,834 8,000 - 0%
6406 Postage 118,588 61,200 161,840 153,000 91,800 150%
6501 Memberships & Dues - 1,000 - 1,000 - 0%
6502 Professional Development 16,679 6,500 - 13,000 6,500 100%
6504 Meetings 724 3,000 2,782 3,000 - 0%
6703 Cash Over/Short 64 1,000 1,868 1,000 - 0%
6704 Bad Debt 38,187 5,000 7,084 5,000 - 0%
CUSTOMER SERVICE TOTAL $ 1,445,777 $ 1,746,500 $ 1,728,496 $ 1,863,000 $ 116,500 7%
SIGNIFICANT CHANGES
IN PROGRAM BUDGET
• Increased Professional Services budget for staff
to attend various conferences.
EAST VALLEY WATER DISTRICT | 161
[CUSTOMER SERVICE]
5%
[$1,863,000]
Program
Budget Allocation
[PAGE LEFT BLANK]
Intentionally
FY 2023-24 BUDGET | 162
EAST VALLEY WATER DISTRICT | 163
METER SERVICES
Program Summaries Section
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Meter Services is responsible for maintaining the
District's smart meter network, on-site customer meter-
related requests, and customer service assistance.
FY 2023-24 BUDGET | 164
• Governing Board
• General Administration
• Human Resources
• 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)
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
METER SERVICES
PROGRAM SUMMARIES
Goals Objectives
1 Implement
Inspection Program
for AMI Meters
1. Identify additional necessary vaults in need of lid replacements by
utilizing replacement schedule.
2. Visually inspect necessary 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. Install additional data collector near Plant 132 to address unreliable
transmission of reads in routes 8, 155, 92, and 101.
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.
Directly Supports the Five-Year Work Plan
FY 2023-24 BUDGET | 166
FY 2022-232022-23 ACCOMPLISHMENTS
Goal One
Implemented Inspection Program
for AMI Meters
• Identified the need of five vault lid replacements and created
replacement schedule.
• Visually inspected meter boxes where read problems occurred and
responded to 1,000 units monthly and made 70 repairs on average per
month.
Goal Two
Worked with Customer Service to
Address Coverage Issues with the
AMI Network
• Confirmed accuracy of two MIUs and meter reads per month.
• Decided not to install additional registers on meters in routes 44 and
123, that utilize cell towers for data transmission.
Goal Three
Continued Meter Testing
Programs in Compliance with
State Water Audits Best Practices
• Conducted an audit of 10% of large meters for accuracy to ensure
compliance with 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 2020-21 FY 2021-22 FY 2022-23
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 3
PROGRAM BUDGET DETAIL
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 172,271 $ 164,000 $ 132,187 $ 173,000 $ 9,000 5%
5103 Overtime 653 6,000 2,976 6,000 - 0%
5200 Benefits 83,176 96,000 82,694 101,000 5,000 5%
OPERATING EXPENSES
6201 Materials & Supplies 7,888 1,000 - 1,000 - 0%
6202 Tools 3,052 - - 3,000 3,000 100%
6301 Contract Services 3,291 - - 5,000 5,000 100%
6307 Uniforms 1,759 2,000 1,384 2,000 - 0%
6402 Telephone 2,083 1,000 1,281 1,000 - 0%
METER SERVICES TOTAL $ 274,173 $ 270,000 $ 220,522 $ 292,000 $ 22,000 8%
SIGNIFICANT CHANGES
IN PROGRAM BUDGET
• None.
EAST VALLEY WATER DISTRICT | 167
[METER SERVICES]
1%
[$292,000]
Program
Budget Allocation
[PAGE LEFT BLANK]
Intentionally
FY 2023-24 BUDGET | 168
ENGINEERING
Program Summaries Section
EAST VALLEY WATER DISTRICT | 169
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Engineering coordinates and supports new
development within the District's service area by
streamlining plan checking and inspection efforts.
FY 2023-24 BUDGET | 170
• Governing Board
• General Administration
• Human Resources
• 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)
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
ENGINEERING
PROGRAM SUMMARIES
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 construction work for rehabilitation of reservoir at Plant 56.
2. Complete construction work for rehabilitation of booster pump system
at Plant 101.
3. Complete preliminary design of Canal 3 Zone reservoir at the
Applewood site.
4. Complete design and start replacement of 6.5 miles of District
water mains.
5. Monitor the Baseline Bridge replacement project and associated
water main relocation.
6. Design a Plunge Creek under-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 analysis of alternative energy sources.
4. Complete design of new groundwater well at Plant 129.
3 Complete
Construction and
Commissioning of
the SNRC
1. Complete construction of the regional recycled water pipeline and
Weaver Basins.
2. Participate in the feasibility study for salt mitigation, related to
recharging groundwater with recycled water.
Directly Supports the Five-Year Work Plan
FY 2023-24 BUDGET | 172
FY 2022-232022-23 ACCOMPLISHMENTS
Goal One
Developed and Implemented the
District’s Capital Improvement
Program to Address Rehabilitation
and Maintenance Needs While
Preparing for New Development
• Completed construction work for rehabilitation of the reservoir at Plant
108.
• Completed design and construction of the grant-funded stationary
generator at Plant 101.
• Completed design work for rehabilitation of the booster pump system
at Plant 101.
• Initiated preliminary design of a Canal 3 Zone reservoir at the
Applewood site.
Goal Two
Developed Plans to Optimize
District Utilization of Surface
Water and Groundwater Sources
• Completed construction of process improvements related to Granular
Activated Carbon at Plant 134.
• Initiated groundwater master planning efforts to consider short-term
and long-term actions related to groundwater production capacity.
Goal Three
Completed Construction and
Commissioning of the SNRC
• Completed construction of the emergency storage basin at the Weaver
Basins Recharge Facility site.
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 2020-21 FY 2021-22 FY 2022-23
IV-A Initiate fully funded projects included in the
current year CIP 100%90%100%100%
III-B Complete development infrastructure plan
reviews in < 14 days 100%100%100%100%
III-B Issue development impact fee costs
estimates in < 2 days 100%100%100%100%
PROGRAM BUDGET DETAIL
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 937,099 $ 568,000 $ 448,354 $ 627,000 $ 59,000 10%
5103 Overtime 3,481 3,000 - 3,000 - 0%
5200 Benefits 317,528 193,000 116,710 153,000 (40,000)-21%
OPERATING EXPENSES
6201 Materials & Supplies 56,692 9,000 924 9,000 - 0%
6202 Tools 6,946 7,000 3,003 7,000 - 0%
6203 Office Supplies 266 3,000 407 3,000 - 0%
6301 Contract Services 211,082 293,000 50,390 377,000 84,000 29%
6303 Printing & Publishing - 6,000 - 3,000 (3,000)-50%
6304 Legal Services 41,740 40,000 11,055 40,000 - 0%
6307 Uniforms 2,785 3,000 1,563 3,000 - 0%
6402 Telephone 2,957 2,000 3,639 3,000 1,000 50%
6405 Permits 82,183 78,000 76,987 184,000 106,000 136%
6406 Postage 22 1,000 53 1,000 - 0%
6501 Memberships & Dues 2,330 5,000 1,803 5,000 - 0%
6502 Professional Development 6,867 10,000 7,014 7,000 (3,000)-30%
6504 Meetings 531 3,000 587 3,000 - 0%
ENGINEERING TOTAL $ 1,672,509 $ 1,224,000 $ 722,489 $ 1,428,000 $ 204,000 17%
SIGNIFICANT CHANGES
IN PROGRAM BUDGET
• Increased Contract Services for cost share of
$125,000 for a Feasibility Study.
EAST VALLEY WATER DISTRICT | 173
[ENGINEERING]
4%
[$1,428,000]
Program
Budget Allocation
[PAGE LEFT BLANK]
Intentionally
FY 2023-24 BUDGET | 174
WATER PRODUCTION
Program Summaries Section
EAST VALLEY WATER DISTRICT | 175
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Water Production specializes in managing
the overall water distribution system.
FY 2023-24 BUDGET | 176
• Governing Board
• General Administration
• Human Resources
• 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 II 3
Water Production Operator I 1
Administrative Assistant 1
Total Full-Time 7
ADMINISTRATIVE
ASSISTANT
GENERAL
MANAGER/CEO
OPERATIONS
MANAGER
WATER PRODUCTION
SUPERVISOR
SR. WATER
PRODUCTION OPERATOR
WATER PRODUCTION
OPERATOR I
DIRECTOR OF
ENGINEERING &
OPERATIONS
WATER PRODUCTION
OPERATOR II (3)
PROGRAM STRUCTURE
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
WATER PRODUCTION
PROGRAM SUMMARIES
Goals Objectives
1 Implement a Plan to
Identify and Enhance
Water Sources’
Requirements Due to
the SNRC Discharge
Location
1. Install pressure regulating valve (PRV) at Plant 129 to connect plant to
the upper zone distribution system.
2. Contract for repairs and upgrades to Well 120 to ensure its operational
readiness for summer 2023 production.
3. Support work of contractor to complete rehabilitation of Plant 101.
2 Enhance the SCADA
System to Achieve
Water Production
Requirements
1. Work with IT to install SCADA tower to improve radio
communications at District Headquarters or alternative site.
2. Work with contractor to inspect and enhance communication
and telemetry.
3 Rehabilitate Plant
Components to
Ensure Water
Production
1. Coordinate with Water Maintenance for replacement of isolation valves
to repair critical PRV (Baseline/Sterling).
2. Work with Engineering for rehabilitation of reservoir at Plant 56.
3. Solicit proposals and finalize new master agreements for pump and
motor maintenance.
Directly Supports the Five-Year Work Plan
FY 2023-24 BUDGET | 178
FY 2022-232022-23 ACCOMPLISHMENTS
Goal One
Implemented a Plan to Identify
and Enhance Water Sources’
Requirements Due to the SNRC
Discharge Location
• Completed coordination with contractor to rehabilitate booster at
Plant 125 to accommodate increased well capacity.
• Worked with Engineering to determine best utilization of water
produced by Well 120.
• Identified and prioritized making Well 120 operational with electrical,
SCADA, and required permitting.
Goal Two
Enhanced the SCADA System
to Achieve Water Production
Requirements
• Investigated and temporarily deferred installation of SCADA tower
to improve radio communications at District Headquarters or
alternate sites.
• Worked with IT to complete ClearScada software update.
• Completed SCADA radio updates at Plants 25, 33, 37, and 38.
Goal Three
Rehabilitated Plant Components
to Ensure Water Production
• Completed replacement of isolation valves to repair critical PRV
(Baseline/Sterling, N Church, and Central/Mansfield) Stations 309,
305, and 325.
• Completed Plant 108 rehabilitation project.
LEVELS OF SERVICE
The Water Production 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 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 2020-21 FY 2021-22 FY 2022-23
IV-A Perform upgrades to SCADA radios as
recommended by consultant 5/Yr 6 5 3
IV-C Perform or schedule repairs recommended by
reservoir inspection report 1/Yr 1 0 1
IV-D Implement available SCADA software updates 100%100%100%100%
IV-A Perform repairs recommended from the
electrical inspection report 100%100%100%100%
PROGRAM BUDGET DETAIL
Administration
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 268,571 $ 212,000 $ 222,295 $ 271,000 $ 59,000 28%
5103 Overtime - 1,000 500 1,000 - 0%
5104 Standby 14,947 15,000 13,683 15,000 - 0%
5200 Benefits 155,062 158,000 166,026 180,000 22,000 14%
OPERATING EXPENSES
6201 Materials & Supplies 478 - 2,105 - - 0%
6202 Tools 639 6,000 137 6,000 - 0%
6203 Office Supplies 3,970 4,000 5,404 4,000 - 0%
6301 Contract Services 71,083 101,000 87,347 103,000 2,000 2%
6307 Uniforms 11,677 15,000 9,762 15,000 - 0%
6402 Telephone 8,908 14,000 12,262 14,000 - 0%
6501 Memberships & Dues 1,091 3,000 980 3,000 - 0%
6502 Professional Development 7,843 7,000 16,265 7,000 - 0%
6504 Meetings 4,125 1,000 1,637 1,000 - 0%
ADMINISTRATION TOTAL $ 548,394 $ 537,000 $ 538,403 $ 620,000 $ 83,000 15%
EAST VALLEY WATER DISTRICT | 179
[WATER PRODUCTION]
FY 2023-24 BUDGET | 180
Wells
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 428,612 $ 200,000 $ 124,545 $ 215,000 $ 15,000 8%
5103 Overtime 33,327 17,000 9,735 17,000 - 0%
5200 Benefits 126,184 73,000 64,518 83,000 10,000 14%
OPERATING EXPENSES
6101 Purchased Water 206,142 302,000 400,000 300,000 (2,000)-1%
6102 Groundwater
Replenishment 95,341 110,000 146,175 351,000 241,000 219%
6103 Water Assessment 71,613 74,000 2,161 117,000 43,000 58%
6201 Materials & Supplies 20,655 45,000 36,842 45,000 - 0%
6204 Chemicals 109,440 150,000 146,246 150,000 - 0%
6301 Contract Services 96,088 300,000 39,129 265,000 (35,000)-12%
6403 Electricity 1,740,440 2,275,000 2,302,845 2,275,000 - 0%
6405 Permits 70,710 100,000 103,066 100,000 - 0%
WELLS TOTAL $ 2,998,552 $ 3,646,000 $ 3,375,262 $ 3,918,000 $ 272,000 7%
Boosters
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ - $ 114,000 $ 91,315 $ 119,000 $ 5,000 4%
5103 Overtime 10,432 14,000 11,125 14,000 - 0%
5200 Benefits 24,625 63,000 57,008 63,000 - 0%
OPERATING EXPENSES
6201 Materials & Supplies 13,474 20,000 26,226 20,000 - 0%
6301 Contract Services 25,197 100,000 70,222 100,000 - 0%
6403 Electricity 646,029 675,000 715,082 710,000 35,000 5%
BOOSTERS TOTAL $ 719,757 $ 986,000 $ 970,978 $ 1,026,000 $ 40,000 4%
Reservoirs
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 193,470 $ 205,000 $ 203,892 $ 185,000 $ (20,000)-10%
5103 Overtime 14,326 18,000 10,114 14,000 (4,000)-22%
5200 Benefits 95,002 110,000 110,632 74,000 (36,000)-33%
OPERATING EXPENSES
6201 Materials & Supplies 51,744 60,000 20,727 60,000 - 0%
6204 Chemicals 729 50,000 9,638 50,000 - 0%
6301 Contract Services 33,248 45,000 800 45,000 - 0%
RESERVOIRS TOTAL $ 388,519 $ 488,000 $ 355,803 $ 428,000 $ (60,000)-12%
TOTAL WATER PRODUCTION $ 4,655,222 $ 5,657,000 $ 5,240,446 $5,992,000 $ 335,000 6%
SIGNIFICANT CHANGES
IN PROGRAM BUDGET
• Discontinued production wells at Abbey Way, 143, 146, and
147 due to release of recycled water for recharge.
• The credit previously received for North Fork water provided
for recharge, is no longer in effect.
EAST VALLEY WATER DISTRICT | 181
[WATER PRODUCTION]
15%
[$5,992,000]
Program
Budget Allocation
[PAGE LEFT BLANK]
Intentionally
FY 2023-24 BUDGET | 182
WATER TREATMENT
Program Summaries Section
EAST VALLEY WATER DISTRICT | 183
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Water Treatment manages three sources of
water, including surface water, groundwater,
and State Water Project imported water.
FY 2023-24 BUDGET | 184
• Governing Board
• General Administration
• Human Resources
• 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
Water Treatment is responsible for management of three different sources of supply used by the District. The District
operates Plant 134, Surface Water Treatment Plant, which can treat two water sources Santa Ana River water and
imported water from the State Water Project. Staff also operate two unique groundwater treatment facilities: Plant 28
uses GAC and Plant 39 is a blending facility.
EAST VALLEY WATER DISTRICT | 185
WATER TREATMENT
PROGRAM SUMMARIES
Goals Objectives
1 Maximize Plant 134
Water Production
While Utilizing GAC
Facilities
1. Develop flow standards to meet water quality objectives.
2. Determine frequency of carbon filtration media changeouts to maintain
water quality.
3. Implement data collection requirements identified in the permit
amendment.
2 Complete Plant
134 Membrane
Replacements
Using a Five-Phase
Replacement
Schedule
1. Procure the necessary membrane modules from the manufacturer in
accordance with the District’s Purchasing Policy.
2. Coordinate and schedule in-house installation of new membranes in the
fifth and final train.
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.
Directly Supports the Five-Year Work Plan
FY 2023-24 BUDGET | 186
FY 2022-232022-23 ACCOMPLISHMENTS
Goal One
Supported Construction of GAC
Facilities at Plant 134
• Developed an operating plan for Plant 134 construction.
• Amended Permit with the State Water Resources Control Board
(SWRCB).
• Provided final performance data to the SWRCB and closed-out the
compliance order.
Goal Two
Completed Plant 134 Membrane
Replacements Using a Five-Phase
Replacement Schedule
• Deferred to allow use of funds for other projects and rolled forward to
FY 2023-24 objectives.
Goal Three
Evaluated and Rehabilitated
Existing Clean-in-Place
Equipment at Plant 134
• Replaced primary pump and scheduled remaining pumps for
replacement next fiscal year.
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 2020-21 FY 2021-22 FY 2022-23
IV-A Meet all regulatory requirements 100%100%100%100%
IV-A Maximize utilization of plant capacity
subject to source water availability 7.5 MGD 3.5 3.5 4.0
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 5 4
PROGRAM BUDGET DETAIL
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 263,382 $ 261,000 $ 186,573 $ 273,000 $ 12,000 5%
5103 Overtime 41,009 39,000 63,351 39,000 - 0%
5200 Benefits 149,889 159,000 155,205 164,000 5,000 3%
OPERATING EXPENSES
6201 Materials & Supplies 35,200 150,000 150,002 20,000 (130,000)-87%
6204 Chemicals 177,850 150,000 181,891 180,000 30,000 20%
6301 Contract Services 127,137 147,000 204,209 222,000 75,000 51%
6307 Uniforms 1,552 2,000 614 2,000 - 0%
6402 Telephone 2,662 2,000 3,997 2,000 - 0%
6403 Electricity 178,681 180,000 134,735 180,000 - 0%
WATER TREATMENT TOTAL $ 977,362 $ 1,090,000 $ 1,080,577 $ 1,082,000 $ (8,000)-1%
SIGNIFICANT CHANGES
IN PROGRAM BUDGET
• Increased Contract Services budget due to Plant 134
GAC expansion.
EAST VALLEY WATER DISTRICT | 187
[WATER TREATMENT]
3%
[$1,082,000]
Program
Budget Allocation
[PAGE LEFT BLANK]
Intentionally
FY 2023-24 BUDGET | 188
EAST VALLEY WATER DISTRICT | 189
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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 2023-24 BUDGET | 190
• Governing Board
• General Administration
• Human Resources
• 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 Quality Coordinator 1
Water Quality Technician 1
Total Full-Time 2
PROGRAM STRUCTURE
GENERAL
MANAGER/CEO
OPERATIONS
MANAGER
WATER PRODUCTION
SUPERVISOR
WATER QUALITY
COORDINATOR
WATER QUALITY
TECHNICIAN
DIRECTOR OF
ENGINEERING &
OPERATIONS
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 | 191
WATER QUALITY
PROGRAM SUMMARIES
Goals Objectives
1 Evaluate Water
Quality Regulations
and Improve
Process Efficiencies
to Enhance Water
Quality Compliance
1. Implement Updated Sampling Requirements outlined in the District’s
latest Permit amendment.
2. Complete EPA registration for Unregulated Contaminant Monitoring
Rule (UCMR5) sample schedule.
3. Identify sample requirements for U.S. EPA’s Revised Lead and Copper
Rule, effective summer 2024.
2 Implement
Backflow Program
Enhancement
Modifications
1. Complete backflow software migration and implementation for cloud-
based service.
2. Provide customer and private tester training for accessing and updating
customer device information via cloud-based software.
3. Work with customers to replace outdated and unapproved backflow
devices.
3 Implement
Customer / Vendor
FOG Program
Requirements and
Training Campaign
1. Conduct customer outreach and vendor training for cloud-based
compliance reporting.
2. Create customer Best Management Practices campaign to maintain
program standards.
3. Assist Water Reclamation with procurement and management of
contract for FOG compliance inspection.
Directly Supports the Five-Year Work Plan
FY 2023-24 BUDGET | 192
FY 2022-232022-23 ACCOMPLISHMENTS
Goal One
Evaluated Water Quality
Regulations and Improved
Process Efficiencies to Enhance
Water Quality Compliance
• Implemented sampling programs to maximize surface water treatment
process efficiencies.
• Monitored EPA requirements for Unregulated Contaminant Monitoring
Rule 5 (UCMR5) sampling.
Goal Two
Re-Routed Outdated Fire Service
Backflows to Aboveground
• Replaced outdated Fire Service backflows at Stater Bros, Safety Kleen,
and two apartment complexes.
Goal Three
Assisted in Launching FOG
Program Transition and Software
Procurement
• Worked with Engineering and IT during software implementation.
• Assisted with FOG program transition and compliance.
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 2020-21 FY 2021-22 FY 2022-23
IV-A Conduct all water quality sampling required by
SWRCB and 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 (avg)2.0 Hrs 1.5 1.5 1.5
IV-A Number of underground fire services to be re-
routed aboveground annually 3 N/A 3 4
*New KPI for FY 2022-23.
PROGRAM BUDGET DETAIL
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 110,779 $ 119,000 $ 93,790 $ 98,000 $ (21,000)-18%
5103 Overtime 1,079 6,000 2,270 6,000 - 0%
5200 Benefits 55,186 57,000 26,250 41,000 (16,000)-28%
WELLS OPERATING EXPENSES
6201 Materials & Supplies 22,865 13,000 15,946 14,000 1,000 8%
6301 Contract Services 63,100 75,000 47,194 66,000 (9,000)-12%
6307 Uniforms 1,624 4,000 1,401 4,000 - 0%
6504 Meetings 684 1,000 217 1,000 - 0%
RESERVOIR PERSONNEL EXPENSES
5101 Regular Labor 104,443 119,000 93,891 125,000 6,000 5%
5103 Overtime 1,079 6,000 2,270 6,000 - 0%
5200 Benefits 70,346 57,000 64,332 66,000 9,000 16%
RESERVOIR OPERATING EXPENSES
6201 Materials & Supplies 3,851 2,000 768 2,000 - 0%
6202 Tools 5,491 5,000 3,806 9,000 4,000 80%
6301 Contract Services 59,987 36,000 46,008 100,000 64,000 178%
6406 Postage - 2,000 - 2,000 - 0%
6502 Professional Development 852 2,000 4,061 3,000 1,000 50%
6503 Education Assistance 75 3,000 - 3,000 - 0%
WATER QUALITY TOTAL $ 501,441 $ 507,000 $ 402,204 $ 546,000 $ 39,000 8%
SIGNIFICANT CHANGES
IN PROGRAM BUDGET
• Hired a Part-Time Water Quality Worker.
• Increased Tools and Contract Services budgets due
to FOG program-related costs.
EAST VALLEY WATER DISTRICT | 193
[WATER QUALITY]
1%
[$546,000]
Program
Budget Allocation
[PAGE LEFT BLANK]
Intentionally
FY 2023-24 BUDGET | 194
EAST VALLEY WATER DISTRICT | 195
WATER MAINTENANCE
Program Summaries Section
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Water Maintenance maintains the District's
water transmission and distribution system.
FY 2023-24 BUDGET | 196
• Governing Board
• General Administration
• Human Resources
• 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 6
Field Service Worker II 4
Field Service Worker I 3
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
(6)
(4)
(3)
STOREKEEPER/
BUYER WAREHOUSE
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. Crew members remain on standby during non-business hours to
respond to customer afterhours requests and emergencies.
EAST VALLEY WATER DISTRICT | 197
WATER MAINTENANCE
PROGRAM SUMMARIES
Goals Objectives
1 Prioritize Preventative
Maintenance
Schedules to Ensure
Equipment Readiness
for Emergency
Response
1. Replace 40 identified inoperable gate valves on the west side of the
District. Conduct at least 20 in-house and supplement efforts to replace
up to 20 more using outside contractors.
2. Coordinate with Production to perform valve replacements to isolate
crucial PRV stations in Baseline/Sterling, North Church, and Central/
Mansfield.
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 Assess Operation
of Tyler’s EnerGov
Asset Management
Software
1. Continue training all staff on use of new software.
2. Enhance tracking of all labor, equipment, and materials for water
maintenance activities.
3 Continue
Replacement
Program for Mains
and Inground Fire
Service Devices
1. Replace 1,500 feet of water main in both Elmwood Drive north of
Lynwood and Valaria Court east of Valaria Drive.
2. Coordinate with Water Quality to replace identified outdated fire
services.
Directly Supports the Five-Year Work Plan
FY 2023-24 BUDGET | 198
FY 2022-232022-23 ACCOMPLISHMENTS
Goal One
Prioritized Preventative
Maintenance Schedules to
Ensure Equipment Readiness for
Emergency Response
• Ordered valve exercise equipment and software.
• Inspected, maintained, and replaced 900 of 3,025 hydrants on a three-
year cycle.
Goal Two
Completed Evaluation of Service
Order / Asset Management
Software
• Worked with IT to hold product demonstrations.
• Incorporated feedback from staff to finalize decision and procure
Tyler’s Asset Management software.
• Provided training for staff on use of new software.
Goal Three
Continued Replacement Program
for Mains and Inground Fire
Service Devices
• Replaced undersized main in Pleasant Hill Drive west of Palm Avenue.
• Coordinated with Water Quality to develop a replacement schedule for
outdated fire services; and replaced three inground fire services with
new “N’’ shaped aboveground devices.
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 2020-21 FY 2021-22 FY 2022-23
I-B Number of Water Maintenance staff with D-3
certification or higher 5 5 5 5
III-A Annual equipment and safety training hours per
staff member 16 16 16 16
IV-A Number of gate valves exercised 1,200 570 643 755
IV-C Respond to, and assess, customer leak concerns
within reasonable time frame 98%100%100%100%
IV-C Number of main leaks repaired <70 78 92 88
IV-C Estimate of water losses from main leaks (MG)<10 MG 0.54 MG 0.54 MG 0.54 MG
PROGRAM BUDGET DETAIL
Administration
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 215,628 $ 201,000 $ 164,273 $ 217,000 $ 16,000 8%
5103 Overtime - 2,000 1,695 2,000 - 0%
5104 Standby 22,603 20,000 25,636 20,000 - 0%
5200 Benefits 211,325 140,000 145,730 158,000 18,000 13%
OPERATING EXPENSES
6203 Office Supplies 1,422 3,000 - 3,000 - 0%
6307 Uniforms 3,261 12,000 3,873 1,000 (11,000)-92%
6402 Telephone 33,849 51,000 36,854 41,000 (10,000)-20%
6501 Memberships & Dues 1,519 2,000 1,477 2,000 - 0%
6502 Professional
Development 2,002 7,000 5,626 18,000 11,000 157%
6504 Meetings 2,770 3,000 3,953 3,000 - 0%
6706 Inventory Over/Short - - 64 - - 0%
ADMINISTRATION TOTAL $ 494,379 $ 441,000 $ 389,181 $ 465,000 $ 24,000 5%
Pipeline Maintenance
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 1,192,393 $ 1,153,000 $ 918,957 $ 914,000 $ (239,000)-21%
5103 Overtime 267,011 219,000 341,911 219,000 - 0%
5200 Benefits 436,851 502,000 581,909 620,000 118,000 24%
OPERATING EXPENSES
6201 Materials & Supplies 643,711 480,000 814,252 450,000 (30,000)-6%
6202 Tools 26,536 21,000 55,217 21,000 - 0%
6301 Contract Services 54,403 72,000 83,657 37,000 (35,000)-49%
6307 Uniforms 36,996 40,000 36,515 40,000 - 0%
6310 Street Services 265,113 525,000 453,915 525,000 - 0%
6405 Permits 5,670 5,000 4,860 - (5,000)-100%
PIPELINE MAINTENANCE TOTAL $ 2,928,684 $ 3,017,000 $ 3,291,193 $2,826,000 $ (191,000)-6%
TOTAL WATER MAINTENANCE $ 3,423,063 $ 3,458,000 $ 3,680,374 $ 3,291,000 $ (167,000)-5%
EAST VALLEY WATER DISTRICT | 199
[WATER MAINTENANCE]
FY 2023-24 BUDGET | 200
SIGNIFICANT CHANGES
IN PROGRAM BUDGET
• Increased Professional Development budget for
Class A or B Driver’s License renewals for staff.
• Increased Materials & Supplies and Tools
budgets for staff who will provide in-house labor
for a Water Main Replacement CIP Project.
9%
[$3,291,000]
Program
Budget Allocation
EAST VALLEY WATER DISTRICT | 201
WASTEWATER COLLECTION
Program Summaries Section
WA
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Wastewater Collection prevents wastewater
spillage and leaks by monitoring and
maintaining wastewater pipelines.
FY 2023-24 BUDGET | 202
• Governing Board
• General Administration
• Human Resources
• 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 III 1
Field Service Worker II 2
Total Full-Time 4
PROGRAM STRUCTURE
GENERAL
MANAGER/CEO
OPERATIONS
MANAGER
FIELD SERVICE
SUPERVISOR
FIELD SERVICE
WORKER III
FIELD SERVICE
WORKER II
DIRECTOR OF
ENGINEERING &
OPERATIONS
(1)
(2)
SR. FIELD
SERVICE WORKER
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 Program conducts a weekly
sewer cleaning program using specialized equipment. The jetting program ensures the whole system is cleaned within
24 months, and high maintenance areas are cleaned more regularly.
EAST VALLEY WATER DISTRICT | 203
WASTEWATER COLLECTION
PROGRAM SUMMARIES
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 east of Victoria.
2. Clean 230 miles of sewer main.
3. Develop communication protocols for Collection staff to notify
SNRC staff of specialized maintenance activities (tree root
chemicals, insects, etc).
2 Provide Support
for 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 spraying of 2,500 manholes for insect control.
SEWER
Directly Supports the Five-Year Work Plan
FY 2023-24 BUDGET | 204
FY 2022-232022-23 ACCOMPLISHMENTS
Goal One
Continued Wastewater Collection
System Maintenance and
Management
• Video inspected and assessed all District sewer mains between the
northern and southern District boundaries, and west of Victoria (75
miles).
• Cleaned 230 miles of sewer main.
Goal Two
Provided Support for New Fats,
Oils, and Grease (FOG) Program
• FOG program is on hold until the SNRC is operational, and a FOG
inspector is contracted.
Goal Three
Assisted with Updating the Sewer
System Management Plan (SSMP)
• Provided collection data for the SSMP.
• Updated collection system assets listed in the next SSMP.
LEVELS OF SERVICE
The Wastewater Collection Program has five 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 2020-21 FY 2021-22 FY 2022-23
I-B Number of staff holding CWEA certifications 4 6 6 5
IV-A Miles of wastewater mains inspected by video 55 52 71 75
IV-A Category 1 Sanitary System Overflows
reportable to SWRCB 0 0 0 0
IV-C Miles of wastewater mains jetted / cleaned 230 93 211 230
IV-C Spot repairs identified and completed 100%100%100%100%
PROGRAM BUDGET DETAIL
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 273,897 $ 362,000 $ 289,201 $ 371,000 $ 9,000 2%
5103 Overtime 5,687 9,000 31,664 9,000 - 0%
5200 Benefits 153,921 196,000 112,553 174,000 (22,000)-11%
OPERATING EXPENSES
6201 Materials & Supplies 10,558 31,000 6,118 31,000 - 0%
6202 Tools 4,490 5,000 9,487 5,000 - 0%
6301 Contract Services 136,263 273,000 193,670 273,000 - 0%
6305 Treatment Services 9,084,061 - 162,879 - - 0%
6307 Uniforms 2,310 4,000 1,413 4,000 - 0%
WASTEWATER
COLLECTION TOTAL $ 9,671,187 $ 880,000 $ 806,985 $ 867,000 $ (13,000)-1%
SIGNIFICANT CHANGES
IN PROGRAM BUDGET
• Due to commissioning of the SNRC, this
Program’s name changed from Wastewater
Maintenance to Wastewater Collection.
EAST VALLEY WATER DISTRICT | 205
[WASTEWATER COLLECTION]
2%
[$867,000]
Program
Budget Allocation
[PAGE LEFT BLANK]
Intentionally
FY 2023-24 BUDGET | 206
WATER RECLAMATION
Program Summaries Section
EAST VALLEY WATER DISTRICT | 207
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Water Reclamation oversees and manages
all operations related to the SNRC to ensure
compliance with strict State water quality standards.
FY 2023-24 BUDGET | 208
• Governing Board
• General Administration
• Human Resources
• 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 III 4
Wastewater Treatment Plant Mechanic I-II 1
Electrical & Instrumentation Controls Technician 1
Total Full-Time 8
GENERAL
MANAGER/CEO
WATER RECLAMATION
MANAGER
SR. WASTEWATER
TREATMENT
PLANT OPERATOR
WASTEWATER
TREATMENT PLANT
OPERATOR III
WASTEWATER
TREATMENT PLANT
MECHANIC III
DIRECTOR OF
ENGINEERING &
OPERATIONS
(4)
ELECTRICAL &
INSTRUMENTATION
CONTROLS TECHNICIAN
PROGRAM STRUCTURE
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 transition from a service contracted with
the SBMWD, to in-house operations at the newly completed SNRC during FY 2023-24. The SNRC operations include
anaerobic digestion for energy generation in order to offset the cost of power needed to operate the plant.
EAST VALLEY WATER DISTRICT | 209
WATER RECLAMATION
PROGRAM SUMMARIES
Goals Objectives
1 Complete Staffing
and Training for
New Wastewater
Treatment Operations
1. Continue to hire staff in accordance with staffing plan finalized by
Human Resources.
2. Ensure new employees are trained for operations and maintenance
for the SNRC.
3. Work with Water Quality to procure a contract for the FOG program
compliance inspector.
2 Meet and Exceed
Compliance
Requirements for the
SNRC
1. Implement and manage pre-treatment program.
2. Comply with Air Quality Management District (AQMD) emissions
requirements.
3. Comply with recycled water quality requirements.
3 Commence
Operations at the
SNRC
1. Complete transition:
• of wastewater flows to the SNRC over a three-month period,
• to discharge water to Weaver Basins,
• to generate on-site renewable energy, and
• to dispose residual solids.
2. Perform optimization of the Aeration system.
3. Manage new preventative maintenance program.
Directly Supports the Five-Year Work Plan
FY 2023-24 BUDGET | 210
FY 2022-232022-23 ACCOMPLISHMENTS
Goal One
Completed Staffing and
Training for New Wastewater
Treatment Operations
• Hired Wastewater Treatment Plant Operator III.
• Solicited for three more staff.
• Updated staffing plan to hire remaining staff next year.
• Staff participated in several training events by different vendors.
Goal Two
Met and Exceeded Compliance
Requirements for the SNRC
• Implemented HachWIMS compliance software.
• Negotiated all AQMD and water quality permits.
• Held Title 22 hearing for Effluent permit.
• Updated Sewer Ordinance to establish legal authority to enforce pre-
treatment program; includes FOG.
Goal Three
Commenced Operations at
the SNRC
• Completed seed sludge investigations.
• Finalized agreement with Anaergia for biosolid residual disposal.
• Implemented a preventative maintenance schedule within Tyler
Energov Asset Management software.
LEVELS OF SERVICE
The Water Reclamation Program has five 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 2020-21 FY 2021-22 FY 2022-23
I-B Number of staff holding Wastewater
Treatment certifications 6 2 2*6*
IV-A Exceed NPDES Requirements (85%) for
Removal of BOD and TSS at the SNRC 95%N/A N/A N/A
IV-A Deliver recycled water to SBVMWD for
groundwater recharge 98%N/A N/A N/A
IV-C Tipping Fees collected from outside haulers $3.2M N/A N/A N/A
IV-C Complaints about noise / odor / congestion by
surrounding neighbors 0 5 N/A N/A
*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.
PROGRAM BUDGET DETAIL
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ - $ 470,000 $ 171,388 $ 939,000 $ 469,000 100%
5103 Overtime - 7,000 8,152 25,000 18,000 257%
5104 Standby - - - 55,000 55,000 100%
5200 Benefits - 300,000 272,536 456,000 156,000 52%
OPERATING EXPENSES
6201 Materials & Supplies - 35,000 6,380 53,000 18,000 51%
6202 Tools - 12,000 2,008 21,000 9,000 75%
6203 Office Supplies - 10,000 65 10,000 - 0%
6204 Chemicals - 50,000 - 650,000 600,000 1200%
6301 Contract Services - 221,000 7,800 1,932,000 1,711,000 774%
6303 Printing & Publishing - 1,000 1,024 1,000 - 0%
6304 Legal Services - 6,000 1,213 5,000 (1,000)-17%
6305 Treatment Services - 7,900,000 8,144,925 3,700,000 (4,200,000)-53%
6307 Uniforms - 8,000 458 8,000 - 0%
6401 Utilities - 1,000 20 1,000 - 0%
6402 Telephone - 3,000 - 3,000 - 0%
6403 Electricity - 60,000 183,718 2,000,000 1,940,000 3233%
6404 Fuel - 15,000 - 16,000 1,000 7%
6406 Postage - - - 1,000 1,000 100%
6501 Membership & Dues - 4,000 - 12,000 8,000 200%
6502 Professional Development - 5,000 - 5,000 - 0%
6504 Meetings - 2,000 95 2,000 - 0%
6505 Employee Recognition - 1,000 - 1,000 - 0%
WATER
RECLAMATION TOTAL $ - $ 9,111,000 $ 8,799,782 $ 9,896,000 $ 785,000 9%
SIGNIFICANT CHANGES
IN PROGRAM BUDGET
• Transitioning treatment from the SBMWD to the
SNRC will result in increased Chemicals, Electricity,
and Contract Services budgets.
• Treatment Services budget moved from the Wastewater
Collection program.
• Onboarding new positions at the SNRC will result in budget
increases in Materials & Supplies, Tools, and Uniforms.
EAST VALLEY WATER DISTRICT | 211
[WATER RECLAMATION]
26 %
[$9,896,000]
Program
Budget Allocation
[PAGE LEFT BLANK]
Intentionally
FY 2023-24 BUDGET | 212
FACILITIES MAINTENANCE
Program Summaries Section
EAST VALLEY WATER DISTRICT | 213
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Facilities Maintenance ensures District
facilities meet standards for aesthetics,
functionality, and operation.
FY 2023-24 BUDGET | 214
• Governing Board
• General Administration
• Human Resources
• 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 1
Total Full-Time 2
PROGRAM STRUCTURE
GENERAL
MANAGER/CEO
OPERATIONS
MANAGER
FACILITIES AND
FLEET SUPERVISOR
FACILITIES MAINTENANCE
WORKER II
DIRECTOR OF
ENGINEERING &
OPERATIONS
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, water reclamation facility (SNRC), District-owned vacant properties, and
easements. The purpose of the program is to mitigate expenses by maintaining a complex facilities management
system to achieve Program Goals.
EAST VALLEY WATER DISTRICT | 215
FACILITIES MAINTENANCE
PROGRAM SUMMARIES
Goals Objectives
1 Complete Site
Improvements at the
Del Rosa Facility
1. Upgrade the facility’s exterior fence to enhance site security.
2. Remove former office trailers located at the site to provide more
facility space.
3. Renovate existing restrooms and/or install new portable restrooms.
4. Enhance site security by upgrading doors and locks on the existing
warehouse.
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 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.
Directly Supports the Five-Year Work Plan
FY 2023-24 BUDGET | 216
FY 2022-232022-23 ACCOMPLISHMENTS
Goal One
Completed Long-Term Site
Improvements at Plant 39
• Upgraded asphalt roads around storage tanks.
• Deferred construction of restroom for staff-use at Plant 39 due to
increased scope of improvements.
• Painted pump house exterior.
Goal Two
Continued Phased Upgrades and
Rehabilitation of District Facilities
• Deferred scheduled rehabilitation projects at various Plants due to
unanticipated expenditures for SNRC.
• Installed fire suppression system at SNRC.
Goal Three
Tracked Inventory at Del Rosa
Location
• Deferred inventory tracking at Del Rosa location due to pending
relocation of inventory storage.
Goal Four
Implemented New Facilities
Maintenance Tracking Software
• Worked with IT to select Tyler’s Energov Asset Management program.
• Transferred existing Facilities’ data into new software.
• Worked with IT to develop custom fields for service order requests.
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 2020-21 FY 2021-22 FY 2022-23
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 N/A 3 2
IV-C Complete security fencing upgrades at
Plant sites*1 N/A 1 1
I-A Identify and conduct energy efficiency
measures at Plant facilities*2 N/A 1 1
*New KPI metric beginning in FY 2021-22.
PROGRAM BUDGET DETAIL
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 197,409 $ 203,000 $ 158,185 $ 219,000 $ 16,000 8%
5103 Overtime 16,547 14,000 16,278 14,000 - 0%
5200 Benefits 98,922 110,000 132,906 123,000 13,000 12%
ADMINISTRATION OPERATING EXPENSES
6201 Materials & Supplies 58,242 40,000 112,525 40,000 - 0%
6202 Tools 1,805 2,000 2,214 2,000 - 0%
6301 Contract Services 280,548 823,500 887,778 772,000 (51,500)-6%
6306 Rents & Leases 17,994 20,000 20,277 20,000 - 0%
6307 Uniforms 8,521 11,000 8,833 11,000 - 0%
6311 Landscape Services 53,183 131,000 111,720 131,000 - 0%
6312 Janitorial Services 136,213 144,000 149,741 144,000 - 0%
6401 Utilities 49,936 47,000 47,644 37,000 (10,000)-21%
6402 Telephone 23,554 25,000 22,733 25,000 - 0%
6403 Electricity 168,028 290,000 198,679 290,000 - 0%
6403 Professional Development - 1,000 - 3,000 2,000 200%
SOURCE OF SUPPLY/WELLS OPERATING EXPENSES
6201 Materials & Supplies 540 3,000 1,085 3,000 - 0%
6301 Contract Services 27,776 34,000 20,287 34,000 - 0%
6311 Landscape Services 64,586 40,000 86,363 40,000 - 0%
6402 Telephone 701 1,000 916 1,000 - 0%
PUMPS AND BOOSTERS OPERATING EXPENSES
6201 Materials & Supplies 690 3,000 287 3,000 - 0%
6301 Contract Services 8,050 5,000 10,869 5,000 - 0%
6311 Landscape Services 25,395 35,000 35,216 35,000 - 0%
TREATMENT OPERATING EXPENSES
6201 Materials & Supplies 3,542 10,000 6,971 10,000 - 0%
6301 Contract Services 14,653 107,000 32,758 22,000 (85,000)-79%
6311 Landscape Services 26,655 27,000 41,036 27,000 - 0%
6312 Janitorial Services 1,350 2,000 1,800 2,000 - 0%
6401 Utilities 1,737 10,000 1,271 10,000 - 0%
6402 Telephone 20,432 - 25,465 - - 0%
FACILITIES
MAINTENANCE TOTAL $ 1,307,009 $ 2,138,500 $ 2,133,837 $ 2,023,000 $ (115,500)-5%
EAST VALLEY WATER DISTRICT | 217
[FACILITIES MAINTENANCE]
FY 2023-24 BUDGET | 218
SIGNIFICANT CHANGES
IN PROGRAM BUDGET
• Increased Contract Services budget due for
physical security costs.
• Labor rates and energy costs continue to rise.5%
[$2,023,000]
Program
Budget Allocation
FLEET MAINTENANCE
Program Summaries Section
EAST VALLEY WATER DISTRICT | 219
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Fleet Maintenance ensures the proper function of
vehicles and equipment used in the maintenance
of the water and wastewater system.
FY 2023-24 BUDGET | 220
• Governing Board
• General Administration
• Human Resources
• 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
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 or wastewater collection systems.
EAST VALLEY WATER DISTRICT | 221
FLEET MAINTENANCE
PROGRAM SUMMARIES
Goals Objectives
1 Assess Future
Operations of Fleet
Management
1. Train new Fleet Maintenance Coordinator.
2. Enhance service orders in the Fleet Maintenance Module within Tyler’s
Energov Asset Management (EAM) software.
3. Complete and distribute a Request for Proposal (RFP) for fuel delivery.
4. Continue installation of EV charging stations.
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
new Network Fleet devices.
3 Enhance the
Vendor-Managed
Fleet Maintenance
Program
1. Complete an RFP for mobile maintenance.
2. Provide a list of pre-approved safety repairs and replacements
for the RFP.
3. Contract with a vendor to provide detailing for specialized equipment.
Directly Supports the Five-Year Work Plan
FY 2023-24 BUDGET | 222
FY 2022-232022-23 ACCOMPLISHMENTS
Goal One
Assessed Future Operations of
Fleet Management
• Transferred Fleet Maintenance reporting to the new Facilities and
Fleet Supervisor.
• Created a new Fleet Maintenance Coordinator position upon
retirement of the Equipment Mechanic III.
• Fulfilled the Fleet Maintenance Coordinator position with assistance
from Human Resources.
Goal Two
Continued to Implement the Air
Quality Management Program
• Hired a consultant to manage all air quality regulations for AQMD and
the California Air Resources Board (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
• Deferred enhancement of the Vendor-Managed Fleet
Maintenance Program due to pending fulfilment of Fleet
Maintenance Coordinator position.
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 2020-21 FY 2021-22 FY 2022-23
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% 100%
IV-A Number of vehicle/equipment units replaced 4 4 2 2
PROGRAM BUDGET DETAIL
FY 2021-22
Actuals
FY 2022-23
Budget
FY 2022-23
Projected
FY 2023-24
Budget
Amount
Changed
%
Changed
PERSONNEL EXPENSES
5101 Regular Labor $ 90,728 $ 91,000 $ 70,298 $ 100,000 $ 9,000 10%
5103 Overtime 216 3,000 1,177 3,000 - 0%
5200 Benefits 48,558 55,000 21,555 41,000 (14,000)-25%
OPERATING EXPENSES
6201 Materials & Supplies 148,259 100,000 141,917 100,000 - 0%
6202 Tools 16,801 5,000 8,514 15,000 10,000 200%
6203 Office Supplies 27 1,000 70 5,000 4,000 400%
6301 Contract Services 248,704 260,100 260,481 250,000 (10,100)-4%
6307 Uniforms 1,571 1,000 1,327 1,000 - 0%
6402 Telephone 569 1,000 304 1,000 - 0%
6404 Fuel 175,812 229,900 245,700 240,000 10,100 4%
6501 Memberships & Dues - 3,000 - 3,000 - 0%
6502 Professional Development - 1,000 - 1,000 - 0%
FLEET MAINTENANCE TOTAL $ 731,245 $ 751,000 $ 751,343 $ 760,000 $ 9,000 1%
SIGNIFICANT CHANGES
IN PROGRAM BUDGET
• Created a new Fleet Maintenance Coordinator position
upon retirement of the Equipment Mechanic III.
EAST VALLEY WATER DISTRICT | 223
[FLEET MAINTENANCE]
2%
[$760,000]
Program
Budget Allocation
FY 2023-24 BUDGET | 224
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Intentionally
EAST VALLEY WATER DISTRICT | 225
CAPITAL BUDGETfy 2023-24
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The District's long-term planning efforts includes
consideration of the age, condition, and efficiency of
infrastructure used to deliver services to its customers.
FY 2023-24 BUDGET | 226
• Capital Budget Overview
• Capital Improvement Projects
• Infrastructure Accomplishments
Capital Budget Contents
EAST VALLEY WATER DISTRICT | 227
CAPITAL BUDGET
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 2023-24 Capital Budget contains $9,190,000 in total capital expenditures. Of this amount, $1,165,000
are Capital Outlay, which typically include requests to replace vehicles, computer and office equipment, and to contract
for infrastructure planning studies. The remaining proposed capital expenditures of $8,025,000 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.
As the District prepares to commence operations at the new SNRC water reclamation plant in the fall of 2023, 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 2023-24 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 cost of $5,000 or more. This threshold
is applied at the individual asset level.
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 the 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.
Capital Outlay (Routine) Capital Improvement Program
Computer Hardware / Software $ 155,000 Automated Metering Enhancements $ 150,000
Board Room Technology Upgrades 85,000 Storage Tank / Reservoir Design 800,000
Infrastructure & Emergency Planning
Studies 575,000 Plant 101 - Rehab Hydro System 1,500,000
Service Trucks 200,000 Water Main & Gate Valve Replacements 650,000
Website Redesign 150,000 Plant 134 Membrane Replacements 250,000
General Facilities Rehab / Relocation 375,000
SNRC Water Reclamation Plant 4,300,000
TOTAL CAPITAL OUTLAY $ 1,165,000 TOTAL CIP EXPENDITURES $8,025,000
FY 2023-24 BUDGET | 228
FY 2023-242023-24 CAPITAL OUTLAY
Capital Improvement Program (CIP) and Prioritization
The District’s Capital Improvement Program (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.
For FY 2023-24, 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 $8,025,000–
total project costs for the projects in process are approximately $31.1 million over the next five years. The names of the
projects funded, and the reasons for their prioritization this year include:
Water Wastewater Water
Reclamation Total
FUNDED BY OPERATING REVENUE
Boardroom Enhancements $ 60,000 $ 25,000 - $ 85,000
Emergency Plan Updates 100,000 50,000 - 150,000
Website Redesign 100,000 50,000 - 150,000
Hardware Replace (PCs, Laptops, phones) 35,000 -- 35,000
Firewall Standardization 50,000 35,000 35,000 120,000
Water Master Plan Update 300,000 - - 300,000
Salt Mitigation Feasibility Study -- 125,000 125,000
Pickup Trucks (4) 50,000 100,000 50,000 200,000
TOTAL CAPITAL OUTLAY $ 695,000 $ 260,000 $ 210,000 $ 1,165,000
Automated Metering Infrastructure (AMI) Enhancements
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 the 2023-
24 fiscal year 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.
EAST VALLEY WATER DISTRICT | 229
[CAPITAL BUDGET]
This project is to design and build additional water
storage in the District’s Canal Pressure Zone. If
approved, the District will complete 100% design
work on two 1.5 million gallon storage reservoirs
which were recommended in the District’s Water
System Master Plan. Proposed expenditures for FY
2023-24 are $300,000 to be paid from capacity
fees collected from developers. This project is a
priority as it will help ensure system capacity for new
development currently being built or planned.
This project will complete the changeout of
original treatment membrane cartridges installed
during the plant’s upgrade / expansion in 2010.
Four other trains of membrane cartridges had
previously been replaced, leaving just this one
to be addressed. Replacement of the fifth and
final train has been included in the FY 2023-24
budget at an estimated cost of $250,000. This
project has been deferred for three years and
has now become a priority in order to reinstate a
replacement schedule for the filter cartridges used
at this critical water supply facility.
Plant 134 Membrane
Replacement
Canal Zone
Storage Reservoir
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 rehabilitation in FY 2023-24 at
an estimated cost of $500,000 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 2023-24
at an estimated cost of $1,500,000. This project is a
priority as it solves a potential health and safety issue
for the residents it serves.
Plant 101
The District has scheduled the replacement of two
water main pipelines to be completed by District
maintenance crews. Estimated cost for these
projects is $350,000. The projects are designated
as priority as they 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 80 gate
valves that are frozen or broken and therefore
cannot be used for emergency shutdowns. This
project proposes to replace between 20 and 40
of the defective valves during FY 2023-24 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
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 2023-24 are $375,000 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
This major wastewater treatment project has
experienced delays due to supply chain disruptions
but is expected to be completed in fiscal year 2023-
24. Remaining costs to complete are approximately
$4,300,000 and are shown in the proposed capital
budget for FY 2023-24. This project is a priority due
to the period of availability for state funds and the lost
opportunity of storing recycled water.
SNRC Water
Recycling Facility
FY 2023-24 BUDGET | 230
The following Capital Improvement Projects section includes further detail for each of the projects that have been
proposed for funding in FY 2023-24.
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 (Plant 134) will allow the District to run the plant at higher
capacity and more fully utilize hydroelectric generation equipment and offset power costs.
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:
CAPITAL EXPENDITURE IMPACT OVERVIEW
CIP FIVE-YEAR PROGRAM SCHEDULE (FY 2024-282024-28)
Annual Impact on
Operations Nature of Impact
AMI Metering Upgrades $ (30,000) Reduced Staffing Commitments (Overtime)
SNRC Water Recycling Plant (5,080,000) New Revenue Sources (Tipping Fees, Power Sales, Recycled Water)
SNRC Water Recycling Plant (8,650,000) Decrease Contracted Treatment
SNRC Water Recycling Plant 1,200,000 Increased Labor Costs
SNRC Water Recycling Plant 1,010,000 Increased Materials & Consumables
SNRC Water Recycling Plant 2,450,000 Increased Contract Services
SNRC Water Recycling Plant 520,000 Increased Other Costs
TOTAL CIP EXPENDITURES $ (8,580,000)
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
WATER
Meters - AMI Enhancements $ 150,000 $ - $ 200,000 $ 200,000 $ 200,000 $ 750,000
Canal Zone Storage Reservoir 300,000 - 2,200,000 2,200,000 - 4,700,000
Plant 134 - Membranes
Replacement 250,000 - - 250,000 250,000 750,000
Plant 134 Turbidity Meters and
Clean-in-Place Equipment - 130,000 - - - 130,000
Tank/Reservoir
Rehabilitation 500,000 650,000 650,000 650,000 650,000 3,100,000
Plant 101 - Rehabilitation
Hydro System 1,500,000 - - - - 1,500,000
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
East Surface Water
Treatment Plant - - - - 1,000,000 1,000,000
Water Main Replacements -
Seismic Mitigation - 1,000,000 1,000,000 1,000,000 - 3,000,000
New Wells - 2,700,000 1,300,000 - - 4,000,000
Water Main Rehabilitation -
Elmwood Road 200,000 - - - - 200,000
Water Main Rehabilitation -
Valaria Court 150,000 - - - 3,600,000 3,750,000
Gate Valve
Replacement Program 300,000 300,000 - - - 600,000
Facility Relocations 100,000 100,000 100,000 100,000 100,000 500,000
Facility Relocation - Baseline
Bridge Water Main - 730,000 - - - 730,000
Facility Rehabilitations 275,000 75,000 75,000 75,000 75,000 575,000
Transmission Main -
Plant 134 to Upper Zone - - - 500,000 - 500,000
WATER SUBTOTAL $ 3,725,000 $ 5,685,000 $ 5,525,000 $ 4,975,000 $ 5,875,000 $ 25,785,000
WASTEWATER
Wastewater Main Rehab $ - $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 400,000
SNRC - Inspections, Project
Mgt, and Compliance Mgt 300,000 - - - - 300,000
SNRC - Construction 4,000,000 - - - - 4,000,000
WASTEWATER SUBTOTAL $ 4,300,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 4,700,000
RECLAMATION
Replace Diffusers and
UV Lamps $ - $ - $ - $ - $ 650,000 650,000
RECLAMATION SUBTOTAL $ - $ - $ - $ - $ 650,000 $ 650,000
TOTAL $ 8,025,000 $ 5,785,000 $ 5,625,000 $ 5,075,000 $ 6,625,000 $ 31,135,000
EAST VALLEY WATER DISTRICT | 231
[CAPITAL BUDGET]
FY 2023-24 BUDGET | 232
CIP FIVE-YEAR FUNDING SCHEDULE (FY 2024-28) 2024-28)
CIP FY 2023-24 2023-24 PROPOSED FUNDING
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
Water Operating Revenue $ 3,425,000 $ 5,185,000 $ 5,025,000 $ 4,975,000 $ 5,875,000 $ 24,485,000
Water Replacement Reserve - - - - - -
Water Capacity Fees 300,000 500,000 500,000 - - 1,300,000
New SRF Funding - - - - - -
Wastewater Operating
Revenue 300,000 100,000 100,000 100,000 100,000 700,000
Reclamation Replacement
Reserve - - - - 650,000 650,000
Existing Grants / Loans 4,000,000 - - - - 4,000,000
TOTAL $ 8,025,000 $ 5,785,000 $ 5,625,000 $ 5,075,000 $ 6,625,000 $ 31,135,000
Water Fund
Operating
Revenue
Wastewater
Fund Operating
Revenue
Grants/ Loans
Other Fund Project Total
WATER
Meters - AMI Enhancements $ 150,000 $ - $ - $ 150,000
Canal Zone Storage Reservoir - - 300,000 300,000
Plant 134 - Membranes Replacement 250,000 - - 250,000
Tank/Reservoir Rehabilitation 500,000 - - 500,000
Plant 101 - Rehabilitation Hydro System 1,500,000 - - 1,500,000
Water Main Rehabilitation - Elmwood Rd 200,000 - - 200,000
Water Main Rehabilitation - Valaria Ct 150,000 - - 150,000
Gate Valve Replacement Program 300,000 - - 300,000
Facility Relocations 100,000 - - 100,000
Facility Rehabilitations 275,000 - - 275,000
WATER SUBTOTAL $ 3,425,000 $ - $ 300,000 $ 3,725,000
WASTEWATER
SNRC - Inspections, Project Mgt, Compliance Mgt $ - $ 300,000 $ - $ 300,000
SNRC - Construction - - 4,000,000 4,000,000
WASTEWATER SUBTOTAL $ - $ 300,000 $ 4,000,000 $ 4,300,000
TOTAL $ 3,425,000 $ 300,000 $ 4,300,000 $ 8,025,000
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Capital Budget Section
EAST VALLEY WATER DISTRICT | 233
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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 2023-24 BUDGET | 234
• Meter Replacement Program
• Canal Zone Storage Reservoir
• Plant 134 Treatment Membrane Replacement
• Tank/Reservoir Rehabilitation
• Plant 101 Hydro Tank Rehabilitation
• Water Main Replacement - Elmwood Road
• Water Main Replacement - Valaria Court
• Facility Relocations
• Facility Rehabilitations
• Gate Valve Replacement Program
• Sterling Natural Resource Center
Capital Improvement Projects
EAST VALLEY WATER DISTRICT | 235
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Intentionally
FY 2023-24 BUDGET | 236
Project Description
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 data collector tower in the central
west area of the District. In addition, staff proposes to install AMI
meters on all commercial fire services and to replace a mobile meter
data collector used by staff to collect reads when communications
from fixed data collectors is unreliable. $150,000 has been included in
the capital budget for this work in FY 2023-24.
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
CAPITAL IMPROVEMENT PROGRAM
Start Date:
July 2023
Estimated Completion:
June 2024
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
EAST VALLEY WATER DISTRICT | 237
[METER REPLACEMENT PROGRAM]
PROJECT COST
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
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 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
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
Help identify
water leaks and
losses sooner.
Provide customers
with reliable meter
information.
Enhance operations by
digitizing consumption
information.
FY 2023-24 BUDGET | 238
Project Description
The purpose of this project is to design and build additional water
storage in the District’s Canal Pressure Zone. The District purchased
a property for this purpose in 2019 that is anticipated to accommodate
two 1.5-million-gallon storage reservoirs. The District’s Water System
Master Plan determined that the Canal Zone does not have excess
capacity for new development to buy into. Consequently, one
1.5-million-gallon storage reservoir will be constructed to provide the
0.8 million gallons of additional storage that is expected to be needed
in the Canal Zone in the next 5 years, and 0.7 million gallons of storage
for development beyond 5 years. $300,000 has been included in the
FY 2023-24 budget for completion of the design of this reservoir site.
OPERATING BUDGET IMPACT
Additional Staff Salaries
N/A
Debt Service
N/A
Maintenance/Utilities
The annualized maintenance cost is estimated to be $60,000.
CANAL ZONE STORAGE RESERVOIR
CAPITAL IMPROVEMENT PROGRAM
Start Date:
July 2022
Estimated Completion:
June 2025
Project Type:
Water
Location:
Applewood Street, Highland
Project Manager:
Engineering
Total Project Cost:
$4,600,000 to be Funded
by Development Over Time
Prior Years Budget:
$455,000
Capital Requests:
Ongoing Project
EAST VALLEY WATER DISTRICT | 239
[CANAL ZONE STORAGE RESERVOIR]
PROJECT COST
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
ESTIMATED COST ITEMIZATION
Planning and Design $ 300,000 $ - $ - $ - $ - $ 300,000
Land and Land Preparation - - - - - -
Construction (Contract) - - 2,000,000 2,000,000 - 4,000,000
Project Mgmt/Inspection - - 200,000 200,000 - 400,000
Equipment/Furnishings - - - - - -
Materials - - - - - -
District Labor - - - - - -
Other (Legal) - - - - - -
ANNUAL TOTAL $ 300,000 $ - $ 2,200,000 $ 2,200,000 $ - $ 4,700,000
PROJECT FUNDING
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
FINANCING SOURCES
Operating Revenue $ - $ - $ 1,700,000 $ 1,700,000 $ - $ 3,400,000
Replacement Reserve - - - - - -
Grants/Loans - - - - - -
Bond Proceeds - - - - - -
Development Fees 300,000 - 500,000 500,000 - 1,300,000
Other - - - - - -
ANNUAL TOTAL $ 300,000 $ - $2,200,000 $ 2,200,000 $ - $ 4,700,000
Benefits to the Community
Enhance plant
operations to maintain
a reliable service.
Provide
additional water
storage capacity.
Allow the District to
continue to meet the
community’s water needs.
FY 2023-24 BUDGET | 240
Project Description
Plant 134, the District’s surface water treatment plant, has five
water filtration trains that consist of 180 membrane filters each. The
manufacturer of the filters recommends replacing the filter every 5 to 7
years. In FY 2017-18 staff replaced one full train with new filters which
drastically reduced staff time in making membrane repairs. Three more
full trains of membranes were replaced in each of the three succeeding
years. Replacement of the membranes in the fifth and final train has
been deferred due to funding requirements by other key projects, and
the staff’s increased ability to make effective repairs to the existing
membranes. In FY 2023-24, staff plans to complete the replacement
of filters in the fifth train and get the District back on a replacement
schedule as the filters in train one have now been in service for five
years. $250,000 has been included in the FY 2023-24 budget for filter
replacements.
OPERATING BUDGET IMPACT
Additional Staff Salaries
N/A
Debt Service
N/A
Maintenance/Utilities
N/A
PLANT 134134 TREATMENT MEMBRANE REPLACEMENT
CAPITAL IMPROVEMENT PROGRAM
Start Date:
October 2023
Estimated Completion:
February 2024
Project Type:
Water
Location:
4588 Highland Avenue,
Highland
Project Manager:
Water Treatment
Total Project Cost:
$1,243,578
Prior Years Budget:
$993,000
Capital Requests:
Ongoing Project
EAST VALLEY WATER DISTRICT | 241
[PLANT 134 TREATMENT MEMBRANE REPLACEMENT, PHASE 5]
PROJECT COST
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
ESTIMATED COST ITEMIZATION
Planning and Design $ - $ - $ - $ - $ - $ -
Land and Land Preparation - - - - - -
Construction (Contract) - - - - - -
Project Mgmt/Inspection - - - - - -
Equipment/Furnishings - - - - - -
Materials 250,000 - - 250,000 250,000 750,000
District Labor - - - - - -
Other (Legal) - - - - - -
ANNUAL TOTAL $ 250,000 $ - $ - $ 250,000 $ 250,000 $ 750,000
PROJECT FUNDING
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
FINANCING SOURCES
Operating Revenue $ 250,000 $ - $ - $ 250,000 $ 250,000 $ 750,000
Replacement Reserve - - - - - -
Grants/Loans - - - - - -
Bond Proceeds - - - - - -
Development Fees - - - - - -
Other - - - - - -
ANNUAL TOTAL $ 250,000 $ - $ - $ 250,000 $ 250,000 $ 750,000
Benefits to the Community
Maintain the quality and
safety of water provided
to the community.
Allows the District to continue
to meet local, State, and Federal
water quality requirements.
Enhance the
surface water
treatment process.
FY 2023-24 BUDGET | 242
Project Description
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 distributions of water to sections
of the affected service area.
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 FY 2023-24 the District will contract for the rehabilitation
of the tank at Plant 56; a 500,000 gallon, welded steel storage tank
serving the District’s Foothill zone. The inspection program had noted
moderate corrosion to the tank’s ceiling rafters and flanges, and
the interior and exterior coatings are now 25 years old, typically the
maximum life expectancy for tank coatings. The estimated cost for
making any structural repairs and recoating the tank’s interior and
exterior surfaces is $500,000.
OPERATING BUDGET IMPACT
Additional Staff Salaries
N/A
Debt Service
N/A
Maintenance/Utilities
N/A
TANK / RESERVOIR REHABILITATION
CAPITAL IMPROVEMENT PROGRAM
Start Date:
October 2023
Estimated Completion:
June 2024
Project Type:
Water
Location:
End of Shasta Drive near
Hemlock Drive, Highland
Project Manager:
Engineering
Total Project Cost:
$500,000
Prior Years Budget:
Costs from Previous Tank
Rehabilitations Do Not
Accumulate
Capital Requests:
New Project
EAST VALLEY WATER DISTRICT | 243
[TANK/RESERVOIR REHABILITATION]
PROJECT COST
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
ESTIMATED COST ITEMIZATION
Planning and Design $ 50,000 $ 65,000 $ 65,000 $ 65,000 $ 65,000 $ 310,000
Land and Land Preparation - - - - - -
Construction (Contract) 450,000 585,000 585,000 585,000 585,000 2,790,000
Project Mgmt/Inspection - - - - - -
Equipment/Furnishings - - - - - -
Materials - - - - - -
District Labor - - - - - -
Other (Legal) - - - - - -
ANNUAL TOTAL $ 500,000 $ 650,000 $ 650,000 $ 650,000 $ 650,000 $ 3,100,000
PROJECT FUNDING
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
FINANCING SOURCES
Operating Revenue $ 500,000 $ 650,000 $ 650,000 $ 650,000 $ 650,000 $ 3,100,000
Replacement Reserve - - - - - -
Grants/Loans - - - - - -
Bond Proceeds - - - - - -
Development Fees - - - - - -
Other - - - - - -
ANNUAL TOTAL $ 500,000 $ 650,000 $ 650,000 $ 650,000 $ 650,000 $ 3,100,000
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 2023-24 BUDGET | 244
Project Description
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. With the generator now
in place, and design for the tank and boosters complete, replacement
of the tank and boosters can be scheduled. Staff proposes to bid and
complete these replacements during FY 2023-24. An estimated cost of
$1,500,000 has been included in the FY 2023-24 budget for this project.
OPERATING BUDGET IMPACT
Additional Staff Salaries
N/A
Debt Service
N/A
Maintenance/Utilities
N/A
PLANT 101101 HYDRO TANK REHABILITATION
CAPITAL IMPROVEMENT PROGRAM
Start Date:
July 2021
Estimated Completion:
June 2024
Project Type:
Water
Location:
3045 N. Mountain Top
Drive, Highland
Project Manager:
Engineering
Total Project Cost:
$1,896,000
Prior Years Budget:
$396,000
Capital Requests:
New Project
EAST VALLEY WATER DISTRICT | 245
[PLANT 101 HYDRO TANK REHABILITATION]
PROJECT COST
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
ESTIMATED COST ITEMIZATION
Planning and Design $ - $ - $ - $ - $ - $ -
Land and Land Preparation - - - - - -
Construction (Contract) 1,500,000 - - - - 1,500,000
Project Mgmt/Inspection - - - - - -
Equipment/Furnishings - - - - - -
Materials - - - - - -
District Labor - - - - - -
Other (Legal) - - - - - -
ANNUAL TOTAL $ 1,500,000 $ - $ - $ - $ - $ 1,500,000
PROJECT FUNDING
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
FINANCING SOURCES
Operating Revenue $ 1,500,000 $ - $ - $ - $ - $ 1,500,000
Replacement Reserve - - - - - -
Grants/Loans - - - - - -
Bond Proceeds - - - - - -
Development Fees - - - - - -
Other - - - - - -
ANNUAL TOTAL $ 1,500,000 $ - $ - $ - $ - $ 1,500,000
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 2023-24 BUDGET | 246
Project Description
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.
OPERATING BUDGET IMPACT
Additional Staff Salaries
No additional salaries are required to install or maintain this new main.
Debt Service
N/A
Maintenance/Utilities
N/A
WATER MAIN REPLACEMENT – ELMWOOD ROAD
CAPITAL IMPROVEMENT PROGRAM
Start Date:
September 2023
Estimated Completion:
June 2024
Project Type:
Water
Location:
North of Lynwood Drive and
West of Dogwood Street,
Highland
Project Manager:
Operations
Total Project Cost:
$200,000
Prior Years Budget:
N/A
Capital Requests:
New Project
EAST VALLEY WATER DISTRICT | 247
[WATER MAIN REPLACEMENT – ELMWOOD ROAD]
PROJECT COST
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
ESTIMATED COST ITEMIZATION
Planning and Design $ 20,000 $ - $ - $ - $ - $ 20,000
Land and Land Preparation - - - - - -
Construction (Contract) - - - - - -
Project Mgmt/Inspection - - - - - -
Equipment/Furnishings - - - - - -
Materials 60,000 - - - - 60,000
District Labor 120,000 - - - - 120,000
Other (Legal) - - - - - -
ANNUAL TOTAL $ 200,000 $ - $ - $ - $ - $ 200,000
PROJECT FUNDING
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
FINANCING SOURCES
Operating Revenue $ 200,000 $ - $ - $ - $ - $ 200,000
Replacement Reserve - - - - - -
Grants/Loans - - - - - -
Bond Proceeds - - - - - -
Development Fees - - - - - -
Other - - - - - -
ANNUAL TOTAL $ 200,000 $ - $ - $ - $ - $ 200,000
Benefits to the Community
Protects community
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 2023-24 BUDGET | 248
Project Description
This project will replace 224 feet of undersized 3-inch polyvinyl chloride
(PVC) water main in Valaria Court, a six home cul-de-sac extending east
off of Valaria Drive. Replacing the existing main with new 6” ductile iron
pipe will enhance fire flow capacity and allow the District to install a fire
hydrant at the pipes terminus.
Work will be performed in-house by District water maintenance crews
and will take approximately three weeks to complete.
OPERATING BUDGET IMPACT
Additional Staff Salaries
No additional salaries are required to install or maintain this new main.
Debt Service
N/A
Maintenance/Utilities
N/A
WATER MAIN REPLACEMENT – VALARIA COURT
CAPITAL IMPROVEMENT PROGRAM
Start Date:
September 2023
Estimated Completion:
June 2024
Project Type:
Water
Location:
East of Valaria Drive,
Between Avalon and Holly
Vista Drives, Highland
Project Manager:
Operations
Total Project Cost:
$150,000
Prior Years Budget:
N/A
Capital Requests:
New Project
EAST VALLEY WATER DISTRICT | 249
[WATER MAIN REPLACEMENT – VALARIA COURT]
PROJECT COST
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
ESTIMATED COST ITEMIZATION
Planning and Design $ 15,000 $ - $ - $ - $ 360,000 $ 375,000
Land and Land Preparation - - - - - -
Construction (Contract) - - - - - -
Project Mgmt/Inspection - - - - - -
Equipment/Furnishings - - - - - -
Materials 45,000 - - - 1,080,000 1,125,000
District Labor 90,000 - - - 2,160,000 2,250,000
Other (Legal) - - - - - -
ANNUAL TOTAL $ 150,000 $ - $ - $ - $ 3,600,000 $ 3,750,000
PROJECT FUNDING
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
FINANCING SOURCES
Operating Revenue $ 150,000 $ - $ - $ - $ 3,600,000 $ 3,750,000
Replacement Reserve - - - - - -
Grants/Loans - - - - - -
Bond Proceeds - - - - - -
Development Fees - - - - - -
Other - - - - - -
ANNUAL TOTAL $ 150,000 $ - $ - $ - $3,600,000 $ 3,750,000
Benefits to the Community
Protects community
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 2023-24 BUDGET | 250
Project Description
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.
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
CAPITAL IMPROVEMENT PROGRAM
Start Date:
July 2023
Estimated Completion:
June 2025
Project Type:
Water
Location:
Districtwide
Project Manager:
Operations
Total Project Cost:
$300,000 Per Year for
Two Years
Prior Years Budget:
N/A
Capital Requests:
New Project
EAST VALLEY WATER DISTRICT | 251
[GATE VALVE REPLACEMENT PROGRAM]
PROJECT COST
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
ESTIMATED COST ITEMIZATION
Planning and Design $ - $ - $ - $ - $ - $ -
Land and Land Preparation - - - - - -
Construction (Contract) 185,000 185,000 - - - 370,000
Project Mgmt/Inspection - - - - - -
Equipment/Furnishings - - - - - -
Materials 25,000 25,000 - - - 50,000
District Labor 90,000 90,000 - - - 180,000
Other (Legal) - - - - - -
ANNUAL TOTAL $ 300,000 $ 300,000 $ - $ - $ - $ 600,000
PROJECT FUNDING
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
FINANCING SOURCES
Operating Revenue $ 300,000 $ 300,000 $ - $ - $ - $ 600,000
Replacement Reserve - - - - - -
Grants/Loans - - - - - -
Bond Proceeds - - - - - -
Development Fees - - - - - -
Other - - - - - -
ANNUAL TOTAL $ 300,000 $ 300,000 $ - $ - $ - $ 600,000
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 2023-24 BUDGET | 252
Project Description
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 obliged to
relocate its facilities. This project budget serves to fund relocation costs
as they arise.
OPERATING BUDGET IMPACT
Additional Staff Salaries
N/A
Debt Service
N/A
Maintenance/Utilities
N/A
FACILITY RELOCATIONS
CAPITAL IMPROVEMENT PROGRAM
Start Date:
July 2023
Estimated Completion:
June 2024
Project Type:
Water
Location:
Districtwide
Project Manager:
Engineering
Total Project Cost:
$100,000 for FY 2023-24
Budgeted Annually
Prior Years Budget:
$100,000
Capital Requests:
Annual Budget Request
EAST VALLEY WATER DISTRICT | 253
[FACILITY RELOCATIONS]
PROJECT COST
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
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 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
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 2023-24 BUDGET | 254
Project Description
This project involves scheduled capital improvements to District
facilities that can be performed within a single fiscal year. Improvements
planned for FY 2023-24 include upgrade to wrought iron security
fencing at District Plants 28 and 33 and at the District Headquarters.
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
CAPITAL IMPROVEMENT PROGRAM
Start Date:
July 2023
Estimated Completion:
June 2024
Project Type:
Water
Location:
Districtwide
Project Manager:
Operations
Total Project Cost:
$275,000 for FY 2023-24
Budgeted Annually
Prior Years Budget:
$275,000 for FY 2022-23
Capital Requests:
Annual Budget Request
EAST VALLEY WATER DISTRICT | 255
[FACILITY REHABILITATIONS]
PROJECT COST
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
ESTIMATED COST ITEMIZATION
Planning and Design $ 15,000 $ - $ - $ - $ - $ 15,000
Land and Land Preparation - - - - - -
Construction (Contract) 260,000 75,000 75,000 75,000 75,000 560,000
Project Mgmt/Inspection - - - - - -
Equipment/Furnishings - - - - - -
Materials - - - - - -
District Labor - - - - - -
Other (Legal) - - - - - -
ANNUAL TOTAL $ 275,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 575,000
PROJECT FUNDING
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
FINANCING SOURCES
Operating Revenue $ 275,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 575,000
Replacement Reserve - - - - - -
Grants/Loans - - - - - -
Bond Proceeds - - - - - -
Development Fees - - - - - -
Other - - - - - -
ANNUAL TOTAL $ 275,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 575,000
Benefits to the Community
Enhance the
security of
water facilities.
Prevent
unauthorized
access.
Extend the
useful life of
water facilities.
FY 2023-24 BUDGET | 256
Project Description
The District is building a wastewater reclamation facility known as the
Sterling Natural Resource Center. The plant will have the capability to treat
all wastewater flows currently generated by District customers. The facility
will allow the District to treat wastewater to a point where it can be recharged
back into the groundwater basin and reused for domestic purposes. Plant
construction is being funded by grants and low interest State Revolving
Fund (SRF) loans from the State Water Resources Control Board.
Through June 2023, the District has issued contracts totaling $238.2
million and incurred approximately $226.3 million of those contract costs.
The District expects to transition all wastewater flows generated by District
customers to the SNRC by December of 2023. SRF loan proceeds for $1.3
million will be used to complete construction on the reclamation plant, while
approximately $8 million in costs remaining on a recycled water pipeline
and recharge basins will be paid under a reimbursement agreement with
Valley District. Approximately $300,000 in engineering, permitting, and
labor compliance costs will be paid by District operating revenue.
OPERATING BUDGET IMPACT
Additional Staff Salaries
$1,800,000
Debt Service
$6,820,000 annually on 1.8% interest, State Revolving Fund Loan
Maintenance/Utilities
$3,220,000 (estimated for contract services and supplies, Contracted
wastewater treatment currently paid to a third party agency of $8,600,000
annually, would be eliminated.
Anaerobic digesters at the plant will convert wastewater solids, along with
high grade food waste offloaded by waste haulers, to produce enough
energy to power SNRC operation.
STERLING NATURAL RESOURCE CENTER (SNRC)
CAPITAL IMPROVEMENT PROGRAM
Start Date:
January 2014
Estimated Completion:
December 2023
Project Type:
Water
Location:
25318 and 25376 5th Street,
Highland
Project Manager:
Engineering
Total Project Cost:
$238,198,000
Prior Years Budget:
$198,425,000
Capital Requests:
Previously
Programmed Project
EAST VALLEY WATER DISTRICT | 257
[STERLING NATURAL RESOURCE CENTER]
PROJECT COST
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
ESTIMATED COST ITEMIZATION
Planning and Design $ - $ - $ - $ - - $ -
Land and Land Preparation - - - - - -
Construction (Contract) 4,300,000 - - - - 4,300,000
Project Mgmt/Inspection - - - - - -
Equipment/Furnishings - - - - - -
Materials - - - - - -
District Labor - - - - - -
Other (Legal) - - - - - -
ANNUAL TOTAL $ 4,300,000 $ - $ - $ - $ - $ 4,300,000
PROJECT FUNDING
Year 1
FY 2023-24
Year 2
FY 2024-25
Year 3
FY 2025-26
Year 4
FY 2026-27
Year 5
FY 2027-28
5-Year
Project Total
FINANCING SOURCES
Operating Revenue $ 300,000 $ - $ - $ - $ - $ 300,000
Replacement Reserve - - - - - -
Grants/Loans 4,000,000 - - - - 4,000,000
Bond Proceeds - - - - - -
Development Fees - - - - - -
Other - - - - - -
ANNUAL TOTAL $4,300,000 $ - $ - $ - $ - $ 4,300,000
Benefits to the Community
Water treated at the
SNRC will recharge
the local Bunker Hill
Groundwater Basin.
Picnic area, demonstration
garden, walking paths,
workshop space, and special
events area.
Hands-on training and career
experiences in wastewater
treatment available to students
and residents.
[PAGE LEFT BLANK]
Intentionally
FY 2023-24 BUDGET | 258
EAST VALLEY WATER DISTRICT | 259
INFRASTRUCTURE
ACCOMPLISHMENTS
Capital Budget Section
IN
F
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A
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The budget reflects the District's
commitment to allocating resources to
meet the needs of its stakeholders.
FY 2023-24 BUDGET | 260
EAST VALLEY WATER DISTRICT | 261
[CAPITAL BUDGET]
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 2022-23 that focused on system improvements for both water and wastewater systems.
Plant 134 Granular
Activated Carbon (GAC)
Process Improvements
Project Budget: $3,846,000
Actual Cost: $3,736,000
Completed: April 2023
Plant 108 Storage
Tank Rehabilitation
Project Budget: $1,271,000
Actual Cost: $1,134,115
Completed: June 2023
Pleasant Hill Drive
Water Main Replacement
Project Budget: $200,000
Actual Cost: $196,605
Completed: October 2022
[PAGE LEFT BLANK]
Intentionally
FY 2023-24 BUDGET | 262
EAST VALLEY WATER DISTRICT | 263
GLOSSARYfy 2023-24
G
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The budget is formally reviewed each quarter, allowing
for an opportunity to take formal budget adjustments to
the Governing Board for consideration.
FY 2023-24 BUDGET | 264
• Definitions
• Acronyms
• Chart of Accounts
Glossary Contents
EAST VALLEY WATER DISTRICT | 265
GLOSSARY
Definitions
Technical terms found in the budget document.
A
• Acre Foot: A water measurement equal to 325,851
gallons. - pg. 60
• Advanced Metering Infrastructure: The
technology of collecting meter reads via a
network. - pg. 10
• 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. 215
• American Water Works Association: Established
in 1881 and is the largest nonprofit, scientific, and
educational association dedicated to managing
and treating water. - pg. 35
• 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. 154
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. 49
• 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. 20
• 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. 49
• Cityworks: This platform is designed to help local
governments and utilities manage public assets
and their associated data, work activities, and
business processes. - pg. 160
• Closed Circuit TV: The use of video cameras to
transmit a signal to a limited set of monitors. - pg.
209
• 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. 45
• 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. 40
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. 45
FY 2023-24 BUDGET | 266
F
• Fees: Charges for service that are based upon the
cost of providing the service. - pg. 37
• 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. 57
• 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. 68
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. 53
• 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. 45
• 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. 45
• Government Finance Officers Association:
Represents public finance officials throughout the
United States and Canada. - pg. 9
• 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. 8
• Groundwater: Water that occurs below the surface
of Earth. - pg. 8
H
• Hundred Cubic Feet: Water billing measurement
equal to 748 gallons. - pg. 51
K
• Key Performance Indicator: Monitors progress
towards meeting program objectives. - pg. 6
L
• Laserfiche: A digital content management
software. - pg. 156
• 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. 64
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. 17
EAST VALLEY WATER DISTRICT | 267
[GLOSSARY]
P
• Pension Expense: Budgeted based on employer
contribution rates assigned by the California Public
Employees’ Retirement System. For financial
statement reportion, pension expense is recorded
based on the change to the net pension liability
in accordance with Governmental Accounting
Standards Board Statement No. 68. - pg. 45
• 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. 45
• Purchased Water: Imported water purchased from
the California State Water Project. - pg. 59
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. 5
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. 38
• Single-Family Residential: A stand-alone residential
building. - pg. 51
• Sterling Natural Resource Center: The District is
planning and constructing a water recycling center
called the Sterling Natural Resource Center. - pg. 3
• Supervisory Control and Data Acquisition:
Generally refers to an industrial computer system
that monitors and controls a process. - pg. 26
• Surface Water: Found in large bodies like the
oceans or lakes or which flows overland in streams.
- pg. 59
T
• Tyler Accounting System: The District’s enterprise
resource planning software that integrates across
all business processes and activities. - pg. 149
W
• Wastewater Collection Sytem 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. 7
• 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. 7
FY 2023-24 BUDGET | 268
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EAST VALLEY WATER DISTRICT | 269
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The District is committed to sound stewardship and
transparent operations, through its presentation of
the capital and operating budget to the community.
FY 2023-24 BUDGET | 270
EAST VALLEY WATER DISTRICT | 271
ACRONYMS
Technical acronyms found in the budget document.
A
• ACWA: Association of California Water Agencies -
pg. 140
• AF: Acre Foot - pg. 60
• AMI: Advanced Metering Infrastructure - pg. 10
• AQMD or SCAQMD: Air Quality Management
District or South Coast Air Quality Management
District - pg. 215
• AWWA: American Water Works Association
- pg. 35
B
• BAR: Bureau of Automotive Repair - pg. 227
C
• CalFire: California Department of Forestry and Fire
and Protection - pg. 22
• CalPERS: California Public Employees’ Retirement
System - pg. 49
• CARB: California Air Resources Board - pg. 227
• CCTV: Closed-Circuit Television - pg. 209
• CEO: Chief Executive Officer - pg. i
• CFD: Community Facilities District - pg. 51
• CGC: California Government Code - pg. 37
• CHEF: Community Heritage Education Foundation
- pg. 123
• CIP: Capital Improvement Program - pg. 7
• CISCO: Computer Information System Company
- pg. 156
• CMUA: California Municipal Utilities Assocation -
pg. 136
• COLA: Cost of Living Adjustment - pg. 57
• CSDA: California Special Districts Association
- pg. 20
• CSMFO: California Society of Municipal
Officers - pg. 9
• CWEA: California Water Environment Association
- pg. 206
D
• DNS: Domain Name System - pg. 156
• DWR: Department of Water Resources - pg. 230
E
• EAM: Enterprise Asset Management - pg. 223
• EOC: Emergency Operations Center - pg. 156
• EPA: Environmental Protection Agency - pg. 32
• ERP: Enterprise Resource Planning - pg. 150
F
• FY: Fiscal Year - pg. i
• FOG: Fats, Oils, and Grease - pg. 26
G
• GAC: Granular Activated Carbon - pg. 8
• GASB: Governmental Accounting Standards Board
- pg. 45
• GAAP: Generally Accepted Accounting Principles
- pg. 45
• GC: San Bernardino Basin Area Groundwater
Council - pg. 17
• GIS: Geographic Information System - pg. 78
• GFOA: The Government Finance Officers
Association - pg. 9
FY 2023-24 BUDGET | 272
H
• HCF: Hundred Cubic Feet - pg. 51
• HVAC: Heating, Ventilation, and Air Conditioning
- pg. 217
K
• KPI: Key Performance Indicator - pg. 6
L
• LAFCO: Local Agency Formation Commission - pg.
17
• LAIF: Local Agency Investment Fund - pg. 64
• LRIP: Local Resource Investment Program - pg. 55
M
• MG: Million Gallon - pg. 17
• MGD: Million Gallons Per Day - pg. 26
• MOU: Memorandum of Understanding - pg. 57
N
• NFWC: North Fork Water Company - pg. 17
• NPDES: National Pollutant Discharge Elimination
System - pg. 212
O
• OPEB: Other Post Employment Benefits - pg. 45
• OT: Overtime - pg. 57
P
• PAFR: Popular Annual Financial Report - pg. 150
• PRSA: Public Relations Society of America - pg. 136
• PRV: Pressure Regulating Valve - pg. 26
• PVC: Polyvinyl Chloride - pg. 250
R
• RFP: Request for Proposal - pg. 223
• RUSD: Redlands Unified School District - pg. 18
S
• SAR: Santa Ana River - pg. 16
• SBCUSD: San Bernardino City Unified School
District - pg. 18
• SBMWD: City of San Bernardino Municipal Water
Department - pg. 17
• SCADA: Supervisory Control and Data
Acquisition - pg. 26
• SCE: Southern California Edison - pg. 51
• SFR: Single-Family Residential - pg. 51
• SNRC: Sterling Natural Resource Center - pg. 3
• SRF: State Revolving Fund - pg. 7
• SSMP: Sewer System Management Plan - pg. 206
• SWP: State Water Project - pg. 16
• SWRCB: State Water Resources Control
Board - pg. 63
T
• TSS: Total Suspended Solids - pg. 212
• Tyler Accounting System: - pg. 149
U
• UAL: Unfunded Actuarial Liability - pg. 149
• UCMR5: Unregulated Contaminant Monitoring
Rule 5 - pg. 193
• U.S. EPA: United States Environmental Protection
Agency - pg. 31
EAST VALLEY WATER DISTRICT | 273
CHART OF ACCOUNTS
Glossary Section
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The District actively enhances communication
methods to reach a variety of stakeholders.
FY 2023-24 BUDGET | 274
EAST VALLEY WATER DISTRICT | 275
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 Assessment: 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
• 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
FY 2023-24 BUDGET | 276
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District Headquarters
31111 Greenspot Road
Highland, California 92346
Sterling Natural Resource Center
25318 5th Street
Highland, California 92410
eastvalley.org
District Board Meetings
Second and Fourth Wednesday of Each Month at 5:30pm
District Headquarters Board Room
31111 Greenspot Road
Highland, CA 92346
Agenda Item
#4
August 22, 20231
Meeting Date: August 22, 2023
Agenda Item #4
Discussion Item
Regular Meeting
TO: Commission Members
FROM: Public Affairs/Conservation Manager
SUBJECT: Strategic Plan Overview
RECOMMENDATION
This agenda item is for informational purposes only, no action is required.
BACKGROUND / ANALYSIS
East Valley Water District (District) has started preparing for the next chapter by
embarking on the development of a Strategic Plan. Recognizing the changing landscape
of water management, community needs, and the completion of the Sterling Natural
Resource Center, the Strategic Plan aims to align the District’s goals, resources, and
actions to best serve the Ratepayers. By developing the Strategic Plan, the District
seeks to ensure long-term sustainability, operational efficiency, and continued reliable
service.
Central to the success of the strategic planning process is the feedback of the
Community Advisory Commission. The District recognizes the valuable insights
community members can provide when it comes to shaping the future programs and
initiatives. WSC (the District’s selected strategic partner) is supporting the development
of this plan and will engage the Community Advisory Committee for input on updated
mission, vision, and values. The feedback gathered will then be provided to the Board
of Directors and Administrative staff throughout the development of the Strategic Plan.
As the Strategic Plan is developed, with the feedback received from the Community
Advisory Commission, the District will make strides towards developing a roadmap for
its initiatives, projects, and services provided within the community.
AGENCY GOALS AND OBJECTIVES
IV - Promote Planning, Maintenance and Preservation of District Resources
A. Develop Projects and Programs to Ensure Safe and Reliable Services
III - Deliver Public Service With Purpose While Embracing Continuous Growth
B. Strive to Provide World Class Customer Relations
C. Promote a Positive Organizational Culture
Agenda Item
#4
August 22, 20232
Meeting Date: August 22, 2023
Agenda Item #4
Discussion Item
B. Enhance Planning Efforts that Respond to Future Demands
FISCAL IMPACT
There is no fiscal impact associated with this agenda item.
Respectfully submitted:
________________
William Ringland
Public Affairs/Conservation Manager
ATTACHMENTS
Presentation
Strategic Plan Overview
EAST VALLEY WATER DISTRICT
August 22, 2023
Community Advisory Committee
Importance of
Strategic Planning
Supports District’s Priorities, Engages Board and Staff,
Provides Working Framework for East Valley Water District
What?
How?
Why?
Mission
Vision
Values
Strategic Plan Key Elements
Vital Factors
Strategies
4
Goals
Mission
Why does the District exist?
What is its purpose, goal or critical
function?
Vision
What does the EVWD want to be in the future?
Current Vision
Enhance and preserve the quality of life for our
community through innovative leadership and world
class public service.
Is the vision
statement motivational
/inspirational?
Discussion: Vision
Does the vision
statement capture
who you want
EVWD to be?
Is the vision
statement
memorable?
Values
The District’s foundational character—how it conducts
business and how it is perceived by its employees,
customers and stakeholders.
Current Core Values
Leadership: Motivating a group of people to act towards 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.
DiscussionValues
Finish the statement using three words:
“East Valley Water District is…”
Tying it Together
Next Steps