Loading...
HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 06/25/2025BOARD OF DIRECTORS JUNE 25, 2025 East Valley Water District was formed in 1954 and provides water and wastewater services to 108,000 residents within the cities of San Bernardino and Highland, and portions of San Bernardino County. EVWD operates under the direction of a 5­member elected Board. GOVERNING BOARD EXECUTIVE MANAGEMENT James Morales, Jr. Chairman of the Board Michael Moore General Manager/CEO Ronald L. Coats Vice­Chairman Brian W. Tompkins Chief Financial Officer Chris Carrillo Governing Board Member Jeff Noelte Director of Engineering & Operations David E. Smith Governing Board Member Kerrie Bryan Director of Administrative Services Phillip R. Goodrich Governing Board Member Patrick Milroy  Operations Manager Manuel Moreno Water Reclamation Manager William Ringland Public Affairs/Conservation Manager Justine Hendricksen District Clerk Ryan Ritualo Information Technology Manager Board of Directors Regular Meeting June 25, 2025 ­ 5:00 PM Closed Session begins at 4:00 p.m. 31111 Greenspot Road, Highland, CA 92346 www.eastvalleywater.gov 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 ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. 1.AGENDA This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. a.Approval of Agenda RECESS INTO CLOSED SESSION 2.CLOSED SESSION a.CONFERENCE WITH LEGAL COUNSEL – INITIATION OF LITIGATION Initiation of litigation pursuant to Government Code Section 54956.9(d)(4)  b.CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [Government Code Section 54956.9(d)(1)] Name of Case: East Valley Water District v. Brucie Cagle, et al., CASE NO. CIVSB2112619 [Cross­Complaint: Raley v. North Fork Water Company, et al.] 5:00 PM RECONVENE MEETING PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS ANNOUNCEMENT OF CLOSED SESSION ACTIONS ITEMS PRESENTATIONS AND CEREMONIAL ITEMS Empowering Young Ladies Program Update PUBLIC COMMENTS 3.APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a.Approve the June 11, 2025 Regular Board Meeting Minutes b.Accept and File Financial Statements for April 2025 c.Accept and File Investment Transaction Report for Month Ended May 31, 2025 d.Approve April 2025 Disbursements: Accounts payable disbursements for the period include check numbers 265100 through 265271, bank drafts, and ACH payments in the amount of $5,246,914.58 and $526,689.85 for payroll e.Approve May 2025 Disbursements: Accounts payable disbursements for the period include check numbers 265272 through 265480, bank drafts, and ACH payments in the amount of $3,378,778.89 and $497,803.84 for payroll 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Adoption of Resolution 2025.03 Approving the Fiscal Year 2025­26 Operating and Capital Budgets b.Consider approval of Amendment No. 4 ­ Reimbursement Agreement with the City of Highland for Law Enforcement Services 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSJUNE 25, 2025East Valley Water District was formed in 1954 and provides water and wastewater services to108,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County. EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD EXECUTIVE MANAGEMENTJames Morales, Jr.Chairman of the Board Michael MooreGeneral Manager/CEORonald L. CoatsVice­Chairman Brian W. TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsDavid E. SmithGoverning Board Member Kerrie BryanDirector of Administrative ServicesPhillip R. GoodrichGoverning Board Member Patrick Milroy Operations ManagerManuel MorenoWater Reclamation ManagerWilliam RinglandPublic Affairs/Conservation ManagerJustine Hendricksen District Clerk Ryan Ritualo Information Technology Manager Board of Directors Regular Meeting June 25, 2025 ­ 5:00 PM Closed Session begins at 4:00 p.m. 31111 Greenspot Road, Highland, CA 92346 www.eastvalleywater.gov 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 ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. 1.AGENDA This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. a.Approval of Agenda RECESS INTO CLOSED SESSION 2.CLOSED SESSION a.CONFERENCE WITH LEGAL COUNSEL – INITIATION OF LITIGATION Initiation of litigation pursuant to Government Code Section 54956.9(d)(4)  b.CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [Government Code Section 54956.9(d)(1)] Name of Case: East Valley Water District v. Brucie Cagle, et al., CASE NO. CIVSB2112619 [Cross­Complaint: Raley v. North Fork Water Company, et al.] 5:00 PM RECONVENE MEETING PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS ANNOUNCEMENT OF CLOSED SESSION ACTIONS ITEMS PRESENTATIONS AND CEREMONIAL ITEMS Empowering Young Ladies Program Update PUBLIC COMMENTS 3.APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a.Approve the June 11, 2025 Regular Board Meeting Minutes b.Accept and File Financial Statements for April 2025 c.Accept and File Investment Transaction Report for Month Ended May 31, 2025 d.Approve April 2025 Disbursements: Accounts payable disbursements for the period include check numbers 265100 through 265271, bank drafts, and ACH payments in the amount of $5,246,914.58 and $526,689.85 for payroll e.Approve May 2025 Disbursements: Accounts payable disbursements for the period include check numbers 265272 through 265480, bank drafts, and ACH payments in the amount of $3,378,778.89 and $497,803.84 for payroll 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Adoption of Resolution 2025.03 Approving the Fiscal Year 2025­26 Operating and Capital Budgets b.Consider approval of Amendment No. 4 ­ Reimbursement Agreement with the City of Highland for Law Enforcement Services 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSJUNE 25, 2025East Valley Water District was formed in 1954 and provides water and wastewater services to108,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County. EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD EXECUTIVE MANAGEMENTJames Morales, Jr.Chairman of the Board Michael MooreGeneral Manager/CEORonald L. CoatsVice­Chairman Brian W. TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsDavid E. SmithGoverning Board Member Kerrie BryanDirector of Administrative ServicesPhillip R. GoodrichGoverning Board Member Patrick Milroy Operations ManagerManuel MorenoWater Reclamation ManagerWilliam RinglandPublic Affairs/Conservation ManagerJustine HendricksenDistrict ClerkRyan RitualoInformation Technology ManagerBoard of Directors Regular MeetingJune 25, 2025 ­ 5:00 PMClosed Session begins at 4:00 p.m.31111 Greenspot Road, Highland, CA 92346www.eastvalleywater.govPLEASE 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 ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. 1.AGENDA This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. a.Approval of Agenda RECESS INTO CLOSED SESSION 2.CLOSED SESSION a.CONFERENCE WITH LEGAL COUNSEL – INITIATION OF LITIGATION Initiation of litigation pursuant to Government Code Section 54956.9(d)(4)  b.CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION [Government Code Section 54956.9(d)(1)] Name of Case: East Valley Water District v. Brucie Cagle, et al., CASE NO. CIVSB2112619 [Cross­Complaint: Raley v. North Fork Water Company, et al.] 5:00 PM RECONVENE MEETING PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS ANNOUNCEMENT OF CLOSED SESSION ACTIONS ITEMS PRESENTATIONS AND CEREMONIAL ITEMS Empowering Young Ladies Program Update PUBLIC COMMENTS 3.APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a.Approve the June 11, 2025 Regular Board Meeting Minutes b.Accept and File Financial Statements for April 2025 c.Accept and File Investment Transaction Report for Month Ended May 31, 2025 d.Approve April 2025 Disbursements: Accounts payable disbursements for the period include check numbers 265100 through 265271, bank drafts, and ACH payments in the amount of $5,246,914.58 and $526,689.85 for payroll e.Approve May 2025 Disbursements: Accounts payable disbursements for the period include check numbers 265272 through 265480, bank drafts, and ACH payments in the amount of $3,378,778.89 and $497,803.84 for payroll 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Adoption of Resolution 2025.03 Approving the Fiscal Year 2025­26 Operating and Capital Budgets b.Consider approval of Amendment No. 4 ­ Reimbursement Agreement with the City of Highland for Law Enforcement Services 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSJUNE 25, 2025East Valley Water District was formed in 1954 and provides water and wastewater services to108,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County. EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD EXECUTIVE MANAGEMENTJames Morales, Jr.Chairman of the Board Michael MooreGeneral Manager/CEORonald L. CoatsVice­Chairman Brian W. TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsDavid E. SmithGoverning Board Member Kerrie BryanDirector of Administrative ServicesPhillip R. GoodrichGoverning Board Member Patrick Milroy Operations ManagerManuel MorenoWater Reclamation ManagerWilliam RinglandPublic Affairs/Conservation ManagerJustine HendricksenDistrict ClerkRyan RitualoInformation Technology ManagerBoard of Directors Regular MeetingJune 25, 2025 ­ 5:00 PMClosed Session begins at 4:00 p.m.31111 Greenspot Road, Highland, CA 92346www.eastvalleywater.govPLEASE NOTE:Materials related to an item on this agenda submitted to the Board after distribution of theagenda packet are available for public inspection in the District’s office located at 31111Greenspot Rd., Highland, during normal business hours. Also, such documents are availableon the District’s website at eastvalley.org and are subject to staff’s ability to post thedocuments before the meeting.Pursuant to Government Code Section 54954.2(a), any request for a disability­relatedmodification or accommodation, including auxiliary aids or services, that is sought in orderto participate in the above agendized public meeting should be directed to the District Clerkat (909) 885­4900 at least 72 hours prior to said meeting.In order to comply with legal requirements for posting of agenda, only those items filedwith the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesdaymeeting not requiring departmental investigation, will be considered by the Board ofDirectors.CALL TO ORDERROLL CALL OF BOARD MEMBERSPUBLIC COMMENTSAny person wishing to speak to the Board of Directors is asked to complete a SpeakerCard and submit it to the District Clerk prior to the start of the meeting. Each speaker islimited to three (3) minutes, unless waived by the Chairman of the Board. Under the Stateof California Brown Act, the Board of Directors is prohibited from discussing or takingaction on any item not listed on the posted agenda. The matter will automatically bereferred to staff for an appropriate response or action and may appear on the agenda at afuture meeting.1.AGENDAThis agenda contains a brief general description of each item to be considered.Except as otherwise provided by law, no action shall be taken on any item notappearing on the following agenda unless the Board of Directors makes adetermination that an emergency exists or that a need to take immediate action onthe item came to the attention of the District subsequent to the posting of theagenda.a.Approval of AgendaRECESS INTO CLOSED SESSION2.CLOSED SESSIONa.CONFERENCE WITH LEGAL COUNSEL – INITIATION OF LITIGATIONInitiation of litigation pursuant to Government Code Section 54956.9(d)(4) b.CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION[Government Code Section 54956.9(d)(1)]Name of Case: East Valley Water District v. Brucie Cagle, et al., CASENO. CIVSB2112619 [Cross­Complaint: Raley v. North Fork Water Company, etal.]5:00 PM RECONVENE MEETINGPLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS ANNOUNCEMENT OF CLOSED SESSION ACTIONS ITEMS PRESENTATIONS AND CEREMONIAL ITEMS Empowering Young Ladies Program Update PUBLIC COMMENTS 3.APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a.Approve the June 11, 2025 Regular Board Meeting Minutes b.Accept and File Financial Statements for April 2025 c.Accept and File Investment Transaction Report for Month Ended May 31, 2025 d.Approve April 2025 Disbursements: Accounts payable disbursements for the period include check numbers 265100 through 265271, bank drafts, and ACH payments in the amount of $5,246,914.58 and $526,689.85 for payroll e.Approve May 2025 Disbursements: Accounts payable disbursements for the period include check numbers 265272 through 265480, bank drafts, and ACH payments in the amount of $3,378,778.89 and $497,803.84 for payroll 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider Adoption of Resolution 2025.03 Approving the Fiscal Year 2025­26 Operating and Capital Budgets b.Consider approval of Amendment No. 4 ­ Reimbursement Agreement with the City of Highland for Law Enforcement Services 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN Agenda Item #June 25, 20251 Meeting Date: June 25, 2025 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Empowering Young Ladies Program Update RECOMMENDATION This agenda item is for informational purposes only, no action required. DISTRICT PILLARS AND STRATEGIES V - Community Engagement, Advocacy, and Leadership d. Provide Education Programming that Empowers the Community REVIEW BY OTHERS This agenda item has been reviewed by the Administration Department. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Kerrie Bryan Director of Administrative Services ATTACHMENTS Presentation - Ignite Your Potential Kerrie Bryan, Director of Administrative Services June 25, 2025 IGNITE YOUR POTENTIAL YOUNG LADIES OF THE FUTURE EVENTRecap PROGRAM DEVELOPMENT •Recognized the need to mentor and connect female high school students with successful women from the community •Partnerships with the City of Highland, City of Highland Fire Department, and Indian Springs High School •One-Day event included •Speakers •Team building activities •Brainstorming sessions •Mentoring sessions •Participants •Female Seniors from Indian Springs High School Pathways/Academies 2 IGNITE YOUR POTENTIAL AGENDA •Breakfast/welcome and event introduction •Keynote speaker •Panelist introductions and presentations •Student Q&A •Teambuilding group activity •Mentoring sessions •Lunch with a mentor 3 EVENT SPEAKERS/MENTORS •Liz Brown – Highland CalFire Battalion Chief, Keynote Speaker •Penny Lilburn – Mayor of the City of Highland •Kerrie Bryan – EVWD Director of Administrative Services •Roxana Morales – EVWD Public Affairs Supervisor •Megan Schatzschneider – Loma Linda University Family Nurse Practitioner •Destiny Zeremba – Local Business Owner 4 GROUP ACTIVITIES TEAM BUILDING ACTIVITY •Attendees received a team color wristband at check-in •Each table was assigned a mentor •Materials •Uncooked spaghetti, marshmallows, string, tape, rubber bands, paperclips, and scissors •The team that built the tallest structure with the materials provided after 20 minutes won!6 MENTORING SESSION •Small groups of students are assigned a mentor •Interactive session •Mentors asked thought-provoking questions •Mentees seek advice •Engaged in after-high-school education/career planning •Exchanged contact info 7 EVENT TAKEAWAYS •Diverse career paths showcased •New career ideas ignited •Students inspired and empowered for their high-school journey •Meaningful connections built with a network of supportive mentors and role models 8 AFTER ACTION: NEXT STEPS •Debriefed with event partners •Continue the program for the next graduating class of female Pathway and Academy students •Hold the event earlier in the school year •Begin planning the event! 9 QUESTIONS? Agenda Item #3a June 25, 20251 Meeting Date: June 25, 2025 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approve the June 11, 2025 Regular Board Meeting Minutes RECOMMENDATION That the Board of Directors approve the June 11, 2025 regular Board meeting minutes as submitted. DISTRICT PILLARS AND STRATEGIES V - Community Engagement, Advocacy, and Leadership a. Utilize Effective Communication Methods to Foster Exceptional Community Relations REVIEW BY OTHERS This agenda item has been reviewed by Administration. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS June 11, 2025 Regular Board Meeting Minutes Regular Board Meeting Meeting Date: June 11, 2025 CALL TO ORDER The Chairman of the Board called the meeting to order at 5:00 p.m. PLEDGE OF ALLEGIANCE Director Carrillo led the flag salute. ROLL CALL OF BOARD MEMBERS PRESENT Directors: Carrillo, Coats, Goodrich, Morales, Smith ABSENT None STAFF Michael Moore, General Manager/CEO; Brian Tompkins, Chief Financial Officer; Jeff Noelte, Director of Engineering and Operations; Kerrie Bryan, Director of Administrative Services; William Ringland, Public Affairs/Conservation Manager; Ryan Ritualo, Information Technology Manager; Janett Robledo, Conservation Coordinator; Justine Hendricksen, District Clerk; Shayla Antrim, Administrative Specialist LEGAL COUNSEL Jean Cihigoyenetche GUESTS Members of the public PUBLIC COMMENTS Chairman Morales declared the public participation section of the meeting open at 5:01 p.m. Draft pending approval 2 2 7 6 Mr. Fred Yauger asked that he defer his public comment until after agenda item 3.b. was presented. PRESENTATIONS AND CEREMONIAL ITEMS SoCal STEAM Event Recap and Student Recognition  1.APPROVAL OF AGENDA a.Approval of Agenda 2.APPROVAL OF CONSENT CALENDAR a.Approve the May 28, 2025 Regular Board Meeting Minutes b.Approve Directors' Fees and Expenses for May 2025 c.Approve Cancellation of the August 27, 2025 Regular Board Meeting 3.INFORMATIONAL ITEMS a. Geographic Information System (GIS) Update 2 2 7 6 For information only. b. Review Draft Budget for FY 2025-26 The Chief Financial Officer presented a comprehensive overview of the proposed budget for fiscal year 2025–26, highlighting key considerations such as inflation, power costs, and water sales. He provided a detailed breakdown of the budget by funds, expenditures, and the District’s 19 programs, noting a 4% increase compared to the amended budget from the previous year. The presentation included an in-depth review of each program’s budget, staffing changes, goals and objectives, with particular emphasis on infrastructure investment, capital improvement projects, and strategic planning. He also outlined the capital budget, capital outlay, and improvement projects, and explained proposed changes to authorized staffing levels. Mr. Fred Yauger praised the Chief Financial Officer and staff for their thorough work and responsiveness in preparing the budget documentation. For information only. 4.REPORTS a.Board of Directors’ Reports Director Goodrich reported on the following: June 3 he attended the Yucaipa Valley Water District Board meeting where they reported on the health of the local aquifer; and June 10 he attended the Highland City Council meeting where they approved a reimbursement agreement with East Valley Water District. Director Smith reported on the following: June 11 he participated in the San Bernardino Valley Water Conservation District Board meeting with nothing to report. Director Carrillo reported on the following: June 9 he met with the General Manager/CEO to review the agenda and discuss District business; and June 10 he participated in the Inland Action meeting via Zoom. Vice Chairman Coats reported on the following: May 29 he attended the California Special Districts Association’s Finance Corporation meeting; June 3 he attended the San Bernardino Valley Municipal Water District Board meeting; June 4 he met with the General Manager/CEO and Chairman to review the agenda and discuss District business; June 5 he attended the California Special Districts Association Membership Services Committee meeting; and June 9 he attended the Association of the San Bernardino County Special District’s Board meeting to discuss Association business. Chairman Morales reported on the following: June 3 he attended the San Bernardino Valley Municipal Water District Board meeting where they approved the appropriation 2 2 7 6 limit for fiscal year 2025-26; June 4 he met with the General Manager/CEO and Vice Chairman to review the agenda and discuss District business; June 4 and 6 he attended the Association of California Water Agencies Region 9 Board meetings; and June 5 he attended the San Bernardino Valley Municipal Water District’s Policy/Administration Workshop. b. General Manager/CEO Report June 19 - In observance of the Juneteenth holiday, the District’s offices and customer service lines will be closed. Customers may call (909) 889-9501 for water and wastewater emergencies. He reported a significant water main break on Victoria and Pacific, affecting numerous customers with low water pressure; he will keep the Board updated on progress. June 12 at 12:00 p.m. - Legislative & Public Outreach Committee meeting. He discussed the dry conditions of the groundwater recharge basins and the low water levels in the San Bernardino basin. The Basin Technical Advisory Committee met in June to discuss designating 10,000 acre feet as surplus and Valley District may consider this action at a future Board meeting. c. Legal Counsel Report d. Board of Directors’ Comments ADJOURN 2 2 7 6 James Morales, Jr., Board President Michael Moore, Board Secretary Agenda Item #3b June 25, 20251 Meeting Date: June 25, 2025 1 5 7 6 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Accept and File Financial Statements for April 2025 RECOMMENDATION That the Board of Directors accept and file the attached financial statements as of, and for the period ended, April 30, 2025. BACKGROUND / ANALYSIS The East Valley Water District adopted an annual budget on June 26, 2024 for fiscal year 2024- 25. In accordance with District Administrative Policy 7.7, the Chief Financial Officer provides regular budget updates to the Board of Directors (Board). Included herewith for the Board’s review is a summary of the District’s financial results, as of April 30, 2025. DISTRICT PILLARS AND STRATEGIES II - Sustainability, Transparency, and Accountability a. Uphold Transparent and Accountable Fiscal and Resource Management REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer Agenda Item #3b June 25, 20252 Meeting Date: June 25, 2025 1 5 7 6 ATTACHMENTS April 2025 Financial Statement Monthly Review April 2025 Financial Statements FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING APRIL 30, 2025 page | 1 The following is a highlight summary of the District’s financial results as of April 30, 2025. Please note all values presented are in millions (unless otherwise noted). Statement of Net Position Total assets at April 30, 2025 are $398.99 million. CLASSIFICATION WATER WASTEWATER RECLAMATION DISTRICT TOTAL Cash and Investments $ 21.20 $ 10.40 $ 8.71 $ 40.31 Utility Plant, Net 109.50 27.88 176.05 313.43 Other Assets 32.56 6.02 6.67 45.25 Current Liabilities 3.83 0.23 0.49 4.55 Long Term Liabilities 46.38 11.14 177.94 235.46 Beginning Net Position 104.07 30.90 9.59 144.56 Change in Equity 8.21 1.71 3.41 13.33 TOTAL NET $ 112.28 $ 32.61 $ 13.00 $ 157.89 Cash and Investments Cash and Investments are $40.31 million for the month of April, a decrease of $110 thousand from the prior month. In April, the District received $1.49 million for Water Reclamation Grant Revenue from the State of California and paid $2.02 million for Pay Application 73 for Project Closeout for construction of the SNRC and recycled water pipeline and $700 thousand to SBMWD for the JPA Settlement Agreement. The District’s Due from Other Governments includes receivables from SBVMWD bringing the ending balance as of April 30, 2025 to $4.4 million. $0 $5 $10 $15 $20 $25 $30 $35 $40 $45 Mi l l i o n s CASH & INVESTMENTS Restricted Unrestricted FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING APRIL 30, 2025 page | 2 Statement of Revenues & Expenses Total Revenues & Expenses through April 30, 2025 are summarized below (in millions): Column1 WATER WASTEWATER RECLAMATION DISTRICT TOTAL Revenue $ 29.25 $ 6.62 $ 14.23 Water Sales by Tier Water Sales for the month ending April 30, 2025 were $1.1 million; $291 thousand over staff projections for the month and $1.69 million over projections year-to-date. $0.0 $0.5 $1.0 $1.5 $2.0 $2.5 $3.0 Mi l l i o n s WATER SALES BY TIER Tier 1 Tier 2 Tier 3 FY 2024-25 Projection For a more detailed presentation, operating results are presented in three ways on pages 2 through 6 of the attached financial statements for the period ending April 30, 2025. First is a one-page summary with monthly and year-to-date totals for revenue and expenses, presented by Expense Category. Second is a one-page summary with monthly and year-to-date totals for Revenues and Expense by Program. Third is a Budget-to- Actual presentation of program expense detail. Agenda Item #3.b. April 2025 Financial Statements Monthly Financial Review(Updated Pages 2 & 3) FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING APRIL 30, 2025 page | 3 Water Sales by Customer Class The table below shows the District’s water sales for the month of April 2025 by customer class. The following icons are to complement the graph below: positive change, no change, negative change when comparing actuals versus projections. CUSTOMER CLASS ACTUAL PROJECTION $ VARIANCE % VARIANCE Residential 635,211$ 501,000$ 134,211$ 27% Multi-Family 212,475 200,000 12,475 6% Commercial 130,131 113,000 17,131 15% Irrigation 160,584 33,000 127,584 387% TOTAL $1,138,401 $ 847,000 $ 291,401 34% The following table displays customer class by tier for the month of April 2025: CUSTOMER CLASS TIER ACTUAL PROJECTION $ VARIANCE % VARIANCE Residential Tier 1 308,919$ 317,000$ (8,081)$ -3% Residential Tier 2 248,872 127,000 121,872 96% Residential Tier 3 77,420 57,000 20,420 36% Multi-Family Tier 1 120,290 136,000 (15,710) -12% Multi-Family Tier 2 37,766 25,000 12,766 51% Multi-Family Tier 3 54,419 39,000 15,419 40% Commercial Flat Rate 92,106 91,000 1,106$ 1% Commercial Tier 1 15,641 11,000 4,641 42% Commercial Tier 2 21,277 10,000 11,277 113% Commercial Tier 3 1,107 1,000 107 11% Irrigation Tier 2 53,156 24,000 29,156 121% Irrigation Tier 3 107,428 9,000 98,428 1094% TOTAL $ 1,138,401 $ 847,000 $ 291,401 34% Legend - Positive Change in Actuals - Neutral Change in Actuals - Negative Change in Actuals Agenda Item #3.b. April 2025 Financial Statements Monthly Financial Review(Updated Pages 2 & 3) FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING APRIL 30, 2025 page | 4 The chart below is a comparative illustration of Water Revenue year-to-date compared to last year’s Water Revenue year-to-date as of April. As noted in the graph, Water Revenue experienced a significant increase over last year. Water consumption increased 481.21 million gallons (643.3K HCF) compared to April of 2024 and water sales were up $2.85 million for all three tiers combined. $0 $5 $10 $15 $20 $25 $30 4/30/2024 4/30/2025 Mi l l i o n s COMPARATIVE MONTHLY WATER REVENUE (WATER SALES & METER CHARGES) Meter Tier 1 Tier 2 Tier 3 Total - $22,839,193 Total - $26,116,484 FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING APRIL 30, 2025 page | 5 Water Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Water Fund operating cost centers for FY 2023-24 and FY 2024-25. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING APRIL 30, 2025 page | 6 Wastewater Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Wastewater Fund operating cost centers for FY 2023-24 and FY 2024-25. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING APRIL 30, 2025 page | 7 Water Reclamation Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Water Reclamation Fund operating cost centers for FY 2023-24 and FY 2024-25. WATER WASTEWATER RECLAMATION DISTRICT TOTAL ssets: Current Assets: 01 Cash and Cash E uivalents 250 861.25 4 517 763.24 5 081 720.92 9 850 345.41 02 Investments 13 159 625.14 1 942 006.07 - 15 101 631.21 03 ccounts Receivable Net 4 567 557.17 351 017.49 667 029.83 5 585 604.49 14 05 Other Receivables 10 019 129.87 - - 10 019 129.87 06 Due from Other Governments - - 4 360 792.08 4 360 792.08 08 Inventor 1 596 676.14 6 721.16 - 1 603 397.30 09 Pre aid Ex enses 721 355.65 42 012.11 - 763 367.76 30 315 205.22 6 859 520.07 10 109 542.83 47 284 268.12 Non-Current Assets: 10 Restricted Cash and Cash E uivalents 7 787 981.30 3 943 424.42 3 630 159.00 15 361 564.72 11 Ca ital Assets not bein De reciated 9 277 948.16 2 864 763.87 1 644 640.66 13 787 352.69 13 Ca ital Assets Net 109 496 157.95 27 884 535.08 176 049 146.27 313 429 839.30 126 562 087.41 34 692 723.37 181 323 945.93 342 578 756.71 Total Assets:156 877 292.63 41 552 243.44 191 433 488.76 389 863 024.83 Deferred Outflow Of Resources 24*Deferred Char e on Refundin 553 094.33 259 347.41 - 812 441.74 25 Deferred Outflows - Pensions 5 825 739.90 2 496 746.10 - 8 322 486.00 163 256 126.86 44 308 336.95 191 433 488.76 398 997 952.57 Current Liabilities: 22 ccounts Pa able and Accrued Ex enses 1 153 244.07 108 779.58 196 919.00 1 458 942.65 29 Due to Water Fund - - - - 29.Due to Sewer Fund - - - - 29.Due to Reclamation Fund - - - - 23 ccrued Pa roll and Benefits - - - - 15 Customer Service De osits 1 549 632.95 - - 1 549 632.95 16 Construction Advances and Retentions 222 245.14 2 326.48 4 650.00 229 221.62 17 ccrued Interest Pa able 203 649.00 24 710.75 - 228 359.75 18 Current Portion of Com ensated Absences 305 526.87 91 983.03 35 192.47 432 702.37 19 Current Portion of Lon -Term Debt 396 500.28 - 251 013.95 647 514.23 3 830 798.31 227 799.84 487 775.42 4 546 373.57 Non-Current Liabilities: 20 Com ensated Absences less current ortion 357 344.70 133 961.30 141 708.18 633 014.18 28 Net Pension Liabilit 10 544 076.50 4 470 610.00 - 15 014 686.50 21 Lon Term Debt Less Current Portion 35 476 914.24 6 540 154.00 177 802 415.08 219 819 483.32 27 Other Liabilities 1 173.64 - - 1 173.64 46 379 509.08 11 144 725.30 177 944 123.26 235 468 357.64 Total Liabilities:50 210 307.39 11 372 525.14 178 431 898.68 240 014 731.21 Deferred Inflows Of Resources 26 Deferred Inflows - Pensions 765 208.10 327 945.90 - 1 093 154.00 50 975 515.49 11 700 471.04 178 431 898.68 241 107 885.21 31 E uit 104 070 750.35 30 902 606.01 9 594 920.69 144 568 277.05 104 070 750.35 30 902 606.01 9 594 920.69 144 568 277.05 To Total Revenue 29 246 144.09 6 618 832.61 14 227 939.40 50 092 916.10 To Total Ex ense 21 036 283.07 4 913 572.71 10 821 270.01 36 771 125.79 8 209 861.02 1 705 259.90 3 406 669.39 13 321 790.31 112 280 611.37 32 607 865.91 13 001 590.08 157 890 067.36 163 256 126.86 44 308 336.95 191 433 488.76 398 997 952.57 Total Liabilities, Equity and Current Surplus (Deficit): Total Be innin Equity: Equity: Revenues Over/Under Expenses Total Current Liabilities: Total Liabilities and Deferred Inflows of Resources: Total Non-Current Liabilities: Unaudited s of April 30, 2025 Combinin Schedule of Net Position Total Equity and Current Surplus (Deficit): Total Assets and Deferred Outflows of Resources: Total Current Assets: Total Non-Current Assets: Page 1 of 6 ADOPTED ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenu 41 Water Sales 1 138 402.2 16 667 272.6 18 820 000.0 - - - - 910 860.1 1 172 000.0 19 992 000.0 2 413 867.2 42 Meter Char es 941 502.7 8 884 616.5 10 685 000.0 - - - - - - 10 685 000.0 1 800 383.4 43 Penalties 63 670.4 514 490.3 416 000.0 1 985.8 49 737.5 110 000.0 3 841.2 7 762.2 60 000.0 586 000.0 14 009.9 44 Wastewater S stem Char es - - - 546 783.8 5 550 436.9 6 515 000.0 - - - 6 515 000.0 964 563.0 45 Wastewater Treatment Char es - - - - - - 1 023 503.7 10 511 668.1 12 333 000.0 12 333 000.0 1 821 331.8 46 Other O eratin Revenue 17 949.8 2 315 776.5 365 000.0 12 762.9 860 840.4 5 000.0 9 806.0 1 210 648.9 1 010 000.0 1 380 000.0 3 007 266.04 47 Non O eratin Revenue 108 927.4 863 987.9 520 000.0 4 245.2 157 817.5 100 000.0 1 493 764.0 1 586 999.9 280 000.0 900 000.0 1 708 805.56 48 Gain or Loss on Dis osition - - - - - - - - - - - 56 Benefits - - - - - - - - - - - 68 De reciation - - - - - - - - - - - Revenue Total: 2 270 452.86 29 246 144.09 30 806 000.00 565 777.82 6 618 832.61 6 730 000.00 2 530 915.04 14 227 939.40 14 855 000.00 52 391 000.00 2 298 083.90 - - - - - - - - Ex ense b Cate or 51 Labor 440 495.1 4 845 571.1 6 534 400.0 130 895.3 1 365 031.2 1 826 600.0 76 422.5 795 168.4 1 000 000.0 9 361 000.0 2 355 229.2 56 Benefits 161 328.7 2 502 074.8 3 017 900.0 43 325.9 638 855.0 809 100.0 27 800.6 391 791.7 448 000.0 4 275 000.0 742 278.3 63 Contract Services 623 923.5 4 788 632.3 5 781 900.0 112 653.7 1 388 383.3 1 875 850.0 94 433.7 2 997 098.4 5 943 000.0 13 600 750.0 4 426 635.8 65 Professional Develo ment 16 274.3 194 807.4 317 200.0 4 049.8 66 283.6 117 800.0 1 465.5 13 919.6 12 000.0 447 000.0 171 989.3 53 Overtime 46 639.0 493 761.3 633 400.0 5 282.1 28 226.1 26 600.0 18 598.2 291 806.3 310 000.0 970 000.0 156 206.1 62 Materials and Su lies 184 695.1 1 497 984.9 1 928 200.0 10 670.4 157 363.7 179 050.0 18 474.5 678 260.7 335 000.0 2 442 250.0 108 640.6 64 Utilities 29 456.3 2 390 072.1 4 067 000.0 3 951.4 193 354.2 301 000.0 230 407.0 2 548 823.9 2 481 000.0 6 849 000.0 1 716 749.6 52 Tem orar Labor 1 508.9 15 658.8 122 500.0 646.7 6 711.0 52 500.0 3 742.5 63 147.6 143 000.0 318 000.0 232 482.5 67 Other 11 553.5 2 126 786.5 1 909 900.0 3 237.5 666 757.9 782 100.0 - - - 2 692 000.0 101 544.43 54 Standb 5 851.4 70 008.1 87 500.0 321.7 3 872.1 4 500.0 6 403.3 66 267.2 65 000.0 157 000.0 16 852.5 61 Water Su l - 363 797.9 833 000.0 - - - - - - 833 000.0 469 202.0 71 Debt Service 759 675.0 2 408 441.0 2 662 000.0 210 000.0 481 996.7 482 000.0 - 7 170 198.4 7 731 000.0 10 875 000.0 814 363.7 81 Ca ital Im rovement - 504 835.7 1 328 000.0 - - - - - - 1 328 000.0 823 164.2 82 Ca ital Outla 31 689.0 468 686.5 903 000.0 1 536.3 91 737.4 159 000.0 - 16 437.5 81 000.0 1 143 000.0 566 138.4 83 ccountin Income Add back - 1 634 835.74 - - 175 000.00 - - 4 211 650.05 - - 6 021 485.7 88 Transfer to Reserves - - - - - - - - - - - 99 Transfer from Reserves - - - - - - - - - - - Ex ense Total: 2 313 090.43 21 036 283.07 30 125 900.00 526 571.33 4 913 572.71 6 616 100.00 477 748.25 10 821 270.01 18 549 000.00 55 291 000.00 18 519 874.21 Total Sur lus Deficit :42 637.57 8 209 861.02 680 100.00 39 206.49 1 705 259.90 113 900.00 2 053 166.79 3 406 669.39 3 694 000.00 2 900 000.00 16 221 790.31 Unaudited Revenue and Ex ense Bud et-to-Actual b Cate or Month Ended A ril 30, 2025 WATER WASTEWATER DISTRICT WIDERECLAMATION Page 2 of 6 ADOPTED ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenu 41 Water Sales 1 138 402.2 16 667 272.6 18 820 000.0 - - - - 910 860.1 1 172 000.0 19 992 000.0 2 413 867.2 42 Meter Char es 941 502.7 8 884 616.5 10 685 000.0 - - - - - - 10 685 000.0 1 800 383.4 43 Penalties 63 670.4 514 490.3 416 000.0 1 985.8 49 737.5 110 000.0 3 841.2 7 762.2 60 000.0 586 000.0 14 009.9 44 Wastewater S stem Char es - - - 546 783.8 5 550 436.9 6 515 000.0 - - - 6 515 000.0 964 563.0 45 Wastewater Treatment Char es - - - - - - 1 023 503.7 10 511 668.1 12 333 000.0 12 333 000.0 1 821 331.8 46 Other O eratin Revenue 17 949.8 2 315 776.5 365 000.0 12 762.9 860 840.4 5 000.0 9 806.0 1 210 648.9 1 010 000.0 1 380 000.0 3 007 266.04 47 Non O eratin Revenue 108 927.4 863 987.9 520 000.0 4 245.2 157 817.5 100 000.0 1 493 764.0 1 586 999.9 280 000.0 900 000.0 1 708 805.56 56 Benefits - - - - - - - - - - - Revenue Total: 2 270 452.86 29 246 144.09 30 806 000.00 565 777.82 6 618 832.61 6 730 000.00 2 530 915.04 14 227 939.40 14 855 000.00 52 391 000.00 2 298 083.90 Pro ra 1000 - Governin Board 52 477.5 180 116.2 228 200.0 22 468.7 74 755.4 97 800.0 - - - 326 000.0 71 128.2 Pro ra 2000 - General Administration 54 443.4 700 386.1 890 400.0 21 443.4 289 826.8 381 600.0 - - - 1 272 000.0 281 787.0 Pro ra 2100 - Human Resources 46 568.6 2 529 759.8 2 506 000.0 19 957.9 867 227.3 1 074 000.0 - - - 3 580 000.0 183 012.8 Pro ra 2200 - Public Affairs 70 728.7 692 327.9 1 059 100.0 29 205.8 279 452.2 453 900.0 - - - 1 513 000.0 541 219.7 Pro ra 2300 - Conservation 23 999.0 341 912.9 631 000.0 - - - - - - 631 000.0 289 087.0 Pro ra 3000 - Finance & Accountin 58 837.5 786 757.1 993 300.0 24 964.3 335 875.7 425 700.0 - - - 1 419 000.0 296 367.1 Pro ra 3200 - Information Technolo 120 392.6 1 150 183.6 1 311 800.0 51 596.8 492 500.4 562 200.0 - - - 1 874 000.0 231 315.8 Pro ra 3300 - Customer Service 75 795.8 1 248 194.9 1 548 400.0 31 907.8 531 613.9 663 600.0 - - - 2 212 000.0 432 191.1 Pro ra 3400 - Meter Services 20 731.5 238 802.3 306 000.0 - - - - - - 306 000.0 67 197.6 Pro ra 4000 - En ineerin 45 785.1 517 675.5 854 700.0 17 420.7 213 601.3 381 300.0 - - - 1 236 000.0 504 723.1 Pro ra 5000 - Water Production 356 289.2 4 138 077.4 6 185 000.0 - - - - - - 6 185 000.0 2 046 922.5 Pro ra 5100 - Water Treatment 117 694.5 1 227 057.5 1 609 000.0 - - - - - - 1 609 000.0 381 942.4 Pro ra 5200 - Water ualit 26 563.3 401 043.4 602 000.0 - - - - - - 602 000.0 200 956.5 Pro ra 6000 - Maintenance Administration 30 211.5 332 101.2 419 400.0 3 298.5 38 244.7 46 600.0 - - - 466 000.0 95 653.9 Pro ra 6100 - Water Maintenance 287 874.3 2 876 553.9 3 927 000.0 - - - - - - 3 927 000.0 1 050 446.0 Pro ra 6200 - Wastewater Collection - - - 42 826.7 646 138.8 962 000.0 - - - 962 000.0 315 861.1 Pro ra 6300 - Water Reclamation - - - - - - 474 699.2 7 837 225.5 10 737 000.0 10 737 000.0 2 899 774.4 Pro ra 7000 - Facilities Maintenance 105 828.9 1 402 842.0 1 527 400.0 38 156.3 522 768.0 654 600.0 3 048.9 9 058.4 - 2 182 000.0 247 331.5 Pro ra 7100 - Fleet Maintenance 27 504.3 525 362.9 634 200.0 11 787.5 222 833.4 271 800.0 - - - 906 000.0 157 803.6 Pro ra 8000 - Ca ital 791 364.0 1 747 127.5 4 893 000.0 211 536.3 398 734.2 641 000.0 - 2 974 986.0 7 812 000.0 13 346 000.0 8 225 152.2 Total Surplus (Deficit): (42,637.57)$ 8,209,861.02$ 680,100.00$ 39,206.49$ 1,705,259.90$ 113,900.00$ 2,053,166.79$ 3,406,669.39$ (3,694,000.00)$ (2,900,000.00)$ (16,221,790.31)$ . WATER WASTEWATER DISTRICT WIDE Revenue and Ex ense Bud et-to-Actual b Pro ram Month Ended A ril 30, 2025 Unaudited RECLAMATION Page 3 of 6 ADOPTED ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 1 138 402.26 16 667 272.61 18 820 000.00 - - - - 910 860.12 1 172 000.00 19 992 000.00 2 413 867.27 42 Meter Char es 941 502.77 8 884 616.58 10 685 000.00 - - - - - - 10 685 000.00 1 800 383.42 43 Penalties 63 670.47 514 490.33 416 000.00 1 985.84 49 737.57 110 000.00 3 841.24 7 762.20 60 000.00 586 000.00 14 009.90 44 Wastewater S stem Char es - - - 546 783.80 5 550 436.98 6 515 000.00 - - - 6 515 000.00 964 563.02 45 Wastewater Treatment Char es - - - - - - 1 023 503.76 10 511 668.11 12 333 000.00 12 333 000.00 1 821 331.89 46 Other O eratin Revenue 17 949.88 2 315 776.59 365 000.00 12 762.96 860 840.47 5 000.00 9 806.04 1 210 648.98 1 010 000.00 1 380 000.00 3 007 266.04 47 Non O eratin Revenue 108 927.48 863 987.98 520 000.00 4 245.22 157 817.59 100 000.00 1 493 764.00 1 586 999.99 280 000.00 900 000.00 1 708 805.56 48 Gain or Loss on Dis osition - - - - - - - - - - - 56 Benefits - - - - - - - - - - - 68 De reciation - - - - - - - - - - - Revenue Total: 2 270 452.86 29 246 144.09 30 806 000.00 565 777.82 6 618 832.61 6 730 000.00 2 530 915.04 14 227 939.40 14 855 000.00 52 391 000.00 2 298 083.90 - - - - - - - -Pro ram: 1000 - Governin Board - - - - - 51 Labor 7 119.33 69 506.51 99 400.00 3 051.13 29 788.45 42 600.00 - - - 142 000.00 42 705.04 56 Benefits 4 520.89 51 848.84 63 000.00 1 937.50 22 220.90 27 000.00 - - - 90 000.00 15 930.26 62 Materials and Su lies - - 2 100.00 - - 900.00 - - - 3 000.00 3 000.00 63 Contract Services 40 038.60 42 681.25 39 200.00 17 159.40 18 277.65 16 800.00 - - - 56 000.00 4 958.90 65 Professional Develo ment 798.68 16 079.68 24 500.00 320.69 4 468.44 10 500.00 - - - 35 000.00 14 451.88 Pro ram: 1000 - Governin Board Total: 52 477.50 180 116.28 228 200.00 22 468.72 74 755.44 97 800.00 - - - 326 000.00 71 128.28 - - - - - -Pro ram: 2000 - General Administration - - - - - 51 Labor 31 932.96 353 511.30 434 700.00 13 057.84 150 876.80 186 300.00 - - - 621 000.00 116 611.90 52 Tem orar Labor 1 508.96 15 658.80 21 000.00 646.72 6 711.00 9 000.00 - - - 30 000.00 7 630.20 53 Overtime 229.60 2 059.72 2 800.00 98.39 882.72 1 200.00 - - - 4 000.00 1 057.56 56 Benefits 12 352.74 162 946.37 186 900.00 4 032.30 60 123.55 80 100.00 - - - 267 000.00 43 930.08 62 Materials and Su lies 48.94 831.20 4 200.00 20.97 356.19 1 800.00 - - - 6 000.00 4 812.61 63 Contract Services 4 453.00 92 373.06 130 200.00 1 908.43 39 588.45 55 800.00 - - - 186 000.00 54 038.49 64 Utilities 154.44 1 907.64 2 800.00 66.19 817.57 1 200.00 - - - 4 000.00 1 274.79 65 Professional Develo ment 3 762.79 71 098.02 107 800.00 1 612.63 30 470.57 46 200.00 - - - 154 000.00 52 431.41 Pro ram: 2000 - General Administration Total: 54 443.43 700 386.11 890 400.00 21 443.47 289 826.85 381 600.00 - - - 1 272 000.00 281 787.04 - - - - - -Pro ram: 2100 - Human Resources - - - - - - 51 Labor 18 012.73 190 274.79 247 100.00 7 719.75 81 546.29 105 900.00 - - - 353 000.00 81 178.92 52 Tem orar Labor - - - - - - - - - - - 53 Overtime 248.91 1 009.47 2 100.00 106.68 432.65 900.00 - - - 3 000.00 1 557.88 56 Benefits 5 522.25 123 229.07 149 800.00 2 366.63 52 779.97 64 200.00 - - - 214 000.00 37 990.96 62 Materials and Su lies 93.97 536.12 3 500.00 40.28 229.76 1 500.00 - - - 5 000.00 4 234.12 63 Contract Services 14 725.48 135 259.46 239 400.00 6 310.90 57 968.29 102 600.00 - - - 342 000.00 148 772.25 64 Utilities 88.57 747.27 1 400.00 37.96 320.26 600.00 - - - 2 000.00 932.47 65 Professional Develo ment 322.40 22 277.53 42 000.00 138.17 7 192.20 18 000.00 - - - 60 000.00 30 530.27 67 Other 7 554.33 2 056 426.13 1 820 700.00 3 237.57 666 757.91 780 300.00 - - - 2 601 000.00 122 184.04 Pro ram: 2100 - Human Resources Total: 46 568.64 2 529 759.84 2 506 000.00 19 957.94 867 227.33 1 074 000.00 - - - 3 580 000.00 183 012.83 - - - - - -Pro ram: 2200 - Public Affairs - - - - - - 51 Labor 26 388.61 238 584.39 361 900.00 11 309.39 102 464.81 155 100.00 - - - 517 000.00 175 950.80 52 Tem orar Labor - - - - - - - - - - - 53 Overtime 610.87 5 570.06 11 900.00 261.80 2 387.14 5 100.00 - - - 17 000.00 9 042.80 56 Benefits 6 167.46 78 955.76 107 100.00 2 643.11 33 839.64 45 900.00 - - - 153 000.00 40 204.60 62 Materials and Su lies 5 518.92 27 583.49 67 200.00 1 258.94 11 698.76 28 800.00 - - - 96 000.00 56 717.75 63 Contract Services 27 542.85 309 367.91 443 100.00 11 804.07 115 233.50 189 900.00 - - - 633 000.00 208 398.59 64 Utilities 212.02 5 863.66 24 500.00 90.87 2 512.99 10 500.00 - - - 35 000.00 26 623.35 65 Professional Develo ment 4 287.99 26 402.72 43 400.00 1 837.70 11 315.43 18 600.00 - - - 62 000.00 24 281.85 Pro ram: 2200 - Public Affairs Total: 70 728.72 692 327.99 1 059 100.00 29 205.88 279 452.27 453 900.00 - - - 1 513 000.00 541 219.74 - - - - - -Pro ram: 2300 - Conservation - - - - - - 51 Labor 8 934.40 94 811.20 123 000.00 - - - - - - 123 000.00 28 188.80 52 Tem orar Labor - - - - - - - - - - - 53 Overtime 670.08 4 481.16 7 000.00 - - - - - - 7 000.00 2 518.84 56 Benefits 3 171.00 32 137.16 44 000.00 - - - - - - 44 000.00 11 862.84 62 Materials and Su lies 1 638.05 32 042.94 63 000.00 - - - - - - 63 000.00 30 957.06 63 Contract Services 5 463.75 88 856.46 271 000.00 - - - - - - 271 000.00 182 143.54 64 Utilities 41.57 8 210.21 26 000.00 - - - - - - 26 000.00 17 789.79 65 Professional Develo ment 310.50 11 121.22 12 000.00 - - - - - - 12 000.00 878.78 67 Other 3 769.68 70 252.62 85 000.00 - - - - - - 85 000.00 14 747.38 Pro ram: 2300 - Conservation Total: 23 999.03 341 912.97 631 000.00 - - - - - - 631 000.00 289 087.03 Pro ram: 3000 - Finance & Accountin - - - - - - 51 Labor 42 059.91 442 125.91 576 100.00 18 025.70 189 054.18 246 900.00 - - - 823 000.00 191 819.91 52 Tem orar Labor - - - - - - - - - - - 53 Overtime 526.88 9 357.32 9 100.00 225.81 4 010.22 3 900.00 - - - 13 000.00 367.54 56 Benefits 12 823.36 219 358.47 268 100.00 5 495.65 95 521.43 114 900.00 - - - 383 000.00 68 120.10 62 Materials and Su lies 19.54 5 318.64 4 900.00 8.37 2 279.37 2 100.00 - - - 7 000.00 598.01 63 Contract Services 2 977.26 95 618.58 112 000.00 1 024.22 38 591.33 48 000.00 - - - 160 000.00 25 790.09 64 Utilities 102.32 1 205.65 2 800.00 43.85 516.70 1 200.00 - - - 4 000.00 2 277.65 65 Professional Develo ment 328.30 13 772.56 20 300.00 140.70 5 902.53 8 700.00 - - - 29 000.00 9 324.91 67 Other - - - - - - - - - - - Pro ram: 3000 - Finance & Accountin Total: 58 837.57 786 757.13 993 300.00 24 964.30 335 875.76 425 700.00 - - - 1 419 000.00 296 367.11 - - - - - - Month Ended A ril 30, 2025 Unaudited Pro ram Ex ense Detail Bud et-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Page 4 of 6 ADOPTED ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended A ril 30, 2025 Unaudited Pro ram Ex ense Detail Bud et-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Pro ram: 3200 - Information Technolo - - - - - - 51 Labor 24 814.72 264 039.51 340 900.00 10 634.88 112 731.29 146 100.00 - - - 487 000.00 110 229.20 52 Tem orar Labor - - - - - - - - - - - 53 Overtime - - - - - - - - - - - 56 Benefits 9 272.52 182 557.72 196 000.00 3 973.86 78 232.12 84 000.00 - - - 280 000.00 19 210.16 62 Materials and Su lies 2 617.95 53 249.76 59 500.00 1 121.98 22 821.22 25 500.00 - - - 85 000.00 8 929.02 63 Contract Services 82 263.71 637 210.50 703 500.00 35 255.90 273 090.29 301 500.00 - - - 1 005 000.00 94 699.21 64 Utilities 1 423.75 13 038.70 8 400.00 610.18 5 588.03 3 600.00 - - - 12 000.00 6 626.73 65 Professional Develo ment - 87.50 3 500.00 - 37.50 1 500.00 - - - 5 000.00 4 875.00 Pro ram: 3200 - Information Technolo Total: 120 392.65 1 150 183.69 1 311 800.00 51 596.80 492 500.45 562 200.00 - - - 1 874 000.00 231 315.86 - - - - - -Pro ram: 3300 - Customer Service - - - - - - 51 Labor 35 275.48 370 064.87 480 200.00 15 118.12 159 370.44 205 800.00 - - - 686 000.00 156 564.69 52 Tem orar Labor - - - - - - - - - - - 53 Overtime 406.35 5 955.05 4 900.00 174.14 2 552.12 2 100.00 - - - 7 000.00 1 507.17 56 Benefits 13 220.86 191 456.52 227 500.00 5 665.73 82 060.47 97 500.00 - - - 325 000.00 51 483.01 62 Materials and Su lies 216.34 1 206.41 4 900.00 92.72 517.04 2 100.00 - - - 7 000.00 5 276.55 63 Contract Services 25 333.36 565 578.75 702 800.00 10 857.16 242 390.94 301 200.00 - - - 1 004 000.00 196 030.31 64 Utilities 1 113.90 105 529.65 112 700.00 - 42 979.91 48 300.00 - - - 161 000.00 12 490.44 65 Professional Develo ment - 4 067.04 11 200.00 - 1 743.02 4 800.00 - - - 16 000.00 10 189.94 67 Other 229.55 4 336.62 4 200.00 - - 1 800.00 - - - 6 000.00 1 663.38 Pro ram: 3300 - Customer Service Total: 75 795.84 1 248 194.91 1 548 400.00 31 907.87 531 613.94 663 600.00 - - - 2 212 000.00 432 191.15 - - - - - -Pro ram: 3400 - Meter Services - - - - - - 51 Labor 13 168.00 141 514.02 181 000.00 - - - - - - 181 000.00 39 485.98 53 Overtime - 2 499.87 6 000.00 - - - - - - 6 000.00 3 500.13 56 Benefits 5 748.62 83 630.66 104 000.00 - - - - - - 104 000.00 20 369.34 62 Materials and Su lies - - 4 000.00 - - - - - - 4 000.00 4 000.00 63 Contract Services 147.15 7 678.02 8 000.00 - - - - - - 8 000.00 321.98 64 Utilities 1 667.77 3 479.81 3 000.00 - - - - - - 3 000.00 479.81 65 Professional Develo ment - - - - - - - - - - - Pro ram: 3400 - Meter Services Total: 20 731.54 238 802.38 306 000.00 - - - - - - 306 000.00 67 197.62 - - - - - -Pro ram: 4000 - En ineerin - - - - - - 51 Labor 32 541.00 342 272.82 460 600.00 13 946.20 146 259.92 197 400.00 - - - 658 000.00 169 467.26 52 Tem orar Labor - - 101 500.00 - - 43 500.00 - - - 145 000.00 145 000.00 53 Overtime - - - - - - - - - - - 56 Benefits 7 966.65 78 261.52 107 800.00 3 413.94 33 553.16 46 200.00 - - - 154 000.00 42 185.32 62 Materials and Su lies - 295.43 4 200.00 - 126.61 1 800.00 - - - 6 000.00 5 577.96 63 Contract Services 5 136.00 55 914.65 135 100.00 - 8 604.58 57 900.00 - - - 193 000.00 128 480.77 64 Utilities 141.52 33 852.75 33 600.00 60.65 22 023.47 29 400.00 - - - 63 000.00 7 123.78 65 Professional Develo ment - 7 078.34 11 900.00 - 3 033.58 5 100.00 - - - 17 000.00 6 888.08 Pro ram: 4000 - En ineerin Total: 45 785.17 517 675.51 854 700.00 17 420.79 213 601.32 381 300.00 - - - 1 236 000.00 504 723.17 - - - - - -Pro ram: 5000 - Water Production - - - - - - 51 Labor 63 712.79 666 892.85 884 000.00 - - - - - - 884 000.00 217 107.15 53 Overtime 7 113.97 70 725.29 92 000.00 - - - - - - 92 000.00 21 274.71 54 Standb 2 955.36 30 836.91 47 000.00 - - - - - - 47 000.00 16 163.09 56 Benefits 19 338.29 322 110.02 396 000.00 - - - - - - 396 000.00 73 889.98 61 Water Su l - 363 797.94 833 000.00 - - - - - - 833 000.00 469 202.06 62 Materials and Su lies 30 454.59 211 996.02 288 000.00 - - - - - - 288 000.00 76 003.98 63 Contract Services 225 801.34 751 720.55 535 000.00 - - - - - - 535 000.00 216 720.55 64 Utilities 972.07 1 711 098.81 3 099 000.00 - - - - - - 3 099 000.00 1 387 901.19 65 Professional Develo ment 5 940.79 8 899.10 11 000.00 - - - - - - 11 000.00 2 100.90 Pro ram: 5000 - Water Production Total: 356 289.20 4 138 077.49 6 185 000.00 - - - - - - 6 185 000.00 2 046 922.51 - - - - - -Pro ram: 5100 - Water Treatment - - - - - - 51 Labor 22 012.80 232 259.41 304 000.00 - - - - - - 304 000.00 71 740.59 53 Overtime 1 892.01 20 865.74 39 000.00 - - - - - - 39 000.00 18 134.26 56 Benefits 6 523.29 153 384.52 179 000.00 - - - - - - 179 000.00 25 615.48 62 Materials and Su lies 19 933.24 334 694.73 280 000.00 - - - - - - 280 000.00 54 694.73 63 Contract Services 58 203.03 348 197.45 564 000.00 - - - - - - 564 000.00 215 802.55 64 Utilities 9 130.21 137 655.73 243 000.00 - - - - - - 243 000.00 105 344.27 Pro ram: 5100 - Water Treatment Total: 117 694.58 1 227 057.58 1 609 000.00 - - - - - - 1 609 000.00 381 942.42 - - - - - -Pro ram: 5200 - Water ualit - - - - - - 51 Labor 19 790.40 187 560.01 279 000.00 - - - - - - 279 000.00 91 439.99 53 Overtime 71.82 2 412.29 12 000.00 - - - - - - 12 000.00 9 587.71 56 Benefits 4 811.49 85 453.80 102 000.00 - - - - - - 102 000.00 16 546.20 62 Materials and Su lies 1 355.04 14 354.59 25 000.00 - - - - - - 25 000.00 10 645.41 63 Contract Services 534.60 109 142.91 178 000.00 - - - - - - 178 000.00 68 857.09 64 Utilities - 193.33 2 000.00 - - - - - - 2 000.00 1 806.67 65 Professional Develo ment - 1 926.51 4 000.00 - - - - - - 4 000.00 2 073.49 Pro ram: 5200 - Water ualit Total: 26 563.35 401 043.44 602 000.00 - - - - - - 602 000.00 200 956.56 - - - - - - Page 5 of 6 ADOPTED ADOPTED ADOPTED ADOPTED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended A ril 30, 2025 Unaudited Pro ram Ex ense Detail Bud et-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Pro ram: 6000 - Maintenance Administration - - - - - - 51 Labor 14 795.64 157 244.78 196 200.00 1 643.96 17 966.34 21 800.00 - - - 218 000.00 42 788.88 52 Tem orar Labor - - - - - - - - - - - 53 Overtime 100.76 705.35 1 800.00 11.20 78.37 200.00 - - - 2 000.00 1 216.28 54 Standb 2 896.13 39 171.25 40 500.00 321.79 3 872.12 4 500.00 - - - 45 000.00 1 956.63 56 Benefits 6 478.08 100 322.81 118 800.00 719.60 11 130.31 13 200.00 - - - 132 000.00 20 546.88 62 Materials and Su lies - 145.38 2 700.00 - - 300.00 - - - 3 000.00 2 854.62 63 Contract Services 130.29 1 480.05 2 700.00 14.49 382.56 300.00 - - - 3 000.00 1 137.39 64 Utilities 5 287.82 26 091.20 36 000.00 587.54 2 884.06 4 000.00 - - - 40 000.00 11 024.74 65 Professional Develo ment 522.85 11 169.27 20 700.00 - 1 931.02 2 300.00 - - - 23 000.00 9 899.71 67 Other - 4 228.85 - - 4 228.85 Pro ram: 6000 - Maintenance Administration Total: 30 211.57 332 101.24 419 400.00 3 298.58 38 244.78 46 600.00 - - - 466 000.00 95 653.98 - - - - - -Pro ram: 6100 - Water Maintenance - - - - - - 51 Labor 62 269.80 904 179.40 1 280 000.00 - - - - - - 1 280 000.00 375 820.60 53 Overtime 33 572.96 354 093.99 435 000.00 - - - - - - 435 000.00 80 906.01 56 Benefits 36 504.64 538 184.00 630 000.00 - - - - - - 630 000.00 91 816.00 62 Materials and Su lies 101 066.00 640 161.87 947 000.00 - - - - - - 947 000.00 306 838.13 63 Contract Services 54 460.98 439 931.72 635 000.00 - - - - - - 635 000.00 195 068.28 64 Utilities - 2.97 - - - - - - - - 2.97 Pro ram: 6100 - Water Maintenance Total: 287 874.38 2 876 553.95 3 927 000.00 - - - - - - 3 927 000.00 1 050 446.05 - - - - - -Pro ram: 6200 - Wastewater Collection - - - - - - 51 Labor - - - 28 816.94 293 677.80 396 000.00 - - - 396 000.00 102 322.20 53 Overtime - - - 3 892.04 11 871.86 9 000.00 - - - 9 000.00 2 871.86 56 Benefits - - - 10 117.78 127 299.55 177 000.00 - - - 177 000.00 49 700.45 62 Materials and Su lies - - - - 39 680.44 42 250.00 - - - 42 250.00 2 569.56 63 Contract Services - - - - 173 529.22 337 750.00 - - - 337 750.00 164 220.78 64 Utilities - - - - - - - - - - - 65 Professional Develo ment - - - - 80.00 - - - - - 80.00 Pro ram: 6200 - Wastewater Collection Total: - - - 42 826.76 646 138.87 962 000.00 - - - 962 000.00 315 861.13 - - - - - -Pro ram: 6300 - Water Reclamation - - - - - - 51 Labor - - - - - - 76 422.50 795 168.43 1 000 000.00 1 000 000.00 204 831.57 52 Tem orar Labor - - - - - - 3 742.54 63 147.62 143 000.00 143 000.00 79 852.38 53 Overtime - - - - - - 18 598.27 291 806.35 310 000.00 310 000.00 18 193.65 54 Standb - - - - - - 6 403.32 66 267.20 65 000.00 65 000.00 1 267.20 56 Benefits - - - - - - 27 800.69 391 791.73 448 000.00 448 000.00 56 208.27 62 Materials and Su lies - - - - - - 18 474.57 678 260.70 335 000.00 335 000.00 343 260.70 63 Contract Services - - - - - - 94 433.77 2 997 098.40 5 943 000.00 5 943 000.00 2 945 901.60 64 Utilities - - - - - - 227 358.04 2 539 765.56 2 481 000.00 2 481 000.00 58 765.56 65 Professional Develo ment - - - - - - 1 465.57 13 919.60 12 000.00 12 000.00 1 919.60 Pro ram: 6300 - Water Reclamation Total: - - - - - - 474 699.27 7 837 225.59 10 737 000.00 10 737 000.00 2 899 774.41 - - - - - -Pro ram: 7000 - Facilities Maintenance - - - - - - 51 Labor 12 052.03 128 233.81 212 800.00 5 165.17 54 796.83 91 200.00 - - - 304 000.00 120 969.36 53 Overtime 943.67 8 929.59 9 800.00 404.44 3 826.98 4 200.00 - - - 14 000.00 1 243.43 56 Benefits 4 542.98 75 620.65 113 400.00 1 946.87 32 468.18 48 600.00 - - - 162 000.00 53 911.17 62 Materials and Su lies 16 158.88 71 057.61 42 000.00 5 738.42 34 939.94 18 000.00 - - - 60 000.00 45 997.55 63 Contract Services 64 215.57 897 333.64 872 200.00 22 963.49 330 603.22 373 800.00 - - - 1 246 000.00 18 063.14 64 Utilities 7 915.78 221 042.91 275 100.00 1 937.99 66 111.03 117 900.00 3 048.98 9 058.42 - 393 000.00 96 787.64 65 Professional Develo ment - 623.81 2 100.00 - 21.88 900.00 - - - 3 000.00 2 354.31 Pro ram: 7000 - Facilities Maintenance Total: 105 828.91 1 402 842.02 1 527 400.00 38 156.38 522 768.06 654 600.00 3 048.98 9 058.42 - 2 182 000.00 247 331.50 - - - Pro ram: 7100 - Fleet Maintenance - - - - - - 51 Labor 5 614.56 62 495.52 73 500.00 2 406.24 26 498.08 31 500.00 - - - 105 000.00 16 006.40 53 Overtime 500.06 6 105.87 2 100.00 214.30 2 616.78 900.00 - - - 3 000.00 5 722.65 56 Benefits 2 114.76 21 607.46 22 400.00 906.31 9 193.13 9 600.00 - - - 32 000.00 1 199.41 62 Materials and Su lies 5 573.73 104 510.72 126 000.00 2 388.73 44 714.43 54 000.00 - - - 180 000.00 30 774.85 63 Contract Services 12 496.62 210 287.43 210 700.00 5 355.67 90 123.31 90 300.00 - - - 301 000.00 589.26 64 Utilities 1 204.60 120 151.84 196 700.00 516.26 49 600.20 84 300.00 - - - 281 000.00 111 247.96 65 Professional Develo ment - 204.13 2 800.00 - 87.49 1 200.00 - - - 4 000.00 3 708.38 Pro ram: 7100 - Fleet Maintenance Total: 27 504.33 525 362.97 634 200.00 11 787.51 222 833.42 271 800.00 - - - 906 000.00 157 803.61 - - - Pro ram: 8000 - Ca ital - - - - - 11 Ca ital Assets not bein De reciated - - - - - - - - - - - 71 Debt Service - Princi al 490 000.00 1 620 000.00 1 873 000.00 210 000.00 385 000.00 385 000.00 - 4 211 650.05 4 527 000.00 6 785 000.00 568 349.95 75 Debt Service - Interest 269 675.00 788 441.00 789 000.00 - 96 996.75 97 000.00 - 2 958 548.44 3 204 000.00 4 090 000.00 246 013.81 81 Ca ital Im rovement - 504 835.74 1 328 000.00 - - - - - - 1 328 000.00 823 164.26 82 Ca ital Outla 31 689.02 468 686.57 903 000.00 1 536.33 91 737.47 159 000.00 - 16 437.56 81 000.00 1 143 000.00 566 138.40 83 ccountin Income Add bac - 1 634 835.74 - - 175 000.00 - - 4 211 650.05 - - 6 021 485.79 88 Transfer to Reserves - - - - - - - - - - - 99 Transfer from Reserves - - - - - - - - - - - Pro ram: 8000 - Ca ital Total: 791 364.02 1 747 127.57 4 893 000.00 211 536.33 398 734.22 641 000.00 - 2 974 986.00 7 812 000.00 13 346 000.00 8 225 152.21 Total Surplus (Deficit): (42,637.57)$ 8,209,861.02$ 680,100.00$ 39,206.49$ 1,705,259.90$ 113,900.00$ 2,053,166.79$ 3,406,669.39$ (3,694,000.00)$ (2,900,000.00)$ (16,221,790.31)$ Page 6 of 6 Agenda Item #3c June 25, 20251 Meeting Date: June 25, 2025 1 5 7 7 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Accept and File Investment Transaction Report for Month Ended May 31, 2025 RECOMMENDATION That the Board of Directors accept and file the attached Investment Transaction report for the month ended May 31, 2025. BACKGROUND / ANALYSIS California Government Code §53607 requires the CFO/Treasurer of a public agency to submit a monthly investment transaction report to the Board of Directors (Board) when the Board has delegated to the CFO/Treasurer the authority to invest, reinvest, sell, or exchange securities held in the Agency’s investment portfolio. During May, there were no deposits to, or withdrawals from the Local Agency Investment Fund (LAIF) account, therefore the balance of $18,627,603 remained unchanged. Investments held in the District’s U.S. Bank Custodial Account totaled $16,746,918 at the beginning of May. During the month, earnings added $16,278 to the U.S. Bank account, while fees reduced the balance by $1,000. In addition, the amortization of premiums and accretion of discounts on several different securities added $310 to the adjusted cost basis for the investments, resulting in an account balance at the end of May of $16,762,506. Investment transactions within the U.S. Bank account during May included one maturity of $300,000 and four investment purchases for $1,099,484.38. At the end of May, the account balance was split between a mutual fund balance of $621,762, and federal securities shown on the attached schedule with a total balance of $16,140,743. DISTRICT PILLARS AND STRATEGIES II - Sustainability, Transparency, and Accountability a. Uphold Transparent and Accountable Fiscal and Resource Management REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department. Agenda Item #3c June 25, 20252 Meeting Date: June 25, 2025 1 5 7 7 FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS Investment Transaction Report for Month Ended May 2025 LAIF May 2025 EAST VALLEY WATER DISTRICT Investment Activity Month Ended May 31, 2025 Activity (Book Value) Adjusted Purch Units /Maturity Amort Cost Adjusted Cost Matured /Cost Market Date Issuer CUSIP Yield Face Value Date Total Adjustment 5/1/2025 Purchases Called 5/31/2025 Value 10/18/21 US Treasury Note 91282CAZ4 0.375%500,000 11/30/25 498,860.08 166.52 499,026.60 499,026.60 490,355.00 03/31/21 US Treasury Note (UST0026A 91282CBT7 0.750%500,000 03/31/26 499,029.47 88.76 499,118.23 499,118.23 486,125.00 12/08/23 US Treasury Note 91282CJL6 4.875%500,000 11/30/25 500,388.39 (40.81)500,347.58 500,347.58 501,220.00 12/26/23 US Treasury Note 91282CJS1 4.250%500,000 12/31/25 499,861.11 24.22 499,885.33 499,885.33 499,890.00 12/27/23 US Treasury Note (UST 4326)91282CJP7 4.375%600,000 12/15/26 603,669.68 (173.04)603,496.64 603,496.64 603,234.00 04/22/24 US Treasury Note 91282CJC6 4.625%200,000 10/15/26 199,347.94 30.28 199,378.22 199,378.22 201,540.00 04/05/24 US Treasury Note 91282CKH3 4.500%500,000 03/31/26 499,095.23 69.56 499,164.79 499,164.79 501,195.00 04/10/24 US Treasury Note 91282CJE2 5.000%400,000 10/31/25 399,940.85 399,940.85 399,940.85 400,944.00 4/10 & 4/11 US Treasury Note 91282CKJ9 4.500%800,000 04/15/27 796,262.41 130.66 796,393.07 796,393.07 808,032.00 09/23/24 US Treasury Note 91282CLL3 3.375%500,000 09/15/27 498,843.85 35.04 498,878.89 498,878.89 494,530.00 02/13/25 US Treasury Note 91282CMN8 4.125%200,000 02/15/28 199,609.48 11.00 199,620.48 199,620.48 201,914.00 05/15/25 US Treasury Note 91282CND9 3.625%200,000 05/15/28 -3.37 3.37 299,484.38 299,487.75 299,109.00 07/30/20 FHLMC MTN 3134HAGV9 4.000%500,000 08/27/27 497,143.85 94.73 497,238.58 497,238.58 497,710.00 08/05/20 FHLMC MTN 3134GWMY9 0.625%100,000 08/19/25 100,000.00 100,000.00 100,000.00 99,193.00 04/14/25 FHLMC MTN 3134HBKC4 4.150%100,000 04/17/28 500,000.00 500,000.00 500,000.00 499,145.00 05/07/25 FHLMC MTN 3134HBND9 4.520%300,000 11/07/28 --300,000.00 300,000.00 297,924.00 09/24/24 Federal Home Loan Bank 3130B2UW3 4.000%500,000 06/10/27 500,000.00 500,000.00 500,000.00 497,495.00 08/30/24 Federal Home Loan Bank 3130B2KW4 4.375%400,000 08/27/27 399,964.24 399,964.24 399,964.24 399,216.00 09/23/21 Federal Home Loan Bank 3130APAZ8 1.030%200,000 09/30/26 200,000.00 200,000.00 200,000.00 191,996.00 03/25/21 Federal Home Loan Bank 3130ALUF9 1.000%300,000 03/30/26 300,000.00 300,000.00 300,000.00 291,954.00 03/25/21 Federal Home Loan Bank 3130ALPB4 0.800%300,000 05/30/25 300,000.00 300,000.00 300,000.00 -- 03/29/21 Federal Home Loan Bank 3130ALU93 0.750%200,000 06/30/25 200,000.00 200,000.00 200,000.00 199,442.00 09/17/21 Federal Home Loan Bank 3130AP6M2 1.020%400,000 09/30/26 400,000.00 400,000.00 400,000.00 383,968.00 12/27/23 Federal Home Loan Bank 3130AWLY4 5.125%400,000 06/13/25 400,271.15 (195.92)400,075.23 400,075.23 400,080.00 10/25/24 Federal Home Loan Bank 3130B3G72 4.250%300,000 10/22/27 300,000.00 300,000.00 300,000.00 298,980.00 10/30/24 Federal Home Loan Bank 3130B3JC8 4.310%200,000 10/20/27 200,000.00 200,000.00 200,000.00 199,500.00 10/15/21 Federal Home Loan Bank 3130AKC95 0.550%200,000 10/29/25 199,731.21 44.84 199,776.05 199,776.05 196,942.00 10/15/21 Federal Home Loan Bank 3130APJ55 1.250%300,000 10/26/26 299,998.93 299,998.93 299,998.93 288,462.00 04/10/24 Federal Home Loan Bank 3130B0UQ0 5.000%500,000 04/15/27 500,000.00 500,000.00 500,000.00 501,425.00 04/22/24 Federal Home Loan Bank 3130B13F2 4.910%450,000 11/27/26 450,279.28 (1.54)450,277.74 450,277.74 455,670.00 11/17/21 Federal Farm Credit Bank 3133ENEM8 1.430%200,000 11/23/26 200,000.00 200,000.00 200,000.00 192,584.00 12/20/24 Federal Home Loan Bank 3130B45M9 4.550%300,000 09/12/28 299,068.85 17.22 299,086.07 299,086.07 299,115.00 01/27/25 Federal Home Loan Bank 3130B4R52 4.500%500,000 10/27/28 500,000.00 500,000.00 500,000.00 501,805.00 01/24/25 Federal Home Loan Bank 3130B4SN2 4.500%500,000 07/28/28 500,000.00 500,000.00 500,000.00 500,785.00 02/18/25 Federal Home Loan Bank 3130B54T2 4.550%200,000 08/18/27 200,000.00 200,000.00 200,000.00 199,830.00 02/21/25 Federal Home Loan Bank 3130B4YG0 4.550%200,000 08/14/29 199,682.85 5.19 199,688.04 199,688.04 199,916.00 12/18/24 Federal Home Loan Bank 3130B4BW0 4.500%500,000 06/12/28 500,000.00 500,000.00 500,000.00 500,430.00 03/26/25 Federal Home Loan Bank 3130B5QY7 4.520%500,000 09/24/27 500,000.00 500,000.00 500,000.00 499,650.00 04/16/25 Federal Home Loan Bank 3130B5XT0 4.050%-10/21/27 300,000.00 300,000.00 300,000.00 298,956.00 05/08/25 Federal Home Loan Bank 3130B6CN4 4.125%-05/03/30 --200,000.00 200,000.00 199,316.00 05/22/25 Federal Home Loan Bank 3130B6JZ0 4.250%-05/21/25 --300,000.00 300,000.00 299,922.00 01/16/25 FNMA 3136GA5M7 4.550%300,000 01/13/28 299,940.00 299,940.00 299,940.00 299,790.00 12/20/24 FHLMC MTN 3134HAS61 4.500%400,000 12/17/27 399,960.00 399,960.00 399,960.00 398,996.00 03/31/25 FHLMC MTN 3134HBGK1 4.175%500,000 04/01/27 500,000.00 500,000.00 500,000.00 499,475.00 15,150,000.00 15,340,948.85 310.08 15,341,258.93 1,099,484.38 300,000.00 16,140,743.31 16,077,760.00 Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 June 05, 2025 LAIF Home PMIA Average Monthly Yields EAST VALLEY WATER DISTRICT CHIEF FINANCIAL OFFICER P.O. BOX 3427 SAN BERNARDINO, CA 92413 Account Number: May 2025 Statement Tran Type Definitions Account Summary Total Deposit:0.00 Beginning Balance:18,627,603.27 Total Withdrawal:0.00 Ending Balance:18,627,603.27 6/5/25, 4:02 PM LAIF Regular Monthly Statement https://laifms.treasurer.ca.gov/RegularStatement.aspx 1/1 Agenda Item #3d June 25, 20251 Meeting Date: June 25, 2025 1 5 7 8 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approve April 2025 Disbursements: Accounts payable disbursements for the period include check numbers 265100 through 265271, bank drafts, and ACH payments in the amount of $5,246,914.58 and $526,689.85 for payroll RECOMMENDATION That the Board of Directors approve the District's expense disbursements for the period April 1, 2025 through April 30, 2025 in the amount of $5,773,604.43. BACKGROUND / ANALYSIS The payment register for supplies, materials, services, and payroll for April 2025 is attached for review and approval. This process provides the Board of Directors and the public with an opportunity to review the expenses of the District. Accounts Payable are processed weekly, while payroll is processed bi-weekly. District Policy 7.1 provides the requirements for purchases and contracts and all supporting documents are maintained by the Purchasing Agent. Accounts payable disbursements for the period include check numbers 265100 through 265271, bank drafts, and ACH Payments in the amount of $5,246,914.58 and $526,689.85, for payroll. Significant expenses greater than or equal to $50,000 are further explained below: PAYMENT #VENDOR DESCRIPTION AMOUNT 265101 ADOBE INC.ANNUAL RENEWAL 59,015.04$ 265135 BALFOUR BEATTY INFRASTRUCTURE, INC INVOICE #2 - $93,000.00 LESS $4,650.00 RETENTION FOR THE SNRC MEMBRANE BIO-REACTOR TRAIN 5 (CIP PROJECT); INVOICE #73 AMENDMENT 13 - $798,208.74 AND INVOICE #73 AMENDMENT 14 - $1,138,109.22 FOR THE STERLING NATURAL RESOURCE CENTER (CIP PROJECT) 2,024,667.96$ DFT0005550 FEDERAL PAYROLL TAX 50,520.06$ Agenda Item #3d June 25, 20252 Meeting Date: June 25, 2025 1 5 7 8 DISTRICT PILLARS AND STRATEGIES II - Sustainability, Transparency, and Accountability a. Uphold Transparent and Accountable Fiscal and Resource Management REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department. FISCAL IMPACT This item is funded in the current fiscal year budget. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS April 2025 Payment Register PAYMENT #VENDOR DESCRIPTION AMOUNT 10015625 SYNAGRO - WWT, INC SNRC SLUDGE REMOVAL FOR MARCH 2025 90,351.22$ 265211 SOUTHERN CALIFORNIA EDISON COMPANY ELECTRICITY COSTS DUE MARCH 2025 204,069.37$ 10015636 ANAERGIA TECHNOLOGIES LLC SNRC DIGESTER MAINTENANCE COSTS FOR OCTOBER 2024 65,683.36$ 10015644 GENERAL PUMP COMPANY, INC.PLANT 141 WATER LUBE CONVERSION WELL REHAB 164,873.58$ 265235 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT JPA SETTLEMENT AGREEMENT 2025 700,000.00$ 265258 SAN BERNARDINO COUNTY REGISTER OF VOTERS 2024 BOARD ELECTIONS 57,198.00$ PAYMENT REGISTER APRIL 1, 2025 - APRIL 30, 2025 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 04/02/2025 265100 CHRIS PIEDRA FOR DISTRICT 26 ADVP 23,835.00 04/03/2025 265101 ADOBE INC.59,015.04 04/03/2025 265102 APPLEONE EMPLOYMENT SERVICE 3,032.61 04/03/2025 265103 CHASE TRUCK MOBILE SERVICE 980.00 04/03/2025 265104 CHEM-TECH INTERNATIONAL INC 4,872.40 04/03/2025 265105 CITY OF HIGHLAND 3,375.00 04/03/2025 265106 COLONIAL LIFE, PREMIUM 491.64 04/03/2025 265107 DIRECTV 294.98 04/03/2025 265108 EEC ENVIRONMENTAL 4,829.93 04/03/2025 265109 EVERSOFT, INC 333.14 04/03/2025 265110 EXPERIAN 355.12 04/03/2025 265111 FIRST CHOICE SERVICES 852.73 04/03/2025 265112 IAN JOHNSON 3,850.00 04/03/2025 265114 K & L HARDWARE 67.33 04/03/2025 265115 LLU CENTER FOR HEALTH PROMOTION 6,255.60 04/03/2025 265116 MUNICIPAL MAINTENANCE EQUIPMENT, INC.1,235.43 04/03/2025 265117 ORANGE COUNTY WINWATER WORKS 2,464.78 04/03/2025 265118 O'REILLYS AUTO PARTS 1,264.91 04/03/2025 265119 R. F. MACDONALD CO., LLC 6,465.00 04/03/2025 265120 SOLITUDE LAKE MANAGEMENT LLC 1,376.94 04/03/2025 265121 SOUTHERN CALIFORNIA EDISON COMPANY 12,910.61 04/03/2025 265122 ULINE, INC.2,656.72 04/03/2025 265123 UNIFIRST CORPORATION 2,525.33 04/03/2025 265125 WATER EDUCATION FOUNDATION 2,750.00 04/03/2025 265126 WEB ADVANCED CORPORATION 24,987.50 04/03/2025 265127 WESTERN WATER WORKS SUPPLY CO., INC 4,681.74 04/03/2025 265128 YO FIRE 18,182.83 04/03/2025 265129 ACS SUPPORT 26.00 04/10/2025 265130 ACS SUPPORT 26.00 04/10/2025 265131 AMERICAN FIDELITY ASSURANCE COMPANY 4,587.81 04/10/2025 265132 AMERICAN FIDELITY ASSURANCE COMPANY (FSA)3,115.40 04/10/2025 265133 AMERITAS LIFE INSURANCE CORP (DENTAL)11,723.76 04/10/2025 265134 APPLEONE EMPLOYMENT SERVICE 2,013.93 04/10/2025 265135 BALFOUR BEATTY INFRASTRUCTURE, INC 2,024,667.96 04/10/2025 265136 BURGESS MOVING & STORAGE 478.20 04/10/2025 265137 BURRTEC WASTE/ 5455 INDUSTRIAL PKWY 764.01 04/10/2025 265138 BURRTEC WASTE/ E. 111 MILL ST 365.72 04/10/2025 265139 CHARLES P CROWLEY COMPANY, INC 47,241.34 04/10/2025 265140 CHEM-TECH INTERNATIONAL INC 16,442.04 04/10/2025 265141 CULLIGAN OF ONTARIO 187.93 04/10/2025 265142 EYE MED VISION CARE 1,617.96 04/10/2025 265143 FEDEX 147.95 04/10/2025 265144 HATFIELD BUICK 64.85 04/10/2025 265145 HYDROTECH ELECTRIC 9,350.50 04/10/2025 265146 IAN JOHNSON 2,010.00 04/10/2025 265147 J M ELECTRICAL SERVICES 1,000.00 04/10/2025 265148 K & L HARDWARE 172.19 PAYMENT REGISTER APRIL 1, 2025 - APRIL 30, 2025 Page 1 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 04/10/2025 265149 LOGICALIS, INC 33,590.96 04/10/2025 265150 MAYO MANUFACTURING 2,303.06 04/10/2025 265151 PETE'S ROAD SERVICE INC 1,902.29 04/10/2025 265152 PRO-WEST & ASSOC., INC 4,604.23 04/10/2025 265153 RAPID FIRE SAFETY & SECURITY LLC 441.07 04/10/2025 265154 SO CAL GAS 1,163.00 04/10/2025 265155 SOUTHERN CALIFORNIA EDISON COMPANY 3,430.02 04/10/2025 265156 UNIFIRST CORPORATION 177.06 04/10/2025 265157 UNITED SITE SERVICES OF CALIFORNIA, INC 454.18 04/10/2025 265158 VERIZON CONNECT FLEET USA LLC 508.83 04/10/2025 265159 WESTAIR GASES & EQUIPMENT, INC.118.38 04/10/2025 265160 VELOCITY SERVICES INC 68.89 04/10/2025 265161 ARLENE SANCHEZ 64.51 04/10/2025 265162 MICHAEL REGESTER 117.35 04/10/2025 265163 DON WARD 83.30 04/10/2025 265164 TINA M RODRIGUEZ 30.41 04/10/2025 265165 J/K EXCAVATION & GRADING CO. INC 1,980.68 04/10/2025 265166 TREH PARTNERS XV, LLC 2,032.61 04/10/2025 265167 JONES COVEY GROUP 1,866.64 04/10/2025 265168 W.L. BUTLER CONSTRUCTION INC 2,320.94 04/10/2025 265169 LR JOHNSON CONSTRUCTION 2,176.38 04/10/2025 265170 SUNDANCE BUILDERS CA LLC 1,245.73 04/10/2025 265171 W.L. BUTLER CONSTRUCTION INC 2,341.44 04/10/2025 265172 W.L. BUTLER CONSTRUCTION INC 1,332.84 04/10/2025 265173 W.L. BUTLER CONSTRUCTION INC 1,899.03 04/10/2025 265174 JB BOSTICK, LLC 3,544.50 04/10/2025 265175 TREH PARTNERS XV, LLC 2,410.48 04/10/2025 265176 KENT YANG 216.63 04/10/2025 265177 FAST SIMPLE SOLD LLC 150.00 04/10/2025 265178 MUNAY HOMES LLC 115.23 04/10/2025 265179 HILDA RIVERA 61.26 04/10/2025 265180 TESORO INVESTMENTS INC.51.51 04/10/2025 265181 THE COMMUNITY BUILDING GROUP LLC 86.27 04/10/2025 265182 BRECKENRIDGE PROPERTY FUND 2016 LLC 105.13 04/10/2025 265183 OPENDOOR LABS INC 50.46 04/10/2025 265184 ALALEM TRUST 121.84 04/10/2025 265185 RICHMOND AMERICAN HOMES 215.81 04/10/2025 265186 RENE IRAETA PALACIOS 57.42 04/10/2025 265187 SYNERGIA INVESTMENTS 113.28 04/10/2025 265188 STEVEN SZETO 85.77 04/10/2025 265189 B & J REAL ESTATE INVESTMENTS LLC 106.54 04/10/2025 265190 CENTURY COMMUNITIES OF CALIFORNIA, LLC 134.88 04/10/2025 265191 CENTURY COMMUNITIES OF CALIFORNIA, LLC 122.25 04/10/2025 265192 CENTURY COMMUNITIES OF CALIFORNIA, LLC 230.73 04/17/2025 265193 APPLEONE EMPLOYMENT SERVICE 538.92 04/17/2025 265194 BURRTEC WASTE/ E. 111 MILL ST 2,359.69 04/17/2025 265195 DENTAL HEALTH SERVICES 162.90 04/17/2025 265196 DIRECTV 69.49 04/17/2025 265197 EUCLID MANAGERS, INSURANCE SERVICES INC.240.00 04/17/2025 265198 FIRST CHOICE SERVICES 204.53 04/17/2025 265199 HARPER & ASSOCIATES ENGINEERING, INC 14,160.00 04/17/2025 265200 HATFIELD BUICK 109.24 04/17/2025 265201 IAN JOHNSON 1,170.00 04/17/2025 265202 JAMES LITHO 2,391.80 04/17/2025 265203 K & L HARDWARE 79.91 PAYMENT REGISTER APRIL 1, 2025 - APRIL 30, 2025 Page 2 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 04/17/2025 265204 KONICA MINOLTA BUSINESS SOLUTIONS 636.03 04/17/2025 265205 LOWE'S 689.08 04/17/2025 265206 MAURICIO SALGUERO 200.00 04/17/2025 265207 NICHOLAS HENSCHEL 5,750.00 04/17/2025 265208 O'REILLYS AUTO PARTS 999.86 04/17/2025 265209 RYAN HERCO FLOW SOLUTIONS 279.05 04/17/2025 265210 SO CAL GAS 7,711.06 04/17/2025 265211 SOUTHERN CALIFORNIA EDISON COMPANY 204,069.37 04/17/2025 265212 SPECTRUM 13,242.61 04/17/2025 265213 TRI-CITIES ANSWERING SERVICE & CALL CENTER, INC.852.55 04/17/2025 265214 UNIFIRST CORPORATION 1,928.72 04/17/2025 265216 WEB ADVANCED CORPORATION 2,437.50 04/17/2025 265217 WESTERN WATER WORKS SUPPLY CO., INC 10,774.25 04/17/2025 265218 ZOHO CORPORATION 8,042.00 04/23/2025 265219 CATAMOUNT PROPERTIES 2018 LLC 87.68 04/23/2025 265220 SDF MANAGEMENT LLC 86.27 04/23/2025 265221 SAN BERNARDINO FITNESS LLC 7.58 04/23/2025 265222 CESAR NEGRETE ARIAS 67.45 04/23/2025 265223 JOSE VARGAS 75.00 04/23/2025 265224 BL PORTFOLIO LLC 69.87 04/23/2025 265225 BL PORTFOLIO LLC 133.74 04/23/2025 265226 DB RESIDENTIAL LLC 26.16 04/23/2025 265227 GAO FAMILY TRUST 90.59 04/24/2025 265228 ACS SUPPORT 26.00 04/24/2025 265229 AMERICAN FIDELITY ASSURANCE COMPANY (FSA)1,557.70 04/24/2025 265230 AMERICAN SAFETY SERVICES, INC 765.68 04/24/2025 265231 APPLEONE EMPLOYMENT SERVICE 538.92 04/24/2025 265232 AT&T 47.49 04/24/2025 265233 BURRTEC WASTE/ 5455 INDUSTRIAL PKWY 7,671.31 04/24/2025 265234 CHEM-TECH INTERNATIONAL INC 8,242.68 04/24/2025 265235 CITY OF SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 700,000.00 04/24/2025 265236 COSTIN PUBLIC OUTREACH GROUP, INC 1,482.50 04/24/2025 265237 DIRECTV 105.54 04/24/2025 265238 ENGINEERING RESOURCES 20,021.65 04/24/2025 265239 FIRST CHOICE SERVICES 45.00 04/24/2025 265240 HEALTH AND HUMAN RESOURCE CENTER INC.121.50 04/24/2025 265241 IAN JOHNSON 1,600.00 04/24/2025 265242 INLAND LIGHTING SUPPLIES, INC 2,769.18 04/24/2025 265243 ISABEL HERNANDEZ 1,100.00 04/24/2025 265244 JAMES LITHO 2,391.80 04/24/2025 265245 JOVENVILLE LLC 590.05 04/24/2025 265246 JUAN D. BASOLS 3.00 04/24/2025 265247 K & L HARDWARE 61.42 04/24/2025 265249 KONICA MINOLTA BUSINESS SOLUTIONS 74.18 04/24/2025 265250 LA VERNE POWER EQUIPMENT, INC.25.00 04/24/2025 265251 MIDWEST MOTOR SUPPLY CO INC 1,730.39 04/24/2025 265252 MISSIONSQUARE RETIREMENT 250.00 04/24/2025 265253 MOVINFORWARD MARKETING LLC 2,581.40 04/24/2025 265254 NAVIGATING PREPAREDNESS ASSOCIATES LLC 32,325.00 04/24/2025 265255 ORANGE COUNTY WINWATER WORKS 21,907.95 04/24/2025 265256 O'REILLYS AUTO PARTS 103.26 04/24/2025 265257 RAPID FIRE SAFETY & SECURITY LLC 205.00 04/24/2025 265258 SAN BERNARDINO COUNTY REGISTER OF VOTERS 57,198.00 04/24/2025 265259 SERGIO D. FIERRO 1,860.00 04/24/2025 265260 SHANNON D DICUS, SHERIFF-CORONER 489.49 PAYMENT REGISTER APRIL 1, 2025 - APRIL 30, 2025 Page 3 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 04/24/2025 265261 SOUTHERN CALIFORNIA EDISON COMPANY 9,841.46 04/24/2025 265262 TECHNICAL SYSTEM, INC 10,460.00 04/24/2025 265263 TEXAS LIFE INSURANCE COMPANY 818.86 04/24/2025 265264 TT TECHNOLOGIES INC.1,538.07 04/24/2025 265265 ULINE, INC.250.77 04/24/2025 265266 UNIFIRST CORPORATION 1,734.69 04/24/2025 265268 WATERWISE CONSULTING, INC.3,569.68 04/24/2025 265269 WEB ADVANCED CORPORATION 1,837.50 04/24/2025 265270 WESTERN WATER WORKS SUPPLY CO., INC 25,824.24 04/24/2025 265271 XYLEM DEWATERING SOLUTIONS, INC 28,819.08 04/02/2025 DFT0005542 GLOBAL PAYMENTS 23,659.23 04/03/2025 DFT0005534 STATE DISBURSEMENT UNIT 908.77 04/03/2025 DFT0005543 MERCHANT BANKCD 920.44 04/04/2025 DFT0005535 CA SDI TAX 5,101.34 04/04/2025 DFT0005536 CALPERS/ DEFERRED COMPENSATION 26,544.28 04/04/2025 DFT0005537 CALPERS/ RETIREMENT 64,081.25 04/04/2025 DFT0005538 FEDERAL PAYROLL TAX 43,546.16 04/04/2025 DFT0005539 MEDICARE 12,345.22 04/04/2025 DFT0005540 SOCIAL SECURITY 1,535.24 04/04/2025 DFT0005541 STATE PAYROLL TAX 17,056.28 04/08/2025 DFT0005544 PAYNEARME, INC.127.36 04/10/2025 DFT0005569 FORTE, ACH DIRECT INC, ACH FEES 5,542.99 04/11/2025 DFT0005545 CA SDI TAX 4,902.14 04/11/2025 DFT0005546 CALPERS- FRAS 100.26 04/11/2025 DFT0005547 CALPERS/ DEFERRED COMPENSATION 27,411.97 04/11/2025 DFT0005548 CALPERS/ MEDICAL 137,856.83 04/11/2025 DFT0005549 CALPERS/ RETIREMENT 64,613.21 04/11/2025 DFT0005550 FEDERAL PAYROLL TAX 50,520.06 04/11/2025 DFT0005551 MEDICARE 11,857.84 04/11/2025 DFT0005552 SOCIAL SECURITY 186.00 04/11/2025 DFT0005553 STATE DISBURSEMENT UNIT 908.77 04/11/2025 DFT0005554 STATE PAYROLL TAX 20,002.35 04/16/2025 DFT0005555 CALIFORNIA DEPT OF TAX AND FEE ADMIN 2,034.21 04/21/2025 DFT0005568 CBB 2,310.93 04/25/2025 DFT0005556 CA SDI TAX 4,551.63 04/25/2025 DFT0005557 CALPERS/ DEFERRED COMPENSATION 27,608.24 04/25/2025 DFT0005558 CALPERS/ RETIREMENT 64,930.19 04/25/2025 DFT0005559 MEDICARE 11,016.66 04/25/2025 DFT0005560 FEDERAL PAYROLL TAX 44,768.26 04/25/2025 DFT0005561 SOCIAL SECURITY 1,415.30 04/25/2025 DFT0005562 STATE DISBURSEMENT UNIT 908.77 04/25/2025 DFT0005563 STATE PAYROLL TAX 17,820.92 04/30/2025 DFT0005566 CALPERS/ MEDICAL 139,715.72 04/30/2025 DFT0005567 PAYNEARME, INC.384.07 04/03/2025 10015529 ALLISON MECHANICAL, INC 3,236.00 04/03/2025 10015530 AMAZON CAPITAL SERVICES, INC 2,931.69 04/03/2025 10015531 ARCADIS U.S., INC 7,487.50 04/03/2025 10015532 BARRY'S SECURITY SERVICES, INC 15,481.66 04/03/2025 10015533 CALIFORNIA SURVEYING & DRAFTING SUPPLY INC.10,955.00 04/03/2025 10015534 CALIFORNIA TOOL & WELDING SUPPLY 497.01 04/03/2025 10015535 CAROL CALES 639.18 PAYMENT REGISTER APRIL 1, 2025 - APRIL 30, 2025 Page 4 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 04/03/2025 10015536 CLARK PEST CONTROL 174.00 04/03/2025 10015537 CORE & MAIN LP 1,362.44 04/03/2025 10015538 DARIO FREGOSO 408.96 04/03/2025 10015539 DAVID HERNANDEZ 675.20 04/03/2025 10015540 ED KING 850.00 04/03/2025 10015541 ELISEO OCHOA 645.92 04/03/2025 10015542 FERGUSON ENTERPRISES, INC.34,523.37 04/03/2025 10015543 FLEET SERVICES /COLTON TRUCK 73.05 04/03/2025 10015544 GENESIS INDUSTRIAL SUPPLY, INC 1,032.59 04/03/2025 10015545 GRAINGER 1,082.00 04/03/2025 10015546 JC LAW FIRM 4,189.71 04/03/2025 10015547 JOHN MURA 741.56 04/03/2025 10015548 JOSE MILLAN 4,860.00 04/03/2025 10015549 KRIEGER & STEWART, INCORPORATED 1,541.92 04/03/2025 10015550 LANDS END INC 355.56 04/03/2025 10015551 LINCOLN NATIONAL LIFE INS CO.1,305.43 04/03/2025 10015552 MANAGED MOBILE, INC.13,150.89 04/03/2025 10015555 MARVIN'S MOBILE TRUCK WASH 1,060.00 04/03/2025 10015556 MCMASTER-CARR 878.81 04/03/2025 10015557 MIKE J. ROQUET CONSTRUCTION INC 12,259.92 04/03/2025 10015558 MINUTEMAN PRESS OF RANCHO CUCAMONGA 3,145.54 04/03/2025 10015559 MOBILE OCCUPATIONAL SERVICES, INC 95.00 04/03/2025 10015561 REBECCA KASTEN 708.40 04/03/2025 10015562 RICHARD BECERRA 741.56 04/03/2025 10015563 SAFETY COMPLIANCE COMPANY 600.00 04/03/2025 10015564 SCN, SECURITY COMMUNICATION NETWORK, INC 105.00 04/03/2025 10015565 STAPLES BUSINESS ADVANTAGE 292.77 04/03/2025 10015566 TSR PERFORMANCE 992.41 04/03/2025 10015567 TYLER TECHNOLOGIES, INC 616.25 04/03/2025 10015568 USA BLUE BOOK, HD SUPPLY FACILITIES MAINT, LTD 464.57 04/03/2025 10015569 VISTA PAINTS 54.05 04/03/2025 10015570 VULCAN MATERIALS CO/ CALMAT CO 3,616.82 04/03/2025 10015571 WAXIE SANITARY SUPPLY 50.43 04/03/2025 10015572 WESTBROOK FENCE, INC 10,464.00 04/03/2025 10015573 YAHWEH POOLS 250.00 04/03/2025 10015574 YORK EMPLOYMENT SERVICES, INC.1,727.33 04/03/2025 10015575 EVWD EMPLOYEES EVENTS ASSOC 386.16 04/10/2025 10015576 ADVANCED TELEMETRY SYSTEMS INTERNATIONAL, INC.6,700.00 04/10/2025 10015577 AMAZON CAPITAL SERVICES, INC 214.11 04/10/2025 10015578 ASHOK K. DHINGRA, AKD CONSULTING 3,660.00 04/10/2025 10015579 BARRY'S SECURITY SERVICES, INC 7,767.91 04/10/2025 10015580 BOOT BARN, INC 702.21 04/10/2025 10015581 CLA-VAL CO 9,038.98 04/10/2025 10015582 CLEARFLY COMMUNATIONS 88.72 04/10/2025 10015583 CORE & MAIN LP 150.35 04/10/2025 10015584 CORELOGIC SOLUTIONS, LLC 415.92 04/10/2025 10015585 COUNTY OF SAN BERNARDINO, RECORDER- CLERK 200.00 04/10/2025 10015586 EVWD EMPLOYEES EVENTS ASSOC 300.85 04/10/2025 10015587 FRONTIER COMMUNICATIONS 104.11 04/10/2025 10015588 GRAINGER 82.40 04/10/2025 10015589 INFOSEND, INC 413.44 04/10/2025 10015590 JC LAW FIRM 11,970.00 04/10/2025 10015591 KOPPEL & GRUBER PUBLIC FINANCE 1,880.34 04/10/2025 10015592 LINCOLN NATIONAL LIFE INS CO.1,440.00 04/10/2025 10015593 MANAGED MOBILE, INC.1,744.41 PAYMENT REGISTER APRIL 1, 2025 - APRIL 30, 2025 Page 5 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 04/10/2025 10015594 MIKE J. ROQUET CONSTRUCTION INC 39,079.04 04/10/2025 10015595 NORM TERRY 663.32 04/10/2025 10015596 SDRMA, SPECIAL DISTRICT RISK MGMT 207.76 04/10/2025 10015597 SG CREATIVE, LLC 5,060.00 04/10/2025 10015598 STAPLES BUSINESS ADVANTAGE 69.91 04/10/2025 10015599 STERICYCLE, INC DBA SHRED-IT 182.28 04/10/2025 10015600 TYLER TECHNOLOGIES, INC 39.35 04/10/2025 10015601 UNDERGROUND SERVICE ALERT 598.30 04/10/2025 10015602 VALERO FLEET, WEX BANK 15,613.77 04/10/2025 10015603 VEOLIA WTS ANALYTICAL INSTRUMENTS, INC.9,298.83 04/17/2025 10015604 ADCOMP SYSTEMS, INC 100.00 04/17/2025 10015605 ALLISON MECHANICAL, INC 3,908.90 04/17/2025 10015606 AMAZON CAPITAL SERVICES, INC 3,115.07 04/17/2025 10015607 AMERICAN RENTALS, INC 3,564.79 04/17/2025 10015608 ANTHESIS 11,289.50 04/17/2025 10015609 BARRY'S SECURITY SERVICES, INC 7,785.00 04/17/2025 10015610 CALIFORNIA TOOL & WELDING SUPPLY 942.81 04/17/2025 10015611 CLARK PEST CONTROL 59.00 04/17/2025 10015612 CLA-VAL CO 21,131.77 04/17/2025 10015613 COMPUTERIZED EMBROIDERY COMPANY, INC 5,475.56 04/17/2025 10015614 CORE & MAIN LP 1,792.98 04/17/2025 10015615 FRONTIER COMMUNICATIONS 46.73 04/17/2025 10015616 GENESIS INDUSTRIAL SUPPLY, INC 591.43 04/17/2025 10015617 GRAINGER 2,026.72 04/17/2025 10015618 INDUSTRIAL RUBBER & SUPPLY 60.36 04/17/2025 10015619 MANAGED MOBILE, INC.3,205.89 04/17/2025 10015620 MARVIN'S MOBILE TRUCK WASH 760.00 04/17/2025 10015621 MCMASTER-CARR 1,016.40 04/17/2025 10015622 MIKE J. ROQUET CONSTRUCTION INC 7,885.37 04/17/2025 10015623 PATRICK K. MILROY 49.99 04/17/2025 10015624 STERICYCLE, INC DBA SHRED-IT 179.84 04/17/2025 10015625 SYNAGRO - WWT, INC 90,351.22 04/17/2025 10015626 TSR PERFORMANCE 683.40 04/17/2025 10015627 USA BLUE BOOK, HD SUPPLY FACILITIES MAINT, LTD 887.45 04/17/2025 10015628 VERIZON WIRELESS 2,207.89 04/17/2025 10015629 VULCAN MATERIALS CO/ CALMAT CO 2,238.45 04/17/2025 10015630 YORK EMPLOYMENT SERVICES, INC.1,367.47 04/23/2025 10015631 SHAYLA ANTRIM 341.60 04/24/2025 10015632 ACI PAYMENTS INC.47.25 04/24/2025 10015633 ADCOMP SYSTEMS, INC 319.29 04/24/2025 10015634 ALLISON MECHANICAL, INC 8,615.50 04/24/2025 10015635 AMAZON CAPITAL SERVICES, INC 1,073.39 04/24/2025 10015636 ANAERGIA TECHNOLOGIES LLC 65,683.36 04/24/2025 10015637 ASBCSD 60.00 04/24/2025 10015638 BARRY'S SECURITY SERVICES, INC 7,576.89 04/24/2025 10015639 CLINICAL LAB OF S B 4,681.50 04/24/2025 10015640 CORE & MAIN LP 4,556.52 04/24/2025 10015641 EVWD EMPLOYEES EVENTS ASSOC 393.49 04/24/2025 10015642 FERGUSON ENTERPRISES, INC.10,740.42 04/24/2025 10015643 FRONTIER COMMUNICATIONS 1,268.14 04/24/2025 10015644 GENERAL PUMP COMPANY, INC.164,873.58 04/24/2025 10015645 GENERAL PUMP COMPANY, INC.1,600.00 04/24/2025 10015646 HARRINGTON INDUSTRIAL PLASTIC 131.28 04/24/2025 10015647 JOSE MILLAN 4,860.00 04/24/2025 10015648 LANDS END INC 363.01 PAYMENT REGISTER APRIL 1, 2025 - APRIL 30, 2025 Page 6 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 04/24/2025 10015649 MANAGED MOBILE, INC.930.79 04/24/2025 10015650 MARLINK INC 468.75 04/24/2025 10015651 MARVIN'S MOBILE TRUCK WASH 985.00 04/24/2025 10015652 MCMASTER-CARR 149.20 04/24/2025 10015653 MIKE J. ROQUET CONSTRUCTION INC 12,453.24 04/24/2025 10015654 MINUTEMAN PRESS OF RANCHO CUCAMONGA 10,726.98 04/24/2025 10015655 MOBILE OCCUPATIONAL SERVICES, INC 89.95 04/24/2025 10015656 SG CREATIVE, LLC 5,635.00 04/24/2025 10015657 TSR PERFORMANCE 259.17 04/24/2025 10015658 WATER SYSTEMS CONSULTING, INC 34,219.42 04/24/2025 10015659 WORK BOOT WAREHOUSE 400.00 04/24/2025 10015660 YORK EMPLOYMENT SERVICES, INC.2,590.99 PAYMENT REGISTER APRIL 1, 2025 - APRIL 30, 2025 Page 7 of 7 Agenda Item #3e June 25, 20251 Meeting Date: June 25, 2025 1 5 7 9 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approve May 2025 Disbursements: Accounts payable disbursements for the period include check numbers 265272 through 265480, bank drafts, and ACH payments in the amount of $3,378,778.89 and $497,803.84 for payroll RECOMMENDATION That the Board of Directors approve the District's expense disbursements for the period May 1, 2025 through May 31, 2025 in the amount of $3,876,582.73. BACKGROUND / ANALYSIS The payment register for supplies, materials, services, and payroll for May 2025 is attached for review and approval. This process provides the Board of Directors and the public with an opportunity to review the expenses of the District. Accounts Payable are processed weekly, while payroll is processed bi-weekly. District Policy 7.1 provides the requirements for purchases and contracts and all supporting documents are maintained by the Purchasing Agent. Accounts payable disbursements for the period include check numbers 265272 through 265480, bank drafts, and ACH Payments in the amount of $3,378,778.89 and $497,803.84, for payroll. Significant expenses greater than or equal to $50,000 are further explained below: PAYMENT #VENDOR DESCRIPTION AMOUNT 10015674 INFOSEND, INC BILL PRINT AND MAILING SERVICES FOR MARCH 2025 52,888.53$ 265272 ADVANCED INDUSTRIAL SERVICES, INC. PLANT 56 REHAB INVOICE $182,250.00 - LESS RETENTION $9,112.50 173,137.50$ 10015688 ANAERGIA TECHNOLOGIES LLC SNRC DIGESTER MAINTENANCE COSTS FOR FEBRUARY 2025 213,398.99$ Agenda Item #3e June 25, 20252 Meeting Date: June 25, 2025 1 5 7 9 DISTRICT PILLARS AND STRATEGIES II - Sustainability, Transparency, and Accountability a. Uphold Transparent and Accountable Fiscal and Resource Management REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department. FISCAL IMPACT This item is funded in the current fiscal year budget. PAYMENT #VENDOR DESCRIPTION AMOUNT 10015734 BORDEN EXCAVATING, INC. LITTLE 3RD & LITTLE TIPPECANOE WATER MAIN RELOCATION RETENTION PAYMENT (CIP PROJECT) 70,315.53$ 265377 NORTH FORK WATER CO NFWC ASSESSMENTS FOR FY 2025-26 168,048.50$ 265381 SOUTHERN CALIFORNIA EDISON COMPANY ELECTRICITY COSTS DUE APRIL 2025 213,554.62$ 10015775 MIKE J. ROQUET CONSTRUCTION INC ASPHALT REPAIRS, OAKRIDGE OVERLAY PAVE 64,066.75$ 10015781 WATER SYSTEMS CONSULTING, INC DRINKING WATER SOURCE ASSESSMENT UPDATES APRIL 2025; PLANT 129 WELL DEVELOPMENT 72,163.25$ 265423 SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT UPPER SAR HCP STUDIES FOR SNRC 436,049.74$ 10015792 MERLIN JOHNSON CONSTRUCTION PLUNGE CREEK REPAIR (CIP PROJECT) 66,500.00$ 10015793 NOR-CAL PUMP & WELL DRILLING, INC. WELL NO 129 DRILLING CONSTRUCTION (CIP PROJECT)236,499.50$ 10015795 SYNAGRO - WWT, INC SNRC SLUDGE REMOVAL FOR APRIL 2025 70,936.23$ Agenda Item #3e June 25, 20253 Meeting Date: June 25, 2025 1 5 7 9 Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS May 2025 Payment Register PAYMENT REGISTER MAY 1, 2025 - MAY 31, 2025 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 05/01/2025 265272 ADVANCED INDUSTRIAL SERVICES, INC.173,137.50 05/01/2025 265273 AMERITAS LIFE INSURANCE CORP (DENTAL)11,770.08 05/01/2025 265274 AT&T 3,291.56 05/01/2025 265275 AUTOZONE PARTS 296.87 05/01/2025 265276 CHEM-TECH INTERNATIONAL INC 4,826.77 05/01/2025 265277 COLONIAL LIFE, PREMIUM 491.64 05/01/2025 265278 DIRECTV 294.98 05/01/2025 265279 EVERSOFT, INC 332.14 05/01/2025 265280 EXPERIAN 355.60 05/01/2025 265281 FIELDMAN, ROLAPP & ASSOCIATES, INC 1,750.00 05/01/2025 265282 HERNANDEZ KROONE & ASSOCIATES, INC 25,126.50 05/01/2025 265283 IAN JOHNSON 2,145.98 05/01/2025 265284 INTERSTATE BATTERY 216.96 05/01/2025 265285 JOVENVILLE LLC 470.35 05/01/2025 265286 K & L HARDWARE 44.37 05/01/2025 265287 METROPOLITAN LIFE INS CO 70.14 05/01/2025 265288 ORANGE COUNTY WINWATER WORKS 2,132.21 05/01/2025 265289 O'REILLYS AUTO PARTS 358.21 05/01/2025 265290 RYAN HERCO FLOW SOLUTIONS 813.23 05/01/2025 265291 SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT 465.00 05/01/2025 265292 STEP SAVER, INC 3,313.25 05/01/2025 265293 UNIVAR SOLUTIONS USA, INC 11,434.50 05/01/2025 265294 US BANCORP SERVICE CENTER 39,742.06 05/01/2025 265299 WEST COAST COMMERCIAL AIR GOLDEN STATE COMPRESSOR, 502.46 05/02/2025 265301 NAVIGATING PREPAREDNESS ASSOCIATES LLC 24,656.25 05/08/2025 265302 ACS SUPPORT 26.00 05/08/2025 265303 AMERICAN FIDELITY ASSURANCE COMPANY 4,587.81 05/08/2025 265304 AMERICAN FIDELITY ASSURANCE COMPANY (FSA)1,557.70 05/08/2025 265305 APPLEONE EMPLOYMENT SERVICE 1,077.84 05/08/2025 265306 BURGESS MOVING & STORAGE 478.20 05/08/2025 265307 BURRTEC WASTE/ 5455 INDUSTRIAL PKWY 1,030.51 05/08/2025 265308 BURRTEC WASTE/ E. 111 MILL ST 365.72 05/08/2025 265309 CHASE TRUCK MOBILE SERVICE 1,750.00 05/08/2025 265310 CHEM-TECH INTERNATIONAL INC 2,394.30 05/08/2025 265311 CITIZENSTRUST 6,226.77 05/08/2025 265312 CULLIGAN OF ONTARIO 182.93 05/08/2025 265313 DXP ENTERPRISES, INC 8,737.87 05/08/2025 265314 EQUIPMENTSHARE.COM INC 6,096.19 05/08/2025 265315 EYE MED VISION CARE 1,564.72 05/08/2025 265316 FIRST CHOICE SERVICES 1,548.06 05/08/2025 265317 HEALTH AND HUMAN RESOURCE CENTER INC.121.50 05/08/2025 265318 IAN JOHNSON 669.39 05/08/2025 265319 K & L HARDWARE 57.69 05/08/2025 265320 PTC INC.1,137.00 05/08/2025 265321 R. F. MACDONALD CO., LLC 6,465.00 05/08/2025 265322 RYAN HERCO FLOW SOLUTIONS 115.54 PAYMENT REGISTER MAY 1, 2025 - MAY 31, 2025 Page 1 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 05/08/2025 265323 SHANNON D DICUS, SHERIFF-CORONER 489.49 05/08/2025 265324 SIEMENS INDUSTRY INC 217.66 05/08/2025 265325 SO CAL GAS 7,726.69 05/08/2025 265326 SOLITUDE LAKE MANAGEMENT LLC 1,376.94 05/08/2025 265327 SOUTH COAST A Q M D 502.41 05/08/2025 265328 TRUSSELL TECHNOLOGIES.INC 36,390.00 05/08/2025 265329 UNITED SITE SERVICES OF CALIFORNIA, INC 454.18 05/08/2025 265330 WATERWISE CONSULTING, INC.3,982.65 05/08/2025 265331 WESTERN WATER WORKS SUPPLY CO., INC 622.26 05/08/2025 265332 YO FIRE 370.66 05/08/2025 265333 ABUL-KASSEM DAVOODI 138.00 05/08/2025 265334 AMANDA GIDEON-FRIEND 150.00 05/08/2025 265335 ANGELITO ESTACIO 100.00 05/08/2025 265336 AZRI MUKIJAN 150.00 05/08/2025 265337 CLIVE SHAVER 125.00 05/08/2025 265338 DIRCK BLASKEY 100.00 05/08/2025 265339 FRANCES CARTER 100.00 05/08/2025 265340 FRANCOISE PRATT 150.00 05/08/2025 265341 HECTOR ALARCON 100.00 05/08/2025 265342 JOHN KING 200.00 05/08/2025 265343 KEN SUTJIONO 150.00 05/08/2025 265344 LILY GOER 200.00 05/08/2025 265345 MIRIAM BISHOP 150.00 05/08/2025 265346 RAMON GARCIA 100.00 05/08/2025 265347 RAYMOND CERVENKA 200.00 05/08/2025 265348 RONALDO ANGUIANO 200.00 05/08/2025 265349 SPENCER SAMARO 200.00 05/08/2025 265350 THERESA HORN 100.00 05/08/2025 265351 VIVIAN DAVIS 150.00 05/08/2025 265352 RICHMOND AMERICAN HOMES 188.70 05/08/2025 265353 RICHMOND AMERICAN HOMES 238.98 05/08/2025 265354 RICHMOND AMERICAN HOMES 207.29 05/08/2025 265355 RICHMOND AMERICAN HOMES 216.78 05/08/2025 265356 LINWOOD YUCAIPA, LLC 210.80 05/08/2025 265357 LINWOOD YUCAIPA, LLC 21.57 05/08/2025 265358 WILLIAM G ROGERS 105.17 05/08/2025 265359 CENTURY COMMUNITIES OF CALIFORNIA, LLC 262.29 05/08/2025 265360 CENTURY COMMUNITIES OF CALIFORNIA, LLC 127.52 05/09/2025 265361 ENGIE INSIGHT SERVICES INC.556.34 05/15/2025 265362 AM CONSERVATION GROUP INC 898.21 05/15/2025 265363 AMERICAN SAFETY SERVICES, INC 468.48 05/15/2025 265364 APPLEONE EMPLOYMENT SERVICE 538.92 05/15/2025 265365 BELL ROOF CO.28,075.00 05/15/2025 265366 CHASE TRUCK MOBILE SERVICE 420.00 05/15/2025 265367 CHEM-TECH INTERNATIONAL INC 5,785.92 05/15/2025 265368 COMMERCIAL GATE CO., INC.1,020.00 05/15/2025 265369 COSTIN PUBLIC OUTREACH GROUP, INC 90.00 05/15/2025 265370 FIRST CHOICE SERVICES 45.00 05/15/2025 265371 HARPER & ASSOCIATES ENGINEERING, INC 20,080.00 05/15/2025 265372 JOVENVILLE LLC 2,514.08 05/15/2025 265373 K & L HARDWARE 35.72 05/15/2025 265374 KONICA MINOLTA BUSINESS SOLUTIONS 325.73 05/15/2025 265375 MAUREEN ERBEZNIK & ASSOCIATES 500.00 05/15/2025 265376 NICHOLAS HENSCHEL 1,250.00 05/15/2025 265377 NORTH FORK WATER CO 168,048.50 PAYMENT REGISTER MAY 1, 2025 - MAY 31, 2025 Page 2 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 05/15/2025 265378 PETTY CASH 290.00 05/15/2025 265379 PRO-WEST & ASSOC., INC 3,516.98 05/15/2025 265380 R. F. MACDONALD CO., LLC 1,980.00 05/15/2025 265381 SOUTHERN CALIFORNIA EDISON COMPANY 213,554.62 05/15/2025 265382 TECHNICAL SYSTEM, INC 3,990.00 05/15/2025 265383 UNIFIRST CORPORATION 182.73 05/15/2025 265384 WESTAIR GASES & EQUIPMENT, INC.115.75 05/15/2025 265385 SAN BERNARDINO COUNTY PROBATION DEPT.150.00 05/15/2025 265387 D.R. HORTON 58.36 05/15/2025 265388 D.R. HORTON 83.17 05/15/2025 265389 D.R. HORTON 76.22 05/15/2025 265390 HARDY AND HARPER 2,909.92 05/15/2025 265391 MATICH CORPORATION 3,304.80 05/15/2025 265392 VERDANTAS INC 3,489.53 05/15/2025 265393 EQUITY PREMIUM INVESTMENTS, INC 66.95 05/15/2025 265394 RAY ORTEGA 100.00 05/15/2025 265395 JESSICA LUONG 26.94 05/21/2025 265396 ALEJANDRO L. HERRERA 440.64 05/21/2025 265397 ALTERNATIVE HOSE INC 10.46 05/21/2025 265398 AMERICAN FIDELITY ASSURANCE COMPANY (FSA)1,557.70 05/21/2025 265399 AUTOZONE PARTS 169.05 05/21/2025 265400 BURRTEC WASTE/ E. 111 MILL ST 2,216.21 05/21/2025 265401 C WELLS PIPELINE MATERIALS, INC 1,770.10 05/21/2025 265402 CHASE TRUCK MOBILE SERVICE 2,590.00 05/21/2025 265403 CHEM-TECH INTERNATIONAL INC 4,726.14 05/21/2025 265404 D&H WATER SYSTEMS 2,944.20 05/21/2025 265405 DENTAL HEALTH SERVICES 162.90 05/21/2025 265406 DIRECTV 69.49 05/21/2025 265407 EQUIPMENTSHARE.COM INC 1,849.01 05/21/2025 265408 EUCLID MANAGERS, INSURANCE SERVICES INC.240.00 05/21/2025 265409 FIRST CHOICE SERVICES 45.00 05/21/2025 265410 FULL SPECTRUM PLUMBING, INC.11,104.87 05/21/2025 265411 GNA FIRE ELECTRIC, INC.500.00 05/21/2025 265412 GREEN MEDIA CREATIONS, INC 2,634.85 05/21/2025 265413 HYDROTECH ELECTRIC 4,603.38 05/21/2025 265414 I INLAND (KENWORTH (US) INC.)1,268.67 05/21/2025 265415 JOVENVILLE LLC 989.41 05/21/2025 265416 K & L HARDWARE 43.04 05/21/2025 265417 KONICA MINOLTA BUSINESS SOLUTIONS 176.44 05/21/2025 265418 LOGICALIS, INC 5,121.10 05/21/2025 265419 MANDI L NELSON 1,000.00 05/21/2025 265420 NAVIGATING PREPAREDNESS ASSOCIATES LLC 4,105.00 05/21/2025 265421 O'REILLYS AUTO PARTS 812.86 05/21/2025 265422 RCS SAFETY, LLC 2,097.20 05/21/2025 265423 SAN BERNARDINO VALLEY MUNICIPAL WATER DISTRICT 436,049.74 05/21/2025 265424 SITEONE LANDSCAPE SUPPLY , LLC 455.60 05/21/2025 265425 SOUTHERN CALIFORNIA EDISON COMPANY 11,596.43 05/21/2025 265426 SPECTRUM 13,232.53 05/21/2025 265427 TEXAS LIFE INSURANCE COMPANY 818.86 05/21/2025 265428 TRI-CITIES ANSWERING SERVICE & CALL CENTER, INC.852.55 05/21/2025 265429 ULINE, INC.849.04 05/21/2025 265430 UNIFIRST CORPORATION 3,181.61 05/21/2025 265434 US BANCORP SERVICE CENTER 48,940.47 05/21/2025 265438 US PURE WATER CORP 6,851.79 05/21/2025 265439 VERIZON CONNECT FLEET USA LLC 914.72 PAYMENT REGISTER MAY 1, 2025 - MAY 31, 2025 Page 3 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 05/21/2025 265440 WEB ADVANCED CORPORATION 8,725.00 05/21/2025 265441 WESTERN WATER WORKS SUPPLY CO., INC 5,207.12 05/21/2025 265442 ROSA CERVANTES 30.47 05/21/2025 265443 MIGUEL ANGEL RESENDIZ 16.42 05/21/2025 265444 MARCIA SOLANO 150.00 05/21/2025 265445 FARIAS INVESTMENTS LLC 88.91 05/21/2025 265446 LUROX INC 150.98 05/21/2025 265447 YANG 88 ENTERPRISES LLC 578.82 05/21/2025 265448 JUANA TERRAZAS 4.16 05/21/2025 265449 ANNA WONG 200.00 05/21/2025 265450 BRETT COPELAND 100.00 05/21/2025 265451 DAN-LEO VICTORIO 150.00 05/21/2025 265452 DOLORES MORENO 100.00 05/21/2025 265453 JAMES GARLAND 100.00 05/21/2025 265454 JEFF SAKS 119.98 05/21/2025 265455 JUNG HONG 200.00 05/21/2025 265456 LISA AND DARRELL FALCONE 150.00 05/21/2025 265457 MARIA LUNA 230.00 05/21/2025 265458 MYA LEE 200.00 05/21/2025 265459 VIRGINIA BERGANZA 150.00 05/21/2025 265460 WESLEY LUK 94.00 05/21/2025 265461 WILLEM & BRENDA REYES 150.00 05/21/2025 265462 FRENETTE ELLIS 650.00 05/21/2025 265463 SAN BERNARDINO CITY USD 150.00 05/21/2025 265464 TERESA RAMOS 626.25 05/21/2025 265465 ACS SUPPORT 26.00 05/21/2025 265466 SHANNON D DICUS, SHERIFF-CORONER 489.49 05/28/2025 265468 ARIZONA PIPELINE CO 392.29 05/28/2025 265469 ARIZONA PIPELINE CO 2,149.79 05/28/2025 265470 RAYMOND & DELIA RUBALCABA 211.30 05/29/2025 265471 AMERITAS LIFE INSURANCE CORP (DENTAL)11,770.08 05/29/2025 265472 APPLEONE EMPLOYMENT SERVICE 1,107.24 05/29/2025 265473 AT&T 3,239.84 05/29/2025 265474 CHEM-TECH INTERNATIONAL INC 857.32 05/29/2025 265475 COLONIAL LIFE, PREMIUM 491.64 05/29/2025 265476 DIRECTV 99.29 05/29/2025 265477 LOWE'S 1,789.39 05/29/2025 265478 METROPOLITAN LIFE INS CO 70.14 05/29/2025 265479 SIEMENS INDUSTRY INC 6,567.36 05/29/2025 265480 SWRCB-DWOCP 70.00 05/02/2025 DFT0005580 GLOBAL PAYMENTS 24,709.25 05/05/2025 DFT0005579 MERCHANT BANKCD 1,026.73 05/09/2025 DFT0005570 CA SDI TAX 4,288.59 05/09/2025 DFT0005571 CALPERS/ DEFERRED COMPENSATION 27,377.47 05/09/2025 DFT0005572 CALPERS/ RETIREMENT 64,968.74 05/09/2025 DFT0005573 MEDICARE 10,375.06 05/09/2025 DFT0005574 SOCIAL SECURITY 186.00 05/09/2025 DFT0005575 STATE DISBURSEMENT UNIT 908.77 05/09/2025 DFT0005576 STATE PAYROLL TAX 16,192.62 05/09/2025 DFT0005577 FEDERAL PAYROLL TAX 41,265.07 05/12/2025 DFT0005596 FORTE, ACH DIRECT INC, ACH FEES 5,247.38 05/14/2025 DFT0005578 PAYNEARME, INC.280.59 05/21/2025 DFT0005595 CBB 2,365.84 PAYMENT REGISTER MAY 1, 2025 - MAY 31, 2025 Page 4 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 05/23/2025 DFT0005581 CA SDI TAX 4,584.62 05/23/2025 DFT0005582 CALPERS/ DEFERRED COMPENSATION 27,340.43 05/23/2025 DFT0005583 CALPERS/ RETIREMENT 64,988.82 05/23/2025 DFT0005584 FEDERAL PAYROLL TAX 44,191.02 05/23/2025 DFT0005585 MEDICARE 11,096.54 05/23/2025 DFT0005586 SOCIAL SECURITY 1,569.58 05/23/2025 DFT0005587 STATE DISBURSEMENT UNIT 908.77 05/23/2025 DFT0005588 STATE PAYROLL TAX 17,489.22 05/30/2025 DFT0005590 CALPERS/ MEDICAL 138,785.78 05/30/2025 DFT0005591 CA SDI TAX 71.40 05/30/2025 DFT0005592 FEDERAL PAYROLL TAX 1,014.42 05/30/2025 DFT0005593 MEDICARE 172.56 05/30/2025 DFT0005594 STATE PAYROLL TAX 434.30 05/30/2025 DFT0005597 PAYNEARME, INC.222.88 05/01/2025 10015661 AMAZON CAPITAL SERVICES, INC 54.74 05/01/2025 10015662 BARRY'S SECURITY SERVICES, INC 7,902.20 05/01/2025 10015663 CAROL CALES 639.18 05/01/2025 10015664 CLARK PEST CONTROL 314.00 05/01/2025 10015665 CLA-VAL CO 5,311.12 05/01/2025 10015666 DAVID HERNANDEZ 675.20 05/01/2025 10015667 ED KING 850.00 05/01/2025 10015668 ELISEO OCHOA 645.92 05/01/2025 10015669 EUROFINS EATON ANALYTICAL, INC 32,035.00 05/01/2025 10015670 FERGUSON ENTERPRISES, INC.239.19 05/01/2025 10015671 FRONTIER COMMUNICATIONS 1,117.59 05/01/2025 10015672 GRAINGER 730.34 05/01/2025 10015673 HARRINGTON INDUSTRIAL PLASTIC 251.96 05/01/2025 10015674 INFOSEND, INC 52,888.53 05/01/2025 10015675 JOHN MURA 741.56 05/01/2025 10015676 KRIEGER & STEWART, INCORPORATED 3,427.11 05/01/2025 10015677 LARRY WALKER ASSOCIATES, INC.2,982.90 05/01/2025 10015678 LINCOLN NATIONAL LIFE INS CO.2,727.43 05/01/2025 10015679 MANAGED MOBILE, INC.671.54 05/01/2025 10015680 MIKE J. ROQUET CONSTRUCTION INC 1,754.00 05/01/2025 10015681 NORM TERRY 663.32 05/01/2025 10015682 PSI WATER TECHNOLOGIES 2,344.69 05/01/2025 10015683 REBECCA KASTEN 708.40 05/01/2025 10015684 RESOLUTE 10,000.00 05/01/2025 10015685 RICHARD BECERRA 741.56 05/01/2025 10015686 STAPLES BUSINESS ADVANTAGE 336.97 05/01/2025 10015687 WAXIE SANITARY SUPPLY 576.32 05/02/2025 10015688 ANAERGIA TECHNOLOGIES LLC 213,398.99 05/08/2025 10015689 ADVANCED INDUSTRIAL SOLUTIONS, INC 1,179.14 05/08/2025 10015690 ADVANCED TELEMETRY SYSTEMS INTERNATIONAL, INC.6,700.00 05/08/2025 10015691 ALLISON MECHANICAL, INC 1,224.07 05/08/2025 10015692 AMAZON CAPITAL SERVICES, INC 1,073.59 05/08/2025 10015693 BARRY'S SECURITY SERVICES, INC 7,569.97 05/08/2025 10015694 CALIFORNIA TOOL & WELDING SUPPLY 130.38 05/08/2025 10015695 CLARK PEST CONTROL 250.00 05/08/2025 10015696 CLEARFLY COMMUNATIONS 88.72 05/08/2025 10015697 CORELOGIC SOLUTIONS, LLC 415.92 05/08/2025 10015698 COUNTY OF SAN BERNARDINO, RECORDER- CLERK 300.00 05/08/2025 10015699 EVWD EMPLOYEES EVENTS ASSOC 271.50 PAYMENT REGISTER MAY 1, 2025 - MAY 31, 2025 Page 5 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 05/08/2025 10015700 EZEQUIEL ELECTRIC, INC.3,150.00 05/08/2025 10015701 FERGUSON ENTERPRISES, INC.73.16 05/08/2025 10015702 FLEETCREW, INC.350.00 05/08/2025 10015703 FMB TRUCK OUTFITTERS, INC 923.63 05/08/2025 10015704 GRAINGER 115.54 05/08/2025 10015705 JC LAW FIRM 10,906.43 05/08/2025 10015706 JOSE MILLAN 960.00 05/08/2025 10015707 LESLIE'S POOL SUPPLIES, INC.17.80 05/08/2025 10015708 MARLINK INC 468.75 05/08/2025 10015709 MARVIN'S MOBILE TRUCK WASH 870.00 05/08/2025 10015710 MCMASTER-CARR 102.43 05/08/2025 10015711 MERLIN JOHNSON CONSTRUCTION 2,087.47 05/08/2025 10015712 MIKE J. ROQUET CONSTRUCTION INC 5,635.95 05/08/2025 10015713 MINUTEMAN PRESS OF RANCHO CUCAMONGA 408.66 05/08/2025 10015714 MOBILE OCCUPATIONAL SERVICES, INC 400.00 05/08/2025 10015715 NOVA LANDSCAPE GROUP, INC.477.50 05/08/2025 10015716 QUINN COMPANY 979.11 05/08/2025 10015717 SAFETY KLEEN SYSTEMS, INC.308.00 05/08/2025 10015718 STERICYCLE, INC DBA SHRED-IT 182.28 05/08/2025 10015719 UNDERGROUND SERVICE ALERT 1,242.10 05/08/2025 10015720 VISTA PAINTS 176.86 05/08/2025 10015721 WATER SYSTEMS CONSULTING, INC 1,372.50 05/08/2025 10015722 WAXIE SANITARY SUPPLY 1,391.36 05/08/2025 10015723 WHITE CAP LP 3,639.84 05/08/2025 10015724 WORK BOOT WAREHOUSE 400.00 05/08/2025 10015725 YAHWEH POOLS 250.00 05/08/2025 10015726 YORK EMPLOYMENT SERVICES, INC.2,573.00 05/15/2025 10015727 ALEX LARIOS-RIVAS 47.60 05/15/2025 10015728 ALLISON MECHANICAL, INC 21,676.88 05/15/2025 10015729 AMAZON CAPITAL SERVICES, INC 1,280.10 05/15/2025 10015730 ANTHESIS 14,322.52 05/15/2025 10015731 ASBCSD 75.00 05/15/2025 10015732 BARRY'S SECURITY SERVICES, INC 7,777.67 05/15/2025 10015733 BOOT BARN, INC 1,063.03 05/15/2025 10015734 BORDEN EXCAVATING, INC.70,315.53 05/15/2025 10015735 CLARK PEST CONTROL 140.00 05/15/2025 10015736 COMPUTERIZED EMBROIDERY COMPANY, INC 290.78 05/15/2025 10015737 ECS IMAGING INC.10,482.50 05/15/2025 10015738 EZEQUIEL ELECTRIC, INC.1,350.00 05/15/2025 10015739 FERGUSON ENTERPRISES, INC.44.38 05/15/2025 10015740 GRAINGER 463.11 05/15/2025 10015741 HACH COMPANY 289.91 05/15/2025 10015742 JEREMY SUBRIAR 135.00 05/15/2025 10015743 MIKE J. ROQUET CONSTRUCTION INC 5,906.45 05/15/2025 10015744 MINUTEMAN PRESS OF RANCHO CUCAMONGA 869.86 05/15/2025 10015745 MUSICK, PEELER & GARRETT LLP 2,210.00 05/15/2025 10015746 NOVA LANDSCAPE GROUP, INC.14,805.00 05/15/2025 10015747 SG CREATIVE, LLC 8,165.00 05/15/2025 10015748 STERICYCLE, INC DBA SHRED-IT 177.79 05/15/2025 10015749 VERIZON WIRELESS 15,583.35 05/15/2025 10015751 VISTA PAINTS 117.91 05/15/2025 10015752 WESTBROOK FENCE, INC 1,475.00 05/15/2025 10015753 YORK EMPLOYMENT SERVICES, INC.1,151.55 05/21/2025 10015754 ACI PAYMENTS INC.48.80 05/21/2025 10015755 ADCOMP SYSTEMS, INC 100.00 PAYMENT REGISTER MAY 1, 2025 - MAY 31, 2025 Page 6 of 7 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 05/21/2025 10015756 ADVANCED TELEMETRY SYSTEMS INTERNATIONAL, INC.14,649.32 05/21/2025 10015757 AMAZON CAPITAL SERVICES, INC 2,598.57 05/21/2025 10015758 ARCADIS U.S., INC 47,882.57 05/21/2025 10015759 BARRY'S SECURITY SERVICES, INC 7,342.12 05/21/2025 10015760 CALIFORNIA CLASS 1,000.00 05/21/2025 10015761 CALIFORNIA TOOL & WELDING SUPPLY 46.33 05/21/2025 10015762 CLINICAL LAB OF S B 7,430.25 05/21/2025 10015763 COMPUTERIZED EMBROIDERY COMPANY, INC 97.88 05/21/2025 10015764 CORE & MAIN LP 5,229.33 05/21/2025 10015765 FERGUSON ENTERPRISES, INC.14,923.06 05/21/2025 10015766 FRONTIER COMMUNICATIONS 1,266.47 05/21/2025 10015767 GMC ELECTRICAL, INC 3,600.00 05/21/2025 10015768 GRAINGER 2,023.54 05/21/2025 10015769 INFOSEND, INC 364.55 05/21/2025 10015770 JOSE MILLAN 4,860.00 05/21/2025 10015771 KRIEGER & STEWART, INCORPORATED 7,480.12 05/21/2025 10015772 MANAGED MOBILE, INC.3,687.48 05/21/2025 10015773 MARVIN'S MOBILE TRUCK WASH 2,050.00 05/21/2025 10015774 MCMASTER-CARR 188.95 05/21/2025 10015775 MIKE J. ROQUET CONSTRUCTION INC 64,066.75 05/21/2025 10015776 MINUTEMAN PRESS OF RANCHO CUCAMONGA 4,982.03 05/21/2025 10015777 RESOLUTE 10,000.00 05/21/2025 10015778 VALERO FLEET, WEX BANK 16,203.52 05/21/2025 10015779 VISTA PAINTS 117.91 05/21/2025 10015780 VULCAN MATERIALS CO/ CALMAT CO 11,658.94 05/21/2025 10015781 WATER SYSTEMS CONSULTING, INC 72,163.25 05/21/2025 10015782 EVWD EMPLOYEES EVENTS ASSOC 386.50 05/29/2025 10015783 ADCOMP SYSTEMS, INC 319.29 05/29/2025 10015784 AMAZON CAPITAL SERVICES, INC 1,712.74 05/29/2025 10015785 ASHOK K. DHINGRA, AKD CONSULTING 5,307.00 05/29/2025 10015786 CALIFORNIA TOOL & WELDING SUPPLY 211.38 05/29/2025 10015787 CLINICAL LAB OF S B 16,953.00 05/29/2025 10015788 EUROFINS EATON ANALYTICAL, INC 23,380.00 05/29/2025 10015789 FRONTIER COMMUNICATIONS 965.32 05/29/2025 10015790 LARRY WALKER ASSOCIATES, INC.5,162.50 05/29/2025 10015791 LINCOLN NATIONAL LIFE INS CO.3,203.83 05/29/2025 10015792 MERLIN JOHNSON CONSTRUCTION 66,500.00 05/29/2025 10015793 NOR-CAL PUMP & WELL DRILLING, INC.236,499.50 05/29/2025 10015794 SELECTRON TECHNOLOGIES, INC 44,110.05 05/29/2025 10015795 SYNAGRO - WWT, INC 70,936.23 05/29/2025 10015796 YORK EMPLOYMENT SERVICES, INC.1,499.42 PAYMENT REGISTER MAY 1, 2025 - MAY 31, 2025 Page 7 of 7 Agenda Item #4a June 25, 20251 Meeting Date: June 25, 2025 1 5 7 4 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Adoption of Resolution 2025.03 Approving the Fiscal Year 2025-26 Operating and Capital Budgets RECOMMENDATION That the Board of Directors adopt Resolution 2025.03 approving the Operating and Capital Budgets for Fiscal Year 2025-26. BACKGROUND / ANALYSIS The Fiscal Year (FY) 2025-26 Operating and Capital Budgets have been developed to continue to provide high quality water delivery, wastewater collection, and water reclamation (reclamation) services to District ratepayers. The proposed budget directs the District’s resources towards District Goals and Objectives described in the 5-Year Work Plan adopted by the Board. Many outside drivers such as new tariff regulations, supply chain disruption, and power cost present a challenge to mitigate expenses. The budget is presented by Program; each having stated goals and objectives for the upcoming fiscal year that align with District Goals. The Capital Budget specifically identifies equipment scheduled for replacement or upgrade, and projects from the Capital Improvement Program (CIP) designated as high priority due to age and condition or having insufficient capacity to meet anticipated growth. Revenues: As discussed during the Board workshop on June 11, 2025, Total Revenue projected for FY 2025-26 is $56,889,000, an 8.6% increase over revenue projected for the prior year. Factors affecting revenue projections include: Consumption based on historical trends and rate model assumptions; Meter Charge and Tiered Water Rate increases, effective January 2026; Wastewater Collection and Treatment Rate increases, effective July 2025; Sustained investment earnings levels; and SNRC Non-Rate Revenue – tempered expectations regarding performance of the digesters, and the related effect on tipping fee revenue, and energy cost savings from self-generation efforts. Agenda Item #4a June 25, 20252 Meeting Date: June 25, 2025 1 5 7 4 The FY 2025-26 Operating and Capital Budgets have been developed to continue to provide high quality water delivery, wastewater collection, and water reclamation services to District ratepayers. Expenses: The District accounts for all operating expenses at the program level. Each Program is evaluated on an annual basis to determine its effectiveness. As a result, some programs may be redefined or enhanced, to ensure that they run effectively and with a high level of accountability. FY 2025-26 program expenses are budgeted $43,476,000; a 3.7% increase compared to the prior fiscal year. Agenda Item #4a June 25, 20253 Meeting Date: June 25, 2025 1 5 7 4 Capital Outlay: The Capital Outlay Budget is an effort to plan for the replacement of vehicles and general equipment, office equipment and software, improvements to facilities, and independent studies encompassing long-term infrastructure planning. The objective is to standardize the replacement process to create a managed system of purchasing and funding capital equipment, thereby allowing the District to accurately plan and budget for future needs. There are three service trucks, and a large dump truck budgeted for replacement this year. PROPOSED CAPITAL OUTLAY AMOUNT Computer Hardware / Software 135,000$ Facility Improvements 300,000 Water Quality / Environmental Studies 540,000 Service Trucks / Large Dump Truck 450,000 Equipment Acquistion 245,000 TOTAL CAPITAL OUTLAY 1,670,000$ Capital Improvement Program (CIP): This year’s proposed Capital Improvement Program Budget totals $20,154,000 and focuses on the following: rehabilitation of the two million gallon tank at Plant 140; proactive replacement of a full train of membrane cartridges at Plant 134; improved groundwater production capacity through continued work on a new well at Plant 129 and design of a second new well at the headquarters site; and continuance of a water main replacement program through Federal Emergency Management Agency (FEMA) hazard mitigation grants and/or replacement of undersized mains by in-house crews. Water Replacement Reserve - $6,388,500 Wastewater Replacement Reserve - $122,500 Water Capacity Fees - $3,500,000 Reclamation Capacity Fees - $4,797,000 Water Grants - $5,523,000 Reclamation Grants - $1,493,000 Agenda Item #4a June 25, 20254 Meeting Date: June 25, 2025 1 5 7 4 A summary of the CIP Budget for FY 2025-26, by project type, is shown in the following table: PROPOSED CAPITAL IMPROVEMENT PROJECTS AMOUNT Meter Replacement Program 200,000$ Storage Tank / Reservoir Upgrades & Rehabilitations 1,500,000 Plant 134 Membrane Replacement & Pretreatment Feasibility Study 450,000 Pipeline Upgrades 7,439,000 Plant 129 & 152 Well Design & Contruction 3,950,000 General Facilities Rehabilitations / Relocations 225,000 Plant 39 Warehouse / Storage 100,000 Additional MBR at SNRC 6,140,000 Weaver Basin Shallow Well 150,000 TOTAL CAPITAL IMPROVEMENT PROJECTS 20,154,000$ Debt Service: The District will pay debt service on five debt instruments in FY 2025-26. Net revenues of all three enterprise activities (water, wastewater, and reclamation) are pledged as security for the revenue bonds and the state construction loans for the SNRC, while only water revenues are pledged for repayment of a state loan for improvements to the District’s surface water treatment plant. A preliminary calculation based on budget numbers has resulted in FY 2025-26 debt service coverage of 128%, well in excess of the 120% required by bond documents. DEBT ISSUE INTER EST RATE FY 2025-26 DEBT SERVICE 2020A Refunding Revenue Bonds 3-5% $ 1,100,000 2020B Refunding Revenue Bonds 3-5% 692,000 SWRCB Loan - Treatment Plant 0.00% 234,000 SWRCB Loans - Assessment Districts 0.00% 19,000 SWRCB Loan - SNRC 1.80% 7,731,000 TOTAL $ 9,776,000 Budget Funding: Current year water and wastewater rate revenue will pay for all FY 2025-26 operating expenses and will contribute toward the current year Capital Budget, which includes Agenda Item #4a June 25, 20255 Meeting Date: June 25, 2025 1 5 7 4 Capital Outlay, and year one of the multi-year Capital Improvement Program. Rate revenue will also cover all debt service obligations of the water and wastewater funds, but a one-time incentive payment will be used to supplement rate revenue in the Reclamation fund to pay debt service on the State Revolving Fund loan. EXPENDITURE TYPE WATER FUND WASTEWATER FUND RECLAMATION FUND TOTAL Operating Expenses $ 26,514,000 $ 6,450,000 10,512,000$ 43,476,000$ Debt Service 2,265,000 480,000 7,731,000 10,476,000 Contribution to Capital Replacement Reserves 2,736,000 175,000 26,000 2,937,000 TOTAL $31,515,000 $ 7,105,000 $ 18,269,000 $ 56,889,000 Conclusion: The proposed FY 2025-26 budget balances projected revenues and expenditures, covers all debt service payments, including the first payment on the State loan financing for the Sterling Natural Resource Center, and begins construction on a new well for the first time in over 20 years. The proposed budget maintains the District reserve policies. Throughout the coming year, staff will closely monitor revenues versus Program spending and propose adjustments as necessary to ensure the District’s fiscal sustainability. DISTRICT PILLARS AND STRATEGIES REVIEW BY OTHERS FISCAL IMPACT Agenda Item #4a June 25, 20256 Meeting Date: June 25, 2025 1 5 7 4 Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS Presentation-Draft Budget FY 2025-26 Draft Budget FY 2025-26 Resolution 2025.03 FY 2025-26 Brian Tompkins, Chief Financial Officer June 25, 2025 Operating & Capital Budgets BUDGET PROCESS 2 District Vision 5-Year Work Plan Develop Program Goals & Objectives Establish Key Performance Indicators & Estimate Costs Adopt Budget Monitor Programs & Adjust as Necessary BUDGET SUMMARY: REVENUE 3 REVENUE / SOURCES WATER FUND WASTEWATER FUND RECLAMATION FUND FY 2025-26 TOTAL Water Sales / Wastewater Collection Charges / LRIP $ 18,900,000 $ - $ 1,200,000 $ 20,100,000 Wastewater Treatment Charges - - 13,820,000 13,820,000 System Charges 11,425,000 6,870,000 - 18,295,000 Other Operating Revenue 30,000 5,000 1,109,000 1,144,000 Other Charges and Income 1,160,000 230,000 2,140,000 3,530,000 TOTAL REVENUE / SOURCES $31,515,000 $ 7,105,000 $ 18,269,000 $ 56,889,000 BUDGET SUMMARY: EXPENSES 4 OPERATING EXPENSES WATER FUND WASTEWATER FUND RECLAMATION FUND FY 2025-26 TOTAL Employment Expenses $ 11,188,800 $ 3,032,200 $ 2,254,000 $ 16,475,000 Water Costs 823,000 - - 823,000 Power Costs 3,225,000 - 1,712,000 4,937,000 Materials & Supplies 1,970,400 191,600 2,008,000 4,170,000 Contract Services 8,905,800 3,111,200 4,526,000 16,543,000 Other Operating Expenses 401,000 115,000 12,000 528,000 TOTAL OPERATING EXPENSES $ 26,514,000 $ 6,450,000 $ 10,512,000 $ 43,476,000 OTHER EXPENSES / USES Debt Service $ 2,265,000 $ 480,000 $ 7,731,000 $ 10,476,000 Contribution to Capital Replacement Reserves 2,736,000 175,000 26,000 2,937,000 TOTAL OTHER EXPENSES / USES $ 5,001,000 $ 655,000 $ 7,757,000 $ 13,413,000 TOTAL OPERATING / OTHER EXPENSES / USES $ 31,515,000 $ 7,105,000 $ 18,269,000 $ 56,889,000 NET SURPLUS (DEFICIT) $ - $ - $ - $ - WATER FUND 5 Water Sales $18,900,000 Meter Charges $11,425,000 Other Charges $1,190,000 REVENUE Operations $26,514,000 Debt Service $2,265,000 Capital Replacement Reserves $2,736,000 EXPENDITURES FY 2025-26 Total Water Budget = $31,515,000 WASTEWATER FUND 6 Wastewater Collection $6,870,000 Other Charges $235,000 REVENUE Operations $6,450,000 Debt Service $480,000 Capital Replacement Reserve $175,000 EXPENDITURES FY 2025-26 Total Wastewater Budget = $7,105,000 WATER RECLAMATION FUND 7 Water Sales (LRIP) $1,200,000 Wastewater Treatment Charges $13,820,000 Other Charges $3,249,000 REVENUE Operations $10,512,000 Debt Service $7,731,000 Capital Replacement Reserve $26,000 EXPENDITURES FY 2025-26 Total Water Reclamation Budget = $18,269,000 BUDGET ALLOCATION BY PROGRAM 8 DESCRIPTION WATER FUND WASTEWATER FUND RECLAMATION FUND TOTAL FY 2024-25 BUDGET CHANGE 1000 - Governing Board $ 197,400 $ 84,600 $ - $ 282,000 $ 326,000 -13% 2000 - General Administration 954,600 409,400 - 1,364,000 1,272,000 7% 2100 - Human Resources & Risk Management 2,823,800 1,210,200 - 4,034,000 3,580,000 13% 2200 - Public Affairs 1,141,700 489,300 - 1,631,000 1,513,000 8% 2300 - Conservation 658,000 - - 658,000 631,000 4% 3000 - Finance & Accounting 1,113,700 477,300 - 1,591,000 1,419,000 12% 3200 - Information Technology 1,384,600 593,400 - 1,978,000 1,874,000 6% 3300 - Customer Service 1,666,000 714,000 - 2,380,000 2,212,000 8% 3400 - Meter Services 315,000 - - 315,000 306,000 3% 4000 - Engineering 1,106,000 474,000 - 1,580,000 1,236,000 28% 5000 - Water Production 6,207,000 - - 6,207,000 6,185,000 0% 5100 - Water Treatment 1,735,000 - - 1,735,000 1,609,000 8% 5200 - Water Quality 607,000 - - 607,000 602,000 1% 6000 - Maintenance Admin 443,700 49,300 - 493,000 466,000 6% 6100 - Water Maintenance 3,924,000 - - 3,924,000 3,927,000 0% 6200 - Wastewater Collection - 990,000 - 990,000 962,000 3% 6300 - Water Reclamation - - 10,512,000 10,512,000 10,737,000 -2% 7000 - Facilities Maintenance 1,584,800 679,200 - 2,264,000 2,182,000 4% 7100 - Fleet Maintenance 651,700 279,300 - 931,000 906,000 3% TOTAL $26,514,000 $ 6,450,000 $ 10,512,000 $43,476,000 $41,945,000 4% DEBT SERVICE •Debt Proceeds Used For: •Plant 134 Treatment Upgrade •Administration / Operations Facility •4-Million Gallon Underground Tank •SNRC Water Reclamation Plant •Water Company Annexation 9 2020A Bonds $1,100,000 2020B Bonds $692,000 SRF Loans -Plant 134 $234,000 SRF Loans -Assessment Districts $19,000 SRF Loans -SNRC $7,731,000 FY 2025-26 Total Payments = $9,776,000 CAPITAL BUDGET FUNDING SUMMARY 10 DESCRIPTION WATER FUND WASTEWATER FUND RECLAMATION FUND TOTAL Capital Outlay $ 1,547,500 $ 122,500 $ - $ 1,670,000 Capital Improvement Program 13,864,000 - 6,290,000 20,154,000 TOTAL EXPENDITURES $ 15,411,500 $ 122,500 $ 6,290,000 $ 21,824,000 Capital Replacement Reserve 6,388,500 122,500 - 6,511,000 Capacity Fees 3,500,000 - 4,797,000 8,297,000 Grants / Loans / Other 5,523,000 - 1,493,000 7,016,000 TOTAL SOURCES $ 15,411,500 $ 122,500 $ 6,290,000 $ 21,824,000 AUTHORIZED POSITIONS •Total Full-Time Positions: 79 •Part-Time Positions: 3 •Position Changes: +4 •Information Technology Technician •Water Quality Worker •Field Service Worker I (2) 11 PROGRAM FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 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 4 3300 - Customer Service 7 7 7 3400 - Meter Services 2 2 2 4000 - Engineering 3 3 3 5000 - Water Production 7 7 7 5100 - Water Treatment 2 2 2 5200 - Water Quality 2 2 3 6000 - Maintenance Admin 2 2 2 6100 - Water Maintenance 14 14 16 6200 - Wastewater Collection 4 4 4 6300 - Water Reclamation 8 9 9 7000 - Facilities Maintenance 2 3 3 7100 - Fleet Maintenance 1 1 1 TOTAL 73 75 79 QUESTIONS? Annual Publication of East Valley Water District | Highland, California L E A D E R S H I P | P A R T N E R S H I P | S T E W A R D S H I P fiscal year budget 2025-26 DRAFT Table of Contents Program Descriptions 117 Position Summary Schedule 117 Governing Board 119 General Administration 125 Human Resources & Risk Management 131 Public Affairs 137 Conservation 143 Finance & Accounting 149 Information Technology 155 Customer Service 161 Meter Services 167 Engineering 173 Water Production 179 Water Treatment 185 Water Quality 191 Water Maintenance 197 Wastewater Collection 203 Water Reclamation 209 Facilities Maintenance 215 Fleet Maintenance 221 Program Summaries 115 Capital Budget Overview 229 Capital Outlay 229 CIP 5-Year Schedule 233 Capital Improvement Projects 237 Infrastructure Accomplishments 269 Capital Budget 227 Glossary 273 Acronyms 279 Chart of Accounts 283 Budget Guide 3 Statistical/Supplemental Information 7 District Vision 10 District Pillars & Strategies 11 Organizational Structure 14 5-Year Work Plan 21 Industry Benchmarks 29 Introduction 1 Financial Policies 37 Budget Process 42 Budget Cycle Calendar 45 Basis of Budgeting 46 Fund Structure 46 Fund/Program Relationship 49 Budget Summary 50 Revenue Summary 51 Expenditure Summary 59 Debt Overview 65 Fund Equity and Reserves 71 Long-Range Financial Plan 79 Financial Summary 35 Water Fund 85 Wastewater Fund 97 Water Reclamation Fund 103 Consolidated Financial Schedules 109 Resolution 2025.03 iii Transmittal Letter i L E A D E R S H I P | P A R T N E R S H I P | S T E W A R D S H I P James Morales, Jr. Chairman of the Board Ronald L. Coats Vice Chairman Chris Carrillo Governing Board Member Phillip R. Goodrich Governing Board Member David E. Smith Governing Board Member Michael Moore, P.E. General Manager/CEO 31111 Greenspot Road Highland, CA 92346 (909) 889-9501 eastvalleywater.gov June 25, 2025 Honorable Chairman, Governing Board, District Ratepayers and Community Members: I am pleased to present the Fiscal Year (FY) 2025-26 Annual Budget for East Valley Water District (District). This budget reflects a conservative and disciplined approach, aligning with the District’s long-term strategic priorities while responding to emerging operational and financial challenges. Review of the Past Year Over the past year, the District experienced a return to normalized water sales, providing greater predictability in revenue and planning. Last year marked the first full year of operations at the Sterling Natural Resource Center (SNRC), allowing us to begin stabilizing operating costs following commissioning. The District also advanced the new SNRC biogas energy process and identified the need for expanding the filters to ensure capacity keeps pace with long-term demand. These unplanned capital investments are possible because of the strong financial planning of the District. Outlook for the Year Ahead This year’s budget is shaped by both opportunity and caution. We remain midway through a three-year rate adjustment plan that supports reinvestment in aging infrastructure and system reliability. Key initiatives for FY 2025-26 include creating a pipeline construction crew to reduce reliance on outside contractors, strengthening water supply resiliency through upgrades at our surface water treatment Plant 134, and evaluating the long-term revenue needs of the SNRC. While the budget reflects increased capital investment consistent with the District’s Strategic Plan, we must also account for external headwinds. Uncertainties in future tariff structures and ongoing supply chain challenges may increase the cost of materials, supplies, and outside contractors. The District is developing a plan to mitigate the impacts to operations and capital improvements. Additionally, the cost of financing remains relatively high, and the District may delay issuing debt to fund future capital improvements. Conclusion The District enters this fiscal year with a balanced budget and a strong financial position, even after closing the large financial investment in the SNRC construction project. We will continue to monitor the impact of inflation on operating expenses and adjust as needed to maintain long-term financial sustainability. L E A D E R S H I P | P A R T N E R S H I P | S T E W A R D S H I P This budget reflects a period of stabilization, as we shift from growth to reinvestment—focusing on replacing aging infrastructure, enhancing water resiliency, and delivering on the community-focused priorities set forth in the Board’s Strategic Plan. Yours in Service, Michael Moore, P.E. General Manager/CEO Brian Tompkins Chief Financial Officer Jeff Noelte Director of Engineering & Operations Justine Hendricksen District Clerk DISTRICT MANAGEMENT Kerrie Bryan Director of Administrative Services Manny Moreno Water Reclamation Manager Patrick Milroy Operations Manager Ryan Ritualo IT Manager William Ringland Public Affairs/Conservation Manager ii FY 2025-26 Budget June 25, 2025 I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2025.03 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held June 25, 2025. Michael Moore, P.E. Secretary, Board of Directors ATTEST: Michael Moore, P.E. Secretary, Board of Directors Resolution 2025.03 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 2025-26, 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 2025-26; and Section 2. The provisions of this Resolution shall take effect on July 1, 2025. ADOPTED this 25th day of June 2025. Ayes: Directors: Carrillo, Coats, Goodrich, Morales, Smith Noes: None Abstain: None Absent: None James Morales, Jr. Board President A RESOLUTION OF THE BOARD OF DIRECTORS OF THE EAST VALLEY WATER DISTRICT APPROVING THE OPERATING AND CAPITAL BUDGETS FOR FY 2025-26 The combination of elected representatives and utility professionals working together, provides the customers of East Valley Water District with efficient and reliable water and sewer operations. MICHAEL MOORE | GENERAL MANAGER/CEOse r v i c e ex p e r t iv FY 2025-26 Budget I N T R O D U C T I O N The financial plan serves as a policy document, operations guide for programs, and as a means of transparent communication. introductionFY 2025-26 East Valley Water District | Introduction 1 • Budget Guide • Statistical/Supplemental Information • District Vision • District Pillars & Strategies • Organizational Structure • 5- Year Work Plan • Industry Benchmarks Introduction Contents 2 FY 2025-26 Budget Budget Document Sections East Valley Water District’s FY 2025-26 Operating and Capital Budgets provide customers, ratepayers, and members of the community with detailed information about the District’s programs and operations. The goal of the budget document is to provide transparency to the community regarding the services, programs, and operations of the District. The budget document consists of seven sections, including: The budget document is East Valley Water District’s (District) annual financial plan prepared by District staff and approved by the Governing Board. The financial plan serves as a policy document, operations guide for programs, and as a means of transparent communication. The intended audiences of the budget document are citizens, local businesses, creditors, governmental agencies, and other stakeholders.  INTRODUCTION This section includes the Budget Guide on how to read the budget, Statistical/Supplemental Information, Organizational Structure, and District Vision.  FINANCIAL SUMMARY This section presents an in-depth Districtwide overview of the FY 2025-26 Budget, including methodology and principles to provide guidelines for the formation and consideration of the comprehensive annual budget.  WATER, WASTEWATER, AND RECLAMATION FUNDS Financial projections, assumptions and considerations for revenue, expenses, and operations are included in this section.  CONSOLIDATED FINANCIAL SCHEDULES This section is a comprehensive summary of the District’s Budget presented for the organization as a whole and for each of the District Funds. The budget represents actions needed to implement the District’s short-term and long-term goals and objectives. Budget Guide East Valley Water District | Introduction 3  CONSOLIDATED FINANCIAL SCHEDULES This section provides comprehensive information for each functional program within the District including their operational budget. Descriptions include highlights of accomplishments, key goals and objectives, and Operating Budget for the specific Program. The FY 2025-26 Budget is organized into the following summary programs: • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Each program section includes: • Program Personnel: Explanation of authorized personnel allocated to each program including an organization chart. • Program Structure: Organization chart displaying the reporting for program personnel since supervisors may be allocated to different program funding. • Function: A basic description of the responsibilities of each program. • Goals & Objectives: Articulates the expectations for FY 2025-26 through specific goals and objectives. • Accomplishments: Highlights and milestones from FY 2024-25. • Significant Changes: Clarification of funding request differences compared to the previous year. • Levels of Service: Key Performance Indicators to measure program operations and achievement of the District’s Goals and Objectives. • Key Performance Indicators: These tables present measures that help the District define and evaluate a program’s performance. • Program Budget Detail: A detailed breakdown of the program expenditures by category or line item. Department Name Function Goals & Objectives Accomplishments Program Budget Detail Goals that directly support the District’s 5-Year Work Plan are noted in the various Program Summaries with the use of this icon. 4 FY 2025-26 Budget  CAPITAL BUDGET This section presents the Capital Outlay expenditures and Capital Improvement Projects (CIP) for the FY 2025-26 Budget.  GLOSSARY This section provides definitions for general terms, acronyms, and the Chart of Accounts used throughout the budget document. Budget Financial Information The District operates on a fiscal year, or budget time period, that begins on July 1 and ends June 30. The columns typically presented are: FY 2023-24 ACTUAL Actual financial information for FY 2023-24 as reported in the Annual Comprehensive Financial Report. The actual financial information is reported in the budget document on a budgetary basis. FY 2024-25 BUDGET The FY 2024-25 Budget was adopted by the Governing Board on June 26, 2024 and may also include any adjustments approved by the Governing Board at the Mid-Year Budget Review. FY 2024-25 PROJECTED The FY 2024-25 Projected column reflects the adopted budget in addition to any amendments approved by the Governing Board during the fiscal year. This budget is prepared before the completion of the current year budget. The FY 2024-25 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 2025-26 BUDGET This column initially reflects the FY 2025-26 “Proposed” Budget submitted by the General Manager/CEO. After the Governing Board reviews and approves the FY 2025-26 Budget, the information in the FY 2025-26 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 adopted budget. FY 2023-24 Actual FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed East Valley Water District | Introduction 5 Budget Awards The Government Finance Officers Association (GFOA) of the United States and Canada presented a Distinguished Budget Presentation Award and the California Society of Municipal Finance Officers (CSMFO) presented the Excellence Award to the District for its annual budget for the fiscal year beginning July 1, 2024. 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. Award and recognition of the District’s annual budget is a testament to the organization’s dedication to fiscal excellence. It boosts internal and external confidence while setting a foundation for sustainable financial health. California Society of Municipal  Finance Officers  Certificate of Award Operating Budget Excellence Award Fiscal Year 2024-2025 Presented to the East Valley Water District For meeting the criteria established to achieve a CSMFO Award in Budgeting. February 7, 2025 Ernie Reyna James Russell-Field, Chair 2024 CSMFO President Recognition Committee Dedicated to Excellence in Municipal Financial Reporting 6 FY 2025-26 Budget The District provides water and wastewater services to residents within its 30 square mile area. This includes over 108,000 people within the cities of Highland and San Bernardino, portions of the unincorporated County of San Bernardino, the Yuhaaviatam of San Manuel Nation, and Patton State Hospital. Statistical/Supplemental Information 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. District Boundary Map District Headquarters 31111 Greenspot Road Highland, CA 92346 Sterling Natural Resource Center (SNRC) 25318 5th Street San Bernardino, CA 92410 Phillip R. Goodrich Governing Board Member James Morales, Jr. Chairman of the Board Ronald L. Coats Vice Chairman of the Board Chris Carrillo Governing Board Member David E. Smith Governing Board Member 210 210 santa an a r i v e r sant a a n a r i v e r plun g e c r e e k plunge creek eld e r c r e e k cit y c r e e k city c r e e k sa n d c r e e k tw i n c r e e k tw i n c r e e k warm cr e e k cook creek mill c r e e k N San Bernardino SNRC Highland DistrictHeadquarters Seven Oaks Dam East Valley Water District | Introduction 7 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, Yuhaaviatam of San Manuel Nation, 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 two sources of water: surface water and groundwater from the Bunker Hill Groundwater Basin. Water from the basin is drawn from a natural underground storage area made up of soil, sand, and gravel using a series of 12 wells that pump water deep below the surface. Surface water is filtered and treated at the District’s water treatment plant. Surface water can be sourced from either the Santa Ana River (SAR) or Northern California. The Santa Ana River starts with natural springs and snow melt high in the San Bernardino Mountains. 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 (San Bernardino Valley) with its use and availability varying year-to-year. Wastewater Collection and Treatment The District is responsible for the collection and treatment of wastewater within the service area, including monitoring and maintaining 230 miles of sewer main that are part of the infrastructure. Wastewater flows are treated at the District’s SNRC facility located in the city of Highland. The facility became fully operational in January 2024 and treats up to eight million gallons of wastewater daily for recharge into the local Bunker Hill Basin. The SNRC provides drought-proof recycled water supply and allows hundreds of millions of gallons of water to be stored for use in dry years for beneficial reuse higher in the Santa Ana River watershed. Population Growth Population growth projections vary within the District’s service area due to a number of proposed developments with unspecified timing for completion. There are a number of developments currently under construction and planned for the future within the District’s service area including: • Construction and development of a new shopping center that includes fast food restaurants and a retailer. • New residential development on the east-end of service area. • Logistic warehouse in the airport area. 76% 24% Groundwater (Bunker Hill Basin) Surface Water (Imported State Water Project & Santa Ana River) $96,334 California Average $63,988$73,764 City ofSan BernardinoEast ValleyWater District $77,979 City of Highland $82,184 County ofSan Bernardino Average Household Income *Income information retrieved from census.gov. 8 FY 2025-26 Budget 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 Yuhaaviatam of San Manuel Nation. Within these communities, law enforcement is provided by the San Bernardino County Sheriff’s Department, City of San Bernardino Police Department, and San Manuel Department of Public Safety. Fire protection services are provided by the California Department of Forestry and Fire Protection (CalFire), San Bernardino County Fire Department, and the San Manuel Fire Department. Major Employers Major employment industries within the cities of Highland and San Bernardino include education, mental health services, public administration, health care, public safety, casinos, transportation, and construction. Strategic Planning Workflow The District has set out to be an exceptional 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. East Valley Water District | Introduction 9 A 5-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 STRATEGIC PLAN Vision Mission 5-Year Work Plan Core Values Pillars & Strategies BRIDGE MEASURES PERFORMANCE MEASURES Industry Benchmarks Budget Individual Performance Goals Daily Operations Inspiring people to improve our community and advance water resources. LEADERSHIP Developing relationships through collaboration and shared responsibility. PARTNERSHIP Protecting our community’s resources, now and in the future. STEWARDSHIP 10 FY 2025-26 Budget District Pillars & Strategies ORGANIZATIONAL RESILIENCY PLANNING, MAINTENANCE, AND PRESERVATION OF DISTRICT RESOURCES COMMUNITY ENGAGEMENT, ADVOCACY, AND LEADERSHIP SUSTAINABILITY, TRANSPARENCY, AND ACCOUNTABILITY Uphold Transparent and Accountable Fiscal and Resource Management Pursue External Beneficial Funding Sources Manage Energy Footprint and Consumption Develop a Resilient Local Water Supply EFFECTIVE SOLUTIONS Identify Opportunities to Optimize Natural Resources Maximize Internal Capabilities Through Ongoing Professional Development Encourage Performance Based Results through Staff Empowerment Utilize Current Technology and Invest in Future Solutions Advance Emergency Preparedness Efforts Provide Exceptional Customer Service Promote a Positive Organizational Culture Embrace an Environment of Active Learning and Knowledge Sharing Develop Projects and Programs to Ensure Safe, Reliable, and Resilient Service Utilize a Comprehensive Asset Management Approach Dedicate Efforts Toward System Maintenance and Modernization Enhance Planning Efforts that Respond to Future Demands Utilize Effective Communication Methods to Foster Exceptional Community Relations Enhance Legislative Advocacy to Promote Water Security and Sustainability Cultivate and Strengthen Collaborative Partnerships within the Water Industry Provide Education Programming that Empowers the Community The budget reflects the commitment of allocating resources to meet the needs of District stakeholders. East Valley Water District | Introduction 11 District Spotlight A glance at the District’s operational highlights for FY 2024-25 is shown below. This summary includes key metrics to understand the overall effort required to maintain the water and wastewater infrastructure over a 12-month period. [30.1 square mile service area] 279Water LeaksRepaired 300Miles ofWater Main 15,310,926 Average Gallons ofWater Produced Daily 12 Active Groundwater Wells 28,977,000Gallons of Water Storage 1,250 Feet of Water Main Replaced 3,600 Water Samples Collected 1,800 Water Samples Collected at the SNRC 1,137HydrantsRepaired,Replaced,Inspected 578HydrantsFlushed 5,100 Manholes 230Miles ofWastewaterMains 6,300,000 Average Gallons of Wastewater Collected Daily 140 Miles of Wastewater Main Cleaned 64 Miles of Wastewater Main Monitored by Video 12 FY 2025-26 Budget The budget reflects a commitment to aligning resources with identified priorities to ensure the greatest impact. pr i o r i t i e s es t a b l i s h i n g MICHAEL MOORE | GENERAL MANAGER/CEO East Valley Water District | Introduction 13 margin margin Ratepayers/Community Members ADMINISTRATIVE SPECIALIST DIRECTOR OF ADMINISTRATIVE SERVICES SR. TREATMENT PLANT OPERATOR FACILITIES MAINTENANCE WORKER II FACILITIES MAINTENANCE WORKER SR. WATER PRODUCTION OPERATOR WATER PRODUCTION OPERATOR II WATER PRODUCTION OPERATOR III SR. FIELD SERVICE WORKER FLEET MAINTENANCE COORDINATOR STOREKEEPER/ BUYER šWAREHOUSE­ FIELD SERVICE WORKER III FIELD SERVICE WORKER II FIELD SERVICE WORKER I METER TECHNICIAN II GENERAL MANAGER/CEO DISTRICT CLERK GOVERNING BOARD (5) (8) (2) (2) (2) (4) (6) (2) DIRECTOR OF ENGINEERING & OPERATIONS HUMAN RESOURCES COORDINATOR WATER PRODUCTION SUPERVISOR FIELD SERVICE SUPERVISOR SENIOR ENGINEER (2) PUBLIC AFFAIRS/ CONSERVATION MANAGER SR. ADMINISTRATIVE ASSISTANT FIELD SERVICE SUPERVISOR FACILITIES & FLEET SUPERVISOR PUBLIC AFFAIRS SUPERVISOR PUBLIC AFFAIRS SPECIALIST WATER QUALITY WORKER WATER & WASTEWATER COMPLIANCE SUPERVISOR WATER QUALITY TECHNICIAN OPERATIONS MANAGER PUBLIC AFFAIRS COORDINATOR CONSERVATION COORDINATOR Organizational Structure 14 FY 2025-26 Budget margin margin Legal Counsel CUSTOMER SERVICE REPRESENTATIVE III CUSTOMER SERVICE REPRESENTATIVE II (4) (2) Management General StaExecutive Management Elected O cials LEGEND CHIEF FINANCIAL OFFICER WASTEWATER TREATMENT PLANT OPERATOR III FINANCE MANAGER INFORMATION TECHNOLOGY MANAGER SR. ACCOUNTANT SR. ACCOUNTING TECHNICIAN ACCOUNTING TECHNICIAN BUSINESS SERVICES COORDINATOR CUSTOMER SERVICE SUPERVISOR NETWORK ADMINISTRATOR INFORMATION TECHNOLOGY ANALYST INFORMATION TECHNOLOGY TECHNICIAN * All positions are full-time unless noted otherwise as part time (PT). WATER RECLAMATION MANAGER SR. WASTEWATER TREATMENT PLANT OPERATOR (3) (2) CUSTOMER SERVICE REPRESENTATIVE I (PT) WASTEWATER TREATMENT PLANT OPERATOR II WASTE HAULER COORDINATOR (2-PT) FIELD SERVICE SUPERVISOR ADMINISTRATIVE ASSISTANT FIELD SERVICE SUPERVISOR WATER RECLAMATION SUPERVISOR East Valley Water District | Introduction 15 Program Structure The District has built an exceptional team of individuals committed to the District Vision and Core Values. The Organizational Chart reflects the current 79 authorized positions in relation to the chain of command structure. It is important to note that the District fosters a collaborative work environment which encourages communication and cooperation between different programs. A more detailed look at staffing can be viewed within each individual Program. The District currently has 18 programs, which are overseen by various members of the Executive Management Team. This chart reflects the organizational structure based on Program oversight. Program Level Operational Responsibilities Overview Ratepayers/ Community The individuals, businesses and stakeholders receiving services from the District. Governing Board The Governing Board is the legislative body of the organization. Comprised of five members elected at-large to four-year staggered terms of office. DISTRICT CLERK General Administration General Administration is responsible for ensuring the District’s business and daily operations activities are performed following Federal, State, and Governing Board approved policies. The General Manager/CEO provides daily oversight for interagency relations for advancing the District’s initiatives. Ratepayers/Community Members Governing Board General Manager/CEO * This program is overseen by a Director position but managed by a member of the Executive Team. Public Aairs Conservation Public Aairs/ Conservation Manager District Clerk Administration Director of Engineering & Operations Engineering *Operations *Water Reclamation Director of Administrative Services HumanResources &RiskManagement Chief Financial O cer 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 16 FY 2025-26 Budget DIRECTOR OF ADMINISTRATIVE SERVICES Human Resources & Risk Management Human Resources & Risk Management is responsible for administering programs to attract and retain a diverse and qualified workforce. This Program also oversees the District safety program to ensure staff maintain a safe work environment. Additionally, this Program is responsible for managing the District’s Emergency Preparedness, Risk Management, and Pathway programs. PUBLIC AFFAIRS/CONSERVATION MANAGER Public Affairs Public Affairs oversees internal and external communication programs consistent with the District’s Vision and guiding principles. Through community and media relations, the Program provides effective and strategic communications to various stakeholders. The Program is also responsible for grant writing and facility rental programs. Conservation Conservation is responsible for overseeing programs that facilitate and encourage sustainable water use throughout the District. Additionally, this Program is responsible for communicating conservation benchmarks to various regulatory agencies, tracking and monitoring legislative affairs and advocating on behalf of the District’s legislative platform. CHIEF FINANCIAL OFFICER Finance & Accounting Finance & 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. This Program also implements routine cybersecurity training campaigns and proactively schedules hardware replacements. Customer Service Customer Service provides the community with prompt, courteous, and exceptional customer relations. DIRECTOR OF ENGINEERING & OPERATIONS Engineering Engineering Program responsibilities include infrastructure planning, maintaining a safe and reliable water supply, and ensuring compliance with Federal and State regulations. This Program oversees water, wastewater, and water reclamation capital projects. Water Reclamation The Water Reclamation Program is responsible for treating and disinfecting up to eight million gallons of wastewater per day (MGD). Reclamation of wastewater generated by District customers also convert solid waste to electricity. East Valley Water District | Introduction 17 OPERATIONS MANAGER Meter Services The Meter Services program maintains a network of approximately 23,000 Advanced Metering Infrastructure (AMI) meters. The Program conducts routine maintenance, testing and replacement of meters to ensure billing is accurate. Water Production Water Production is responsible for the daily monitoring and operations of the entire water production system to ensure preventative maintenance of all pumps, motors, wells, boosters, reservoirs, pressure regulating valves (PRVs), hydro-pneumatic plants, and the Supervisory Control and Data Acquisition (SCADA) system. Water Treatment Water Treatment is responsible for management of three different sources of supply used by the District. The Program is responsible for the operation of Plant 134, a Surface Water Treatment Plant, and two unique groundwater treatment facilities at Plant 28 and Plant 39. Water Quality Water Quality is responsible for ensuring District compliance with State and Federal Drinking Water Regulations. This program manages backflow prevention, water sampling, Fats, Oils, and Grease Program (FOG), and the fire hydrant flushing programs. Water Maintenance The Water Maintenance Program is responsible for the maintenance 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 maintenance of the District’s 230 miles of collection pipelines. Facilities Maintenance Facilities Maintenance is responsible for the maintenance of all District facilities. The Program oversees administration buildings, water facilities, District-Owned vacant properties, and easements. Fleet Maintenance Fleet Maintenance is responsible for the preventative maintenance program for all District vehicles and heavy equipment. This includes the procurement of fleet items and maintaining compliance with State and Federal air quality rules and regulations. SEWER To align resources with District goals and objectives, it is crucial to strategically staff and budget for the appropriate number of personnel. 18 FY 2025-26 Budget Budget Summary by Program The sum of many pieces makes the whole, and through 18 programs the District is able to provide exceptional services to the community it serves. The graphic below displays the budget allocation for each program within the FY 2025-26 Operating and Capital Budgets. Human Resources & Risk Management Water Production - Water Reclamation 24% Water Maintenance 10%14% 9% Information Technology 5% Water Treatment 4% Finance & Accounting 4% Customer Service 5% Public A airs 4% General Administration 3% Facilities Maintenance 5% Engineering 4% Conservation 2% 1%Water Quality Wastewater Collection 2% Fleet Maintenance 2% Board 1% Meters 1% East Valley Water District | Introduction 19 [ P A G E L E F T B L A N K I N T E N T I O N A L LY ] 20 FY 2025-26 Budget 5- Y E A R WO R K P L A N 5-Year Work Plan INTRODUCTION SECTION East Valley Water District | Introduction 21 The 5-Year Work Plan is essential to plan for key projects, prioritize resources, and maintain diligent stewardship. 22 FY 2025-26 Budget Every January, the budget process begins with the Governing Board creating and adopting the 5-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 5-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. 5-Year Work Plan Project Look Ahead Goal Description Lead Program Supporting Programs Develop a Roadmap to Meet and Implement Water Use Efficiency Objectives Staff will develop a Water Use Efficiency compliance roadmap to comply with regulatory requirements and list steps needed to meet the objectives. Conservation Engineering, Finance Digitize Conservation Rebate Application With the advances of technology, the District will streamline, update and refine the rebate application to help increase efficiency of the process. Conservation Public Affairs Customer Service Internal Cross Training Develop opportunities for Customer Service to learn and be exposed to the operations of the District, including field ride alongs, cross departmental training, and knowledge sharing. Customer Service Urban Water Management Plan (UWMP) Review and update the UWMP in accordance with regulations.Engineering Operations City Creek Mutual Water Company Dissolution Work with legal counsel to dissolve the City Creek Mutual Water Company with the remaining shareholder. General Administration Organizational Administrative Review Assess and review the District's processes, systems and staffing. General Administration Public Engineering Plan Portal Design and launch a portal for developers to access "as- built" designs of the District. Information Technology Develop SCADA Support Plan Develop a support approach for SCADA infrastructure.Information Technology Human Resources Develop and Implement SCADA Resiliency Program Replace outdated equipment and radios.Information Technology Engineering, Operations EFFECTIVE SOLUTIONS Create innovative, efficient, and strategic approaches to achieve the District’s goals and meet any challenge. Prioritize resources, foster the professional development of employees, and embrace new technology driving innovation. East Valley Water District | Introduction 23 Goal Description Lead Program Supporting Programs Upgrade Phone System Conduct phone system assessment and determine an on- premise or hosted phone solution. Information Technology District Security Camera Assessment Implement new camera system at key sites.Information Technology Implement Multi- factor Authentication Security Implement multi-factor authentication (using Cisco Duo) to all District technology, increasing security posture. Information Technology Upgrade Email Security Enhance and implement email security to continue hardening the District's digital infrastructure. Information Technology Update Tyler ERP Workflows Work with District staff to update business workflows for Finance and Customer Service Information Technology Customer Service/Finance Implement .GOV Domain with Associated Email Addresses Finalize the .GOV domain transition and update staff platform email addresses to align with District website. Information Technology Public Affairs Establish SNRC Maintenance Support Services Issue competitive contracts for preventative maintenance, corrective repairs, and emergency services, including the replacement of components for electrical systems, mechanical systems, SCADA (Supervisory Control and Data Acquisition), instrumentation, and contingency measures for catastrophic failures. Water Reclamation Finance Professional Regulatory Support Services Contract Issue a contract with professional service providers to ensure compliance with regulations set forth by State Water Resources Control Board (SWRCB), Division of Drinking Water (DDW), Air Quality Management District (AQMD), and other governing agencies. The scope includes support for preparing reports, addressing existing and future compliance requirements, and maintaining regulatory adherence. Water Reclamation Finance SUSTAINABILITY, TRANSPARENCY, AND ACCOUNTABILITY Responsibly manage resources while maintaining open communication and fiscal integrity. Actively build sustainable programs, maintain transparent operations, and open accountability to the community. Goal Description Lead Program Supporting Programs Assess Bill Processing Partner Review and assess the District's customer bill processing partner (Infosend) to determine best optimization of customer billing process. Customer Service Evaluate Customer Payment Option Vendor Assess the various market solutions and determine the most efficient vendor to work with the District. Customer Service Finance 24 FY 2025-26 Budget Goal Description Lead Program Supporting Programs Facility Alternative Energy Sources Conduct an analysis and recommendation for the District to strategically construct alternative energy generation to offset electricity costs. Engineering Operations Water Supply Reliability Take measures to evaluate and implement projects that improve water supply capacity, raw water storage, resiliency, and reliability. Engineering Operations Financing Opportunities for Capital Improvements Consider alternatives for new capital financing needs, including issuing new debt. Finance Tyler Enterprise Resource Planning (ERP) Software Review Assessment of the District’s current Tyler ERP and review potential enhancements of the platform.Finance Cost of Service Analysis / Rate Study Establish rates based on current costs for wastewater services.Finance Review Banking Agreement Assess and update the District's current banking solution. If necessary, establish a new contract for a banking solution. Finance Procurement Policy and Fraud Prevention Policy Review Assess the District's procurement policy and determine updates necessary to ensure continued transparency and efficiency. Finance Review Investment Policy / Investment Fund Analysis Review and assess the current investment strategy. Determine if any updates are needed. Finance Document Management Scan and digitize documents into the District’s electronic repository in accordance with adopted Records Retention Policy. Enhance document management process and features for document retrieval. General Administration Information Technology Optimize Agenda Management Platform Review the current agenda management platform and determine if new features or upgrades are necessary to improve the user experience. The upgrades can include a Board voting module, minutes dictation, and board portal. General Administration Electronic File Management Training Train departments on the process/standards of classifying files in accordance with the records retention policy. General Administration Disposing of Remanent Parcels Identify properties across the District for disposal and sale. Operations Septic-to-Sewer Conversions Pursue grant funding sources to convert septic tanks to the District's sewer service. Identify zones to conduct environmental review. Public Affairs Engineering Develop Artificial Intelligence (A.I.) Policy and Guidelines Assess the needs, opportunities and potential risk surrounding A.I.; creating a policy to foster innovation, while protecting assets. Information Technology Public Affairs, Human Resources Evaluate Backup Power Support at SNRC Review backup power plan at the SNRC to ensure the continued reliable operations of the plant. Assess feasibility of backup generator powering the entire site and Southern California Edison (SCE or Edison) Preferred Service (PE). Water Reclamation East Valley Water District | Introduction 25 Goal Description Lead Program Supporting Programs Review Answering Service Analyze the District's answering service to determine efficient and effective partners. Customer Service Community Heritage and Education Foundation (CHEF) Assessment Determine the direction and activities of CHEF.General Administration Enhance Emergency Preparedness Training Program Develop an emergency preparedness training program and prepare employees to follow plans established by the District. Update the District’s emergency response documents to reflect current conditions, regulations, and identified actions. Human Resources Negotiation of a New MOU Negotiate a 3-year Memorandum of Understanding (MOU) before the current MOU expires, and ensure that agreed-upon salaries, benefits, and related programs are implemented as adopted. Human Resources Develop and Implement Comprehensive Succession Plan Review and update a succession plan tailored to the District's needs, audit existing plan and identify gaps. Human Resources WW Operator- in-Training (OIT) Program Develop an in-house OIT program; incorporating State requirements necessary for Treatment certification. Human Resources Water Reclamation Update Crisis Communication Plan Conduct audit of existing crisis communication plan, identify gaps and technology changes. Develop, exercise and implement annual training program following a new crisis communication plan. Public Affairs New Customer Welcome Packets Overhaul the District's customer welcome packets to better showcase services provided by the District and conservation resources available. Public Affairs Conservation Customer Experience Assessment Audit and review the customer experience and identify improves necessary to better communicate and improve experience. Public Affairs Customer Service Develop a Wastewater Operator Safety Program Develop a comprehensive District Operators' Core Competencies Program focusing on ten key areas of expertise. Integrate the program into daily operations to enhance proficiency, ensure consistent performance, and support professional safe environment among District operators. Water Reclamation Human Resources Establish a Regional Knowledge Sharing Coalition Establish a coalition with regional partners to find partnering opportunities and develop emergency assistance programs. Water Reclamation Human Resources ORGANIZATIONAL RESILIENCY Prepare, adapt, and respond to challenges facing the District through a visionary organization. Build a strong internal framework to prioritize emergency preparedness, exceptional customer service, and a positive workplace culture. 26 FY 2025-26 Budget Goal Description Lead Program Supporting Programs Host Wastewater Seminars and Workshops Develop an educational track and host a series of seminars/workshops to highlight industry best practices along with innovative solutions. Water Reclamation Public Affairs Goal Description Lead Program Supporting Programs North Fork Creek Crossings Replacing plunge creek pipeline. Review alternatives and scope construction of the pipeline. Engineering Operations Plant 101 Rehabilitation Retrofit and upgrade the water facilities at Plant 101.Engineering Operations Water Reservoir Rehabilitation Program Rehabilitate the District’s water storage reservoirs. Engineering Operations Warm Springs Channel Spill Containment Expand the SSO approach and partner with local jurisdictions to ensure proper containment processes are in place. Engineering Water Reclamation Implement Plant 39 Technology Install Access Control, Security Cameras, Internet Fiber, and Computer/Server Hardware at new warehouse facility Information Technology Operations Site Security and Improvements Increase perimeter security of satellite facilities and access controls to improve aesthetics/security.Operations Information Technology Water Main Replacement Program Repair and replacement of linear assets due to age, corrosion, or leak history.Operations Valve Replacement Program Develop a strategic Valve Replacement Program to replace 40 of the District’s aging, shut-off valves.Operations Backflow Device Program Evaluate the backflow program to determine the most efficient means of maintaining customer owned backflow devices. Operations Evaluate Salt Mitigation Approach Partner with regional coalitions and identify an approach to assess the needs for salt mitigation in the region. Water Reclamation Engineering SNRC Train Five (T5) Process Expansion Expand MBR capacity at the SNRC from four process trains to five. Water Reclamation Total Organic Carbon (TOC) Removal/Lysimeter Monitor the TOC and determine if a deeper lysimeter is needed. Water Reclamation Update Odor Minimization Plan Improve the odor control system and reduce odor complaints by half each fiscal year, until zero complaints are achieved in a FY. Water Reclamation Engineering Rollout a SNRC Asset Management Program Work with IT to develop the asset management approach at the SNRC. Add solids equipment to Tyler and provide operator training on the system. Water Reclamation Information Technology SNRC Process and Mechanical Enhancements Improve reliability of SNRC operations through process and equipment upgrades. Water Reclamation Engineering PLANNING, MAINTENANCE, AND PRESERVATION OF DISTRICT RESOURCES Focus on the long-term stewardship of the District’s infrastructure and resources to ensure reliable service and be proactive in planning, ongoing maintenance, and modernization to meet the community’s current and future needs. East Valley Water District | Introduction 27 Goal Description Lead Program Supporting Programs Solids Processing and Dewatering Process Improvements Research cost-effective equipment to improve solids thickening and dewatering, including belt press, rotary drum thickeners and gravity belt thickeners. Water Reclamation Engineering Goal Description Lead Program Supporting Programs Conservation Rebate Program Enhancements Enhance rebate programs to maximize customer water savings through the development of new rebate opportunities. Conservation Water Education Program Enhancements Enhance the engagement with students in the classroom environment to provide current water conservation and water resource materials consistent with state curriculum. Conservation Develop Conservation Educational Video Series Create an informative video series to engage with residents on "how to" be water efficient.Conservation Community Engagement Enhancements Enhance community engagement through increased in-person activities, develop a targeted outreach initiative surrounding the SNRC and use of technologically based communications tools. Public Affairs Industry Engagement (Awards and Presentations) Showcase the District’s projects and programs through participation in industry related conferences and awards.Public Affairs Engineering, Finance Facility Rental Assessment Assess the District's usage of the facility rental program and the overall impact on facility resources.Public Affairs Community Influencer Engagement Actively engage with community groups, HOAs, and informal neighborhood organizations to develop relationships with the "informal" community leaders. Public Affairs Track and Monitor PFAS Requirements Monitor the legislative and regulatory environment surrounding PFAS. Public Affairs Water Reclamation Develop Strategic Communications Plan Create and implement a Strategic Communications Plan to effectively engage with the community and highlight the District's strategic initiatives. Public Affairs Assess and Enhance Facility Tour Program Monitor and assess the District's Facility Tour Program. Create and test alternative tour program features such as tours on Saturdays, virtual tour options, and educational program material. Public Affairs Operations Educational Augmented Reality (AR) Assessment and Development Explore innovative use of AR to allow members of the public to learn about the District's water and wastewater systems. Assess the feasibility and incorporate such technology into the program. Public Affairs Industry Coalition Engagements/ Partnerships Engage with water reclamation regional coalitions, including CASA and WateReuse. Water Reclamation Public Affairs COMMUNITY ENGAGEMENT, ADVOCACY, AND LEADERSHIP Build strong local and regional partnerships furthering the District’s priorities and advocating on behalf of the District’s community. Foster solid community relationships through effective, informative, and educational communication. 28 FY 2025-26 Budget IN D U S T R Y BE N C H M A R K S Industry Benchmarks INTRODUCTION SECTION East Valley Water District | Introduction 29 The District actively enhances communication methods to reach a variety of stakeholders. 30 FY 2025-26 Budget The data presented in the following tables are sourced from the American Water Works Association’s (AWWA) 2023 Utility Benchmarking Program, neighboring water districts, and the U.S. Environmental Protection Agency (U.S. EPA). The District’s data includes the previous completed fiscal years. By leveraging these benchmarks, the District can enhance its operations, foster trust and transparency with stakeholders, and ensure that it continues to invest resources in building a safe and reliable public utility. As part of the District’s continued efforts to enhance financial transparency and planning, several updates have been made to the way benchmarking data and fund targets are presented: • Benchmarking Data: The District has expanded its benchmarking period from three years to four years of historical data. This provides a more comprehensive view of trends and performance over time, allowing for better context and more informed decision-making. • Operating Fund Target Level: The description of the operating fund target has been refined to match the updated Reserve Funds Policy No. 7.2. Previously defined by a specific desired amount of days to support operations and financial stability, the updated approach focuses instead on maintaining an appropriate level of operating reserves, one third of the District’s total operating expenses. This shift allows for more flexibility in adapting to changing operational and economic conditions. • Capital Replacement Fund Balance: The target for the Capital Replacement Fund has transitioned from a fixed $10 million balance to a dynamic target. Moving forward, the target level will be based on twice the five-year average of the District’s annual CIP budget (Reserve Funds Policy No. 7.2). This methodology better aligns the fund with anticipated capital needs and long-term infrastructure investment. Operating Fund Target Level The operating fund target level pertains to the desired amount of funds that the District aims to have available in order to sustain day-to-day operations and ensure financial stability. The District’s Reserve Funds Policy No. 7.2 establishes the maximum level, which serves the purpose of guaranteeing adequate liquidity and covering operational expenses. The District is committed to delivering exceptional service to its community, customers, and stakeholders. As part of its continuous improvement efforts, the District has established Industry Benchmarks that offer valuable insights into its performance relative to others in the industry. Industry Benchmarks 4 8 12 16 Op e r a t i n g R e s e r v e District-Wide Ending Operating Reserve Target Level Maximum FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 9 9 1215 7 8 11 13 East Valley Water District | Introduction 31 Capital Replacement Fund Balance The graph illustrates the restricted funds for capital replacement. The Capital Fund Target Balance is set based upon the District’s adopted Reserve Funds Policy No. 7.2 to ensure the District has an appropriate level of financial reserves, while allowing for investment in infrastructure projects and optimizing long-term rehabilitation opportunities. Miles of Sewer Cleaned The chart provides an overview of the number of miles of sewer lines cleaned. The District aims to clean at least 50% of the system per fiscal year with the U.S. EPA setting a target of 30%. 100% 20% 40% 60% 80% Pe r c e n t C l e a n e d % of System Cleaned per Year (Actual) U.S. EPA % of System Cleaned per Year (Target) FY 2020-21 FY 2021-22 FY 2022-23 69% 94% 77% FY 2023-24 84% 30% $2M $4M $6M $8M $10M Restricted for Future Capital Expansion Project at Year-End Capital Replacement Fund Target Balance FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 $10.34 $10 $8.11$8.79 $10.85$10 Mi l l i o n s 32 FY 2025-26 Budget Main Leaks The chart displays the total number of main line leaks per 100 miles of water. The data includes AWWA’s 2023 benchmark information to compare water systems across the United States. Water Affordability The chart presents the affordability of the District’s water by comparing it to the U.S. EPA 2.5% threshold. FY 2020-21 FY 2021-22 FY 2022-23 20 25 30 35 40 45 50 Ma i n L e a k s P e r 1 0 0 M i l e s Leaks per 100 Miles of Pipe AWWA Combined Utilities Water OperationsLeaks per 100mi. of Pipe (Target) 30 FY 2023-24 3229 51 7 0.50% 1.00% 1.50% 2.00% 2.50% Pe r c e n t a g e o f Ho u s e h o l d I n c o m e Water Service Aordability (% of MHI) U.S. EPA (% of MHI) Target State Water Board Threshold (% of MHI) FY 2020-21 FY 2021-22 FY 2022-23 2.50% 1.50% 1.19%1.19%1.10% FY 2023-24 1.13% East Valley Water District | Introduction 33 Staffing Levels The graph highlights the staffing levels of the District in comparison to neighboring water districts. The data is presented in relation to the total number of accounts per employee, offering insights into the efficiency and workload distribution of the District’s workforce relative to its counterparts. Wait Time The chart illustrates the call wait time experienced by District customers when contacting customer service representatives. It also includes a comparison with other utilities using the 2023 AWWA benchmarking data, offering insights into the District’s performance in terms of customer service responsiveness in relation to industry standards. 50 100 150 200 250 300 Ac c o u n t s P e r E m p l o y e e Customer Accounts per Employee Neighboring Agencies Average Accounts per Employee FY 2020-21 FY 2021-22 FY 2022-23 326 287 285 FY 2023-24 298 212 10 20 30 40 50 60 70 90 80 Av e r a g e Q u e u e T i m e Avg Queue Time AWWA 2023 Combined UtilitiesWait Time Target FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 25 20 32 37 90 34 FY 2025-26 Budget The annual budget is an opportunity to establish priorities for the fiscal year, identify means to evaluate results, and ensure that the planned operations and capital projects responsibly use District resources. financial summaryFY 2025-26 F I N A N C I A L S U M M A R Y East Valley Water District | Financial Summary 35 • Financial Policies • Budget Process • Budget Cycle Calendar • Basis of Budgeting • Fund Structure • Fund/Program Relationship • Budget Summary • Revenue Summary • Expenditure Summary • Debt Overview • Fund Equity and Reserves • Long-Range Financial Plan Financial Summary Contents 36 FY 2025-26 Budget Operating and Capital Budget Policy PURPOSE AND SCOPE The purpose of this policy is to provide guidelines to assist in the formulation and consideration of a comprehensive annual budget, one of the most important financial activities the District undertakes each year. Those guidelines include a Strategic Plan and Capital Improvement Program (CIP), which assist in completing financial planning cycles that deliver efficient and effective public services. This policy applies to all funds under the budgetary and fiscal control of the Governing Board. BALANCED BUDGET The District will adopt a balanced budget for each fund this policy covers, where the sum of estimated revenues and use of reserves is equal to or greater than current expenditures. Expenditures will include operating expenses, debt service, and the Budget’s contribution to the CIP. Short-term operating deficits will be mitigated either by raising rates and fees or cutting costs. The use of one-time revenues and development fees for the funding of operating costs is not permitted, and reserves may only be used for the purpose for which they were intended in accordance with the District’s Designated Funds Policy. Budget control is maintained at the program/department level. The General Manager/CEO has the authority to approve budgetary transfers between programs or departments, but changes that increase expenditures at the fund level require budget amendments approved by the Governing Board. The budget development process is outlined on pages 42-43. Investment Policy PURPOSE AND SCOPE The purpose of this policy is to establish guidelines for the prudent investment of District funds in conformance with California Government Code (CGC) requirements. The policy applies to all funds under direct authority of the District, which does not include funds held in trust for the District’s retirement plans and post- employment health benefits. East Valley Water District 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. Financial Policies Development of the annual budget provides an opportunity for cooperation and collaboration. East Valley Water District | Financial Summary 37 OBJECTIVES CGC §53600.5 states that, when investing and managing public funds, the primary objectives, in priority order, of the District’s investment activities shall be: • Safety — Safety of principal is foremost, therefore, investments shall be undertaken in a manner that seeks to preserve capital, while mitigating risks such as interest rate risk and credit risk. • Liquidity — The investment portfolio shall remain sufficiently liquid to enable the District to meet all operating requirements that can reasonably be anticipated. • Return on Investment — The investment portfolio shall be designed for attaining the best yield while keeping in mind that return is secondary to the objectives of safety and liquidity. DELEGATION OF AUTHORITY The authority of the District’s Governing Board to invest District funds is derived from CGC § 53601. CGC § 53607, allowing the Governing Board to delegate that authority to a Treasurer. The District’s Chief Financial Officer has historically been selected to serve as this delegated authority. This delegation expires and may be renewed annually, by Board resolution, in conjunction with the annual review of the investment policy. AUTHORIZED INVESTMENTS The District is empowered by CGC §53600 et. seq. to invest in certain types of investments. The District policy is more restrictive than the CGC regarding allowable investments due to the size of the District’s investment portfolio and limited staff resources available to manage invested funds. SAFEKEEPING AND INTERNAL CONTROL To protect against potential losses caused by the collapse of a security dealer, all book-entry securities are kept in safekeeping by a third-party bank trust department, acting as agent for the District under the terms of a custody agreement. Internal controls have been established to help ensure assets are protected from loss, theft or misuse. Controls include separation of transaction authority from record-accounting, and confirmation of telephone transactions for investments and wire transfers. REPORTING In accordance with CGC §53646, the Chief Financial Officer will prepare, and render to the Governing Board, a quarterly investment report within 30 days of the end of each quarter. The report shall list types of investments, maturity, par and market values of each investment, transactions occurring during the quarter, and identification of funds managed by a third-party. Reserve Funds Policy PURPOSE The District recognizes that fiscal responsibility requires anticipating, and preparing for, unforeseen events, in addition to ensuring sufficient funding is available for current operating, capital, and debt service needs. To that end, the District has adopted a Reserve Funds Policy as part of prudent financial planning and to ensure sufficient funding for current and future needs. 38 FY 2025-26 Budget 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: Operating Reserve Funds CapitalReplacementReserve Restricted Reserve (Includes debt proceeds, customer deposits and developer fees.) OPERATING RESERVE 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. CAPITAL REPLACEMENT RESERVE All Funds will maintain a reserve for the replacement of capitalized assets when they reach the end of their useful lives or in the unexpected need for emergency repair. The source of reserves will be user fee revenue from the respective fund. East Valley Water District | Financial Summary 39 1. Target Level – The minimum target level should be equal to twice the 5-year average of the District’s annual Capital Improvement Plan plus one percent of the system asset value. The maximum balance shall not exceed the projected needs for five years according to the District’s Capital Improvement Plan plus two percent of the system asset value. 2. Events or Conditions Prompting the Use of the Fund – Staff will recommend assets to be replaced during the Capital Budget presentation. As projects are approved, funds will be appropriated from undesignated funds or available revenues. Emergency reserves will be used to begin repair of the water and sewer systems after a catastrophic event or other unforeseen circumstances. 3. Periodic Review Dates for Balances – Fund balances and projected improvement projects will be reviewed by staff and the Governing Board during the preparation and approval of the annual budget. RESTRICTED RESERVE Restricted reserves shall be segregated and limited in use to specific and designated purposes as defined by law or adopted ordinance, contractual agreement, or as a condition or covenant of borrowing. 1. Bond Proceeds – Typically consist of construction fund monies, and a debt service reserve. a. Target Level – The debt service reserve requirement, if applicable, is established at the time of issue. b. Events or Conditions Prompting the Use of the Fund – Construction fund monies must be spent on applicable projects, while the debt service reserve can only be used in the event of a shortfall of pledged revenues. 2. Development Fees – Consists of capacity fees paid by developers to buy into the infrastructure system paid for by the investment of existing customers. a. Target Level – Capacity fees are collected to pay for facility additions or improvements to support demands on the system by new development. 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. 40 FY 2025-26 Budget 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 Governing Board to review proposed rate actions, debt issuances, or other actions of substance to the District. Inter-Fund Borrowing Safety of principal is foremost, therefore, investments shall be undertaken in a manner that seeks to preserve capital while mitigating risks such as interest rate risk and credit risk. Lines of Credit May be considered as short-term borrowing. The Chief Financial Officer shall determine when it is prudent to recommend that the District enter into an agreement with a commercial bank or other financial institution for the purpose of acquiring a line or letter of credit. Capital Lease Debt May be used for equipment purchases where cost exceeds $50,000 and financing terms are cost effective. State Revolving Fund (SRF) Loans Based on availability, loans are low or zero interest for water and wastewater infrastructure projects with a term of 20 to 30 years. Joint Powers Agency Revenue Bonds Financing may be obtained through the issuance of debt under a joint exercise of powers agreement with such debt payable from amounts paid by the District under a lease, installment sale agreement, or contract of indebtedness. Refunding Revenue Bonds The District may issue refunding revenue bonds to refund District indebtedness pursuant to the State of California local agency refunding revenue bond law (Title 5 of the California Government Code). East Valley Water District | Financial Summary 41 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 2025-26 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 2025-26 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 5-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 5-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 and Mission statement, Core Values, and Pillars and Strategies. The Budget reflects direction from the Governing Board as established by the District Vision and communicated to District staff through various meetings and workshops. Budget Process District Vision 5-YearWork Plan DevelopProgram Goalsand Objectives Adopt Budget Monitor Programs andAdjust asNecessary Establish KeyPerformance Indicators and Estimate Costs 42 FY 2025-26 Budget 5-Year Work Plan The District has adopted a 5-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 5-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 5-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 5-Year Work Plan was presented to the Governing Board in January, 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 5-Year Work Plan when possible, and allows program employees to propose/establish individual goals that support the District’s long-term goals and vision. Program Goals and Objectives were presented to the Governing Board and public at a public workshop in April 2025. 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 To provide an opportunity for discussion and participation, the budget is presented to the Governing Board in phases at a series of three public meetings. In addition, the information is presented during one public meeting of the Community Advisory Commission. •District Vision •Core Values •Pillars & Strategies GuidingPrinciples •Industry Benchmarks •FY 2025-26 Operating and Capital Budgets •Individual Performance Goals PerformanceMeasures •5-Year Work Plan BridgeMeasures Scan this QR code to view a copy of the 2025-26 5-Year Work Plan. East Valley Water District | Financial Summary 43 The final budget document is assembled, including projected revenues, expenditures, and funding of all Goals and Objectives proposed by Program Managers. 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. The annual budget must be adopted by June 30 in order to begin the new fiscal year on July 1. 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. Given that the budget is developed based on projections, every program monitors monthly expenses. Each quarter, the budget-to-actuals are reviewed by staff to allow for an opportunity to take formal budget adjustments to the Governing Board for consideration. Consistent budget review eases the transition of programs from year-to-year. Requests for budget adjustments are submitted by Program Managers to Executive Management for review, who then forward the requested adjustments to Finance for incorporation into proposed budget amendments to be presented to the Governing Board at a Mid-Year Budget Review in February. When possible, adjustments have no net effect on the original budget balance unless additional revenue is available. However, if revenue shortfalls or unanticipated costs are realized, and transfers between line items cannot meet the projected deficit, a recommendation to defer capital projects or draw on reserves is usually required to meet the shortfall. All proposed changes are presented to the Governing Board at a Mid-Year Budget Review in February. Operating under the principles of transparency, the District takes steps to make financial reports reader-friendly and easily accessible to the public. 44 FY 2025-26 Budget Budget Cycle Calendar June 25, 2025 FY 2025-26 Budget Adoption November 12, 2025 First Quarter FY 2025-26 Budget Review at Public Board Meeting January 22, 2026 Budget Meeting to Distribute FY 2026-27 Worksheets to Program Managers February 25, 2026 FY 2025-26 Mid-Year Budget Review at Public Board Meeting February 23 - March 12, 2026 Discuss FY 2026-27 Goals & Objectives with Program Managers March 3 & 10, 2026 FY 2026-27 Capital Outlay and Capital Improvement Program Planning Meeting March 26, 2026 FY 2026-27 New Position Requests, Program Goals & Objectives and Budget Requests, Capital Outlay, and CIP Requests April 22, 2026 FY 2026-27 Proposed Goals and Objectives Workshop at Public Board Meeting April 20-23, 2026 FY 2026-27 Budget Review with Executive Managers and General Manager/CEO May 13, 2026 FY 2026-27 Revenue Projection Workshop at Public Board Meeting May 19, 2026 CAC FY 2026-27 Budget Review May 29, 2026 FY 2026-27 Budget Complete with all Revisions June 10, 2026 FY 2026-27 Budget Presentation at Public Board Meeting June 24, 2026 FY 2026-27 Budget Adoption at Public Board Meeting East Valley Water District | Financial Summary 45 The District uses the full accrual basis for budgeting, however, there are exceptions where the accrual basis is not conducive to effective presentation of the District’s budget because it does not allow discrete presentation of some significant uses of current financial resources. In these cases, GAAP is not followed, and instead those uses of current resources are shown as expenditures rather than as a reduction to a previously recorded liability, or a capitalized cost. Exceptions to the full accrual basis used for the District’s budget presentation are as follows: • Compensated absence expense reflects the change in related accrued liabilities during the accounting period on the full accrual basis, but for budget purposes, expense includes anticipated leave time to be used and/or cashed by employees during the fiscal year. • Principal payments on Long-Term Debt are applied to reduce the outstanding liability on the full accrual basis; but are shown as a current expenditure for Budget purposes. • Capital Outlay and Construction costs are capitalized and expensed over the useful life of the asset on a full accrual basis; but are shown as a current expenditure for Budget purposes. • Depreciation is recorded annually to expense the cost of a capital asset over its useful life on a full accrual basis but is not contemplated in the annual Budget. • Pension expense is budgeted based on employer contribution rates assigned by the California Public Employee’s Retirement System (CalPERS). For financial statement reporting, pension expense is recorded based on the change to the net pension liability in accordance with Governmental Accounting Standards Board Statement No. 68. • Other Post Employment Benefits (OPEB) expense (retiree health insurance) is budgeted based on stipulated reimbursements to retirees toward the cost of health insurance until they reach medicare age. For financial statement reporting, OPEB expense is recorded based on the change to net OPEB liability in accordance with Governmental Accounting Standards Board Statement No. 75. • Interest payments related to financing of the cost of a capital asset during construction are capitalized on the GAAP basis; but are shown as a current expenditure for Budget purposes. Fund Structure GAAP requires that the District, a California Special District, to 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, the Wastewater Fund, and the Water Reclamation Fund. 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. Basis of Budgeting 46 FY 2025-26 Budget The Water Fund accounts for the costs of acquiring raw water, treating the water, and then pumping and distributing the treated water to District customers. The Wastewater Fund accounts for the cost of maintaining a system of pipelines responsible for collecting wastewater from residential and commercial customers and delivering the wastewater to the treatment facility. The Water Reclamation Fund treats wastewater to the standards of Title 22 of the California Code of Regulations and conveys recycled water for groundwater replenishment. Currently, the District operates its own reclamation facility known as the Sterling Natural Resource Center. Recycled water is sent to the Weaver Basins, owned by San Bernardino Valley, for recharge into the Bunker Hill Basin. Each of the Funds’ operations rely on a significant amount of planning and infrastructure. Accordingly, each fund contributes to the maintenance, replacement, and improvement of that infrastructure. When the issuance of debt is appropriate to fund major capital projects, each fund has the authority to issue debt. To support these costs, each fund adopts its own user rates, fees and charges, and has its own self-balancing set of accounts. Budgets for each fund are adopted to support the associated capital, and debt service costs, to make reasonable contributions to reserves, and to pay for direct, and allocated, operating and maintenance program expenses. RAW WATER SOURCES WATER PRODUCTION PLANTS DISTRIBUTION & STORAGE WATER FUND WATER RECLAMATION WASTEWATER FUND COLLECTION & CONVEYANCEWASTEWATER TREATMENT CUSTOMER USE RECYCLED WATER RECHARGE EVWD STERLING NATURAL RESOURCE CENTER The District follows the GAAP requirement that enterprise funds use the full accrual basis of accounting. East Valley Water District | Financial Summary 47 Flow of Funds Additional details about the activities and budgets of each fund are included at the Water Fund, Wastewater Fund, and Water Reclamation Fund tabs in this document. Water Sales System Charges Water Fund Wastewater Fund Investment/Other Income Water Operations, Capital Expendituresand Debt Service Collection Charges Investment/Other Income Investment/Other Income WastewaterTreatment Charges Wastewater Operations,Capital Expendituresand Debt Service SharedAdministrationPrograms Reclamation Operations,Capital Expendituresand Debt ServiceReclamation Fund 48 FY 2025-26 Budget The benefit assessment entails the evaluation of each program and the services provided through activity-based costing. Programs with activities fully aligned with the purpose of one fund or the other, are charged fully to the appropriate fund, while programs with general and administrative type functions are allocated proportionally. For FY 2025-26, the cost of centralized functions such as Administration, Public Affairs and Finance are allocated between the Water and Wastewater funds, usually by a 70% - 30% split. The Water Reclamation Fund will also share in the future costs of these functions once fund reserves have been established and operating costs for the Water Reclamation Fund are better known and predictable. The percentage allocation can be adjusted for unique circumstances. For example, with the implementation of water budget-based rates, allocated costs for Customer Service were shifted from the Wastewater Fund to the Water Fund due to the increased cost of administering the new rates. Below is a table illustrating the Fund/Program relationship for FY 2025-26: Program Water Fund Wastewater Fund Reclamation Fund Total 1000 Governing Board $ 197,400 $ 84,600 $ - $ 282,000 2000 General Administration 954,600 409,400 - 1,364,000 2100 Human Resources & Risk Mgmt. 2,823,800 1,210,200 - 4,034,000 2200 Public Affairs 1,141,700 489,300 - 1,631,000 2300 Conservation 658,000 - - 658,000 3000 Finance & Accounting 1,113,700 477,300 - 1,591,000 3200 Information Technology 1,384,600 593,400 - 1,978,000 3300 Customer Service 1,666,000 714,000 - 2,380,000 3400 Meter Services 315,000 - - 315,000 4000 Engineering 1,106,000 474,000 - 1,580,000 5000 Water Production Administration 732,000 - - 732,000 5000-51 Wells 3,973,000 - - 3,973,000 5000-52 Boosters 1,066,000 - - 1,066,000 5000-54 Reservoirs 436,000 - - 436,000 5100 Water Treatment 1,735,000 - - 1,735,000 5200 Water Quality 607,000 - - 607,000 6000 Maintenance Administration 443,700 49,300 - 493,000 6100 Water Maintenance 3,924,000 - - 3,924,000 6200 Wastewater Collection - 990,000 - 990,000 6300 Water Reclamation - - 10,512,000 10,512,000 7000 Facilities Maintenance 1,584,800 679,200 - 2,264,000 7100 Fleet Maintenance 651,700 279,300 - 931,000 TOTAL OPERATING EXPENSES $ 26,514,000 $ 6,450,000 $ 10,512,000 $ 43,476,000 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. Fund/Program Relationship East Valley Water District | Financial Summary 49 The District projects that it will receive $56,889,000 in revenue during FY 2025-26 and has developed a budget plan to allocate $43,476,000 toward funding of program operations, $10,476,000 toward the amortization of outstanding debt and Other Non-Operating Expense, and $2,937,000 toward capital asset improvement and replacement resources. The table below presents a summary of revenue by type, and expenditures by cost category, and is followed by a discussion of revenue and expenditures. Water Fund Wastewater Fund Reclamation Fund FY 2025-26 Total REVENUE / SOURCES Water Sales $ 18,900,000 $ - $ 1,200,000 $ 20,100,000 Meter Charges 11,425,000 - - 11,425,000 Penalties 360,000 130,000 90,000 580,000 Wastewater System Charges - 6,870,000 - 6,870,000 Wastewater Treatment Charges - - 13,820,000 13,820,000 Other Operating Revenue 30,000 5,000 1,109,000 1,144,000 Miscellaneous Revenue 800,000 100,000 2,050,000 2,950,000 TOTAL REVENUE / SOURCES $ 31,515,000 $ 7,105,000 $ 18,269,000 $ 56,889,000 OPERATING EXPENSES Employment Expenses $ 11,188,800 $ 3,032,200 $ 2,254,000 $ 16,475,000 Water Costs 823,000 - - 823,000 Power Costs 3,225,000 - 1,712,000 4,937,000 Materials & Supplies 1,970,400 191,600 2,008,000 4,170,000 Contract Services 8,905,800 3,111,200 4,526,000 16,543,000 Other Operating Expenses 401,000 115,000 12,000 528,000 TOTAL OPERATING EXPENSES $ 26,514,000 $ 6,450,000 $ 10,512,000 $ 43,476,000 OTHER EXPENSES Debt Principal $ 1,028,000 $ 175,000 $ 4,527,000 $ 5,730,000 Debt Interest Expense 747,000 95,000 3,204,000 4,046,000 Other Non-Operating Expense 490,000 210,000 - 700,000 Contribution to Capital Replacement Reserves 2,736,000 175,000 26,000 2,937,000 TOTAL OTHER EXPENSES $ 5,001,000 $ 655,000 $ 7,757,000 $ 13,413,000 TOTAL OPERATING / OTHER EXPENSES $ 31,515,000 $ 7,105,000 $ 18,269,000 $ 56,889,000 NET SURPLUS (DEFICIT)$ - $ - $ - $ - The budget for FY 2025-26 is balanced and reflects East Valley Water District’s commitment to allocating anticipated resources to meeting the expectations of District ratepayers, creditors, and stakeholders. Budget Summary 50 FY 2025-26 Budget East Valley Water District receives 98% 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 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. Revenue Summary FY 2025-26 ProjectedRevenue 12% WastewaterCollection 20% Meter Charges 24% Wastewater Treatment 2% SNRC Non-RateRevenue 6% Other Charges 36% Water Sales 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 East Valley Water District | Financial Summary 51 Revenue History and Forecast (In Millions) Water sales are also reliant on consumer demand, which increases or decreases based on weather, water rates, and drought conditions. Two multi-year droughts since 2015 have led to state legislation introducing Water Use Efficiency (WUE) regulations and a long-term framework referred to as “Making Conservation a California Way of Life”. Under this framework water agencies will be held to an agency-wide water budget which will require the agencies to monitor customer usage. Fortunately, the past two winters have filled state reservoirs and allowed the State Water Project to announce that they can deliver water allocations to agencies in Southern California. However, WUE regulations will remain effective in wet years as well as dry years, so lower water sales are expected in the future as the result of this legislation. Construction within the region has increased over the last three to four years. Multiple moderate sized developments of between 200 and 300 units have requested District assistance with the formation of Community Facilities Districts (CFD), and one of the CFDs has new homes under construction. A state moratorium on collection of development impact fees on second dwelling units (Accessory Dwelling Units) on a developed parcel has also stimulated growth, but high interest rates have recently slowed market absorption of new homes. The most significant factors affecting District revenues in FY 2025-26 will be rate adjustments adopted in May 2024, and the fact that this coming fiscal year will be the first full year of operations for the SNRC Water Reclamation facility. Rate adjustments, with effective dates of July 1, 2025 (wastewater) and January 1, 2026 (water) are expected to impact revenues approximately 6.7% over the coming budget year. Forecasting revenue projections requires consideration of external factors that could impact the demand for water services. Elements factored into the FY 2025-26 forecasts include construction activity within the service area, challenges ramping up operations at the Sterling Natural Resource Center, and new legislation discussed below. In addition, water and wastewater rate revenues are highly reliant periodic rate adjustments for overall fiscal sustainability. FY 2022-23 Actual FY 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Projected FY 2026-27 Projected FY 2027-28 Projected Reclamation RevenueWastewater RevenueWater Revenue $29.2 $30.6 $33.4 $31.5 $32.4 $33.4 $6.2 $7.2 $7.8 $7.1 $7.3 $7.5 $10.6 $11.9 $15.5 $18.3 $19.4 $20.6 $5M $10M $15M $20M $25M $30M 52 FY 2025-26 Budget Also in FY 2025-26 continued efforts to bring anaerobic digesters at the SNRC to full capacity will also allow the District to produce energy from wastewater sludge and other high grade food waste accepted from third-party haulers. Revenue sources associated with the SNRC include: • Payment from the San Bernardino Valley District Local Resource Investment Program for recycled water used for recharge; • Tipping fees from liquid waste haulers; and • Energy produced by digesters will offset the facility’s power operating costs by between 50% and 90%. The actual percentage will depend on how efficiently the plant is operated and will have a significant impact on net revenue in the Reclamation Fund. There is also potential that excess power will be produced and sold to the SCE power grid. A more detailed description of the District’s major revenue sources, and related trends, is provided in the following sections. 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 2025-26 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 one HCF is equal to 748 gallons. The District bills for water consumption in three ascending ‘Water Budget’ rate tiers. Therefore, as customers’ water usage exceeds established tier widths or thresholds, water becomes more expensive. Water Budget tiers are unique in that tier width, or the number of units (HCF) billed at each tier, is determined based on the individual customer’s characteristics. For single and multi-family customers, the Tier 1 width is determined based on the number of occupants in a dwelling and is intended to allocate the customer with sufficient water for indoor health and safety needs. Tier 2 width is based on a customer’s landscaped square footage, and the measured evapotranspiration, or the rate at which plants and soil lose moisture during the month being billed. The Tier 2 budget is intended to allocate sufficient water for efficient irrigation of the landscaped square footage. Tier 3 is billed for water use in excess of the Tier 1 and 2 budgets and is deemed to be inefficient use. Institutional customers, which consist of schools and a correctional facility with mixed use meters, are billed similar to multi-family customers as they are allocated Tier 1 and 2 water budgets based on populations and irrigable landscape area serviced at the facilities, with usage in excess of those budgets billed at Tier 3 rates. 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 with meters providing water for just indoor business use are billed a flat rate for each unit of water used, a change that became effective in January 2025. The Water Fund section of this document includes more discussion of the new flat rate for non-residential customers. 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. East Valley Water District | Financial Summary 53 The table below summarizes water sales volume (HCF) by billing tier for the last four years, and also includes conservative projections for FY 2025-26. FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Actual FY 2024-25 Projected FY 2025-26 Budget Tier 1 $ 6,834,379 $ 7,097,090 $ 7,114,150 $ 6,917,000 $ 6,888,000 Tier 2 6,868,459 5,398,194 5,685,241 6,447,000 6,324,000 Tier 3 4,770,037 4,509,293 4,661,674 4,808,000 4,212,000 Commercial Flat Rate - - - 678,000 1,476,000 TOTAL $ 18,472,875 $ 17,004,577 $ 17,461,065 $ 18,850,000 $ 18,900,000 CUSTOMER CONSUMPTION IN HUNDRED CUBIC FEET Water consumption during FY 2025-26 is projected to decrease 5.4%, to 15.8 thousand-acre feet compared to the 16.7 thousand-acre feet for FY 2024-25. This decrease is a conservative projection following a year when sales rebounded after two years of low sales. Sales are likely to fall to a level below 16.0 thousand acre-feet as the result of rate adjustments and conservation-related legislation. 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 $18,900,000 for FY 2025-26. 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 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. $18,472,875 $17,004,577 $17,461,065 $18,850,000 $2M $6M $10M $14M $18M FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Estimated FY 2025-26 Budget 54 FY 2025-26 Budget Meter charges were included in the cost-of-service analysis and rate study completed in January 2024 and adopted in May 2024. The first phase of adjustments became effective in January of 2025. The remaining adjustment become effective in January of each of the following two years. Revenues have been slightly impacted by development activity in the last two years as there have been approximately 120 new residential connections added to the District system. Development could potentially add 50 new residential customers consistently over the next ten years, but those new customers have not been counted and factored into projections. Only rate adjustments scheduled for January 2026 have been included in Meter Charge projections which are $11,425,000 for FY 2025-26. 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 adopted at the public hearing in May 2024. Adopted rates included a modest 8.6% increase over three years beginning in July 2024. District wastewater customers include 19,605 single-family units and 11,090 multi-family units. These unit counts multiplied by the fixed charges were used to project residential collections revenue. 634 commercial and institutional accounts will be billed at a monthly flat rate plus a volumetric charge based on water usage (measured in HCF). The volumetric rate is the same for all commercial dischargers, with the exception of certain customers served by a mixed use meter, in which case the volumetric rate is moderately lower. Projected wastewater collection revenue for FY 2025-26 is $6,870,000. A more thorough discussion of the calculation of projected wastewater collection revenue can be found in the Wastewater Fund section of this document. $10.5M $9,192,297 $9,831,561 $10,149,282 $10,756,900 $8.5M $9M $9.5M $10M $11M FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Estimated FY 2025-26 Budget East Valley Water District | Financial Summary 55 WASTEWATER COLLECTION CHARGES Wastewater Treatment Revenue Wastewater generated by District customers is treated by the newly commissioned SNRC water recycling plant. District customers are charged for SNRC operations through SNRC treatment rates. 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 revenue of the new Water Reclamation Fund, and total charges projected for FY 2025-26 are $13,820,000. WASTEWATER TREATMENT REVENUE FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Estimated FY 2025-26 Budget Single-Family Multi-Family Commercial $4,828,526 $5,651,554 $6,064,548 $6,642,000 $6,870,000 $2M $4M $6M $8M Single-Family Multi-Family Commercial $9,764,357 $10,108,850 $10,746,724 $12,543,000 $13,820,000 $2M $4M $6M $8M $10M $12M FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Estimated FY 2025-26 Budget 56 FY 2025-26 Budget SNRC Non-Rate Revenue Commencement of operations at the Sterling Natural Resource Center in Spring 2024 meant that the District will assess and collect its own wastewater treatment revenue, and in addition, other revenue streams associated with the anaerobic digesters and recycled water will begin to be realized. Explanations of those revenues and projections for FY 2025-26 are presented below. LOCAL RESOURCE INVESTMENT PROGRAM (LRIP) In October 2018, the District signed an agreement to sell up to 11,000 acre-feet annually of recycled water produced by the SNRC to San Bernardino Valley. San Bernardino Valley will initially pay $173 per acre-foot for recycled water made available to recharge the local groundwater basin. The District estimates that the SNRC will produce and recharge 6,940 acre feet annually beginning in fiscal year 2025-26. As a result of recharging this water, the District will receive an LRIP Contribution from San Bernardino Valley of $1,200,000. WASTEWATER HAULER TIPPING FEES In order to maximize the power generation capacity of the SNRC digesters, activated wastewater sludge from the SNRC will be supplemented by soliciting disposal of high-grade food waste at the SNRC. The District projects that during FY 2025-26 an average 57,000 gallons of food waste will be received and processed daily, with a total of 13.8 million gallons expected to be processed during FY 2025-26, generating tipping fees of approximately $1,104,000. ELECTRICAL POWER GENERATION Gases released and burned by the anaerobic digesters will be used to generate electrical power to help offset the cost of supplying the SNRC with power. The District has also installed a two-way electric meter for situations where the digesters are generating surplus power, which can be sold to the power grid at $0.13 per kilowatt hour. The District does not anticipate any net revenue from power sales during FY 2025-26 as the digesters will not likely reach full capacity by the end of the year. The table below provides a summary of all projected non rate revenue from the SNRC for FY 2025-26. Revenue Type Unit of Measure Volume FY 2023-24 Fee Per Unit Non-Rate Revenue Total LRIP Contribution Acre Foot (AF) ~6,940 AF $ 173.00 $ 1,200,000 Tipping Fees Gallon 13.80 MG 0.08 1,104,000 Power Sales kWh - 0.13 - $ 2,304,000 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. East Valley Water District | Financial Summary 57 In prior years, revenue from charges related to opening a new customer account have been fairly consistent, so as in the prior year Initiation of Service fees are projected at $40,000. At the same time revenue related to charges for the collection of delinquent customer payments (delinquent fees, notice charges, disconnect/reconnect fees) have been significant, so the District has successfully implemented procedures to work closely with customers to reduce the number of service disconnections for non-payment. Revenue related to fees charges for collection efforts have been projected at $580,000 in the upcoming year. Other Income included in FY 2025-26 projections are interest and energy incentives. Projections for interest revenue have increased as yields are expected to remain at around 4% and the amount of investible funds held by the District will be fairly significant as the District has substantially completed the construction of the SNRC. Due to these factors, interest revenue is projected to be $1,100,000 across all funds for FY 2025- 26. In addition, the District expect to receive a Self Generation Incentive Payment of $1,850,000 from Edison for construction of the digesters. In total, the FY 2025-26 projection for Other Charges and Income is $3,570,000, which is calculated using adopted fees and an estimate of the number of occurrences for each type of fee based on historical trends. Other Charges $1,100,000Investment Income $300,000DisconnectNotice Charge $180,000DelinquentFees $100,000Reconnect Fees $40,000Initiation of Service $1,850,000Energy Incentives/Rebates Consistent budget review eases the transition of programs from year to year. 58 FY 2025-26 Budget Resources required for these expenditures are then appropriated from the District’s Water, Wastewater, and Water Reclamation Funds. Operating expenses are addressed on the following pages by broad cost category as listed in the Budget Summary on page 48. 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 79 full-time employees (FTEs) and three part-time (PT) employees, and also includes District contributions toward health insurance for current retirees. Employees are represented by two in-house bargaining units, or employee partnerships, which have negotiated a three-year MOU regarding wage and benefit adjustments through FY 2025-26. Salaries include regular wages, overtime (OT) 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 3% Cost of Living Adjustment (COLA) will also take effect in FY 2025-26 in addition to pay scale step increases of 5% available for employees who have not reached the top step in their pay range, subject to annual performance evaluations. With new positions at the SNRC being filled to ensure full-time oversight of the plant, and the terms of the new MOU, projected salaries expense for FY 2025-26 is $11,195,000. 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. Expenditure Summary $2,937,000 Contribution to Capital Replacement Reserves Expenditures by Category $16,543,000Contract Services $10,476,000 Debt Service $16,475,000 Employment Expenses Other Operating $528,000 $823,000Water Costs $4,170,000Materials & Supplies $4,937,000Power Costs East Valley Water District | Financial Summary 59 Benefit programs include a retirement plan with the California Public Employee Retirement System (CalPERS), a cafeteria health insurance plan, a deferred compensation plan with employer matching, and Worker’s Compensation and Medicare insurance. The District also contributes up to $850 per month toward retiree health insurance. The most significant employee benefit is the CalPERS retirement plan. Funding requirements for the plan are determined through actuarial valuations conducted by CalPERS and include contributions from both the District and the employees. Contributions from the District are made toward the plan’s annual normal cost, at a rate of 15.59% of payroll for employees hired prior to January 2013 (Classic), and 8.03% of payroll for post January 2013 hires (PEPRA), and as a lump sum against the plan’s unfunded liability. In recent years, unfunded pension liabilities have risen significantly as the plan struggles to meet the expectation administrators have set to earn a 7% return on plan assets each year. The rise of unfunded liabilities has led plan administrators to adopt 25-year amortization schedules, requiring increasing annual contributions to the plan, in an attempt to ensure that the plan is ultimately fully funded. However, instead of relying on the administrator plans for funding, the District has implemented an aggressive 15-year level-pay plan to amortize unfunded pension liabilities in order to reduce the cost of this liability. While the 15-year plan requires higher initial annual contributions of $1,165,981, the shorter amortization period was originally projected to save the District approximately $3.5 million. For FY 2025-26, however, the CalPERS required payment will increase to $1,407,678, exceeding the level-pay amount and effectively eliminating the projected savings moving forward. As a result, District-paid costs related to the retirement plan are projected to increase by 8.15%. During FY 2025-26, the District will explore potential options to pay down the unfunded pension liability to help stabilize future contribution rates. Healthcare costs are also split between the District and employees as the District pays 90% to 95% of premiums equal to the designated ‘benchmark’ insurance plan, with employees paying the balance. Premiums for the benchmark plan increased 9.49% between 2024 and 2025, therefore a similar increase for the cost of healthcare benefits is expected. Contributions toward retiree health insurance premiums are capped at $850 per month for FY 2025-26. Payments continue until the retiree becomes eligible for Medicare; 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 7.5% to $4,729,000 for FY 2025-26, while contributions toward retiree health insurance were determined by an actuary to be $551,000. SALARIES AND BENEFITS FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Estimated FY 2025-26 Budget $2M $4M $6M $8M $10M $12M $14M $16M $12,336,284 $13,057,464 $14,045,787 $15,179,824 $16,475,000 60 FY 2025-26 Budget Water Costs The District anticipates customer demand for approximately 15,796 acre-feet, or 5.15 billion gallons, of water during FY 2025-26. This is a projected 1.7% increase in demand compared to projections used for FY 2024-25. The expected increase is based on the baseline consumption data established for rate modeling, as well as actual consumption trends observed over the past five years. The increase reflects a return to more typical usage patterns following the unusually wet winter in early 2024, which had temporarily suppressed water demand. 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 $823,000 for FY 2025-26. WATER COSTS Groundwater The District obtains approximately 80% of its water supply through its wells by pumping water from the Bunker Hill Groundwater Basin. The fee associated with pumping groundwater is paid to the San Bernardino Valley Water Conservation District. The District’s total assessment for FY 2025-26 is projected to be $352,000. Surface Water Stockholder assessments paid to the North Fork Water Company (NFWC) on company shares owned by the District. Annual assessments are set to cover the costs of operating NFWC and includes delivery of Santa Ana River surface water, also based on the number of shares owned. The District owns approximately 7,151 shares and projects that the assessment will be $171,000 and is budgeted accordingly. Purchased Water Paid to San Bernardino Valley to buy State Water Project at $126 per acre foot (AF) when available. Due to the significant amount of rainfall and snow pack in California last winter, at least 50% of the normal allocation of water is available from the State Water Project. The District has budgeted $300,000 for up to 2,400 acre feet of water from the State Water Project in FY 2025-26. Purchased Water GW Council Assessment Surface Water $200K $400K $600K $800K $1M $373,096 $257,161 $1,072,976 $655,834 $823,000 FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Budget East Valley Water District | Financial Summary 61 WASTEWATER TREATMENT COSTS Annual payments to the SBMWD for wastewater treatment services has represented approximately 22% of the District’s annual budget in past years. Going forward, however, contracted treatment payments will be replaced by new debt service payments, SNRC treatment staff salaries, and other operating costs displayed in other sections of this budget, and also summarized in the Water Reclamation Fund. Power Costs Power costs include the electrical power for extracting groundwater through wells, treating imported water, surface water, and groundwater when necessary, and distributing water throughout nine pressure zones within the District. Significant power costs will continue to be incurred for the SNRC in FY 2025-26 as the new plant commences its second year of operation. Rates for electrical power have been steadily increasing over the past three years, resulting in significant budget pressure, despite the fact that the District has implemented various energy conservation measures including the installation of high efficiency pumps at several plants, and construction of a hydroelectric generation facility at the District’s surface water treatment plant (Plant 134), to help mitigate rising costs. In addition, District operations staff works closely with representatives from 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 continued to steadily increasing power costs. The addition of the SNRC had the potential to more than double the District’s power demand. In order to mitigate the cost, the District added anaerobic digesters to the SNRC project to convert wastewater sludge, supplemented with imported liquid food waste, into energy. The District contracted with SCE to install a two-way meter at the plant, so any excess energy produced by the digesters in the future can be sold on the power grid. During startup, and at least through FY 2025-26, the District expects to consume all power generated on-site for the operation of the plant and expects that the SNRC will be a net user of power. A budget of $1,712,000 has been established for net power costs at the SNRC for FY 2025-26. This amount is approximately half of the expected cost to run the plant without the self- generated capabilities with the digestor. Power costs for water production were approximately $2.1 million in FY 2024-25, well below the budgeted amount of $2,985,000. The District was expecting Edison rate increases to cause energy costs to rise significantly. Instead, a decrease in customer water usage resulted in lower than expected power costs for water production. In projecting power costs for FY 2025-26, the District again expects Edison rate increases, although the percentage is not yet known, and anticipates that the loss of three wells that are too close to the new regional recycled water recharge basins, will make it difficult to avoid peak time-of-use power rates until replacement wells can be placed in service. Under these circumstances, the District expects power costs for water production to be $3,225,000 in FY 2025-26 Based on the above, the total budget for power to run production facilities in FY 2025-26 is $4,937,000. 62 FY 2025-26 Budget 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 48% to $4,170,000 for FY 2025-26. Significant variances between prior year Contract Services costs and projections for the upcoming year is due to Water Reclamation’s budget of $2,000,000 for chemicals, a new program expense. Wells Boosters $1M $2M $3M $4M $5M Water Treatment Wastewater Treatment $2,565,150 $3,645,314 $4,045,289 $5,080,496 $4,937,000 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Estimated FY 2025-26 Budget Materials &Supplies $40,000Oce Supplies $2,087,000 Chemicals $151,000Small Tools $1,892,000 Plant Repair Materials East Valley Water District | Financial Summary 63 Contract Services Contract services are proposed by program managers to fund ongoing needs for outside services, and periodic technical expertise to help meet Program Goals and Objectives. For administrative programs, outside services include, but are not limited to, legal services, banking and payment processing, printing, and insurance, while technical services would include rate consultants, engineering consultants, and legislative advocates. Operating and maintenance programs primarily use ongoing outside services such as paving, electrical repair, landscape maintenance, and equipment maintenance. The budget for contract services is expected to increase 8.4% to $16,543,000 for FY 2025- 26. Significant variances between prior year contract services costs and projections for the upcoming year include: • A second full year of operations at the SNRC Water Reclamation Facility will add over $4.6 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 2025-26 total $528,000 and includes conservation rebates, professional development, memberships and dues, licensing, meeting expenses, employee recognition, and education assistance. The District emphasizes professional growth and leadership, encouraging employees to utilize resources made available by the District to continue learning through formal education, certifications, and collaboration with other agencies responsible for delivering similar service to its ratepayers. ContractServices $10,630,000 Professional & Support Services$2,882,000 Utilities & Other $2,452,000 Insurance $191,000Printing & Mailing $388,000Building & LandscapeMaintenance OtherOperating Expenses $85,000 Conservation Rebates $153,000 Memberships & Dues $185,000 Professional Development $51,000Meetings $35,000EmployeeRecognition $19,000Other 64 FY 2025-26 Budget The SWRCB declared that the project was essentially complete in December 2023, establishing the date for debt service payments to begin in December 2024. A more complete discussion about the funding for this project and annual debt service of approximately $7.7 million annually is included in the discussion about SWRCB loans below. The District issues debt for the purpose of building and improving capital assets, and to refund/refinance previously issued debt when interest rates and other circumstances make it financially prudent. In September 2020, the District refunded its outstanding 2010 and 2013 Revenue bonds with 2020 Series A & B Refunding Revenue bonds in order to achieve annual interest savings of approximately $400,000. The District’s Debt Management Policy states that debt may only be issued to finance capital projects that have been incorporated into the District’s Capital Improvement Program. Additionally, debt will only be used to finance projects if it is the most cost-effective means of doing so and the District’s credit rating will not be negatively impacted. District policy prohibits the issuance of long-term debt to fund operating activities. Types of Debt REVENUE BONDS Revenue bonds are issued to finance the construction or upgrade of water and wastewater facilities. Debt service on revenue bonds is payable out of water and wastewater system net revenue. • 2020A Refunding Revenue Bonds: Issued to refund outstanding 2010 Revenue bonds and save $380,000 annually on interest. The 2020A bonds have an outstanding balance of $13,030,000, and bear (tax-exempt) interest ranging from 3.0% to 5.0%. • 2020B Refunding Revenue Bonds: Issued to refund outstanding 2013 Revenue bonds, which had been issued to finance the construction of a new administration and operations headquarters. The 2020B bonds outstanding total is $12,505,000, and bear (taxable) interest ranging from 0.42% to 2.93%. SWRCB LOANS SWRCB loans are utilized to finance the construction or upgrade of clean drinking water or recycled water projects. Debt service is payable out of water and wastewater system net revenue. • Treatment Plant 134: Borrowed to finance upgrades to treatment technology at the District’s Plant 134. The total loan outstanding is $4,668,000 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. As of June 2025, the full amount has been drawn down. Interest on the loan is 1.8%, which has accrued on all draws against the loan during the project construction period. The accrued interest will be added to the loan balance bringing the total amount to be repaid to $178 million. Annual debt service on this total will be approximately $7.7 million annually. East Valley Water District’s debt service payments in FY 2025-26 will be $9,776,000 on total outstanding debt of $203,948,000 as of June 30, 2025. These amounts include the annual debt service payment, and outstanding SWRCB loan balance on the SNRC Water Reclamation Plant that was commissioned in May of 2024. Debt Overview East Valley Water District | Financial Summary 65 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 $271,500 and bear interest at 0%. Other Long-Term Obligations On November 21, 2017 the District entered into a Settlement Agreement (Agreement) with SBMWD that defined the terms under which the District would stop sourcing wastewater treatment services to SBMWD in accordance with a 1957 Joint Powers Agreement, and would construct and operate its own water reclamation facilities capable of treating all wastewater flows generated by District customers. One of the terms of the Agreement is that the District will pay ten annual installments of $700,000 to SBMWD to help offset the revenue loss resulting from the District’s transition. The District made its second $700,000 payment in May 2025 as part of the FY 2024-25 budget. These payments will continue annually through FY 2032-33. WATER FUND WASTEWATER FUNDS Fiscal Year Principal Interest Principal Interest Total 2025-26 $ 490,000 $ - $ 210,000 $ - $ 700,000 2026-27 490,000 - 210,000 - 700,000 2027-28 490,000 - 210,000 - 700,000 2028-29 490,000 - 210,000 - 700,000 2029-30 490,000 - 210,000 - 700,000 2030-33 1,470,000 - 630,000 - 2,100,000 TOTAL $ 3,920,000 $ - $ 1,680,000 $ - $ 5,600,000 Impact of Current Debt Levels A schedule of FY 2025-26 debt service payments, by debt issue, is shown in the schedule on the following page. The District’s Debt Management Policy stipulates that debt may only be issued to finance capital projects. 66 FY 2025-26 Budget DEBT SERVICE PAYMENTS WATER FUND WASTEWATER FUNDS Debt Issue Principal Interest Principal Interest Total 2020A Refunding Revenue Bonds $ 575,000 $ 525,000 $ - $ - $ 1,100,000 2020B Refunding Revenue Bonds 200,000 222,000 175,000 95,000 692,000 SWRCB Loan-Treatment Plant 234,000 - - - 234,000 SWRCB Loans - Assessment Districts 19,000 - - - 19,000 SWRCB Loan - SNRC - - 4,527,000 3,204,000 7,731,000 TOTAL $ 1,028,000 $ 747,000 $ 4,702,000 $ 3,299,000 $ 9,776,000 As detailed above, debt service for FY 2025-26 on all outstanding District debt is $9,776,000. This amount represents 17.2% of the District’s total budget for FY 2025-26. 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. DEBT SERVICE THROUGH MATURITY WATER FUND WASTEWATER FUNDS Fiscal Year Principal Interest Principal Interest Total 2025-26 $ 1,028,000 $ 747,000 $ 4,702,000 $ 3,299,000 $ 9,776,000 2026-27 1,063,000 715,000 4,885,000 2,994,000 9,657,000 2027-28 1,098,000 681,000 4,916,000 3,022,000 9,717,000 2028-29 1,133,000 646,000 5,002,000 2,934,000 9,715,000 2029-30 1,168,000 608,000 5,093,000 2,844,000 9,713,000 2030-35 6,409,000 2,434,000 26,884,000 12,803,000 48,530,000 2035-40 7,385,000 1,448,000 29,440,000 10,252,000 48,525,000 2040-45 7,154,000 371,000 31,978,000 7,440,000 46,943,000 2045-50 - - 33,846,000 4,489,000 38,335,000 2050-55 - - 29,337,000 1,333,000 30,670,000 TOTAL $26,438,000 $ 7,650,000 $ 176,083,000 $ 51,410,000 $ 261,581,000 East Valley Water District | Financial Summary 67 The graph below presents total debt service on existing debt through maturity. DEBT SERVICE Bond Ratings Credit risk is the potential that creditors will suffer financial loss if the District fails to fulfill its obligation to make timely payments to holders of District debt. This risk is measured by the assignment of a rating to the District’s bonds by a nationally recognized credit rating organization. Strong credit ratings provide benefits to District ratepayers in the form of reduced debt service costs. Prudent financial management policies resulted in a bond rating of AA- from both Standard & Poor’s and Fitch ratings when the District issued 2020 A & B series revenue bonds in September 2020. Fitch affirmed this rating as the result of a review conducted in June 2024. The AA- rating is considered a high quality, investment grade rating. Debt Capacity and Debt Service Coverage The District has no policy limitation, and there is no statutory limitation, on the amount of debt that may be issued by the District, however, bond covenants for the District’s 2020 Revenue Bonds require an additional bonds test prior to issuing additional obligations payable from Net Operating Revenue. The test determines the amount of additional debt that may be issued by calculating the amount of net revenue available for additional debt service payments. The Revenue Bond documents, as well as loan agreements with the SWRCB and US Bank, require that the District maintain a debt service coverage ratio equal to 1.2 or 120 percent of annual debt service or greater. The FY 2025-26 Budget provides the net revenue to debt ratios shown in the table below. $2M $4M $6M $8M $10M Water Fund Wastewater Fund Reclamation Fund 20 2 5 - 2 6 20 2 6 - 2 7 20 2 7 - 2 8 20 2 8 - 2 9 20 2 9 - 3 0 20 3 0 - 3 1 20 3 1 - 3 2 20 3 2 - 3 3 20 3 3 - 3 4 20 3 4 - 3 5 20 3 5 - 3 6 20 3 6 - 3 7 20 3 7 - 3 8 20 3 8 - 3 9 20 3 9 - 4 0 20 4 0 - 4 1 20 4 1 - 4 2 20 4 2 - 4 3 20 4 3 - 4 4 20 4 4 - 4 5 20 4 5 - 4 6 20 4 6 - 4 7 20 4 7 - 4 8 20 4 8 - 4 9 20 4 9 - 5 0 20 5 0 - 5 1 20 5 1 - 5 2 20 5 2 - 5 3 20 5 3 - 5 4 A 68 FY 2025-26 Budget DEBT SERVICE COVERAGE Water Fund Wastewater Fund Reclamation Fund Total REVENUE Sales and Services $ 30,325,000 $ 6,870,000 $ 15,020,000 $ 52,215,000 Other Charges 390,000 135,000 90,000 615,000 Interest & Miscellaneous Revenue 800,000 100,000 1,309,000 2,209,000 Grants / Self-Generation Incentives - - 1,850,000 1,850,000 TOTAL REVENUES $ 31,515,000 $ 7,105,000 $ 18,269,000 $ 56,889,000 OPERATING EXPENSES Programs $ 26,514,000 $ 6,450,000 $ 10,512,000 $ 43,476,000 TOTAL OPERATING EXPENSES $ 26,514,000 $ 6,450,000 $ 10,512,000 $ 43,476,000 NET REVENUE $ 5,001,000 $ 655,000 $ 7,757,000 $ 13,413,000 ANNUAL DEBT SERVICE $ 2,265,000 $ 480,000 $ 7,731,000 $ 10,476,000 DEBT COVERAGE RATIO 2.21 1.36 1.00 1.28 The District’s budget reflects a conservative and disciplined approach. East Valley Water District | Financial Summary 69 The Annual Budget FRAMEWORK FOR POLICY DECISIONS 70 FY 2025-26 Budget For financial reporting purposes, each of the District’s activities report Equity, the excess of Assets and Deferred Outflows over Liabilities and Deferred Inflows, as Net Position. Also for financial reporting purposes, Net Position is reported in three distinct classifications: For budgeting purposes, and for purposes of this discussion, the three classifications above will be referred to as designations of the District’s equity, rather than of Net Position. Restricted and unrestricted equity are spendable reserves, Equity Invested in Capital Assets is not. Equity Invested in Capital Assets maintains a running balance of resources previously spent on the acquisition and construction of capital assets, less outstanding long-term debt, and net of depreciation of those capital assets over time. It does not include spendable funds that are available for appropriation and is therefore not considered as part of the budget process. Restricted Net Position may include any or all of the following in a given year: 1) unspent proceeds from the issuance of long-term debt, 2) developer paid capacity fees, and 3) debt service reserves. Unspent debt proceeds and capacity fees are available for appropriation for capital projects, but only as defined by contractual agreement with bondholders and other creditors, or by studies adopted by the District that state the purpose and amount of capacity fees to be collected from developers. Debt proceeds are used only for projects specifically stated in debt agreements, and capacity fees are used only for construction of projects that expand the capacity of the District’s infrastructure. Debt service reserves may only be used to pay debt service on the associated debt, if and when needed. The amount of funds required to be held in this reserve is equal to one year’s debt service. Unrestricted fund equity is the residual after the balances in the other two classifications of equity have been determined. The District has the most flexibility in determining how unrestricted equity may be appropriated, and the Governing Board has done so by establishing a Reserve Funds Policy, which is summarized on pages 38-39. The policy, which was revised in February 2024, establishes two designations for unrestricted equity, and has defined their purpose, order of priority for funding, target levels, and uses. Those unrestricted designations are the: The Operating Reserve has the highest priority and is funded first out of any excess of revenue over expenditures at the end of each fiscal year. When the Operating Reserve has reached its target level of 120 days operating expenses, excess funds are applied to the Capital Replacement Reserve with a minimum target level of twice the annual average of the District’s five-year Capital Improvement Program, and a maximum level equal to the five-year CIP total. If the Capital Replacement Reserve reaches its maximum target, excess funds are to be placed back in the Operating Reserve. Expenditure of funds out of any of the Unrestricted Reserve categories will be replenished with excess Operating Reserves, and then by transfer from reserves with lower priority. The District’s Governing Board may take action to transfer balances between the Unrestricted Reserve designations at any time. As previously discussed, EVWD operates water, wastewater collection, and water reclamation enterprise activities; the District does not have governmental or non-major enterprise activities as part of its operational structure. Fund Equity and Reserves Invested in Capital Assets Restricted Unrestricted Operating Reserve Capital Replacement Reserve East Valley Water District | Financial Summary 71 Enterprise Reserves Water Fund Reserves The Water Fund is projected to have $8,840,000 in Operating Reserves, $3,101,071 in the Capital Replacement Reserve, and $5,888,717 in Restricted Reserves at the end of FY 2024-25. The Water Reserves table presents changes to the Water Fund unrestricted and restricted equity, broken down by reserve designation, over a five-year period, and includes beginning balances, annual activity, and ending balances. Target levels for each of the reserve designations, in accordance with the District’s reserve policy, are also shown. UNRESTRICTED RESERVES Funding for unrestricted reserves is built into rates when the District conducts a cost-of-service analysis; this occurs approximately every five years. Rate adjustments were last adopted in May 2024 and will become effective in three phases on January 1st of each year, 2025, 2026, and 2027. Modeling for the new rates continued to focus on collecting at least 35% of revenue from the fixed system (meter) charges as California continues living with droughts and mandatory conservation, which results in reduced water sales. The unrestricted Operating Reserve balance will remain near its target level during the fiscal year, while funds from the unrestricted Capital Replacement Reserve will be drawn upon to supplement operating revenue for many important capital projects including drilling a rehabilitation of an existing tank. RESTRICTED RESERVES Restricted Reserves are from the collection of water capacity fees from new development. Although the receipt of capacity fees is not included in revenue projections and budgeted, accumulated fees are available for appropriation for certain capital improvement projects. $3,500,000 of restricted reserve balances are budgeted for use toward construction of a new well during FY 2025-26, leaving a projected year-end balance of $5,888,717. Operating Reserve Water Enterprise Capital Replacement Reserve Capital Replacement Reserve Operating Reserve Wastewater Enterprise Capacity Fees Capacity Fees Capital Replacement Reserve Operating Reserve Water Reclamation Enterprise Capacity Fees Water Unrestricted Reserves Wastewater Unrestricted Reserves Water Reclamation Unrestricted Reserves Restricted Reserves 72 FY 2025-26 Budget UNRESTRICTED AND RESTRICTED EQUITY — WATER FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Actual FY 2024-25 Projected FY 2025-26 Budget WATER OPERATING RESERVE Maximum Target Level 120 Days Operations $ 6,366,000 $ 6,645,000 $ 7,245,000 $ 8,385,000 $ 8,840,000 Beginning Fund Balance 6,031,622 8,405,421 6,645,000 7,245,000 8,385,000 Revenue 29,273,276 28,250,377 29,367,492 31,515,000 33,820,000 Operating / Non-Operating Expenditures (22,435,689) (21,919,678) (26,792,163) (27,751,000) (28,744,000) Capital Expenditures (5,131,241) (7,134,813) (1,858,321) (2,736,000) (4,841,000) Debt Principal Payments (2,120,011) (2,161,691) (3,067,553) (1,028,000) (1,383,000) Land Sale / Transfer CIP from Wastewater 2,448,816 - - - - Transfer to Other Reserves 338,648 1,205,384 2,950,545 1,140,000 1,603,000 ENDING WATER OPERATING RESERVE $ 8,405,421 $ 6,645,000 $ 7,245,000 $ 8,385,000 $ 8,840,000 WATER CAPITAL REPLACEMENT RESERVE Minimum Target Level $ 10,000,000 $ 10,000,000 $ 10,314,000 $ 11,285,000 $ 13,100,000 Beginning Fund Balance 10,338,648 10,000,000 8,794,616 5,844,071 4,704,071 Transfer from (to) Other Reserves (338,648) (1,205,384) (2,950,545) (1,140,000) (1,603,000) Capital Expenditures - - - - - ENDING WATER CAPITAL REPLACEMENT RESERVE $10,000,000 $ 8,794,616 $ 5,844,071 $ 4,704,071 $ 3,101,071 TOTAL UNRESTRICTED RESERVES - WATER $ 18,405,421 $ 15,439,616 $ 13,089,071 $ 13,089,071 $ 11,941,071 WATER RESERVES $18,405,421 $15,439,616 $13,089,071 $13,089,071 $11,941,071 $3,560,177 $4,527,579 $5,849,987 $7,588,717 $5,888,717 $5M $10M $15M $20M FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Estimated FY 2025-26 Budget Unrestricted Restricted East Valley Water District | Financial Summary 73 WATER CAPACITY FEES FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Actual FY 2024-25 Projected FY 2025-26 Budget WATER CAPACITY FEES No Target Level $ - $ - $ - $ - $ - Beginning Fund Balance 2,576,874 3,560,177 4,527,579 5,849,987 7,588,717 Fees Collected 983,303 967,402 1,322,408 2,453,993 1,800,000 Capital Expenditures - - - (715,263) (3,500,000) ENDING WATER CAPACITY FEES $ 3,560,177 $ 4,527,579 $ 5,849,987 $ 7,588,717 $ 5,888,717 TOTAL RESTRICTED RESERVES - WATER $ 3,560,177 $ 4,527,579 $ 5,849,987 $ 7,588,717 $ 5,888,717 Wastewater Fund Reserves The Wastewater Fund is projected to have $1,283,509 in Operating Reserves, $0 in the Capital Replacement Reserve, and $5,235,848 in Restricted Reserves. The following table presents changes to the Wastewater Fund unrestricted and restricted equity, broken down by reserve designation, over a five-year period, and includes beginning balances, annual activity, and ending balances. The target levels established for each reserve designation, in accordance with the District’s Reserve Funds Policy, are also shown. UNRESTRICTED AND RESTRICTED EQUITY — WASTEWATER FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Actual FY 2024-25 Projected FY 2025-26 Budget WASTEWATER OPERATING RESERVE Maximum Target Level 120 Days Operations $ 1,850,000 $ 1,900,000 $ 1,620,000 $ 2,005,000 $ 2,150,000 Beginning Fund Balance 2,540,325 538,315 1,937,509 1,937,509 1,937,509 Revenue 5,189,870 5,795,316 6,576,431 7,105,000 7,676,000 Operating / Non-Operating Expenditures (4,070,081) (4,913,771) (3,544,775) (6,755,000) (8,155,000) Capital Expenditures (2,951,799) (2,951,799) (4,008,968) (175,000) - Debt Principal Payments (170,000) (175,000) (175,000) (175,000) (175,000) SRF Loan Proceeds - Net - 10,386,573 - - - Transfer to Other Reserves - (6,742,125) - - Transfer CIP to Other Fund - - - - - ENDING WASTEWATER OPERATING RESERVE $ 538,315 $ 1,937,509 $ 785,197 $ 1,937,509 $ 1,283,509 74 FY 2025-26 Budget FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Actual FY 2024-25 Projected FY 2025-26 Budget WASTEWATER CAPITAL REPLACEMENT RESERVE Minimum Target Level $ 10,000,000 $ 10,000,000 $ 280,000 $ 280,000 $ 280,000 Beginning Fund Balance - - - - - Transfer from Other Reserves - - - - - Loans from (to) Other Reserves - - - - - Capital Expenditures - - - - - ENDING WASTEWATER CAPITAL REPLACEMENT RESERVE $ - $ - $ - $ - $ - TOTAL UNRESTRICTED RESERVES - WASTEWATER $ 538,315 $ 1,937,509 $ 785,197 $ 1,937,509 $ 1,283,509 UNRESTRICTED RESERVES FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Actual FY 2024-25 Projected FY 2025-26 Budget WASTEWATER CAPACITY FEES No Target Level $ - $ - $ - $ - $ - Beginning Fund Balance 1,837,888 2,701,340 3,144,381 3,756,724 4,635,848 Fees Collected 863,452 443,041 612,343 879,124 600,000 Debt Issued - - - - - Capital Expenditures - - - - - ENDING WASTEWATER CAPACITY FEES $ 2,701,340 $ 3,144,381 $ 3,756,724 $ 4,635,848 $ 5,235,848 TOTAL RESTRICTED RESERVES - WASTEWATER $ 2,701,340 $ 3,144,381 $ 3,756,724 $ 4,635,848 $ 5,235,848 The accumulation of wastewater Operating and Capital Replacement reserves have been limited due to the investment in construction of the SNRC, a water reclamation facility for which the Water Reclamation Fund was established in FY 2022-23. Prior to establishing the Water Reclamation Fund, the Wastewater Fund financed costs not covered by a grant/loan agreement provided by the State Water Resources Control Board (SWRCB) affecting its ability to build reserves, in spite of the fact that rate adjustments were implemented in each of the years beginning with FY 2021-22. The FY 2025-26 balanced budget projects decreases to wastewater fund unrestricted reserves during the fiscal year; total unrestricted reserves are projected to end at $1,283,509. East Valley Water District | Financial Summary 75 RESTRICTED RESERVES Restricted Reserves are primarily from the collection of wastewater capacity fees from new development. The table also includes balances and activity for restricted Wastewater capacity fees. Although the receipt of capacity fees is not included in revenue projections and budgeted, accumulated fees are available for appropriation for certain capital improvement projects. The projected restricted reserve balance at the end of FY 2025-26 is $5,235,848. The projected total for all Wastewater Fund reserves at the end of FY 2025-26 is $6,519,357. WASTEWATER RESERVES Water Reclamation Fund Reserves The Water Reclamation Fund was established to account for the revenues and expenditures related to the Sterling Natural Resource Center water reclamation plant which began operations in January of 2024. Target levels will be established as they are for other funds, in accordance with the District’s Reserve Funds Policy. FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Actual FY 2024-25 Projected FY 2025-26 Budget RECLAMATION OPERATING RESERVE Maximum Target Level 120 Days Operations $ - $ - $ 3,700,000 $ 2,580,000 $ 3,505,000 Beginning Fund Balance - - 6,742,125 3,700,000 2,580,000 Revenue 9,764,357 10,108,850 11,292,394 18,269,000 18,914,000 Operating/Non Operating Expenditures (9,764,357) (10,286,707) (2,438,337) (13,716,000) (10,450,000) Capital Expenditures - - (9,630,053) (26,000) (4,797,000) Transfer From Other Reserves - 6,742,125 - - - Debt Principal Payments - - - (4,527,000) (4,212,000) ENDING RECLAMATION OPERATING RESERVE $ - $ 6,742,125 $ 3,700,000 $ 2,580,000 $ 3,505,000 $1M $2M $3M $4M $5M Unrestricted Restricted $3,144,381 $538,315 $2,701,340 $3,756,724 $4,635,848 $5,235,848 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Estimated FY 2025-26 Budget $1,937,509 $785,197 $1,937,509 $1,283,509 76 FY 2025-26 Budget FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Actual FY 2024-25 Projected FY 2025-26 Budget RECLAMATION CAPITAL REPLACEMENT RESERVE Minimum Target Level $ - $ - $ 260,000 $ 660,000 $ 2,310,000 Beginning Fund Balance - - - 2,266,129 3,386,129 Transfer From Other Reserves - - - - (2,237,000) Loans From (To) Other Reserves - - 2,266,129 1,120,000 - Capital Expenditures - - - - - ENDING WATER CAPITAL REPLACEMENT RESERVE $ - $ - $ 2,266,129 $ 3,386,129 $ 1,149,129 TOTAL UNRESTRICTED RESERVES - RECLAMATION $ - $ 6,742,125 $ 5,966,129 $ 5,966,129 $ 4,654,129 RECLAMATION DEBT SERVICE RESERVE Target - One Years Annual Debt Service $ - $ - $ - $ - $ 767,000 Beginning Fund Balance - - - - - Transfer From Other Reserves - - - - 767,000 ENDING RECLAMATION DEBT SERVICE RESERVE $ - $ - $ - $ - $ 767,000 RECLAMATION CAPACITY FEES No Target Level $ - $ - $ - $ - $ - Beginning Balance 1,860,609 2,736,642 3,008,522 3,630,159 4,558,777 Capacity Fees Received 876,033 449,737 621,637 928,618 600,000 Expenditures / Transfers to Other Reserves - (177,857) - - (1,900,000) ENDING RECLAMATION CAPACITY FEES $ 2,736,642 $ 3,008,522 $ 3,630,159 $ 4,558,777 $ 3,258,777 TOTAL RESTRICTED RESERVES - RECLAMATION $ 2,736,642 $ 3,008,522 $ 3,630,159 $ 4,558,777 $ 4,025,777 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 over the next ten years. As with other reserve funds, there is a clear prioritization and target for all types. Projections for the Reclamation Fund operations through the end of FY 2025-26 estimate that the Fund will have Debt Service Reserve, and the balance of $767,000 will begin to build an Operating Reserve. FY 2025-26 will be the first full year of operations for the Reclamations plant, and the first payment on the state loan financing the plant construction is due in December. East Valley Water District | Financial Summary 77 RESTRICTED RESERVES The tables for accumulated wastewater treatment capacity fees, which belong to the Reclamation Fund, and for the new Debt Service Reserve are shown above. The District began collecting wastewater treatment capacity fees when construction began on the SNRC, for this reason the accumulation of restricted funds began occurring prior to the creation of the Water Reclamation Fund. The debt service reserve, which is required by section 3.7(a) of the SNRC loan funding agreement with the State Water Resources Control Board, must have a balance equal to one- tenth year’s debt service on the loan from the SWRCB, approximately $767,000 (the Target Level). The projected total for all Reclamation Fund reserves at the end of FY 2025-26 is $8,679.906. RECLAMATION RESERVES $3,008,522 $1M $3M $5M $7M Unrestricted Restricted $2,736,642 $3,630,159 $4,558,777 $3,258,777 $6,742,125 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 Estimated FY 2025-26 Budget $5,966,129 $5,966,129 $5,421,129 The District has adopted a Reserve Funds Policy as part of prudent financial planning and to ensure sufficient funding for current and future needs. 78 FY 2025-26 Budget The 5-Year Work Plan and long-range financial planning serve conjunctively as tools for future decision making regarding the District’s spending and projected revenues. As a multi-beneficial organization that provides water, wastewater, and water reclamation services, the District’s long-term planning efforts consider factors such as the age, condition, and efficiency of infrastructure used to deliver services to District customers and maintaining compliance with changing regulations. Over the last decade, the cyclical droughts in California has raised water supply reliability, operational flexibility, and water quality, as prominent issues in strategic planning. Based on these identified priorities, the District has developed goals that will have a significant impact on the District’s financial planning and Budget over the next few years, including: • Cost recovery through user rates and development fees, as applicable; • Address rapidly rising energy costs and green energy regulations; • Ensure water quality and supply reliability; • Maintain organizational culture and staff capabilities; and • Replace aging pipelines and build new groundwater wells. The achievement of these goals is subject to certain assumptions but will remain a priority as they support the District Vision and 5-Year Work 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 5-Year Work Plan. Long-Range Financial Plan Cost Driver Assumption Link to District and 5-Year Work Plan Utility User Rates Support Reasonable Costs Related to Existing Customers; Development Fees Pay for New Infrastructure • Water usage per capita will not increase due to conservation efforts • Development will add 50 customers annually to District service area • Practice Transparent Fiscal Management ―Conduct Cost-of-Service Analysis for Rates • Enhance Planning Efforts for Future Demand Energy Costs and Green Energy Regulations • Digesters at SNRC will support energy requirements of the plant • Incentives and federal credits will help defray the cost of additional self- generation projects • Identify Opportunities to Optimize Natural Resources ―Analyze Alternative Energy Sources • Enhance Planning Efforts that Respond to Future Demand East Valley Water District | Financial Summary 79 User Rates and Development Fees from Reserves The District updated all water and wastewater user rates in May 2024 to help ensure that operating revenue can cover the cost of operations, debt service costs and help maintain reserves. Updated rates were based on a three- year Cost-of-Service Analysis and financial model, that considered the rapidly escalating cost of capital improvement projects that are needed to replace aging facilities. Adjustments will occur in three phases, one each during the fiscal years 2024-25, 2025-26, and 2026-27. Developer capacity fees were also updated as the result of an independent capacity fee study. These fees are intended to make sure developers pay for their share of the cost of capacity in District facilities, especially when construction costs are rising so quickly. However, recent state statutes intent on relieving housing shortages in California have placed a moratorium on collection of development impact fees on ADUs, Accessory Dwelling Units built on parcels with a previously existing dwelling unit. Construction of ADUs is heavy within the Districts service area, so under the moratorium, the challenge will be to maintain system capacity for new construction that is subject to District capacity fees. 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. Cost Driver Assumption Link to District and 5-Year Work Plan Water Quality and Reliability • Recycled water from SNRC will provide sustainable supply for recharge • Existing treatment processes will need to be enhanced to ensure product water meets standards • Ensure Safe & Reliable Services ―Complete Construction of SNRC ―Construct Third Monitoring Well Near Recycled Water Recharge ―Evaluate Feasibility of Salt Mitigation Organizational Culture / Staff Capabilities • Staff training, engagement and knowledge transfer will facilitate exceptional customer relations • Maximize Internal Capabilities Through Professional Development ―Develop Succession Plan ―Evaluate IT, SNRC Staffing ―Enhance Emergency Preparedness Training Aging Infrastructure • District’s rates will provide revenue for some, but not all, capital improvement projects • Grant funding will be available to help pay for the District’s infrastructure improvements • Dedicate Effort Toward System Maintenance & Modernization ―Pipeline Replacement Program ―Water Reservoir Rehabilitation Program ―New Well Construction ―Pursue Alternative Funding Sources 80 FY 2025-26 Budget Energy Costs and Green Energy Regulations Construction on the Sterling Natural Resource Center (SNRC) was completed in FY 2023-24, including anaerobic digesters designed to generate three megawatts of electrical power. This amount of power self-generation should allow the District to power the plant and produce excess energy to sell back to the Edison grid as soon as FY 2026-27. In addition, state regulation requiring the integration of electric vehicles into the District’s fleet and the furtherance of other green energy goals, and the rising cost of purchased power, compel the District to explore more clean energy generating options, particularly while there are federal incentives to invest in clean energy alternatives. Over the next five years the District will consider the addition of solar panels and Tesla batteries and consider participating in a regional effort to acquire hydro facilities, to help alleviate the pressures of rising energy prices and new regulations. Water Quality and Reliability The District built a State Water Project turnout at its Surface Water Treatment Plant in order to utilize as much imported water as feasible. This strategy would preserve water in the groundwater basin and allow the District to take delivery of, and treat, water at a high elevation, using gravity to assist with water distribution to customers. The alternative is to incur significant pumping costs by extracting water with wells and then pumping it uphill for distribution. Unfortunately, California continues to experience cyclical droughts, in which State Water Project deliveries are unreliable. For FY 2024-25, State Water Project contractor agencies, the source for the District’s imported water, were told their annual allocation of imported water will be 50%, whereas, in the previous fiscal year, the supply provided was 100% of requested. As a result, EVWD will experience fluctuating power costs to pump groundwater over the next five years to offset the unreliability of available imported water. Organizational Culture and Staff Capabilities An aging workforce, emerging technology, inflation, and beginning a new enterprise activity with the completion of the Sterling Natural Resource Center (SNRC) water recycling facility have highlighted the need for the District to remain competitive regarding staff compensation. This is necessary in order to attract and retain talented team members to operate the state-of-the-art SNRC, or implement and maintain new technologies, while at the same time the District must remain prudent with the public funds used to pay compensation. Inflationary pressures resulted in an average of 4.3% COLA adjustments to salaries during the current three-year Memorandum of Understanding with staff and will likely result in similar percentages being negotiated for future years when the current MOU ends in June 2026. Aging Infrastructure As mentioned under User Rates, adopted rates included funding for the Capital Improvement Program including water main replacements. The District must also replace three wells that were taken off-line due to their proximity to SNRC recycled water recharge basins, and the rapidly increasing cost to build new water tanks/reservoirs makes it imperative that the District allocate resources for the rehabilitation of existing tanks. Having the funding available to proactively contract for rehabilitation projects, rather than reacting to reports of system leaks or failures, allows the District to select the most opportune time to take plants or infrastructure off-line, minimizing overtime, avoiding excess power to run alternate facilities during peak hours, and avoiding water losses. The District has identified specific plants for rehabilitation and includes rehabilitation projects in Capital budget requests each year, but the District is also actively searching for external funding. East Valley Water District | Financial Summary 81 FY 2026-30 Forecast REVENUE FORECAST Water, wastewater, and reclamation revenues are expected to increase moderately over the next five years due to continued development activity and approved rate adjustments. Water Revenue projections include increases related to rate adjustments (meter charges, commodity rate tiers) 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. Rate adjustments are scheduled for January 1 of 2026 and 2027. Wastewater revenue projections include increases from rate adjustments (collection system charges) that will become effective on July 1, 2025 and 2026. For years subsequent to 2026, a 2.0% escalation factor was used to account for potential future rate increases and/or growth related to new development. Reclamation revenue projections also include increases from rate adjustments (treatment charges) that will become effective on July 1, 2025 and 2026. In addition to revenue from rates, Reclamation relies on revenues from outside sources including 1) a Local Resource Investment Program (LRIP) contribution from the basin watermaster for recycled water being recharged into the groundwater basin, and 2) tipping fees from food waste haulers for waste delivered to the SNRC digesters for generation of electricity to power the plant. Wastewater flows into the SNRC reclamation plant are higher than anticipated, so the productions of recycled water is exceeding expectations at about 6,200 acre-feet. However, the commissioning of the digesters is progressing slower than anticipated, meaning tipping fee revenue and energy cost savings expectations have had to be adjusted downward. Until these revenues/savings can be realized, the difference will have to be made up by rate revenue, which would have to increase by 10% – 15% in FY 2026-27 in order to meet net revenue requirements. A cost-of- service analysis will be performed at the beginning of FY 2025-26 to review wastewater treatment rates. OPERATING CAST 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. Reclamation operation is still ramping up and operation costs are forecasted based on current staffing levels and SNRC Contract Services. EMPLOYMENT EXPENSES Labor & Benefits are the largest costs in the District’s Budget and are adjusted in accordance with a Memorandum of Understanding (MOU) with employees. The current three-year MOU became effective in July 2023 and remains in effect through FY 2025-26 and the average increase for the three years was 5% due to the results of a salary survey. New labor negotiations will occur during FY 2025-26, including a comp and benefits survey, to negotiate an MOU effective for the period July 2026 through June 2029. Staffing levels will increase from 75 to 79 full-time positions in FY 2025-26 as the District expands two part-time roles into full-time positions and also adds two staff to the Field staff to begin building a pipeline replacement crew. This crew is expected to grow to six, with two more positions to be added in each of the following fiscal years. These positions are reflected in the accompanying projections. Retirement plan contributions and employer paid medical insurance are both expected to increase by about 6%, so these increases are built into the following projections. All of the items explained above will contribute to increases built into Labor and Benefit projections of 8% for years 2 and 3, and 7% for years 4 and 5. 82 FY 2025-26 Budget POWER COSTS The District has taken steps to insulate ratepayers from significant increases in electricity costs by implementing energy conservation measures, installing a hydro-electric generation facility, installing batteries at three facilities to avoid peak hour power rates, and constructing digesters at the SNRC to generate electricity. The SNRC digesters will continue ramping up to full capacity during FY 2025-26, so the budget for that year includes approximately $1.7 million in net power costs incurred for reclamation activities. Thereafter, the District is projected to increase energy production to the point where energy needed to power the operations of the SNRC is produced on site, and to possibly produce excess energy which can be sold back to the grid. With all of these measures in place the District should have level power costs agency wide, with decreasing energy demand from the grid for the SNRC offsetting increased power costs incurred for water facilities for the next five years. MATERIALS AND SUPPLIES Materials and supplies increased significantly in FY 2024-25 with the commissioning of the SNRC but are projected to increase at a moderate 2% in FY 2025-26, tempered by staff’s commitment to transition from contract to in-house chemical procurements as the SNRC completes commissioning. In the following years cost increase projections continue to be estimated at 2%. OTHER CONTRACTED SERVICES Other Contracted Services such as facilities maintenance, professional consulting, security, customer bill generation are expected to increase by a modest 3% annually as reflected on the accompanying projections. DEBT SERVICE FORECAST Debt service costs include principal and interest on Revenue Bonds and Loans issued to finance system improvements and also include years three through seven of a ten-year commitment to pay the San Bernardino Municipal Water Department $700,000 annually to offset the loss of revenue associated with the District ending a contract for wastewater treatment with that agency in favor of building the Sterling Natural Resource Center. Debt service on all of the above commitments will be about $10.4 annually and is reflected in the following projections. A 30-year debt service chart is shown in the Debt section of this document. NET REVENUE Net revenue, after paying debt service, flows into the Districts reserves where it is combined with other external funding sources to pay for capital expenditures and capital projects shown in the capital section of this budget. Long-range financial planning is a strategic roadmap for informed decision-making. East Valley Water District | Financial Summary 83 Five-Year Forecast FY 2025-26 Through FY 2029-30 The following financial forecast is presented to provide a general understanding of how long-term goals will affect operating revenue, operating expenditures, debt service costs, and capital expenditures over the next five years. FORECAST FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 REVENUE Water Sales / Wastewater Collect $ 25,770,000 $ 26,959,000 $ 27,699,000 $ 28,459,000 $ 28,817,000 Wastewater Treatment 13,820,000 15,893,000 18,277,000 19,191,000 20,151,000 Meter Fees 11,425,000 12,110,000 12,474,000 12,849,000 12,978,000 LRP Revenue 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 SB 1122 Power Sales - - - - - Other Operating Charges 1,629,000 1,629,000 1,609,000 1,609,000 1,609,000 Investment Income 930,000 1,275,000 1,276,000 1,324,000 1,000,000 Grants / Other Contributions 1,850,000 463,000 463,000 463,000 463,000 Other Income 500,000 550,000 550,000 550,000 550,000 TOTAL REVENUE $ 57,124,000 $ 60,079,000 $ 63,548,000 $ 65,645,000 $ 66,768,000 EXPENDITURES Labor & Benefits $ 16,475,000 $ 18,079,000 $ 18,901,000 $ 19,738,000 $ 20,445,000 Water Costs 823,000 768,000 768,000 768,000 768,000 Power Costs 4,937,000 4,387,000 4,357,000 4,335,000 4,522,000 Contract Services 14,141,600 14,567,000 15,005,000 15,457,000 15,922,000 Materials & Supplies 4,170,000 4,297,000 4,427,000 4,561,000 4,699,000 Other Operating Expenses 528,000 540,600 553,230 565,892 578,586 Insurance 2,401,400 2,909,000 2,987,000 3,066,000 3,148,000 Debt Service 10,811,173 10,414,173 10,416,173 10,421,173 10,416,173 TOTAL EXPENDITURES $ 54,287,173 $ 55,961,773 $ 57,414,403 $ 58,912,065 $ 60,498,759 CHANGE IN EQUITY $ 2,836,827 $ 4,117,227 $ 6,133,597 $ 6,732,935 $ 6,269,241 BEGINNING UNRESTRICTED EQUITY $ 36,464,017 $ 29,337,127 $25,099,457 $ 26,604,884 $30,250,909 ENDING UNRESTRICTED EQUITY $39,300,844 $33,454,354 $ 31,233,054 $ 33,337,819 $ 36,520,150 84 FY 2025-26 Budget Budget based rates promote water efficiency and are based on the cost-of-service while remaining equitable and fair. water fundFY 2025-26 WA T E R F U N D East Valley Water District | Water Fund 85 86 FY 2025-26 Budget Rates The District has taken many steps to encourage water-use efficiency and water supply reliability and accordingly utilizes water budget-based rates for use in billing for water usage. The water budget-based rates promote water efficiency and are based on the cost-of-service; they are equitable and fair; and support sustainable behavior change. The State Water Resources Control Board approves of the water budget-based rate structure for its ability to produce superior water savings, and this alternative approach is compliant with the California Drought Conservation Regulations. The District also collects a monthly fixed charge based on meter size serving the property. This fixed charge helps ensure the water fund’s long-term financial sustainability. In May 2024 the District adopted rate adjustments to be implemented in three annual increments beginning January 1, 2025. The first increment, or phase, of rate adjustments is currently in use and is shown in the following tables as ‘current’, along with rates for the following two phases. COMMODITY CHARGES Rates Current FY 2025-26 FY 2026-27 Tier 1 $ 2.19 $ 2.33 $ 2.47 Tier 2 2.84 3.02 3.21 Tier 3 4.10 4.35 4.62 Commercial Flat Rate 2.39 2.54 2.70 The Water Fund collects revenue from water sales and meter (system) charges to fund the operating expenses related to acquiring and treating raw water and then pumping and distributing the treated water to District customers. Water fund revenues also pay annual debt service on $26.4 million in outstanding debt, which in FY 2025-26 will be $1,775,000. After paying operating expenses and debt service, Water Fund net revenue is accumulated in Operating and Capital Replacement reserves. East Valley Water District understands the importance of preserving California’s water supplies. Water Fund East Valley Water District | Water Fund 87 MONTHLY METER CHARGES Meter Size Current FY 2025-26 FY 2026-27 5/8 in. $ 27.52 $ 29.18 $ 30.94 3/4 in. 34.62 36.70 38.91 1 in. 48.83 51.76 54.87 1.5 in. 84.35 89.42 94.79 2 in. 126.97 134.59 142.67 3 in. 368.48 390.59 414.03 4 in. 901.23 955.31 1,012.63 6 in. 1,433.89 1,520.02 1,611.23 8 in. 2,854.65 3,025.93 3,207.49 10 in. 4,630.48 4,908.31 5,202.81 12 in. 5,695.98 6,037.74 6,400.01 MONTHLY FIRE LINE SERVICE CHARGES Meter Size Current FY 2025-26 FY 2026-27 1 in. $ 14.01 $ 14.86 $ 15.76 1.5 in.14.36 15.23 16.15 2 in.14.71 15.6 16.54 3 in.15.41 16.34 17.33 4 in.16.11 17.08 18.11 6 in.17.51 18.57 19.69 8 in.18.91 20.05 21.26 10 in.20.31 21.53 22.83 12 in.21.71 23.02 24.41 PROJECTED TIER REVENUE BY CUSTOMER CLASS Customer Class Tier 1 Tier 2 Tier 3 Flat Rate Residential $ 4,787,000 $ 4,276,000 $ 2,038,000 $ - Multi-Family 1,842,000 605,000 1,159,000 - Commercial 261,000 187,000 9,000 - Irrigation / Construction - 1,251,000 1,010,000 - Commercial - Flat Rate - - - 1,475,000 TOTAL $ 6,890,000 $ 6,319,000 $ 4,216,000 $ 1,475,000 $ 18,900,000 88 FY 2025-26 Budget WATER SALES BY CUSTOMER CLASS – ACRE FEET Class No. Of Accounts Tier 1 (Acre Feet) Tier 2 (Acre Feet) Tier 3 (Acre Feet)Flat Rate Total (Acre Feet) Residential 20,225 4,903 3,396 1,127 - 9,426 Multi-Family 484 1,882 480 639 - 3,001 Institutional 35 245 176 8 - 429 Irrigation 376 - 995 558 - 1,553 Commercial 677 - - - 1,386 1,386 TOTALS 21,797 7,030 5,047 2,332 1,386 15,795 The table below projects the amount of water to be produced for FY 2025-26. 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 Source of Supply FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Actual FY 2024-25 Projected FY 2025-26 Budgeted Ground Water 14,980 13,254 12,485 13,059 12,950 Surface Water 771 1,128 641 1,316 1,000 Purchased Water 3,037 2,026 3,147 2,777 2,650 TOTAL 18,788 16,408 16,273 17,152 16,600 Assumptions and Trends The development of the revenue projections for FY 2025-26 requires management to estimate customer consumption for the next year. The District will provide water services through approximately 21,786 domestic and irrigation connections in FY 2025-26. In addition, 291 commercial fire services and 14 temporary hydrant meters are connected to the District’s system. Water demand is estimated at 6,881,200 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. How Water Bills Are Calculated — Residential The District considers multiple factors in calculating each customer’s monthly water budget: The first two of these factors are used to calculate a customer’s Indoor Water Budget (Tier 1) while the remaining factors contribute to the calculation of each customer’s Outdoor Water Budget. Indoor Water Budgets are unique to each customer and are based on the number of occupants residing in the house. Each occupant is budgeted 47 gallons of water per day (gpd) for efficient indoor use in accordance with state guidelines. The total gallons per day for all occupants is then multiplied by the number of days in the billing period. • Number of Occupants • Number of Dwelling Units • Medical Needs • Horses / Livestock • Business Needs • Agricultural Needs • Irrigable Landscape • Weather East Valley Water District | Water Fund 89 TIER 1 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). 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. 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 0.80 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 0.60 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. 748 Persons Per Household Per Person, Per Day Days in Billing Cycle Number of Gallons In One Unit Tier 1 Budget 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. 47 Gal 47 Gal One Foot On e F o o t WATER One Cubic Foot = 7.48 Gallons One F o o t One Foot WATER 1 Inch of Water perSquare Foot = 0.62 Gallons 1” 90 FY 2025-26 Budget TIER 2 OUTDOOR BUDGET EXAMPLE TIER 3 INEFFICIENT USE When a customer exceeds their Tier 1 and Tier 2 budgets, the excess units of water used are billed at the Tier 3 rate. The District has developed its rates in accordance with Proposition 218, allowing the District and like agencies to charge customers the highest rate due to the additional cost incurred by the District for delivering inefficient water, including but not limited to, imported water cost, electricity expenses for pumping and boosting water throughout the system, and chemicals needed for the treatment process. How Water Bills Are Calculated — Non Residential Non-residential commercial customers are billed at a flat rate for each unit of water usage to account for the fact that usage is not specifically allocated for health and safety or irrigation purposes, but for business processes. 7480.620.95 Landscape Area in Square Feet Monthly Evapotranspiration Rate Note: This rate varies per day and month Monthly Plant Factor Note: Plant factor changes each month Number of Gallons In One Unit Sq. Ft. to Gallons Conversion Factor for Irrigation 748 15,885 Gallons or 22 Units of Waterfor Tier 2 Usage Tier 2 Usage 0.620.953,000 8.99 Landscape Area in Square Feet Evapotranspiration Rate Plant Factor Sq. Ft. to Gallons Conversion Factor for Irrigation Number of Gallons In One Unit Example: Tier 2 budget calculation for a home with 3,000 sq. ft. of irrigable area. 1,500 Sq. Ft. 1,500 Sq. Ft. 0.95 8.99 May Plant Factor Evapotranspiration Rate Sq. Ft. = Square Feet HCF = Hundred Cubic Feet or 1 Billing Unit The District delivers over 15 million gallons of water daily through 300 miles of water distribution pipeline. East Valley Water District | Water Fund 91 METER CHARGE REVENUE Meter Size No. of Services Rate July–Dec Rate Jan–June Total 5/8 in. 3,116 $ 27.52 $ 29.18 $ 1,061,000 3/4 in. 13,725 34.62 36.70 5,873,000 1 in. 4,245 48.83 51.76 2,561,000 1.5 in. 284 84.35 89.42 295,000 2 in. 305 126.97 134.59 478,000 3 in. 78 368.48 390.59 355,000 4 in. 25 901.23 955.31 278,000 6 in. 12 1,433.89 1,520.02 212,000 8 in. 7 2,854.65 3,025.93 247,000 Fire Service 291 Varies Varies 65,000 TOTALS 22,088 $ 11,425,000 METER CHARGE REVENUE BY METER SIZE The District’s Operating Revenue includes fixed charges, which are based on the size of the meter serving the customer’s property. The rates meet the compliance requirements of Proposition 218. Meter Charges have been established based on a comprehensive third-party cost-of-service analysis, and the rates provide funding for operating and capital needs. Other Charges & Other Revenue Sources Other charges and other revenue include fees related to the collection of delinquent accounts, investment revenue, reimbursements from other agencies, facility rentals, and other miscellaneous revenue. ASSUMPTIONS AND CONSIDERATIONS Delinquent fees, final notice charges, and disconnect/reconnect fees will increase as the State moratorium on service disconnections for non-payment has expired and collection efforts will resume. The Local Agency Investment Fund (LAIF) interest rate, which is paid on District funds invested with LAIF, lags behind adjustments to the federal rate but should trend upward over the next year, and investment earnings with it. Expenses The Water Fund is one of three enterprise funds the District operates. Water Fund resources pay for operations and maintenance of the water distribution system, repair and replacement of water infrastructure, a portion of District customer accounts and administration costs, and debt service. Water Fund debt is incurred to provide full or partial funding for multiple CIP projects. 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. 92 FY 2025-26 Budget • 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: • 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. DEBT SERVICE 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 build a Capital Replacement reserve, which helps cash finance the rehabilitation and replacement of components of assets that will extend the asset’s useful life, or replace general plant assets, such as fleet equipment, that have useful lives shorter than 30 years. Administration Transfer toReserves Source of Supply CustomerAccounts Transmission &Distribution Pumps &Boosters Treatment Water Fund Expenses by Cost Center 16% 4% 6% 16% 6% 36% 9% 7% DebtService East Valley Water District | Water Fund 93 Conclusions The budget for the Water Fund is balanced, including contributions to reserves. District staff will continue to monitor the revenues and expenses and present the progress to the Governing Board on a periodic basis. FY 2025-26 Water Fund Budget FY 2022-23 Actual FY 2023-24 Actual FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget REVENUE / SOURCES Water Sales $ 17,004,577 $ 17,461,065 $ 18,820,000 $ 18,850,000 $ 18,900,000 Meter Charges 9,831,561 10,149,282 10,685,000 10,756,900 11,425,000 Penalties 567,398 565,230 416,000 525,250 360,000 Other Operating Revenue 1,485,861 1,772,413 365,000 2,154,722 30,000 Interest and Other Revenue 290,470 627,332 520,000 1,068,518 800,000 Gain on Disposal of Assets 23,669 - - - - TOTAL REVENUE / SOURCES $ 29,203,536 $ 30,575,322 $ 30,806,000 $ 33,355,390 $ 31,515,000 OPERATING EXPENSES Employment Expenses $ 9,502,190 $ 9,985,867 $ 10,641,400 $ 10,061,579 $ 11,188,800 Water Costs 257,161 1,072,976 833,000 655,834 823,000 Power Costs 3,467,006 2,744,041 3,225,000 2,308,697 3,225,000 Materials & Supplies 1,937,379 1,636,228 1,928,200 1,750,856 1,970,400 Contract Services 6,458,208 6,450,126 8,198,900 8,080,566 8,905,800 Other Operating Expenses 475,594 632,534 406,400 326,725 401,000 TOTAL OPERATING EXPENSES $ 22,097,538 $ 22,521,772 $ 25,232,900 $ 23,184,257 $ 26,514,000 OTHER EXPENSES / USES Debt Principal $ 1,260,957 $ 1,442,456 $ 1,383,000 $ 2,217,000 $ 1,028,000 Debt Interest Expense 965,462 949,530 789,000 789,000 747,000 Other Non-Operating Expense - 4,900,000 490,000 490,000 490,000 Transfer to (from) Reserves 4,879,579 761,564 2,911,100 6,675,133 2,736,000 TOTAL OTHER EXPENSES / USES $ 7,105,998 $ 8,053,550 $ 5,573,100 $ 10,171,133 $ 5,001,000 TOTAL OPERATING / OTHER EXPENSES / USES $ 29,203,536 $ 30,575,322 $ 30,806,000 $ 33,355,390 $ 31,515,000 NET SURPLUS (DEFICIT) $ - $ - $ - $ - $ - 94 FY 2025-26 Budget WATER FUND REVENUES VS. EXPENSES $21,415,000 $21,163,000 $20,839,000 $23,761,000 $26,514,000 $5M $10M $15M $20M $25M $30M FY 2020-21 Actual FY 2021-22 Actual FY 2022-23 Actual FY 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Budget $17,683,000 $28,930,000 $28,388,000 $27,909,000 $33,355,000 $31,515,000 $28,609,000 East Valley Water District | Water Fund 95 [ P A G E L E F T B L A N K I N T E N T I O N A L LY ] 96 FY 2025-26 Budget The activities of enterprise funds closely resemble those of ongoing businesses in which the purpose is to conserve and add to resources while funding operating expenses from current revenues. wastewater fundFY 2025-26 WA S T E W A T E R F U N D East Valley Water District | Wastewater Fund 97 98 FY 2025-26 Budget In addition to direct operating expenses, the Wastewater Fund also pays for a portion of administrative support programs/departments as shown in the Fund/Program Relationship schedule on page 49. The Wastewater Fund is responsible for debt service on $4.03 million in outstanding 2020 Refunding Revenue bonds, which in FY 2025-26 will be approximately $271 thousand. After paying operating and administrative expenses and debt service, Wastewater Fund net revenue is accumulated in operating and/or Capital Replacement reserves. Revenues The Wastewater Fund relies primarily on revenue from Wastewater Collection System charges. Wastewater Collection rate adjustments are adopted at a public hearing and are supported by an independent cost-of-service analysis. In May 2024 the District adopted rate adjustments to be implemented in three annual increments beginning July 1, 2024. The second increment, or phase, of rate adjustments will be in effect for FY 2025-26 and is shown in the following tables as ‘current’, along with rates for the third phase. COLLECTION SYSTEM RATES Current FY2025-26 FY 2026-27 MONTHLY FIXED CHARGE Single-Family Residential $ 17.21 $ 17.73 Multi-Family Residential 15.95 16.43 Commercial 10.91 11.24 COMMERCIAL VOLUMETRIC CHARGE - PER HCF Low Strength 0.80 0.83 Medium Strength 0.80 0.83 High Strength 0.80 0.83 Mixed Use 0.47 0.49 The Wastewater Fund pays for all activities related to the operations and maintenance of the District’s wastewater collection system. The collections system consists of 230 miles of pipelines that collect wastewater from customers’ homes and businesses and deliver it to the SNRC water reclamation plant. The system is entirely gravity fed so has no power costs for boosters or other facilities, the primary costs are for the video review and repair, when necessary, of underground pipes. Wastewater Fund The SNRC’s Wastewater Treatment Facility is the first of its kind in California. East Valley Water District | Wastewater Fund 99 RESIDENTIAL Residential collection system rates are applied to both single family and multi-family residential accounts/units and are structured as a flat monthly charge to recover revenue requirements from this customer class in a manner consistent with the fact that they generate a fairly constant wastewater flow each month. To facilitate the rate design process, residential wastewater flows were projected based on 47 gallons of water used per capita per day (GPCD) for indoor use, with the assumption that single family units have between 3 and 4 persons per household based on the Department of Finance E-5 report for 2023. Multi-family units are typically smaller and have smaller household sizes, and this is reflected in a smaller monthly fixed charge. NON-RESIDENTIAL The District bills non-residential customers on a monthly basis with a rate design that consists of two components—a flat rate and a consumption-based rate. The flat rate is assessed once per billing cycle, while the consumption-based rate is assessed for every hundred cubic feet (HCF) of water consumption in the billing period. Additionally, the consumption-based rate varies depending on the strength of wastewater discharged into the collection system. There are four strength categories: low strength, medium strength, high strength, and mixed use. Shown below are the calculations for projected wastewater system charge revenue from all customer classes for FY 2025-26. Customer Type Units Monthly Fixed Charge Usage (HCF)Charge per HCF Total Single-Family Residential 19,605 $ 17.21 -$ - $ 4,048,400 Multi-Family Residential 11,090 15.95 -- 2,122,600 Commercial Low Strength 393 10.91 195,000 0.80 208,000 Commercial Medium Strength 72 10.91 68,000 0.80 63,000 Commercial High Strength 90 10.91 202,000 0.80 174,000 Commercial Mixed Use 79 10.91 320,000 Varies 254,000 TOTAL 31,329 $ 6,870,000 Other Revenue Other revenue posted to the Wastewater Fund includes: • 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. • Investment Income — Interest earned on US Treasury and Agency bonds specifically purchased with wastewater reserves and an allocation of earnings on LAIF liquid investments based on the LAIF balance in wastewater fund. Expenses Operating expenses have remained consistent in the Wastewater Fund. The District typically utilizes a crew of four field staff plus a Supervisor to conduct preventative maintenance programs on the wastewater pipelines. This includes video monitoring and cleaning the lines on a regular schedule. Also, the fund’s budget includes contracting 100 FY 2025-26 Budget for spot repairs of the conveyance system when video monitoring reveals minor deficiencies or faults in the wastewater collection lines. The Wastewater Fund also continues to share in allocated costs from internal service or administrative type programs within the District usually at a 30% allocation. Cost Center Amount Collection & Transmission $ 2,471,800 Customer Accounts 714,000 General Administration 3,264,200 Debt Service 480,000 Transfer to Revenues 175,000 TOTAL $ 7,105,000 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. Wastewater Fund Expenses by Cost Center 46% General Administration 7% DebtService 2% Transfer toReserves 35% Collection & Transmission 10% CustomerAccounts East Valley Water District | Wastewater Fund 101 FY 2025-26 Wastewater Fund Budget FY 2022-23 Actual FY 2023-24 Actual FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget REVENUE / SOURCES Wastewater System Charges $ 5,651,554 $ 6,064,548 $ 6,515,000 $ 6,642,000 $ 6,870,000 Penalties 59,944 59,811 110,000 48,000 130,000 Other Operating Revenue 523,441 614,863 5,000 863,000 5,000 Interest and Other Revenue 1,647 440,946 100,000 252,000 100,000 Gain on Disposal of Assets 6,465 - - - - TOTAL REVENUE / SOURCES $ 6,243,051 $ 7,180,168 $ 6,730,000 $ 7,805,000 $ 7,105,000 OPERATING EXPENSES Employment Expenses $ 2,602,446 $ 2,617,198 $ 2,824,600 $ 2,626,151 $ 3,032,200 Materials & Supplies 123,888 164,601 179,050 195,506 191,600 Contract Services 1,784,271 1,938,626 2,851,850 2,466,979 3,111,200 Other Operating Expenses 80,572 85,420 119,600 83,062 115,000 TOTAL OPERATING EXPENSES $ 4,591,177 $ 4,805,845 $ 5,975,100 $ 5,371,698 $ 6,450,000 OTHER EXPENSES / USES Debt Principal $ 175,000 $ 175,000 $ 175,000 $ 175,000 $ 175,000 Debt Interest Expense 207,409 144,370 97,000 97,000 95,000 Other Non-Operating Expense - 2,100,000 210,000 210,000 210,000 Transfer to (from) Reserves 1,269,465 (45,047) 272,900 1,951,302 175,000 TOTAL OTHER EXPENSES / USES $ 1,651,874 $ 2,374,323 $ 754,900 $ 2,433,302 $ 655,000 TOTAL OPERATING / OTHER EXPENSES / USES $ 6,243,051 $ 7,180,168 $ 6,730,000 $ 7,805,000 $ 7,105,000 NET SURPLUS (DEFICIT)$ - $ - $ - $ - $ - 102 FY 2025-26 Budget WA T E R R E C L A M A T I O N F U N D Exceptional public service requires a constant commitment to creative solutions and innovation. waterreclamation fund FY 2025-26 East Valley Water District | Water Reclamation Fund 103 104 FY 2025-26 Budget The Reclamation Fund is responsible for debt service on $164 million in outstanding construction loans (State Revolving Fund/ Water Recycling Bonds) from the State Water Resources Control Board, which in FY 2025-26 will be approximately $7,731,000. After paying operating expenses and debt service, Reclamation Fund net revenue will be accumulated in a Debt Service reserve, and then in Operating and Capital Replacement reserves. Revenues The District has established wastewater treatment rates to cover costs of the Water Reclamation Fund, supplemented by Non-Rate operating revenue generated from third parties, miscellaneous revenue, interest income, and capacity charges for new services. In May 2024 the District adopted rate adjustments to be implemented in three annual increments beginning July 1, 2024. The second increment, or phase, of rate adjustments will be in use for FY 2025-26 and is shown in the following tables as ‘current’, along with rates for the third phase. COLLECTION SYSTEM RATES Current FY 2025-26 FY 2026-27 MONTHLY FIXED CHARGE Single-Family Residential $ 29.79 $ 32.77 $ 36.05 Multi-Family Residential 25.67 28.24 31.07 Commercial 9.16 10.08 11.09 COMMERCIAL VOLUMETRIC CHARGE - PER HCF Low Strength 2.19 2.41 2.66 Medium Strength 2.54 2.80 3.08 High Strength 3.96 4.36 4.80 Mixed Use 1.29 1.42 1.57 The Water Reclamation Fund incurs costs for the operation of the SNRC, a water reclamation plant that produces and delivers recycled water to regional groundwater recharge facilities. In addition to recycling water, the SNRC also has two digesters designed to produce up to 3 megawatts of power from gases released by wastewater solids and imported food waste, which is intended to power most of the reclamation facilities. Water Reclamation Fund The Water Reclamation Program is responsible for treating and disinfecting up to eight million gallons of wastewater per day. East Valley Water District | Water Reclamation Fund 105 RESIDENTIAL Residential treatment rates are applied to both single family and multi-family residential accounts/units and are structured as a flat monthly charge to recover revenue requirements from this customer class in a manner consistent with the fact that they generate a fairly constant wastewater flow each month. To facilitate the rate design process, residential wastewater flows were projected based on 47 gallons of water used per capita per day (GPCD) for indoor use, with the assumption that single family units have between 3 and 4 persons per household based on the Department of Finance E-5 report for 2023. Multi-family units were assumed to have household sizes that are about 80% of single-family households based on smaller average dwellings. NON-RESIDENTIAL The District bills non-residential customers on a monthly basis with a rate design that consists of two components—a flat rate and a consumption-based rate. The flat rate is assessed once per billing cycle, while the consumption-based rate is assessed for every hundred cubic feet (HCF) of water consumption in the billing period. Additionally, the consumption-based rate varies significantly depending on the strength of a customer’s wastewater discharged for treatment. There are four strength categories: low strength, medium strength, high strength, and mixed use. Shown on the following page are the calculations for projected wastewater treatment revenue from all customer classes for FY 2025-26. Customer Type Units Monthly Fixed Charge Usage (HCF)Charge per HCF Total Single-Family Residential 19,605 $ 32.77 -$ - $ 7,710,000 Multi-Family Residential 11,090 28.24 -- 3,758,000 Commercial Low Strength 393 10.08 195,000 2.19 518,000 Commercial Medium Strength 72 10.08 68,000 2.54 199,000 Commercial High Strength 90 10.08 202,000 3.96 890,000 Commercial Mixed Use 79 10.08 320,000 Varies 745,000 TOTAL 31,329 $ 13,820,000 Other Revenue Revenues posted to the Reclamation fund, other than wastewater treatment charges, include: • Water Sales — Consists of Local Resource Incentive Program (LRIP) revenue earned for delivery of recycled water to regional groundwater recharge facilities. • Fees / Penalties — These fees include items such as the collection of delinquent accounts, investment revenue, and inspections. • Other Operating Income — Consists of revenue received from third parties, including tipping fees charged to liquid waste haulers who unload at the SNRC digesters, and self-generation energy incentives related to the digesters, earned from SCE. • Interest and Other Revenue — Investment earnings on the balance of invested reserves and other miscellaneous receipts. 106 FY 2025-26 Budget Expenses With the startup of operations at the SNRC in January 2024, this fund has seen an anticipated increase in expenses as commissioning and treatment operations scale up. Although recycled water operations have produced higher than expected acre-feet of clean water for recharge, a series of setbacks have hampered the District’s ability to maximize energy production with the digesters, resulting in decreased tipping fee revenue, and higher than anticipated energy costs. In addition, the District has taken on higher contract services costs as the District relies on outside consultants to work through the challenges. During FY 2025-26 the District will work to refine operation of the digesters and minimize reliance on consultants through internal staff development. Conclusions Operation of the Water Reclamation enterprise is fully funded for FY 2025-26, however, until the digesters can consistently produce more than 50% of the power needed to run the SNRC, treatment rates may need to be adjusted to provide revenue stability for SNRC operations and meet debt service coverage requirements. District staff will continue to monitor the revenues and expenses and present the progress to the Governing Board on a semi-annual basis. Water Reclamation Fund Expenses by Cost Center 42% Debt Service 58% Reclamation Operations East Valley Water District | Water Reclamation Fund 107 FY 2025-26 Water Reclamation Fund Budget FY 2022-23 Actual FY 2023-24 Actual FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget REVENUE / SOURCES Water Sales $ - $ 439,451 $ 1,172,000 $ 1,200,000 $ 1,200,000 Penalties - - 60,000 10,000 90,000 Wastewater Treatment Charges 10,108,850 10,746,724 12,333,000 12,543,000 13,820,000 Other Operating Revenue 449,578 621,637 1,010,000 1,565,000 1,109,000 Interest and Other Revenue - 106,219 280,000 185,000 2,050,000 TOTAL REVENUE / SOURCES $ 10,558,428 $ 11,914,031 $ 14,855,000 $ 15,503,000 $ 18,269,000 OPERATING EXPENSES Employment Expenses $ 952,828 $ 1,442,722 $ 1,966,000 $ 1,966,952 $ 2,254,000 Power Costs 178,308 1,301,248 2,200,000 2,771,799 1,712,000 Materials & Supplies 72,847 255,987 335,000 879,714 2,008,000 Contract Services 9,079,706 8,008,374 6,224,000 4,187,003 4,526,000 Other Operating Expenses 3,018 8,740 12,000 16,605 12,000 TOTAL OPERATING EXPENSES $ 10,286,707 $ 11,017,071 $ 10,737,000 $ 9,822,073 $ 10,512,000 OTHER EXPENSES / USES Debt Principal $ - $ - $ 4,527,000 $ 4,211,650 $ 4,527,000 Debt Interest Expense - - 3,204,000 2,958,548 3,204,000 Transfer to (from) Reserves 271,721 896,960 (3,613,000) (1,489,271) 26,000 TOTAL OTHER EXPENSES / USES $ 271,721 $ 896,960 $ 4,118,000 $ 5,680,927 $ 7,757,000 TOTAL OPERATING / OTHER EXPENSES / USES $ 10,558,428 $ 11,914,031 $ 14,855,000 $ 15,503,000 $ 18,269,000 NET SURPLUS (DEFICIT)$ - $ - $ - $ - $ - 108 FY 2025-26 Budget The District conducts an extensive process gathering input from internal staff and the community throughout the budget development and review process. consolidatedfinancial schedules FY 2025-26 C O N S O L I D A T E D F I N A N C I A L S C H E D U L E East Valley Water District | Consolidated Financial Schedule 109 110 FY 2025-26 Budget Overview of revenues and other financing sources and expenditures. Consolidated Financial Summary Districtwide Summary FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed REVENUES 4100 Water Sales $ 17,900,516 $ 19,992,000 $20,050,000 $ 20,100,000 $ 108,000 1% 4200 Meter Charges 10,149,282 10,685,000 10,756,900 11,425,000 740,000 7% 4301 Penalties 625,041 586,000 583,250 580,000 (6,000)-1% 4400 Wastewater Collection Charges 6,064,548 6,515,000 6,642,000 6,870,000 355,000 5% 4500 Wastewater Treatment Charges 10,746,724 12,333,000 12,543,000 13,820,000 1,487,000 12% 4600 Other Operating Revenue 3,008,913 1,380,000 4,582,722 1,144,000 (236,000)-17% 4700 Interest and Other Revenue 1,174,497 900,000 1,505,518 2,950,000 2,050,000 228% TOTAL REVENUES $ 49,669,521 $ 52,391,000 $ 56,663,390 $ 56,889,000 $4,498,000 9% EXPENSES – OPERATING BY PROGRAM 1000 Governing Board $ 235,416 $ 326,000 $ 239,902 $ 282,000 $ (44,000)-13% 2000 General Administration 1,380,849 1,272,000 1,198,470 1,364,000 92,000 7% 2100 Human Resources & Risk Management 3,014,790 3,580,000 3,668,003 4,034,000 454,000 13% 2200 Public Affairs 1,072,171 1,513,000 1,109,461 1,631,000 118,000 8% 2300 Conservation 323,181 631,000 423,885 658,000 27,000 4% 3000 Finance & Accounting 1,345,997 1,419,000 1,352,840 1,591,000 172,000 12% 3200 Information Technology 1,328,618 1,874,000 1,960,752 1,978,000 104,000 6% 3300 Customer Service 2,121,772 2,212,000 2,219,618 2,380,000 168,000 8% 3400 Meter Services 271,555 306,000 290,762 315,000 9,000 3% 4000 Engineering 1,297,780 1,236,000 871,072 1,580,000 344,000 28% 5000 Water Production 5,595,026 6,185,000 5,212,991 6,207,000 22,000 0% 5100 Water Treatment 1,497,425 1,609,000 1,479,151 1,735,000 126,000 8% East Valley Water District | Consolidated Financial Summary 111 FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed 5200 Water Quality 427,973 602,000 489,398 607,000 5,000 1% 6000 Water Maintenance Administration 820,926 466,000 449,112 493,000 27,000 6% 6100 Water Maintenance 3,382,264 3,927,000 3,470,995 3,924,000 (3,000)0% 6200 Wastewater Collection 792,179 962,000 804,602 990,000 28,000 3% 6300 Water Reclamation 10,397,319 10,737,000 9,814,061 10,512,000 (225,000)-2% 7000 Facilities Maintenance 2,211,649 2,182,000 2,377,745 2,264,000 82,000 4% 7100 Fleet Maintenance 827,798 906,000 945,208 931,000 25,000 3% TOTAL OPERATING EXPENSES $ 38,344,688 $ 41,945,000 $ 38,378,028 $ 43,476,000 $ 1,531,000 4% OTHER EXPENSES Debt Principal $ 1,617,456 $ 6,085,000 $ 6,603,650 $ 5,730,000 $ (355,000)-6% Debt Interest Expense 1,093,900 4,090,000 3,844,548 4,046,000 (44,000)-1% Other Non-Operating Expense 7,000,000 700,000 700,000 700,000 - 0% Transfer to (from) Reserves 1,613,477 (429,000) 7,137,164 2,937,000 3,366,000 -785% TOTAL OTHER EXPENSES $ 11,324,833 $ 10,446,000 $ 18,285,362 $ 13,413,000 $ 2,967,000 28% TOTAL OPERATING / OTHER EXPENSES $ 49,669,521 $ 52,391,000 $ 56,663,390 $ 56,889,000 $4,498,000 9% NET SURPLUS $ - $ - $ - $ - $ - - Itemized Operating Expense Summary FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 8,979,432 $ 9,381,000 $ 8,438,120 $ 10,221,000 $ 840,000 9% 5102 Temporary Labor 31,162 318,000 106,159 30,000 (288,000)-91% 5103 Overtime 819,141 973,000 992,479 941,000 (32,000)-3% 5104 Standby 99,404 157,000 169,931 167,000 10,000 6% 5200 Benefits 3,755,049 4,272,000 4,398,905 4,729,000 457,000 11% 5999 CIP Labor Offset (119,748) (20,000) (58,831) (164,000) (144,000)720% TOTAL PERSONNEL $ 13,564,440 $ 15,081,000 $ 14,046,763 $ 15,924,000 $ 843,000 6% 112 FY 2025-26 Budget FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed WATER SUPPLY 6101 Purchased Water $ 426,047 $ 300,000 $ 300,075 $ 300,000 $ - 0% 6102 Groundwater Replenishment 360,876 352,000 184,759 352,000 - 0% 6103 Water Assessment 286,053 181,000 171,000 171,000 (10,000)-6% TOTAL WATER SUPPLY $ 1,072,976 $ 833,000 $ 655,834 $ 823,000 $ (10,000)-1% OPERATING EXPENSES 6201 Materials & Supplies $ 1,385,649 $ 1,778,000 $ 1,563,244 $ 1,892,000 $ 114,000 6% 6202 Tools 94,673 140,250 144,741 151,000 10,750 8% 6203 Office Supplies 32,635 44,000 27,360 40,000 (4,000)-9% 6204 Chemicals 543,859 480,000 1,090,731 2,087,000 1,607,000 335% 6205 Conservation Rebates 23,133 85,000 88,644 85,000 - 0% 6301 Contract Services 5,308,490 11,371,250 9,045,378 10,379,000 (992,250)-9% 6302 Banking Services 425,247 412,000 437,415 442,000 30,000 7% 6303 Printing & Publishing 136,813 205,000 123,628 191,000 (14,000)-7% 6304 Legal Services 129,628 171,000 160,278 201,000 30,000 18% 6305 Treatment Services 6,177,814 - - - - 0% 6306 Rents & Leases 22,537 20,000 9,481 15,000 (5,000)-25% 6307 Uniforms 85,890 101,500 75,670 102,000 500 0% 6308 Billing Services 70,372 57,000 91,062 92,000 35,000 61% 6309 Shut Off Notice Services 304,044 300,000 294,410 300,000 - 0% 6310 Street Services 386,081 525,000 455,748 525,000 - 0% 6311 Landscape Services 273,364 233,000 155,943 233,000 - 0% 6312 Janitorial Services 151,271 155,000 191,381 155,000 - 0% 6314 Litigation Expense 18,311 50,000 26,952 50,000 - 0% 6401 Utilities 101,598 166,000 152,703 117,000 (49,000)-30% 6402 Telephone 155,789 160,000 173,696 170,000 10,000 6% 6403 Electricity 4,274,878 5,715,000 5,343,996 5,227,000 (488,000)-9% 6404 Fuel 240,724 291,000 229,578 291,000 - 0% 6405 Permits 198,947 302,000 387,311 287,000 (15,000)-5% East Valley Water District | Consolidated Financial Summary 113 FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed 6406 Postage 194,928 215,000 203,961 251,000 36,000 17% 6501 Memberships & Dues 131,401 161,000 126,007 153,000 (8,000)-5% 6502 Professional Development 160,434 185,000 146,012 185,000 - 0% 6503 Education Assistance - 10,000 281 13,000 3,000 30% 6504 Meetings 35,697 51,000 39,723 51,000 - 0% 6505 Employee Recognition 21,729 40,000 25,888 35,000 (5,000)-13% 6701 General Insurance 1,777,793 2,240,000 2,237,241 2,442,000 202,000 9% 6702 Insurance Claims 7,896 10,000 19,212 10,000 - 0% 6703 Cash Over/Short (195) 1,000 (1,481) 1,000 - 0% 6704 Bad Debt Expense 5,153 5,000 6,957 5,000 - 0% 6705 Retiree Benefits 481,347 351,000 607,919 551,000 200,000 57% 6706 Inventory Over/Short 349,342 - (5,639) - - 0% SUBTOTAL OPERATING EXPENSES $ 23,707,272 $ 26,031,000 $ 23,675,431 $ 26,729,000 $ 698,000 3% TOTAL OPERATING EXPENSES $ 38,344,688 $ 41,945,000 $ 38,378,028 $ 43,476,000 $ 1,531,000 4% 114 FY 2025-26 Budget Program-based budgeting allows for costs to be clearly identified while easily measuring benefits as outlined in the Key Performance Indicators and completion of Goals and Objectives. program summariesFY 2025-26 P R O G R A M S U M M A R I E S East Valley Water District | Program Summaries 115 • Program Descriptions • Position Summary Schedule • Program Summaries Program Summary Contents 116 FY 2025-26 Budget Program Goals and Objectives have been designed to correlate directly with the District’s adopted Vision and 5-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 2025-26 Budget is organized into the following summary programs: • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Program Summary Schedule The District continues to evaluate staffing needs to ensure all services are addressed by a high-quality workforce. This process is supported by the strategic direction and succession planning efforts previously approved by the Governing Board. The District will add four new full-time positions in FY 2025-26: a Water Quality Worker to meet increased regulatory and in-house monitoring demands; an Information Technology Technician to support expanded District technology and SCADA systems; and two Field Service Workers dedicated to in-house main replacement projects due to aging infrastructure. The table on the following page summarizes the number of full- time personnel by Program. All authorized positions are funded in the adopted budget for FY 2025-26. Part-time positions are included in the program descriptions and not shown in the table. 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 Descriptions Goals that directly support the District’s 5-Year Work Plan are noted in the various Program Summaries with the use of this icon. East Valley Water District | Program Summary 117 Full-Time Staffing Summary by Program Program FY 2023-24 Actual FY 2024-25 Actual FY 2025-26 Proposed 2000 General Administration 3 3 3 2100 Human Resources & Risk Management 2 2 2 2200 Public Affairs 4 4 4 2300 Conservation 1 1 1 3000 Finance & Accounting 6 6 6 3200 Information Technology 3 3 4 3300 Customer Service 7 7 7 3400 Meter Services 2 2 2 4000 Engineering 3 3 3 5000 Water Production 7 7 7 5100 Water Treatment 2 2 2 5200 Water Quality 2 2 3 6000 Maintenance Administration 2 2 2 6100 Water Maintenance 14 14 16 6200 Wastewater Collection 4 4 4 6300 Water Reclamation 8 9 9 7000 Facilities Maintenance 2 3 3 7100 Fleet Maintenance 1 1 1 TOTAL 73 75 79 Total Authorized Positions Nu m b e r o f P o s i t i o n s FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23 FY 2023-24 FY 2024-25 75 FY 2025-26 79 73 6667 7676 118 FY 2025-26 Budget Governing Board PROGRAM SUMMARIES SECTION E A S T V A L L E Y W A T E R D I S T R I C T | 1 1 5 GO V E R N I N G BO A R D East Valley Water District | Program Summaries 119 The Governing Board is the District's legislative body responsible for serving as the organizational policy makers. • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance PROGRAM SUMMARIES CONTENTS Governing Board Members 5 Elected Officials 5 GOVERNING BOARD VICE CHAIRMAN GOVERNING BOARD CHAIRMAN GOVERNING BOARD MEMBERS RATEPAYERS/ COMMUNITY MEMBERS PROGRAM PERSONNEL PROGRAM STRUCTURE 120 FY 2025-26 Budget 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. Governing Board Goals Objectives 1 Provide Organizational Direction and Set Expectations through Policy Decisions Consistent with the 5-Year Work Plan 1. Convene a City Creek Mutual Water Company Board Meeting to appoint officers and consider levy of an operating assessment. 2. Conduct General Manager/CEO annual evaluation. 3. Review and consider approval of update to the 5-Year Work Plan. 2 Engage Stakeholders Regarding District’s Capital Expenditure Priorities 1. Meet with community members and local agencies to share current Work-in-Progress. 2. Meet with legislators to discuss Federal/State funding opportunities and legislative priorities. 3. Maintain fiduciary responsibility and transparency while setting budgets and approving rates. 3 Engage Elected Officials and Community on the District’s Strategic and Legislative Priorities 1. Adopt the updated legislative platform document. 2. Continue to engage with legislators to promote the legislative platform. 3. Continue to meet with community, local, and regional agencies to promote the Strategic Plan, Goals, and Objectives. program summaries East Valley Water District | Program Summary 121 FY 2024-25 Accomplishments GOAL ONE Provided Organizational Direction and Set Expectations through Policy Decisions Consistent with the 5-Year Work Plan • The Board took action to acquire four outstanding shares of the NFWC. • Conducted General Manager/CEO annual evaluation. • Approved the updated 5-Year Work Plan. • Approved Policy 7.8 Unfunded Accrued Liability Pension Management. GOAL TWO Supported and Engaged Community with the District’s Capital Improvement Program Plan • Engaged with legislators to discuss funding for capital investment. GOAL THREE Engaged Elected Officials and Community on the District’s Strategic and Legislative Priorities • Adopted the updated legislative platform. • Engaged with legislators to promote the legislative platform. • Engaged with community and local agencies to promote the Strategic Plan, Goals, and Objectives. 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-C) • Cultivate and Strengthen Collaborative Partnerships within the Water Industry (V-B) • Provide Education Programming that Empowers the Community (V-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 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Projection I-A Act on project related agenda items presented by staff 100%100%100%100% I-C Average number of professional development hours per Governing Board Member 10 18 20 15 V-B Attend Regional and State meetings as representatives of the District 200 288 240 200 V-D Submit all documentation by deadlines pursuant to transparency policies 100%100%100%100% 122 FY 2025-26 Budget Program Budget Detail FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 123,474 $ 142,000 $ 118,832 $ 154,000 $ 12,000 8% 5200 Benefits 66,655 90,000 90,149 93,000 3,000 3% OPERATING EXPENSES 6201 Materials & Supplies 1,383 3,000 - 3,000 - 0% 6301 Contract Services 13,204 55,000 5,015 6,000 (49,000)-89% 6307 Uniforms 454 1,000 - 1,000 - 0% 6502 Professional Development 30,246 35,000 25,906 25,000 (10,000)-29% GOVERNING BOARD TOTAL $ 235,416 $ 326,000 $ 239,902 $ 282,000 $ (44,000)-13% Significant Changes in Program Budget • No elections will occur this fiscal year; as a result, the Contract Services budget decreased. Program Budget Allocation 1%$282,000 (Governing Board) East Valley Water District | Program Summary 123 [ P A G E L E F T B L A N K I N T E N T I O N A L LY ] 124 FY 2025-26 Budget General Administration PROGRAM SUMMARIES SECTION E A S T V A L L E Y W A T E R D I S T R I C T | 1 2 1 G E N E R A L A D M I N I S T R A T I O N East Valley Water District | Program Summaries 125 • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance PROGRAM SUMMARIES CONTENTS PROGRAM PERSONNEL PROGRAM STRUCTURE General Administration is responsible for implementing the District's Vision, maintaining official records, promoting public trust, and ensuring transparency compliance. General Manager/CEO 1 District Clerk 1 Administrative Specialist 1 Total Full-Time 3 DISTRICT CLERK GENERAL MANAGER/CEO ADMINISTRATIVE SPECIALIST GOVERNING BOARD CHAIRMAN 126 FY 2025-26 Budget General Administration is responsible for ensuring the District’s business and daily activities are performed following Federal, State, and Governing Board approved policies. The General Manager/CEO provides daily oversight for interagency relations for advancing the District’s initiatives. Additionally, the General Manager/CEO implements strategic planning for future operations and capital improvement funding requirements and resource allocation. General Administration Goals Objectives 1 Schedule City Creek Mutual Water Company Shareholder Meeting 1. Continue to work with legal counsel to establish annual shareholder meeting(s) agenda for the City Creek Mutual Water Company. 2. Work with Finance to establish the amount for a proposed operating assessment. 2 Enhance Document Management Process 1. Continue to scan vital documents and incorporate them into the electronic document repository. 2. Continue destruction of documents in compliance with the Records Retention Policy. 3. Implement automated workflow and naming convention for Engineering’s electronic file management. 3 Optimize Agenda Management Platform 1. Provide training to Directors on Board portal features. 2. Evaluate Board Voting and Minutes Dictation modules. 4 Organizational Priorities and Philosophies 1. Determine the direction and activities of the Community Heritage and Education Foundation (CHEF). 2. Assess and review District processes, systems, and staffing. program summaries East Valley Water District | Program Summary 127 FY 2024-25 Accomplishments GOAL ONE Scheduled City Creek Mutual Water Company Shareholder Meeting • Had multiple discussions with legal counsel regarding City Creek Mutual Water Company and proposed dates for holding a shareholder meeting. GOAL TWO Enhanced Document Management Process • Continued to scan vital documents and incorporate them into the electronic document repository. • Destroyed 325 boxes and 7 GB of electronic documents in accordance with the current Records Retention Policy. • Reviewed additional Granicus products (Public Records Request module, Digital Delivery Service) and determined these features were not cost effective. GOAL THREE Organizational Priorities and Philosophies • Updated the District’s Strategic Plan. • Conducted all activities required for the Board of Directors’ election. OTHER ACCOMPLISHMENTS • Assisted IT with the Email Retention Policy. • Worked with IT to make vital records dating back to the District’s inception accessible to the public through the District’s web portal. Levels of Service The General Administration Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Maximize Internal Capabilities Through Ongoing Professional Development (I-C) • Uphold Transparent and Accountable Fiscal and Resource Management (II-A) • Dedicate Efforts Toward System Maintenance and Modernization (IV-B) • Provide Education Programming that Empowers the Community (V-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 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Projection I-C Participate in Professional Development Opportunities 6 22 28 15 II-A Make administrative documents available online 50 52 11,000*50 IV-B Reduce number of boxes held in off-site storage 200 1,061 325 200 V-D Publish Open Meeting/Public Notices on or before statutory requirement 100%100%100%100% * Due to Laserfiche integration with the District’s website. 128 FY 2025-26 Budget Program Budget Detail FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 704,694 $ 621,000 $ 591,901 $ 648,000 $ 27,000 4% 5102 Temporary Labor 9,239 30,000 26,952 30,000 - 0% 5103 Overtime 4,047 4,000 3,485 4,000 - 0% 5200 Benefits 252,251 267,000 275,579 282,000 15,000 6% OPERATING EXPENSES 6201 Materials & Supplies 401 3,000 230 3,000 - 0% 6203 Office Supplies 2,033 3,000 977 3,000 - 0% 6301 Contract Services 128,377 12,000 9,685 42,000 30,000 250% 6303 Printing & Publishing 326 3,000 1,183 3,000 - 0% 6304 Legal Services 101,468 120,000 129,648 150,000 30,000 25% 6307 Uniforms 196 1,000 - 1,000 - 0% 6314 Litigation Services 18,311 50,000 26,952 50,000 - 0% 6402 Telephone 2,083 3,000 3,267 3,000 - 0% 6406 Postage 47 1,000 72 1,000 - 0% 6501 Memberships & Dues 97,417 104,000 91,704 99,000 (5,000)-5% 6502 Professional Development 49,321 30,000 21,244 25,000 (5,000)-17% 6503 Education Assistance - - 281 - - 0% 6504 Meetings 10,638 20,000 15,310 20,000 - 0% GENERAL ADMIN TOTAL $ 1,380,849 $ 1,272,000 $ 1,198,470 $ 1,364,000 $ 92,000 7% Significant Changes in Program Budget • The Contract Services budget was reduced during the FY 2024-25 Mid-Year Review, and $30K for General Consulting is re-budgeted for FY 2025-26. • Increased the Legal Services budget to reflect a higher hourly rate for General Counsel. Program Budget Allocation 3%$1,364,000 (General Administration) East Valley Water District | Program Summary 129 [ P A G E L E F T B L A N K I N T E N T I O N A L LY ] 130 FY 2025-26 Budget Human Resources & Risk Management PROGRAM SUMMARIES SECTION H U M A N R E S O U R C E S & R I S K M G M T . East Valley Water District | Program Summaries 131 Human Resources & Risk Management focuses on the management and development of employees in an organization. • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Director of Administrative Services 1 Human Resources Coordinator 1 Total Full-Time 2 GENERAL MANAGER/CEO HUMAN RESOURCES COORDINATOR DIRECTOR OF ADMINISTRATIVE SERVICES PROGRAM SUMMARIES CONTENTS PROGRAM PERSONNEL PROGRAM STRUCTURE 132 FY 2025-26 Budget Human Resources & Risk Management is responsible for administering programs to attract and retain a diverse and qualified workforce. To remain an industry leader, this Program analyzes compensation and benefits packages against the market and implements new initiatives based upon market demands. Acknowledging the need to build a work-life balance to support a successful workforce, Human Resources & Risk Management creates programs focused on the health and wellness of all employees. Additionally, Human Resources & Risk Management administers the Risk Management Program to: mitigate personnel injuries, property damage, and financial loss for the District; the Emergency Preparedness Program to ensure business continuity and recovery efforts in the event of a disaster; and the Pathway Program which provides water industry career education and internship opportunities to local students. Human Resources & Risk Management Goals Objectives 1 Advance the District’s Emergency Preparedness Program 1. Develop an emergency preparedness training program and prepare employees to follow plans established by the District. 2. Update District emergency response documents to reflect current conditions, regulations, and identified actions. 3. Develop and update District Emergency Operations Center training materials and enhance EOC supply inventory. 4. Review and revise the District’s administrative role in the Emergency Response Network of the Inland Empire (ERNIE). 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. Negotiate a 3-year MOU and ensure agreed-upon salaries, benefits, and related programs are implemented as adopted. 3. Facilitate quarterly activities that support employee engagement, team building, and empowerment. 3 Promote Regional Involvement and Provide Workforce Experience and Educational Opportunities 1. Develop an in-house OIT program incorporating State requirements necessary for Wastewater Treatment certification. 2. Actively engage schools within the District’s service area to promote participation in water industry workforce experiences. 3. Develop educational and interactive tours of the SNRC with hands on lab experiments for students to understand wastewater physical and biological processes. program summaries East Valley Water District | Program Summary 133 FY 2024-25 Accomplishments GOAL ONE Advanced the District’s Emergency Preparedness Program • Conducted an audit of the District’s Emergency Operations Center item inventory and purged expired items. • Completed update to the District’s Risk and Resilience Assessment and received EPA certification. • Drafted Standard Operating Procedures (SOP) Manual for the District’s Emergency Operations Center. • Conducted Flooding and Debris Flow tabletop training exercise. GOAL TWO Promoted a Positive Organizational Culture that Maintained a Supportive and Encouraging Work Environment • Graduated 13 staff from the District’s Leadership and Alignment Academy. • The District received recognition as a Top Workplace in the Inland Empire for the 10th consecutive year. • Hosted staff events including the District’s Annual Top Workplace celebration and Employee Health and Wellness Fair. • Celebrated Department Excellence through staff recognition events. GOAL THREE Promoted Regional Involvement and Provided Workforce Experience and Educational Opportunities • Five local high school students successfully completed the District’s four-week paid internship program. • Facilitated 7 water industry workforce experiences with local high schools. • Developed and hosted Empowering the Young Ladies of the Future event for graduating seniors from Indian Springs High School. Levels of Service The Human Resources & Risk Management Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Encourage Performance Based Results through Staff Empowerment (I-B) • Promote a Positive Organizational Culture (III-B) • 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 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Projection I-B Percentage of annual non-retirement employee turnover <7%1%1%5% I-B Annual performance appraisals completed in a timely manner 95%100%100%100% III-B Maintain high level of employee participation in annual employee engagement survey 90%95.5%100%73% III-D Utilization rate of District’s Employee Assistance Program >10%11.76%14.86%13.35% 134 FY 2025-26 Budget Program Budget Detail FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 355,154 $ 353,000 $ 307,653 $ 368,000 $ 15,000 4% 5103 Overtime 3,443 3,000 1,450 3,000 - 0% 5200 Benefits 186,164 214,000 224,161 232,000 18,000 8% OPERATING EXPENSES 6201 Materials & Supplies 1,213 4,000 399 8,000 4,000 100% 6203 Office Supplies 912 1,000 444 1,000 - 0% 6301 Contract Services 154,987 326,000 226,185 347,000 21,000 6% 6303 Printing & Publishing 492 1,000 - 1,000 - 0% 6304 Legal Services 8,640 15,000 3,404 15,000 - 0% 6402 Telephone 769 1,000 1,208 1,000 - 0% 6406 Postage 30 1,000 48 1,000 - 0% 6501 Memberships & Dues 4,270 5,000 5,982 5,000 - 0% 6502 Professional Development 6,389 12,000 4,792 11,000 (1,000)-8% 6504 Meetings 3,562 3,000 2,565 3,000 - 0% 6505 Employee Recognition 21,729 40,000 25,340 35,000 (5,000)-13% 6701 General Insurance 1,777,793 2,240,000 2,237,241 2,442,000 202,000 9% 6702 Insurance Claims 7,896 10,000 19,212 10,000 - 0% 6705 Retiree Benefits 481,347 351,000 607,919 551,000 200,000 57% HUMAN RESOURCES & RISK MGMT. TOTAL $ 3,014,790 $ 3,580,000 $ 3,668,003 $ 4,034,000 $ 454,000 13% Significant Changes in Program Budget • Increased Retiree Benefits budget due to increased Actuarially Determined Contribution (ADC) for Other Post- Employment Benefits (OPEB). Program Budget Allocation 9%$4,034,000 (Human Resources & Risk Management) East Valley Water District | Program Summary 135 [ P A G E L E F T B L A N K I N T E N T I O N A L LY ] 136 FY 2025-26 Budget P U B L I C A F F A I R S Public Affairs PROGRAM SUMMARIES SECTION East Valley Water District | Program Summaries 137 Public Affairs establishes solid public relationships built on a foundation of trust. • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Public Affairs/Conservation Manager 1 Public Affairs Supervisor 1 Public Affairs Coordinator 1 Public Affairs Specialist 1 Total Full-Time 4 PROGRAM SUMMARIES CONTENTS PROGRAM PERSONNEL PROGRAM STRUCTURE 138 FY 2025-26 Budget GENERAL MANAGER/CEO PUBLIC AFFAIRS COORDINATOR PUBLIC AFFAIRS SUPERVISOR PUBLIC AFFAIRS SPECIALIST PUBLIC AFFAIRS/ CONSERVATION MANAGER Public Affairs oversees internal and external communication programs consistent with the District’s Vision and Strategic Plan. Through community and media relations, this Program provides effective and strategic communications to various stakeholders. Public Affairs is also responsible for grant writing, legislative affairs, and the facility rental programs. Public Affairs Goals Objectives 1 Enhance Strategic Community Engagement Initiatives 1. Develop a Strategic Communications plan to enhance and refine the District’s messaging while engaging the community. 2. Engage with community members and organizations through pop- ups, presentations, and local events. 3. Identify new community groups, HOAs, and informal neighborhood organizations to develop relationships with the “informal” community leaders. 4. Assess and enhance the Facility Tour and Facility Rental Programs. 2 Utilize Communication Methods that Enhance the District’s Priorities 1. Update the Crisis Communications Plan and develop, exercise, and implement an annual training plan. 2. Overhaul the District’s new customer welcome packets. 3. Audit and review the customer experience and identify improvements necessary to better communicate and improve the experience. 4. Continue to showcase District projects and programs through participation in industry related conferences and awards. 3 Legislative and Grants 1. Continue to monitor, track, and review legislative bills that have an impact on District customers. 2. Monitor the legislative and regulatory environment surrounding PFAS and Low-Income Rate Assistance. 3. Continue to monitor and respond to grant opportunities in accordance with the District’s grant platform. program summaries East Valley Water District | Program Summary 139 FY 2024-25 Accomplishments GOAL ONE Enhanced Strategic Community Engagement Initiatives • Developed and adopted a Public Affairs Program Strategic Plan to enhance community engagement and neighborhood outreach. • Engaged with community members and organizations through monthly pop-ups, presentations, and local events (Lowe’s, Stater Bros, Walmart, etc). • Filled two CAC vacancies resulting from the term limits of sitting members. GOAL TWO Utilized Communication Methods that Enhanced the District’s Priorities • Enhanced the digital presence of the District through launch of a new website and increased interactions on social media. • Communicated with ratepayers of the District’s website domain transition from a .org to a .gov domain (bill inserts, envelopes, social media, etc.). • Assessed current communication platforms used in community outreach and crisis communications. Qualified for use of Ring for community digital notification. • Showcased District projects and programs through participation in industry-related conferences and received 20+ awards. GOAL THREE Legislative and Grants • Monitored, tracked, and reviewed 119 legislative bills that had an impact on District customers. • Adopted the legislative and grant platforms in December and April, respectively. • Applied for four grant opportunities in accordance with the District’s grant platform. Levels of Service The Public Affairs Program has three KPI metrics that are associated with the District’s Goals and Objectives of: • Utilize Effective Communication Methods to Foster Exceptional Community Relations (V-A) • Provide Education Programming that Empowers the Community (V-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 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Projection V-A Number of Community Advisory Commission meetings conducted 4 5 4 4 V-A Number of followers on social media 5,500*3,102 3,717 4,500 V-D Number of community event presentations 15 25 23 15 * Multi-year target 140 FY 2025-26 Budget Program Budget Detail FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 445,782 $ 517,000 $ 395,713 $ 574,000 $ 57,000 11% 5103 Overtime 10,661 17,000 9,445 17,000 - 0% 5200 Benefits 109,611 153,000 138,647 169,000 16,000 10% 5999 CIP Labor Offset (2,040) - - - - 0% OPERATING EXPENSES 6201 Materials & Supplies 65,648 95,000 42,232 111,000 16,000 17% 6203 Office Supplies 726 1,000 604 1,000 - 0% 6301 Contract Services 275,101 475,000 366,171 502,000 27,000 6% 6303 Printing & Publishing 109,111 133,000 93,893 130,000 (3,000)-2% 6304 Legal Services 3,200 5,000 - 5,000 - 0% 6307 Uniforms 1,244 2,000 720 3,000 1,000 50% 6402 Telephone 3,612 3,000 3,928 6,000 3,000 100% 6406 Postage 15,374 32,000 6,836 32,000 - 0% 6501 Memberships & Dues 9,550 23,000 8,795 19,000 (4,000)-17% 6502 Professional Development 10,886 23,000 28,948 23,000 - 0% 6503 Education - 5,000 - 5,000 - 0% 6504 Meetings 6,106 11,000 4,378 11,000 - 0% FACILITIES RENTAL EXPENSES 6201 Materials & Supplies 226 - 505 5,000 5,000 100% 6301 Contract Services 1,234 9,000 1,366 9,000 - 0% 6312 Janitorial Services 6,139 9,000 7,280 9,000 - 0% PUBLIC AFFAIRS TOTAL $ 1,072,171 $ 1,513,000 $ 1,109,461 $ 1,631,000 $ 118,000 8% Significant Changes in Program Budget • Increased Materials & Supplies budget due to hosting additional Community Facility Tours. Program Budget Allocation 4%$1,631,000 (Public Affairs) East Valley Water District | Program Summary 141 [ P A G E L E F T B L A N K I N T E N T I O N A L LY ] 142 FY 2025-26 Budget C O N S E R V A T I O N Conservation PROGRAM SUMMARIES SECTION East Valley Water District | Program Summaries 143 Conservation programs help educate customers on how to use water efficiently. • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Conservation Coordinator 1 Total Full-Time 1 GENERAL MANAGER/CEO CONSERVATION COORDINATOR PUBLIC AFFAIRS/ CONSERVATION MANAGER PROGRAM SUMMARIES CONTENTS PROGRAM PERSONNEL PROGRAM STRUCTURE 144 FY 2025-26 Budget Conservation is responsible for overseeing programs that facilitate and encourage sustainable water use throughout the District. Additionally, this program is responsible for communicating conservation benchmarks to various regulatory agencies, preparing regulatory compliance documents, and monitoring regulatory conservation requirements. Conservation Goals Objectives 1 Coordinate Program Working Groups to Complete Conservation Reports and Monitor Progress on Water Use Efficiency Objectives 1. Continue to hold group meetings for the purpose of tracking informational data requests for State mandated reports and identifying data inputs for new reporting requirements. 2. Prepare and submit required water efficiency reports such as the Drought Risk Assessment and Urban Water Use Objectives. 3. Facilitate District programs to meet Urban Water Use Objectives. 2 Evaluate Rebate Program Success and Implement Program Modifications Objectives 1. Work with IT and Finance to digitize the rebate program and improve the customer experience. 2. Continue to analyze water consumption data to better understand historical conservation responses to forecast trends. 3. Enhance rebate programs to maximize customer water savings through development of new rebate opportunities. 3 Engage and Educate the Community on Water Resources Consistent with State Curriculum Objectives 1. Continue to enhance engagement with students in a classroom environment to provide current water conservation and water resource materials consistent with State curriculum. 2. Create an informative video series to engage with the community on “how to be water efficient.” program summaries East Valley Water District | Program Summary 145 FY 2024-25 Accomplishments GOAL ONE Coordinated Necessary Program Working Groups to Complete Conservation Reports • Held group meetings to track informational data requests for State mandated reports and identified data inputs for new reporting requirements. • Prepared and submitted the required water efficiency reports such as the Drought Risk Assessment and Urban Water Use Objectives. GOAL TWO Evaluated Rebate Program Success and Implemented Program Enhancements • Streamlined the rebate program to maximize customer water savings in line with new State objectives (WBIC and Leak Repair rebate). • Used WaterView platform to analyze water consumption data to better understand historical conservation responses to forecast trends. GOAL THREE Engaged and Educated Students on Water Resources Consistent with State Curriculum • Enhanced engagement with students in a classroom environment to provide current water conservation and water resource materials consistent with State curriculum. • Developed new educational material and classroom student engagement tools, including Aqua Squad and the Student Art Contest. Levels of Service The Conservation Program has five KPI metrics that are associated with the District’s Goals and Objectives of: • Identify Opportunities to Optimize Natural Resources (I-A) • Provide Education Programming that Empowers the Community (V-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 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Projection I-A Meet SWRCB (SBX7-7) conservation goal 172 gpcd 136 116 125 I-A Maintain significant level of participation in annual conservation rebate programs 250 250 257 250 V-D Number of educational materials created 100 107 109 100 V-D Number of conservation workshops held 4 4 4 4 V-D Number of attendees at workshops 300 250 260 280 GPCD = Gallons Per Capita Per Day 146 FY 2025-26 Budget Program Budget Detail FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 130,343 $ 123,000 $ 114,501 $ 126,000 $ 3,000 2% 5103 Overtime 5,586 7,000 5,081 7,000 - 0% 5200 Benefits 36,349 44,000 38,622 45,000 1,000 2% OPERATING EXPENSES 6201 Materials & Supplies 11,069 62,000 40,248 56,000 (6,000)-10% 6203 Office Supplies 193 1,000 292 1,000 - 0% 6205 Conservation Rebates 23,133 85,000 88,644 85,000 - 0% 6301 Contract Services 86,262 217,000 89,221 263,000 46,000 21% 6303 Printing & Publishing 16,608 52,000 21,537 42,000 (10,000)-19% 6304 Legal Services - 1,000 - 1,000 - 0% 6307 Uniforms 482 1,000 432 1,000 - 0% 6402 Telephone 369 2,000 663 4,000 2,000 100% 6406 Postage 2,115 24,000 10,229 12,000 (12,000)-50% 6501 Memberships & Dues 7,784 8,000 12,559 8,000 - 0% 6502 Professional Development 2,171 3,000 1,083 6,000 3,000 100% 6504 Meetings 717 1,000 773 1,000 - 0% CONSERVATION TOTAL $ 323,181 $ 631,000 $ 423,885 $ 658,000 $ 27,000 4% Significant Changes in Program Budget • To align with State requirements, Conservation will increase the Contract Services budget to engage a partner for support with the CII Mixed Use Meter (MUM) analysis and Dedicated Irrigation Meter (DIM) mapping. Program Budget Allocation 2%$658,000 (Conservation) East Valley Water District | Program Summary 147 [ P A G E L E F T B L A N K I N T E N T I O N A L LY ] 148 FY 2025-26 Budget F I N A N C E & AC C O U N T I N G Finance & Accounting PROGRAM SUMMARIES SECTION East Valley Water District | Program Summaries 149 Finance & Accounting manage, plan, and direct financial resources. • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Chief Financial Officer 1 Finance Manager 1 Sr. Accountant 1 Sr. Accounting Technician 1 Accounting Technician 1 Business Services Coordinator 1 Total Full-Time 6 BUSINESS SERVICES COORDINATOR GENERAL MANAGER/CEO SR. ACCOUNTANT SR. ACCOUNTING TECHNICIAN ACCOUNTING TECHNICIAN CHIEF FINANCIAL OFFICER FINANCE MANAGER PROGRAM SUMMARIES CONTENTS PROGRAM PERSONNEL PROGRAM STRUCTURE 150 FY 2025-26 Budget Finance and Accounting oversees the business operations of the District to provide accountability and adequate control over the use of District funds. Staff maintains the financial systems and records in accordance with GAAP as well as applicable laws, regulations, and District policies. Finance & Accounting Goals Objectives 1 Ensure Financial Stability with Full Understanding of Operational Complexities 1. Ensure fiscal agent account transactions for revenue and CFD bonds are recorded timely. 2. Update the Procurement and Credit Card policies and present policies to the Board for approval. 3. Finance and IT management will consult with Tyler to further explore migration to Tyler’s Munis Enterprise ERP. 4. Assemble financing team to assist with debt financing at beginning of fiscal year 2026-27. 5. Review and assess the current investment strategy, investment manager relationships, and investment types. 2 Fully Understand the Cost and Accounting Associated with Placing the SNRC in Service 1. Assist Water Reclamation Manager in monthly budget tracking and setup tools to assist in managing expenses. 2. Continue to invoice San Bernardino Valley for delivery of recycled water. 3. Review adequacy of rates based on current costs of wastewater services and reserve levels. program summaries East Valley Water District | Program Summary 151 FY 2024-25 Accomplishments GOAL ONE Ensured Financial Stability with Full Understanding of Operational Complexities • Completed closeout of SNRC reimbursement funds to ensure cash flows were able to support operations and other capital projects. • Ensured fiscal agent account transactions for revenue and CFD bonds were recorded at least quarterly. • Worked with a consultant to complete the Pension Unfunded Accrued Liability Policy 7.8 that was adopted in February. • Worked with Customer Service to solicit and review three vendor proposals for assessment of convenience fees. • Evaluated pros and cons of migrating to Tyler’s Munis Enterprise ERP. GOAL TWO Fully Understand the Cost and Accounting Associated with Placing the SNRC in Service • Received SNRC debt service schedule from SWRCB and incorporated it into the existing debt service repayment plan. • Met with the Water Reclamation Manager monthly to understand SNRC operating expenses. • Ensured timely invoicing to San Bernardino Valley for delivery of recycled water. • Added Waste dischargers pre-treatment invoicing to monthly utility bills. Levels of Service The Finance & Accounting Program has six KPI metrics that are associated with the District’s Goals and Objectives of: • Uphold Transparent and Accountable Fiscal and Resource 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 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Projection II-A Days to prepare and present Annual Report after fiscal year end 135 days 117 119 135 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 4 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 14 12 13 14 II-A Consecutive years Certificate of Achievement for Excellence in Financial Reporting received for PAFR 9 7 8 9 152 FY 2025-26 Budget Program Budget Detail FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 816,749 $ 823,000 $ 729,196 $ 877,000 $ 54,000 7% 5103 Overtime 13,145 13,000 16,818 13,000 - 0% 5200 Benefits 347,071 383,000 395,412 430,000 47,000 12% OPERATING EXPENSES 6203 Office Supplies 5,171 7,000 10,093 7,000 - 0% 6301 Contract Services 93,923 111,500 116,616 167,000 55,500 50% 6302 Banking Services 32,254 32,000 35,865 42,000 10,000 31% 6303 Printing & Publishing 1,860 5,000 3,121 4,000 (1,000)-20% 6304 Legal Services 5,610 10,000 17,493 10,000 - 0% 6307 Uniforms 269 1,500 515 2,000 500 33% 6402 Telephone 1,659 3,000 1,747 3,000 - 0% 6406 Postage 416 1,000 355 1,000 - 0% 6501 Memberships & Dues 2,970 5,000 2,560 5,000 - 0% 6502 Professional Development 20,320 14,000 16,432 20,000 6,000 43% 6503 Education Assistance - 5,000 - 5,000 - 0% 6504 Meetings 4,476 5,000 6,617 5,000 - 0% 6704 Bad Debt 104 - - - - 0% FINANCE & ACCOUNTING TOTAL $ 1,345,997 $ 1,419,000 $ 1,352,840 $ 1,591,000 $ 172,000 12% Significant Changes in Program Budget • Increased Contract Services budget due to increased expenses for accounting software maintenance and obtaining a new debt financing team. Program Budget Allocation 4%$1,591,000 (Finance & Accounting) East Valley Water District | Program Summary 153 [ P A G E L E F T B L A N K I N T E N T I O N A L LY ] 154 FY 2025-26 Budget I N F O R M A T I O N T E C H N O L O G Y Information Technology PROGRAM SUMMARIES SECTION East Valley Water District | Program Summaries 155 Information Technology coordinates and implements agency-wide technology by facilitating vendor access and support for technology focused projects. • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Information Technology Manager 1 Network Administrator 1 Information Technology Analyst 1 Information Technology Technician 1 Total Full-Time 4 GENERAL MANAGER/CEO NETWORK ADMINISTRATOR INFORMATION TECHNOLOGY ANALYST INFORMATION TECHNOLOGY TECHNICIAN CHIEF FINANCIAL OFFICER INFORMATION TECHNOLOGY MANAGER PROGRAM SUMMARIES CONTENTS PROGRAM PERSONNEL PROGRAM STRUCTURE 156 FY 2025-26 Budget 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. This Program implements routine cybersecurity training campaigns to mitigate financial and data loss. In addition to software management, IT proactively schedules hardware replacements from the point of procurement to installation. Information Technology Goals Objectives 1 Ensure Reliability of Technology Infrastructure for Primary Business and Operation Requirements 1. Migrating SCADA radios to cell gateways and hardware at 42 sites. 2. Replace technology that has reached end of its useful life to comply with hardware replacement schedule. 3. Work with Finance to assess the Tyler ERP and review opportunity costs of remaining with on-premise solution. 2 Enhance Systems and Cybersecurity Measures for Response Functions 1. Upgrade all security cameras at SNRC Administration and Operations buildings. 2. Implement Multi-Factor Authentication (MFA) throughout the Microsoft platform. 3. Upgrade network security firewalls at all Water Production sites. 3 Analyze Current Systems to Enhance Reporting and Automate Processes 1. Work with the General Manager/CEO and Department heads to identify data-based decisions and source of supporting data. 2. Work with the Laserfiche development team and Administration to implement Engineering’s automation and workflow in the document repository, in accordance with the retention schedule. 3. Work with Geographic Information System (GIS) consultant to design and launch a public portal for developers to access as-built designs of the District. 4. Develop artificial intelligence (A.I.) policy and guidelines. program summaries East Valley Water District | Program Summary 157 FY 2024-25 Accomplishments GOAL ONE Ensured Reliability of Technology Infrastructure for Primary Business and Operation Requirements • Upgraded the Cisco phone system to hosted Cisco WebEx Calling. • Upgraded SCADA radios and technology at Plants 56 and 141. • Replaced 30+ staff hardware that reached end of its useful life to comply with hardware replacement schedule. GOAL TWO Improved Systems and Cybersecurity Measures for Response Functions • Replaced current email security with Cisco email cloud security. • Implemented new technology and Internet Fiber at Plant 39 Warehouse. • Upgraded all security cameras at District Headquarters and Plant 39. • Updated all District email addresses to align with the new website .GOV domain. GOAL THREE Analyzed Current Systems to Enhance Reporting and Automate Processes • Updated and upgraded GIS database to Utility Network to reflect most current District assets. • Implemented Analytics dashboard of all GIS infrastructure assets • Upgraded IVR system to IVR Relay in order to support additional reporting needs and payment options. OTHER ACCOMPLISHMENTS • Completed Tyler workflows with Customer Service and Finance. • Contracted with ATSI for SCADA infrastructure support. • Assisted Public Affairs with transition of the District’s website from .ORG to .GOV • Implemented the asset management module in Energov Asset Management for Water Reclamation. • Upgraded call recording platform ELEVEO to integrate with hosted WebEx Calling platform. • Implemented new cloud hosted IT helpdesk and remote assistance software. • Migrated cell network provider from Business network to Public Safety network in order to receive priority connectivity during an Emergency Operation Center activation. • Replaced SCADA radio monitoring and Network monitoring software. Levels of Service The Information Technology Program has six KPI metrics that are associated with the District’s Goals and Objectives of: • Provide Exceptional Customer Service (III-C) • Develop Projects and Programs to Ensure Safe, Reliable, and Resilient Service (IV-A) The program’s performance related to these metrics are included in the table on the following page. 158 FY 2025-26 Budget Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Projection III-C Receive ‘Excellent’ scores on IT satisfaction surveys submitted by staff >95%100%100%100% III-C Minimize resolution time for help desk issues submitted by staff 24 Hrs.4.8 12 24 IV-A Elevate Cybersecurity awareness by sending out test ‘phishing’ emails 800 1,200 1,200 1,200 IV-A Maximize system availability 99%99%99%99% IV-A Cybersecurity awareness results for phishing email click rate <7%7.7%6.5 7% IV-A Complete disaster recovery drill (system restoration, power outages, emergency notifications) 2 4 4 4 Program Budget Detail FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 430,215 $ 487,000 $ 454,922 $ 560,000 $ 73,000 15% 5102 Temporary Labor 20,556 - - - - 0% 5200 Benefits 248,850 280,000 330,057 353,000 73,000 26% OPERATING EXPENSES 6201 Materials & Supplies 70,616 80,000 95,578 80,000 - 0% 6203 Office Supplies 2,657 5,000 863 1,000 (4,000)-80% 6301 Contract Services 527,227 1,004,000 1,055,205 954,000 (50,000)-5% 6307 Uniforms - 1,000 1,835 1,000 - 0% 6402 Telephone 21,981 12,000 22,124 12,000 - 0% 6501 Memberships & Dues 2,460 4,000 - 4,000 - 0% 6502 Professional Development 3,960 1,000 168 13,000 12,000 1200% 6504 Meetings 96 - - - - 0% IT TOTAL $ 1,328,618 $ 1,874,000 $ 1,960,752 $ 1,978,000 $ 104,000 6% Significant Changes in Program Budget • Promoted the part-time Intern to full-time Information Technology Technician. • Reduced Operating budget by $50,460 by consolidating cost and removing old services. • Professional Development budget increased due to additional trainings/conferences staff plan to attend. Program Budget Allocation5%$1,978,000 (Information Technology) East Valley Water District | Program Summary 159 [ P A G E L E F T B L A N K I N T E N T I O N A L LY ] 160 FY 2025-26 Budget C U S T O M E R S E R V I C E Customer Service PROGRAM SUMMARIES SECTION East Valley Water District | Program Summaries 161 Customer Service downloads meter read data, audits data, and submits data files to a third-party vendor for bill printing and mailing. • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Customer Service Supervisor 1 Customer Service Representative III 2 Customer Service Representative II 4 Total Full-Time 7 Part-Time Customer Service Representative I 1 Total Part-Time 1 GENERAL MANAGER/CEO CUSTOMER SERVICE REPRESENTATIVE III CUSTOMER SERVICE REPRESENTATIVE II CHIEF FINANCIAL OFFICER CUSTOMER SERVICE SUPERVISOR (4) (2) CUSTOMER SERVICE REPRESENTATIVE I PT PROGRAM SUMMARIES CONTENTS PROGRAM PERSONNEL PROGRAM STRUCTURE 162 FY 2025-26 Budget The Customer Service Department serves as the primary point of contact for residents and businesses, assisting with account setup, billing inquiries, and service requests. They help customers understand their water usage, resolve issues, and ensure timely payment processing. Customer Service Goals Objectives 1 Address Organizational Service Needs 1. Implement new payment options for District customers that are already supported by the District’s billing software. 2. Develop opportunities for Customer Service to learn and be exposed to District operations. 3. Analyze the District’s answering service to determine efficient and effective partners. 4. Continue seeking cooperation from the County and City of San Bernardino to identify additional billable ADUs within mutual service areas. 2 Enhance Customer Utilization of Resource Conservation Tools 1. Implement an email signature that will include AMI portal information on all Customer Service outbound communications. 2. Register ten customers for leak alerts monthly. 3. Work with Public Affairs to create bill inserts encouraging use of paperless billing. 3 Refine Data in Billing System Toward Compliance with State Indoor and Outdoor Water Usage Goals 1. Continue to track the number of household occupants in the Billing system to reconcile with District population from external sources. 2. Reduce the number of accounts with default occupant numbers by 10%. 3. Complete classification for Commercial, Industrial, and Institutional (CII) customers in accordance with WaterUse regulations. program summaries East Valley Water District | Program Summary 163 FY 2024-25 Accomplishments GOAL ONE Developed Strategies to Address Organizational Service Needs • Reviewed the Tyler text-to-pay option and determined that a more comprehensive review of all vendor offerings is needed. • Implemented enforcement of temporary meter reader availability charge in January 2025. GOAL TWO Reviewed Regulatory Changes that Required Updates to District Processes / Fee Schedules • Worked with Water Quality and the City of Highland staff to identify billable ADUs within Highland. GOAL THREE Enhanced Customer Utilization of AMI Data • Used every opportunity when talking to customers about leaks and high bills to introduce the AMI portal. • Registered 20 customers for leak alerts monthly. GOAL FOUR Refined Data in Billing System Toward Compliance with State Indoor and Outdoor Water Usage Goals • Determined that the Billing system has 10.69% more occupants/ population than census data. • Identified customer accounts with default occupant data and reduced the number of accounts using default occupants by 10%. • Implemented a process to have Customer Service Representatives confirm the number of occupants during phone calls. Levels of Service The Customer Service Program has five KPI metrics that are associated with the District’s Goals and Objectives of: • Maximize Internal Capabilities Through Ongoing Professional Development (I-C) • Provide Exceptional Customer Service (III-C) • Dedicate Efforts Toward System Maintenance and Modernization (IV-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 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Projection I-C Number of customer service training hours per employee 16 6 7 8 III-C Reduce number of customers disconnected for non-payment each year 1,800 2,078 1,943 2,000 III-C Number of customer payments received through convenient off-site locations 3,300 3,208 3,037 3,300 IV-B Customers enrolled in paperless billing 2,000 1,614 1,842 2,000 IV-B Customers enrolled in the Pre-Authorized Payment Plan (auto-debit)*5,000 4,053 4,805 5,000 * Major increase in Auto pay was assisted by the Auto pay feature with credit card available online. This was never added to previous reporting. 164 FY 2025-26 Budget Program Budget Detail FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 634,499 $ 686,000 $ 628,865 $ 723,000 $ 37,000 5% 5103 Overtime 10,694 7,000 10,570 11,000 4,000 57% 5200 Benefits 291,482 325,000 339,507 349,000 24,000 7% OPERATING EXPENSES 6201 Materials & Supplies 151 - - - - 0% 6203 Office Supplies 2,119 7,000 1,885 7,000 - 0% 6301 Contract Services 211,591 248,000 236,041 243,000 (5,000)-2% 6302 Banking Services 392,993 380,000 401,550 400,000 20,000 5% 6303 Printing & Publishing 8,416 10,000 3,587 10,000 - 0% 6304 Legal Services - 5,000 - 5,000 - 0% 6307 Uniforms 2,639 4,000 2,390 4,000 - 0% 6308 Billing Services 70,372 57,000 91,062 92,000 35,000 61% 6309 Shut Off Notice Services 304,044 300,000 294,410 300,000 - 0% 6402 Telephone 9,000 8,000 10,916 13,000 5,000 63% 6406 Postage 176,724 153,000 185,612 201,000 48,000 31% 6502 Professional Development - 13,000 5,022 13,000 - 0% 6504 Meetings 2,194 3,000 2,725 3,000 - 0% 6703 Cash Over / Short (195) 1,000 (1,481) 1,000 - 0% 6704 Bad Debt 5,049 5,000 6,957 5,000 - 0% CUSTOMER SERVICE TOTAL $ 2,121,772 $ 2,212,000 $ 2,219,618 $ 2,380,000 $ 168,000 8% Significant Changes in Program Budget • Increased Billing Services budget due to vendor rate increases. • Increased Postage budget due to increased number of customer bills and delinquent notices. Program Budget Allocation 5%$2,380,000 (Customer Service) East Valley Water District | Program Summary 165 [ P A G E L E F T B L A N K I N T E N T I O N A L LY ] 166 FY 2025-26 Budget ME T E R S E R V I C E S Meter Service PROGRAM SUMMARIES SECTION East Valley Water District | Program Summaries 167 Meter Services is responsible for maintaining the District's smart meter network, on-site customer meter- related requests, and customer service assistance. • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Meter Technician II 2 Total Full-Time 2 GENERAL MANAGER/CEO OPERATIONS MANAGER FIELD SERVICE SUPERVISOR METER TECHNICIAN II DIRECTOR OF ENGINEERING & OPERATIONS (2) PROGRAM SUMMARIES CONTENTS PROGRAM PERSONNEL PROGRAM STRUCTURE 168 FY 2025-26 Budget 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; and conducts routine maintenance, testing, and replacement of meters to ensure billing is accurate. Meter Services Goals Objectives 1 Continue Preventative Maintenance and Inspections of the AMI System 1. Identify and replace eight vaults in need of lid replacements. 2. Visually inspect meter boxes in routes where read problems are occurring. 2 Work Towards a Goal of 95% Read Reliability 1. Confirm and correct MIU (Meter Interface Unit) and meter numbers on meters that are not transmitting reliable read data. 2. Continue to monitor read reliability throughout the District and provide the General Manager/CEO with monthly updates. 3 Continue Meter Testing Programs in Compliance with State Water Audits Best Practices 1. Conduct an audit of 10% of large meters for accuracy to ensure compliance with AWWA standards. 2. Replace large meters that do not meet AWWA standards. program summaries East Valley Water District | Program Summary 169 FY 2024-25 Accomplishments GOAL ONE Implemented Inspection Program for AMI Meters • Replaced eight steal vault lids with spring loaded fiberglass lids to enhance safety to reduce potential injury during large meter testing and inspections. • Visually inspected 100% of meter boxes in routes where meter read problems occurred. GOAL TWO Worked with Customer Service to Address Coverage Issues with the AMI Network • Corrected 25 MIU (meter interface unit) and meter numbers in billing database for errors made during installation. • Added tower mounted data collector at Plant 132 to enhance collection of reads. GOAL THREE Continued Meter Testing Programs in Compliance with State Water Audits Best Practices • Conducted an audit of 10% of large meters for accuracy and ensured compliance with AWWA standards. • Replaced 16 large meters that did not meet AWWA standards. Levels of Service The Meter Services Program has three KPI metrics that are associated with the District’s Goals and Objectives of: • Identify Opportunities to Optimize Natural Resources (I-A) • Provide Exceptional Customer Service (III-C) • Dedicate Efforts towards System Maintenance and Modernization (IV-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 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Projection I-A Number of large meters tested for accuracy 11 11 11 11 III-C Respond to customer requests for assistance within two hours 100%100%100%100% IV-B Number of employees trained on the Mobile Data Collector and access Neptune 360 4 4 4 4 170 FY 2025-26 Budget Program Budget Detail FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 179,700 $ 181,000 $ 171,128 $ 186,000 $ 5,000 3% 5103 Overtime 941 6,000 3,333 6,000 - 0% 5200 Benefits 88,008 104,000 103,843 109,000 5,000 5% OPERATING EXPENSES 6201 Materials & Supplies - 1,000 - 1,000 - 0% 6202 Tools - 3,000 - 3,000 - 0% 6301 Contract Services - 6,000 7,527 6,000 - 0% 6307 Uniforms 1,455 2,000 2,515 2,000 - 0% 6402 Telephone 1,391 3,000 2,416 2,000 (1,000)-33% 6502 Professional Development 60 - - - - 0% METER SERVICES TOTAL $ 271,555 $ 306,000 $ 290,762 $ 315,000 $ 9,000 3% Significant Changes in Program Budget • None. Program Budget Allocation 1%$315,000 (Meter Services) East Valley Water District | Program Summary 171 [ P A G E L E F T B L A N K I N T E N T I O N A L LY ] 172 FY 2025-26 Budget E N G I N E E R I N G Engineering PROGRAM SUMMARIES SECTION East Valley Water District | Program Summaries 173 Engineering coordinates and supports new development within the District's service area by streamlining plan checking and inspection efforts. • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Director of Engineering & Operations 1 Senior Engineer 2 Total Full-Time 3 GENERAL MANAGER/CEO DIRECTOR OF ENGINEERING & OPERATIONS SENIOR ENGINEER (2) PROGRAM SUMMARIES CONTENTS PROGRAM PERSONNEL PROGRAM STRUCTURE 174 FY 2025-26 Budget 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. Engineering Goals Objectives 1 Develop and Implement the District’s Capital Improvement Program to Address Rehabilitation and Maintenance Needs While Preparing for New Development 1. Retrofit and upgrade the water facilities at Plant 101. 2. Conduct the bid phase and start construction of grant-funded pipeline replacements, pending FEMA approval of Phase I. 3. Complete rehabilitation of the reservoir at Plant 140. 4. Complete evaluation of portable dams to ensure proper containment processes are in place for Sanitary Sewer Overflow (SSO) in Warm Springs Channel. 2 Develop Plans to Optimize District Water and Energy Resources 1. Update the Urban Water Management Plan (UWMP) by end of FY 2025-26. 2. Complete design and construction of equipping the new well at Plant 129. 3. Develop RFP for Engineering analysis of alternative energy generation opportunities. 4. Complete well drilling and equipping design packages for new Well 152 at District Headquarters site to improve water supply capacity. program summaries East Valley Water District | Program Summary 175 FY 2024-25 Accomplishments GOAL ONE Developed and Implemented the District’s Capital Improvement Program to Address Rehabilitation and Maintenance Needs While Preparing for New Development • Completed rehabilitation of the reservoir at Plant 56. • Engaged construction contractor for rehabilitation of Plant 101. • Review alternatives for North Fork Plunge Creek Crossing was superseded post Line Fire event. GOAL TWO Developed Plans to Optimize District Water and Energy Resources • Completed preliminary investigation on grant opportunity to add preliminary treatment at Plant 134. • Completed new groundwater well siting investigation that determined Plant 129 is a suitable location. • Completed the bid and drilling phase for the new groundwater well at Plant 129. • Completed design of grant-funded seismic retrofits of seven storage reservoirs. Levels of Service The Engineering Program has three KPI metrics that are associated with the District’s Goals and Objectives of: • Provide Exceptional Customer Service (III-C) • Develop Projects and Programs to Ensure Safe, Reliable, and Resilient Service (IV-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 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Projection III-C Complete development infrastructure plan reviews in < 14 days 100%100%80%90% III-C Issue development impact fee costs estimates in < 2 days 100%100%95%85% IV-A Initiate fully funded projects included in the current year CIP 100%100%100%100% 176 FY 2025-26 Budget Program Budget Detail FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 711,299 $ 658,000 $ 569,707 $ 678,000 $ 20,000 3% 5102 Temporary Labor - 145,000 - - (145,000)-100% 5200 Benefits 128,719 154,000 133,911 161,000 7,000 5% 5999 CIP Labor Offset (52,992) - - - - 0% OPERATING EXPENSES 6201 Materials & Supplies 34 3,000 - 3,000 - 0% 6202 Tools 5,663 1,000 - 1,000 - 0% 6203 Office Supplies 841 2,000 562 2,000 - 0% 6301 Contract Services 376,789 174,000 68,605 605,000 431,000 248% 6303 Printing & Publishing - 1,000 307 1,000 - 0% 6304 Legal Services 10,710 15,000 9,733 15,000 - 0% 6307 Uniforms 319 3,000 533 3,000 - 0% 6402 Telephone 2,664 3,000 4,184 3,000 - 0% 6405 Permits 106,265 59,000 69,899 94,000 35,000 59% 6406 Postage 33 1,000 149 1,000 - 0% 6501 Memberships & Dues 1,437 4,000 1,857 5,000 1,000 25% 6502 Professional Development 5,913 12,000 10,973 7,000 (5,000)-42% 6504 Meetings 86 1,000 652 1,000 - 0% ENGINEERING TOTAL $ 1,297,780 $ 1,236,000 $ 871,072 $ 1,580,000 $ 344,000 28% Significant Changes in Program Budget • Increased Contract Services budget for additional contracts related to updating the UWMP and Bunker Hill Basin Salt Mitigation Coalition. Program Budget Allocation4%$1,580,000 (Engineering) East Valley Water District | Program Summary 177 [ P A G E L E F T B L A N K I N T E N T I O N A L LY ] 178 FY 2025-26 Budget WA T E R PR O D U C T I O N Water Production PROGRAM SUMMARIES SECTION East Valley Water District | Program Summaries 179 Water Production specializes in managing the overall water distribution system. • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Operations Manager 1 Sr. Water Production Operator 1 Water Production Operator III 2 Water Production Operator II 2 Sr. Administrative Assistant 1 Total Full-Time 7 SR. ADMINISTRATIVE ASSISTANT GENERAL MANAGER/CEO OPERATIONS MANAGER WATER PRODUCTION SUPERVISOR SR. WATER PRODUCTION OPERATOR DIRECTOR OF ENGINEERING & OPERATIONS WATER PRODUCTION OPERATOR II (2) WATER PRODUCTION OPERATOR III (2) PROGRAM SUMMARIES CONTENTS PROGRAM PERSONNEL PROGRAM STRUCTURE 180 FY 2025-26 Budget 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. Water Productionprogram summaries Goals Objectives 1 Implement a Plan to Identify and Enhance Water Sources’ Requirements Due to the SNRC Discharge Location 1. Continue to work with contractor and Engineering to complete rehabilitation of Plant 101. 2. Work with contractor on new well at Plant 129. 2 Enhance the SCADA System to Improve Water Production Reliability 1. Work with IT to replace radio communication with cell gateways and firewalls at 42 sites. 2. Implement back-up power at sites with no generator capability. 3 Rehabilitate Plant Components to Ensure Water Production 1. Coordinate with Water Maintenance to replace isolation valves and associated plumbing to repair critical Intermediate to Lower Zone PRV (Pacific/Osbun). 2. Solicit proposals and finalize new master agreements for pump and motor maintenance. East Valley Water District | Program Summary 181 FY 2024-25 Accomplishments GOAL ONE Implemented a Plan to Identify and Enhance Water Sources’ Requirements Due to the SNRC Discharge Location • Supported work of contractor for rehabilitation of Plant 101. • Supported construction of new well at Plant 129 and identified a second site to facilitate start of preliminary design work. • Evaluated and determined that a study for alternate use of plant and equipment at Plant 143 is not needed. GOAL TWO Enhanced the SCADA System to Improve Water Production Reliability • Began routine emergency backups for the entire SCADA system. • Worked with the SCADA contractor to replace SCADA radios at Del Rosa; and Plants 28, 34, and 59. GOAL THREE Rehabilitated Plant Components to Ensure Water Production • Worked with Engineering for rehabilitation of reservoir at Plant 56. • Drafted proposal for new master agreements for pump and motor maintenance. Levels of Service The Water Production Program has six KPI metrics that are associated with the District’s Goals and Objectives of: • Utilize Current Technology and Invest in Future Solutions (I-D) • Develop Projects and Programs to Ensure Safe, Reliable, and Resilient Service (IV-A) • Dedicate Effort towards System Maintenance and Modernization (IV-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 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Projection I-D Perform upgrades to SCADA radios as recommended by consultant 5/Yr 4 4 5 IV-A Complete all efficiency testing for all well pumps 12 100%100%100% IV-A Schedule well replacement of pumps based on SCE reports*1 1 2 1 IV-A Complete all efficiency testing on booster pumps 30 100%100%100% IV-B Perform or schedule repairs recommended by reservoir inspection report 1/Yr 1 1 1 IV-B Implement available SCADA software updates 100%100%100%100% * New KPI starting in FY 2023-24 182 FY 2025-26 Budget Program Budget Detail ADMINISTRATION FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 287,140 $ 303,000 $ 278,523 $ 312,000 $ 9,000 3% 5103 Overtime 31 1,000 - 1,000 - 0% 5104 Standby 52,022 47,000 37,012 47,000 - 0% 5200 Benefits 172,290 196,000 205,546 208,000 12,000 6% OPERATING EXPENSES 6201 Materials & Supplies 3,120 3,000 1,216 3,000 - 0% 6202 Tools 3,112 6,000 1,476 6,000 - 0% 6203 Office Supplies 5,797 4,000 4,815 4,000 - 0% 6301 Contract Services 131,438 110,000 144,860 111,000 1,000 1% 6307 Uniforms 15,040 15,000 12,100 15,000 - 0% 6402 Telephone 14,175 14,000 8,320 14,000 - 0% 6501 Memberships & Dues 539 3,000 727 3,000 - 0% 6502 Professional Development 8,027 7,000 2,855 7,000 - 0% 6504 Meetings 479 1,000 363 1,000 - 0% ADMINISTRATION TOTAL $ 693,210 $ 710,000 $ 697,813 $ 732,000 $ 22,000 3% WELLS FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 301,294 $ 234,000 $ 242,404 $ 240,000 $ 6,000 3% 5103 Overtime 15,084 17,000 38,489 40,000 23,000 135% 5200 Benefits 86,952 67,000 68,746 70,000 3,000 4% OPERATING EXPENSES 6101 Purchased Water 426,047 300,000 300,075 300,000 - 0% 6102 Groundwater Replenishment 360,876 352,000 184,759 352,000 - 0% 6103 Water Assessment 286,053 181,000 171,000 171,000 (10,000)-6% 6201 Materials & Supplies 30,643 45,000 84,880 45,000 - 0% 6204 Chemicals 130,988 150,000 125,024 150,000 - 0% 6301 Contract Services 14,977 265,000 366,540 230,000 (35,000)-13% 6403 Electricity 1,924,292 2,275,000 1,448,417 2,275,000 - 0% 6405 Permits 81,702 100,000 127,847 100,000 - 0% WELLS TOTAL $ 3,658,908 $ 3,986,000 $ 3,158,181 $ 3,973,000 $ (13,000)0% East Valley Water District | Program Summary 183 Significant Changes in Program Budget • Water Production is anticipating less repairs this fiscal year and have decreased the Contract Services budget for Wells. Program Budget Allocation 14%$6,207,000 (Water Production) BOOSTERS FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 117,394 $ 132,000 $ 115,378 $ 135,000 $ 3,000 2% 5103 Overtime 10,360 14,000 19,641 18,000 4,000 29% 5200 Benefits 56,022 68,000 74,849 73,000 5,000 7% OPERATING EXPENSES 6201 Materials & Supplies 16,674 20,000 13,475 20,000 - 0% 6301 Contract Services 6,720 100,000 163,867 110,000 10,000 10% 6403 Electricity 644,245 710,000 695,585 710,000 - 0% BOOSTERS TOTAL $ 851,415 $ 1,044,000 $ 1,082,795 $ 1,066,000 $ 22,000 2% RESERVOIRS FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 194,584 $ 215,000 $ 167,935 $ 233,000 $ 18,000 8% 5103 Overtime 70,723 60,000 26,684 30,000 (30,000)-50% 5200 Benefits 64,444 65,000 54,553 68,000 3,000 5% OPERATING EXPENSES 6201 Materials & Supplies 5,449 30,000 11,171 30,000 - 0% 6204 Chemicals 13,900 30,000 - 30,000 - 0% 6301 Contract Services 42,393 45,000 13,859 45,000 - 0% RESERVOIRS TOTAL $ 391,493 $ 445,000 $ 274,202 $ 436,000 $ (9,000)-2% WATER PRODUCTION TOTAL $ 5,595,026 $ 6,185,000 $ 5,212,991 $ 6,207,000 $ 22,000 0% 184 FY 2025-26 Budget WA T E R T R E A T M E N T Water Treatment PROGRAM SUMMARIES SECTION East Valley Water District | Program Summaries 185 Water Treatment manages two sources of water, including surface water and groundwater. • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Water Production Supervisor 1 Sr. Treatment Plant Operator 1 Total Full-Time 2 GENERAL MANAGER/CEO OPERATIONS MANAGER WATER PRODUCTION SUPERVISOR SR. TREATMENT PLANT OPERATOR DIRECTOR OF ENGINEERING & OPERATIONS PROGRAM SUMMARIES CONTENTS PROGRAM PERSONNEL PROGRAM STRUCTURE 186 FY 2025-26 Budget Water Treatment is responsible for the management of two different sources of supply used by the District. The District operates Plant 134, a Surface Water Treatment Plant, that can treat Santa Ana River water and imported water from the State Water Project. Staff also operate two unique groundwater treatment facilities. Water Treatmentprogram summaries Goals Objectives 1 Maximize Plant 134 Water Production 1. Work with Water Quality to monitor backwash sludge for the solids handling process. 2. Prioritize source water in real-time to maximize treatment processes. 2 Develop a Long-Term Replacement Plan Based on Plant Performance 1. Track individual membrane integrity test (MIT) results and repairs to prioritize replacement schedule. 2. Begin second cycle of replacing membrane trains at Plant 134. 3 Evaluate Hydroelectric Station 1. Develop standard operating procedures for different high pressure operational scenarios. 2. Work with contractor to ensure proper maintenance of the large pressure reducing valve and 24 volt battery system. East Valley Water District | Program Summary 187 FY 2024-25 Accomplishments GOAL ONE Maximized Plant 134 Water Production • Determined the frequency of changeouts required for Granular Activated Carbon (GAC) media. • Determined the most efficient and cost-effective method for disposing of increasing levels of sludge. GOAL TWO Develop a Long- Term Replacement Plan Based on Plant Performance • Tracked individual membrane integrity test (MIT) results and repairs to prioritize replacement schedule. GOAL THREE Evaluate and Rehabilitate Existing Clean-in-Place Equipment at Plant 134 • Inspected existing equipment and established prioritized replacement schedule. • Purchased and installed pump and equipment for the clean-in-place equipment project. • Replaced and installed turbidimeters for trains 1-5. • Replaced aluminum chloralhydrate coagulant (ACH) dosing systems. Levels of Service The Water Treatment Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Maximize Staff Capabilities through Ongoing Professional Development (I-B) • Develop Projects and Programs to Ensure Safe, Reliable, and Resilient Service (IV-A) • Dedicate Effort towards System Maintenance and Modernization (IV-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 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Projection I-B Number of Production staff with T-4 certification or higher 4 3 4 4 IV-A Meet all regulatory requirements 100%100%100%100% IV-A Maximize utilization of treatment plant capacity according to peak demands (July – September)7.5 MGD 4.4 4.8 5.0 IV-B Percentage of plant equipment and motors on preventative maintenance schedules 100%100%100%100% 188 FY 2025-26 Budget Program Budget Detail FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 323,423 $ 304,000 $ 280,330 $ 312,000 $ 8,000 3% 5103 Overtime 28,374 39,000 25,299 39,000 - 0% 5200 Benefits 159,841 179,000 195,813 192,000 13,000 7% OPERATING EXPENSES 6201 Materials & Supplies 76,244 100,000 134,159 60,000 (40,000)-40% 6204 Chemicals 218,594 180,000 285,523 225,000 45,000 25% 6301 Contract Services 511,729 562,000 386,392 662,000 100,000 18% 6307 Uniforms 627 2,000 267 2,000 - 0% 6402 Telephone 3,089 3,000 6,673 3,000 - 0% 6403 Electricity 175,504 240,000 164,695 240,000 - 0% WATER TREATMENT TOTAL $ 1,497,425 $ 1,609,000 $ 1,479,151 $ 1,735,000 $ 126,000 8% Significant Changes in Program Budget • Materials & Supplies increased $80,000 at mid-year, due to additional materials needed for Plant 134 repairs. Staff do not anticipate needing more than $60,000 this fiscal year. • Increased Chemicals and Contract Services budgets due to inflation. Program Budget Allocation 4%$1,735,000 (Water Treatment) East Valley Water District | Program Summary 189 [ P A G E L E F T B L A N K I N T E N T I O N A L LY ] 190 FY 2025-26 Budget WA T E R Q U A L I T Y Water Quality PROGRAM SUMMARIES SECTION East Valley Water District | Program Summaries 191 Water Quality has dedicated, state certified team members to test water quality and ensure all members of the community receive safe drinking water. • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Water & Wastewater Compliance Supervisor 1 Water Quality Technician 1 Water Quality Worker 1 Total Full-Time 3 GENERAL MANAGER/CEO OPERATIONS MANAGER WATER & WASTEWATER COMPLIANCE SUPERVISOR WATER QUALITY TECHNICIAN WATER QUALITY WORKER DIRECTOR OF ENGINEERING & OPERATIONS PROGRAM SUMMARIES CONTENTS PROGRAM PERSONNEL PROGRAM STRUCTURE 192 FY 2025-26 Budget Water Quality is responsible for ensuring District compliance with State and Federal Drinking Water Regulations. This program manages Backflow Prevention, Water Sampling, Fire Hydrant Flushing Programs, and the Fats, Oils, and Grease (FOG) program for SNRC pre-treatment. Water Qualityprogram summaries Goals Objectives 1 Evaluate Water Quality Regulations and Improve Process Efficiencies to Enhance Water Quality Compliance 1. Implement Lead & Copper rule revisions into daily operations. 2. Complete initial quarterly sampling for PFOS/PFOA contaminants. 2 Implement California Cross- Connection Control Policy Handbook Requirements 1. Develop and implement system-wide assessment in accordance with handbook requirements. 2. Work with staff to obtain certification as a cross-connection control specialist. 3 Evaluate FOG Program Procedures for Effectiveness 1. Continue to identify and investigate non-permitted locations for compliance. 2. Evaluate additional needs for system efficiencies with in-house resources. 3. Work with consultant to complete sampling requirements for the Pre-Treatment Program Local Limits Study. 4. Continue to evaluate program costs to ensure fees are adequate. East Valley Water District | Program Summary 193 FY 2024-25 Accomplishments GOAL ONE Evaluated Water Quality Regulations and Improved Process Efficiencies to Enhance Water Quality Compliance • Completed sampling for U.S. EPA’s revised Lead and Copper Rule, effective summer of 2024. • Completed Unregulated Contaminant Monitoring Rule (UCMR5) sampling in accordance with U.S. EPA’s sample schedule. • Completed Lead Service Line Inventory. GOAL TWO Implemented Backflow Program Enhancement Modifications • Replaced additional outdated and unapproved customer backflow devices. • Worked with staff to obtain required backflow certification. GOAL THREE Evaluated FOG Program Procedures for Effectiveness • Identified and investigated non-permitted locations for compliance. • Worked with contractors to evaluate additional needs for system efficiencies. • Evaluated program to ensure fees are adequate to cover program cost. Levels of Service The Water Quality Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Provide Exceptional Customer Service (III-C) • Develop Projects and Programs to Ensure Safe, Reliable, and Resilient Service (IV-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 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Projection III-C Response time to water quality complaints by customers (average)2.0 Hrs 1.5 1.5 2.0 IV-A Conduct all water quality sampling required by SWRCB and U.S. EPA 100%100%100%100% IV-A Complete annual Hazmat site-handling permits 100%100%100%100% IV-A % of permitted FOG sites inspected*100%N/A 100%100% * New KPI starting in FY 2025-26. 194 FY 2025-26 Budget Program Budget Detail FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 109,422 $ 133,000 $ 84,004 $ 116,000 $ (17,000)-13% 5103 Overtime 2,202 6,000 655 6,000 - 0% 5200 Benefits 18,656 24,000 22,307 46,000 22,000 92% WELLS OPERATING EXPENSES 6201 Materials & Supplies 12,784 14,000 8,676 15,000 1,000 7% 6301 Contract Services 45,249 110,000 78,841 80,000 (30,000)-27% 6307 Uniforms 956 4,000 1,801 4,000 - 0% 6504 Meetings 185 1,000 412 1,000 - 0% RESERVOIR PERSONNEL EXPENSES 5101 Regular Labor 111,454 146,000 139,689 151,000 5,000 3% 5103 Overtime 286 6,000 2,465 6,000 - 0% 5200 Benefits 54,164 78,000 85,218 85,000 7,000 9% RESERVOIR OPERATING EXPENSES 6201 Materials & Supplies - 2,000 136 3,000 1,000 50% 6202 Tools 16,655 9,000 8,521 11,000 2,000 22% 6301 Contract Services 54,994 64,000 54,260 75,000 11,000 17% 6406 Postage 150 2,000 257 2,000 - 0% 6502 Professional Development 816 3,000 2,156 3,000 - 0% 6503 Education Assistance - - - 3,000 3,000 100% WATER QUALITY TOTAL $ 427,973 $ 602,000 $ 489,398 $ 607,000 $ 5,000 1% Significant Changes in Program Budget • Additional sampling is not required for UCMR5 and Tri-Annual Lead and Copper this fiscal year; as a result, Contract Services budget decreased for Wells. Program Budget Allocation 1%$607,000 (Water Quality) East Valley Water District | Program Summary 195 [ P A G E L E F T B L A N K I N T E N T I O N A L LY ] 196 FY 2025-26 Budget WA T E R MA I N T E N A N C E Water Maintenance PROGRAM SUMMARIES SECTION East Valley Water District | Program Summaries 197 Water Maintenance maintains the District's water transmission and distribution system. • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Field Service Supervisor 1 Sr. Field Service Worker 1 Field Service Worker III 6 Field Service Worker II 3 Field Service Worker I 6 Storekeeper/Buyer (Warehouse)1 Total Full-Time 18 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) (6) (3) STOREKEEPER/ BUYER WAREHOUSE PROGRAM SUMMARIES CONTENTS PROGRAM PERSONNEL PROGRAM STRUCTURE 198 FY 2025-26 Budget The Water Maintenance Program is responsible for repair and replacement of the District’s 300 miles of water pipeline. Water Maintenance coordinates with Engineering and Water Production to install water service lines, fire hydrants, meters, valves, and all related equipment. Crew members remain on standby during non-business hours to respond to customer after hours requests and emergencies. Water Maintenanceprogram summaries Goals Objectives 1 Prioritize Preventative Maintenance to Ensure Water System Supply Readiness 1. Exercise approximately 1,200 isolation valves during the fiscal year to ensure readiness. 2. Replace or repair all isolation valves identified as inoperable during valve exercise program. 3. Coordinate with Production to perform valve replacements to isolate crucial PRV stations in Pacific/Osbun. 4. Inspect, maintain, and replace (as needed) 3,000 hydrants on a three- year cycle. 2 Continue Replacement Program for Water Mains 1. Identify undersized and high priority water mains located within easements to determine whether to replace or abandon. 2. Replace 3,000 feet of undersized water mains located in cul-de- sacs within the District’s service area. 3. Solicit proposals and finalize a new master agreement for pipeline repair services. 3 Work with Production to Identify any Inoperable Valves at Plants/PRV Stations 1. Exercise valves inside plants. 2. Identify inoperable valves. 3. Replace inoperable valves as needed. East Valley Water District | Program Summary 199 FY 2024-25 Accomplishments GOAL ONE Prioritized Preventative Maintenance Schedules to Ensure Equipment Readiness for Emergency Response • Replaced 26 inoperable gate valves with in-house crews and contracted for replacement of five more complex/larger valves on the west side of the District. • Coordinated with Production to perform valve replacements to isolate crucial PRV stations in Plant 37 and Orange/Mercedes. GOAL TWO Fully Utilized Tyler’s EnerGov Asset Management Software • Implemented Tyler’s Asset Management module (EnerGov) for work order management. GOAL THREE Continued Replacement Program for Mains and Inground Fire Service Devices • Replaced 3,000 to 4,000 feet of water main in Elmwood Drive north of Lynwood. • Replaced 400 feet of water main in Oakridge Court off Piedmont Drive. • Replaced outdated fire services on Highland/Del Rosa and Highland/Elmwood. 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-C) • Advance Emergency Preparedness Efforts (III-A) • Develop Projects and Programs to Ensure Safe, Reliable, and Resilient Service (IV-A) • Dedicate Effort towards System Maintenance and Modernization (IV-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 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Projection I-C Number of Water Maintenance staff with D-3 certification or higher 5 4 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 1,284 1,285 1,284 IV-B Respond to, and assess, customer leak concerns within reasonable time frame (two hours) 98%100%100%100% IV-B Number of main leaks repaired*<70 120 85 85 IV-B Estimate of water losses from main leaks (MG)*<10 MG 0.28 MG 0.15 MG 0.15 MG * Data reported for calendar year. 200 FY 2025-26 Budget Program Budget Detail ADMINISTRATION FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 206,990 $ 218,000 $ 211,693 $ 236,000 $ 18,000 8% 5103 Overtime 2,582 2,000 896 2,000 - 0% 5104 Standby 45,163 45,000 53,100 55,000 10,000 22% 5200 Benefits 154,602 132,000 139,007 131,000 (1,000)-1% OPERATING EXPENSES 6203 Office Supplies 876 3,000 193 3,000 - 0% 6307 Uniforms 2,342 3,000 2,291 2,000 (1,000)-33% 6402 Telephone 33,312 40,000 30,800 41,000 1,000 3% 6501 Memberships & Dues 1,022 2,000 867 2,000 - 0% 6502 Professional Development 19,416 18,000 11,849 18,000 - 0% 6504 Meetings 5,279 3,000 4,055 3,000 - 0% 6706 Inventory Over/Short 349,342 - (5,639) - - 0% ADMIN MAINTENANCE TOTAL $ 820,926 $ 466,000 $ 449,112 $ 493,000 $ 27,000 6% PIPELINE MAINTENANCE FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 1,221,309 $ 1,300,000 $ 1,200,249 $ 1,456,000 $ 156,000 12% 5103 Overtime 393,507 435,000 427,361 430,000 (5,000)-1% 5200 Benefits 583,485 630,000 668,906 623,000 (7,000)-1% 5999 CIP Labor Offset (59,231) (20,000) (58,277) (164,000) (144,000)720% OPERATING EXPENSES 6201 Materials & Supplies 714,356 880,000 685,232 880,000 - 0% 6202 Tools 35,114 67,000 33,563 67,000 - 0% 6301 Contract Services 61,394 70,000 27,664 67,000 (3,000)-4% 6307 Uniforms 46,249 40,000 30,549 40,000 - 0% 6310 Street Services 386,081 525,000 455,748 525,000 - 0% 6405 Permits - - - - - 0% PIPELINE MAINTENANCE TOTAL $ 3,382,264 $ 3,927,000 $ 3,470,995 $ 3,924,000 $ (3,000)0% WATER MAINTENANCE TOTAL $ 4,203,190 $ 4,393,000 $ 3,920,107 $ 4,417,000 $ 24,000 1% East Valley Water District | Program Summary 201 Significant Changes in Program Budget • None. Program Budget Allocation 10%$4,417,000 (Water Maintenance) 202 FY 2025-26 Budget WA S T E W A T E R C O L L E C T I O N Wastewater Collection PROGRAM SUMMARIES SECTION East Valley Water District | Program Summaries 203 Wastewater Collection prevents wastewater spillage and leaks by monitoring and maintaining wastewater pipelines. • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Sr. Field Service Worker 1 Field Service Worker III 2 Field Service Worker II 1 Total Full-Time 4 GENERAL MANAGER/CEO OPERATIONS MANAGER FIELD SERVICE SUPERVISOR FIELD SERVICE WORKER III DIRECTOR OF ENGINEERING & OPERATIONS (2) FIELD SERVICE WORKER II SR. FIELD SERVICE WORKER PROGRAM SUMMARIES CONTENTS PROGRAM PERSONNEL PROGRAM STRUCTURE 204 FY 2025-26 Budget The Wastewater Collection Program performs routine inspections, cleaning, repairs, and replacement of the District’s 230 miles of collection pipelines. The District’s collection system has been engineered to use best practice gravity flow conveyance prior to treatment. California public health code mandates the District is responsible for inspection of wastewater collection systems. The pipeline inspection program uses a sewer inspection camera/transporter and closed-circuit television (CCTV) technology. The videoing software allows the operator to document pipeline condition attributes and location data for maintenance or replacement consideration. Along with videoing the collection pipeline, the Wastewater Collection Program conducts a weekly sewer cleaning program using specialized equipment. The jetting program ensures the entire system is cleaned within 24 months, and high maintenance areas are cleaned more regularly. Wastewater Collectionprogram 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 Del Rosa Avenue. 2. Clean 230 miles of sewer main. 2 Provide Support for the New Fats, Oils, and Grease (FOG) Program 1. Identify and inspect unpermitted dischargers within the collection system. 2. Transition FOG inspection from contractor to in-house. 3. Maintain overall system-wide compliance. 3 Keep Sewer Mains Clear of Pests and Obstructions 1. Video sewer mains to identify root intrusions. 2. Schedule foam blasting of identified areas to control roots. 3. Schedule to spray 2,500 manholes for insect control. SEWER East Valley Water District | Program Summary 205 FY 2024-25 Accomplishments GOAL ONE Continued Wastewater Collection System Maintenance and Management • Video inspected and assessed 75 miles of District sewer mains between the northern and southern District boundaries, and west of Del Rosa Avenue. • Cleaned 230 miles of sewer main. • Investigated and implemented methods to reduce rainwater inflow into the wastewater collection system during storm events. GOAL TWO Provided Support for the New Fats, Oils, and Grease (FOG) Program • Identified high maintenance areas within the collection system for the new contracted FOG inspector. • Assisted the FOG inspector in prioritizing correction efforts. • Identified agency separations with the City of San Bernardino for customer permitting. GOAL THREE Kept Sewer Mains Clear of Pests and Obstructions • Identified root intrusions in sewer mains by video throughout the District’s service area. • Completed foam blasting of identified areas to control roots. • Sprayed 2,500 manholes for insect control. Levels of Service The Wastewater Collection Program has six KPI metrics that are associated with the District’s Goals and Objectives of: • Maximize Internal Capabilities Through Ongoing Professional Development (I-C) • Develop Projects and Programs to Ensure Safe, Reliable, and Resilient Service (IV-A) • Dedicate Effort towards System Maintenance and Modernization (IV-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 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Projection I-C Number of staff holding CWEA certifications 4 5 6 6 IV-A Miles of wastewater mains inspected by video 55 63 75 75 IV-A Category 1 Sanitary System Overflows reportable to SWRCB 0 1 0 0 IV-B Miles of wastewater mains jetted / cleaned 230 237 230 230 IV-B Category 4 or 5 spot repairs identified 0 0 0 0 IV-B Category 4 or 5 spot repairs completed 0 0 0 0 206 FY 2025-26 Budget Program Budget Detail FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 396,885 $ 396,000 $ 353,886 $ 411,000 $ 15,000 4% 5103 Overtime 12,177 9,000 10,640 11,000 2,000 22% 5200 Benefits 137,478 177,000 156,244 187,000 10,000 6% 5999 CIP Labor Offset (5,485) - (554) - - 0% OPERATING EXPENSES 6201 Materials & Supplies 34,721 36,000 33,028 31,000 (5,000)-14% 6202 Tools 6,661 6,250 19,879 7,000 750 12% 6301 Contract Services 208,799 333,750 231,372 339,000 5,250 2% 6307 Uniforms 943 4,000 - 4,000 - 0% 6502 Professional Development - - 107 - - 0% WASTEWATER COLLECTION TOTAL $ 792,179 $ 962,000 $ 804,602 $ 990,000 $ 28,000 3% Significant Changes in Program Budget • None. Program Budget Allocation 2%$990,000 (Wastewater Collection) East Valley Water District | Program Summary 207 [ P A G E L E F T B L A N K I N T E N T I O N A L LY ] 208 FY 2025-26 Budget WA T E R R E C L A M A T I O N Water Reclamation PROGRAM SUMMARIES SECTION East Valley Water District | Program Summaries 209 Water Reclamation oversees and manages all operations related to the SNRC to ensure compliance with strict State water quality standards. • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Water Reclamation Manager 1 Water Reclamation Supervisor 1 Sr. Wastewater Treatment Plant Operator 2 Wastewater Treatment Plant Operator III 3 Wastewater Treatment Plant Operator II 1 Administrative Assistant 1 Total Full-Time 9 Part-Time Waste Hauler Coordinator 2 Total Part-Time 2 PROGRAM SUMMARIES CONTENTS PROGRAM PERSONNEL PROGRAM STRUCTURE 210 FY 2025-26 Budget GENERAL MANAGER/CEO WATER RECLAMATION MANAGER SR. WASTEWATER TREATMENT PLANT OPERATOR WASTEWATER TREATMENT PLANT OPERATOR III WASTEWATER TREATMENT PLANT OPERATOR II DIRECTOR OF ENGINEERING & OPERATIONS (3) (2) ADMINISTRATIVE ASSISTANT WATER RECLAMATION SUPERVISOR WASTE HAULER COORDINATOR 2PT The Water Reclamation Program is responsible for treating and disinfecting up to eight million gallons of wastewater per day (MGD) at the District’s new water recycling plant known as the SNRC. SNRC operations include anaerobic digestion for energy generation to offset the cost of power needed to operate the plant. Water Reclamationprogram summaries Goals Objectives 1 Evaluate SNRC Resourcing 1. Continue to improve the intern onboarding process and provide learning opportunities at the SNRC. 2. Develop an Operator in Training Program (OIT). 3. Identify specialized system and equipment maintenance needs above current staff capacity. 2 Meet and Exceed Compliance Requirements for the SNRC 1. Continue to manage and enforce a pre-treatment program. 2. Continue to submit yearly Air Quality Management District (AQMD) emissions reports. 3. Continue to submit Waste Discharge Requirements (WDR) and Master Recycling permits and reports; monthly, quarterly, and annually. 3 Operate the SNRC to Ensure Long- Term Sustainability and Resource Optimization 1. Provide operator training on the Computerized Maintenance Management System (CMMS). 2. Participate financially in coalition to implement recommendations of Salt Mitigation Feasibility Study. 3. Continue to review backup power plan at the SNRC to ensure reliable operations of the plant. 4. Continue to assess reliability of backup generator powering the entire site and feasibility of an SCE Preferred Service (PE). 5. Optimize digester operations to reduce on-site energy needs. 6. Expand Membrane Bioreactor (MBR) capacity at the SNRC from four process trains to five. East Valley Water District | Program Summary 211 FY 2024-25 Accomplishments GOAL ONE Evaluated SNRC Resourcing • Utilized one full-time and one part-time intern and provided learning opportunities at the SNRC. • Developed and implemented the SNRC Internship Recruitment Plan. • Contracted preventative maintenance and emergency response not currently performed by staff or other contractors. GOAL TWO Met and Exceeded Compliance Requirements for the SNRC • Implemented compliance software and contracted consultant for launch of pre-treatment program. • Submitted required annual report to comply with Air Quality Management District (AQMD) emissions requirements. • Submitted required monthly, quarterly, and annual reports needed for waste discharge and master recycling permit requirements. GOAL THREE Operated the SNRC to Ensure Long-Term Sustainability and Resource Optimization • Implemented the computerized maintenance management system (CMMS) in support of the asset management program. • Worked with IT to incorporate SNRC equipment into Tyler. • Participated with regional coalitions to complete the Salt Mitigation Feasibility Study. • Determined backup generator is capable of powering entire plant. OTHER ACCOMPLISHMENTS • Saved an average of $40,000 per month by reducing biosolids hauling minimum tonnage fees. • Approximately $75,000 was saved by making in-house repairs. • Improved Supervisory Controls and Data Acquisition (SCADA) management system. Levels of Service The Water Reclamation Program has five KPI metrics that are associated with the District’s Goals and Objectives of: • Develop Projects and Programs to Ensure Safe, Reliable, and Resilient Service (IV-A) • Dedicate Effort towards System Maintenance and Modernization (IV-B) The program’s performance related to these metrics are included in the following table. 212 FY 2025-26 Budget Key Performance Indicators Changes Agency Goal Key Performance Indicator Target FY 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Projection IV-A Comply with Waste Discharge Requirements (WDR) and Master Recycling Requirements (MRR) for removal of BOD and TSS at the SNRC 100%100%100%100% IV-A Deliver recycled water to San Bernardino Valley for groundwater recharge 6.0MGD 4.9 6.0 6.0 IV-B Tipping Fees collected from outside haulers $2.4M $0 $497K $2.4M IV-B Comply with AQMD fence line odor monitoring requirements *100%100%100%100% IV-B Comply with City of Highland noise ordinance*100%100%100%100% * New KPI starting FY 2025-26. Program Budget Detail FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $855,997 $1,000,000 $958,328 $1,301,000 $301,000 30% 5102 Temporary Labor 1,367 143,000 79,207 - (143,000)-100% 5103 Overtime 216,926 310,000 364,277 280,000 (30,000)-10% 5104 Standby 2,219 65,000 79,819 65,000 - 0% 5200 Benefits 364,932 448,000 485,321 608,000 160,000 36% OPERATING EXPENSES 6201 Materials & Supplies 56,551 181,000 178,841 284,000 103,000 57% 6202 Tools 7,973 29,000 17,632 37,000 8,000 28% 6203 Office Supplies 10,931 5,000 3,057 5,000 - 0% 6204 Chemicals 180,377 120,000 680,184 1,682,000 1,562,000 1302% 6301 Contract Services 1,165,932 5,938,000 3,860,731 4,339,000 (1,599,000)-27% 6305 Treatment Services 6,177,814 - - - - 0% 6307 Uniforms 2,387 5,000 6,849 5,000 - 0% 6401 Utilities 25,054 119,000 104,361 70,000 (49,000)-41% 6402 Telephone 2,577 8,000 10,785 8,000 - 0% 6403 Electricity 1,301,248 2,200,000 2,771,799 1,712,000 (488,000)-22% 6404 Fuel 5,275 11,000 6,297 11,000 - 0% 6405 Permits 10,980 143,000 189,565 93,000 (50,000)-35% 6406 Postage 39 - 403 - - 0% East Valley Water District | Program Summary 213 Significant Changes in Program Budget • Added two new Waste Hauler Coordinators (part-time) positions. • The District will purchase chemicals directly from the manufacturer instead of the Consultant. As a result, the Contract Services budget will decrease and the Chemicals budget will increase. • Increased Materials & Supplies and Tools budgets due to inflation. Program Budget Allocation 24%$10,512,000 (Water Reclamation) FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed 6501 Membership & Dues 3,952 - 956 - - 0% 6502 Professional Development 2,909 10,000 13,228 10,000 - 0% 6504 Meetings 1,879 2,000 1,873 2,000 - 0% 6505 Employee Recognition - - 548 - - 0% WATER RECLAMATION TOTAL $10,397,319 $10,737,000 $9,814,061 $10,512,000 $(225,000)-2% 214 FY 2025-26 Budget FA C I L I T I E S M A I N T E N A N C E Facilities Maintenance PROGRAM SUMMARIES SECTION East Valley Water District | Program Summaries 215 Facilities Maintenance ensures District facilities meet standards for aesthetics, functionality, and operation. • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Facilities and Fleet Supervisor 1 Facilities Maintenance Worker II 1 Facilities Maintenance Worker I 1 Total Full-Time 3 GENERAL MANAGER/CEO OPERATIONS MANAGER FACILITIES & FLEET SUPERVISOR FACILITIES MAINTENANCE WORKER II FACILITIES MAINTENANCE WORKER I DIRECTOR OF ENGINEERING & OPERATIONS PROGRAM SUMMARIES CONTENTS PROGRAM PERSONNEL PROGRAM STRUCTURE 216 FY 2025-26 Budget Facilities Maintenance is responsible for the maintenance of all District facilities. The District has several locations throughout the 30.1 square mile service area for operating the utility systems. The Program’s oversight includes administration buildings, water facilities, a water reclamation facility (SNRC), District-owned vacant properties, and easements. The purpose of this Program is to mitigate expenses by maintaining a complex facilities management system to achieve Program goals. Facilities Maintenanceprogram summaries Goals Objectives 1 Evaluate and Plan Improvements/ Demolition of West- End Inventory Storage Facilities (Del Rosa and Plant 39) 1. Remove former office trailers located at the Del Rosa site to prepare for demolition and cleanup. 2. Coordinate with Storekeeper/Buyer and field staff on removal of inventory at Del Rosa to new warehouse at Plant 39. 3. Evaluate the new warehouse for future addition to help with storage needs. 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. 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. Enhance alarm system for building on Administration side of the SNRC. 2. Coordinate with IT and SCN Security on the best way to use the cameras at District Headquarters after the new fence is in place. 3. Work with Production to evaluate which sites need new perimeter fencing. East Valley Water District | Program Summary 217 FY 2024-25 Accomplishments GOAL ONE Evaluated and Planned Improvements/ Demolition of West-End Inventory Storage Facilities (Del Rosa and Plant 39) • Contracted for construction of a 3,200 sq. ft. storage building at Plant 39. • Worked with IT to implement security cameras and alarms at Plant 39 Warehouse. GOAL TWO Continued Phased Upgrades and Rehabilitation of District Facilities • Completed the HVAC project by removing swamp coolers and sealing wall openings at Plants 39, 142, and 149. • Worked with SNRC staff on concrete upgrades to help with sanitation and cleaning. • Continuing repairs and upgrades to HVAC systems at SNRC and District Headquarters. GOAL THREE Assessed Security Needs at SNRC, District Headquarters, and Plant 134 • Determined the most cost-effective solution for physical security at all three sites. • Worked with IT and SCN to upgrade and monitor cameras 24/7 at Plant 134. • Installed new perimeter fencing at District Headquarters. Levels of Service The Facilities Maintenance Program has four KPI metrics that are associated with the District’s Goals and Objectives of: • Identify Opportunities to Optimize Natural Resources (I-A) • Dedicate Efforts Toward System Maintenance and Modernization (IV-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 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Projection I-A Identify and conduct energy efficiency measures at Plant facilities 2 2 2 2 IV-B Close all service work orders timely <30 Days <30 Days <30 Days <30 Days IV-B Systematically rehabilitate buildings at Plant sites (paint, roof, general repairs)2 2 2 2 IV-B Complete security fencing upgrades at Plant sites 1 2 1 1 218 FY 2025-26 Budget Program Budget Detail FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 226,057 $ 304,000 $ 215,321 $ 310,000 $ 6,000 2% 5103 Overtime 11,693 14,000 15,212 14,000 - 0% 5200 Benefits 113,362 162,000 135,464 172,000 10,000 6% ADMINISTRATION OPERATING EXPENSES 6201 Materials & Supplies 82,528 40,000 104,197 75,000 35,000 88% 6202 Tools 1,846 4,000 5,445 4,000 - 0% 6301 Contract Services 894,656 772,000 1,122,648 808,000 36,000 5% 6306 Rents & Leases 22,537 20,000 9,481 15,000 (5,000)-25% 6307 Uniforms 8,856 11,000 11,806 11,000 - 0% 6311 Landscape Services 136,260 131,000 73,492 131,000 - 0% 6312 Janitorial Services 145,056 144,000 184,101 144,000 - 0% 6401 Utilities 73,740 37,000 42,236 37,000 - 0% 6402 Telephone 26,550 25,000 34,159 25,000 - 0% 6403 Electricity 229,589 290,000 263,500 290,000 - 0% 6403 Professional Development - 3,000 861 3,000 - 0% WELLS OPERATING EXPENSES 6201 Materials & Supplies 2,629 3,000 1,465 3,000 - 0% 6301 Contract Services 24,683 34,000 18,809 34,000 - 0% 6311 Landscape Services 73,000 40,000 50,091 40,000 - 0% 6402 Telephone 1,029 1,000 921 1,000 - 0% BOOSTERS OPERATING EXPENSES 6201 Materials & Supplies 263 3,000 - 3,000 - 0% 6301 Contract Services 3,325 5,000 - 5,000 - 0% 6311 Landscape Services 28,728 35,000 19,180 35,000 - 0% East Valley Water District | Program Summary 219 Significant Changes in Program Budget • Increased Materials & Supplies budget for Facilities Maintenance-Administration due to inflation. Program Budget Allocation 5%$2,264,000 (Facilities Maintenance) FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed TREATMENT OPERATING EXPENSES 6201 Materials & Supplies 6,025 10,000 1,025 10,000 - 0% 6301 Contract Services 29,959 25,000 18,221 25,000 - 0% 6311 Landscape Services 35,376 27,000 13,180 27,000 - 0% 6312 Janitorial Services 76 2,000 - 2,000 - 0% 6401 Utilities 2,804 10,000 6,106 10,000 - 0% 6402 Telephone 31,022 30,000 30,824 30,000 - 0% FACILITIES MAINTENANCE TOTAL $ 2,211,649 $ 2,182,000 $ 2,377,745 $ 2,264,000 $ 82,000 4% 220 FY 2025-26 Budget F L E E T M A I N T E N A N C E Fleet Maintenance PROGRAM SUMMARIES SECTION East Valley Water District | Program Summaries 221 Fleet Maintenance ensures the proper function of vehicles and equipment used in the maintenance of the water and wastewater system. • Governing Board • General Administration • Human Resources & Risk Management • Public Affairs • Conservation • Finance & Accounting • Information Technology • Customer Service • Meter Services • Engineering • Water Production • Water Treatment • Water Quality • Water Maintenance • Wastewater Collection • Water Reclamation • Facilities Maintenance • Fleet Maintenance Fleet Maintenance Coordinator 1 Total Full-Time 1 GENERAL MANAGER/CEO OPERATIONS MANAGER FACILITIES & FLEET SUPERVISOR FLEET MAINTENANCE COORDINATOR DIRECTOR OF ENGINEERING & OPERATIONS PROGRAM SUMMARIES CONTENTS PROGRAM PERSONNEL PROGRAM STRUCTURE 222 FY 2025-26 Budget 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. The District fleet is comprised of light and heavy-duty utility trucks for water and wastewater crew members to maintain District infrastructure. The heavy equipment category of the fleet includes large, specialized equipment for routine maintenance and inspection of the water distribution, wastewater collection, and treatment systems. Fleet Maintenanceprogram summaries Goals Objectives 1 Identify Vehicles and Equipment Eligible for Surplus and Disposal 1. Prepare justification and presentation to the Board for disposal. 2. Arrange for disposal of surplus vehicles and equipment. 2 Continue to Implement the Air Quality Management Program 1. Manage all air quality regulations for AQMD and California Air Resources Board (CARB). 2. Transmit emissions data to the Bureau of Automotive Repair (BAR) using Network Fleet devices. 3. Submit offroad diesel and off roading reporting system (DORRS). 3 Gain Understanding of New Legislation Affecting the Fleet Maintenance Program 1. Research and understand fleet regulations. 2. Contract vendor to ensure the District is in compliance with zero emission regulations. East Valley Water District | Program Summary 223 FY 2024-25 Accomplishments GOAL ONE Assessed Future Operations of Fleet Management • Enhanced service orders in the Fleet Maintenance module within Tyler’s Energov Asset Management (EAM) software. • Installed four Electric Vehicle (EV) charging stations for pool vehicles. GOAL TWO Continued to Implement the Air Quality Management Program • Managed all air quality regulations for AQMD and CARB. • Transmitted required fleet emissions data to the BAR using Network Fleet devices. GOAL THREE Gained Understanding of New Legislation Affecting the Fleet Maintenance Program • Researched and understood fleet regulations. • Contracted vendor to ensure District compliance with zero emission regulations. 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, Reliable, and Resilient Service (IV-A) • Dedicate Efforts toward System Maintenance and Modernization (IV-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 2023-24 Actual FY 2024-25 Estimated FY 2025-26 Projection IV-A Ensure vehicles and equipment are evaluated and replaced on schedule 80% of Net Asset Value 100%100%100% IV-A Number of vehicle/equipment units replaced 4 4 5 4 IV-B Percent of vehicles pass annual D.O.T. inspection 100%N/A N/A 100% 224 FY 2025-26 Budget Program Budget Detail FY 2023-24 Actuals FY 2024-25 Budget FY 2024-25 Projected FY 2025-26 Budget Amount Changed % Changed PERSONNEL EXPENSES 5101 Regular Labor $ 95,574 $ 105,000 $ 107,962 $ 114,000 $ 9,000 9% 5103 Overtime 6,679 3,000 10,678 3,000 - 0% 5200 Benefits 33,661 32,000 37,043 43,000 11,000 34% OPERATING EXPENSES 6201 Materials & Supplies 192,921 160,000 126,551 160,000 - 0% 6202 Tools 17,649 15,000 58,225 15,000 - 0% 6203 Office Supplies 379 5,000 3,575 5,000 - 0% 6301 Contract Services 243,547 300,000 375,677 305,000 5,000 2% 6307 Uniforms 1,432 1,000 1,067 1,000 - 0% 6402 Telephone 507 1,000 761 1,000 - 0% 6404 Fuel 235,449 280,000 223,281 280,000 - 0% 6501 Memberships & Dues - 3,000 - 3,000 - 0% 6502 Professional Development - 1,000 388 1,000 - 0% FLEET MAINTENANCE TOTAL $ 827,798 $ 906,000 $ 945,208 $ 931,000 $ 25,000 3% Significant Changes in Program Budget • None. Program Budget Allocation 2%$931,000 (Fleet Maintenance) East Valley Water District | Program Summary 225 [ P A G E L E F T B L A N K I N T E N T I O N A L LY ] 226 FY 2025-26 Budget The District's long-term planning efforts includes consideration of the age, condition, and efficiency of infrastructure used to deliver services to its customers. capital budgetFY 2025-26 C A P I T A L B U D G E T East Valley Water District | Capital Budget 227 • Capital Budget Overview • Capital Outlay • Capital Improvement Projects • Infrastructure Accomplishments Capital Budget Contents 228 FY 2025-26 Budget The District’s FY 2025-26 Capital Budget contains $21,824,000 in total capital expenditures. Of this amount, $1,670,000 are Capital Outlay, which typically include requests to replace heavy equipment, computer and office equipment, and to contract for infrastructure planning studies. The remaining proposed capital expenditures of $20,154,000 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. Projects with external funding or regulatory requirements, or that are ‘shovel ready’. A summary of the proposed FY 2025-26 Capital Budget is shown below. 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. Capital Budget Overview Capital Budget Summary Capital Outlay (Routine) Capital Improvement Program Computer Hardware/Software $ 135,000 Meter Replacement Program $ 200,000 Facility Improvements 300,000 Storage Tank / Reservoir Upgrades & Rehabilitations 1,500,000 Water Quality / Environmental Studies 540,000 Plant 134 Membrane Replacement & Pretreatment Feasibility Study 450,000 Service Trucks / Large Dump Truck 450,000 Pipeline Upgrades 7,439,000 Equipment Acquisition 245,000 Plant 129 & 152 Well Design & Construction 3,950,000 General Facilities Rehabilitations / Relocations 225,000 Plant 39 Warehouse / Storage 100,000 Additional MBR at SNRC 6,140,000 Weaver Basin Shallow Well 150,000 TOTAL CAPITAL OUTLAY $ 1,670,000 TOTAL CIP EXPENDITURES $ 20,154,000 Capital Outlay The District defines Capital Outlay expenditures as an individually significant acquisition of capital assets (not involving construction) that have expected useful lives of more than two years and have a heavy equipment cost of $5,000 or more. This threshold is applied at the individual asset level. Each year as part of the budget process, Program Managers and Supervisors compile and submit a list of Capital Outlay requests for consideration. The requests are reviewed and prioritized by management based on the assessment of need and the amount of funding available. Funding for Capital Outlay is paid out of the Capital Replacement Reserve from the fund that will benefit from the capital item. Items that benefit all funds are allocated accordingly. East Valley Water District | Capital Budget Overview 229 FY 2025-26 CAPITAL OUTLAY Program Water Wastewater Water Reclamation Total FUNDED BY OPERATING REVENUE 3200 Hardware Replacements $ 35,000 $ - $ - $ 35,000 3200 SNRC Cameras 70,000 30,000 - 100,000 4000 Upper SAR HCP 400,000 - - 400,000 3200/ 5000 SCADA Radios & Solar Back-up (Power) 122,500 52,500 - 175,000 5100 Chlorine Generation Cells 60,000 - - 60,000 5200 Tank Mixers 140, 99, 101 80,000 - - 80,000 6100 Compaction Tool 50,000 - - 50,000 6200 Gas Monitoring Equipment - 20,000 - 20,000 7000 Fencing at Plant 33 200,000 - - 200,000 7000 EV Charger 80,000 20,000 - 100,000 7100 Service Trucks (3) 200,000 - - 200,000 7100 Large Dump Truck 250,000 - - 250,000 TOTAL CAPITAL OUTLAY $ 1,547,500 $ 122,500 $ - $ 1,670,000 Capital Improvement Program and Prioritization The District’s CIP is a 5-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. 230 FY 2025-26 Budget During FY 2025-26, the District has proposed the use of capacity fees, capital replacement reserves, and grant monies to fund $20,154,000 for current year phases of Capital Improvement Program projects – total project costs for the projects in process are approximately $94.1 million over the next five years. The names of the projects funded, and the reasons for their prioritization this year include: The District completed installation of remote- read meters for all customer accounts in 2021. This perennial project supplies funding for the replacement of damaged or malfunctioning meters, or large meters that have tested +/- 5% variance from actual. Proposed funding is $200,000 for FY 2025-26. Meter Replacement Program The manufacturer of the filter membrane cartridges at Plant 134 recommends they be replaced every seven years. All five membrane trains were replaced between the years 2018 and 2024, so the first train replaced is now seven years old. In FY 2025-26 $350,000 is the proposed budget to replace the membrane cartridges in Train 1. Plant 134 Membrane Replacement This project will replace approximately 34,700 linear feet of vulnerable mains in a 0.4 square mile project area bound by Pacific and Baseline Streets- north and south, and Sterling Avenue and Dwight Way-east and west. The design of the project was grant funded and is complete. The District is awaiting the FEMA decision to fund the $17 million project, of which $12.75 million (75%) would be grant funded and the remaining $4.25 million paid by District matching funds. Staff proposes a budget of $6,400,000 including $4,800,000 from FEMA grants and $1,600,000 earmarked as matching funds for this project for FY 2025-26. Seismic Mitigation Main Replacement (Dwight/Sterling) A second project in the area of Marshall Boulevard and Mountain Avenue has the potential to replace close to the same linear feet of main pipeline as the project above and has been approved for a FEMA design grant. The total cost of design is estimated at $664,000, and the proposed budget for this amount will be paid $498,000 by grant and $166,000 by District matching funds in FY 2025-26. Seismic Mitigation Main Replacement (Marshall/Mountain) This project will evaluate potential improvements to pre-treat raw water sourced from the Santa Ana River, prior to treatment at Plant 134. This study will focus on identifying effective strategies and technologies to remove excess sediment, organic material, and other constituents commonly found in river water. This project is planned for FY 2025-26 with a proposed budget of $100,000. Plant 134 Pretreatment Feasibility Study The tank at Plant 140 is next in priority for rehabilitation according to a conditional assessment performed by an engineering firm. At two million gallons this is one of the District’s largest tanks, therefore the cost will be higher than the prior year. The proposed budget of $1,500,000 in FY 2025-26 will cover the cost of recoating and minor repairs on the Plant 140 tank. Tank/Reservoir Rehabilitation This project continues from the previous fiscal year moving from drilling to equipping in FY 2025-26. The proposed budget is $3,500,000 paid from Water Capacity Fees to fund year two construction activities. Plant 129 Well Design & Construction This project will fund continued site evaluation and planning of a second well since the District had to take three active wells off-line due to their proximity to the Weaver Recycled Water Recharge Basins. In FY 2025-26 the proposed budget of $450,000 will fund preliminary work on this well. Well 152 District Headquarters East Valley Water District | Capital Budget Overview 231 District Field staff have been gaining valuable experience by replacing water mains and scheduling main replacement projects focusing on undersized PVC pipe, usually in cul-de-sacs, and replacing these mains with 6-inch ductile iron pipe and hydrants to improve fire flows. If the seismic mitigation projects described above are not shovel ready at the beginning of the fiscal year, $375,000 of the local match funds from that project will be repurposed to replace 400 linear feet of 3-inch PVC pipe in Overland Court. Water Main Replacement (Overland Court) This project adds a fifth membrane bioreactor (MBR) train at the SNRC to improve operational flexibility, better handle fluctuating flows, and reduce membrane fouling. With existing infrastructure in place, the expansion will enhance long-term performance, reliability, and maintenance efficiency of the treatment facility. The proposed budget for FY 2025-26 is $6,140,000. Additional Membrane Bioreactor 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 or County street or storm drain improvement projects. Planned expenditures for FY 2025-26 are $225,000 to be funded by the Capital Replacement Reserve. These funds are kept available in the event of a notification by another agency. General Facilities Relocations/ Rehabilitations The District is responsible for monitoring SNRC recycled water as it is released into the Basin, but rising water levels in the basin have made previously installed monitoring wells ineffective. This new well, with a proposed budget of $150,000 in FY 2025-26 will be capable of monitoring released water at higher basin levels. Weaver Basin Shallow Well This project continues the development of a new metal warehouse at Plant 39 to store water distribution parts, improving access and operational efficiency during repairs. With exterior work completed last year, the upcoming phase will focus on interior buildout and installing utilities, including water, sewer, electrical, security systems, and internet connectivity. The facility will also include a restroom for Field staff. The proposed budget for FY 2025-26 is $100,000. Plant 39 Warehouse 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, or may have little or no impact. Projects, such as replacement of filtration membranes in the District’s surface water treatment plant, will not have significant impacts on operating costs, but will maintain a highly effective part of the water treatment process which is necessary for public health and safety. Similarly, maintaining structural integrity and recoating of District tanks will help ensure a longer useful life for those assets, saving more on capital costs than on operating costs. The construction of two new wells will give the District additional groundwater pumping capacity to replace capacity lost when three wells had to be taken off-line due to their proximity to the recycled water recharge point, and also to add capacity needed for new customer demand. The extra pumping capacity will allow the District to take advantage of off-peak power rates and lower power costs. Water main replacements are included on the Capital Improvement Program for two reasons, 1) to replace pipes and fittings that, due to age and materials, are particularly susceptible to damage during any seismic activity, and 2) to replace some of the oldest and undersized mains in the distribution system in order to advance the goal of putting the entire system on a 100-year replacement cycle. Both types of projects will replace older pipelines and save on labor and materials used for emergency repairs. Finally, the addition of a fifth MBR train at the District’s water reclamation plant will likely result in slightly higher power costs, but the goal of the project is to help ensure time for proper maintenance of membranes in order to avoid system bottlenecks, and possibly sewer backups and spills. 232 FY 2025-26 Budget The following schedule provides an estimate of the effect of capital expenditures on future operations: CAPITAL EXPENDITURE IMPACT OVERVIEW Annual Impact on Operations Nature of Impact Meter Replacement Program $ - Reduced Staffing Commitments (OT) Storage Tank / Reservoir Upgrades & Rehabilitations - Extends useful life / avoids new purchase Plant 134 Membrane Replacement & Pretreatment Feasibility Study - Extends useful life / water supply reliability Pipeline Upgrades 120,000 Reduced Staffing needs for repairs Plant 129 & 152 Well Design & Construction 100,000 Increase capacity and ability to take advantage of off-peak electric rates General Facilities Rehabilitations / Relocations - Reduce energy cost and staffing commitments Plant 39 Warehouse / Storage 10,000 Reduce fuel costs for traveling to Headquarters from west end Additional MBR at SNRC - Avoid sewer overflows Weaver Basin Shallow Well 10,000 Reduced Staffing Commitments (OT) TOTAL CIP EXPENDITURES $ 240,000 The following Capital Improvement Projects section includes further detail for each of the projects that have been proposed for funding in FY 2025-26. CIP 5-YEAR PROGRAM SCHEDULE (FY 2026-30) Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total WATER Meter Replacement Program $ 200,000 $ 200,000 $ 200,000 $ - $ 2,500,000 $ 3,100,000 Canal Zone Storage Reservoir - 1,600,000 10,000,000 8,000,000 - 19,600,000 Plant 134 Membrane Replacement 350,000 350,000 400,000 400,000 400,000 1,900,000 Tank/Reservoir Rehabilitation 1,500,000 1,070,000 1,145,000 1,225,000 1,311,000 6,251,000 Plant 134 Pretreatment Feasibility Study 100,000 - - - - 100,000 Reservoir Seismic Retrofits - 2,200,000 2,000,000 2,000,000 - 6,200,000 Seismic Mitigation Main Replacement Dwight/Sterling (Grant) 4,800,000 7,950,000 - - - 12,750,000 Seismic Mitigation Main Replacement Dwight/Sterling (Reserves) 1,600,000 2,650,000 - - - 4,250,000 East Valley Water District | Capital Budget Overview 233 Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total Seismic Mitigation Main Replacement - Marshall/ Mountain (Grant) 498,000 - 4,800,000 7,950,000 - 13,248,000 Seismic Mitigation Main Replacement - Marshall/ Mountain (Reserves) 166,000 - 1,600,000 2,650,000 - 4,416,000 Plant 129 Well Design & Construction 3,500,000 - - - - 3,500,000 Well 152 Design & Construction - District Headquarters (Grant) 225,000 - - - - 225,000 Well 152 Design & Construction - District Headquarters (Reserves) 225,000 1,500,000 3,000,000 - 4,725,000 Water Main Replacement - Overland Ct 375,000 - - - - 375,000 Water Main Replacements - - - - 2,000,000 2,000,000 Facility Relocations 100,000 100,000 100,000 100,000 100,000 500,000 Facility Relocation - Baseline Bridge Water Main - 1,000,000 - - - 1,000,000 Facility Rehabilitations 125,000 75,000 75,000 75,000 75,000 425,000 Plant 39 Warehouse Building 100,000 - - - - 100,000 Santa Ana River Watershed Sanitary Survey - 80,000 - - - 80,000 WATER SUBTOTAL $13,864,000 $18,775,000 $23,320,000 $22,400,000 $6,386,000 $84,745,000 RECLAMATION Additional Membrane Bioreactor $ 6,140,000 $ 1,532,000 $ - $ - $ - $ 7,672,000 Weaver Basin - Shallow Well 150,000 - - - 150,000 Replace Diffusers and UV Lamps - - 500,000 500,000 500,000 1,500,000 RECLAMATION SUBTOTAL $6,290,000 $1,532,000 $500,000 $500,000 $500,000 $9,322,000 TOTAL $20,154,000 $20,307,000 $23,820,000 $22,900,000 $6,886,000 $94,067,000 234 FY 2025-26 Budget CIP 5-YEAR FUNDING SCHEDULE (FY 2026-30) Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total Capital Replacement Reserve $ 4,841,000 $ 7,025,000 $ 6,520,000 $ 4,450,000 $ 6,386,000 $ 29,222,000 Water Capacity Fees 3,500,000 - - - - 3,500,000 Water Grants 5,523,000 10,150,000 6,800,000 9,950,000 - 32,423,000 Bond / Debt Proceeds - 1,600,000 10,000,000 8,000,000 - 19,600,000 Interfund Borrowing 2,897,000 969,500 - - - 3,866,500 Reclamation Capacity Fees 1,900,000 - - - - 1,900,000 Reclamation Grants / SGIP 1,493,000 562,500 500,000 500,000 500,000 3,555,500 TOTAL $20,154,000 $20,307,000 $23,820,000 $22,900,000 $6,886,000 $94,067,000 CIP FY 2025-26 PROPOSED FUNDING Capital Replacement Reserve Capacity Fees Grants / Loans / Other Project Total WATER Meter Replacement Program $ 200,000 $ - $ - $ 200,000 Plant 134 Membrane Replacement 350,000 - 350,000 Tank/Reservoir Rehabilitation 1,500,000 - - 1,500,000 Plant 134 Pretreatment Feasibility Study 100,000 - 100,000 Seismic Mitigation Main Replacement - Dwight/Sterling 1,600,000 - 4,800,000 6,400,000 Seismic Mitigation Main Replacement - Marshall/Mountain 166,000 - 498,000 664,000 Plant 129 Well Design & Construction - 3,500,000 - 3,500,000 Well 152 Design & Construction - District Headquarters 225,000 225,000 450,000 Water Main Replacement - Overland Ct 375,000 - - 375,000 Facility Relocations 100,000 - - 100,000 Facility Rehabilitations 125,000 - - 125,000 Plant 39 Warehouse Building 100,000 - - 100,000 WATER SUBTOTAL $ 4,841,000 $ 3,500,000 $ 5,523,000 $ 13,864,000 WATER RECLAMATION Additional Membrane Bioreactor $ - $ 1,900,000 $ 4,240,000 $ 6,140,000 Weaver Basin - Shallow Well - - 150,000 150,000 WATER RECLAMATION SUBTOTAL $ - $ 1,900,000 $ 4,390,000 $ 6,290,000 TOTAL $ 4,841,000 $ 5,400,000 $ 9,913,000 $ 20,154,000 East Valley Water District | Capital Budget Overview 235 [ P A G E L E F T B L A N K I N T E N T I O N A L LY ] 236 FY 2025-26 Budget C I P P R O J E C T S Capital Improvement Projects CAPITAL BUDGET SECTION East Valley Water District | Capital Budget 237 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. • Meter Replacement Program • Plant 134 Membrane Replacement • Tank/Reservoir Rehabilitation • Plant 134 Pretreatment Feasibility Study • Seismic Mitigation Main Replacement (Dwight/Sterling) • Seismic Mitigation Main Replacement (Marshall/Mountain) • Plant 129 Well Design & Construction • Well 152 Design & Construction (District Headquarters) • Water Main Replacement (Overland) • Facility Relocations • Facility Rehabilitations • Plant 39 Warehouse Building • Additional Membrane Bioreactor • Weaver Basin - Shallow Well CAPITAL IMPROVEMENT PROJECTS 238 FY 2025-26 Budget Capital planning involves identifying current and future needs and prioritizing them through an assessment process. in v e s t m e n t s ca p i t a l p r o j e c t MICHAEL MOORE | GENERAL MANAGER/CEO East Valley Water District | Capital Budget Overview 239 The District began implementing Advanced Metering Infrastructure (AMI) in 2016, completing full installation of hardware, software, and meters across the service area in 2021. As early-installed components such as meters, registers, and antennas, approach or exceed 10 years of service, the District is initiating a phased replacement program to address aging and potentially unreliable equipment. Funds allocated to this project will be used to proactively replace these components to maintain meter accuracy, ensure continued system reliability, and extend the overall life of the AMI network. Meter Replacement Program START DATE: July 2025 ESTIMATED COMPLETION: June 2026 PROJECT TYPE: Water Location: Districtwide capital improvement program PROJECT MANAGER: Meter Services / Operations TOTAL PROJECT COST: $200,000 PRIOR YEARS BUDGET: N/A Capital Requests: Annual Budget Request Provide customers with meter information in a digital format. Benefits to the Community Enhance operations by digitizing consumption information. Help identify water leaks and losses sooner. 240 FY 2025-26 Budget Project Cost Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) - - - - - - Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials 200,000 200,000 200,000 - 2,500,000 3,100,000 District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 200,000 $ 200,000 $ 200,000 $ - $ 2,500,000 $ 3,100,000 Project Funding Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Replacement Reserve 200,000 200,000 200,000 - 2,500,000 3,100,000 Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 200,000 $ 200,000 $ 200,000 $ - $2,500,000 $ 3,100,000 METER REPLACEMENT PROGRAM East Valley Water District | Capital Budget Overview 241 Plant 134, the District’s surface water treatment facility, operates five water filtration trains, each equipped with 180 membrane filters. The membrane manufacturer recommends replacement every 5 to 7 years to maintain treatment efficiency and reduce maintenance needs. Beginning in FY 2017-18, the District initiated a phased replacement of the membranes, replacing one train per year over four years. Replacement of the fifth train was deferred due to funding priorities and improved in-house repair capabilities, with those membranes ultimately replaced in FY 2023-24. In FY 2025-26, the District will restart the membrane replacement cycle, beginning with Train 1, which has now been in service for seven years. A budget of $350,000 has been allocated for this work. Plant 134 Membrane Replacement capital improvement program START DATE: July 2025 ESTIMATED COMPLETION: June 2030 PROJECT TYPE: Water Location: District’s Surface Water Treatment Facility PROJECT MANAGER: Water Treatment TOTAL PROJECT COST: $350,000 PRIOR YEARS BUDGET: N/A Capital Requests: Annual Budget Request Allows the District to continue to meet local, State, and Federal system requirements. Benefits to the Community Enhancements to the water treatment facility. Protects health and safety of the community. 242 FY 2025-26 Budget Project Cost Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) - - - - - - Project Mgmt/Inspection - - - - - - Equipment/Furnishings 350,000 350,000 400,000 400,000 400,000 1,900,000 Materials - - - - - - District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 350,000 $ 350,000 $ 400,000 $ 400,000 $ 400,000 $ 1,900,000 Project Funding Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Replacement Reserve 350,000 350,000 400,000 400,000 400,000 1,900,000 Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 350,000 $ 350,000 $ 400,000 $ 400,000 $ 400,000 $ 1,900,000 PLANT 134 MEMBRANE REPLACEMENT East Valley Water District | Capital Budget Overview 243 The District recently completed a comprehensive, multi-year inspection program of all water storage tanks, resulting in an engineering report that identifies and prioritizes critical rehabilitation needs. Many of these projects are operationally complex due to limited or no redundant storage capacity, which restricts construction windows to low-demand periods and requires creative approaches to ensure continuous water distribution. For FY 2025-26, the District will focus on the rehabilitation of the 2-million-gallon tank at Plant 140, located within the Canal Pressure Zone. This work is essential to preserving system reliability and extending the useful life of this key infrastructure asset. START DATE: October 2025 ESTIMATED COMPLETION: May 2026 PROJECT TYPE: Water Location: Plant 140 PROJECT MANAGER: Engineering TOTAL PROJECT COST: $1,500,000 PRIOR YEARS BUDGET: Costs from Previous Tank Rehabilitations Do Not Accumulate Capital Requests: New Project Tank/Reservoir Rehabilitation capital improvement program Help prolong the tank’s operating life. Benefits to the Community Install anti-corrosion system and make repairs to maintain tank reliability. Allows the District to continue to meet the community’s water needs. 244 FY 2025-26 Budget Project Cost Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ 150,000 $ 107,000 $ 115,000 $ 123,000 $ 132,000 $ 627,000 Land and Land Preparation - - - - - - Construction (Contract) 1,350,000 963,000 1,030,000 1,102,000 1,179,000 5,624,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 1,500,000 $ 1,070,000 $ 1,145,000 $ 1,225,000 $ 1,311,000 $ 6,251,000 Project Funding Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Replacement Reserve 1,500,000 1,070,000 1,145,000 1,225,000 1,311,000 6,251,000 Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 1,500,000 $ 1,070,000 $ 1,145,000 $ 1,225,000 $ 1,311,000 $ 6,251,000 TANK/RESERVOIR REHABILITATION East Valley Water District | Capital Budget Overview 245 This project will evaluate potential improvements to pre-treat raw water sourced from the Santa Ana River prior to its introduction into the District’s treatment process at Plant 134. The feasibility study will focus on identifying effective strategies and technologies to remove excess sediment, organic material, and other constituents commonly found in the river water. Findings from the study will guide future capital investments aimed at improving treatment efficiency, reducing operational challenges, and ensuring compliance with regulatory standards. START DATE: July 2025 ESTIMATED COMPLETION: June 2026 PROJECT TYPE: Water Location: District’s Surface Water Treatment Facility PROJECT MANAGER: Engineering TOTAL PROJECT COST: $100,000 PRIOR YEARS BUDGET: N/A Capital Requests: New Project Plant 134 Pretreatment Feasibility Study capital improvement program Identify opportunities to enhance facility systems and operations. Benefits to the Community Allows the District to continue to meet the community’s water needs. Protects health and safety of the community. 246 FY 2025-26 Budget Project Cost Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 100,000 - - - - 100,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 100,000 $ - $ - $ - $ - $ 100,000 Project Funding Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Replacement Reserve 100,000 - - - - 100,000 Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 100,000 $ - $ - $ - $ - $ 100,000 PLANT 134 PRETREATMENT FEASIBILITY STUDY East Valley Water District | Capital Budget Overview 247 This project involves the replacement of a critical segment of water main infrastructure along Dwight Way and Sterling Avenue to improve seismic resilience and reduce the risk of failure during a major earthquake. The project is funded through a cost-share partnership, with 75% provided by the FEMA Hazard Mitigation Grant Program and 25% from the District’s Capital Replacement Reserves. Once complete, this retrofit will enhance system reliability and emergency response capabilities. Construction is expected to span two fiscal years. START DATE: July 2025 ESTIMATED COMPLETION: June 2027 PROJECT TYPE: Water Location: Dwight Way and Sterling Avenue PROJECT MANAGER: Engineering TOTAL PROJECT COST: $17,000,000 PRIOR YEARS BUDGET: N/A Capital Requests: New Project Water Main Replacement Seismic Mitigation (Dwight/Sterling) capital improvement program Increase resiliency of the water distribution system. Benefits to the Community Enhance the water distribution system to continue providing a reliable service. Allows the District to continue to meet the community’s water needs. 248 FY 2025-26 Budget Project Cost Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 6,400,000 10,600,000 - - - 17,000,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 6,400,000 $ 10,600,000 $ - $ - $ - $ 17,000,000 Project Funding Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Replacement Reserve 1,600,000 2,650,000 - - - 4,250,000 Grants/Loans 4,800,000 7,950,000 - - - 12,750,000 Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $6,400,000 $ 10,600,000 $ - $ - $ - $ 17,000,000 WATER MAIN REPLACEMENT - SEISMIC MITIGATION East Valley Water District | Capital Budget Overview 249 START DATE: July 2025 ESTIMATED COMPLETION: June 2026 PROJECT TYPE: Water Location: Marshall Boulevard and Mountain Avenue PROJECT MANAGER: Engineering TOTAL PROJECT COST: $17,664,000 PRIOR YEARS BUDGET: N/A Capital Requests: New Project Water Main Replacement Seismic Mitigation (Marshall/Mountain) capital improvement program This project involves the replacement of a critical water main segment along Marshall Boulevard and Mountain Avenue to improve seismic performance and reduce the risk of infrastructure failure during a major earthquake. Funded through a 75% FEMA Hazard Mitigation Grant and 25% from the District’s Capital Replacement Reserves, the project is designed to enhance the resiliency of the water distribution system in this key service area. For FY 2025-26, the design phase is budgeted at an estimated $664,000, with FEMA covering approximately $498,000 of that amount. Construction is anticipated to follow in subsequent phases based on final design outcomes and funding availability. Increase resiliency of the water distribution system. Benefits to the Community Enhance the water distribution system to continue providing a reliable service. Allows the District to continue to meet the community’s water needs. 250 FY 2025-26 Budget Project Cost Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ 664,000 $ - $ - $ - $ - $ 664,000 Land and Land Preparation - - - - - - Construction (Contract) - - 6,400,000 10,600,000 - 17,000,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 664,000 $ - $ 6,400,000 $ 10,600,000 $ - $ 17,664,000 Project Funding Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Replacement Reserve 166,000 - 1,600,000 2,650,000 - 4,416,000 Grants/Loans 498,000 - 4,800,000 7,950,000 - 13,248,000 Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 664,000 $ - $ 6,400,000 $ 10,600,000 $ - $ 17,664,000 WATER MAIN REPLACEMENT - SEISMIC MITIGATION East Valley Water District | Capital Budget Overview 251 START DATE: March 2024 ESTIMATED COMPLETION: December 2026 PROJECT TYPE: Water Location: Plant 129 PROJECT MANAGER: Engineering TOTAL PROJECT COST: $5,000,000 PRIOR YEARS BUDGET: $1,500,000 Capital Requests: Ongoing Project The Drought Contingency Plan (DCP) includes a list of mitigation actions needed to protect against potential risks and impacts from drought and to increase flexibility and resiliency. The Priority 1 mitigation actions in the DCP include six projects to drill and equip new groundwater wells. A Site Feasibility for New Groundwater Production Well Technical Memorandum, which is included as part of the DCP, provided a high- level assessment of Plant 129 and determined that the site is suitable for a new production well. This project will design, drill, and equip a new groundwater production well at Plant 129. Plant 129 Well Design & Construction capital improvement program Increase District groundwater production capacity. Benefits to the Community Allows the District to continue to meet the community’s water needs. Allows the District to continue to meet local, State, and Federal system requirements. 252 FY 2025-26 Budget Project Cost Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ 525,000 $ - $ - $ - $ - $ 525,000 Land and Land Preparation - - - - - - Construction (Contract) 2,975,000 - - - - 2,975,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 3,500,000 $ - $ - $ - $ - $ 3,500,000 Project Funding Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees 3,500,000 - - - - 3,500,000 Other - - - - - - ANNUAL TOTAL $ 3,500,000 $ - $ - $ - $ - $ 3,500,000 PLANT 129 WELL DESIGN & CONSTRUCTION East Valley Water District | Capital Budget Overview 253 START DATE: July 2025 ESTIMATED COMPLETION: June 2028 PROJECT TYPE: Water Location: 31111 Greenspot Road, Highland, CA 92346 PROJECT MANAGER: Engineering TOTAL PROJECT COST: $4,950,000 PRIOR YEARS BUDGET: N/A Capital Requests: New Project This project supports the District’s long-term strategy to increase groundwater production capacity and enhance system reliability. Well 152 will be designed, drilled, and equipped at the District’s headquarters property. Once completed, it will provide an additional local water supply source to help meet demand and reduce dependence on imported water. Project completion is targeted for June 2028, with phased efforts including design, permitting, and construction over the next several fiscal years. Increase District groundwater production capacity. Benefits to the Community Allows the District to continue to meet the community’s water needs. Allows the District to continue to meet local, State, and Federal system requirements. Well 152 Design & Construction (District Headquarters) capital improvement program 254 FY 2025-26 Budget Project Cost Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ 100,000 $ - $ - $ - $ - $ 100,000 Land and Land Preparation - - - - - - Construction (Contract) 350,000 1,500,000 3,000,000 - - 4,850,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 450,000 $ 1,500,000 $ 3,000,000 $ - $ - $ 4,950,000 Project Funding Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Replacement Reserve 225,000 1,500,000 3,000,000 - - 4,725,000 Grants/Loans 225,000 - - - - 225,000 Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 450,000 $ 1,500,000 $ 3,000,000 $ - $ - $ 4,950,000 WELL 152 DESIGN & CONSTRUCTION East Valley Water District | Capital Budget Overview 255 START DATE: July 2025 ESTIMATED COMPLETION: June 2026 PROJECT TYPE: Water Location: Overland Court North of Piedmont Drive PROJECT MANAGER: Operations TOTAL PROJECT COST: $375,000 PRIOR YEARS BUDGET: N/A Capital Requests: New Project This project will replace 400 feet of undersized 3-inch polyvinyl chloride (PVC) water main in Overland Court, a nine home cul-de-sac extending north of Piedmont 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 pipe’s terminus. Work will be performed in-house by District water maintenance crews and will require additional staffing. Replaces water main to prevent a future break. Benefits to the Community capital improvement program Water Main Replacement Overland Court Operating Budget Impact Statement ADDITIONAL STAFF SALARIES: Requesting two full-time employees to support this project. Allows the District to continue to meet the community’s water needs. Protects health and safety of the community. 256 FY 2025-26 Budget Project Cost Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ 37,500 $ - $ - $ - $ - $ 37,500 Land and Land Preparation - - - - - - Construction (Contract) - - - - - - Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials 112,500 - - - - 112,500 District Labor 225,000 - - - - 225,000 Other (Legal) - - - - - - ANNUAL TOTAL $ 375,000 $ - $ - $ - $ - $ 375,000 Project Funding Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Replacement Reserve 375,000 - - - - 375,000 Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 375,000 $ - $ - $ - $ - $ 375,000 WATER MAIN REPLACEMENT - OVERLAND CT East Valley Water District | Capital Budget Overview 257 Facility Relocations capital improvement program START DATE: July 2025 ESTIMATED COMPLETION: June 2026 PROJECT TYPE: Water Location: Districtwide PROJECT MANAGER: Engineering TOTAL PROJECT COST: $100,000 PRIOR YEARS BUDGET: $1,050,000 Capital Requests: Annual Budget Request Relocate system facilities to maintain service reliability. Benefits to the Community Work with local agencies to ensure a smooth transition with minimal service interruptions. Extend the useful life of the distribution system. The District’s service area covers all of the City of Highland, parts of the City of San Bernardino and parts of San Bernardino County. When these agencies plan and construct improvements within their jurisdiction, there are occasionally alignment or location conflicts with existing District facilities. When this occurs, the District is frequently obligated to relocate its facilities. This project budget serves to fund relocation costs as they arise. 258 FY 2025-26 Budget Project Cost Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 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 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Replacement Reserve 100,000 100,000 100,000 100,000 100,000 500,000 Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 FACILITY RELOCATIONS East Valley Water District | Capital Budget Overview 259 START DATE: July 2025 ESTIMATED COMPLETION: June 2026 PROJECT TYPE: Water Location: Districtwide PROJECT MANAGER: Facilities Maintenance TOTAL PROJECT COST: $125,000 PRIOR YEARS BUDGET: $170,000 Capital Requests: Annual Budget Request Enhance the security of water facilities. Benefits to the Community Prevent unauthorized access. Extend the useful life of facilities. This perennial project supports the ongoing rehabilitation and improvement of District facilities to extend their useful life and maintain safe, efficient operations. Facility rehabilitation efforts are designed to address aging infrastructure and ensure facilities remain in good working condition. While specific projects may vary from year to year, all improvements are scoped to be completed within a single fiscal year and may include structural repairs, system upgrades, or enhancements to security, accessibility, and operational functionality. Facility Rehabilitations capital improvement program 260 FY 2025-26 Budget Project Cost Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - - $ - Land and Land Preparation - - - - - - Construction (Contract) 125,000 75,000 75,000 75,000 75,000 425,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 125,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 425,000 Project Funding Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Replacement Reserve 125,000 75,000 75,000 75,000 75,000 425,000 Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 125,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 425,000 FACILITY REHABILITATIONS East Valley Water District | Capital Budget Overview 261 START DATE: July 2024 ESTIMATED COMPLETION: December 2025 PROJECT TYPE: Water Location: Plant 39 PROJECT MANAGER: Operations TOTAL PROJECT COST: $380,000 PRIOR YEARS BUDGET: $280,000 Capital Requests: Ongoing Project Reduce service interruption time during system repairs or enhancements. Benefits to the Community Provide a secure location to store water distribution parts. Enhance operations to maintain efficiency. This project involves the continued development of a new metal warehouse building at Plant 39 to securely store water distribution parts on the west end of the service area. The warehouse is intended to improve operational efficiency by facilitating quicker access to parts during emergency and scheduled repairs, potentially reducing construction timelines. The facility will also include a restroom for Field staff. With exterior construction completed in the prior fiscal year, the upcoming year’s focus will shift to interior buildout and installation of essential utilities, including water, sewer, electrical, security systems, and fiber connectivity for internet access. Plant 39 Warehouse Building capital improvement program 262 FY 2025-26 Budget Project Cost Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 100,000 - - - - 100,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 100,000 $ - $ - $ - $ - $ 100,000 Project Funding Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Replacement Reserve 100,000 - - - - 100,000 Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other - - - - - - ANNUAL TOTAL $ 100,000 $ - $ - $ - $ - $ 100,000 PLANT 39 WAREHOUSE BUILDING East Valley Water District | Capital Budget Overview 263 START DATE: January 2025 ESTIMATED COMPLETION: June 2026 PROJECT TYPE: Water Reclamation Location: Sterling Natural Resource Center PROJECT MANAGER: Water Reclamation TOTAL PROJECT COST: $10,232,000 PRIOR YEARS BUDGET: $2,560,000 Capital Requests: Ongoing Project Enhance operations to maintain efficiency. Benefits to the Community Increase facility treatment capacity. Increase groundwater supply replenishment. capital improvement program Additional Membrane Bioreactor This project involves the installation of a fifth membrane bioreactor (MBR) train at the SNRC. The existing treatment process consists of four identical MBR trains, with infrastructure in place to accommodate a future fifth unit. Adding this fifth train at this time will enhance operational flexibility by allowing staff to better manage fluctuating flow conditions and reduce the frequency and severity of membrane fouling. This proactive expansion supports the long-term performance and reliability of the treatment facility while optimizing maintenance cycles and overall plant efficiency. 264 FY 2025-26 Budget Project Cost Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation - - - - - - Construction (Contract) 6,140,000 1,532,000 - - - 7,672,000 Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 6,140,000 $ 1,532,000 $ - $ - $ - $ 7,672,000 Project Funding Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Replacement Reserve - - - - - - Grants/Loans 1,493,000 562,500 - - - 2,055,500 Bond Proceeds - - - - - - Development Fees 1,900,000 - - - - 1,900,000 Other 2,747,000 969,500 - - - 3,716,500 ANNUAL TOTAL $ 6,140,000 $ 1,532,000 $ - $ - $ - $ 7,672,000 ADDITIONAL MEMBRANE BIOREACTOR East Valley Water District | Capital Budget Overview 265 START DATE: July 2025 ESTIMATED COMPLETION: March 2026 PROJECT TYPE: Water Reclamation Location: Weaver Basins PROJECT MANAGER: Reclamation/Engineering TOTAL PROJECT COST: $150,000 PRIOR YEARS BUDGET: N/A Capital Requests: New Project Allow the District to monitor groundwater recharge levels. Benefits to the Community Provide groundwater quality data and understanding of the aquifer. Ensure continued regulatory compliance and effectiveness of the groundwater recharge program. This project involves the construction of a new shallow monitoring well near the Weaver Basin recharge area. Recharging groundwater with recycled water requires monitoring wells to track changes in groundwater quality and to collect data necessary for a tracer study, which is critical for calibrating models used to understand the movement of recycled water within the aquifer. Due to the exceptionally wet conditions in 2022 and 2023, groundwater levels in the area rose significantly, rendering the existing monitoring well too deep to capture relevant data. The new shallow well will provide accurate water quality data at the appropriate depth, enabling a successful tracer study and ensuring continued regulatory compliance and effectiveness of the groundwater recharge program. capital improvement program Weaver Basin Shallow Well 266 FY 2025-26 Budget Project Cost Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total ESTIMATED COST ITEMIZATION Planning and Design $ 150,000 $ - $ - $ - $ - $ 150,000 Land and Land Preparation - - - - - - Construction (Contract) - - - - - - Project Mgmt/Inspection - - - - - - Equipment/Furnishings - - - - - - Materials - - - - - - District Labor - - - - - - Other (Legal) - - - - - - ANNUAL TOTAL $ 150,000 $ - $ - $ - $ - $ 150,000 Project Funding Year 1 FY 2025-26 Year 2 FY 2026-27 Year 3 FY 2027-28 Year 4 FY 2028-29 Year 5 FY 2029-30 5-Year Project Total FINANCING SOURCES Operating Revenue $ - $ - $ - $ - $ - $ - Replacement Reserve - - - - - - Grants/Loans - - - - - - Bond Proceeds - - - - - - Development Fees - - - - - - Other 150,000 - - - - 150,000 ANNUAL TOTAL $ 150,000 $ - $ - $ - $ - $ 150,000 WEAVER BASIN SHALLOW WELL East Valley Water District | Capital Budget Overview 267 The Annual Budget SUMMARIZES CAPITAL IMPROVEMENTS 268 FY 2025-26 Budget I N F R A S T R U C T U R E AC C O M P L I S H M E N T S Infrastructure Accomplishments CAPITAL BUDGET SECTION East Valley Water District | Capital Budget 269 The budget reflects the District's commitment to allocating resources to meet the needs of its stakeholders. 270 FY 2025-26 Budget There were several Capital Improvement Projects completed during FY 2024-25 that focused on system improvements for both water and wastewater systems. The District would like to highlight the following:  Elmwood Road & Dogwood Street Water Main Replacement Project Budget: $322,000 Actual Cost: $321,796 Completed: February 2025 District staff replaced 1,127 feet of 4-inch 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 consisted of 6-inch ductile iron pipe and provided 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.  Oakridge Court Water Main Replacement Project Budget: $0 Actual Cost: $119,689 Completed: May 2025 East Valley Water District field staff replaced over 400 feet of water main on Oakridge Court, north of Piedmont Drive in Highland. Crews replaced a 4-inch water main with a 6-inch iron pipe. By replacing the undersized main, the probability of main breaks and leak repairs is significantly reduced, water quality standards are maintained, and the life of the system is extended.  Plant 56 Storage Tank Rehabilitation Project Budget: $1,000,000 Actual Cost: $912,188 Completed: June 2025 The District completed a comprehensive, multi-year water tank inspection program and received an engineering report identifying and prioritizing tank rehabilitation projects. This fiscal year’s tank rehabilitation project was a 0.5-million-gallon reservoir at District Plant 56. Completed work included the application of new internal coating system and installation of anti-corrosion system to help extend the life of the tank. Infrastructure improvements represent a significant investment in maintaining a reliable system for the community served by the District. Infrastructure Accomplishments East Valley Water District | Capital Budget Overview 271 The Annual Budget HIGHLIGHTS ACCOMPLISHMENTS 272 FY 2025-26 Budget The budget is formally reviewed each quarter, allowing for an opportunity to take formal budget adjustments to the Governing Board for consideration. glossaryFY 2025-26 G L O S S A R Y East Valley Water District | Glossary 273 • Definitions • Acronyms • Chart of Accounts Glossary Contents 274 FY 2025-26 Budget Definitions A • Acre Foot: A water measurement equal to 325,851 gallons. - pg. 57 • Actuarially Determined Contribution: The amount needed to fund a defined benefit pension plan over time. - pg. 135 • Advanced Metering Infrastructure: The technology of collecting meter reads via a network. - pg. 18 • Air Quality Management District or South Coast Air Quality Management District: The air pollution agency responsible for regulating stationary sources of air pollution in the South Coast Air Basin, in Southern California. - pg. 24 • Aluminum Chloralhydrate: Coagulant used in water treatment to remove suspended solids, turbidity, and color. - pg. 188 • American Water Works Association: Established in 1881 and is the largest nonprofit, scientific, and educational association dedicated to managing and treating water. - pg. 31 • 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. 152 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. 46 • California Special Districts Association: A 501c(6) not-for-profit association that promotes good governance and improved core local services through professional development, advocacy, and other services for independent special districts. - pg. 7 • Capital Outlay and Construction Costs: Capitalized and expenses over the useful life of the asset on a Generally Accepted Accounting Principle basis; shown as a current expenditure on a budget basis. - pg. 46 Technical terms found in the budget document. The District is committed to sound stewardship and transparent operations, through its presentation of the capital and operating budget to the community. Glossary East Valley Water District | Glossary 275 • Closed Circuit TV: The use of video cameras to transmit a signal to a limited set of monitors. - pg. 205 • 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. 46 • 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. 90 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. 46 • Diesel and Off Roading Reporting System: Online tool to report off-road diesel vehicle inventories and reduction of emissions to the California Air Resources Board. - pg. 223 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. 46 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. 59 • 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. 3 • Fund Equity: The excess of an entity’s assets over its liabilities; a negative Fund Equity is sometimes called a deficit. - pg. 71 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. 46 • 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. 157 • 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. 46 • 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. 46 • Government Finance Officers Association: Represents public finance officials throughout the United States and Canada. - pg. 6 • Granular Activated Carbon: A highly porous adsorbent material used during the water treatment process. It is used to remove tetrachloroethylene, also known as perchloroethylene (PCE). - pg. 188 • Groundwater: Water that occurs below the surface of Earth. - pg. 8 276 FY 2025-26 Budget H • Hundred Cubic Feet: Water billing measurement equal to 748 gallons. - pg. 53 K • Key Performance Indicator: Monitors progress towards meeting program objectives. - pg. 4 L • Laserfiche: A digital content management software. - pg. 128 • 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. 92 M • Membrane Bioreactor: A process that combines a biological treatment step with membrane filtration. - pg. 211 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. 27 P • Pension Expense: Budgeted based on employer contribution rates assigned by the California Public Employees’ Retirement System. For financial statement reporting, pension expense is recorded based on the change to the net pension liability in accordance with Governmental Accounting Standards Board Statement No. 68. - pg. 46 • 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. 46 • Purchased Water: Imported water purchased from the California State Water Project. - pg. 61 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. 31 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 • Self-Generation Incentive Program: Designed to help major California utilities with energy storage generation systems. - pg. 62 • Single-Family Residential: A stand-alone residential building. - pg. 53 • Southern California Edison (SCE or Edison): Provides electricity to the District’s service area. - pg. 25 • Sterling Natural Resource Center: The District is planning and constructing a water recycling center called the Sterling Natural Resource Center. - pg. i • Supervisory Control and Data Acquisition: Generally refers to an industrial computer system that monitors and controls a process. - pg. 18 • Surface Water: Found in large bodies such as oceans or lakes which flows overland in streams. - pg. i T • Tyler Accounting System: The District’s enterprise resource planning software that integrates across all business processes and activities. - pg. 24 W • Wastewater Collection System Master Plan: Outlines existing deficiencies and facility requirements to meet increasing demands. It provides a general assessment to creat a comprehensive CIP for the wastewater collection system. - pg. 230 • 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. 230 East Valley Water District | Glossary 277 The Annual Budget MAKES DECISIONS AND SETS POLICY 278 FY 2025-26 Budget AC R O N Y M S Acronyms GLOSSARY SECTION East Valley Water District | Glossary 279 The District is committed to sound stewardship and transparent operations, through its presentation of the capital and operating budget to the community. 280 FY 2025-26 Budget A • ACH: Aluminum Chloralhydrate - pg. 188 • ADC: Actuarially Determined Contribution - pg. 135 • AF: Acre Foot - pg. 57 • AMI: Advanced Metering Infrastructure - pg. 18 • AQMD or SCAQMD: Air Quality Management District or South Coast Air Quality Management District - pg. 24 • ATSI: Advanced Telemetry Systems, Inc. - pg. 158 • AWWA: American Water Works Association - pg. 31 B • BAR: Bureau of Automotive Repair - pg. 223 • BOD: Biological Oxygen Demand - pg. 213 C • CAC: Community Advisory Commission - pg. 42 • CalFire: California Department of Forestry and Fire and Protection - pg. 9 • CalPERS: California Public Employees’ Retirement System - pg. 46 • CARB: California Air Resources Board - pg. 219 • CCTV: Closed-Circuit Television - pg. 205 • CEO: Chief Executive Officer - pg. ii • CFD: Community Facilities District - pg. 52 • CGC: California Government Code - pg. 37 • CHEF: Community Heritage Education Foundation - pg. 26 • CIP: Capital Improvement Program - pg. 5 • CISCO: Computer Information System Company - pg. 24 • CMMS: Computerized Maintenance Management System - pg. 211 • COLA: Cost of Living Adjustment - pg. 59 • CSDA: California Special Districts Association - pg. 7 • CSMFO: California Society of Municipal Officers - pg. 6 • CWEA: California Water Environment Association - pg. 206 D • DORRS: Diesel and Off Roading Reporting System - pg. 223 E • EOC: Emergency Operations Center - pg. 133 • ERP: Enterprise Resource Planning - pg. 25 • EVWD: East Valley Water District - pg. 81 • EV: Electric Vehicle - pg. 81 Technical acronyms found in the budget document. Acronyms East Valley Water District | Glossary 281 F • FY: Fiscal Year - pg. i • FOG: Fats, Oils, and Grease - pg. 18 G  • GAC: Granular Activated Carbon - pg. 188 • GASB: Governmental Accounting Standards Board - pg. 46 • GAAP: Generally Accepted Accounting Principles - pg. 46 • GIS: Geographic Information System - pg. 157 • GFOA: The Government Finance Officers Association - pg. 6 H • HCF: Hundred Cubic Feet - pg. 53 • HCP: Habitat Conservation Plan - pg. 230 • HOA: Homeowners Association - pg. 28 • HVAC: Heating, Ventilation, and Air Conditioning - pg. 218 K • KPI: Key Performance Indicator - pg. 4 L • LAIF: Local Agency Investment Fund - pg. 92 • LRIP: Local Resource Investment Program - pg. 57 M • MBR: Membrane Bioreactor - pg. 211 • MG: Million Gallon - pg. 17 • MGD: Million Gallons Per Day - pg. 17 • MOU: Memorandum of Understanding - pg. 26 N • NFWC: North Fork Water Company - pg. 27 O • OIT: Operator in Training - pg. 26 • OPEB: Other Post Employment Benefits - pg. 46 • OT: Overtime - pg. 59 P • PAFR: Popular Annual Financial Report - pg. 152 • PE: Preferred Service - pg. 25 • PFAS: Per- and Polyfluoroalkyl Substances - pg. 28 • PFOA: Perfluorooctanoic Acid - pg. 193 • PFOS: Perfluorooctane Sulfonate - pg. 193 • PRV: Pressure Regulating Valve - pg. 18 • PT: Part-Time - pg. 59 R • RFP: Request for Proposal - pg. 175 • RUSD: Redlands Unified School District - pg. 9 S • SAR: Santa Ana River - pg. 8 • SBCUSD: San Bernardino City Unified School District - pg. 9 • SBMWD: City of San Bernardino Municipal Water Department - pg. 62 • SCADA: Supervisory Control and Data Acquisition - pg. 18 • SCE: Southern California Edison - pg. 25 • SFR: Single-Family Residential - pg. 53 • SGIP: Self-Generation Incentive Program - pg. 235 • SNRC: Sterling Natural Resource Center - pg. i • SRF: State Revolving Fund - pg. 41 • SWP: State Water Project - pg. 8 • SWRCB: State Water Resources Control Board - pg. 87 T • TSS: Total Suspended Solids - pg. 213 U • UCMR5: Unregulated Contaminant Monitoring Rule 5 - pg. 194 • U.S. EPA: United States Environmental Protection Agency - pg. 31 W • WDR: Waste Discharge Requirements - pg. 211 282 FY 2025-26 Budget C H A R T O F AC C O U N T S Chart of Accounts GLOSSARY SECTION East Valley Water District | Glossary 283 The District actively enhances communication methods to reach a variety of stakeholders. 284 FY 2025-26 Budget 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 • 5999 - CIP Labor Offset: Salaries and wages to offset Regular Labor for staff who work on CIP Projects. • 6101 - Purchased Water: Cost to purchase imported water • 6102 - Groundwater Replenishment: Cost to pump groundwater from the basin • 6103 - Water Assessments: Cost of water shares directly related to North Fork Water Company • 6201 - Materials & Supplies: Items used in daily operations, repair, and maintenance • 6202 - Tools: Items used to perform repair and maintenance activities • 6203 - Office Supplies: Items such as pens, paper, and other related desk accessories • 6204 - Chemicals: Used for the treatment of water and cleaning equipment and tools • 6205 - Conservation Rebates: Costs to reimburse customers for eligible conservation efforts • 6301 - Contract Services: Services rendered by consultants and contractors; software subscriptions and licensing • 6302 - Banking Services: Service fees charged by financial institutions, merchant banks, and payment processors • 6303 - Printing & Publishing: Costs for printing and producing District publications • 6304 - Legal Services: Costs for legal advice, consultation, contract review, and litigation • 6305 - Treatment Services: Outside treatment services for wastewater • 6306 - Rents & Leases: Rental and lease costs for buildings and equipment that are not owned by the District • 6307 - Uniforms: Costs for the purchase, rental and laundering of uniforms, and other sundries for employees 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. Chart of Accounts East Valley Water District | Glossary 285 • 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 • 6403 - Electricity: Power costs for operating wells, pumps and boosters, treatment plants, and other facilities • 6404 - Fuel: Fuel costs for vehicles and generators • 6405 - Permits: Permit costs required by Federal, State, and local regulatory agencies • 6406 - Postage: Costs for mailing bills, publications, and special deliveries • 6501 - Memberships & Dues: Subscriptions (not including software) and memberships for associations and special groups; award applications • 6502 - Professional Development: Seminars, conferences, and travel costs for employee development • 6503 - Education Assistance: Tuition reimbursement for employees who attend school for a degree or certificate • 6504 - Meetings: Costs such as meals, parking, and registration that are not related to professional development • 6505 - Employee Recognition: Employee recognition costs to recognize excellent performance throughout the year • 6701 - General Insurance: General liability insurance for the District’s facilities and infrastructure development • 6702 - Insurance Claims: Cost of insurance claims paid during the fiscal year • 6703 - Cash Over/Short: Accounts for customer payment processing discrepancies • 6704 - Bad Debt: Account used to write off uncollectible customer unpaid water or wastewater charges • 6705 - Retiree Benefits: Other post-employment benefits reimbursed to District retirees • 6706 - Inventory Over/Short: Account used to report overage or shortage when reconciling inventory 286 FY 2025-26 Budget District Headquarters 31111 Greenspot Road Highland, California 92346 Sterling Natural Resource Center 25318 5th Street San Bernardino, California 92410 District Board Meetings Second and Fourth Wednesday of Each Month at 5:00pm District Headquarters Board Room 31111 Greenspot Road, Highland, CA 92346 eastvalleywater.gov East Valley Water District RESOLUTION 2025.03 , East Valley Water District (“District”) is a county water district organized and operating pursuant to California Water Code Section 30000 et seq.; and , the Board of Directors has reviewed and considered the Budget as presented for fiscal year 2025-26, hereinafter referred to as the “Budget;” and , 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 , the Budget establishes the basis for incurring liability and making expenditures on behalf of the District; and by the Board of Directors of the East Valley Water District as follows: The Budget, and each and every part thereof, is hereby approved and adopted for the fiscal year 2025-26; and The provisions of this Resolution shall take effect on July 1, 2025. this 25th day of June 2025. Ayes: Directors: Noes: Abstain: Absent: James Morales, Jr. Board President East Valley Water District ATTEST: I HEREBY CERTIFY that the foregoing is a full, true and correct copy of Resolution 2025.03 adopted by the Board of Directors of East Valley Water District at its Regular Meeting held June 25, 2025. Agenda Item #4b June 25, 20251 Meeting Date: June 25, 2025 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider approval of Amendment No. 4 - Reimbursement Agreement with the City of Highland for Law Enforcement Services RECOMMENDATION That the Board of Directors authorize the General Manager/CEO to execute Amendment No. 4 reimbursement agreement with the City of Highland for law enforcement services. BACKGROUND / ANALYSIS East Valley Water District (District) serves the needs of the community through water and wastewater services. Maintaining critical infrastructure is essential to achieving these objectives, resulting in the District taking an active role in emergency mitigation measures, including a variety of site safety and security measures. A contract was established with the San Bernardino County Sheriff’s Department Highland Station on January 1, 2022, remaining in-place until 2031. As part of this partnership, a deputy has been assigned to the District to provide security at various sites within the service area, conduct criminal investigations related to District property, and assist District personnel in managing customer conflicts. Moreover, the deputy supports the District during public events at the Sterling Natural Resource Center. The amount for each fiscal year covers the full annual costs for the deputy and for FY 2025-26, the amount is $310,625, a 0.69% decrease from the previous year. This total cost reflects the approved salary and benefits as adopted by the San Bernardino County Board of Supervisors. Term Amount January 1, 2022 - June 30, 2022 $154,000 FY 2022-23 $290,764 FY 2023-24 $304,254 FY 2024-25 $312,785 FY 2025-26 $310,625 Agenda Item #4b June 25, 20252 Meeting Date: June 25, 2025 Since the City of Highland is the primary contract holder for law enforcement services with the San Bernardino County Sheriff’s Department, the District's amendment aligns with the contract to ensure there is no duplication of services. It is important to note the ultimate command and control of the deputy will remain under the discretion of the Highland Sheriff Department Command Staff. Finally, the City of Highland does not impose any administrative fees for facilitating this agreement. Partnerships between local agencies provide enhanced levels of service to the community, while maximizing organizational expertise. The District will continue fostering a strong working relationship with the City of Highland and San Bernardino County Sheriff’s Department to ensure the safety and security of the District’s assets. DISTRICT PILLARS AND STRATEGIES REVIEW BY OTHERS FISCAL IMPACT ________________________________ ATTACHMENTS Agenda Item #4b June 25, 20253 Meeting Date: June 25, 2025 Amendment #4, Amendment #4 Exhibit B. 1 AMENDMENT NO. 4 REIMBURSEMENT AGREEMENT BETWEEN THE CITY OF HIGHLAND AND EAST VALLEY WATER DISTRICT FOR LAW ENFORCEMENT SERVICES This Amendment No. 4 Reimbursement Agreement Between the City of Highland and East Valley Water District for Law Enforcement Services (“Amendment No. 3”) is made and entered into this 13th day of May 2025 by and between the CITY OF HIGHLAND, a municipal corporation (“City”) and EAST VALLEY WATER DISTRICT, a California special district (“EVWD”). The City and EVWD may be collectively referred to as “the Parties”. 1. RECITALS A. On September 28, 2021, the City and EVWD entered into a Reimbursement Agreement for law enforcement services (“Agreement”). Pursuant to the Agreement, beginning January 1, 2022, the City, through its Contract with the County, will provide one Sheriff’s deputy to patrol EVWD’s Sterling Natural Resource Center and provide law enforcement services to EVWD’s 41 sites. EVWD would then be responsible for reimbursing the City for the full cost of the Sheriff’s deputy. B. On May 10, 2022, the Parties entered into Amendment No. 1 to the Agreement to provide that the payment under the Agreement would be $285,356.00. The cost subsequently increased by $5,408.00, and the increase was paid by EVWD to the City, for a total of $290,764.00 for Fiscal Year 2022-2023. C. On May 9, 2023, the Parties entered into Amendment No. 2 to provide that payment under the Agreement for one (1) Deputy would be $304,254.00 for Fiscal Year 2023-2024. D. On May 14, 2024, the Parties entered into Amendment No. 3 to provide that payment under the Agreement for one (1) Deputy would be $312,785.00 for Fiscal Year 2024-2025. E. The Parties now seek to enter into this Amendment No. 4 to address the contract amount for Fiscal Year 2025-2026. According to the San Bernardino County Sheriff’s Department, the full cost of one (1) Deputy for Fiscal Year 2025-2026 is $310,625. 2. FOURTH AMENDMENT A. Section 3, Payment of the Agreement is hereby amended to read as follows: 3. Payment. On or before July 1, 2025, EVWD shall pay to the City Three Hundred Ten Thousand Six Hundred Twenty-Five Dollars ($310,625) for the full cost of the Sheriff’s deputy. The cost breakdown is attached hereto as Exhibit “B”. 2 Thereafter, on or before July 1st of each subsequent year, EVWD shall pay to the City the full cost of the Sheriff’s deputy based on the revised schedule of payment. The parties acknowledge that the cost of the Sheriff’s deputy may change each year and that the full cost that the City pays the County for the Sheriff’s deputy shall be passed through to EVWD. Beginning in June 2022, no later than June 1st of each year, the City shall provide to EVWD a new schedule of payment for the Sheriff’s deputy that will replace Exhibit “B” hereto. Beginning in June 2022, no later than July 1st of each year, EVWD shall pay to the City the amount set forth in Exhibit “B”. 3. SEVERABILITY 4. COUNTERPARTS IN WITNESS WHEREOF, the parties hereto have executed “Amendment No. 4” on the date and year first above written. 4 CITY OF HIGHLAND EAST VALLEY WATER DISTRICT _______________________________ _______________________________ Carlos Zamano, City Manager Michael Moore, General Manager/CEO ATTEST: _______________________________ Alondra Muñoz, City Clerk APPROVED AS TO FORM: _______________________________ Maricela Marroquin, City Attorney Exhibit “B” Deputy Sheriff: $229,647 Marked Patrol Unit: $22,659 Plus, other costs such as: HT radio and taser, Dispatch Services, Administrative support, Vehicle and Personnel Liability and Insurance is approximately $58,319. Total Cost for the above deputy and equipment in FY 2025-2026 (July 1, 2025 - June 30, 2026) is $310,625.