Operating Budget. Adopted November 14, 2017

Transcription

1 Operating Budget Adopted November 14, 2017

2 2018 Operating Budget Adopted November 14, 2017

3 TABLE OF CONTENTS Distinguished Budget Document Award (preceding year)... i EAA Vision, Mission Statement, and Goals... ii Transmittal Memorandum... 1 Board of Directors... 9 Format of the Budget Document Budget Overview Introduction and Key Aquifer Information Community (San Antonio) Profile Governance Budget Assumptions Budget Process Budget Calendar Financial Policies Financial Overview Budget Summary Overview Fund Summary Combined Fund Balance Composition of Net Assets General Fund Revenue & Expense Summary General Fund Summary EAHCP Fund - Revenue & Expense Summary EAHCP Fund Summary Department Detail EAA Organization Chart 37 Personnel Schedule General Fund Program Totals Executive Department Administration and Financial Services Department Aquifer Management Services Department External & Regulatory Affairs Department Communications & Development Habitat Conservation Plan Program Capital Budget Summary Projects by Program Appendices Appendix A Strategic Plan Appendix B Board Resolution 2017 Budget Adoption Appendix C General Improvement Revenue Note Amortization Schedule Appendix D Glossary **Note: Bookmarks are added to the PDF document to assist in the navigation to the listed sections. **

4 GOVERNMENT FINANCE OFFICERS ASSOCIATION D istingu ished Budget Presen tation Award PRESENTED TO Edwards Aquifer Authority Texas For the Fiscal Year Beginning January 1,2017 Executi ve Director Edwards Aquifer Authority i 2018 Adopted Budget

5 VISION STATEMENT The EAA s vision is a comprehensive description of how the organization will look in the future. The Edwards Aquifer Authority is a regional water management agency that regulates with integrity, transparency, respect, and commitment to sustainability of the aquifer. MISSION STATEMENT The Edwards Aquifer Authority manages, enhances, and protects the Edwards Aquifer system. GOALS The EAA has eight major strategic goals that are the focus of the agency through 2021: Sustain Federally Protected Aquifer-Dependent Species Ensure Effective Management of the Edwards Aquifer Identify and Address Recharge Initiatives for the Edwards Aquifer Prevent the Pollution of the Aquifer Conduct Research that Enhances Understanding and Effective Management of the Aquifer Develop an Inclusive, Service Oriented Organization Build Shared Value in the EAA Mission Sustain Fiscal Stability Edwards Aquifer Authority ii 2018 Adopted Budget

6 EDWARDS AQUIFER AU TH O RIT Y MEMO R ANDUM To: Board of Diref t rs From: Roland Ruiz General Mana r Date: November 14,201 7 SUbject: Adopted Operating Budget Presented herein is the adopted budget for the Edwards Aquifer Authority. This budget provides funding for Edwards Aquifer Authority (EAA) operations and programs in support o f our mi ssion to manage, enhance, and protect the Edwards Aquifer as directed by the Texas Lcgislature through the EAA Act (Act). This budget suppol1s two programmatic areas: a General Fund of $17.6 million in projected expenses, supported primari ly by revenue generated through the assessment of a general aqui fer management fee (AMF) of $42 per acre-foot; and an Edwards Aqu ifer Habitat Conservation Pl an (EA HCP) Fund of $19 mi lli on in projected expenses, supported primarily by revenue generated through the assessment of a $42 per acre-foot program AMF. Coll ecti vely, thi s makcs for a $36.6 million eomprchensive budget fu nded by a combined aqui fer managemcnt fec of $84 per acrc-foot, which remains unchanged since It is important to note that in addition to AMFs, some revenues are generated through collections rclated to the settlement of compliance matters. These funds are not used to meet the operational requirements of the EAA. Instead, tbe Board has designatcd this revenue to be set aside in a Conservation/Aquifer Protection Fund to provide funding for future and/or on-going projects and programs related to the conservation and protection oftbe Aquifer. Approx imately 38.9% ($ 14.2 million) of the $36.4 million comprehensive budget is projected to be reinvested into program initiatives that serve tbe greater good of the region and the constituents we serve. These program initiati ves, diagramed below, are di scussed in detail later in th is document. Edwards Aquifer Authority Adopted Budget

7 Constituent/Community Reinvestment 2018 People Costs (Wages/Benefits) Constituent! Community Reinvestment General Operations Fund Conservation Grants ,000 Abandoned Well CloslI re - S247,000 Other Operations & Program Costs EAHCP Fund ASR Leasing - 55,615,975 Regional Wa ter Conservation - S4,507,750 San Marcos/Comal Springs - S I,37 1,583 VISPO - 52,284, I 00 EAA GENERAL FUND The General Fund budget includes $ 15.8 million in revenue and $17.6 mi lli on in expenses (including capital outlays for equipment add debt service), representing a decrease of 6.1 % and increase of 5.5%, respectively, from The difference between expenses and revenue results in a Net Loss of $ 1. 8 million, before depreciation, and wi ll require the use of General Fund reserves from prior years. Possible utilization of reserves to cover operating expenses is considered during the budget developmem process. The General Fund operating reserve balance is discussed in detail later in thi s document. Amended Budget Adopted Budget Percent FY2017 FY2018 Variance Variance Revenues Operating Revenues S S (929,450) -5.6% Grant Reven ue S 107,500 ( ) % Non-Operating Revenues 24,400 28, % Total Revenues S S 15, S (1,032,850) -6.1% Expenses Capital Expenses ~ $ ( ) -14.3% Operating Expenses , , % Total Expenses S 16,671,390 S $ % Net Income/(loss) (Before Depreciation) $ 158,750 S ( ) S (1, ) fi' Includes both equipment and note principal payments Edwards Aquifer Authority Adopted Budget

8 Revenues Operating Revenues General Fund revenues are derived almost solely from the AMF charged to all groundwater withdrawal permit holders. By far, the largest source of EAA revenue is the AMFs paid by non-agricultural (Municipal and Industrial, or M&I) groundwater withdrawal permit holders. In 201 8, the AMF rate changes ITom $44 to $42 resulting in a decrease in General Fund revenue. As set forth in the EAA Act, M&I permit holders pay AMFs based on the amount of groundwater authorized to be pumped in a given year. Revenue from tbis source represents about 98.9% of total General Fund revenues in 2018, based on tbe $42 per acre-foot AMF rate. Revenue fi'om agricultural permit holders, who pay $2 per acre-foot of groundwater actuauy pumped as sct forth in the Act, represents less than I % of the total budgeted revenue. Non -Operat ing Revenues Other non-operating revenue consists of interest income and miscellaneous income. These revcnue sources, which represent about 0.2% of total General Fund revenue, are not expected to change materially, as interest rates remain at historica lly low levels, and miscellaneous income (including application fees) is relatively insignificant. Total Revenues by Source 2018 AMFM&I, 515,623,790, 98.9% AMF Irrigation,..,.-$ , 0.9% Non-Operating Revenues (Interest, Other), $28.500,0.2% Expenses This 2018 General Fund budget funds the programs and staffing necessary to accomplish the EAA's strategic initiatives and conduct daily operations. Expenditures (operating expenses, capital outlay and debt service) for 2018 tolal $ 17.6 million, representing a 5.5% increase from In 2018, approximately 56.0% of the budgeted General Fund expenses is associated with employee salaries and benefits. Another 25.1 % is for professional and technical services. The remaining categories, which include expenses such as Conservation Grants, Building Debt Service, Supplies, Property Services, Capital Outlays, and Other Services, make up the remaining 18.9% of total expenditures. Specific focus on strategic initiatives related to water quality and aquifer protection include several new program Edwards Aquifer Authority Adopted Budget

9 funding requirements such as: a first responder education program; storage tank regulatory, outreach and replacement ass istance; and, an abandoned well awareness, prioritization and closure program. The 2018 budget also includes a cost share agreement between EAA and the City of San Antonio (City) to cover expenses associated with the City's Edwards Aqu ifer Protection Program. The 2018 budget includes a credit of$ 175,000 in cost share reimbursement to be paid by the Ci ty to the EAA under thi s contract to offset some EAA costs associated with annual inspections of properties enro lled in the conservation easement program. Expenses by Category 2018 Salaries & Wages, $7,423,306,42.2% 4.0% Other Exp,en"es, J $314,994,1.8% Out to rounding. dol/aromounu and/or ~rctnto~s may nor tord. Supplies, '-Other Services, ~ Property Services $468,428,2.7% $720,818,4.1% $1,114,105,6.3% Technical Services, $4,413,679,25.1% General Fund Budget Highlights Following is a list of Operating Expense highl ights for that are over $100,000, by project. Legal services Election services Cost-o f-l ivinglmerit adj ustments (incremental); new positions (3) Intergovernmental agreements to fund recycled water projects/conservation USGS Data Collecti on LaboratolY services Abandoned well closure/well logging assistance Recharge Dam Maintenance; Seco Creek Control Valve Conservation grants USGS Trinity-Edwards Aquifer mapping project Hydrologic budget studies Precipitation enhancement Legislative services Website design/online service access Cloud data services and storage $750, , , , , , , , , , , , , , ,000 Edwards Aquifer Authority Adopted Budget

10 Interformational Flow Studies Variable flow biologic monitoring Permits/records management database rebuild Debt service (building note interest expense) 130, , , ,000 Capital Budget and Debt Service The 2018 General Fund operating expenses described above include a capital budget to fund those items that cost more than $1,000, and have an expected life span of at least one year, as well as the principal payment due on the 20-year general improvement note related to the building consolidation project completed in (The budget includes a total ofsi95,ooo in debt service: SI15,OOO represents the payment of interest, which is budgeted as an operating expense; $80,000 is budgeted as a reduction in the note principal) The 2018 CapitallDebt Service Budget is approximately 14.3% lower than 2017 CapitaVDebt Service Budget. Following is a list of the 2018 General Fund Operations Capital Budget highlights. Software (database rebuild) Remote Monitoring/Gauging and Telemetry equipment (replacement) Computer hardware (replacement of staff desktops, other infrastructure) Water sampling/logging/monitoring equipment Debt service (building note principal) Vehicles (2 replacement) $116, , ,000 90,000 80,000 72,000 Designated Funds In addition to the EAA's standard operating expenses, funds have been designated to meet specific objectives set forth by the Board of Directors. A summary of each of these designations is provided below. Activities related to the fulfillment of each fund's purpose have been included in the 2018 budget. Abandoned Well Closure Assistance Fund The Abandoned Well Closure Assistance Fund was established in 2010 as a funding source to provide qualified, low-income well owners financial assistance to resolve abandoned well compliance matters. By the end of 20 17, the EAA will have closed nine abandoned wells as part of a pilot initiative designed to implement and assess the effectiveness of the assistance program. For 2018, this program budget includes $257,000 to continue assisting qualifying well owners in closing their wells and with well logging. Conservation/Aquifer Protection Fund The Conservation! Aquifer Protection Fund receives revenue through compliance settlement agreements and is used for funding future and/or on-going projects and programs related to the conservation and protection of the Aquifer. The EAA does Dot use any of the revenue derived from compliance settlements for operating expenses or capital purchases. Historically, expenses related to variable flow biologic monitoring during drought or flood conditions at Comal and San Marcos springs have been covered by these funds. The 2018 budget includes $125,000 to cover such monitoring events, if needed, or other conservation or protection initiatives the Board may designate. Edwards Aquifer Authority Adopted Budget

11 Ge/leral FU/lt! Opemti/lg Reserve The 2018 budget assumes an ending operating reserve of $1,858, 182, which includes an undesignated portion of $1,467, 167. The ending operating reserve and undesignated operating reserve balances are 10.6% and 8.3%, respectively, of the 2018 budgeted expenses. The EAA's goal is to maintain a minimum undesignated reserve balance of 15% of budgeted expenses for any given fi scal year. However, as di scussed previously with the Board, thi s reserve will fluchl3te from budget to budget and in years where there is excess, those funds may be carried over fi'om one budget year to another as a reserve for maintaining stability in the AMF rate. The operating reserve is evaluated each year and, based on future anticipated needs, may move closer to the 15% goa l. It should be noted, however, that even within a particular year thi s reserve will fluctuate as actual revenues and expenses vary. EDWARDS AQUlFERHABITATCONSERVATION PLAN FUND On March 18, 20 13, the United States Fish and Wildlife Service (FWS) issued an Incidental Take Penllit (ITP) to cover the use of the Edwards Aquifer and associated spring systems. The ITP is supported by the EAHCP and runs through March In 2013, the EAA began implementing the EAHCP, which consists ofa number of measures designed to maintain minimum springtlows at Comal and San Marcos springs for the benefit of protected species, to improve habitat conditions at tbose springs, and to provide for artificial refugia in tbe event conditions warrant the removal of endangered species from their natural habitat. The 2018 EAHCP budget includes $16.5 million in revenue and $19 million in expenses, resulting in a Net Loss of $2.5 million, before depreciation, and will require the use of EAHCP reserves from prior years. Possible utilization of reserves to cover operating expenses is considered during the budget development process. The EAHCP reserve balance is discussed later in this document. The EAHCP expense budget is derived largely from Table 7.1 of the EAHCP. For 2018, the EAHCP budget is greater tban Table 7.1 by $1,139,430. Amended Budget Adopted Budget Percent FY2017 FY2018 Variance Variance Revenues Operating Revenues S 15,784,400 S 16,359,790 $ % Non-Operating Reve nues 70, ,400 86, % Total Reven ues 5 15,854,400 S 16,516,190 $ 661, % Expenses Capital Expenses Operating Expenses Total Expenses $ s 30,000 22,302,476 22,332,476 s s 41,000 19,011,027 19, S 11,000 (3,291,449) $ (3,280,449) 36.7% -14.8% -14.7% Net Income/{loss} (Before Depreciation) s (6,478,076) S ( ).;$~~3;;;. 9;;;42;,;.2;;;3;,;9_ Edwards Aquifer Authority Adopted Budget

12 EAHCP Revenues Operating revenue to fund the activities of the EAHCP arc primarily derived f) om a program AMF, which is assessed against all M&I pemlit holders based on the amount of groundwater withdrawal pel111its authorized for The program AMF is $42 per acre-foot for 2018, an increase of$2 per acre-foot from In addition to revenue collected through the assessment of program AMFs, the 2018 EAHCP Program budget includes pledged revenue from other entities. Seven organizations - tbe Guadalupe Blanco River Authority, Union Carbide, CPS Energy, the San Antonio River Authority, the Ci ty of Victoria, the Guadalupe Basin Coalition, and the Nueces River Authority - have pledged their intent to financially assist the EAA in the implementation of the EAHCP. Total revenue from these sources is budgeted at $736,000 in Total Revenues by Source 2018 Program AMF, $15,623,790,94.6% Other Revenue ~'OLorCE", $736,000, 4.5% Interest, $156,400, 0.9% EAHCP Expenses The 2018 EAHCP Fund budget totals $19 million, a 14.7% decrease from This budget will fund the conservation measures mentioned below. The Springflow Protection conservation measure accounts for about 72.3% of the EAHCP budget. A major component of this conservation measure is the Voluntary litigation Suspension Program Option (VIS PO), which is triggered when aquifer levels decline to a certain critical level. Based on current aquifer conditions, it is unlikely that suspension payments related to VISPO will be made in 2018, so the budget includes funding for VISPO standby payments in the amount of $2.3 million. The budget also includes funding to support the use of the San Antonio Water System's (SA WS) aquifer storage and recovery (ASR) project as another significant EAHCP Springflow Protection conservation measure. Under thi s program, the EAA acquires Edwards groundwater for the purpose of injecting into the ASR for storage and use during a drought of record. The budget includes $6.9 million for ASR lease payments and reimbursement of SAWS associated ASR operational costs. Another component of the Springflow conservation measure is the Regional Water Conservation Program. The budget includes $4.5 million for payment to SAWS ill support of a leak repair program that is estimated to conserve approximately 20,000 acre-feet over the term of the EAHCP. A significant portion of the EAHCP budget will fund various activities and work plans to be implemented by the signatories to the plan: the EAA, the City of New Braunfels, the City of San Marcos, the City of San Antonio through SAWS, and Texas State University during Edwards Aquifer Authority Adopted Budget

13 Expenses by HCP Measure 2018 Springflow Protection, $13,774,525,72.3% Program Ad i $1,179,750,6.2% Refugia, ~" ~L',O""./ 8.0% Due to founding, dollor omoun rs ond/orpefcenra~f may norrora/. Modeling & Research, $450,000, 2.4% San Marcos Springs, $1,218,630,6.4% Springs, $905,288, 4.8% EAHCP Reserves The 2018 budget assumes an EAHCP ending reserve balance of$28,754,069. Section 7.1 of the Habitat Conservation Plan anticipates a reserve cap of no more than $46 million. Summary In conclusion, I am confident that this budget for 2018 sufficiently provides for the EAA's strategic initiatives identified by the Board of Directors while demonstrating responsible fi scal stewardship on behalf of the EAA permit holders who largely fund our operation. I want to express my gratitude to EAA staff for its hard work in developing this budget and to the Board of Directors for its steadfast diligence to upholding fi scally sound and responsible standards of management practices at the EAA. If you have any questions, please call me at (210) , or Brock Curry, Deputy General Manager, at (210) RR:BJC/sh Edwards Aquifer Authority Adopted Budget

14 Board of Directors County/District No. Director Term Expires Bexar County District 1 Carol Patterson December 1, 2018 District 2 Byron Miller December 1, 2020 District 3 Rebekah Bustamante December 1, 2018 District 4 Ben Youngblood, Vice-Chairman December 1, 2020 District 5 Ron Ellis, Treasurer December 1, 2018 District 6 Deborah Carington December 1, 2018 District 7 Enrique Valdivia, Secretary December 1, 2018 Comal County District 8 Kathleen Tobin Krueger December 1, 2018 Comal & Guadalupe Counties District 9 Ron Walton, Sr. December 1, 2018 Hays County District 10 Patrick Stroka December 1, 2020 Hays & Caldwell Counties District 11 Amy Lea S. J. Akers December 1, 2018 Medina County District 12 Scott Yanta December 1, 2020 Medina & Atascosa Counties District 13 Luana Buckner, Chairman December 1, 2018 Uvalde County District 14 Don Laffere December 1, 2020 District 15 Rader Gilleland December 1, 2018 South Central Texas Water Advisory Committee Representative Gary Middleton December 1, 2020 Medina/Uvalde County Representative (appointed by Commissioner s Court) Clark Ward December 1, 2020 Edwards Aquifer Authority Adopted Budget

15 Format of the Budget Document This document is the annual budget for the Edwards Aquifer Authority, hereafter referred to as the EAA for the period January 1, 2018 through December 31, A budget is a formal plan of action for a specified period of time that is expressed in monetary terms. This document details the EAA plan for FY2018. The budget document is divided into seven sections: Introduction, Budget Overview, Financial Overview, Department Detail, Capital Budget/Plan, Strategic Plan and Appendices. The budget document is organized with the summary information at the beginning and the detailed information toward the back. Each section contains information related to the budget process and/or the approved budget. Budget Overview This section of the budget document begins with a profile of San Antonio, the largest metropolitan service area the EAA serves. Next is an outline of the budget process as well as a description of the various assumptions used and policies that affect the development of the budget. Financial Overview This section of the budget document includes a summary of the annual budget. Revenues are presented by source and expenses are detailed by category. Department Detail This section details the individual teams of the EAA. It includes an agency-wide organizational chart, detailed expense budget by teams/departments as well as their respective responsibilities. Additionally, personnel levels required to meet the needs of the EAA in the coming fiscal year are presented. Capital Budget/Plan This section details a description of the various capital projects planned for the next fiscal year. Strategic Plan This section includes the most current long-range plan for the EAA. Appendices This section includes a copy of the Strategic Plan, a copy of the authorizing resolution, and a glossary of terms used throughout this document. Edwards Aquifer Authority Adopted Budget

16 BUDGET OVERVIEW Edwards Aquifer Authority Adopted Budget

17 The Edwards Aquifer Authority Introduction The Edwards Aquifer Authority ( EAA ) was created in 1993 by the Texas Legislature s passage of the Edwards Aquifer Authority Act ( Act ) as a special regional water management agency in charge of managing the San Antonio segment of the Balcones Fault Zone Edwards Aquifer, more commonly referred to as the Edwards Aquifer. This jurisdictional area encompasses all or parts of eight counties including Uvalde, Medina, Atascosa, Bexar, Comal, Guadalupe, Hays and Caldwell counties. In all, the Edwards Aquifer is the primary source of water for approximately two million people living in south central Texas. Article 1, Section 1.01 of the Act identifies the Edwards Aquifer as: A unique and complex hydrological system, with diverse economic and social interests dependent on the aquifer for water supply. In keeping with that finding, the Edwards Aquifer is declared to be a distinctive natural resource in this state, a unique aquifer, and not an underground stream. To sustain these diverse interests and that natural resource, a special regional management district is required for the effective control of the resource to protect terrestrial and aquatic life, domestic and municipal water supplies, the operation of existing industries, and the economic development of the state. Use of water in the district for beneficial purposes requires that all reasonable measures be taken to be conservative in water use. Below is a map of the Edwards Aquifer Region. The Edwards Aquifer system is about 180 miles long from west to east and about 5 to 40 miles wide north to south. It lies under about 3,320 square miles of land across portions of 10 counties. However, the actual aquifer is just part of a complex hydrologic system that includes 17 counties and about 8,760 square miles. The system consists of three segments: the drainage area, the recharge zone, and the artesian zone. Edwards Aquifer Authority Adopted Budget

18 Segments of the Edwards Aquifer In the Drainage Area, rainfall soaks into the rock to form a large water table aquifer in the Edwards Plateau. Water then flows from the edge of the Edwards Plateau to form spring-fed streams. The streams flow downhill to the recharge zone. In the Recharge Zone, Edwards Limestone is exposed on the land surface. Water from the streams and rivers, as well as from rainfall, flows into the limestone s fractures and faults, caves and sinkholes. The water sinks into the ground where it flows to the artesian zone. In the Artesian Zone, water flows underground generally from west to east through the Edwards Limestone. Within the limestone exists an intricate network of interconnected voids that vary in size from microscopic up to several feet in diameter. These voids are filled with water that is under artesian pressure. When there is enough pressure, some of the water is forced to the surface through faults and fractures to form natural artesian springs. The amount of water that flows into the Edwards Aquifer each year depends on rainfall amounts. From 1934 to 2016, the average amount of recharge was 706,499 acre-feet per year. However, the actual amount of recharge to the aquifer can vary greatly from year to year. Water use today The Edwards Aquifer, through springs and wells, provides water for people in cities and on farms. The chart below shows the different ways the aquifer is used. Together, spring flow, municipal, industrial and irrigation uses account for approximately 100 percent of the water discharged from the Edwards Aquifer. Edwards Aquifer Authority Adopted Budget

19 Life in the aquifer Besides supplying water for people, the aquifer is home to many different species. Organisms that live underground in the aquifer include invertebrates such as flatworms, snails, and a variety of crustaceans including shrimp, amphipods, copepods, ostracods and isopods as well as vertebrates such as salamanders and fish. Many species, ranging from invertebrates, fish, salamanders, turtles, to plants also live in the springs and rivers that depend on the aquifer for their water flow. Eight species that live within the Edwards Aquifer ecosystem have been designated as either threatened or endangered by the United States Fish and Wildlife Service. A species receives this designation because its habitat is limited and in danger of decline or deterioration, or the species is in danger of declining populations. On March 18, 2013, the United States Fish & Wildlife Service issued an Incidental Take Permit (ITP) for the use of the Edwards Aquifer and associated spring systems. The ITP is supported by the Edwards Aquifer Habitat Conservation Plan (EAHCP) and will expire in March Along with the other Permittees, the EAA began full implementation of the EAHCP in 2013 which consists of a number of measures designed to maintain minimum springflows at Comal Springs and San Marcos Springs, improving conditions at those springs, and providing for artificial refugia in the event conditions warrant the removal of endangered species from their natural habitat. The EAA manages the EAHCP budget and all financial transactions separately from the EAA General Operations Fund. The future of the Edwards Aquifer The Edwards Aquifer has provided clean, fresh water for thousands of years. However, as the region has developed and grown so has the demand for water, as well as the risk for the aquifer to become polluted. In 1940, about 200,000 people depended on the water from the aquifer. According to the 2010 U.S. Census, that number grew to approximately 2 million people - 10 times the number of people in 1940 and the population is continuing to grow. By 2030, the population for the Edwards region is expected to reach 2.6 million. 3,000,000 2,500,000 2,000,000 1,500,000 1,000, ,000 0 Population growth (Estimate) Today, the amount of groundwater that can be withdrawn from the aquifer is limited by the Act. In 1999, the EAA began a permit program to manage the amount of water that can be pumped from the aquifer. By 2005, records show that the region s pumpers withdrew 14.5% less water from the aquifer than they did in 1999, even though the region s population increased 12%, from 1.6 million to 1.8 million. Under the EAA s management, groundwater is being used more carefully and wisely, benefiting the entire region. To meet Edwards Aquifer Authority Adopted Budget

20 the future needs of the region, water suppliers are looking for and relying on alternative resources to decrease dependence on the Edwards Aquifer. San Antonio Profile The following pages contain selected economic, social, housing and demographic characteristics for the City of San Antonio, the largest metropolitan area served by the Edwards Aquifer Authority. Statistics were provided through the Texas Workforce Commission and U.S. Census Bureau websites with the most current data available. As of December 2017, the projected unemployment rate for San Antonio is 3.0%, which is below the unemployment rate of 3.7% for the State and below the national rate of 3.9%. *Source: Labor Market and Career Information Department, Texas Workforce Commission The San Antonio economy is predominately based on the following sectors: trade, transportation & utilities; government; education/health services; tourism; and business/financial services. By far, the largest employer in the area is the Military, currently employing about 77,659 direct personnel, including civilianrelated employment. Active military installations include Randolph Air Force base and Fort Sam Houston, as well as Brooks City-Base (formerly Brooks Air Force Base). Government Other Services Leisure & Hospitality Education & Health Services Professional & Business Services Financial Activities Information Trade, Transportation & Utilities Manufacturing Construction Mining & Logging Employment by Major Industry* (in thousands) Edwards Aquifer Authority Adopted Budget

21 *Source: Labor Market and Career Information Department, Texas Workforce Commission The gender, race and age compositions of the San Antonio MSA are presented below, as well as household income, presented in 2016 inflation adjusted dollars. Ge nde r Compo.ition' (lobi Population) Roce Compo.ition' (lotal Population) A&e Composition' (lotol Population), '00 ' 00, ;00 '00.00 ;00 ; 00 " Und... 5 ",,0" 5 to ""." 35 to 54 ""." 55 to 64 ""." over65 vea" H"","l>old In(ome and I\e""m,' lin 2016 infl.tion-odju,te d doll.,,) Ie.. thon $14,999 $15,000 to $14,999 $~u,wu 10 $/4,""~ $75,000 ond 0"'" I I I I " 50, , , ,000 *Source: U.S. Census Bureau Edwards Aquifer Authority Adopted Budget

22 Governance The EAA is a political subdivision of the State of Texas and is governed by a 17-member board of directors. Fifteen of the directors are elected by popular vote from single-member user districts and two are appointed one on an alternating basis by the commissioners courts of Medina and Uvalde counties, and the other by the South Central Texas Water Advisory Committee (SCTWAC). SCTWAC advises the EAA Board of Directors on downstream water rights and issues. At least one representative from each county helps the EAA manage the aquifer. Directors represent agricultural, industrial, domestic, municipal, spring and downstream user groups Budget Assumptions This budget will provide funding for the EAA programs that support our mission to manage, enhance and protect the Edwards Aquifer as directed by the Texas Legislature through the EAA Act. The main underlying plan is the prioritization of the importance of people, practical programming and effective processes to achieve the goals set forth in the strategic plan. The assumptions listed below were used in the development of the approved 2018 budget: Two programmatic areas supported: General Operations Fund and an EACHP Fund Maintain a stable, unchanged total combined fee amount charged to permit holders No debt incurred to meet the 2018 operating budget obligations o The current general operations reserve balance is available to cover unanticipated expenditures not currently budgeted without the need to incur debt. Capital Budget notable expenditures include: o Software Development/Database management system Year 3 of a multi-year project developing a system that supports the organizations regulatory and scientific goals o o o Remote Monitoring and Gauging and Telemetry equipment (replacement) Water Sampling and Monitoring Equipment Replacement and expansion of network monitoring devices to provide data collection for modeling and understanding how the aquifer works Two vehicles (two replacement) in support of increased site visits related to recently amended water quality rules and easement monitoring Three new staff positions (3 full-time positions) Funding for staff cost of living/merit increases is budgeted at an average of 5% per employee The EAA accounts for its operations using the enterprise fund system. Enterprise funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs of providing goods or services to the general public on a continuous basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. As an enterprise fund, the budget is prepared on a full accrual basis of accounting. That is, expenses are recognized when incurred and revenues are recognized when earned. The Comprehensive Annual Financial Report (CAFR) is developed in accordance with generally accepted accounting principles (GAAP) using the accrual basis of accounting as well. A Glossary is included as Appendix D in this document which provides definitions of various terms used throughout the budget document. Edwards Aquifer Authority Adopted Budget

23 Budget Process The EAA is required to adopt an annual budget before the commencement of a new fiscal year. The fiscal year for the EAA begins on January 1 st and ends on the following December 31 st. This year, the Board adopted the 2018 budget on November 14, The EAA s planning and budget development schedule is generally a seven-month process. May June July September October November -Development of the 5-year financial plan template for input -Meet with General Manager and executive staff -Finalizing 5-year plan for review/consideration at Board Retreat -Development of the next year budget, using 5-year plan as stepping stone -Meet with General Manager to discuss proposed budget -Preparation of proposed budget -Board review of proposed budget -Budget available to the public -Public hearings on annual budget -Approval of annual budget Below is a graphical depiction of how the EAA s budget process flows over its seven-month development and approval period. Goal setting Formulation of 5-Year Plan Formulation of department budgets Review of proposed budget by General Manager Board review of proposed budget Public notice and public hearings Final Board review and adoption Monthly budget review and Amendments (as necessary) Goal Setting The EAA s budget process involves the Board of Directors, management and the public and begins with the Board s establishing goals for the EAA that drive the five-year strategic planning process. Each year, consultants and EAA staff review the strategic goals of the EAA. These goals are reviewed for attainment, evaluated and adjusted according to Board input, including legislative changes, if applicable. The strategic plan for is included as Appendix A in this document. Formulation of 5-Year Plan Consistent with the goals of the EAA, executive staff establishes a long-term plan to support the goals of the strategic and operational plan. The budget planning process begins with the development of the Financial Plan ( Plan ) in May, whereby the Department Directors and Executive Directors identify programmatic spending priorities for the next five fiscal years with an emphasis on expenditures for the coming fiscal year. This Plan becomes the primary planning document for the General Manager s Proposed Budget. Edwards Aquifer Authority Adopted Budget

24 Formulation of the Departmental Budget Using the 5-Year Plan as a precursor for the upcoming budget year, executive staff further refines department budgets that are sufficient to support the goals as stated in the strategic plan. Detailed department budgets can be found in the detail section of this document. Expenses and capital purchases are budgeted annually. Once the budget information is developed, Accounting staff compiles the information electronically and consolidates the department budgets into an overall EAA budget. General Manager Review The preliminary operating budget is compiled and submitted to the General Manager for review. During this process, the budget is reviewed at the individual department s line item detail level and non-routine expenditures, estimates, capital purchase requests, as well as staffing increases are all considered for reasonableness and necessity. The proposed budget is also reviewed from the aspect of making sure it is in sync with the overall goals set forth in the Strategic Plan. The proposed budget is then drafted and presented to the Board for their consideration. Board review of Proposed Budget The proposed budget is presented to the Board for review for comments and revisions (if necessary). Highlights of the proposed budget are discussed including new initiatives, staffing increases and agency programs. The Board then directs staff to make the proposed budget available to the public for comment. Public Notice and Public Hearings The proposed budget is made available to the public through public notices initiating a public review and comment period. Public hearings are held throughout the EAA s jurisdictional area where feedback and input from the public is documented and shared with the Board. Final Board Review and Adoption The Board reviews the final budget and recommends the budget be adopted as presented or with changes recommended by the public, EAA staff, or the Board itself. The Board Resolution and Order adopting the budget is included in Appendix B in this document. According to the EAA s bylaws, each annual budget adopted by the Board shall set forth: 1. Estimates of the amount of funds available from all sources for expenditure by the EAA during the next fiscal year; and 2. Allocations of the amount of funds that may be expended during the forthcoming fiscal year. Such allocations shall vest with the General Manager s full authority, without further authorization of the Board, to expend funds of the EAA in amounts up to, but not exceeding, the amounts specifically allocated for such purposes in the annual budget, except as otherwise noted in the Bylaws. Budget Review and Amendment Process During the fiscal year, the General Manager submits monthly operating statements to the Board showing the status of allocations and expenditures. The expenditures of the EAA are charged against funds allocated for the purpose for which such expenditures are made in accordance with generally accepted accounting principles (GAAP). The EAA may not have expenses in excess of the total budgeted expenses for a fiscal year unless the Board amends the budget. The annual budget may be amended or revised after its adoption at any meeting of the Edwards Aquifer Authority Adopted Budget

25 Board. However, the General Manager may transfer funds as needed between budgeted accounts according to the following provisions of the EAA s Bylaws: 1. The General Manager may not increase total budgeted expenses. 2. Transfers must be within the General Manager s signature authority ($50,000); 3. Transfers will be reported to the Finance/Administrative Committee quarterly (at a minimum). Administrative transfers are reported as part of staff s monthly presentation of EAA financial statements to the Financial/Administrative Committee and Board. Financial Policies The following financial policies provide information relevant to the fiscal operation of the EAA. The purpose of the policies is to provide guidelines for operational and strategic decision making. The policies are reviewed as needed and updated to reflect changes in generally accepted accounting principles, operational requirements and Board direction, where applicable. Funds Net position is the excess amount of assets over liabilities (or Fund Equity). An adequate balance is necessary to ensure funds are available to provide cash for both current and future needs. Funds which are constrained by local or state laws or contractual obligations are categorized as Restricted Net Position. Unrestricted Net Position include funds which have been set aside by the Board for purposes deemed to be prudent, but not legally required. The General Operations Fund is categorized as Unrestricted because the funds derived from the aquifer management fee are not contractually obligated or legally required to be used for a specific purpose, but rather for purposes deemed prudent by the Board. As such, Unrestricted Net Position includes amounts set aside to provide financial resources to protect the EAA against revenue shortfalls or unpredicted one-time expenditures; assistance for qualified owners of abandoned Edwards Aquifer wells to bring wells into compliance with EAA rules and state law; conservation grants and programs; and funding for mitigation expenses related to implementation of the EAHCP. The EAHCP Fund is categorized as Restricted because the funds derived from the program aquifer management fee are contractually obligated to fulfill the requirements set forth in the EAHCP Plan. As noted earlier, the EAHCP Plan was filed with FWS as part of the ITP. Therefore, Net Position related to the EACHP Fund are Restricted and reported separately. Investment Policy The EAA recognizes that an effective investment policy is an essential element of sound fiscal management. The EAA s investment policy is reviewed and approved annually by the Board of Directors as required by the Public Funds Investment Act of the State of Texas as well as the EAA Bylaws. The investment policy outlines the primary objectives, in order of priority, as follows: 1. Preservation and safety of principal 2. Liquidity 3. Investment diversification 4. Reasonable yield 5. Appropriate maturity dates 6. The enhanced quality and capability of investment management Edwards Aquifer Authority Adopted Budget

26 The policy delegates responsibility for oversight of the program, defines the standard of prudence to be exercised in managing the portfolio by the investment officers, outlines the investment strategy, provides for the formulation of a system of internal controls, and defines the investments that are considered allowable under the policy and the parameters for diversification. Quarterly reports of the performance of the portfolio are provided to the Board of Directors. Debt Policies The EAA issued a 20-year general improvement revenue note in the amount of $3,370,000 for the sole purpose of funding the building consolidation project. Construction began in 2011 and completed in January A total of $194,994 in debt service payments of principal and interest of $80,000 and $114,994, respectively, has been appropriated for The EAA will repay the note over a period of time that does not exceed the useful life of the asset. Appendix C in this document includes the amortization schedule for the life of the note; a graphical representation of the remaining principal and interest payments is as follows: The EAA will not use proceeds from the note issuance to fund current operations. Furthermore, the EAA does not foresee any need to acquire additional financing for activities in the near term, including As discussed in various sections of this document, the EAA s unrestricted fund balance will be utilized, if needed, for unpredicted one-time expenditures, etc. The projected balance for 2018 is deemed to be sufficient and there is no need to search for outside sources of funding. Moreover, each year the Board reviews the 5-year plan expenditure requirements and assesses the need to adjust aquifer management fee rate in order to self-fund or to acquire debt in order to meet the needs. Each of these options would be vetted and approved by the Board through the budget adoption process or separate action. The EAA does not have any legal debt limit; however, it may not levy a property tax. According to the Act: The Authority may issue revenue bonds to finance the purchase of land or the purchase, construction, or installation of facilities or equipment. The Authority may not allow for any person to construct, acquire, or own facilities for transporting groundwater out of Uvalde County or Medina County. Bonds issued by the Authority are subject to review and approval of the attorney general and the commission. If the attorney general finds that the bonds have been authorized in accordance with the law, the attorney general shall approve them, and the comptroller of public accounts shall register the bonds. Following approval and registration, the bonds are incontestable and are binding obligations according to their terms. The Authority board may organize proceeds of the bonds into funds and accounts and may invest the proceeds as the Authority board determines is appropriate. Edwards Aquifer Authority Adopted Budget

27 Revenue Policy It is the goal of the EAA to maintain a diversified and stable revenue system to shelter it from unforeseen short-run fluctuations in any one-revenue source. Objective, annual estimates will be made for all revenue sources for the next five years to be updated annually. One-time revenues, identified under any budget cycle may be considered for one-time capital purchases or funding reserves, but will never be used to maintain or establish recurring expenditures. Through the budget adoption process, the Board approves any changes in the fee rates or one-time assessments. Procurement It is the policy of the EAA to secure the highest quality goods and services with its limited resources. It is also the policy of the EAA to award contracts to the responsible bidder that, in the EAA s judgment, will be most advantageous to the EAA. The EAA Act calls for a good faith effort to award 20% of total annual contract amounts to minority-owned and women-owned businesses. The EAA Bylaws increased this goal to 30%. The General Manager is authorized to develop procurement procedures to ensure that staff conducts all procurement activity in accordance with applicable laws, as well as the EAA Bylaws. Procurement and accounting staff ensure that the procedures are applied and followed in soliciting, purchasing, contractual agreements, requisition and purchase order processes. Balancing the Budget A balanced budget is defined by the EAA as a budget in which expenses are projected such that they are less than, or equal to, the amount of revenues projected. The EAA is committed to balancing its annual budget and strives to reach this goal during the annual budget process. The EAA also considers the reserve balance to be a factor in the balanced budget concept when considering the budgeted expenses for a given year and the effort to maintain a reasonable and stable aquifer management fee structure. The EAA s goal is to maintain a minimum undesignated reserve balance of 15% of budgeted expenses in reserve for any given fiscal year. The 2018 projected year-end operating reserve balance for the EAA General Operations Fund is expected to be $1,858,182, of which $1,467,167 is undesignated reserve and equals approximately 8.3% of the annual operating budget. As discussed previously with the Board, this reserve will fluctuate from budget to budget and in years where there is excess, those funds may be carried over from one budget year to another as a reserve for maintaining stability in the Aquifer Management Fee rate. Furthermore, this budget designates reserve funds in the full amount expected to be paid out over the next year consistent with Board-approved memoranda of understanding between the EAA, City of San Marcos, Texas State University, and New Braunfels Utilities. The operating reserve is evaluated each year and, based on future anticipated needs, may move closer to the 15% goal. It should be noted, however, that even within a particular year this reserve will fluctuate as actual revenues and expenses vary. As previously mentioned in this document, each year the Board reviews the 5-year plan expenditure requirements and assesses the need to adjust the aquifer management fee rate in order to self-fund or to acquire debt in order to meet the needs. Each of these options would be vetted and approved by the Board through the budget adoption process or separate action. The EACHP must ensure that adequate funds are available for implementation of the EACHP and accumulation of reserves up to a Fund Balance Cap of $46 million dollars, as established in the EAHCP Plan. The projected year-end reserve balance for the EAA Habitat Conservation Plan Fund is expected to be $28,739,069. Capital Assets/Inventory Capital Assets include equipment, computers furniture and vehicles that meet the EAA s capitalization threshold of $1,000 and have a useful life of more than one year. All items are tagged with an identification number when purchased and entered into an asset management system. The responsibility for maintaining capital assets is assigned either to an individual or a department. Asset inventory is conducted every other year, while transfers/retirements are monitored routinely. Edwards Aquifer Authority Adopted Budget

28 FINANCIAL OVERVIEW Edwards Aquifer Authority Adopted Budget

29 SUMMARY OVERVIEW This budget provides funding for Edwards Aquifer Authority (EAA) programs that support our mission to manage, enhance, and protect the Edwards Aquifer, including the full implementation of the Edwards Aquifer Habitat Conservation Plan (EAHCP). Accordingly, this budget supports two major programmatic areas: a General Fund, supported by revenues generated through the assessment of a general aquifer management fee of $42 per acre-foot; and an EAHCP Fund, supported by revenues generated through the assessment of a $42 per acre-foot program aquifer management fee. Combined, this $36.6 million comprehensive budget is funded by a combined aquifer management fee of $84 per acre-foot, which remains unchanged since The below diagram reflects the EAA Fund Structure: Edwards Aquifer Authority General Operations Fund Habitat Conservation Plan Fund Abandoned Well Closure Assistance Fund Conservation / Aquifer Protection Fund The following schedules provide a 2018 combined budget summary of both programmatic areas, projected fund balance review, as well as, an individual narrative and summary schedule for each of the program areas. Edwards Aquifer Authority Adopted Budget

30 Edwards Aquifer Authority 2018 Adopted Operating Budget Fund Summary: General and Habitat Conservation Plan GENERAL EAHCP TOTAL Aquifer Management Fees, per Acre-Foot: Non-Agricultural (AMF/Program AMF) $ $ $ Agricultural $ 2.00 $ - $ 2.00 REVENUES Interest $ 13,500 $ 156,400 $ 169,900 Aquifer Management Fees 15,623,790-15,623,790 Program Aquifer Management Fees - 15,623,790 15,623,790 Aquifer Management Fee (Agricultural) 145, ,000 Miscellaneous 15, , ,000 Subtotal Revenues 15,797,290 16,516,190 32,313,480 EXPENSES Salaries & Wages 7,423, ,503 7,953,809 Employee Benefits 2,424, ,248 2,604,226 Professional Technical Services 4,413,679 18,241,801 22,655,480 Property Services 1,114,105 1,515 1,115,620 Other Services 720,818 36, ,378 Supplies 468,428 21, ,828 Other Expenses 314, ,994 Capital 708,607 41, ,607 Subtotal Expenses 17,588,915 19,052,027 36,640,942 Net Income (Loss) Before Depreciation ($1,791,625) ($2,535,837) ($4,327,462) Edwards Aquifer Authority Adopted Budget

31 Edwards Aquifer Authority Projected Fund Balance * 2018 GENERAL EAHCP TOTAL AMF/Program AMF, per Acre-Foot: $ $ $ REVENUES Interest $ 13,500 $ 156,400 $ 169,900 Aquifer Management Fees 15,623,790-15,623,790 Program Aquifer Management Fees - 15,623,790 15,623,790 Aquifer Management Fee (Agricultural) 145, ,000 Miscellaneous 15, , ,000 Subtotal Revenues 15,797,290 16,516,190 32,313,480 EXPENSES Salaries & Wages 7,423, ,503 7,953,809 Employee Benefits 2,424, ,248 2,604,226 Professional Technical Services 4,413,679 18,241,801 22,655,480 Property Services 1,114,105 1,515 1,115,620 Other Services 720,818 36, ,378 Supplies 468,428 21, ,828 Other Expenses 314, ,994 Capital 708,607 41, ,607 Depreciation 950,000 15, ,000 Subtotal Expenses 18,538,915 19,067,027 37,605,942 Net Income (Loss) $ (2,741,625) $ (2,550,837) $ (5,292,462) Projected Fund Balance, January 1, 2018 $ 14,635,439 $ 31,289,906 $ 45,925,345 Projected Fund Balance, December 31, 2018 $ 11,893,814 $ 28,739,069 $ 40,632,883 Millions $60 $50 $40 $30 $20 $10 $0 Fund Balance * Actual 2015 Actual 2016 Actual 2017 Projected 2018 Budget General Operations EAHCP * Fund Balance is defined as the excess amount of assets over liabilities (Net Assets). Edwards Aquifer Authority Adopted Budget

32 Edwards Aquifer Authority Projected Composition of Fund Balance (Net Position) 2018 Projected Net Position, Beginning of Year $ 45,925,345 Net Income/(Loss) before Depreciation $ (4,327,462) Depreciation (965,000) Net Income/(Loss) after Depreciation $ (5,292,462) Projected Net Position, End of Year $ 40,632, Net Position Net Investment in Capital Assets $ 11,412,538 $ 10,872,369 $ 11,094,409 $ 10,985,633 $ 10,785,240 Restricted Net Position 35,041,221 35,241,467 35,512,979 31,289,906 28,739,069 Unrestricted Net Position 5,048,903 2,979,435 3,403,909 3,649,806 1,108,574 Total Net Position $ 51,502,662 $ 49,093,271 $ 50,011,297 $ 45,925,345 $ 40,632,883 Millions $60 $50 $40 $30 $20 $10 $0 Composition of Net Position Actual 2015 Actual 2016 Actual 2017 Projected 2018 Budget Net Investment in Capital Assets Restricted Net Position Unrestricted Net Position The "Restricted Net Position" in this schedule is solely related to the EACHP. Edwards Aquifer Authority Adopted Budget

33 GENERAL OPERATING FUND Revenue Summary Funding for Edwards Aquifer Authority (EAA) General Fund program comes primarily from an aquifer management fee assessed on permitted agricultural and non-agricultural users of Edwards Aquifer groundwater. The 2018 aquifer management fee for non-agricultural (M&I) users, assessed on the total groundwater authorized for use in 2018, decreased from the 2017 rate of $44 per acre-foot to $42. Revenue derived from the non-agricultural aquifer management fees represent 98.9% of the total budgeted EAA General Fund revenue for Fees for agricultural users are charged on groundwater actually used during the preceding year. The Edwards Aquifer Authority Act limits the agricultural fee rate to $2 per acre-foot. Agricultural fee revenue represents less than 1% of total EAA General Fund revenue. Below is a summary of the budget and rate trends since Miscellaneous funding sources account for the remaining.2% of EAA budget General Fund revenue in Revenue in this category includes interest earnings and delinquent property tax collections. Edwards Aquifer Authority Adopted Budget

34 Figure 1 shows how the various revenue sources make up the EAA s total revenue for FIGURE General Fund Revenue (by Source) Expense Summary The EAA General Fund expenses are classified by major category. These categories include: salaries and wages, employee benefits, professional technical services, property services, supplies, other services, and other expenses, which total $17.6 million for Salaries and Wages total $7.4 million and includes wages paid to employees at bi-weekly intervals and include overtime as well as sick leave, holiday pay, personal leave and other paid absences. Salaries and Wages account for 42.2% of the total budgeted operating expenses. Employee Benefits total $2.4 million and include items such as employer contributions to retirement, FICA, and insurance premiums. Employee benefits account for 13.8% of the budgeted operating expenses. Professional Technical Services total $4.4 million and include services such as consultation, analysis, evaluation, planning, or recommendation, and result in the production of a report or the completion of a task. Professional Technical Services account for 25.1% of the total budgeted operating expenses. Property Services total $1.1 million and include items such as utilities and maintenance. Property Services account for 6.3% of the total budgeted operating expenses. Other Services total $0.7 million and include items such as printing, telecommunications, notices and training. Other Services account for 4.1% of the total budgeted operating expenses. Supplies total $0.5 million and include such items as fuel, postage, and promotional/educational items. Supplies account for 2.7% of the total budgeted operating expenses. Other Expenses total $0.3 million and include items such as conservation grants and debt interest payments. Other Expenses account for 1.8% of the total budgeted operating expenses. Capital and debt service (principal) total $.7 million or 4.0%, of total budgeted operating expenses. Figure 2 shows the major expense categories of the EAA s total General Fund expenses for Edwards Aquifer Authority Adopted Budget

35 FIGURE General Fund Expenses (by Major Category) Salaries & Wages, $7,423,306,4L.,,,,," Employee Benefits, 13.8% Capital & Debt Service, $708, % $314,994, 1.8% Du~ 10 roondlng, dollo, omoon/sond/or prrc~nloges moy ~Ol 101ai.,"- Otlhe, Services, $720,818,4.1% Property Services, $1,114,105, 6.3% Technical Services, $4,413,679, 25.1% Edwards Aquifer Authority Adopted Budget

36 Edwards Aquifer Authority 2018 Adopted Operating Budget Fund Summary: General Actual Amended Estimated Adopted Aquifer Management Fees, per Acre-Foot: Non-Agricultural $ $ $ $ Agricultural $ 2.00 $ 2.00 $ 2.00 $ 2.00 REVENUES Interest $ 30,529 $ 10,000 $ 12,700 $ 13,500 Aquifer Management Fees 15,110,859 16,553,240 16,473,688 15,623,790 Aquifer Management Fee (Agricultural) 113, , , ,000 Grant Revenue 107, ,500 - Miscellaneous 33,077 14,400 14,400 15,000 Subtotal Revenues 15,287,940 16,830,140 16,753,288 15,797,290 EXPENSES Salaries & Wages 6,257,535 7,033,281 7,033,281 7,423,306 Employee Benefits 1,933,878 2,301,020 2,301,020 2,424,978 Professional Technical Services 3,778,461 3,919,500 3,919,500 4,413,679 Property Services 640, , ,370 1,114,105 Other Services 442, , , ,818 Supplies 363, , , ,428 Other Expenses 1,243, , , ,994 Capital 545, , , ,607 Subtotal Expenses 15,204,735 16,671,390 16,507,391 17,588,915 Net Income (Loss) Before Depreciation $83,205 $158,750 $245,897 ($1,791,625) Edwards Aquifer Authority Adopted Budget

37 EDWARDS AQUIFER AUTHORITY HABITAT CONVERSATION PLAN (EAHCP) FUND Revenue Summary Operating revenue to fund the activities of the EAHCP is primarily derived from a program aquifer management fee assessed on non-agricultural permit holders based on the amount of groundwater rights authorized for The 2018 EAHCP program aquifer management fee rate is $42 per acre-foot, an increase of $2 per acre-foot from As mentioned previously, the EAA was able to maintain the total fee rate of $84 per acre-foot (when combined with the $42 per acre-foot rate discussed as part of the General Fund earlier). In addition to revenue collected through the assessment of program aquifer management fees, the 2018 EAHCP Program budget includes pledged revenue from other entities. Seven organizations -- Guadalupe Blanco River Authority, Union Carbide, City Public Service Energy, San Antonio River Authority, City of Victoria, Guadalupe Basin Coalition, and the Nueces River Authority -- have pledged their intent to financially assist the EAA in the implementation of the EAHCP. Total revenue from these sources is budgeted at $736,000 in Below is a summary of the budget and rate trends since 2012 when the EAA began assessing program aquifer management fees. Edwards Aquifer Authority Adopted Budget

38 Figure 3 shows how the various revenue sources make up the EAHCP s total revenue for FIGURE EAHCP Revenue (by Source) Program AMF, $15,623,790, 94.6% Other Revenue Sources, $736,000, 4.5% Interest, $156,400, 0.9% Expense Summary The 2018 budget includes $19 million, to fund the conservation measures mentioned below and to continue building a cash reserve to fund certain activities in future years as aquifer conditions may warrant. Among these conservation measures is the Voluntary Irrigation Suspension Program Option (VISPO), a major component of the EAHCP that is triggered when aquifer levels decline to a certain critical level. Similarly, the budget includes funding to support the use of the San Antonio Water System s aquifer storage and recovery (ASR) project as an EAHCP conservation measure that involves the acquisition and injection of Edwards groundwater into the ASR for use during a drought of record. A significant portion of the EAHCP budget will fund various activities and work plans to be implemented by the signatories to the plan: the EAA, the City of New Braunfels, the City of San Marcos, the City of San Antonio through San Antonio Water System, and Texas State University for year Figure 4 shows a breakdown by measure/activity for Edwards Aquifer Authority Adopted Budget

39 FIGURE EAHCP Fund Expenses (by Measure) Springflow Protection, $13,774,525, 72.3% Program Administration, $1,179,750, 6.2% Refugia, $1,523,834, 8.0% Modeling & Research, $450,000, 2.4% San Marcos Springs, $1,218,630, 6.4% Comal Springs, $905,288, 4.8% Edwards Aquifer Authority Adopted Budget

40 Edwards Aquifer Authority 2018 Adopted Operating Budget Fund Summary: Habitat Conservation Plan Actual Amended Estimated Adopted Aquifer Management Fees, per Acre-Foot: Non-Agricultural $ $ $ $ REVENUES Interest $ 154,044 $ 70,000 $ 188,600 $ 156,400 Program Aquifer Management Fees 16,564,660 15,048,400 14,976,080 15,623,790 Miscellaneous 736, , , ,000 Subtotal Revenues 17,454,704 15,854,400 15,900,680 16,516,190 EXPENSES Salaries & Wages 460, , , ,503 Employee Benefits 150, , , ,248 Professional Technical Services 16,478,231 21,569,071 21,569,071 18,241,801 Property Services 790 1,515 1,515 1,515 Other Services 30,592 38,250 38,250 36,560 Supplies 6,680 10,500 10,500 21,400 Other Expenses 37, Capital 607,605 30,000 30,000 41,000 Subtotal Expenses 17,773,351 22,332,476 22,332,476 19,052,027 Net Income (Loss) Before Depreciation ($318,647) ($6,478,076) ($6,431,796) ($2,535,837) Edwards Aquifer Authority Adopted Budget

41 DEPARTMENT DETAIL Edwards Aquifer Authority Adopted Budget

42 The Edwards Aquifer Authority (EAA) is structured into six (6) functional divisions: Executive Office, Administration and Financial Services; Aquifer Management Services; External & Regulatory Affairs; Communications & Development and Threatened & Endangered Species Services. Below is a graphical depiction of the EAA s organizational structure. EAA Organizational Chart Board of Directors Executive Position Count: 3 Administration & Financial Services Position Count: 25 Aquifer Management Services Position Count: 33 External & Regulatory Affairs Position Count: 24 Communications & Development Position Count 6 Threatened & Endangered Species Services Position Count 9 The following pages depict the 2018 narratives, budget and organizational chart applicable to each of these divisions representing the operations of the EAA. Edwards Aquifer Authority Adopted Budget

43 Personnel Schedule The 2018 Budget includes three (3) new full-time positions. In 2017, a new Division (Communications & Development) was created in order to provide a strategic approach across all EAA operations. The 2017 data below has been revised to reflect this change Budget 2016 Budget 2017 Budget 2018 Budget Full-Time Employees Executive Administration and Financial Services Aquifer Management Services External & Regulatory Affairs Communications & Development Threatened & Endangered Species Services Subtotal Part-Time Employees Executive Administration and Financial Services Aquifer Management Services External & Regulatory Affairs Communications & Development Threatened & Endangered Species Services Subtotal Total Employees Executive Administration and Financial Services Aquifer Management Services External & Regulatory Affairs Communications & Development Threatened & Endangered Species Services Total Budget 2016 Budget 2017 Budget 2018 Budget Executive Administration and Financial Services Aquifer Management Services External & Regulatory Affairs Communications & Development Threatened & Endangered Species Services Edwards Aquifer Authority Adopted Budget

44 Edwards Aquifer Authority 2018 Adopted Operating Budget Program Summary - General Fund Actual Amended Estimated Adopted Expenses Budget Expenses Budget Executive Executive - General $ 874,455 $ 949,720 $ 949,720 $ 800,723 Board of Directors 111, , , ,500 Legal Services 1,353, , , ,000 Total - Executive $ 2,339,473 $ 1,989,220 $ 1,989,220 $ 1,815,223 Administration & Financial Services AFS - General $ 1,956,737 $ 2,210,582 $ 2,210,582 $ 2,477,317 Accounting 275, , , ,226 Authority Operations 1,523, , , ,712 Human Resources 175, , , ,668 Information Technology 395, , , ,342 Procurement & M/WBE 40, , ,075 87,850 Records Management 39,091 28,500 28,500 23,100 Total - Administration & Financial Services $ 4,406,440 $ 4,414,769 $ 4,425,770 $ 4,520,215 Aquifer Management Services AMS - General $ 3,086,361 $ 3,324,475 $ 3,324,475 $ 3,600,441 Abandoned Well Closure - 210, , ,000 Aquifer Protection 35,002 (103,500) (103,500) (97,000) Aquifer Science Research 1,022,656 1,154,300 1,154,300 1,156,200 Groundwater Protection 190, , , ,625 Karst Initiatives ,750 Modeling & Data Management 205, , , ,200 Range Management 22,260 58,000 58,000 58,000 Recharge Enhancement 135, , , ,000 Remote Gauging 19,444 67,152 67, ,592 Total - Aquifer Management Services $ 4,717,103 $ 5,702,166 $ 5,527,166 $ 6,222,808 External & Regulatory Affairs ERA - General $ 2,316,972 $ 2,960,324 $ 2,960,324 $ 2,468,506 Elections ,000 Intergovernmental Relations 533, , , ,416 Meters 170, , , ,100 Regulatory Affairs & Water Resources $ 211,115 $ 317,350 $ 317,350 $ 307,850 Total - External & Regulatory Affairs $ 3,231,868 $ 4,065,435 $ 4,065,435 $ 3,935,872 Communications & Development CD - General $ - $ - $ - $ 597,497 Public Information 379, , , ,000 School Education 130, , , ,300 Total - Community & Development $ 509,853 $ 499,800 $ 499,800 $ 1,094,797 Total - General Fund $ 15,204,735 $ 16,671,390 $ 16,507,391 $ 17,588,915 Edwards Aquifer Authority Adopted Budget

45 EXECUTIVE Edwards Aquifer Authority Adopted Budget

46 EXECUTIVE Roland Ruiz General Manager Brock Curry Deputy General Manager Sandy Haglund Executive Assistant Edwards Aquifer Authority Adopted Budget

47 EXECUTIVE The Edwards Aquifer Authority (the EAA ) is governed by a 17-member board of directors. Fifteen of these directors are voting members, elected from single-member districts. One director is appointed by the South Central Texas Water Advisory Committee (SCTWAC) and one is appointed on a four-year rotating cycle from Medina and Uvalde counties. The Executive Office consisting of the General Manager, Deputy General Manager, and the Executive Assistant manage all aspects of EAA operations. Additionally, the Executive Office oversees the activities of the EAA s outside counsel. EXECUTIVE PROGRAMS General The General program area accounts for those division expenses not directly associated with a specific operational program, such as salaries and benefits, conferences, training, memberships, and subscriptions. Board of Directors & South Central Texas Water Advisory Committee (SCTWAC) The board determines EAA policies and hires the General Manager to manage all EAA operations. The SCTWAC is made up of representatives from downstream counties to interact with the EAA when issues related to downstream water rights are addressed. Legal Services The board hires a general counsel to provide comprehensive legal services regarding all aspects of EAA operations. Executive Office staff provide a centralized, point-of-contact for EAA counsel, and serve as liaison between the board and legal counsel to manage work referred to counsel BUDGET $800,723 $173,500 $841,000 TOTAL EXECUTIVE PROGRAMS $1,815,223 Edwards Aquifer Authority Adopted Budget

48 Edwards Aquifer Authority 2018 Adopted Operating Budget Executive Division Summary Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Salaries & Wages Salaries & Wages $ 586,461 $ 707,093 $ 707,093 $ 587,705 Sick Leave 17, Vacation Leave 63, Holiday Leave 38, Salaries & Wages Total 705, , , ,705 Employee Benefits Allowances 18,900 18,900 18,900 18,300 Dental Insurance 1,203 1,323 1,323 1,241 Employer FICA & Medicare 37,478 54,093 54,093 44,959 Health Insurance 20,200 32,411 32,411 25,027 Life & AD&D Insurance 2,904 3,224 3,224 3,103 LT Disability Insurance 1,472 1,838 1,838 1,763 Medical Allowance Reimbursement 17,185 10,000 10,000 7,500 Pension Expense 56, Retirement Contribution ,558 64,558 54,715 State Unemployment Tax 36 1,080 1, Employee Benefits Total 156, , , ,418 Professional Technical Services Contractual Professional Services 72, , , ,000 Legal Services 748, , , ,000 Legal Services - Settlements 570, Professional Technical Services Total 1,391, , , ,000 Property Services Constituency Services ,000 Facilities Rental - 1,000 1,000 1,000 Non-Capital Furniture & Equipment Property Services Total - 1,200 1,200 26,200 Other Services Conferences, Seminars & Training 3,615 11,000 11,000 11,000 Meeting Expenses 60,337 83,500 83,500 83,500 Printing Public & Legal Notices 11,758 85,000 85,000 85,000 Other Services Total 75, , , ,000 Supplies Memberships 3,150 3,500 3,500 3,700 Office Supplies Subscriptions & Publications 7,572 9,000 9,000 9,200 Supplies Supplies Total 10,722 13,500 13,500 13,900 Total - Executive $ 2,339,473 $ 1,989,220 $ 1,989,220 $ 1,815,223 Edwards Aquifer Authority Adopted Budget

49 Edwards Aquifer Authority 2018 Adopted Operating Budget Executive Program: General Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Salaries & Wages Salaries & Wages $ 586,461 $ 707,093 $ 707,093 $ 587, Sick Leave 17, Vacation Leave 63, Holiday Leave 38, Salaries & Wages Total 705, , , ,705 Employee Benefits Employer FICA & Medicare 37,478 54,093 54,093 44, Retirement Contribution ,558 64,558 54, LT Disability Insurance 1,472 1,838 1,838 1, Health Insurance 20,200 32,411 32,411 25, Dental Insurance 1,203 1,323 1,323 1, State Unemployment Tax 36 1,080 1, Life & AD&D Insurance 2,904 3,224 3,224 3, Medical Allowance Reimbursement 17,185 10,000 10,000 7, Allowances 18,900 18,900 18,900 18, Pension Expense 56, Employee Benefits Total 156, , , ,418 Professional Technical Services Contractual Professional Services - 35,000 35,000 35,000 Professional Technical Services Total - 35,000 35,000 35,000 Property Services Non-Capital Furniture & Equipment Property Services Total Other Services Printing Conferences, Seminars & Training 495 3,000 3,000 3, Meeting Expenses 5,637 8,500 8,500 8,500 Other Services Total 6,132 12,000 12,000 12,000 Supplies Supplies Memberships 3,150 3,500 3,500 3, Subscriptions & Publications 3,520 4,000 4,000 4,200 Supplies Total 6,670 8,000 8,000 8,400 Total - General $ 874,455 $ 949,720 $ 949,720 $ 800,723 Edwards Aquifer Authority Adopted Budget

50 Edwards Aquifer Authority 2018 Adopted Operating Budget Executive Program: Board & SCTWAC Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Contractual Professional Services $ 54,140 $ 65,000 $ 65,000 $ 65,000 Professional Technical Services Total 54,140 65,000 65,000 65,000 Property Services Constituency Services ,000 Property Services Total ,000 Other Services Conferences, Seminars & Training 3,120 8,000 8,000 8, Meeting Expenses 54,699 75,000 75,000 75,000 Other Services Total 57,819 83,000 83,000 83,000 Supplies Office Supplies Supplies Total Total - Board & SCTWAC $ 111,960 $ 148,500 $ 148,500 $ 173,500 Edwards Aquifer Authority Adopted Budget

51 Edwards Aquifer Authority 2018 Adopted Operating Budget Executive Program: Legal Services Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Contractual Professional Services $ 18,690 $ 50,000 $ 50,000 $ Legal Services 748, , , , Legal Services - Settlements 570, Professional Technical Services Total 1,337, , , ,000 Property Services Facilities Rental - 1,000 1,000 1,000 Property Services Total - 1,000 1,000 1,000 Other Services Public & Legal Notices 11,758 85,000 85,000 85,000 Other Services Total 11,758 85,000 85,000 85,000 Supplies Subscriptions & Publications 4,052 5,000 5,000 5,000 Supplies Total 4,052 5,000 5,000 5,000 Total - Legal Services $ 1,353,058 $ 891,000 $ 891,000 $ 841,000 Edwards Aquifer Authority Adopted Budget

52 ADMINISTRATION & FINANCIAL SERVICES Edwards Aquifer Authority Adopted Budget

53 ADMINISTRATION & FINANCIAL SERVICES Felix Marquez Executive Director Administration & Financial Services Jared Morris Director Information Technology Services Raquel Garza Director Human Resources Services Joey Tovar Facilities Associate Shelly Hendrix Director/Controller Financial Services Vacant Network Administrator Vacant Information Technology Project Supervisor Maggie Veliz Employment & Benefits Supervisor Margaret Ross Compensation & Organizational Development Coordinator Vacant Accounting Supervisor Cyndi Holman Procurement Specialist Jovonne Gonzales Application Developer Victor Hutchison Systems Technician Stephanie Marquez Benefits Coordinator Iris Fernandez-Lucas Human Resources Assistant (PT) Ricardo Fonseca Finance Coordinator Isa Fernandez M/WBE Coordinator Ramiro Mendoza Help Desk Technician Valerie Littleton Employment Coordinator Nichelle Cunningham Records Coordinator Deana Watson Finance Associate Vacant System Administrator Teresa Montez Front Office Clerk Rachel Mitchell Administrative Assistant II Vacant Human Resources Coordinator (PT) Edwards Aquifer Authority Adopted Budget

54 ADMINISTRATION AND FINANCIAL SERVICES The Administration & Financial Services division serves the entire staff of the EAA by providing all organizational support activities and by ensuring all EAA teams have the supplies, equipment, facilities and technology available to perform their duties. This includes meeting the organization s financial, technological, and human resource needs to keep the organization operating efficiently. ADMINISTRATION AND FINANCIAL SERVICES PROGRAMS General The General program area accounts for those division expenses not directly associated with a specific operational program, such as salaries and benefits. Accounting The Accounting program conducts all activities associated with payroll, accounts payable, accounts receivable, budget, audits, investment activities, property, casualty, and workers' compensation insurance. EAA Operations The EAA Operations program supports the entire organization, by overseeing building improvements, facility maintenance, vehicle maintenance, office equipment purchases and leases, and utilities. Human Resources The Human Resources program administers all employee and staffing related activities. These activities include preemployment and post-employment processing, employee benefits administration, compensation, safety training, staff development, as well as managing the agency s administrative support function and college internship program BUDGET $2,477,317 $293,226 $701,712 $302,668 Edwards Aquifer Authority Adopted Budget

55 ADMINISTRATION AND FINANCIAL SERVICES ADMINISTRATION AND FINANCIAL SERVICES PROGRAMS Information Technology The Information Technology program area serves to ensure EAA staff has high quality and dependable computer technology available at all times to accomplish its mission. In addition to funding new and replacement computer hardware and software, funding is also included to ensure adequate maintenance of the existing computer network. This program area also works in conjunction with all EAA teams to seek ways to use new and emerging technologies to support their mission through application modernization and increased efficiency, including acquiring 3rd party software solutions by evaluating the technical feasibility and risks of proposed applications. Procurement & M/WBE The Procurement program promotes fair and effective purchasing for the entire organization. While overseeing the process for purchasing goods and services, staff strives to meet the EAA goal of awarding at least 30% of its contracts to minority-owned or woman-owned businesses. Records Management Through centralized organization and electronic records management software, the Records program area ensures the EAA maintains all records according to an adopted plan. In accordance with this plan, records management staff ensure proper filing, archival, retrieval and destruction of EAA files. Records management staff members also respond to public information requests BUDGET $634,342 $87,850 $23,100 ADMINISTRATION AND FINANCIAL SERVICES PROGRAMS $4,520,215 Edwards Aquifer Authority Adopted Budget

56 Edwards Aquifer Authority 2018 Adopted Operating Budget Administration & Financial Services Division Summary Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Salaries & Wages Salaries & Wages $ 1,215,845 $ 1,643,882 $ 1,643,882 $ 1,876,810 Overtime 4,602 6,000 6,000 6,000 Sick Leave 48, Vacation Leave 85, Holiday Leave 82, Compensated Absences 75, Salaries & Wages Total 1,512,152 1,649,882 1,649,882 1,882,810 Employee Benefits Allowances 4,950 5,400 5,400 5,400 Dental Insurance 6,193 7,940 7,940 9,512 Employer FICA & Medicare 96, , , ,576 Health Insurance 101, , , ,875 Life & AD&D Insurance 6,236 7,345 7,345 9,060 LT Disability Insurance 3,337 4,188 4,188 5,147 Medical Allowance Reimbursement 86,070 60,000 60,000 57,500 Pension Expense 138, Retirement Contribution , , ,793 State Unemployment Tax 722 7,020 7,020 8,644 Tuition Reimbursement 29,787 25,000 25,000 30,000 Employee Benefits Total 474, , , ,507 Professional Technical Services Contractual Professional Services 217, , , ,888 Displays ,500 Pre-Employment Services 6,751 3,500 3,500 3,500 Records Services 6,403 6,500 6,500 6,700 Temporary Services 8,580 7,000 7,000 7,000 Professional Technical Services Total 238, , , ,588 Property Services Equipment Maintenance 241, , , ,735 Equipment Rental 30,890 45,368 45,368 45,368 Event Sponsorships 11,705 20,000 20,000 20,000 Facilities Maintenance 143, , , ,500 Facilities Rental Non-Capital Furniture & Equipment 16,863 12,500 13,000 33,000 Pest Control 1,760 2,100 2,100 2,100 Security & Fire 1,177 15,000 15,000 15,000 Vehicles Maintenance 22,567 22,000 22,000 22,000 Waste Disposal 2,801 2,700 2,700 3,000 Water & Sewage 5,849 8,500 8,500 8,500 Property Services Total $ 479,742 $ 496,418 $ 496,918 $ 566,953 Edwards Aquifer Authority Adopted Budget

57 Edwards Aquifer Authority 2018 Adopted Operating Budget Administration & Financial Services Division Summary Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Other Services Conferences, Seminars & Training $ 22,227 $ 51,500 $ 51,500 $ 58,400 Fees, Licenses and Permits 1,094 1,015 1,015 1,015 Meeting Expenses 34,736 28,100 28,100 29,300 Printing 2,049 3,250 3,250 1,750 Property & Casualty Insurance 86,509 96,750 96, ,213 Public & Legal Notices 29,780 66,200 66,200 66,200 Telecommunication Services 68,044 75,000 75,000 75,000 Other Services Total 244, , , ,878 Supplies Clothing 6,303 10,000 10,000 10,000 Computer Supplies 41,746 50,000 50,000 50,000 Electrical Services 83,200 77,000 77,000 77,000 Fuel 20,334 50,000 50,000 50,000 Kitchen & Janitorial 27,893 35,000 35,000 34,000 Memberships 11,275 16,710 14,535 17,260 Office Supplies 25,260 41,500 41,500 36,500 Postage (4,701) 20,000 20,000 20,000 Promotional Supplies 639 1,000 1,000 1,000 Subscriptions & Publications 344 1,118 1,118 1,118 Supplies Total 212, , , ,878 Other Expenses Bad Debt Expense (5,196) Depreciation Expense 927, Interest Expense-Note 120, , , ,994 Other Expenses Total 1,043, , , ,994 Capital Building - 40,000 40,000 - Computer Hardware 65,126 73,000 70, ,000 Computer Software 9, , , ,107 Furniture & Fixtures 20,408 6,500 5,000 30,000 Improvements other than Building - 140, ,000 - Note Principal 75,000 75,000 75,000 80,000 Office Equipment - 10,500 10,500 10,500 Vehicles 31,207 72,000 72,000 72,000 Capital Total 201, , , ,607 Total - Administration & Financial Services $ 4,406,440 $ 4,414,769 $ 4,425,770 $ 4,520,215 Edwards Aquifer Authority Adopted Budget

58 Edwards Aquifer Authority 2018 Adopted Operating Budget Administration & Financial Services Program: General Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Salaries & Wages Salaries & Wages $ 1,215,845 $ 1,643,882 $ 1,643,882 $ 1,876, Overtime 4,602 6,000 6,000 6, Sick Leave 48, Vacation Leave 85, Holiday Leave 82, Compensated Absences 75, Salaries & Wages Total 1,512,152 1,649,882 1,649,882 1,882,810 Employee Benefits Employer FICA & Medicare 96, , , , Retirement Contribution , , , LT Disability Insurance 3,337 4,188 4,188 5, Health Insurance 101, , , , Dental Insurance 6,193 7,940 7,940 9, State Unemployment Tax 722 7,020 7,020 8, Life & AD&D Insurance 6,236 7,345 7,345 9, Medical Allowance Reimbursement 86,070 60,000 60,000 57, Allowances 4,950 5,400 5,400 5, Pension Expense 138, Employee Benefits Total 444, , , ,507 Total - General $ 1,956,737 $ 2,210,582 $ 2,210,582 $ 2,477,317 Edwards Aquifer Authority Adopted Budget

59 Edwards Aquifer Authority 2018 Adopted Operating Budget Administration & Financial Services Program: Accounting Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Contractual Professional Services $ 133,930 $ 107,750 $ 107,750 $ 114,888 Professional Technical Services Total 133, , , ,888 Property Services Equipment Maintenance 48,215 50,000 50,000 62, Facilities Rental Non-Capital Furniture & Equipment - 2,000 2,000 - Property Services Total 48,490 52,750 52,750 63,250 Other Services Printing 1,379 1,500 1, Public & Legal Notices - 1,200 1,200 1, Conferences, Seminars & Training 1,648 5,000 5,000 7, Meeting Expenses 332 1,000 1,000 1, Property & Casualty Insurance 86,509 96,750 96, , Fees, Licenses and Permits Other Services Total 90, , , ,978 Supplies Office Supplies Memberships 1,540 1,860 1,860 2,610 Supplies Total 1,955 2,360 2,360 3,110 Total - Accounting $ 275,135 $ 269,075 $ 269,075 $ 293,226 Edwards Aquifer Authority Adopted Budget

60 Edwards Aquifer Authority 2018 Adopted Operating Budget Administration & Financial Services Program: Authority Operations Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Property Services Waste Disposal $ 2,801 $ 2,700 $ 2,700 $ 3, Water & Sewage 5,849 8,500 8,500 8, Pest Control 1,760 2,100 2,100 2, Security & Fire 1,177 15,000 15,000 15, Vehicles Maintenance 22,567 22,000 22,000 22, Equipment Maintenance 1,254 1,500 1,500 1, Facilities Maintenance 143, , , , Equipment Rental 30,890 45,368 45,368 45, Non-Capital Furniture & Equipment 4,053 5,000 5,000 25,000 Property Services Total 214, , , ,968 Other Services Conferences, Seminars & Training - 1,000 1,000 1,000 Other Services Total - 1,000 1,000 1,000 Supplies Kitchen & Janitorial 27,893 29,000 29,000 20, Office Supplies 20,304 5,000 5, Fuel 20,334 50,000 50,000 50, Postage (4,701) 5,050 5, Electrical Services 83,200 77,000 77,000 77, Memberships Subscriptions & Publications Supplies Total 147, , , ,250 Other Expenses Interest Expense-Note 120, , , , Bad Debt Expense (5,196) Depreciation Expense 927, Other Expenses Total 1,043, , , ,994 Capital Building - 40,000 40, Improvements other than Building - 140, , Vehicles 31,207 72,000 72,000 72, Furniture & Fixtures 12,815 5,000 5,000 30, Office Equipment - 10,500 10,500 10, Note Principal 75,000 75,000 75,000 80,000 Capital Total 119, , , ,500 Total - Authority Operations $ 1,523,956 $ 853,344 $ 853,344 $ 701,712 Edwards Aquifer Authority Adopted Budget

61 Edwards Aquifer Authority 2018 Adopted Operating Budget Administration & Financial Services Program: Human Resources Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Employee Benefits Tuition Reimbursement $ 29,787 $ 25,000 $ 25,000 $ 30,000 Employee Benefits Total 29,787 25,000 25,000 30,000 Professional Technical Services Contractual Professional Services 62, , , , Pre-Employment Services 6,751 3,500 3,500 3, Temporary Services 6,431 5,000 5,000 5,000 Professional Technical Services Total 76, , , ,500 Property Services Non-Capital Furniture & Equipment 1, Property Services Total 1, Other Services Printing - 1,000 1,000 1, Public & Legal Notices 12,424 20,000 20,000 20, Conferences, Seminars & Training 10,904 15,000 15,000 19, Meeting Expenses 32,963 24,000 24,000 25, Fees, Licenses and Permits Other Services Total 56,493 60,250 60,250 65,250 Supplies Kitchen & Janitorial - 6,000 6,000 14, Office Supplies 2,516 33,000 33,000 33, Clothing 6,303 10,000 10,000 10, Postage - 14,950 14,950 20, Memberships 745 1,000 1,000 1, Subscriptions & Publications Supplies Total 9,908 65,268 65,268 78,918 Capital Computer Hardware 1, Capital Total 1, Total - Human Resources $ 175,810 $ 309,018 $ 309,018 $ 302,668 Edwards Aquifer Authority Adopted Budget

62 Edwards Aquifer Authority 2018 Adopted Operating Budget Administration & Financial Services Program: Information Technology Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Contractual Professional Services $ 1,260 $ 27,000 $ 27,000 $ 27,000 Professional Technical Services Total 1,260 27,000 27,000 27,000 Property Services Equipment Maintenance 192, , , , Non-Capital Furniture & Equipment 1, ,000 3,000 Property Services Total 193, , , ,735 Other Services Telecommunication Services 68,044 75,000 75,000 75, Conferences, Seminars & Training 9,675 30,000 30,000 30,000 Other Services Total 77, , , ,000 Supplies Computer Supplies 41,746 50,000 50,000 50, Office Supplies Memberships 500 3,000 3,000 2,000 Supplies Total 42,246 53,500 53,500 52,500 Capital Furniture & Fixtures 7,593 1, Computer Software 9, , , , Computer Hardware 63,542 73,000 70, ,000 Capital Total 80, , , ,107 Total - Information Technology $ 395,469 $ 609,000 $ 622,176 $ 634,342 Edwards Aquifer Authority Adopted Budget

63 Edwards Aquifer Authority 2018 Adopted Operating Budget Administration & Financial Services Program: Procurement & M/WBE Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Contractual Professional Services $ 840 $ 55,000 $ 55,000 $ 5, Displays ,500 Professional Technical Services Total ,000 55,000 7,500 Property Services Event Sponsorships 11,705 20,000 20,000 20,000 Property Services Total 11,705 20,000 20,000 20,000 Other Services Printing Public & Legal Notices 17,356 45,000 45,000 45, Conferences, Seminars & Training Meeting Expenses 1,162 2,500 2,500 2,500 Other Services Total 19,188 48,750 48,750 48,850 Supplies Promotional Supplies 639 1,000 1,000 1, Office Supplies Memberships 7,825 10,000 7,825 10,000 Supplies Total 8,508 11,500 9,325 11,500 Total - Procurement & M/WBE $ 40,241 $ 135,250 $ 133,075 $ 87,850 Edwards Aquifer Authority Adopted Budget

64 Edwards Aquifer Authority 2018 Adopted Operating Budget Administration & Financial Services Program: Records Management Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Contractual Professional Services $ 18,006 $ 12,000 $ 12,000 $ 6, Records Services 6,403 6,500 6,500 6, Temporary Services 2,149 2,000 2,000 2,000 Professional Technical Services Total 26,558 20,500 20,500 14,700 Property Services Non-Capital Furniture & Equipment 9,872 5,000 5,000 5,000 Property Services Total 9,872 5,000 5,000 5,000 Other Services Meeting Expenses Other Services Total Supplies Office Supplies 1,982 2,000 2,000 2, Memberships Supplies Total 2,382 2,400 2,400 2,600 Total - Records Management $ 39,091 $ 28,500 $ 28,500 $ 23,100 Edwards Aquifer Authority Adopted Budget

65 AQUIFER MANAGEMENT SERVICES Edwards Aquifer Authority Adopted Budget

66 AQUIFER MANAGEMENT SERVICES Mark Hamilton Executive Director Aquifer Management Services Geary Schindel Chief Technical Officer Steve Johnson Director Aquifer Science James Winterle Director Modeling & Data Management Jim Boenig Director Aquifer Protection Marcus Gary Field Operations Supervisor Paul Bertteti Research Manager Newfel Mazari Data Collection Supervisor Vacant Senior Modeler Roger Andrade Groundwater Protection Manager Brent Doty Aquifer Protection Supervisor Anastacio Moncada Environmental Science Technician Gizelle Luevano Lead Hydrologic Data Coordinator David Gregory Sr. Environmental Science Technician Andi Zhang Senior Modeler Jon Cradit Environmental Coordinator Thomas Marsalia Environmental Coordinator Sarah Watson Lead GIS Analyst Jenny Adkins- Schudrowitz Hydrogeologist Ron Gloyd Gauging Systems Technician Ned Troshanov Aquifer Data Analyst Roel Loera Environmental Coordinator Clayton Rollins Environmental Coordinator Taylor Bruecher Environmental Analyst Jessica Quintanilla Hydrogeologist Robin Tremallo Technical Data Coordinator Roberto Esquilin Sr Hydrogeologist Mariah Bonham Environmental Coordinator Vacant Environmental Coordinator Emily Thompson Sr. Water Quality Program Coordinator Matthew Schwarz Data Collection Coordinator Jose Gonzales Environmental Field Representative Jeff Robinson Sr Well Construction Coordinator Edwards Aquifer Authority Adopted Budget

67 AQUIFER MANAGEMENT SERVICES Aquifer Management Services division is responsible for data collection, research, modeling, sampling, monitoring, well-registration and other technical matters related to the aquifer. This division maintains active and historical information for water levels, water quality, recharge, and rainfall across the region. The division also performs research tasks designed to better understand the aquifer system and make refinements to the conceptual model of the aquifer. As the conceptual model is improved, these data are used to refine the EAA s groundwater modeling capability. Aquifer Management Services staff also monitor spills and development activities over the recharge zone, develop and maintain well registrations, and well construction permits and analyze risks related to abandoned wells. Other divisional responsibilities include range management and conservation easement programs, geologic assessments for potential easement properties, and the recharge program. AQUIFER MANAGEMENT SERVICES PROGRAMS General The General program area accounts for those division expenses not directly associated with a specific operational program, such as salaries and benefits, conferences, training, memberships, and subscriptions. Abandoned Well Closure Program Permanently closing or rehabilitating of abandoned wells is the responsibility of the property owner. Property owners who do not have the means to properly address their abandoned well may apply to the EAA for financial assistance. Financial assistance may be provided, in full or in part, depending on a demonstrated financial need. In cases where the property owner qualifies for financial assistance, EAA contractors will permanently close the well. Aquifer Protection Through the Edwards Aquifer Protection Program, the EAA reviews plans for development on the recharge zone, monitors EAA-owned conservation easements, assists other entities with conservation easement acquisitions and monitoring, and conducts educational activities related to aquifer protection. The City of San Antonio (City) and the EAA inter-local agreement provides for a reimbursement to the EAA to perform conservation easement monitoring and geologic assessment services under the City's Edwards Aquifer Protection Program. The City reimbursement ($175,000) is budgeted in this department as an offset to expenses incurred and for reimbursement of various personnel costs recorded in the General category of expenses above BUDGET $3,600,441 $257,000 $(97,000) Edwards Aquifer Authority Adopted Budget

68 AQUIFER MANAGEMENT SERVICES AQUIFER MANAGEMENT SERVICES PROGRAMS Aquifer Science Research Program EAA funded research projects are conducted to address questions directly related to the understanding and management of the Edwards Aquifer. Information collected through the program is used to expand our understanding of the aquifer and refine the conceptual model of the aquifer system. Subsequently, these refinements are carried forward to improve EAA groundwater models, allowing for better management of the resource. This group is also responsible for collecting water quality data, stream flow data, and water level data. Groundwater Protection The Groundwater Protection program is responsible for registering Edwards Aquifer wells within the EAA s jurisdiction. Identification and risk assessment of abandon wells and identification of appropriate remedies for these abandoned wells. The EAA also requires that wells drilled into or through the Edwards Aquifer obtain the appropriate drilling permit, an initiative administered by groundwater protection staff. Maintenance of EAA operated recharge structures is also the responsibility of this program area. Karst Initiatives Through the Karst Initiatives program the EAA provides expertise to stakeholders by raising awareness of the unique vulnerabilities associated with karst landscapes and groundwater associated with karst aquifers. This program is working to enhance water quality protection measures through first responder education, professional lecture series, and exploration of innovative technologies. Geologic assessments of potential easement properties, evaluation of karst features, and determination of surface geological properties are other responsibilities that fall under Karst Initiatives BUDGET $1,156,200 $463,625 $70,750 Edwards Aquifer Authority Adopted Budget

69 AQUIFER MANAGEMENT SERVICES AQUIFER MANAGEMENT SERVICES PROGRAMS Modeling & Data Management Groundwater modeling is conducted through the use of computer models developed specifically for the Edwards Aquifer. These models are periodically refined through ongoing research related to the aquifer system. Data management is a part of the overall process of properly collecting, storing, analyzing, checking, and retrieving the multiple data streams the EAA is responsible for. Range Management Through the range management program, the EAA provides cost share incentives to landowners who perform brush control (generally Ashe juniper control) on properties located on the Edwards Aquifer Recharge Zone. The EAA works in cooperation with the U.S. Department of Agriculture Natural Resources Conservation Service to encourage brush control with the goal of improving water quality and recharge potential to benefit all aquifer users. Activities include developing agreements with landowners to formalize brush control and landowner reimbursement details, developing program information documents, inspecting properties, and administering reimbursement payments. Funding for range management research projects is also included in this program area. Recharge Enhancement Program EAA staff will evaluate recharge projects proposed by third parties; however, the EAA will continue to refine its groundwater and hydrological models to better represent local conditions prior to pursuing any new EAA-funded recharge project. The Recharge Enhancement program also oversees the EAA s precipitation enhancement (cloud seeding) program to increase recharge and reduce irrigation demand BUDGET $414,200 $58,000 $163,000 Edwards Aquifer Authority Adopted Budget

70 AQUIFER MANAGEMENT SERVICES AQUIFER MANAGEMENT SERVICES PROGRAMS Remote Gauging The real-time gauging network consists of a network of automated rain gauges located across the Edwards Aquifer region. Data from the rain gauges are used to assist in recharge calculation, production of rainfall maps, and in a variety of research projects by the EAA and other stakeholders. This network will undergo major renovations in calendar years , including new measurement and telemetry equipment purchases BUDGET $136,592 TOTAL AQUIFER MANAGEMENT SERVICES PROGRAMS $6,222,808 Edwards Aquifer Authority Adopted Budget

71 Edwards Aquifer Authority 2018 Adopted Operating Budget Aquifer Management Services Division Summary Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Salaries & Wages Salaries & Wages $ 1,969,976 $ 2,474,008 $ 2,474,008 $ 2,683,770 Overtime 3,550 6,000 6,000 6,000 Sick Leave 73, Vacation Leave 161, Holiday Leave 137, Salaries & Wages Total 2,345,252 2,480,008 2,480,008 2,689,770 Employee Benefits Allowances 4,950 5,400 5,400 6,000 Dental Insurance 8,889 10,587 10,587 14,061 Employer FICA & Medicare 176, , , ,308 Health Insurance 145, , , ,641 Life & AD&D Insurance 9,682 11,131 11,131 14,170 LT Disability Insurance 5,185 6,347 6,347 8,051 Medical Allowance Reimbursement 119,748 80,000 80,000 85,000 Pension Expense 223, Retirement Contribution 1, , , ,859 State Unemployment Tax 782 9,180 9,180 9,181 Employee Benefits Total 696, , , ,271 Professional Technical Services Aquarena Center Services 1,229 5,000 5,000 5,000 Aquifer Science Advisory Panel 2,804 10,000 10,000 15,000 Brackish Edwards Studies ,000 Contractual Professional Services 36, , , ,000 COSA - ILA Cost Share Reimbursement - (175,000) (175,000) (175,000) Critical Period Monitoring 20, , , ,000 EA Model 84, , , ,000 EA State Resource Concern 14,605 50,000 50,000 50,000 Focused Flow Path Studies 7,005 30,000 30,000 15,000 Groundwater Management Advisory - 15,000 15,000 15,000 Hydrologic Budget Studies 161, , , ,000 Interformational Flow 58, , , ,200 Joint Funding Agreement 345, , , ,000 Lab Services 179, , , ,000 Precipitation Enhancement 135, , , ,000 Temporary Services 6, Trinity-Edwards USGS 53, Trinity-Edwards USGS Mapping Phase 2 120, , ,000 62,475 Trinity-Edwards USGS Mapping Phase 3-31,575 31, ,000 Well Logging - Pilot - 3,000 3,000 3,000 Professional Technical Services Total 1,227,326 1,642,089 1,642,089 1,794,675 Property Services Equipment Maintenance 25,472 64,500 64,500 67,500 Equipment Rental ,500 10,500 10,500 Event Sponsorships 4,917 5,000 5,000 5,000 Facilities Maintenance $ 14,988 $ 258,500 $ 83,500 $ 258,500 Edwards Aquifer Authority Adopted Budget

72 Edwards Aquifer Authority 2018 Adopted Operating Budget Aquifer Management Services Division Summary Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Facilities Rental $ 17,652 $ 18,952 $ 18,952 $ 19,652 Non-Capital Furniture & Equipment 9,994 43,500 43,500 43,500 Property Services Total 73, , , ,652 Other Services Conferences, Seminars & Training 24,576 60,500 60,500 70,500 Fees, Licenses and Permits Meeting Expenses 8,838 19,950 19,950 21,450 Printing 7,476 7,500 7,500 7,250 Public & Legal Notices - 2,000 2,000 2,000 Telecommunication Services 10,070 15,000 15,000 19,440 Travel/Lodging 8,487 10,000 10,000 15,000 Other Services Total 59, , , ,640 Supplies Computer Supplies 444 1,000 1,000 1,000 Electrical Services 632 1,200 1,200 1,200 Field Supplies 51,100 71,200 71,200 66,400 Memberships 6,964 7,000 7,000 7,000 Subscriptions & Publications Supplies Total 59,422 80,600 80,600 75,800 Capital Computer Hardware - 4,000 4,000 2,000 Computer Software 42,839 40,500 40,500 45,000 Office Equipment - 10,000 10,000 - Remote Monitoring Equipment - 45,000 45, ,000 Water Sampling Monitoring Equipment 78,570 85,000 85,000 85,000 Well Logging Equipment 134,027 5,000 5,000 5,000 Capital Total 255, , , ,000 Total - Aquifer Management Services $ 4,717,103 $ 5,702,166 $ 5,527,166 $ 6,222,808 Edwards Aquifer Authority Adopted Budget

73 Edwards Aquifer Authority 2018 Adopted Operating Budget Aquifer Management Services Program: General Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Salaries & Wages Salaries & Wages $ 1,969,976 $ 2,474,008 $ 2,474,008 $ 2,683, Overtime 3,550 6,000 6,000 6, Sick Leave 73, Vacation Leave 161, Holiday Leave 137, Salaries & Wages Total 2,345,252 2,480,008 2,480,008 2,689,770 Employee Benefits Employer FICA & Medicare 176, , , , Retirement Contribution 1, , , , LT Disability Insurance 5,185 6,347 6,347 8, Health Insurance 145, , , , Dental Insurance 8,889 10,587 10,587 14, State Unemployment Tax 782 9,180 9,180 9, Life & AD&D Insurance 9,682 11,131 11,131 14, Medical Allowance Reimbursement 119,748 80,000 80,000 85, Allowances 4,950 5,400 5,400 6, Pension Expense 223, Employee Benefits Total 696, , , ,271 Professional Technical Services Temporary Services 6, Professional Technical Services Total 6, Property Services Event Sponsorships 4,917 5,000 5, Non-Capital Furniture & Equipment - 1,500 1,500 1,500 Property Services Total 4,917 6,500 6,500 1,500 Other Services Conferences, Seminars & Training 24,576 24,500 24,500 24, Meeting Expenses 566 1,200 1,200 1, Fees, Licenses and Permits Other Services Total 25,457 25,700 25,700 25,700 Supplies Computer Supplies 444 1,000 1,000 1, Memberships 6,964 7,000 7,000 7, Subscriptions & Publications Supplies Total 7,691 8,200 8,200 8,200 Capital Office Equipment - 10,000 10,000 - Capital Total - 10,000 10,000 - Total - General $ 3,086,361 $ 3,324,475 $ 3,324,475 $ 3,600,441 Edwards Aquifer Authority Adopted Budget

74 Edwards Aquifer Authority 2018 Adopted Operating Budget Aquifer Management Services Program: Abandoned Well Closure Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Contractual Professional Services $ - $ 178,514 $ 178,514 $ 225, Well Logging - Pilot - 3,000 3,000 3,000 Professional Technical Services Total - 181, , ,000 Property Services Equipment Rental - 1,000 1,000 1, Non-Capital Furniture & Equipment - 26,000 26,000 26,000 Property Services Total - 27,000 27,000 27,000 Other Services Public & Legal Notices - 2,000 2,000 2,000 Other Services Total - 2,000 2,000 2,000 Total - Abandoned Well Closure $ - $ 210,514 $ 210,514 $ 257,000 Edwards Aquifer Authority Adopted Budget

75 Edwards Aquifer Authority 2018 Adopted Operating Budget Aquifer Management Services Program: Aquifer Protection Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Contractual Professional Services $ 21,214 $ 35,000 $ 35,000 $ 30, COSA - ILA Cost Share Reimbursement - (175,000) (175,000) (175,000) Professional Technical Services Total 21,214 (140,000) (140,000) (145,000) Property Services Equipment Maintenance 1,058 23,500 23,500 26, Facilities Maintenance 476 1,000 1,000 1, Non-Capital Furniture & Equipment 681 1,500 1,500 1,500 Property Services Total 2,215 26,000 26,000 29,000 Other Services Conferences, Seminars & Training - 1,000 1,000 1, Meeting Expenses 453 1,000 1,000 1, Travel/Lodging 786 3,000 3,000 3,000 Other Services Total 1,239 5,000 5,000 5,000 Supplies Field Supplies 2,834 3,000 3,000 3,000 Supplies Total 2,834 3,000 3,000 3,000 Capital Computer Software 7,500 2,500 2,500 11,000 Capital Total 7,500 2,500 2,500 11,000 Total - Aquifer Protection $ 35,002 $ (103,500) $ (103,500) $ (97,000) Edwards Aquifer Authority Adopted Budget

76 Edwards Aquifer Authority 2018 Adopted Operating Budget Aquifer Management Services Program: Aquifer Science Research Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Contractual Professional Services $ - $ 21,000 $ 21,000 $ 21, Joint Funding Agreement 345, , , , Lab Services 179, , , , Focused Flow Path Studies 7,005 30,000 30,000 15, Interformational Flow 58, , , , Aquifer Science Advisory Panel 2,804 10,000 10,000 15, Hydrologic Budget Studies 161, , , , Aquarena Center Services 1,229 5,000 5,000 5, Brackish Edwards Studies ,000 Professional Technical Services Total 755, , ,000 1,011,200 Property Services Equipment Maintenance 11,447 15,000 15,000 15, Equipment Rental 677 2,500 2,500 2, Facilities Rental 2,700 2,800 2,800 3, Non-Capital Furniture & Equipment 9,312 10,000 10,000 10,000 Property Services Total 24,136 30,300 30,300 31,000 Other Services Printing 1,091 3,000 3,000 2, Conferences, Seminars & Training - 35,000 35,000 10, Meeting Expenses 5,572 10,000 10,000 1, Travel/Lodging 7,701 7,000 7,000 7,000 Other Services Total 14,364 55,000 55,000 21,000 Supplies Field Supplies 44,279 45,000 45,000 40,000 Supplies Total 44,279 45,000 45,000 40,000 Capital Well Logging Equipment 134,027 5,000 5,000 5, Water Sampling Monitoring Equipment 49,221 45,000 45,000 40, Computer Software 1,500 8,000 8,000 8,000 Capital Total 184,748 58,000 58,000 53,000 Total - Aquifer Science Research $ 1,022,656 $ 1,154,300 $ 1,154,300 $ 1,156,200 Edwards Aquifer Authority Adopted Budget

77 Edwards Aquifer Authority 2018 Adopted Operating Budget Aquifer Management Services Program: Groundwater Protection Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Contractual Professional Services $ 8,800 $ 15,000 $ 15,000 $ 15, Trinity-Edwards USGS 53, Trinity-Edwards USGS Mapping Phase 2 120, , ,000 62, Trinity-Edwards USGS Mapping Phase 3-31,575 31, ,000 Professional Technical Services Total 182, , , ,475 Property Services Facilities Maintenance 7, ,000 75, , Equipment Rental - 2,000 2,000 2, Non-Capital Furniture & Equipment - 2,000 2,000 2,000 Property Services Total 7, ,000 79, ,000 Other Services Meeting Expenses Other Services Total Supplies Field Supplies 80 1,200 1,200 1,400 Supplies Total 80 1,200 1,200 1,400 Capital Water Sampling Monitoring Equipment - 5,000 5,000 10,000 Capital Total - 5,000 5,000 10,000 Total - Groundwater Protection $ 190,988 $ 427,525 $ 252,525 $ 463,625 Edwards Aquifer Authority Adopted Budget

78 Edwards Aquifer Authority 2018 Adopted Operating Budget Aquifer Management Services Program: Karst Initiatives Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Contractual Professional Services $ - $ - $ - $ 15,000 Professional Technical Services Total ,000 Property Services Event Sponsorships ,000 Property Services Total ,000 Other Services Printing Conferences, Seminars & Training , Meeting Expenses , Travel/Lodging ,000 Other Services Total ,750 Total - Karst Initiatives $ - $ - $ - $ 70,750 Edwards Aquifer Authority Adopted Budget

79 Edwards Aquifer Authority 2018 Adopted Operating Budget Aquifer Management Services Program: Modeling & Data Management Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Contractual Professional Services $ 6,750 $ 15,000 $ 15,000 $ 15, EA Model 84, , , , Groundwater Management Advisory - 15,000 15,000 15, Critical Period Monitoring 20, , , ,000 Professional Technical Services Total 112, , , ,000 Property Services Equipment Maintenance 8,744 20,000 20,000 20, Facilities Maintenance 6,850 7,500 7,500 7, Equipment Rental - 5,000 5,000 5, Non-Capital Furniture & Equipment - 2,500 2,500 2,500 Property Services Total 15,594 35,000 35,000 35,000 Other Services Printing 451 2,500 2,500 2, Telecommunication Services 10,070 15,000 15,000 15, Meeting Expenses 614 3,000 3,000 3,000 Other Services Total 11,136 20,500 20,500 20,000 Supplies Field Supplies 2,730 20,000 20,000 20, Electrical Services 632 1,200 1,200 1,200 Supplies Total 3,362 21,200 21,200 21,200 Capital Water Sampling Monitoring Equipment 29,349 35,000 35,000 35, Computer Software 33,839 30,000 30,000 26, Computer Hardware - 4,000 4,000 2,000 Capital Total 63,188 69,000 69,000 63,000 Total - Modeling & Data Management $ 205,392 $ 400,700 $ 400,700 $ 414,200 Edwards Aquifer Authority Adopted Budget

80 Edwards Aquifer Authority 2018 Adopted Operating Budget Aquifer Management Services Program: Range Management Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services EA State Resource Concern $ 14,605 $ 50,000 $ 50,000 $ 50,000 Professional Technical Services Total 14,605 50,000 50,000 50,000 Property Services Equipment Maintenance 271 1,000 1,000 1,000 Property Services Total 271 1,000 1,000 1,000 Other Services Printing 5,934 2,000 2,000 2, Meeting Expenses 812 4,000 4,000 4,000 Other Services Total 6,746 6,000 6,000 6,000 Supplies Field Supplies 638 1,000 1,000 1,000 Supplies Total 638 1,000 1,000 1,000 Total - Range Management $ 22,260 $ 58,000 $ 58,000 $ 58,000 Edwards Aquifer Authority Adopted Budget

81 Edwards Aquifer Authority 2018 Adopted Operating Budget Aquifer Management Services Program: Recharge Enhancement Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Precipitation Enhancement $ 135,000 $ 163,000 $ 163,000 $ 163,000 Professional Technical Services Total 135, , , ,000 Total - Recharge Enhancement $ 135,000 $ 163,000 $ 163,000 $ 163,000 Edwards Aquifer Authority Adopted Budget

82 Edwards Aquifer Authority 2018 Adopted Operating Budget Aquifer Management Services Program: Remote Gauging Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Property Services Equipment Maintenance $ 3,953 $ 5,000 $ 5,000 $ 5, Facilities Rental 14,952 16,152 16,152 16,152 Property Services Total 18,905 21,152 21,152 21,152 Other Services Telecommunication Services ,440 Other Services Total ,440 Supplies Field Supplies 539 1,000 1,000 1,000 Supplies Total 539 1,000 1,000 1,000 Capital Remote Monitoring Equipment - 45,000 45, ,000 Capital Total - 45,000 45, ,000 Total - Remote Gauging $ 19,444 $ 67,152 $ 67,152 $ 136,592 Edwards Aquifer Authority Adopted Budget

83 EXTERNAL & REGULATORY AFFAIRS Edwards Aquifer Authority Adopted Budget

84 EXTERNAL & REGULATORY AFFAIRS Marc Friberg Executive Director External & Regulatory Affairs Earl Parker Director Regulatory Affairs Jennifer Wong-Esparza Assistant to Board Secretary Julia Carrillo Public Policy Analyst Charles Aherns Water Resources Manager Javier Hernandez Special Projects Liaison Stephnie Martin Compliance Supervisor Ben Urbanczyk Recharge Zone Protection Supervisor Jose Barela Field Inspection Supervisor Brenda Davis Conservation Coordinator Isabel Martinez Conservation Coordinator Jorge Paramo Compliance Coordinator Laurel Galm Recharge Zone Protection Coordinator Joseph Sterzenback Electronics Technician Christopher Morgan Field Inspection Technician Omar Garcia Permits Supervisor Stephen Kyle Craig Recharge Zone Protection Coordinator Julie Chunn Electronics Technician Charles Bradshaw Field Inspection Technician Tamauj Thomas Permit Coordinator Vacant Environmental Coordinator Vacant Field Inspection Technician Natasha Ponce Field Inspection Technician Paul Aton Permit Coordinator Edwards Aquifer Authority Adopted Budget

85 EXTERNAL & REGULATORY AFFAIRS The External & Regulatory Affairs division objective is to help effectively manage, enhance, and protect the Edwards Aquifer by administering and enforcing the EAA s rules; by managing production from the aquifer through a comprehensive permitting, metering, and drought management system; by serving as a resource to the regulated community and area stakeholders; by protecting and conserving the aquifer through the Recharge Zone Protection and Conservation programs and by increasing awareness and understanding of the EAA through public education and outreach efforts, including communicating critical issues clearly and concisely, increasing pro-active efforts to build support of the EAA mission throughout the region, developing and distributing educational information, and ensuring good communication with all levels of government. The department includes the EAA s water resources, regulatory affairs, public outreach, and policy departments. EXTERNAL & REGULATORY AFFAIRS PROGRAMS General The General program area accounts for those division expenses not directly associated with a specific operational program, such as salaries and benefits, conferences, training, memberships, and subscriptions. Elections The Edwards Aquifer Authority Act requires the EAA to hold elections for director positions on the general election day in November of every even-numbered year. EAA directors serve staggered four-year terms. Intergovernmental Relations The EAA was created by the Texas Legislature and as such maintains ongoing communications with the legislature and other political and governmental entities. These include, but are not limited to various committees of the House and Senate, including the Edwards Aquifer Legislative Oversight Committee, regional water planning groups, groundwater management areas, and other water-related regulatory or planning entities. This program coordinates activities such as the gathering and sharing of pertinent information with legislative bodies and other governmental entities and assisting in the planning of water management on a regional basis for both groundwater and surface water to help meet future needs BUDGET $2,468,506 $400,000 $596,416 Edwards Aquifer Authority Adopted Budget

86 EXTERNAL & REGULATORY AFFAIRS EXTERNAL & REGULATORY AFFAIRS PROGRAMS Meters The meter program requires meters on all non-exempt Edwards Aquifer wells. The program manages a network of EAA-installed meters on approximately 600 irrigation wells and maintains records for approximately 1,000 industrial and municipal wells. EAA staff checks and reads every meter at least once a year, and more often as appropriate. The meter program gathers and maintains data related to meter registration and groundwater use reporting for the EAA. In addition, the program manages the EAA s Remote Meter and Meter Accuracy Verification programs. Regulatory Affairs and Water Resources The Regulatory Affairs program administers several regulatory programs related to groundwater production and protection. This includes regulating the metering and reporting of groundwater withdrawals, the storage of regulated materials, aboveground and underground storage tanks, and the overall, general enforcement of all EAA rules. The program also helps administer the Edwards Aquifer Habitat Conservation Plan Aquifer Storage and Recharge Program BUDGET $163,100 $307,850 Edwards Aquifer Authority Adopted Budget

87 EXTERNAL & REGULATORY AFFAIRS EXTERNAL & REGULATORY AFFAIRS PROGRAMS 2018 BUDGET Regulatory Affairs and Water Resources (Cont d) The Water Resources program focuses on the administration of permits and water conservation. This program administers EAA groundwater withdrawal right permits, manages and helps enforce pumping reductions mandated with the EAA Act and EAA rules during times of drought, and helps to facilitate conservation through an EAA groundwater conservation program, which includes an internal grant program. This program also ensures permit holders are in compliance with all EAA Rules for such things as groundwater use reporting. As such, funding for enforcement of non-compliance is also included as part of this program area. The Water Resources program also helps to address increasing water demands, extreme weather variability, and mandated reductions in pumping during critical times. The EAA s Groundwater Conservation Plan and related programs help users improve water-use efficiency. TOTAL EXTERNAL & REGULATORY AFFAIRS PROGRAMS $3,935,872 Edwards Aquifer Authority Adopted Budget

88 Edwards Aquifer Authority 2018 Adopted Operating Budget External & Regulatory Affairs Division Summary Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Salaries & Wages Salaries & Wages $ 1,408,188 $ 2,190,298 $ 2,190,298 $ 1,816,278 Overtime 1,505 6,000 6,000 6,000 Sick Leave 75, Vacation Leave 113, Holiday Leave 96, Salaries & Wages Total 1,695,082 2,196,298 2,196,298 1,822,278 Employee Benefits Allowances 5,300 6,000 6,000 4,800 Dental Insurance 8,192 10,256 10,256 10,339 Employer FICA & Medicare 122, , , ,945 Health Insurance 148, , , ,559 Life & AD&D Insurance 8,429 9,838 9,838 9,590 LT Disability Insurance 4,513 5,609 5,609 5,449 Medical Allowance Reimbursement 111,716 77,500 77,500 62,500 Pension Expense 195, Retirement Contribution , , ,096 State Unemployment Tax 909 8,910 8,910 6,750 Employee Benefits Total 606, , , ,028 Professional Technical Services Contractual Professional Services 58, , , ,000 Election ,000 GMA Contribution 9, Intergovernmental Cooperative 1,575 25,000 25,000 25,000 Legislative Services 134, , , ,000 NBU/COSM Interlocal Support 375, , , ,416 Region L 11,593 17,000 17,000 17,000 Professional Technical Services Total 590, , ,661 1,141,416 Property Services Equipment Maintenance 8,415 6,000 6,000 20,000 Equipment Rental ,000 Event Sponsorships - 5,000 5,000 5,000 Facilities Rental 1,200 8,000 8,000 7,000 Non-Capital Furniture & Equipment 13,343 31,000 31,000 27,000 Property Services Total $ 22,958 $ 50,500 $ 50,500 $ 62,000 Edwards Aquifer Authority Adopted Budget

89 Edwards Aquifer Authority 2018 Adopted Operating Budget External & Regulatory Affairs Division Summary Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Other Services Conferences, Seminars & Training $ 8,346 $ 15,000 $ 15,000 $ 15,000 Meeting Expenses 1,936 6,200 6,200 6,700 Printing 311 1,500 1,500 1,500 Public & Legal Notices 8, Telecommunication Services ,100 Other Services Total 19,781 22,700 22,700 25,300 Supplies Electrical Services Field Supplies 1,340 4,800 4,800 6,000 Memberships 1,953 3,000 3,000 3,000 Office Supplies Subscriptions & Publications 3,754 9,300 9,300 6,000 Supplies Total 7,226 17,950 17,950 15,850 Other Expenses Conservation Grants 200, , , ,000 Other Expenses Total 200, , , ,000 Capital Computer Hardware 2,554 8,000 8,000 18,000 Computer Software 43, Water Meters 42,668 57,500 57,500 35,000 Capital Total 89,172 65,500 65,500 53,000 Total - External & Regulatory Affairs $ 3,231,868 $ 4,065,435 $ 4,065,435 $ 3,935,872 Edwards Aquifer Authority Adopted Budget

90 Edwards Aquifer Authority 2018 Adopted Operating Budget External & Regulatory Affairs Program: General Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Salaries & Wages Salaries & Wages $ 1,408,188 $ 2,190,298 $ 2,190,298 $ 1,816, Overtime 1,505 6,000 6,000 6, Sick Leave 75, Vacation Leave 113, Holiday Leave 96, Salaries & Wages Total 1,695,082 2,196,298 2,196,298 1,822,278 Employee Benefits Employer FICA & Medicare 122, , , , Retirement Contribution , , , LT Disability Insurance 4,513 5,609 5,609 5, Health Insurance 148, , , , Dental Insurance 8,192 10,256 10,256 10, State Unemployment Tax 909 8,910 8,910 6, Life & AD&D Insurance 8,429 9,838 9,838 9, Medical Allowance Reimbursement 111,716 77,500 77,500 62, Allowances 5,300 6,000 6,000 4, Pension Expense 195, Employee Benefits Total 606, , , ,028 Other Services Conferences, Seminars & Training 8,346 15,000 15,000 15, Meeting Expenses 1,140 3,200 3,200 3,200 Other Services Total 9,485 18,200 18,200 18,200 Supplies Memberships 1,953 3,000 3,000 3, Subscriptions & Publications 3,754 6,000 6,000 6,000 Supplies Total 5,707 9,000 9,000 9,000 Capital Computer Hardware - 3,000 3,000 3,000 Capital Total - 3,000 3,000 3,000 Total - General $ 2,316,972 $ 2,960,324 $ 2,960,324 $ 2,468,506 Edwards Aquifer Authority Adopted Budget

91 Edwards Aquifer Authority 2018 Adopted Operating Budget External & Regulatory Affairs Program: Elections Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Election $ - $ - $ - $ 400,000 Professional Technical Services Total ,000 Total - Elections $ - $ - $ - $ 400,000 Edwards Aquifer Authority Adopted Budget

92 Edwards Aquifer Authority 2018 Adopted Operating Budget External & Regulatory Affairs Program: Intergovernmental Relations Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Legislative Services $ 134,117 $ 150,000 $ 150,000 $ 150, Region L 11,593 17,000 17,000 17, Intergovernmental Cooperative 1,575 25,000 25,000 25, GMA Contribution 9, NBU/COSM Interlocal Support 375, , , ,416 Professional Technical Services Total 532, , , ,416 Property Services Event Sponsorships - 5,000 5,000 5,000 Property Services Total - 5,000 5,000 5,000 Other Services Meeting Expenses 500 2,000 2,000 2,000 Other Services Total 500 2,000 2,000 2,000 Supplies Subscriptions & Publications - 3,300 3,300 - Supplies Total - 3,300 3,300 - Total - Intergovernmental Relations $ 533,386 $ 588,961 $ 588,961 $ 596,416 Edwards Aquifer Authority Adopted Budget

93 Edwards Aquifer Authority 2018 Adopted Operating Budget External & Regulatory Affairs Program: Meters Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Contractual Professional Services $ 58,066 $ 100,000 $ 100,000 $ 62,000 Professional Technical Services Total 58, , ,000 62,000 Property Services Equipment Maintenance 8,415 6,000 6,000 20, Equipment Rental , Facilities Rental 1,200 8,000 8,000 7, Non-Capital Furniture & Equipment 11,190 15,000 15,000 11,000 Property Services Total 20,805 29,500 29,500 41,000 Other Services Printing Telecommunication Services , Meeting Expenses Other Services Total 833 1,250 1,250 3,350 Supplies Field Supplies 1,340 4,800 4,800 6, Electrical Services Supplies Total 1,519 5,550 5,550 6,750 Capital Water Meters 42,668 57,500 57,500 35, Computer Software 43, Computer Hardware 2,554 5,000 5,000 15,000 Capital Total 89,172 62,500 62,500 50,000 Total - Meters $ 170,395 $ 198,800 $ 198,800 $ 163,100 Edwards Aquifer Authority Adopted Budget

94 Edwards Aquifer Authority 2018 Adopted Operating Budget External & Regulatory Affairs Program: Regulatory Affairs & Water Resources Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Contractual Professional Services $ - $ - $ - $ 90,000 Professional Technical Services Total ,000 Property Services Non-Capital Furniture & Equipment 2,153 16,000 16,000 16,000 Property Services Total 2,153 16,000 16,000 16,000 Other Services Printing Public & Legal Notices 8, Meeting Expenses ,000 Other Services Total 8,962 1,250 1,250 1,750 Supplies Office Supplies Supplies Total Other Expenses Conservation Grants 200, , , ,000 Other Expenses Total 200, , , ,000 Total - Regulatory Affairs & Water Resources $ 211,115 $ 317,350 $ 317,350 $ 307,850 Edwards Aquifer Authority Adopted Budget

95 COMMUNICATIONS & DEVELOPMENT Edwards Aquifer Authority Adopted Budget

96 COMMUNICATIONS & DEVELOPMENT Elizabeth Woody Executive Director Communications & Development Sarah Valdez STEM/School Educator Vacant Development Associate Tamara Pinzon Art Direction Specialist Vacant Web/Digital Media Specialist Ann Margaret Gonzalez Communications Specialist Edwards Aquifer Authority Adopted Budget

97 COMMUNICATIONS & DEVELOPMENT The Communications & Development division takes an intentional and strategic approach to communication across all EAA operations to enhance greater cohesion, collaboration, and consistency in public information dissemination. Additionally, the division is responsible for the administration of the Edwards Aquifer Conservancy (EAC), including planning and execution of activities focused on building awareness and financial support of the EAA and its mission. COMMUNICATIONS & DEVELOPMENT PROGRAMS 2018 BUDGET General The General program area accounts for those division expenses not directly associated with a specific operational program, such as salaries and benefits, conferences, training, memberships, and subscriptions. Edwards Aquifer Conservancy The EAC solely supports and benefits the work of the EAA, including the establishment of programs and practices that protect habitat and species, sustain agricultural practices, promote water conservation, and support the development of water management solutions within the diverse Edwards Aquifer region. Public Information EAA staff strives to build understanding of its mission in the community through public informational campaigns, speakers bureaus, media relations, social media efforts, and community outreach programs throughout the region. In addition, the EAA s communications team provides as needed support and materials to aid in individual missions of all EAA programs in terms of developing and sharing program-specific information with permit holders, stakeholders, and other interested parties. $597,497 $0 $361,000 Edwards Aquifer Authority Adopted Budget

98 COMMUNICATIONS & DEVELOPMENT COMMUNICATIONS & DEVELOPMENT PROGRAMS School Education The EAA education program works with students and teachers in the region to educate them on water-related issues, specifically as they relate to the Edwards Aquifer. Funds are budgeted in this program for educational materials, web development, workshops and field trips for area teachers BUDGET $136,300 TOTAL COMMUNICATIONS & DEVELOPMENT PROGRAMS $1,094,797 Edwards Aquifer Authority Adopted Budget

99 Edwards Aquifer Authority 2018 Adopted Operating Budget Communications & Development Division Summary Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Salaries & Wages Salaries & Wages $ - $ - $ - $ 440,743 Salaries & Wages Total ,743 Employee Benefits Allowances ,200 Dental Insurance ,481 Employer FICA & Medicare ,717 Health Insurance ,054 Life & AD&D Insurance ,327 LT Disability Insurance ,322 Medical Allowance Reimbursement ,000 Retirement Contribution ,033 State Unemployment Tax ,620 Employee Benefits Total ,754 Professional Technical Services Contractual Professional Services 328, , , ,000 Displays 1, Professional Technical Services Total 330, , , ,000 Property Services Event Sponsorships 60,542 40,000 40,000 38,000 Facilities Rental 2,999 3,500 3,500 16,000 Non-Capital Furniture & Equipment Property Services Total 63,752 43,800 43,800 54,300 Other Services Conferences, Seminars & Training ,000 Meeting Expenses 1,871 2,000 2,000 2,000 Printing 40,478 45,000 45,000 40,000 Other Services Total 42,349 47,000 47,000 47,000 Supplies Office Supplies 886 2,500 2,500 2,500 Promotional Supplies 67,152 70,000 70,000 60,000 Subscriptions & Publications 5,682 6,500 6,500 3,500 Supplies Total 73,720 79,000 79,000 66,000 Total - Community & Development $ 509,853 $ 499,800 $ 499,800 $ 1,094,797 Edwards Aquifer Authority Adopted Budget

100 Edwards Aquifer Authority 2018 Adopted Operating Budget Communications & Development Program: General Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Salaries & Wages Salaries & Wages $ - $ - $ - $ 440,743 Salaries & Wages Total ,743 Employee Benefits Employer FICA & Medicare , Retirement Contribution , LT Disability Insurance , Health Insurance , Dental Insurance , State Unemployment Tax , Life & AD&D Insurance , Medical Allowance Reimbursement , Allowances ,200 Employee Benefits Total ,754 Other Services Conferences, Seminars & Training ,000 Other Services Total ,000 Total - General $ - $ - $ - $ 597,497 Edwards Aquifer Authority Adopted Budget

101 Edwards Aquifer Authority 2018 Adopted Operating Budget Communications & Development Program: Public Information Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Contractual Professional Services $ 274,472 $ 255,238 $ 255,238 $ 260, Displays 1, Professional Technical Services Total 276, , , ,000 Property Services Facilities Rental 2,999 3,500 3,500 16, Event Sponsorships 45,371 25,000 25,000 25,000 Property Services Total 48,370 28,500 28,500 41,000 Other Services Printing 21,249 25,000 25,000 25, Meeting Expenses 1,485 2,000 2,000 2,000 Other Services Total 22,734 27,000 27,000 27,000 Supplies Promotional Supplies 29,988 30,000 30,000 30, Office Supplies 726 1,500 1,500 1, Subscriptions & Publications 1,491 1,500 1,500 1,500 Supplies Total 32,205 33,000 33,000 33,000 Total - Public Information $ 379,689 $ 343,738 $ 343,738 $ 361,000 Edwards Aquifer Authority Adopted Budget

102 Edwards Aquifer Authority 2018 Adopted Operating Budget Communications & Development Program: School Education Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Contractual Professional Services $ 53,651 $ 74,762 $ 74,762 $ 75,000 Professional Technical Services Total 53,651 74,762 74,762 75,000 Property Services Event Sponsorships 15,172 15,000 15,000 13, Non-Capital Furniture & Equipment Property Services Total 15,382 15,300 15,300 13,300 Other Services Printing 19,229 20,000 20,000 15, Meeting Expenses Other Services Total 19,616 20,000 20,000 15,000 Supplies Promotional Supplies 37,164 40,000 40,000 30, Office Supplies 160 1,000 1,000 1, Subscriptions & Publications 4,191 5,000 5,000 2,000 Supplies Total 41,516 46,000 46,000 33,000 Total - School Education $ 130,163 $ 156,062 $ 156,062 $ 136,300 Edwards Aquifer Authority Adopted Budget

103 EDWARDS AQUIFER HABITAT CONSERVATION PLAN FUND Edwards Aquifer Authority Adopted Budget

104 THREATENED & ENDANGERED SPECIES SERVICES Nathan Pence Executive Director Threatened & Endangered Species Alicia Reinmund-Martinez Director HCP Jeanette A. Flores Administrative Assistant II Chad Furl Chief Science Officer HCP EAA Projects Vacant Habitat Conservation Coordinator Shaun Payne Senior Program Coordinator Bob Hall Sr Project Coordinator Kristina Tolman Habitat Conservation Coordinator Chris Abernathy Senior Contract Coordinator Note: The Chief Science Officer and Sr. Project Coordinator position budgetary dollars are included in the External & Regulatory Affairs budget. However, these positions report to the Executive Director - Habitat Conservation Program. Edwards Aquifer Authority Adopted Budget

105 EDWARDS AQUIFER THREATENED & ENDANGERED SPECIES SERVICES The Threatened & Endangered Species Services division is responsible for administering and managing all activities related to the Edwards Aquifer Habitat Conservation Plan (EAHCP). This includes managing all EAHCP related activities associated with the Edwards Aquifer Authority, the City of San Marcos, the City of New Braunfels, Texas State University, and the San Antonio Water System. THREATENED & ENDANGERED SPECIES SERVICES PROGRAMS Program Administration Program Administration includes all expenses associated with the program management team. This includes salaries and benefits, travel costs, Science Review Panel/National Academy of Sciences expenses, contractual professional services, EAHCP related meeting and miscellaneous expenses. Springflow Protection Springflow Protection includes those measures designed to protect and maintain spring flow in the Comal and San Marcos spring systems. These activities include the Regional Water Conservation Program, the VISPO, and the SAWS-ASR program. San Marcos Springs San Marcos Springs expenses include all minimization and mitigation measures as well as monitoring measures in the San Marcos spring system. This includes habitat restoration, invasive plant and animal species control, riparian restoration, water quality protection measures, enhanced water quality monitoring, and biological monitoring. Comal Springs Comal Springs expenses include all minimization and mitigation measures as well as monitoring measures in the Comal spring system. This includes habitat restoration, invasive plant and animal species control, riparian restoration, water quality protection measures, flow-split management, enhanced water quality monitoring, and biological monitoring BUDGET $1,179,750 $13,774,525 $1,218,630 $905,288 Edwards Aquifer Authority Adopted Budget

106 EDWARDS AQUIFER THREATENED & ENDANGERED SPECIES SERVICES THREATENED & ENDANGERED SPECIES SERVICES PROGRAMS Modeling & Research Modeling and research expenses for 2018 are focused on the applied research program and overhead costs at the applied research facility located at Texas State University. Expenses in this category are designed to support the adaptive management process. Refugia Refugia includes costs are primarily associated with the USFWS providing refugia operations and research on HCP species at the San Marcos Aquatic Resources Center (SMARC) and the Uvalde National Fish Hatchery (UNFH). Other expenses include annual reporting, and meetings and presentations. TOTAL THREATENED & ENDANGERED SPECIES SERVICES PROGRAMS 2018 BUDGET $450,000 $1,523,834 $19,052,027 Edwards Aquifer Authority Adopted Budget

107 Edwards Aquifer Authority 2018 Adopted Operating Budget Threatened & Endangered Species Services Division Summary Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Salaries & Wages Salaries & Wages $ 390,408 $ 511,093 $ 511,093 $ 530,503 Overtime Sick Leave 17, Vacation Leave 23, Holiday Leave 25, Compensated Absences 3, Salaries & Wages Total 460, , , ,503 Employee Benefits Allowances 3,750 4,200 4,200 4,200 Dental Insurance 2,033 2,316 2,316 2,895 Employer FICA & Medicare 33,803 39,099 39,099 40,583 Health Insurance 34,742 56,719 56,719 58,397 Life & AD&D Insurance 2,064 2,331 2,331 2,801 LT Disability Insurance 1,107 1,329 1,329 1,592 Medical Allowance Reimbursement 29,816 17,500 17,500 17,500 Pension Expense 42, Retirement Contribution ,663 46,663 49,390 State Unemployment Tax 250 1,890 1,890 1,890 Employee Benefits Total 150, , , ,248 Professional Technical Services Applied Research 412, , , ,000 Aquatic Vegetation Restoration 96, , ,000 50,000 Bank Stabilization/Permanent Access Points ,000 20,000 - Biological Monitoring 416, , , ,275 Contractual Professional Services 171, , , ,734 Decaying Vegetation Removal 14,999 15,000 15,000 15,000 Ecological Modeling 269,874 30,000 30,000 - Flow Split Management 4,307 44,150 44,150 - Gill Parasite Control 29,985 30,000 30,000 30,000 Household Hazardous Waste Management 20,091 60,000 60,000 60,000 LID/BMP Management 294, , , ,000 Litter Control/Floating 71,702 81,298 81,298 80,000 Management - Key Recreation Areas 55,968 56,000 56,000 56,000 NAS Science Review 195, , , ,750 Native Riparian Habit Restoration 53,500 55,743 55,743 20,000 NFHTC Refugia 53,600 6,074,176 6,074,176 1,519,634 Non-Native Animal Species Control 79,135 82,959 82,959 81,747 Non-Native Plant Species Control 243, , , ,836 Old Channel Restoration 124, , , ,000 Edwards Aquifer Authority Adopted Budget

108 Edwards Aquifer Authority 2018 Adopted Operating Budget Threatened & Endangered Species Services Division Summary Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Regional Municipal Water Conservation 4,617,686 4,533,175 4,533,175 4,507,750 Restoration - Riparian Native Habitat 824,803 50,000 50,000 50,000 Riparian Improvement - Riffle Beetle 23,701 25,000 25,000 35,000 SAWS ASR Leasing 4,235,225 4,701,680 4,701,680 5,615,975 SAWS ASR O&M 1,230,569 1,298,320 1,298,320 1,366,700 Sediment Removal 193, Texas Wild Rice Enhancement/Restoration 166, , , ,000 VISPO 2,208,723 2,209,000 2,209,000 2,284,100 Water Quality Monitoring 368, , , ,300 Professional Technical Services Total 16,478,231 21,569,071 21,569,071 18,241,801 Property Services Non-Capital Furniture & Equipment 790 1,515 1,515 1,515 Property Services Total 790 1,515 1,515 1,515 Other Services Conferences, Seminars & Training 643 2,500 2,500 2,500 Meeting Expenses 19,732 20,000 20,000 20,000 Printing 3,513 2,000 2,000 2,000 Property & Casualty Insurance - 4,000 4,000 4,200 Telecommunication Services 6,336 6,750 6,750 4,860 Travel/Lodging 369 3,000 3,000 3,000 Other Services Total 30,592 38,250 38,250 36,560 Supplies Field Supplies 6,000 7,000 7,000 17,900 Memberships Office Supplies 680 3,000 3,000 3,000 Supplies Total 6,680 10,500 10,500 21,400 Other Expenses Bad Debt Expense 5, Depreciation Expense 32, Other Expenses Total 37, Capital Building 442, Computer Software 14, ,000 Furniture & Fixtures 139, Water Sampling Monitoring Equipment 10,730 30,000 30,000 36,000 Capital Total 607,605 30,000 30,000 41,000 Total - Threatened & Endangered Species Services $ 17,773,351 $ 22,332,476 $ 22,332,476 $ 19,052,027 Edwards Aquifer Authority Adopted Budget

109 Edwards Aquifer Authority 2018 Adopted Operating Budget Threatened & Endangered Species Services Summary, by Program Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Program Administration $ 1,041,853 $ 1,179,750 $ 1,179,750 $ 1,179,750 Springflow Protection Regional Municipal Water Conservation 4,617,686 4,533,175 4,533,175 4,507,750 SAWS ASR Leasing 4,235,225 4,701,680 4,701,680 5,615,975 SAWS ASR O&M 1,230,569 1,298,320 1,298,320 1,366,700 VISPO 2,208,723 2,209,000 2,209,000 2,284,100 Springflow Protection Total 12,292,203 12,742,175 12,742,175 13,774,525 San Marcos Springs Bank Stabilization/Permanent Access Points ,000 20,000 - Biological Monitoring 208, , , ,137 Field Supplies 3,000 3,500 3,500 8,100 Household Hazardous Waste Management 20,091 30,000 30,000 30,000 LID/BMP Management 199, , , ,000 Litter Control/Floating Vegetation 50,877 51,298 51,298 50,000 Management - Key Recreation Areas 55,968 56,000 56,000 56,000 Non-Native Animal Species Control 26,160 27,959 27,959 26,747 Non-Native Plant Species Control 243, , , ,836 Restoration - Riparian Zones 53,500 55,743 55,743 20,000 Sediment Removal 193, Telecommunication Services 3,168 3,375 3,375 2,160 Texas Wild Rice Enhancement/Restoration 166, , , ,000 Water Quality Monitoring 184,492 72,850 72, ,650 Water Sampling Monitoring Equipment 5,365 18,000 18,000 10,000 San Marcos Springs Total $ 1,414,494 $ 1,032,363 $ 1,032,363 $ 1,218,630 Edwards Aquifer Authority Adopted Budget

110 Edwards Aquifer Authority 2018 Adopted Operating Budget Threatened & Endangered Species Services Summary, by Program Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Comal Springs Aquatic Vegetation Restoration $ 96,035 $ 100,000 $ 100,000 $ 50,000 Biological Monitoring 208, , , ,138 Decaying Vegetation Removal 14,999 15,000 15,000 15,000 Field Supplies 3,000 3,500 3,500 9,800 Flow Split Management 4,307 44,150 44,150 - Gill Parasite Control 29,985 30,000 30,000 30,000 Household Hazardous Waste Management - 30,000 30,000 30,000 LID/BMP Management 95,088 10,000 10, ,000 Litter Control/Floating Vegetation 20,825 30,000 30,000 30,000 Non-Native Animal Species Control 52,975 55,000 55,000 55,000 Old Channel Restoration 124, , , ,000 Restoration - Riparian Zones 824,803 50,000 50,000 50,000 Riparian Improvement - Riffle Beetle 23,701 25,000 25,000 35,000 Telecommunication Services 3,168 3,375 3,375 2,700 Water Quality Monitoring 184,310 72,850 72, ,650 Water Sampling Monitoring Equipment 5,365 12,000 12,000 26,000 Comal Springs Total 1,691, , , ,288 Modeling & Research Applied Research 412, , , ,000 Computer Software 14, ,000 Ecological Modeling 269,874 30,000 30,000 - Modeling & Research Total 697, , , ,000 Refugia Building 442, Furniture & Fixtures 139, NFHTC Refugia 53,600 6,074,176 6,074,176 1,519,634 Property & Casualty Insurance - 4,000 4,000 4,200 Refugia Total 635,575 6,078,176 6,078,176 1,523,834 Total - Threatened & Endangered Species Services $ 17,773,351 $ 22,332,476 $ 22,332,476 $ 19,052,027 Edwards Aquifer Authority Adopted Budget

111 Edwards Aquifer Authority 2018 Adopted Operating Budget Threatened & Endangered Species Services Program: Program Administration Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Salaries & Wages Salaries & Wages $ 390,408 $ 511,093 $ 511,093 $ 530, Overtime Sick Leave 17, Vacation Leave 23, Holiday Leave 25, Compensated Absences 3, Salaries & Wages Total 460, , , ,503 Employee Benefits Employer FICA & Medicare 33,803 39,099 39,099 40, Retirement Contribution ,663 46,663 49, LT Disability Insurance 1,107 1,329 1,329 1, Health Insurance 34,742 56,719 56,719 58, Dental Insurance 2,033 2,316 2,316 2, State Unemployment Tax 250 1,890 1,890 1, Life & AD&D Insurance 2,064 2,331 2,331 2, Medical Allowance Reimbursement 29,816 17,500 17,500 17, Allowances 3,750 4,200 4,200 4, Pension Expense 42, Employee Benefits Total 150, , , ,248 Professional Technical Services Contractual Professional Services 171, , , , NAS Science Review 195, , , ,750 Professional Technical Services Total 366, , , ,484 Property Services Non-Capital Furniture & Equipment 790 1,515 1,515 1,515 Property Services Total 790 1,515 1,515 1,515 Other Services Printing 3,513 2,000 2,000 2, Conferences, Seminars & Training 643 2,500 2,500 2, Meeting Expenses 19,732 20,000 20,000 20, Travel/Lodging 369 3,000 3,000 3,000 Other Services Total 24,256 27,500 27,500 27,500 Supplies Office Supplies 680 3,000 3,000 3, Memberships Supplies Total 680 3,500 3,500 3,500 Other Expenses Bad Debt Expense 5, Depreciation Expense 32, Other Expenses Total 37, Total - Program Administration $ 1,041,853 $ 1,179,750 $ 1,179,750 $ 1,179,750 Edwards Aquifer Authority Adopted Budget

112 Edwards Aquifer Authority 2018 Adopted Operating Budget Threatened & Endangered Species Services Program: Springflow Protection Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services SAWS ASR Leasing $ 4,235,225 $ 4,701,680 $ 4,701,680 $ 5,615, SAWS ASR O&M 1,230,569 1,298,320 1,298,320 1,366, Regional Municipal Water Conservation 4,617,686 4,533,175 4,533,175 4,507, VISPO 2,208,723 2,209,000 2,209,000 2,284,100 Professional Technical Services Total 12,292,203 12,742,175 12,742,175 13,774,525 Total - Springflow Protection $ 12,292,203 $ 12,742,175 $ 12,742,175 $ 13,774,525 Edwards Aquifer Authority Adopted Budget

113 Edwards Aquifer Authority 2018 Adopted Operating Budget Threatened & Endangered Species Services Program: San Marcos Springs Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Biological Monitoring $ 208,468 $ 204,138 $ 204,138 $ 204, Water Quality Monitoring 184,492 72,850 72, , Texas Wild Rice Enhancement/Restoration 166, , , , Sediment Removal 193, Non-Native Plant Species Control 243, , , , Bank Stabilization/Permanent Access Points ,000 20, LID/BMP Management 199, , , , Litter Control/Floating Vegetation 50,877 51,298 51,298 50, Household Hazardous Waste Management 20,091 30,000 30,000 30, Management - Key Recreation Areas 55,968 56,000 56,000 56, Non-Native Animal Species Control 26,160 27,959 27,959 26, Restoration - Riparian Zones 53,500 55,743 55,743 20,000 Professional Technical Services Total 1,402,961 1,007,488 1,007,488 1,198,370 Other Services Telecommunication Services 3,168 3,375 3,375 2,160 Other Services Total 3,168 3,375 3,375 2,160 Supplies Field Supplies 3,000 3,500 3,500 8,100 Supplies Total 3,000 3,500 3,500 8,100 Capital Water Sampling Monitoring Equipment 5,365 18,000 18,000 10,000 Capital Total 5,365 18,000 18,000 10,000 Total - San Marcos Springs $ 1,414,494 $ 1,032,363 $ 1,032,363 $ 1,218,630 Edwards Aquifer Authority Adopted Budget

114 Edwards Aquifer Authority 2018 Adopted Operating Budget Threatened & Endangered Species Services Program: Comal Springs Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Biological Monitoring $ 208,515 $ 204,137 $ 204,137 $ 204, Water Quality Monitoring 184,310 72,850 72, , Old Channel Restoration 124, , , , Flow Split Management 4,307 44,150 44, Aquatic Vegetation Restoration 96, , ,000 50, Decaying Vegetation Removal 14,999 15,000 15,000 15, Riparian Improvement - Riffle Beetle 23,701 25,000 25,000 35, Gill Parasite Control 29,985 30,000 30,000 30, LID/BMP Management 95,088 10,000 10, , Litter Control/Floating Vegetation 20,825 30,000 30,000 30, Household Hazardous Waste Management - 30,000 30,000 30, Non-Native Animal Species Control 52,975 55,000 55,000 55, Restoration - Riparian Zones 824,803 50,000 50,000 50,000 Professional Technical Services Total 1,680, , , ,788 Other Services Telecommunication Services 3,168 3,375 3,375 2,700 Other Services Total 3,168 3,375 3,375 2,700 Supplies Field Supplies 3,000 3,500 3,500 9,800 Supplies Total 3,000 3,500 3,500 9,800 Capital Water Sampling Monitoring Equipment 5,365 12,000 12,000 26,000 Capital Total 5,365 12,000 12,000 26,000 Total - Comal Springs $ 1,691,905 $ 820,012 $ 820,012 $ 905,288 Edwards Aquifer Authority Adopted Budget

115 Edwards Aquifer Authority 2018 Adopted Operating Budget Threatened & Endangered Species Services Program: Modeling & Research Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services Ecological Modeling $ 269,874 $ 30,000 $ 30,000 $ Applied Research 412, , , ,000 Professional Technical Services Total 682, , , ,000 Capital Computer Software 14, ,000 Capital Total 14, ,000 Total - Modeling & Research $ 697,321 $ 480,000 $ 480,000 $ 450,000 Edwards Aquifer Authority Adopted Budget

116 Edwards Aquifer Authority 2018 Adopted Operating Budget Threatened & Endangered Species Services Program: Refugia Account No. Description Actual Amended Estimated Adopted Expenses Budget Expenses Budget Professional Technical Services NFHTC Refugia $ 53,600 $ 6,074,176 $ 6,074,176 $ 1,519,634 Professional Technical Services Total 53,600 6,074,176 6,074,176 1,519,634 Other Services Property & Casualty Insurance - 4,000 4,000 4,200 Other Services Total - 4,000 4,000 4,200 Capital Building 442, Furniture & Fixtures 139, Capital Total 581,975 Total - Refugia $ 635,575 $ 6,078,176 $ 6,078,176 $ 1,523,834 Edwards Aquifer Authority Adopted Budget

117 CAPITAL BUDGET Edwards Aquifer Authority Adopted Budget

118 Capital Budget/Plan Summary Capital expenditures are defined by the EAA as equipment, fixtures, equipment, etc., whose purchase price per unit is $1,000 or more and has a useful life expectancy of more than one year. Capital spending for 2018 is budgeted at $749,607. A detailed summary of these expenditures is found following this summary. Most capital expenses of the EAA are routine and have no significant impact on the current or future operating budget. However, notable capital expenditures scheduled for 2018 are described below. Vehicles. The budget inlcudes funding in the amount of $72,000 for two vehicles (one new, one replacement) in support of increased site visits related to recently amended water quality rules and easement monitoring. Water Quality Monitoring Equipment. Funding in the amount of $110,000 is included in the 2018 capital budget for this expenditure. Each year the EAA incurs capital expenses related to water quality and monitoring equipment. The EAA maintains a network of water level monitoring wells equipped with devices that measure water levels and in some cases additional information at 15-minute intervals or less. As the conceptual model of how the aquifer works is refined, areas of additional data collection are identified and addressed. Water level monitoring is a significant part of the effort to refine the EAAs understanding of how the aquifer works. Water level data are also extremely important in the hydrological modeling process. Some number of these instruments are repaired or replaced annually, while some new instruments are purchased to expand the monitoring effort into areas where data gaps exist. Other equipment related to this capital expense include telemetry systems for transmitting data to a website where it can subsequently be harvested and incorporated into the EAA database, water quality sensors, well sampling pumps and equipment, and laboratory equipment. Modeling and Data Management. Edwards Aquifer Authority has a need for a Data Management System that supports the organization's regulatory and scientific goals. The 2018 capital budget includes $116,107 for this expenditure. The DMS will service the Permitting, Metering, Well Construction/Registration, Recharge Zone Protection, Conservation, and Compliance departments which depend on the same data sets to perform their duties. Other departments and groups, not listed, depend on this data to achieve additional scientific and regulatory goals. The DMS will likely be developed over multiple years. Edwards Aquifer Authority Adopted Budget

119 Edwards Aquifer Authority 2018 Adopted Operating Budget Capital Budget Actual Amended Estimated Adopted Program Description Expenses Budget Expenses Budget Authority Operations Building $ - $ 40,000 $ 40,000 $ - Authority Operations Improvements other than Building - 140, ,000 - Authority Operations Furniture & Fixtures 12,815 5,000 5,000 30,000 Authority Operations Vehicles 31,207 72,000 72,000 72,000 Authority Operations Office Equipment - 10,500 10,500 10,500 Authority Operations Note Principal 75,000 75,000 75,000 80,000 Human Resources Computer Hardware 1, Information Technology Furniture & Fixtures 7,593 1, Information Technology Computer Software 9, , , ,107 Information Technology Computer Hardware 63,542 73,000 70, ,000 AMS - General Office Equipment - 10,000 10,000 - Aquifer Science Research Computer Software 1,500 8,000 8,000 8,000 Aquifer Science Research Well Logging Equipment 134,027 5,000 5,000 5,000 Aquifer Science Research Water Sampling Monitoring Equipment 49,221 45,000 45,000 40,000 Modeling & Data Management Computer Software 33,839 30,000 30,000 26,000 Modeling & Data Management Computer Hardware - 4,000 4,000 2,000 Modeling & Data Management Water Sampling Monitoring Equipment 29,349 35,000 35,000 35,000 Aquifer Protection Computer Software 7,500 2,500 2,500 11,000 Groundwater Protection Water Sampling Monitoring Equipment - 5,000 5,000 10,000 Remote Gauging Remote Monitoring Equipment - 45,000 45, ,000 ERA - General Computer Hardware - 3,000 3,000 3,000 Meters Computer Software 43, Meters Computer Hardware 2,554 5,000 5,000 15,000 Meters Water Meters 42,668 57,500 57,500 35,000 T&ESS - San Marcos Springs Water Sampling Monitoring Equipment 5,365 18,000 18,000 10,000 T&ESS - Comal Springs Water Sampling Monitoring Equipment 5,365 12,000 12,000 26,000 T&ESS - Modeling & Research Computer Software 14, ,000 T&ESS - Refugia Building 442, T&ESS - Refugia Furniture & Fixtures 139, $ 1,153,468 $ 857,000 $ 869,676 $ 749,607 Edwards Aquifer Authority Adopted Budget

120 APPENDICES Edwards Aquifer Authority Adopted Budget

121 STRATEGIC PLAN Edwards Aquifer Authority Adopted Budget

122 Edwards Aquifer Authority Adopted Budget

123 TABLE OF CONTENTS Executive Summary... 1 Historical Background... 2 Strategic Planning Process... 2 Vision... 3 Mission Statement... 4 Core Values... 4 Strategic Goals... 5 Aquifer Management and Protection: Goal A: Sustain Federally Protected Aquifer-Dependent Species... 6 Goal B: Ensure Effective Management of the Edwards Aquifer... 8 Goal C: Identify and Address Recharge Initiatives for the Edwards Aquifer Goal D: Prevent the Pollution of the Aquifer Organizational Effectiveness Goal E: Conduct Research that Enhances Understanding and Effective Management of the Aquifer Goal F: Develop an Inclusive, Service-Oriented Organization Goal G: Build Shared Value in the EAA Mission Goal H: Sustain Fiscal Stability Appendix A: Glossary of Acronyms and Abbreviations... A-1 Edwards Aquifer Authority Adopted Budget

124 EXECUTIVE SUMMARY As the Edwards Aquifer Authority marks its 20 th anniversary in 2016, the agency stands at a crossroads in its evolution. With a myriad of contentious issues and foreboding challenges generally in the past, the EAA now has an opportunity to take the experiences of its first 20 years of operation and use them to carve out a new course for is future. It s a course that repositions the agency with its stakeholders a nd redefines i ts r ole a s a regulatory body t o c ultivate greater c ollaboration, s hared stewardship, and common understanding around the core mission of manage, enhance and protect the Edwards Aquifer system. This strategic plan prioritizes such a path to the future for the EAA over the next five years. A num ber of ke y f actors a nd c onsiderations i nfluence t his f ive-year s trategic p lan. M ost notably reflected is an organizational commitment to fostering a higher level of shared value in the core mission of the EAA through three primary guiding principles -- service, solutions, and stability. These i deals a re w oven t hrough t he E AA s s trategic g oals a s out lined i n t his pl an a nd w ill b e demonstrated t hrough: r esponsible s tewardship of f inances a nd r esources; pr udent pol icy development and management that limits legal exposure and is respectful of social and economic impacts; and practical and well-reasoned programming and practices that foster collaboration and partnership within the EAA and with the people it regulates and serves. A num ber of external a nd internal f actors d emand c onsideration i n the de velopment a nd implementation of the EAA s strategic initiatives. As the chief steward of the Edwards Aquifer, the EAA must continually evaluate its multiple priorities to determine which programs best help meet the agency s goals in light of various influences and constraints that may change over time. These include factors such as: Fiscal limitations: as a public entity funded by user fees, the EAA must remain vigilant in efforts to maintain a reasonable and stable aquifer management fee structure that continually demonstrates value to fee pa yers and to the greater public. T his is achieved in large part through long term financial forecasting, evaluation of programs and policy effectiveness, and cost analysis of organizational needs and resources. Political considerations: as a political subdivision of the state of Texas, the EAA bears the responsibility o f de monstrating good governance i n t he m anagement of t he A quifer t o t he greater public and the political process that led to the organization s creation. Transparency, fairness, and well-reasoned regulation and business practices must continue to define the way the EAA goes about doing its work. Doing so engenders trust and agreement, and ultimately support of the EAA mission. Legal realities: having withstood various legal challenges over the first 20 years of operation, the EAA must continue to limit i ts legal exposure and remain watchful of potential risks, especially those around issues related to the agency s regulatory functions. Accordingly, the agency w ill b e w ell s erved b y ma intaining open c ommunication w ith its r egulated communities, periodically evaluating programs for effectiveness, soundness and relevance to mission, and, where appropriate, stressing awareness, education and collaborative solutions. Edwards Aquifer Authority Adopted Budget

125 In summary, the main idea underlying this plan is that of transforming the EAA by prioritizing the importance of people, practical programming, and effective processes to form an organizational culture that invites and engages stakeholders as partners in the EAA mission. HISTORICAL BACKGROUND The EAA is a regulatory agency charged with managing, conserving, preserving, protecting, and increasing the recharge of and preventing waste and pollution, of the Edwards Aquifer in an eightcounty r egion, i ncluding a ll of U valde, M edina a nd B exar c ounties, pl us portions of A tascosa, Caldwell, Guadalupe, Comal and Hays counties. The EAA was created by the Texas Legislature in 1993 with the passage of the Edwards Aquifer Authority Act (Act) to preserve and protect this unique groundwater resource. However, legal challenges prevented the EAA from operating until June 28, The Act created a 17-member board of directors that sets policy. The board consists of 15 elected members from the eight-county region, and two non-voting appointed members to carry out the d uties s et out i n t he A ct. T he A ct a lso e stablished t he S outh C entral T exas W ater A dvisory Committee (SCTWAC) made up of representatives from downstream counties and within the EAA s boundaries to interact with the EAA on how its actions affect downstream users. As a result of the Act, the EAA performs a number of major functions. These include: Sustaining the aquifer as a natural resource; Sustaining the diverse economic and social interests dependent on the aquifer for water supply; Protecting terrestrial and aquatic life; Protecting domestic and municipal water supplies; and Providing effective control of the aquifer to protect the operation of existing industries and the economic development of the state. In 2007, t he Legislature a mended t he A ct t o, a mong ot her t hings, r equire a r ecovery implementation p rogram f or s pecies l isted as t hreatened o r en dangered u nder f ederal l aw an d associated w ith t he a quifer. T hrough this pr ogram -- a f acilitated, co nsensus-based stakeholder process -- an Edwards Aquifer Habitat Conservation Plan (EAHCP) was developed and subsequently approved by U.S. Fish and Wildlife Service (USFWS). Approval of this plan resulted in the issuance of a 15-year Incidental Take Permit in 2013 b y USFWS to the EAA, San Antonio Water System (SAWS), Texas State University, the City of San Marcos, and the City of New Braunfels, providing the region protection in the event incidental take of protected species occurs. The EAHCP requires certain conservation measures to be implemented and sustained over the life of the Incidental Take Permit, beginning in 2013 and continuing until STRATEGIC PLANNING PROCESS Strategic planning is one of the most effective approaches to ensuring maximum efficiency and effectiveness in reaching targeted organizational goals, especially in an ever-changing political and socio-economic environment of diverse interests and backgrounds. Strategic planning involves Edwards Aquifer Authority Adopted Budget

126 the development of a collective vision, mission, and corresponding strategic themes and goals. As a result, organizational activities and initiatives take on a clear focus and accomplishing important goals becomes more attainable. The Edwards Aquifer Authority (EAA), governed by a board of 15 elected and two appointed directors and operated by a medium-sized professional staff, is tasked with the mission of managing, enhancing, and protecting south-central Texas primary water resource, the Edwards Aquifer. This multi-faceted mission focuses on m anaging withdrawals from the aquifer, including during critical periods of dr ought, e nhancing t he a quifer s ability to s upply t he w ater ne eds of a n e conomically diverse region, and protecting the aquifer as a vital resource and ecosystem, which supports human life a nd pr ovides ha bitat t o a num ber of f ederally protected s pecies. T herefore, b alance b etween providing certainty to the region s water needs and protecting the resource underlies the EAA mission. To this end, this Strategic Plan is designed to serve as a blueprint for meeting the EAA s legislative mandate and overall mission. The plan, which covers a five-year period, is reviewed annually. Prior to 2016, t he EAA Strategic Plan was a three-year rolling plan, reviewed and updated annually. In an effort to take a longer view of those issues critical to the EAA s core mission, this plan incorporates a five-year outlook. The EAA Board will continue to review and modify the plan (as necessary) annually. Major modifications to the EAA s goals may be considered prior to the end of the five-year cycle. Each year, consultants and EAA staff review the strategic goals with the Board in light of the previous year s progress in achieving those goals. In 201 6, the Board will hold a one -day w ork session in addition to its annual three-day summer work session to discuss topics associated with staff s implementation of the strategic plan. VISION A vision is an articulation of the organizational culture, structure, and direction. It represents an organization s targeted destination and includes the ability of members to perceive changes in the organization. As a result, the vision is a comprehensive description of how the organization will look in the future. Following is the EAA vision: The Edwards Aquifer Authority is a regional water management agency that regulates with integrity, transparency, respect, and commitment to sustainability of the aquifer. Edwards Aquifer Authority Adopted Budget

127 MISSION STATEMENT A mission statement represents a brief overview of an organization s purpose, identification of its clients, and statement of broad outcomes. It galvanizes the organizational culture and forms the organization s philosophy and direction. The EAA mission statement is presented below: The Edwards Aquifer Authority manages, enhances, and protects the Edward Aquifer system. CORE VALUES The core values of the EAA are aspirational statements of how the people that comprise the agency view themselves and their role within the mission and vision of the organization as a whole. These core values, identified by staff through a deliberative and shared process, speak to standards of self-imposed accountability and expectation in attitude and conduct, which are to be demonstrated in the EAA s daily work. They are not descriptions of the work itself or the strategies employed to accomplish the overall mission, but they serve as foundational guideposts for how the EAA will go about accomplishing its work. T he EAA core values underlie the agency s work, setting ideals of how s taff w ill i nteract w ith e ach ot her, w ith c ustomers a nd s takeholders, a nd w ith t he di verse communities that their work touches every day. Stewardship Through our c ore va lue of S tewardship, t he E AA m anages, enhances, protects, and studies the Edwards Aquifer system to ensure the long term sustainability of the resource for our communities and the environment. Respect Respect is to regard another or to be regarded with deference, esteem, and di gnity. W e r espect a ll of our s takeholders, e xternal a nd i nternal customers, treating them the way we would want to be treated, recognizing that actions express values. Professionalism Professionalism means having an interest in and a desire to do a j ob w ell, s howing c ompetence, s kill, a nd a positive a ttitude t owards bot h t he profession and the workplace. Collaboration Collaboration means working together and communicating to ensure information is shared equally throughout the organization and the community we serve. Science Science is the fundamental tool used to understand the natural systems of t he E dwards A quifer a nd i s t he c ornerstone in a ll our e fforts. S ound s cientific principles and practices provide a foundation for management strategies. Integrity Integrity is the adherence to a code or standard of values. Integrity is what we do, what we say, and what we say we do. Edwards Aquifer Authority Adopted Budget

128 STRATEGIC GOALS A strategic goal is a broadly-defined planned organizational accomplishment or outcome. A set of strategic goals becomes an organization s outward expression of commitment to its mission. Strategic goals provide the guidance necessary for developing concrete action steps and tasks aimed at addressing organizational issues over a prescribed period of time. The EAA has eight major strategic goals that have been identified as the focus of the agency from 2016 through These goals are categorized into two thematic areas: aquifer management and protection; and organizational effectiveness. Implementation of these strategic goals is associated general organizational outcomes that may result from goal implementation. AQUIFER MANAGEMENT AND PROTECTION Aquifer management and pr otection are t he t wo f undamental obj ectives of t he E AA s statutory mission and they are prominently reflected in the agency s strategic goals. Underscoring the significance of these goals is the region s anticipated population growth over the next 50 years. This increased d emand for w ater reinforces the importance of the EAA s role i n effectively m anaging withdrawals from the aquifer as mandated by statute and the requirement to maintain compliance with the Incidental Take Permit issued by the USFWS to address the needs of natural habitats of federally protected species. Likewise, as population grows, protecting the quality of water in the aquifer will remain extremely critical to the region. Edwards Aquifer Authority Adopted Budget

129 Goal A. Sustain Federally Protected Aquifer-Dependent Species The EAA will work cooperatively with the USFWS and EAHCP Permittees and stakeholders to continue to implement and administer the EAHCP over the 15-year term of the Incidental Take Permit issued in March T he goal of the EAHCP is to ensure the protection of the Covered Species associated with the aquifer through a repeat of the drought of record and in so doing provide certainty to the region that the aquifer will remain a sustainable and viable water resource under local regulation. The following Strategic Priorities describe how the EAA will achieve this goal: 1. Take n ecessary measures t o en sure continual co mpliance w ith the I ncidental Take Permit issued by USFWS. In coordination with the EAHCP Permittees, implement all conservation measures in Chapter 5 and research activities in Chapter 6 of the EAHCP. Maintain effective communication and c oordination with U SFWS to e nsure successful implementation of the EAHCP. 2. Fully fund and implement the required programs of the EAHCP, while building the EAHCP reserve f und as r equired by the Funding a nd M anagement Agreement (FMA). Continue to fund the EAHCP Permittee Annual Funding Applications required to complete measures in EAHCP Chapter 5 and 6; using Table 7.1 of the EAHCP as a reference for the EAA obligated funding amount. Ensure effective f inancial stewardship of EAHCP funds through m ulti-layered approach including: staff review, Science Committee review, EAHCP Permittee and Implementing Committee Review, and ultimately EAA Board approval. Adjust, as may be necessary, EAHCP Program Aquifer Management Fees to fund required E AHCP activities a nd c ontribute to the E AHCP r eserve w ithout exceeding the EAHCP reserve cap of $46 million established by the FMA. This should be accomplished with the intent of minimizing adjustments to the overall Aquifer M anagement Fee (AMF) assessed from year to year to achieve, to the extent possible, a consistent overall AMF. 3. Implement m easures necessary to en roll and m aintain targeted Edwards groundwater into the San Antonio Water System Aquifer Storage and Recovery facility ( ASR), the V oluntary I rrigation Sus pension P rogram ( VISPO), a nd Regional Water Conservation Program (RWCP). Explore all opportunities to achieve the protections to be provided b y the ASR program, w hich i ncludes: s torage of regional w ater in t he A SR a nd c ontrol of 50,000 acre-feet of Edwards permits during a repeat of the drought of record. Continue existing efforts to maintain full enrollment of VISPO. Continue to work to find opportunities with EAA communities and EAA permit holders to develop effective water conservation programs. Edwards Aquifer Authority Adopted Budget

130 4. Establish f ully f unctioning refugia f or t he Edwards A quifer H abitat Conservation Plan Covered Species. Explore all viable options to secure fully functioning refugia facilities for the term of the Incidental Take Permit (ITP). Maintain short-term contracts for refugia salvage stocks and research, to maintain compliance with the ITP, until such time as long-term, fully funded refugia are in place. 5. Build greater understanding of value of the EAHCP among key stakeholders and general public. Develop proactive approach to communicate the purpose, activities, and benefits of the EAHCP. Maintain the EAHCP website and EAHCP listserv to ensure the general public has access to all EAHCP information and processes. Work with local and regional media to further understanding of EAHCP. 6. Facilitate and conduct all activities associated with Phase II Strategic Adaptive Management. Evaluate/prioritize research initiatives as outlined in Chapter 6 of the EAHCP. Compile a ll i nformation, da ta, a nd r esearch needed b y t he Implementing Committee, S cience C ommittee, and S takeholder C ommittee to make th e mo st scientifically informed decision possible for Phase II. Facilitate the EAHCP Committees to achieve consensus on a Phase II decision. Communicate consistently with USFWS regarding to Phase II decisions. Work w ith t he N ational A cademy o f S ciences t o p repare al l r eports r elated t o Phase II. Utilize the updated model and newly developed models to establish the need or lack thereof, for a Phase II conservation measure. As required by the FMA and if necessary, establish a funding mechanism for Phase II conservation measures of the EAHCP. Edwards Aquifer Authority Adopted Budget

131 Goal B. Ensure Effective Management of the Edwards Aquifer The EAA manages groundwater withdrawals from the aquifer for all conditions and levels. The EAA s challenge is to administer appropriate management strategies designed to complement the natural system while optimizing beneficial use of the aquifer. For the plan period, such strategies include water conservation incentive programs, a critical period program, and an initiative to analyze the effects of groundwater withdrawal permit transfers. The plan also addresses the EAA s efforts to continually improve e fficiency i n t he a dministration a nd pr ocessing of p ermits and t o i mplement programs and procedures that foster the regulated community s understanding of the EAA s permit management system, including staff facilitation of permit-related transactions. The following Strategic Priorities describe how the EAA will achieve this goal: 1. Continue to implement the Groundwater Conservation Plan (GCP) program as an incentive-based/service-oriented program. Use t he GCP to b ecome a r esource f or t ime t ested an d em erging co nservation practices. Provide expert advice/consultation to permit holders desiring to find new ways to conserve groundwater or achieve access to available state resources. Continue building working relationship with Texas Water Development Board for funding conservation programs and facilitating outreach. 2. Continue to implement the EAA groundwater conservation grant program in a manner that supports the EAA s core mission. Continue t o us e the E AA s water conservation g rant pr ogram t o i dentify and f und conservation-related needs of EAA permit holders and exempt well owners. 3. Improve d atabase management s ystem(s) f or tracking an d s haring of p ermit information internally and externally. Continue redevelopment of EAA s enterprise database to allow more efficient data storage and retrieval. Develop website applications to serve permit holders online. 4. Use numerical groundwater models to further evaluate the efficacy of existing management strategies, utilizing the five year modeling plan Continue to use the iterative process of modeling to prioritize data collection and research efforts b y i dentifying t he a quifer p roperties a nd i nput pa rameters t hat have the greatest influence on model predictive ability. In year 2020, assess t he f easibility of upd ating m odel c ode(s) b ased on improvements to the conceptual model derived from data collection and research efforts, u ncertainty assessment, an d ex perience gained w ith current g eneration numerical models. Edwards Aquifer Authority Adopted Budget

132 5. Review and rev ise ( if necessary) the critical period m anagement p rogram to identify ways in which to make its requirements more effective and efficient. Assess and identify potential alternative approaches to administering the existing critical period program to achieve greater efficiency and effectiveness. Consider possible c hanges t o the C ritical P eriod M anagement P lan to s implify compliance, while maintaining the intent of the EAA Act. Evaluate and implement, as necessary, more effective methods of communication with permit holders regarding critical period notices and reporting. 6. Ensure a n ef ficient w ater f low m eter management p rogram throughout t he region. Continue to implement an administrative process to assimilate all use information collected from automated meter readings. Bring all automated meter reading volunteers online and begin actions to improve the program s communication infrastructure. Evaluate potential options regarding meter type for program implementation. Continue to ma intain e xisting EAA-owned m eters a nd r equire a ccuracy verification on municipal and industrial meters. Edwards Aquifer Authority Adopted Budget

133 Goal C. Identify and Address Recharge Initiatives for the Edwards Aquifer The c urrent E AA r echarge p rogram i ncludes op eration a nd m aintenance of f our r echarge structures in Medina County, three in the Nueces River watershed and one in the San Antonio River watershed. T he existing recharge structures were constructed by the Edwards Underground Water District (EUWD) in the 1970s and 1980s. E ach of the structures requires a state permit allowing specific amounts of enhanced recharge. Permitted amounts range from 520 acre-feet/year, to 1185 acre-feet/year. Historically, in wet years the structures exceed their permitted amounts whereas in dry years they provide no enhanced recharge. Therefore, a significant part of the recharge program in the coming 12- to 18-month period will center around improving management and operation of these structures within state requirements. In a ddition, t he E AA will s eek t o bui ld on r elationships a nd pa rtnerships t o f urther e xplore opportunities to leverage resources in support of programs and activities that preserve the quantity and quality of naturally occurring recharge. This will include continued cooperation with the City of San Antonio (CoSA), to provide annual easement inspections for approximately 135,000 a cres of recharge zone land in Bexar, Medina, and Uvalde counties. With the assistance provided by the EAA, these properties will remain undeveloped in p erpetuity. Furthermore, the number o f acres i n t he program is anticipated to grow by several thousand over the coming five years. Other efforts include developing a co operative ag reement w ith t he Natural R esource C onservation S ervice ( NRCS) wherein t he E AA will s ponsor a S tate R esource C oncern ( SRC). If approved i n l ate 2015, t his program w ill potentially contribute f unding for pr ojects s uch a s: m aintenance of s tream be ds, sediment capture, and erosion control as well as other projects in the recharge and contributing zones of the aquifer. The following Strategic Priorities describe how the EAA will achieve this goal: 1. Evaluate rech arge s trategies and f acilitate bo ard c onsensus r egarding a l ongterm recharge plan. Assess fiscal, regulatory, and operational considerations of recharge structures. Analyze the role of recharge in relation to a watershed masterplan. Determine, and address any necessary refinements to the EAA s recharge program. 2. Continue to facilitate the development of aquifer recharge, storage, and recovery projects. Develop a ppropriate c ooperative a greements a nd c ontracts with p olitical subdivisions to f acilitate th e d evelopment o f ASR projects, while ma intaining proper stewardship of the Edwards Aquifer system. Identify and de velop a ppropriate r esearch goals to e nsure aquifer pr otection i n development of ASR projects 3. Further ev aluate rech arge es timation m ethodologies to better understand regional water balance. Edwards Aquifer Authority Adopted Budget

134 Develop methods for estimating regional evapotranspiraton rates for use as HSPF model input. Utilize the results of the MODFLOW model un certainty analyses to assess the impacts of uncertainty associated with recharge estimation methodologies. Continue the iterative approach f or i mproving EAA s m odeling c apability, to ensure revisions to the conceptual model are incorporated into future numerical model code updates. Edwards Aquifer Authority Adopted Budget

135 Goal D. Prevent the Pollution of the Aquifer The Act provides a general charge to the EAA to prevent the pollution of water in the aquifer. Specifically, the Act provides the EAA with the authority to close abandoned, wasteful, or dangerous wells; requires the E AA to is sue w ell c onstruction p ermits f or w hich t he E AA ha s de veloped appropriate standards designed to prevent contaminants from reaching the aquifer via well boreholes, and requires the EAA to protect groundwater through the control of fires on t he recharge zone in coordination w ith l ocal fire d epartments an d f ire m arshals. B eyond t hese m easures, t he E AA administers locally adopted rules that regulate the storage of certain substances on the recharge zone that c ould be ha rmful t o w ater qua lity i f a llowed t o be r eleased i nto t he e nvironment through catastrophic events. This includes preventive containment requirements for underground and above ground s torage t anks, and s pill r eporting a nd c ontainment r equirements f or r egulated s ubstances above certain minimum thresholds. Additionally, non-regulatory EAA efforts such as inspections of stormwater structures on the recharge zone and participation as a partner in the administration of the City of San Antonio s Edwards Aquifer Protection Program help in the prevention of pollution by preventing non-point source pollution on developed lands and by preserving undeveloped land on the recharge zone in its natural state. Generally, water quality/aquifer protection programs are time- and resource-intensive. Therefore, the EAA has identified the need to assess its programs in this area to determine effectiveness relative to cost and to prioritize these programs The following Strategic Priorities describe how the EAA will achieve this goal: 1. Continue c ollaborative relations w ith a gencies w ith o verlapping jurisdiction or common interests on the recharge and contributing zones to more effectively and efficiently prevent pollution. Continue to develop rapport with area regulatory agencies to better coordinate the regulatory programs of each entity. Continue t o explore potential collaborative regulatory efforts to s implify compliance and maximize resources. Develop a nd i mplement pa rtnerships w ith or ganizations s uch a s t he Natural Resource Conservation Service (NRCS), local Farm Bureaus, and stakeholders to maximize EAA s ability to assist in priority areas of aquifer protection. Continue to support the CoSA Edwards Aquifer Protection Program to reduce new risks to the system in the future and help to maintain historical recharge to the system. 2. Continue well protection effort across region Focus Well Protection Program in Comal County through approximately 2016; perform w ell pr otection w ork i n ot her c ounties a s ne eded t o a ddress t hreats of unattended wells being destroyed. Upon completion of the Comal County portion of the Well Protection Program, initiate the program in Bexar County. Edwards Aquifer Authority Adopted Budget

136 Continue to promote the Abandoned Well Closure Assistance Program and Well Logging Program to assist well owners who cannot afford to close their abandoned wells. 3. Continue to ensure well owner compliance of abandoned/deteriorated wells. Continue outreach efforts to owners of abandoned wells to encourage more rapid resolution of abandoned well cases. Offer expanded opportunities to stakeholders for cost savings through cooperative programs. Continue to promote well logging pilot program after updating EAA well logging equipment and capabilities in Continue well closure assistance program for abandoned wells with compliance issues. Prioritize well closures based on ranking under a risk matrix. 4. Evaluate e ffectiveness of e xisting w ater q uality r egulations and rel ated programs. Identify strategies to improve the functionality and efficacy of the EAA s rules and other programs related to water quality. Develop appropriate pr ogrammatic r esponses t o i dentified s trategies, i ncluding potential rulemaking activities, in order to effectuate necessary changes to improve the EAA s programs. Edwards Aquifer Authority Adopted Budget

137 ORGANIZATIONAL EFFECTIVENESS This thematic area relates to organizational effectiveness, which is addressed by four strategic goals. Underlying this thematic area is the idea that effective policy and regulation requires accurate and timely information. Therefore, the first goal focuses on collecting data and conducting directed research as the foundation of the EAA s aquifer management responsibilities. In order to accomplish the a gency s s trategic goals, t here m ust b e an i nfrastructure t hat complements t hese efforts. A n infrastructure of pr ofessional s taff a nd th e s upporting facilities is e ssential in th is r egard and i s addressed in the second goal. The third goal in this area focuses on t he public s knowledge of the aquifer and awareness of the agency, which together foster greater understanding of the resource and engagement with the or ganization through a relationship of trust. Lastly, the long term financial stability of the EAA is addressed focusing on a long-term approach to maintaining stability in the fee rate structure and appropriate reserves for funding the EAHCP. Edwards Aquifer Authority Adopted Budget

138 Goal E. Conduct Research that Enhances Understanding and Effecti ve Management of the Aquifer The A ct pr ovides t he EAA with t he r esponsibility t o co llect d ata an d perform r esearch necessary to better understand and inform policy to effectively manage and protect the aquifer. The EAA performs r esearch t o b etter u nderstand t he co ntrolling factors for r echarge, o ccurrence, movement, a nd di scharge of w ater f rom t he a quifer. Through t he i terative p rocess o f n umerical modeling, assessment of model uncertainty, and subsequent research, the conceptual understanding of the aquifer is improved over time. This approach ensures research will be focused on projects that will serve to improve the EAA s understanding of hydrologic conditions, and identify critical inputs needed t o i mprove groundwater and w atershed modeling with t he goal of pr oviding t he b est information possible for policy development. The following Strategic Priorities describe how the EAA will achieve this goal: 1. Evaluate/identify/prioritize r esearch i nitiatives and op erational procedures to address policy questions/direction as they apply to the EAA mission and the EAHCP. Focus research on projects critical to improved understanding of known uncertainties in the conceptual model of the aquifer. Continue t he i nterformational f low s tudy t o reduce un certainty about i nteractions between the Edwards Aquifer and Trinity Aquifer systems. Evaluate statewide water resource issues for relevance/impact to the Edwards Aquifer and develop research response, if needed. Continue to develop relationships with other regional organizations to improve mutual understanding of current and future aquifer studies. Utilize the prioritization process outlined in the annual Aquifer Management Services Operational Plan to support EAA policy. 2. Continue t o rev ise a nd ref ine t he d ata m anagement p rocess t o en sure a ll d ata streams are appropriately collected, validated, stored, and available to appropriate users. Continue to explore opportunities with TWDB for satellite telemetry and subsequent data hosting of water l evel d ata t o r educe E AA d ata m anagement w orkload an d simultaneously provide water level data to TWDB in real-time. Continue to implement the Aquarius data management and validation software for appropriate data sets. 3. Explore opportunities for collaboration with other agencies or entities to maximize resources. Explore pot ential oppor tunities w ith U TSA t o provide i nputs r elated t o c ertain concepts E AA ne eds f urther e valuation of, f or example, t he e ffectiveness of l ow impact development on recharge water quality. Continue to collaborate with agencies that may share an interest in the interformational flow study, specifically the South Central Texas Water Resources Interest Group. Continue c ollaboration w ith H ays C ounty entities i nterested i n s haring s treamflow data for the Blanco River. Edwards Aquifer Authority Adopted Budget

139 Goal F. Develop an Inclusive, Service-Oriented Organization The EAA is committed to being an inclusive, service-oriented agency, providing exceptional customer service to both internal and external clients in support of its overall mission and strives to serve as a regional resource for regional solutions. This will be accomplished through a positive work environment fostering an efficient and effective organization that is responsive to the needs of the various diverse communities and s takeholder i nterests t he E AA s erves. To maintain s uch a n environment the EAA will ensure the staff receives a competitive wage and benefit for their work, nurture and develop advanced technical skills and proficiencies among its employees, integrate and uphold the organization s self-identified core values through high levels of accountability to the ideals of service, inclusiveness, and fairness. The purpose of this effort is to develop a multi-faceted and diverse workplace culture of great expectations and accountability that proactively seeks to serve the customer needs through its programs and policies. The following Strategic Priorities describe how the EAA will achieve this goal: 1. Implement practices and p rograms designed t o en sure a p ositive w ork environment. Develop pr ograms a nd pol icies t hat i ncentivize i ngenuity i n t he s pirit of collaboration and teamwork moving the EAA forward toward the path of service to internal and external clients. Implement program(s) to properly and f airly r eward s taff for t heir s ervice an d contributions to the EAA in the name of fostering teamwork, collaboration, and adherence to the EAA core values. Align training program with core values and evaluate specific training needs to reinforce core values. Identify and nurture the skills of existing and future leaders. Promote EAA staff programs, initiatives, and accomplishments in order that the region, stakeholders, and board of directors will comprehend the value of the EAA, and talents that its staff offers in service to the region. Regularly review employee salary and benefit competitiveness within the market of similar organizations to recruit and retain quality employees. 2. Continue t o bui ld upo n hi ring a nd t raining practices t hat f oster a culture o f inclusiveness. Utilize s election an d r ecruitment p rocesses t hat d eliberately s eek q ualified individuals that have a predisposition to public service and devotion to the EAA s stated core values. Broaden t he o utreach o f em ployee r ecruitment ef forts to maximize th e pool o f potential job candidates for all vacancies. Foster programs that promote the participation of students, particularly minority students, into the STEM career fields. Edwards Aquifer Authority Adopted Budget

140 Goal G. Build Shared Value in the EAA Mission Shared value is the idea that an organization s effectiveness or success in the marketplace and the wellbeing of the communities around it are mutually dependent. For the EAA, achieving shared value means building trust. This means identifying the shared ideals of the regulated community and then redefining how to connect with the community around those shared ideals to further the EAA mission. This requires promoting the dynamics of public engagement from a one-way to a two-way communication model that invites input and values diversity of viewpoints around issues pertinent to the EAA mission. This calls for a more open, inclusive process that will result in a higher level of engagement, with t he goal of ultimately achieving greater understanding a nd trust. This w ill b e achieved t hrough e ducation a cross a ll de mographics, out reach, partnerships, service-oriented programs, and enhanced communication practices. The following Strategic Priorities describe how the EAA will achieve this goal: 1. Continue implementation o f a digital s trategy to e nhance the E AA s o nline presence and communication efforts and to improve accessibility of information. Continue implementation of strategies for the use of the internet, mobile devices, social media, and digital marketing to better engage the public in the EAA mission. Enhance the permit holder/stakeholder experience when transacting business with the EAA. Continue to solicit and evaluate stakeholder perceptions of EAA. 2. Develop/implement a udience-specific s trategies t o educate a nd engage stakeholders in the EAA mission. Continue de velopment of i ndividual s trategies f or r eaching m embers of t he legislature, other elected officials, permit holders, and the general public. Continue out reach t o n ews m edia t o e nhance understanding of t he E dwards Aquifer, the EAA, and the EAHCP. Expand educational outreach through programs designed for all age groups and expanding the EAA's footprint at community events. Continually r eview a pproaches and i mplement program c hanges a s n eeded t o achieve shared interest with the regulated community in achieving and maintaining compliance with EAA rules. 3. Facilitate the efforts of the Edwards Aquifer Conservancy (EAC) Ensure the viability of the EAC by sharing reasonable amounts of EAA resources to help build an organization that can successfully support the EAA s mission and programs. Edwards Aquifer Authority Adopted Budget

141 Goal H. Sustain Fiscal Stability Fiscal responsibility demands that the EAA explore and understand the various options for sustaining adequate funding of its mission over the long-term future, especially in light of uncertainty concerning various factors that may affect the agency s financial bottom line. T he process requires continued transparency and accountability, in particular to the legislature and regulated community, as the EAA strives to f urther its m ission. T herefore, th e E AA w ill utilize a lo ng-range f inancial pl anning, or forecast, model as a d ecision-making matrix to understand long term impact to the EAA s aquifer management an d p rogram aq uifer m anagement f ee r ate and co nsider i mpact o n f inancial r eserve balances. This financial planning model incorporates a process that considers EAA staffing needs as well as anticipated program, and capital outlay costs, potential future conditions, including various aquifer management fee rate scenarios and the sustainability of funded programs that could have an economic i mpact on t he or ganization a nd i ts stakeholders. T his a lso i ncludes e xploring a nd identifying potential alternative options for funding the implementation of an HCP and other projects and programs of the EAA. The following Strategic Priorities describe how the EAA will achieve this goal: 1. Ensure long-term stability in the aquifer management fee rate. Continue t o us e the l ong range f inancial forecast m odel t o e valuate l ong-term financial impacts of policy and spending priorities. Explore and implement strategies annually to ensure consistency in the total nonagricultural aquifer management fee rate. 2. Identify/develop inter-agency partnerships where possible to cost share. Seek opportunities to develop intra-agency cooperative agreements to collaborate on pr ograms and i nitiatives t hat s erve t he E AA s obj ectives and a lso p rovide proper s tewardship of or ganizational r esources t hrough c ost a nd ot her r esource sharing measures. 3. Identify/develop i ntra-agency c ooperation w here p ossible t o m aximize s taff capabilities. Examine opportunities whereby staff can augment their professional skill sets by job-sharing or other programs that call upon staff to seek and acquire knowledge or expertise they may not otherwise attain in the course of their present job. Edwards Aquifer Authority Adopted Budget

142 GLOSSARY OF ACRONYMS AND ABBREVIATIONS ASR Aquifer Storage and Recovery EAA Edwards Aquifer Authority EAHCP Edwards Aquifer Habitat Conservation Plan GCP Groundwater Conservation Plan HSPF Hydrologic Simulation Program Fortran (surface water modeling code) ITP Incidental Take Permit MODFLOW A Finite-Difference Groundwater Model SAWS San Antonio Water System USFWS United States Fish & Wildlife Service USGS United States Geological Society Edwards Aquifer Authority Adopted Budget

143 Edwards Aquifer Authority Adopted Budget

144 BOARD RESOLUTION 2018 BUDGET Edwards Aquifer Authority Adopted Budget

145 RESOLUTION AN D ORDER NO OF THE BOARD OF DIRECTO RS OF THE EDWARDS AQU IF ER AUTHORITY ADOPTING TH E ANNUAL BUDGET FOR FISCAL YEAR 20 18, AN D ASSESSrNG AQUIF ER MANA GEMENT FEE AND PROGRAM AQU IFER MANAGEMENT FEE RATES FOR WHERFAS, the Edward s Aq ui fe r Au thori ty ("EAA") was created by the Edwa rd s Aq uifer Authority Act, Act 01' May rd I~eg.. R. S., eh. 626, 1993 Tex. Ge n. Laws 2350, as amcnded ("Act"); and WHEREAS. unde r Sec ti on 1.02 of the Ac t. the EAA is a conservation and reclamation di stri ct created by virtue of Arti cle XV I, Section 59 of the Texas Constitution, and is a governmen tal age ncy and body po lit ic and corporate vested with the fu ll authorit y to exercise the powe rs and to pe.rform the fu nctions specified in the Act; and WH EREAS. Secti ons (a) and (b), Tcxas Water Code, Sectio n 709. I 9(c)(I) of the Edward s Aq uifer Authority Rul es ("EAA Rul es"), and Artic le 8.02(b) of the Edwa rds Aq ui fer Authority Bylaws req ui re that the Board of Directors ("Board") of the EAA prepare and approve an annual bud get: and WHEREAS, Secti on 1.29(b) of the Act provides that th e EAA "sha ll assess eq uitable aq ui fer manage ment fees based on aquifer use... to fin ance its adm inistrati ve ex penses and programs authorized under [the Act]" and Secti on of the EAA Rules prov ides that the EAA shall assess aqu ifer management fees ("AMFs") "for all authorized and unauthori zed withdrawals of groundwa ter from the Aquifer:" and WHEREAS, Secti on (a) of the EAA Rules provides that the AMI's sha ll consist of: ( I) AMI's fo r the EAA's annual operating revenue requirements; and (2) program AMI's ("'PAM F" ) for impleme ntati on of the Edwa rds Aqui fer Hab itat Conse rvati on Plan ('"EA HCP") Program; and WHER EA, Sec tion 1.29(b) of the Act and Sec ti on (a) of the EA A Rul es prov ide that tlte EAA may co llect a total amount of AMI's that is reaso nably necessary for the annual operatin g revenue requirements lo r the ad min istration of the EA A: and WHEREAS. Secti on (b) of th e EAA Ru les prov ides tlt at the AN1F sha ll be based on two uscr blocks: agricultural users and non-agri cu ltural usc rs; and WHEREAS, Section (c)( I) of the EAA Rules provides that the Board, by reso lution and orde r, shall annua ll y adopt a Block I AMF rate and budget lor non-agricultural users renecting its annual operating revenue req ui rements for thc succeeding liscal year: and WH EREAS, Section (c)(I) orthe EAA Rules provides that, in add it ion to an AMF fo r its an nual operatin g reve nue requirclllci1ls. the EAA shall calcul ate a PAMF necessary to imp lemei1l th e EA HCP: and Edwards Aquifer Authority Adopted Budget

146 WHEREAS. Section (c)(2)(C) of' the EAA Rule s provides th at the EAA shal l ca lculate the AMF tha t may be assessed against Block I non-agricultural use on a unit basis and assessed on the total vo lume or grou nd water au th orized to be withdrawn in a groundwater withdrawal perm it: and WHEREAS. Secti on 1.29(e) of the Act and Secti on (c)(3) of' th e EAA Rules prov ide that the AMF for Block 2 agricu llura lusers may not be more than $2.00 per acre-foot; and WHEREAS, th e EAA held public meetings at the EAA's Conference Center at its principal place of business at 900 E, Qu in cy St., San Antoni o Texas, and at locati ons in I-londo, Texas, and Sa n Marcos, Texas, to take public co mm ent on the proposed FY budget. AMI's, and program AMI's; and WHEREAS, th e Boa rd ha s determined that adoption of the budget, AMFs, and the rami's associated therewith, is reasonabl y necessary fo r the ad mini stratio n of the EAA, including fo r the implementation of the EA HCr, and that each and every act, project and expenditure contained in the budget is an administrative expense or program authori zed un der th e Act; and WHEREAS, payment of AMI's alone does not guarantee th e ri ght to withdraw gro und water I'rom th e Edwa rds Aq uifer, sin ce all withdrawals arc subj ect to th e Act, the rules of th e EAA, orders of the Boa rd, the term s and conditions of any pe rmits issued by the EAA, and any other app licable federal, state, and local law; and WHEREAS, a regu lar meeting of the Boa rd of the EAA was held on November 14,2017, at 3:00 p.m., noti ce of public meetin g hav in g been duly and properl y pos ted in accordance with Chapter 55 1, Texas Government Code; and WHEREAS. the Board co nsidered the Agenda Item th at is the subject ol' thi s Reso lution and Order: and WHEREAS, a majority or the Directors we re prese nt and co nstituted a quorum of th e Board ; and WHEREAS, a vote of th e majority of the quorum of the Board present passed on, voted in fav or of, and adopted the fo llowing Reso luti on and Order; and WHEREAS, it is in the public interes t that the EAA adopt an annual budget for FY NOW, THEREFORE, BE IT RESOLVED AND ORDERED BY TH E BOARD OF DIRECTORS OF TH E EDWARDS AQU IFER AUTHOR ITY THAT: Secti on I. Secti on 2. The recita ls se t out abovc are found to be true and correct. and they are hereby adopted by th e Board or Directors and arc made a part of thi s Reso luti on and Order for all purposes. The Fisca l Year Annual Budget allached to thi s Resolution and Order is hereby adopted. Edwards Aquifer Authority Adopted Budget

147 Secti on 3. Secti on 4. Secti on 5. Secti on 6. Secti on 7. The Fiscal Year Ann ual Budget Illay be aillended pursuant to a duly passed oral mol ion Illadc at a dul y ca lled meeting of the Board of Directors wi thout the necess ity of ado pting a new or re vised Resolut ion and Order. As provided by Secti on 709. I 9(c)(2)(C) of thc EAA Ru les, the AMF for Block I non-agricultural use rs sha ll be calculated and assessed by the General Manager of the EAA on a unit cost basis resulting in an AMF rate of $42.00 per acre-foot per annulll for fi scal year As provided by Section 709. I 9(c)(2)(C) of thc EAA Ru les, the PAMF for Block I non-agricul tural use rs shall be calcu lated and assessed by the General Manager orthe EAA on a unit cost basis resu lting in a PAMF rate of$42.00 per acre-foot per annulll ror fi scal yea r As pro vided by Section 1.29(e) of the Act and Secti on 709. I 9(c)(3) of the EAA Rules. the General Ma nagcr of the EAA sha ll calc ul ate and assess the AM F ratc fo r Block 2 agricultural users at $2.00 per acre-foot per annum for fiscal year Thi s Reso lution and Order shall becoillc effecti ve frolll and ariel' its adoption. PASSED AND APPROVED BY TH E BOARD OF DIRECrORS OF TH E EDWARDS AQU IFER AUT HOR ITY TI-IIS TH E 14TH DA Y OF NOVEMBER \JftJr4 bud- Luana Buckner Chairlllan, Board of Directors ATTEST: ffk~ Enriquc P. Vald ivia Secretary, Board of Directors a - O\.lIFE'R r_ 0 0 v 1>' 0. "'/",. e;/.o A 00 '.).- n- 0 -::s: TEXAS 0 0 ~ : CONSERVATION: ;:0 :> 0 AND._ <?\~RECLAMATION: -I _ v 0 0 DIST. o. '\ C o. 0 0 no.. ~ - c:p:.j. ~4T"""' <:'-' '\ Edwards Aquifer Authority Adopted Budget

148 Edwards Aquifer Authority 2018 Proposed Operating Budget Fund Summary: General and Habitat Conservation Plan GENERAL EAHCP TOTAL Aquifer Management Fees, per Acre-Foot: Non-Agricultural (AMFIProgram AMF) $ $ Agricultural $ 2.00 $ $ $ 2.00 REVENUES Interest $ $ 156,400 Aquifer Managemenl Fees 15, Program Aquifer Management Fees 15,623,790 Aquifer Management Fee (Agricultural) 145,000 Miscellaneous Subtotal Revenues $ 169, ,623, , ,000 32,313,480 EXPENSES Salaries & Wages 7,423, ,503 Employee Benefits 2,424, ,248 Professional Technical Services 4, ,241,801 Property Services 1,114,105 1,515 Other Services 720, Supplies 468,428 21,400 Other Expenses Capital 708, Subtotal Expenses , Net Income (Loss) Before Depreciation ($1,791,625) ($2,535,837) 7,953,809 2, ,655,480 1,115, , , , ($4,327,462) Net Asset Designations: Projected Operating Reserve. January $ 3,649,806 $ 31,289,906 Net Increase (Decrease) in Fund Balance Projected Operating Reserve, December 31, 2018 Estimated % of Expenses DeSignated Operating Reserve: Abandoned Well Closure Assistance' ConservationlAquifer Protection Habitat Conservation Plan 28,754,069 Designated Operating Reserve Balance $ 391,015 $ 28,754,069 Estimated % of Expenses 2.2% $ , , ,069 $ 29,145,084 Undesignated Operating Reserve Balance $ 1,467,167 $ Estimated % of Expenses 8.3% $ 1,467,167 $257,000 appropn'ated in 2018 budget for abandoned well closure assistance... $ appropriated in 2018 budget for variable flow biologic monitoring Net Acre Feet, 2018 Projected Edwards Aquifer Authority Adopted Budget

149 Edwards Aquifer Authority 2018 Proposed Operating Budget Threatened & Endangered Species Services Summary 2018 Description Proposed Proposed Budget Amendments Salaries & Wages Salaries & Wages $ 530,503 $ Overtime Sick Leave Vacation Leave Holiday Leave Administrative Leave Compensated Absences Salaries & Wages Total 530,503 Employee Benefits Allowances 4,200 Dental Insurance 2,895 Employer FICA & Medicare 40,583 Health Insurance 58,397 Life & AD&D Insurance 2,801 L T Disability Insurance 1,592 Medical Allowance Reimbursement 17,500 Pension Expense Retirement Contribution 49,390 State Unemployment Tax 1,890 Employee Benefits Total 179,248 Professional Technical Services Program Administration Contractual Professional Services 167,734 NAS Science Review 269,750 Total - Program Administration 437,484 Springflow Protection Regional Municipal Water Conservation 4,507,750 SAWS ASR Leasing 5,615,975 SAWSASRO&M 1,366,700 VISPO 2,284,100 Total- Springflow Protection 13,774,525 San Marcos Springs Bank Stabilization/Permanent Access Points Biological Monitoring 204,138 (1 ) Household Hazardous Waste Management 30, Proposed Budget AMENDED $ 530, ,503 4,200 2,895 40,583 58,397 2,801 1,592 17,500 49,390 1, , , , ,484 4,507,750 5,615,975 1,366,700 2,284,100 13,774, ,137 30,000 Edwards Aquifer Authority Adopted Budget

150 Edwards Aquifer Authority 2018 Proposed Operating Budget Threatened & Endangered Species Services Summary 2018 Description Proposed Proposed Budget Amendments L1D/BMP Management 187, ,000 Management - Key Recreation Areas 56,000 Non-Native Animal Species Control 26,747 Non-Native Plant Species Control 110,836 Sediment Removal Texas Wild Rice Enhancement/Restoration 128,000 Water Quality Monitoring 142,650 Litter Control/Floating Vegetation 50,000 Restoration - Riparian Zones 20,000 Total - San Marcos Springs 955, ,999 Comal Springs Aquatic Vegetation Restoration 50,000 Biological Monitoring 204,138 Decaying Vegetation Removal 15,000 Flow Split Management Gill Parasite Control 30,000 Golf Course Management Plan Household Hazardous Waste Management 30,000 L1D/BMP Management 125,000 Non-Native Animal Species Control 55,000 Old Channel Restoration 100,000 Prohibition - Hazardous Materials Routes Riparian Improvement - Riffle Beetle 35,000 Water Quality Monitoring 142,650 Litter ControllFloating Vegetation 30,000 Restoration - Riparian Zones 50,000 Total - Comal Springs Modeling & Research Applied Research 445,000 Ecological Modeling Total- Modeling & Research 445,000 Refugia NFHTC Refugia 1,519,634 Total- Refugia 1,519,634 Professional Technical Services Total 17,998, , Proposed Budget AMENDED 430,000 56,000 26, , , ,650 50,000 20,000 1,198,370 50, ,138 15,000 30,000 30, ,000 55, ,000 35, ,650 30,000 50, , ,000 1,519,634 1,519,634 18,241,801 Edwards Aquifer Authority Adopted Budget

151 Edwards Aquifer Authority 2018 Proposed Operating Budget Threatened & Endangered Species Services Summary 2018 Description Proposed Proposed Budget Amendments Property Services Non-Capital Furniture & Equipment 1,515 Property Services Total 1,515 Other Services Conferences, Seminars & Training 2,500 Meeting Expenses 20,000 Printing 2,000 Property & Casualty Insurance 4,200 Telecommunication Services 4,860 Travel/Lodging 3,000 Other Services Total 36,560 Supplies Field Supplies 17,900 Memberships 500 Office Supplies 3,000 Supplies Total 21, Proposed Budget AMENDED 1,515 1,515 2,500 20,000 2,000 4,200 4,860 3,000 36,560 17, ,000 21,400 Other Expenses Bad Debt Expense Depreciation Expense Other Expenses Total Capital Computer Software 5,000 Water Sampling Monitoring Equipment 36,000 Capital Total 41,000 Total - Threatened & Endangered Species Services $ 18,809,028 $ 242,999 5,000 36,000 41,000 $ 19,052,027 Edwards Aquifer Authority Adopted Budget

152 GENERAL IMPROVEMENT REVENUE NOTE AMORTIZATION TABLE Edwards Aquifer Authority Adopted Budget

153 APPENDIX C Edwards Aquifer Authority General Improvement Revenue Note Amortization Schedule Year Total Payment Principal Interest ,191-16, , , , , ,898 65, , ,391 70, , ,696 75, , ,876 75, , ,993 80, , ,923 85, , ,727 85, , ,468 90, , , , , , ,000 91, , ,000 82, , ,000 72, , ,000 62, , ,000 52, , ,000 42, , ,000 31, , ,000 19, , ,000 8,021 5,132,774 3,370,000 1,762,774 Edwards Aquifer Authority Adopted Budget

154 GLOSSARY Edwards Aquifer Authority Adopted Budget

155 Appendix D Glossary Acre-foot The amount of water that will cover one acre of land (43,560 square feet) to a depth of one foot-325,851 gallons. An acre-foot is the primary unit of measure used by the EAA to express water volume. Accounting System A set of records and procedures used to record, classify and report information on the financial activity of an entity. Accrual Basis of Accounting The process of relating the financial effect of transactions to the period in which they occur, whereby, revenue is recognized when earned and expenses are recognized when incurred. Aquifer A stratum or zone below the surface of the land that can hold and yield water in sufficient quantities for human use. Artesian Water under pressure, trapped between impermeable layers, that will rise in a well or a fracture in the Earth above the top of the aquifer. Artesian Well A well located in an artesian aquifer; a flowing artesian well occurs when the pressure causes water to emerge at the land surface without pumping. Authorized Positions Employee positions that have been approved by the board and will be filled during the budget cycle. Balanced Budget a budget in which revenues equal or exceed expenses. Basin A natural or artificial hollow area containing water. Budget Resolution The official action of the Board establishing the legal authority for the EAA to expend resources. Budget Schedule A list of salient dates that the EAA follows in preparation for and adoption of the budget. Capital Assets A long-lived asset acquired for use in the operation of the business and not intended for resale to customer. Examples include equipment, vehicles, land, buildings and structures. The EAA considers assets with an acquisition price in excess of $1,000 and a useful life of more than one year to be a capital asset. Conservation The preservation and protection of something, especially a natural resource such as water. Critical Period (Management Plan) - a plan implemented in times of declining groundwater levels to help sustain aquifer and springflow levels. This plan helps slow the rate of decline in aquifer levels and spring discharges during periods of little or no rain by reducing the amount of groundwater permit holders are allowed to withdraw. Depreciation The allocation of the cost of a capital asset to each period benefited by the asset based on the assumed useful life of the asset. Edwards Aquifer Authority Adopted Budget

156 Appendix D Discharge A release from confinement, such as water flowing from an aquifer through springs or wells. Drought A long period of time with little or no rain. Enterprise Fund Fund established to account for operations financed and conducted in a manner similar to the operations of private business enterprise. Estuary An area at the mouth of a river where fresh water from the river mixes with salt water from the ocean. Expense Charges incurred during a period through activities that describe ongoing operations of the EAA. Fiscal Year (FY) The fiscal year for the EAA is January 1 through December 31. Fault A fracture within the Earth s crust that displaces the layers of rock. General Improvement Revenue Note A revenue note issued by a paying agent/registrar for the purpose of providing funds to build, renovate, and equip the EAA s administrative headquarters. Generally Accepted Accounting Principles (GAAP) The term used to describe the body of principles that governs the accounting for financial transactions underlying the preparation of a set of financial statements. Government Accounting Standards Board (GASB) An independent, professional body that sets standards of accounting and financial reporting applicable to state and local governments. Groundwater Water that is stored under the Earth s surface. Hydrologic Cycle The natural sequence through which water evaporates into the atmosphere, condenses, and then falls to the Earth as precipitation; the water cycle. Income Compensation for services, interest, rents, fees, etc. Investments Securities purchased for the generation of income in the form of interest. Karst An area of limestone or other soluble rock with sinkholes, caverns, caves and springs. Limestone A sedimentary rock consisting mainly of calcium carbonate that has been formed from the skeletons and shells of sea organisms and from minerals that have separated from seawater. Net Assets (Fund Balance) Total Assets less Total Liabilities. Operating Expense Primary recurring cost incurred to support the activities of the EAA. Operating Revenues Revenues generated from the provision of service and from other activities associated with the provision of service. Recharge The process of water being added to an aquifer. Records Management Program established to support the intention of the State of Texas to promote and support a program for the efficient and economical management of local government records. Edwards Aquifer Authority Adopted Budget

157 Appendix D Refugium - (refugia-plural) is an area in which a population of organisms can survive through periods of unfavorable conditions. Reserve An account used to indicate that a portion of previous earnings has been restricted for a specific purpose. Spring A place where water emerges naturally from the ground. See Artesian. Surface Runoff Water that falls on the ground and flows into rivers, streams, lakes and oceans. Surface Water Water on top of the ground, including streams, rivers, lakes, oceans, snow and glaciers. Water Table The top of the zone of saturation; the level to which unconfined groundwater has risen. Well A hole drilled into the ground to obtain water. Zone of Saturation An underground region within which all openings fill with water. The top of the zone of saturation is called the water table. Water contained within the zone of saturation is called groundwater. Edwards Aquifer Authority Adopted Budget

158 EDWARDS AQUIFER AUTHORITY 900 E. Quincy San Antonio, Texas edwardsaquifer.org Edwards Aquifer Authority Adopted Budget