adopted BUDGET fiscal year HIGHLAND, CALIFORNIA

Transcription

1 adopted BUDGET fiscal year HIGHLAND, CALIFORNIA

2 Contents

3 Transmittal Letter TRANSMITTAL LETTER BLUE AGAVE Agave Tequilina The blue agave is native to the states of Jalisco, Colima, Nayarit and Aguascalientes in Mexico. The plant favors altitudes of more than 5,000 feet and grows in rich and sandy soils. It grows into a large succulent, with spiky fleshy leaves, that can reach over 7 feet in height.

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5 TRANSMITTAL LETTER Honorable Chairman, Governing Board & District Ratepayers I am pleased to present the Fiscal Year Operating and Capital Budgets. In order to achieve the impossible, it is important to have a strong plan in place to guide the way. Through a collaborative process, East Valley Water District (District/EVWD) s annual budget document is designed to do just that. We have committed to enhancing the community that we serve, which can best be measured through the results that we achieve throughout the year. This document serves as an operational guide and informational tool for both internal and external stakeholders. It allows for a clear understanding of the vision adopted by the Governing Board and fosters implementation at the staff level through projects and programs. BUDGET PROCESS Beginning in January of each year, the budget development process begins at the staff level evaluating current needs while the Governing Board develops and adopts annual District-Wide Goals. This dual effort allows for a seamless process which understands priorities while considering operational needs. STRATEGIC PLANNING EFFORTS The District has continued to enhance operations and services in recent years. This organizational growth spurred the need to update the Strategic Plan to ensure a unified and cohesive approach to understanding priorities as they relate to shortterm and long-term planning. In 2018, the Governing Board adopted a new Strategic Plan which was the result of a comprehensive process that included the Governing Board, executive management, all members of staff, and the public. This update resulted in the creation of a guide which has been designed to be applicable to all positions within the organization and to empower active and effective public service. For the complete list of Agency Goals and Objectives identified within the Strategic Plan see page 23. District-Wide Goals and Objectives District-Wide Goals are established by the Governing Board as part of the General Manager/CEO s annual evaluation. Priorities for Fiscal Year (FY) are consistent with efforts of recent years, with an emphasis on program evaluation and planning. 3 FISCAL YEAR BUDGET

6 Assess the District s ability to an increase in development activity and implement action items as identified Create a financial plan to reduce long-term pension liabilities Address challenges and opportunities related to North Fork Water Company DISTRICT-WIDE GOALS & OBJECTIVES Research the requirements and procedures of creating a non-profit foundation for the community Develop a 5-year work program for Board consideration Complete the necessary steps to continue advancement of the SNRC Programmatic Goals and Objectives All program goals included in this fiscal year have been designed to support the priorities outlined in the Strategic Plan and the District-Wide Goals and Objectives. In FY one of the District-Wide goals includes the development of a Five-Year Work Plan which will serve as a bridge between short and long-term planning by coordinating high-level policies with task-based objectives. Revenue Projections Anticipated revenue projections are presented to understand the financial resources available for the fiscal year. Expenditure Projections Expenditure projections are developed consistent with Program Goals and Objectives and revenue projections. This information is presented from the District-Wide perspective, for each enterprise fund, and for individual programs. During the budget development process, if expenditures had been projected above available revenues, the organization could use the strategic nature of the budget process to re-evaluate goals to ensure maintenance of consistent expectations with available financial resources. Budget Adoption Each phase of the budget is presented to the Governing Board at a series of at least three public meetings to provide an opportunity for discussion and input from members of the community. Additionally, staff presented this information to the Community Advisory Commission for review and comments. The Community Advisory Commission is a group of five residents appointed by the Governing Board to provide input to support our efforts of transparency and accountability. Program Monitoring Given that the budget is developed based on projections, each program monitors monthly expenses. Each quarter the budget is reviewed to allow for an opportunity to take formal budget adjustments to the Governing Board for consideration. Consistent budget review eases the transition of programs from year-to-year. 1 MAINTAIN 111 PROMOTE IMPLEMENT EFFECTIVE SOLUTIONS THROUGH VISIONARY LEADERSHIP DELIVER PUBLIC SERVICE WITH PURPOSE WHILE EMBRACING CONTINUOUS GROWTH agency goals 11 A COMMITMENT TO SUSTAINABILITY, TRANSPARENCY, AND ACCOUNTABILITY PLANNING, MAINTENANCE AND PRESERVATION OF 1VDISTRICT RESOURCES 4 FISCAL YEAR BUDGET

7 BUDGET SUMMARY The budget for FY is balanced, and reflects EVWD s commitment to allocating anticipated resources to meet the expectations of District stakeholders. Operating expenses incurred by the District s programs are allocated to the water and wastewater funds based on the assumed benefit of each service to each fund. Both the water and wastewater funds are self-supporting based on rates received for services provided. Total projected revenue for FY is $37,848,000. REVENUE FY Actuals FY Budget FY Projected FY Budget % CHANGE Operating Revenue $ 36,128,183 $ 36,477,000 $ 36,977,000 $ 37,588,000 3% Non-Operating Revenue 146, , , ,000 4% TOTAL REVENUE 36,274,658 36,624,000 37,124,000 37,848,000 3% EXPENDITURES Operating & Maintenance 24,696,740 26,994,000 27,914,000 28,675,000 1% Debt Service 3,560,567 4,315,000 4,315,000 4,358,000 0% Capital Expenditures 3,727,195 5,376,000 4,956,000 4,711,000 29% Reserve Transfer To/ (From) 4,290,156 (61,000) (61,000) 104, % TOTAL EXPENDITURES $ 36,274,658 $ 36,624,000 $ 37,124,000 $ 37,848,000 3% The budget reflects the commitment to allocating resources to meet the needs of District stakeholders. 5 FISCAL YEAR BUDGET

8 WATER FUND The Water Fund has identified $24,773,000 in both revenue and expenditures. When developing the budget for this fund, key considerations included the allocation of water consumption within the Budget Based Rate Structure, water quality solutions, hydroelectric power generation, and preventative maintenance programs. Projected revenue has been developed with source assumptions being 60 percent water sales, 37 percent meter charges, and 3 percent other charges. The District reviews rates on 3-5 year cycles and adjusts accordingly to continue providing reliable services to the community. Projected expenditures have been developed through a comprehensive organizational budget process to achieve the District-Wide goals, maintain operations, and remain within revenue projections. Expenditures for the Water Fund consist of 66 percent program, 17 percent capital, and 17 percent debt service. A complete rate analysis is anticipated for FY Source of Revenue Expenditures 37% Meter Charges 60% Water Sales 17% Capital Expenditures 17% Debt Services 3% Other Charges 66% Program Expenditures WASTEWATER FUND The Wastewater Fund has identified $13,115,000 in both revenue and expenditures. When developing the budget for this fund, key considerations continued assessment and repair of the collection system included the Sterling Natural Resource Center. Wastewater Fund revenue projections have been developed based on historical revenues with source projections including 63 percent treatment, 36 percent collection, and 1 percent other. The District reviews rates on 3-5 year cycles and adjusts accordingly to continue providing reliable services to the community. A complete rate analysis is anticipated for FY Projected expenditures have been developed through the budget process to achieve District-Wide goals, maintain operations, and remain within projected revenues. Expenditures for the Wastewater Fund consist of 63 percent treatment, 30 percent program expenses, 5 percent capital, and 2 percent debt service. 6 FISCAL YEAR BUDGET

9 Source of Revenue 1% Other Charges Expenditures 5% Capital Expenditures 2% Debt Service 36% Wastewater Collection Charges 63% Treatment Expense 63% Wastewater Treatment Charges 30% Program Expenditures PROGRAM HIGHLIGHTS As a results-oriented organization, East Valley Water District has identified 17 programs essential to operations. Program-based budgeting allows for costs to be clearly identified while easily measuring benefits as outlined in the Key Performance Indicators (KPI) and completion of Goals and Objectives. Governing Board The Governing Board is the District s legislative body responsible for serving as the organizational policy makers. General Administration General Administration is responsible for overseeing the day-to-day District operations. Human Resources Human Resources is responsible for personnelrelated programs. Public Affairs Public Affairs oversees internal and external communications programs. Conservation Conservation encourages sustainable water use. Finance & Accounting Finance and Accounting provides transparent and responsible oversight of District funds. Information Technology Information Technology is responsible for District technology and software programs. Customer Service Customer Service provides the community with word class customer relations. Meter Services Meter Services is responsible for reading all District meters monthly for billing, on-site customer meter-related requests and customer service assistance. Engineering Engineering implements infrastructure projects needed to provide safe and reliable services. Water Production Water Production is responsible for monitoring and operating the entire water system. Water Treatment Water Treatment is responsible for treating the three sources of supply. Water Quality Water Quality complies with all required drinking water regulations. 7 FISCAL YEAR BUDGET

10 Water Maintenance Water Maintenance maintains the District s water transmission and distribution system. Wastewater Maintenance Wastewater Maintenance repairs and safeguards the conveyance system. Facilities Maintenance Facilities Maintenance repairs and maintains all District sites. Fleet Maintenance Fleet maintenance cares for vehicles and equipment. STAFFING The District continues to evaluate the workforce needs to facilitate world-class service. The FY Budget has maintained 68 authorized positions, similar for FY While the overall authorized full-time positions remain the same, there have been shifts of levels within programs including: A full-time graphic designer was added in Public Affairs and an Environmental Coordinator removed from Engineering A vacant Mechanic position was eliminated and Facilities Maintenance Worker position added A Meter Services position was eliminated and a Field Services position added A Construction Coordinator position was eliminated from Engineering and a Field Service position added to Water Maintenance Reporting ties for a warehouse Storekeeper/ Buyer were moved from Finance to Water Maintenance EXTERNAL CONSIDERATIONS In addition to known operational needs for FY , there were a variety of external considerations that needed to be factored into projections within this document. Maintaining compliance with regulations is an essential component to District operations. The District actively monitors proposed legislation to prepare for anticipated changes and any impact that these decisions may have on overall programs, including costs. Changes to water quality regulations regarding lead testing in schools have been considered to account for the additional water sampling and materials costs resulting from the implementation of Assembly Bill (AB) 746. Governor Jerry Brown also signed legislation to implement additional long-term conservation measures as the temporary responses implemented during the recent drought have expired. AB 1668 and Senate Bill (SB) 606 establish guidelines for efficient water use and a framework for the implementation and oversight of the new standards, which must be in place by Additionally, pending legislation relating to residential meter accuracy testing, environmental review procedures, affordable water rates, and service disconnection due to delinquent payments have been considered as they have potential operational impacts. Additionally, the current economic climate is resulting in an apparent increase to construction labor and material costs. When developing our Capital Budget, these factors increases were incorporated in the consideration of project costs. The District is required to comply with Department of Industrial Relations regulations which establish minimum labor compliance requirements for public works projects, which significantly impacts the costs of the District s Capital Budget. While the economy continues to strengthen, interest rates are steadily increasing. Fortunately, the District was able to secure an interest rate of 1.8% on the State Revolving Fund loans for the Sterling Natural Resource Center. Just as home owners benefit from lower interest rates for their mortgage, securing funding prior to the next state bond issuance saves millions of dollars in potential interest payments that would have resulted from the loan having a higher interest rate. On a positive note, the increase in interest rates is resulting in a higher rate of return on the District s investment portfolio as compared to recent years. The Sterling Natural Resource Center will develop up to 10 million gallons a day of recycled water that will benefit not only East Valley Water District customers, but the 700,000 people that depend on the Bunker Hill Groundwater Basin. In June 2018, the Local Agency Formation Commission (LAFCO) voted during a public hearing to activate the District s wastewater treatment authority, paving the way for EVWD to operate the facility upon construction completion. This project supports the statewide effort to develop new recycled water supplies to enhance the water supply resiliency within California. 8 FISCAL YEAR BUDGET

11 Cost of Living Adjustment (COLA) For FY , a COLA of 3 percent is included for all employees. Additionally, the District maintains a Memorandum of Understanding with the newly formed East Valley Water District Employee Partnership that will be in place until CAPITAL IMPROVEMENT PROGRAM The District s Capital Improvement Program (CIP) is a five-year planning schedule with each year approved in the correlating fiscal year. Scheduled projects in FY total $4,080,000 for water and $15,430,000 for wastewater. The capital improvement projects scheduled for FY include: Water AMI Meter Replacement Program Canal Zone Storage Reservoir Transmission Main Plant 134 to Upper Zone Plant 134 Site Improvements Plant 134 TTHM Treatment/Sludge Management Plant 134 Treatment Membrane Replacement Plant 101 Hydro Tank Rehabilitation Dwight & Glasgow Water Main Replacement Well & Booster Improvements/Rehabilitations Facilities Relocations Facilities Rehabilitation Wastewater Wastewater Main Rehabilitation-Modesto Dr. Wastewater Main Rehabilitation-35th St. Sterling Natural Resource Center DEBT EVWD utilizes debt funding to finance large capital projects. For FY , the District has outstanding debt which has been utilized for water treatment facilities, energy efficiency improvements, mutual water company consolidations, and infrastructure projects. Debt service for FY on all outstanding debt is $4,358,000. FY includes fourteen capital improvement projects that will enhance the infrastructure system. 9 FISCAL YEAR BUDGET

12 accomplishments During FY the Governing Board adopted five District-Wide Goals with the General Manager/CEO s annual evaluation focusing on various efforts. Each of these efforts was achieved and used as a foundation to build the goals for FY This level of consistency in vision allows for a strategic level of prioritization of resources to maximize the services provided to the community. AWARDS 1. GFOA Award for FY Budget 2. GFOA Award for FY CAFR 3. GFOA Award for FY PAFR 4. Top Workplace First Pace Award by The Inland News Group in Small Company Category 10 FISCAL YEAR BUDGET

13 Goal Partner with organizations in an effort to enhance the quality of life for our community members beyond water and sewer services. Implement measures to support enhancement of the District s Brand, including increased Board Member participation both within and outside of the service area boundaries. Conduct a comprehensive update to the current Water Master Plan for longterm planning purposes. Actively participate in necessary processes, including legal and regulatory requirements, essential to reaching the long-range goal of constructing the Sterling Natural Resource Center. Successfully negotiate an employee Memorandum of Understanding (MOU) the protects the District s resources while promoting employee morale. Benefit The employees continue to showcase their generosity through the Employee Events Association and their relationship with Jefferson Hunt Elementary. Through continued annual fundraising efforts students were provided shoes, school supplies, and sweatshirts throughout the year. Beyond the monetary donations, employees have dedicated countless hours to participate in classroom activities and special events. The District also participated in the Highlanders Boxing Club events including open houses, a canned food drive, and a toy drive. Investing in the community and dedicating our knowledge is an effective way to be involved. The General Manager/CEO served on the Chair of the Workforce Council of the Inland Empire Economic Partnership. This venture has set out to enhance the preparation of individuals for the workforce. Over the last six years the District has strived to develop a brand consistent with the core values and vision. For the first time, the District hosted a Day Without Water pop-up event. This provided a unique opportunity for Board Members and staff to get to know customers. Continued opportunities such as these develop a stronger understanding of the community, which helps to improve communication efforts. Events such as these continue to build relationships with District customers. With a culture of embracing knowledge and seeking out ways to improve, the District had multiple opportunities to present information to peers at a variety of functions including the San Bernardino County Water Conference and the Orange County Human Resources Water Consortium. Recognizing the impact that the SNRC will have on the overall organization, the District determined that it would be beneficial to conduct an update to the Sewer Master Plan concurrently with the Water Master Plan. This ensures that both documents reflect full situational awareness. As a result of this decision, there were economies of scale by combining the project, resulting in significant cost savings without compromising quality. Staff is working with Stantech, formerly known as MWH, to gather the information necessary to begin the system analysis that will be considered by the Governing Board in late During FY , the SNRC made significant progress. The District reached a settlement agreement with the City of San Bernardino, resulting in a win-win solution that allows for enhanced communication and cooperation. The State Water Resources Control Board executed the funding agreement to reserve $126 million in low-interest loans and grants. LAFCO approved the activation of the District s wastewater treatment authority, which allows the District to operate the facility upon completion of construction. Through a series of meetings that took place in less than 60 days, the East Valley Water District Employee Partnership (EVWDEP) and management developed a three-year Memorandum of Understanding (MOU) that runs from July 1, 2017 until June 30, This MOU is truly a result of successful productive discussions with employees, listening to their concerns, and finding compromises. It is safe to say that morale is at an all-time high, while still producing an agreement that is fair and equitable for the rate payers of this community as well. Progression to FY Goal 5 Goal 3 Goal 1 & 2 Goal 6 Goal 4 11 FISCAL YEAR BUDGET

14 SUMMARY East Valley Water District is committed to providing world class public service. This expectation requires that we operate in an efficient and effective manner, with careful thought given to providing the best services today while preparing for the future. Through the use of goals and objectives at all levels of the organization, we can clearly measure our effectiveness through the results we achieve. The budget development process is one which requires input from each and every staff member of this organization along with active participation from the community. We are confident that the projects and programs outlined within this document will serve as a resource for executing those efforts. On behalf of the District, I would like to thank everyone involved in the development of this budget and especially recognize the Finance and Public Affairs team members for their contribution. Through their collaborative effort we have designed a resource which clearly presents our operational plan for FY for a wide-range of interested stakeholders. Respectfully submitted, John Mura General Manager/CEO district management Chief Financial Officer BRIAN TOMPKINS District Clerk JUSTINE HENDRICKSEN Operations Manager PATRICK MILROY Director of Engineering & Operations JEFF NOELTE Human Resources/ Risk & Safety Manager KERRIE BRYAN Information Technology Manager ROBERT PENG Director of Strategic Services KELLY MALLOY governing board of directors Chairman of the Board CHRIS CARRILLO Vice Chairman DAVID E. SMITH Governing Board Member RONALD L. COATS Governing Board Member JAMES MORALES, JR. Governing Board Member PHILLIP R. GOODRICH 12 FISCAL YEAR BUDGET

15 Introduction INTRODUCTION CARPET ROSE Rosa x Flower Carpet Red Recognized for its large bushes that can grow 4-10 feet tall, the Rosa x Flower Carpet Red produce clusters of flowers several times a year and is both disease resistant and drought tolerant.

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17 INTRODUCTION Annual financial plan, policy document and operations guide for transparent communication Budget Guide The budget document is the District s annual financial plan prepared by District Management and approved by the Governing Board. The financial plan serves as a policy document, operations guide for programs, and as means of transparent communication. The intended audience of the budget document is citizens, local businesses, creditors, governmental agencies, and other stakeholders. BUDGET DOCUMENT SECTIONS The budget document consists of 8 sections including: Transmittal Letter This section includes the District Officials, General Manager/CEO s Budget Transmittal Letter, Strategic Goals and Strategies, District-Wide Goals, and Priorities and Issues. Introduction The Introduction section includes the Budget Guide, Statistical/Supplemental Information, Organizational Structure, and District Vision. Financial Summary This section presents an in-depth District-Wide overview of the FY Budget. Consolidated Financial Schedules This section is a comprehensive summary of the District s Operating Budget presented for the District as a whole, and then for each of the District Funds. Program Summaries This section provides comprehensive information for each functional program within the District including their operational budget. The FY Budget is organized into the following summary programs: Governing Board General Administration The District maintains a drought-tolerant demonstration garden. Plants from the garden are highlighted throughtout this document. 15 FISCAL YEAR BUDGET

18 DISTINGUISHED BUDGET AWARD The Government Finance Officers Association of the United States and Canada (GFOA) presented a Distinguished Budget Presentation Award to East Valley Water District, California for its annual budget for the fiscal year beginning July 1, In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan, and as a communication device. This award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another award. Human Resources Public Affairs Conservation Finance and Accounting Information Technology Customer Service Meter Services Engineering Water Production Water Treatment Water Quality Water Maintenance Wastewater Maintenance Facilities Maintenance Fleet Maintenance Each program section includes: Program Personnel: This section is the authorized personnel allocated to each program with a program organization chart. Program Structure: This chart displays the reporting chain for program personnel. Function: This section includes a basic description of the responsibilities of each program. Goals & Objectives: This section identifies specific goals and objectives for FY Accomplishments: This section includes highlights from FY Significant Changes: This section identifies causes of significant changes to program funding. Levels of Service: This section links key performance indicators to the District s Goals & Objectives. Key Performance Indicators: These tables present measures that help the District define and evaluate a program s performance. Program Budget Detail: This section is a breakdown of the program expenditures by category or line item. 16 EAST VALLEY WATER DISTRICT

19 Capital Budget This section presents the Capital Outlay expenditures and Capital Improvement Projects for the FY Budget. Glossary This section provides definitions for general terms and the Chart of Accounts used throughout the budget document. BUDGET FINANCIAL INFORMATION East Valley Water District operates on a fiscal year, or budget time period, that begins on July 1 and ends June 30. The columns typically presented are: FY Actuals FY Budget Projected Budgeted Amount Changed % Change FY Actuals Actual financial information for FY as reported in the Comprehensive Annual Financial Report. The actual financial information is reported in the budget document on a budgetary basis. FY Budget The FY Budget was adopted by the Governing Board on June 28, 2017 and may also include any adjustments approved by the Governing Board at the Mid-Year Budget Review. FY Projected The FY Projected column reflects the FY Budget in addition to any budget amendments approved by the Governing Board during the fiscal year. The FY Projected column is also adjusted to reflect management s estimate of what revenues and expenditures will be at the end of the fiscal year. FY Budgeted This column initially reflects the FY Proposed Budget submitted by the General Manager/CEO. After the Governing Board reviews and approves the FY Budget, the information in the FY column changes, if necessary, to reflect the Board s actions. Amount Changed / % Change These columns provide the amount changed/ percent change from the previous year s budget to the newly proposed budget. Three years of financial information are presented to facilitate user analysis. 17 FISCAL YEAR BUDGET

20 Statistical/Supplemental Information EVWD provides water and wastewater services to residents within its 30.1 square mile area to over 102,000 people within the cities of Highland and San Bernardino, portions of unincorporated County of San Bernardino, the San Manuel Band of Mission Indians, and Patton State Hospital. The District was formed through a local election of mostly citrus grove operators, to have water service provided by a public agency. EVWD is located in the foothills of the San Bernardino Mountains, 65 miles east of Los Angeles in the County of San Bernardino. twin creek sand creek 210 cook creek HIGHLAND warm creek 210 city creek elder creek plunge creek SEVEN OAKS DAM plunge creek twin creek SAN BERNARDINO city creek santa ana river santa ana river mill creek WATER SOURCES With a service area just over 30 square-miles, the District has three sources for water, the Santa Ana River, the Bunker Hill Groundwater Basin, and the State Water Project. The Santa Ana River (SAR) starts with natural springs and snow melt high in the San Bernardino Mountains. Groundwater is drawn from the Bunker Hill Basin, a natural underground storage area made up of soil, sand, and gravel. A small portion of the District s water is imported from Northern California through the State Water Project. EVWD has access to this water through Valley District. 17% Santa Ana River (Surface Water) 82% Bunker Hill Basin (Groundwater) 1% Imported from Northern California (Surface Water) 18 FISCAL YEAR BUDGET

21 WASTEWATER COLLECTION & TREATMENT The District is responsible for the collection and conveyance of wastewater within the service area. Currently, all wastewater is sent to the San Bernardino Municipal Water Department facilities, where it is treated in accordance with a Joint Powers Agreement. In order to create a new source of supply, EVWD is preparing to construct the Sterling Natural Resource Center (SNRC) facility in the city of Highland that will treat up to 10 million gallons of wastewater daily and recharge it into the Bunker Hill Groundwater Basin. This project will result in hundreds of millions of gallons of water stored for use in dry years a new supply of recycled water for beneficial reuse higher in the Santa Ana River watershed. The SNRC will also provide an opportunity for potential new and/or enhanced riparian and aquatic habitats in City Creek. Once construction on the SNRC is completed, EVWD will be responsible for treating the wastewater created within its service area. POPULATION GROWTH Population growth projections vary within East Valley Water District s service area due to a number of proposed developments with unspecified timing for completion. Land use agencies have incorporated approximately 5,000 new housing and business units within General Plan documents, with approximately 200 units under construction in FY CLIMATE The climate in Highland and San Bernardino varies throughout the year, but overall is considered arid. On average, there are 283 days of sunshine per year. Temperatures average 94 degrees in the summer and 42 degrees during the winter. This area typically averages 13 inches of precipitation annually, mostly during the months of January through March. GOVERNMENT East Valley Water District is a California Special District established in The District has a fivemember Governing Board elected by voters at-large to staggered four-year terms. The Governing Board represents the public s interest as policy makers with regards to rate for service, policies, ordinances, and budget adoption. Appointed by the Governing Board, the General Manager/CEO is responsible for overseeing daily operations and managing staff resources. East Valley Water District is a rate-based organization that receives no tax-related revenue and operates in accordance with Division 12 of the California Water Code. East Valley Water District s service area includes the city of Highland, San Manuel Band of Mission Indians, Patton State Hospital, and portions of both the city and county of San Bernardino. Additionally, the District is within the Sphere of Influence of the Inland Valley Development Authority which oversees the reuse of the former Norton Air Force Base. Average Household Income $47,016 EVWD $54,117 City of Highland $38,213 City of San Bernardino $54,496 County of San Bernardino EDUCATION Residents within East Valley Water District s service area have access to award winning K-12 schools through the Redlands Unified School District (RUSD) and San Bernardino City Unified School District (SBCUSD). Higher education institutions located near East Valley Water District s service area include: California State University, San Bernardino; California Baptist University; Loma Linda University; University of California at Riverside; and University of Redlands. Community college within the region include: Crafton Hills College; Riverside City College; and San Bernardino Valley College Graduation Rates 90% from RUSD 85% from SBCUSD 19 FISCAL YEAR BUDGET

22 HOSPITAL & MEDICAL FACILITIES Hospital and medical facilities located in or near the East Valley Water District service area include Arrowhead Regional Medical Center, Loma Linda University Medical Center, Kaiser Foundation Hospital, Redlands Community Hospital, Community Hospital of San Bernardino, J. Pettis Veteran s Administration Hospital, and St. Bernardine Medical Center. Additionally there are a number of urgent care and outpatient facilities located throughout the region. TRANSPORTATION Public transportation is available within the East Valley Water District service area through OmniTrans. With a variety of routes, OmniTrans provides busing services throughout the San Bernardino Valley, including cities of Highland and San Bernardino. Community members have access to the Metrolink commuter rail service, which provides long distance transportation to commuters from the San Bernardino area to major center of employment including Los Angeles and Orange County. Interstate 210 and both State Route 18 and 330 traverse through the District s boundaries. These roadways provide access to major transportation corridors including Interstates 215, 15, and 10; and State Routes 18, 38, 60, and 91. PUBLIC SAFETY East Valley Water District serves members of the community within the cities of Highland and San Bernardino, unincorporated County of San Bernardino and San Manuel Band of Mission Indians. Within these communities law enforcement is provided by the San Bernardino County Sheriff s Department and the City of San Bernardino Police Department. Fire protection services are provided by the California Department of Forestry and Fire and Protection (CalFire), San Bernardino County Fire Department, and the San Manuel Fire Department. MAJOR EMPLOYERS Major employment industries within the cities of Highland and San Bernardino include schools, mental health services, public administration, rail, health care, public safety, casinos, transportation, and construction. DISTRICT SPOTLIGHT The District serves a population of 102, Active Ground Water Wells 450 Fire Hydrants Flushed Annually 15,700 Manual & 7,300 AMI Automatic Meters Read Monthly 214 Miles of Sewer Main 300 Miles of Water Main Established 30.1 Square Mile Service Area Leaks Repaired 3,300 Water Samples Collected Annually 700 Valves Exercised 15,000,000 average Gallons of Water Produced Daily 28,977,000 Gallons of Potable Water Stored 6,000,000 Gallons of Sewage Conveyed Daily 20 FISCAL YEAR BUDGET

23 Organizational Structure Ratepayers Governing Board Legal Counsel FTE: 2 General Administration EO: 5 General Manager/ CEO Chief Financial Officer FTE: 2 Human Resources Director of Engineering & Operations FTE: 3 Information Technology Public Affairs Engineering FTE: 5 Finance FTE: 4 FTE: 5 Conservation Operations Customer Service FTE: 1 FTE: 7 Meter Services Water Maintenance FTE: 3 FTE: 15 Water Production Wastewater Maintenance FTE: 6 FTE: 4 Water Treatment Facilities Maintenance FTE: 2 FTE: 2 Water Quality FTE: 2 FTE: 1 Fleet Maintenance PERSON/POSITION PROGRAM FTE: FULL TIME EMPLOYEES EO: ELECTED OFFICIALS 21 FISCAL YEAR BUDGET

24 DISTRICT VISION In April 2015, the Governing Board adopted a new District Vision and Core Values to replace the existing Mission Statement. Additionally, on January 10, 2018, the District updated and adopted an ambitious Strategic Plan, including Agency Goals to further enhance the effort set forth in the 2012 Strategic Initiatives. East Valley Water District is a performance based agency. In order to ensure consistent decision-making throughout the organization, the Governing Board adopted the updated District Vision. By setting clear expectations, all staff members are encouraged to be active participants in operations while looking for opportunities to make a positive impact on the community. & Enhance Preserve THE QUALITY OF LIFE FOR OURCommunity THROUGH INNOVATIVE LEADERSHIP &World Class PUBLIC SERVICE core values LEADERSHIP Motivating a group of people to act towards achieving a common goal or destination. PARTNERSHIP Developing relationships between a wide range of groups and individuals through collaboration and shared responsibility. STEWARDSHIP Embracing the responsibility of enhancing and protecting resources considered worth caring for and preserving. 22 FISCAL YEAR BUDGET

25 Strategic Plan AGENCY GOALS & OBJECTIVES I. Implement Effective Solutions Through Visionary Leadership A. Identify Opportunities to Optimize Natural Resources B. Maximize Internal Capabilities through Ongoing Professional Development C. Strengthen Regional, State and National Partnership D. Encourage Performance Based Results through Staff Empowerment II. Maintain A Commitment to Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management B. Utilize Effective Communication Methods C. Pursue Alternative Funding Sources D. Provide Quality Information to Encourage Community Engagement III. Deliver Public Service With Purpose While Embracing Continuous Growth A. Advance Emergency Preparedness Efforts B. Strive to Provide World Class Customer Relations C. Promote a Positive Organizational Culture D. Embrace an Environment of Active Learning and Knowledge Sharing IV. Promote Planning, Maintenance and Preservation of District Resources A. Develop Projects and Programs to Ensure Safe and Reliable Services B. Enhance Planning Efforts that Respond to Future Demands C. Dedicate Efforts Toward System Maintenance and Modernization D. Enable Fact-Based Decision Making Through State-of-the-Art Data Management Adopted January 10, 2018 To maintain momentum and encourage continued growth, the District adopted these foundational principles. 23 FISCAL YEAR BUDGET

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27 Financial Summary GOLDEN SEDUM Sedum adolphii Drought tolerant, Sedum Adolphii is a colorful succulent with golden-apricot hue foliage. Depending on the season and sun exposure, leaf tips take on an orange-red color. FINANCIAL SUMMARY

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29 FINANCIAL SUMMARY An in-depth District-Wide overview of the FY budget. Financial Policies The East Valley Water District financial management policies provide a basic framework for the overall fiscal management of the District. The policies represent a foundation for addressing changing circumstances and conditions, and to assist in the decision-making process. Financial policies represent guidelines for evaluating both current activities and proposals for future programs. They also reflect long-standing principles and practices, which have enabled the District to maintain its financial stability. Policies are reviewed annually to ensure the guidelines represent a realistic, current framework for policy decisions. BALANCED BUDGET East Valley Water District shall prepare an itemized budget for each fund and each program within those funds. The budgets will be balanced, with current revenues and use of reserves equal to or greater than current expenditures/expenses using the following strategies: improve productivity, raise fees to offset costs of providing services and/or use reserves if available. INVESTMENT POLICY The District s Investment Policy applies to the investment of short-term operating funds of the District in excess of those funds required to meet current District expenditures. District policy requires adherence to California Government Code sections 5921 and regarding allowable investments. The policy also includes guidelines on Pooling of Funds, Safety, Liquidity, Yield, Prudence, Ethical Standards, Risk, Diversification, and Reporting. RESERVE POLICY The District recognizes that fiscal responsibility requires anticipating, and preparing for, unforeseen events, in addition to ensuring sufficient funding is available for current operating, capital, and debt service needs. To that end, the District has adopted a Designated Funds (Reserve) Policy as part of prudent financial planning and to ensure sufficient funding for current and future needs. The Designated Funds Policy has established the following reserves and reserve target levels: Operating Reserves maintain 90 days of District s budgeted total operating expenses; Rate Stabilization Reserves maintain 45 days of District s budgeted total operating expenses; 27 FISCAL YEAR BUDGET

30 Capital Replacement Reserves minimum of 100 percent of depreciation expense for the preceding year; Emergency Reserves the target for this reserve is 2 percent of the total value of Plant and Equipment. DEBT POLICY The District has adopted a policy regarding the utilization of debt. Standards established in this policy require: An equitable allocation of capital costs/charges between current and future system users; Minimum rate volatility. Budget Process The budget reflects direction from the Governing Board as established by the District Vision and communicated to District staff through various meetings and workshops. The purpose of this budget document is to communicate the District s financial priorities with citizens, local businesses, creditors, rating agencies, other local agencies and stakeholders, and District staff. The FY Budget represents guidelines established to address the District s short-term and long-term goals and objectives. This document also demonstrates the District s ability to use financial resources for completing critical capital projects for current and future customers as well as the District s commitment to meet its financial obligations. Staff is confident that the financial framework outlined in the FY Budget will allow the District to deliver reliable, high-quality water and wastewater services to its customers in a prudent and sustainable manner. Each year, administrative and operational program managers establish goals and objectives in support of the District s strategic initiatives and which, upon adoption by the Governing Board, provide clear direction to staff regarding District-Wide priorities. Progress is measured throughout the fiscal year and reported to the Governing Board on a quarterly basis. Moreover, in developing the budget, staff utilized the District Vision for prioritizing District resources for operational and capital activities. In addition, the District confines long-term borrowing to capital improvement projects that cannot be financed from current revenues. When the District finances capital projects by issuing bonds, it will pay back the bonds within a period not to exceed the estimated useful life of the asset. The District maintains good communication with bond rating agencies regarding financial condition and will follow a policy of full disclosure on every financial report. The District has no legal debt limits. STAKEHOLDER INPUT The District has established a Community Advisory Commission (CAC) which meets regularly at publicly noticed meetings, to discuss significant affairs of the District, including development of the annual budget. Members of the CAC are civic minded community leaders who volunteer their time to provide input to staff on agenda items. The District Board also conducts a series of public workshops to discuss important milestones and provide the public with multiple opportunities to provide input throughout in the development of the annual budget. Public comment is welcomed and encouraged at these workshops. DISTRICT VISION To help ensure consistent purpose, East Valley Water District has adopted a comprehensive statement that serves as a guide for the decision-making process throughout the organization DEVELOP DISTRICT GOALS AND OBJECTIVES The District is developing a Five-Year work plan to establish a series of long-term objectives that will link management and staff work efforts to the District s Strategic Plan. The Five-Year work plan will be presented to the Governing Board for consideration at a regular Board meeting during FY Adoption of a Five-Year work plan will allow staff to establish program goals that take more than a single fiscal year to accomplish, yet still relate to specific, organizational objectives. With each annual budget, 28 FISCAL YEAR BUDGET

31 STAKEHOLDER INPUT THROUGHOUT PROCESS District Vision Develop Program Goals & Objectives Establish Performance Indicators & Estimate Costs Adopt Budget Monitor Programs & Adjust as Necessary incremental steps in the Five-Year work plan can be adopted as current year District goals and objectives. Currently, annual District goals and objectives are tied to the Strategic Plan, and adopted as part of the General Manager/CEO s annual performance evaluation. DEVELOP PROGRAM GOALS AND OBJECTIVES Each program manager is tasked with developing achievable and measurable goals and objectives to be implemented in a single fiscal year. This endeavor clearly identifies the planned efforts of the program for the given period, links the program s efforts to the broader District goals, and allows program employees to propose / establish individual goals that support the District s long-term goals and vision. ESTABLISH KEY PERFORMANCE INDICATORS & ESTIMATE COSTS To assess the organization s productivity and effectiveness, unique key performance indicators are utilized as a quantitative measure. Cost estimates reflect the anticipated expenses for accomplishing each program s day-to-day operational tasks, special projects and overall program goals. ADOPT BUDGET Once the budget document has been prepared, including revenue and expense projections, the East Valley Water District Governing Board adopts a final budget prior to June 30 of each year. A hard copy version of the final budget document is available to the public on request, or can be viewed in its entirety on the District website. PROGRAM MONITORING AND BUDGET ADJUSTMENTS In January of each year, District management meets to analyze revenues and expenditures to determine whether realized revenue has exceeded revenue projections to the extent that additional program services or capital projects can be proposed, and to determine whether transfers between budget line items are necessary to ensure that budget limitations are not exceeded. Requests for budget adjustments are submitted by program managers to Executive Management for review, who then forward the requested adjustments to Finance for incorporation into proposed budget amendments to be presented to the Governing Board at a Mid-Year Budget Review in February. When possible, adjustments have no net effect on the original budget balance unless additional revenue is available. However, if revenue shortfalls or unanticipated costs are realized, and transfers between line items cannot meet the projected deficit, a recommendation to defer capital projects or draw on reserves is usually required to meet the shortfall. All proposed changes are presented to the Governing Board at a Mid-Year Budget Review. 29 FISCAL YEAR BUDGET

32 CURRENT AND PROPOSED BUDGET CYCLE CALENDAR Date June 12, 2018 Activity FY Budget Workshop June 27, 2018 FY Budget Adoption October 24, 2018 January 24, 2019 February 12, 2019 February 13, 2019 March 4, 2019 March 14, 2019 March 28, 2019 April 1-4, 2019 April 17, 2019 April 24, 2019 May 15, 2019 June 12, 2019 June 26, 2019 FY st Quarter Budget Review at Public Board Meeting Budget Kick-Off Meeting with Program Managers Dept. Goal Concepts Due to Dept. Admins for General Manager/CEO FY nd Quarter / Mid-Year Budget Review at Public Board Meeting FY Capital Outlay and Capital Improvement Program Planning Meeting FY All Capital Requests Due to Finance FY New Position Requests, Program Budget Requests and Goals & Objectives Due to Finance FY Review Proposed Goals & Objectives with Program Managers & General Manager/CEO FY Proposed Goals & Objectives Workshop at Public Board Meeting FY rd Quarter Budget Review at Public Board Meeting FY Revenue Projection Workshop at Public Board Meeting FY Budget Workshop at Public Board Meeting FY Budget Adoption at Public Board Meeting 30 FISCAL EAST VALLEY YEAR BUDGET WATER DISTRICT

33 Basis of Budgeting The District s financial records are kept in accordance with Generally Accepted Accounting Principles (GAAP) for governmental enterprise funds. The District follows the GAAP requirement that enterprise funds use the full accrual basis of accounting. However, there are exceptions where the accrual basis is not conducive to effective presentation of the District s budget, in which case, GAAP is not followed. Those exceptions are as follows: Compensated absence liabilities that are expected to be liquidated with current expendable financial resources are accrued as earned by employees (GAAP standard) as opposed to being expended when paid (budget procedure). Principal payments on Long Term Debt are applied to the outstanding liability on a GAAP basis, as opposed to being expended on a Budget basis. Capital Outlay are capitalized on a GAAP basis, however, on a Budget basis, they are treated as expenditures. Depreciation expense is recorded on a GAAP basis but is not contemplated on the Budget basis. Interest expenditures are capitalized during construction on a GAAP basis, but are reported as an expense on a Budget basis. Pension expense is budgeted based on employer contribution rates assigned by CalPERS. For financial statement reporting, pension expense is recorded based on the change in the net pension liability in accordance with GASB 68. Fund Structure GAAP requires that East Valley Water District account for its activities as a single, governmental enterprise fund. The activities of enterprise funds closely resemble those of ongoing businesses in which the purpose is to conserve and add to resources while meeting operating expenses from current revenues. Enterprise funds account for operations that provide services on a continuous basis and, in the case of East Valley Water District, are entirely financed by revenues derived from user charges. EVWD Operations WATER FUND WASTEWATER FUND WATER PRODUCTION PLANTS DISTRIBUTION & STORAGE RAW WATER SOURCES WASTEWATER DISCHARGE WATER RECLAMATION FACILITIES COLLECTION & CONVEYANCE CUSTOMER USE 31 FISCAL YEAR BUDGET

34 Though in a single Enterprise Fund, East Valley Water District engages in two separate and distinct business-type activities including the distributions of potable water, and the collection of wastewater. Accordingly, the District s budget is organized based on these activities, or sub-funds, hereafter referred to as the Water Fund and the Wastewater Fund. The Water Fund accounts for the costs of acquiring raw water, treating the water, and then pumping and distributing the treated water to District customers. These operations are supported by customer accounts and general administration functions. The Wastewater Fund accounts for the cost of collecting wastewater from residential and commercial customers and then delivering the wastewater to the San Bernardino Municipal Water Department Treatment Plant. Both Funds support a significant amount of facilities and infrastructure. Accordingly, each fund contributes to the maintenance, replacement and improvement of that infrastructure. When the issuance of debt is appropriate to fund major capital projects, each fund has the authority to issue debt. To support these costs each fund adopts its own user rates, fees and charges, and has its own selfbalancing set of accounts. Budgets for each fund are adopted to support the associated capital, and debt service costs, to make reasonable contributions to reserves, and to pay for an allocated portion of operating and maintenance program expenses. Additional detail about the activities and budgets of each fund are included at the Water Fund and Wastewater Fund tabs in this document. Water Sales Service Charges Investment/ Other Income Collection Charges Treatment Charges Investment/ Other Income Water Fund FUND STRUCTURE Wastewater Fund Water Capital Expenditures & Debt Service District Operations & Maintenance Programs Wastewater Capital Expenditures & Debt Service 32 FISCAL YEAR BUDGET

35 Fund/Program Relationship District operating and maintenance expenses are all budgeted and accounted for by Program. Expenses incurred by Program s are then allocated to the water and wastewater funds based on the assessed benefit of Program services to each fund. The benefit assessment entails the evaluation of each program and the services provided through activity based costing. Programs with activities fully aligned with the purpose of one fund or the other, are charged fully to the appropriate fund, while programs with general and administrative type functions are generally allocated using a 70%/30% split. The percentage allocation is often adjusted for unique circumstances. For example, with the implementation of water budget based rates, allocated costs for Customer Service were shifted from the Wastewater Fund to the Water Fund due to the increased cost of administering the new rates. In addition, while a new wastewater recycling facility (Sterling Natural Resource Center) is being explained and promoted to District ratepayers, Public Affairs costs have been allocated more toward the Wastewater Fund. Below is a table illustrating the Fund/Program relationship for the FY : Program Water Fund Wastewater Fund Total 1000 Governing Board $ 235,900 $ 101,100 $ 337, General Administration 880, ,400 1,258, Human Resources/Risk Management 693, , , Public Affairs 571, ,000 1,142, Conservation 593, , Finance 792, ,000 1,131, Information Technology 706, ,700 1,009, Customer Service 1,357, ,100 1,786, Meter Services 283, , Engineering 1,064, ,300 1,521, Water Production Administration 494, , Source of Supply 2,791,000-2,791, Pumps & Boosters 727, , Transmission & Distribution 366, , Water Treatment 848, , Water Quality 434, , Maintenance Administration 310,500 34, , Water Maintenance 2,204,000-2,204, Wastewater Maintenance - 8,996,000 8,996, Facilities Maintenance 742, , , Fleet Maintenance 413,100 45, ,000 TOTAL $ 16,507,000 $ 12,168,000 $ 28,675, FISCAL YEAR BUDGET

36 Budget Summary The budget for FY is balanced, and reflects East Valley Water District s commitment to allocating anticipated resources to meeting the expectations of District ratepayers, creditors, and other stakeholders. The District projects that it will receive $37,848,000 in revenue during FY , and has developed a budget plan to allocate $28,675,000 toward funding of program operations, $4,358,000 toward the amortization of outstanding debt, and $4,711,000 toward capital outlay and the Capital Improvement Program. The table below presents a summary of revenue by type, and expenditures by cost category, and is followed by a discussion of revenue and expenditures. REVENUE/SOURCES Water Fund Wastewater Fund FY Total Water Sales / Wastewater Collection Charges $ 15,100,000 $ 4,630,000 $ 19,730,000 Wastewater Treatment Charges - 8,233,000 8,233,000 Water System (Meter) Charges 8,960,000-8,960,000 Other Charges and Income 673, , ,000 TOTAL REVENUE/SOURCES 24,733,000 13,115,000 37,848,000 OPERATING EXPENSES Employment Expenses 7,371,900 2,166,100 9,538,000 Water Costs 1,067,000-1,067,000 Contracted Wastewater Treatment - 8,233,000 8,233,000 Power Costs 1,700,000-1,700,000 Materials and Supplies 1,089, ,550 1,278,500 Contract Services 4,841,700 1,398,800 6,240,500 Other Operating Expenses 436, , ,000 TOTAL OPERATING EXPENSES 16,507,000 12,168,000 28,675,000 OTHER USES Debt Service 4,046, ,000 4,358,000 Capital Outlay 931, ,000 1,106,000 Capital Improvement Program 3,175, ,000 3,605,000 TOTAL OTHER USES 8,152, ,000 9,069,000 TOTAL OPERATING EXPENSES/OTHER USES 24,659,000 13,085,000 37,744,000 TOTAL NET SURPLUS/(DEFICIT) $ 74,000 $ 30,000 $ 104, FISCAL YEAR BUDGET

37 Revenue Summary Revenue projections are key to determining the amount of financial resources available to support District programs and other obligations, therefore, projections are developed early in the budget process and then presented to the District s Board of Directors in early May. 12% Wastewater Collection East Valley Water District receives 98% of its revenue from user rates and fees; the District receives no increment from property or sales taxes. Rates and fees are reviewed on 3 to 5 year cycles and adjusted as necessary to cover the costs of providing services to ratepayers. The District derives its authority for setting rates from of the California Water Code, and rate adjustments are adopted at public hearings conducted in accordance with requirements established by California Propositions 26 and/or 218. The District has five major revenue categories based on rates: 22% Wastewater Treatment 2% Other Charges 24% Meter Charges 40% Water Sales Water Sales Meter Charges Wastewater Collection Wastewater Treatment Other Charges REVENUE HISTORY AND FORECAST (IN MILLIONS) FY FY FY Estimated FY Projected FY Projected FY Projected Water Revenue Wastewater Revenue 35 FISCAL YEAR BUDGET

38 Water and wastewater rate revenues are highly reliant on new development and rate increases for sustained growth. Water sales are also reliant on consumer demand, which increases or decreases based on weather and water rates. The multi-year drought in California forced the District, and like agencies, to promote conservation and reduce water usage by a statewide average of 25%, threatening to cause a sharp decline in water sales revenue. East Valley Water District avoided this decline by revising its rate structure. At the same time, development has been nearly non-existent for several years. Small infill development is proceeding, but large developments are delayed as they navigate the environmental review process specifically, the Harmony Development will be addressed by a ballot measure during the November 2018 elections. No significant number of new customer accounts have been built into projections for FY A more detailed description of the District s major revenue sources, and related trends, is included in the following sections. In addition, the Water Fund and Wastewater Fund sections of this document include a detailed discussion of the rates used to calculate FY revenue projections. WATER SALES The District produces potable water for sale to four customer classes; single family residential, multifamily residential, commercial and irrigation. All customers are billed on a monthly cycle based on the amount of water usage, which is metered and measured in hundred cubic feet (HCF) where 1 HCF is equal to 748 gallons. The District bills for water consumption in three ascending Water Budget rate tiers. Therefore, as customers water usage exceeds established tier widths or thresholds, water becomes more expensive. Water Budget tiers are unique in that tier width, or the number of HCF billed at each tier, is determined based on the individual customer s characteristics. For single and multi-family customers, the Tier 1 width is determined based on the number of occupants in a dwelling, and is intended to supply the customer with sufficient water for indoor health and safety needs. Tier 2 width is based on a customer s landscaped square footage, and the measured evapotranspiration, or the rate at which plants and soil lose moisture during the month being billed. The Tier 2 budget is intended to supply sufficient water for efficient irrigation of the landscaped square footage. Tier 3 is billed for water use in excess of the Tier 1 and 2 budgets and is deemed to be inefficient use. Irrigation meter customers receive only a Tier 2 budget as described above, with usage in excess of the budget billed at the Tier 3 rate. Finally, commercial customers, having neither occupants or landscaped area associated with their domestic meter, receive Tier 1 and 2 water budgets based on the business historical water usage, with excess usage billed at the Tier 3 rate. The table below summarizes water sales volume (HCF) by billing tier, including conservative projections for FY Customer Consumption in Hundred Cubic Feet FY Actual FY Actual FY Projected FY Budgeted Tier 1 3,640,752 3,662,249 3,631,811 3,556,000 Tier 2 2,164,931 2,489,442 2,469,029 2,326,500 Tier 3 816, ,395 1,207, ,500 TOTAL 6,622,397 7,067,086 7,307,842 6,777, FISCAL YEAR BUDGET

39 There are no rate adjustments scheduled to become effective during FY , so the projected drop in customer consumption for the upcoming year is due to anticipated conservation messaging at the State level due to the implementation of permanent conservation regulations. Based on the projection of water sales in volume, the District has projected water sales of $15.1 million. The graph below shows water sales trends for four years and the current year projection. Water Sales $16,342,378 $16M $14M $13,505,159 $14,556,339 $15,100,000 $12M $11,927,523 $10M $8M $6M $4M $2M Flat Rate Tier 1 Tier 2 Tier 3 FY FY FY FY Projected FY Budgeted The District transformed its rate structure from a flat rate to water budget tiered rates in FY FISCAL YEAR BUDGET

40 WATER SYSTEM CHARGES Also referred to as Meter Charges, these charges are fixed monthly charges assessed to customers based on the size of the meter serving their property. Along with the rate restructuring discussed above, meter charges were increased significantly (up to 70%) to shift some of the burden for revenue stability from unpredictable water sales to these more reliable fixed charges. A second rate adjustment of 10% became effective July 1, 2016, which was the last adjustment to Meter Charges. Meter charge revenue is projected to remain the same for FY as there are no rate adjustments that will become effective during the year and there will be no significant change in the number of customer connections. Meter Charges $9M $8,944,652 $8,845,000 $8,960,00 $8M $8,063,077 $7M $6M $5M $4,874,581 $4M $3M $2M $1M FY FY FY FY Projected FY Budgeted East Valley Water District is a not-for-profit public agency and is required by law to only charge its customers the costs associated with providing utility services. 38 FISCAL YEAR BUDGET

41 WASTEWATER COLLECTION CHARGES This charge is assessed to District customers to fund the maintenance and replacement of wastewater collection pipelines, make wastewater debt service payments, and fund program services associated with the wastewater fund. The rate structure includes a fixed monthly charge of $15.36 for single family residences, and a combination of fixed and volumetric charges for commercial and multi-family customers currently $3.90 and $.55 per HCF of water usage, respectively. Wastewater collection rates have not been adjusted since 2012 so wastewater collection revenue has remained relatively flat over the past five years, fluctuating slightly with small infill development projects and with changes in water usage by commercial customers. A noticeable change in FY was due to customer response to tiered water rates, and significant conservation efforts in response to the severe drought that impacted California. Wastewater Collection Charges $5M $4.5M $4,559,667 $4,286,594 $4,543,978 $4,650,970 $4,630,000 $4M $3.5M $3M $2.5M $2M $1.5M $1M $500K FY FY FY FY Projected FY Budgeted Single Family Residential Multi-Family / Commercial 39 FISCAL YEAR BUDGET

42 WASTEWATER TREATMENT CHARGES Rates for these charges are established by the SBMWD, which is currently contracted to treat all wastewater generated by District customers. The District bills customers within its service area at the established rates, receives customer payments, and then remits these revenues collected to the SBMWD. Wastewater treatment rates established by the City of San Bernardino have increased an average of 3.5% over the last six years, with the most recent increase of 3.4% became effective July 1, Wastewater Treatment revenue increased significantly in FY , partially due to the modest rate increase, and partially due to customer perceptions that the severe drought in California is forgotten due to heavy rains and snow in the winter of Due to the wet winter, conservation messaging by water agencies had subsided, however, a relatively dry winter in 2018 will again lead to increased conservation messaging and a reduction in consumption. Wastewater treatment rates for FY include a fixed monthly charge of $21.55 for single family residential customers, and a combination of fixed and volumetric charges for commercial and multi-family customers currently $3.90 plus a per HCF rate ranging from $1.29/HCF to $3.18/HCF depending on the type of business run by the commercial customer. Total Wastewater Treatment Charges projected for FY are $8,233,000. Wastewater Treatment Charges $8.6M $8,578,636 $8.3M $8,129,944 $8,233,000 $8M $7.7M $7.3M $7,165,655 $7M $6,907,828 $6.7M FY FY FY FY Projected FY Budgeted Wastewater treatment charges are collected on behalf of the City of San Bernardino Municipal Water Department. 40 FISCAL YEAR BUDGET

43 OTHER CHARGES AND INCOME These charges are assessed according to an adopted fee schedule, but are only charged to users who request, or require, use of District resources beyond the scope of delivering water and wastewater services. The FY projection for these charges is $925,000, which is calculated using adopted fees and an estimate of the number of occurrences for each type of fee based on historical trends. $220,000 Investment Income $72,000 Initiation of Service $115,000 Delinquent Fees $89,000 Miscellaneous Revenue $70,000 Reconnect Fees $359,000 Disconnect Notice Charge Expenditure Summary The District prepares its annual budget and financial plan based on operating expenses proposed by program managers, scheduled debt service payments, and capital expenditures prioritized in the District s Capital Improvement Program. 11.5% Debt Service 12.7% Capital Expenditures 26% Employment Expenses Resources required for these expenditures are then appropriated from the District s Water and Wastewater enterprise funds. 1.6% Other Operating 19.1% Materials/ Contract Services 21.8% Contracted Wastewater Treatment 2.8% Water Costs 4.5% Power Costs 41 FISCAL YEAR BUDGET

44 EMPLOYMENT EXPENSES Employment expenses include salaries and benefits paid for 68 full time employees and 3 temporary employees. Employees are represented by two inhouse bargaining units, or employee partnerships, which have negotiated a three-year Memorandum of Understanding (MOU) regarding wage and benefit adjustments through FY Total employment expenses are projected to be $9,538,000 for FY Salaries include regular wages, overtime and oncall pay, paid leave time, incentives, and differential payments which are awarded upon attainment of designated certifications. Salaries are projected to increase by approximately 4% for , which includes a 3% cost of living adjustment (COLA) and step increases, subject to annual performance evaluations, for 32 employees who have not reached the top step in their pay range. Benefit programs include a retirement plan with the California Public Employee Retirement System (CalPERS), a health insurance plan, and worker s comp and Medicare insurance. Retirement plan funding requirements are determined through actuarial valuations conducted by CalPERS, which stipulates an employer and employee share. The District pays the employer share, while employees pay their share of contributions through payroll withholding. In previous years, the annual required contributions that member agencies have paid to CalPERS, plus investment earnings on plan assets, have not been sufficient to offset actuarially calculated pension obligations, and, as a result, most CalPERS agencies report a Net Pension Obligation (NPO) on their yearend financial reports. At June 30, 2017, the District had a reportable NPO of $10 million. CalPERS has adopted a plan to amortize the NPOs through increased employer contributions. Accordingly, required District contributions to CalPERS are projected to increase by $193,000, or 19% for FY To mitigate the fiscal impact of these increases, the District looks for opportunities to make additional payments toward unfunded pension liabilities; additional payments of $350,000 and $500,000 were made in Fiscal Years and , respectively. In addition, development of a financial plan to further paydown the unfunded liability has been established as a District-Wide goal for FY Healthcare costs are also split between the District and employees as the District pays 90% to 95% of a designated benchmark plan, with employees paying the balance. Premiums for the benchmark plan decreased 9% for 2018, affecting both District and employee contributions to healthcare costs accordingly. $10M $8,709,178 $8,917,376 $9,957,000 $9,538,000 $8M $7,166,166 $6M $4M $2M Benefits Salaries FY FY FY FY Projected FY Budgeted 42 FISCAL YEAR BUDGET

45 WATER COSTS The District anticipates customer demand for approximately 15,560 acre-feet, or 5.07 billion gallons, of water during the FY To meet this demand, the District will procure water from three different raw water sources groundwater, surface water, and the purchase of imported water. Each of these sources have associated rates, fees or assessments charged by other agencies/companies as explained below: Groundwater - assessment to be paid to the San Bernardino Basin Capital Groundwater Council (GC), a collaborative effort formed in January 2018 for the purpose of purchasing imported water to restore and maintain sustainable groundwater levels. Assessment amounts are based on historical pumping levels by each of the signers to the GC Framework Agreement, and the District s assessment for FY is projected to be $445,000. The GC assessment takes the place of a pumping assessment previously paid to the San Bernardino Valley Water Conservation District. Surface Water stockholder assessments paid to the North Fork Water Company (NFWC) on Company shares owned. Annual assessments are set to cover the costs of operating NFWC and includes delivery of Santa Ana River surface water, also based on the number of shares owned. The District owns 5,906 shares and projects that the assessment will be $20 per share, and has budgeted $122,000 accordingly. Purchased Water paid to the San Bernardino Valley Municipal Water District to buy State Water Project water for $126 per acre foot (AF). This water suply can become limited during times of drought. The District has budgeted $500,000 to purchase up to 3,968 acre-feet of imported water in FY Total water costs associated with these three sources are projected to be $1,067,000 for FY Water Costs $1.2M $1,309,459 $1M $1,067,000 $801,000 $750K $500K $600,855 $471,251 $250K FY FY FY FY Projected The District has three sources of water - groundwater, Santa Ana River surface water, and imported water available from the State Water Project. FY Budgeted Purchased Water Groundwater Surface Water 43 FISCAL YEAR BUDGET

46 CONTRACTED WASTEWATER TREATMENT As outlined in the discussion about wastewater treatment charges, the District has budgeted $8,233,000 for the cost for contracted wastewater treatment in FY All charges billed and collected for these services are paid to the City of San Bernardino Municipal Water Department at the end of each month. POWER COSTS Power costs include the electrical power to extract groundwater using wells, to treat imported water, surface water, and groundwater when necessary, and to distribute water throughout nine pressure zones within the District using booster pumps. Although rates for electrical power have been increasing, the District has been able to control, and sometimes reduce, annual power costs for two reasons. First, the California drought and customer conservation reduced water consumption and therefore the power required to produce it. Second, energy conservation measures implemented in 2014, including replacement of inefficient pumps and refinement of production schedules to coincide with off-peak power pricing, has allowed the District to become much more efficient in energy consumption. Total District power costs increased to $1.73 million in FY due to higher than expected water consumption and the associated need for power to distribute water to customers. However, in May 2018 the District completed a hydro-electric generation facility at its surface water treatment plant, which will help offset increases in energy pricing or demand. Accordingly, projected energy costs for FY are $1.7 million. Power Costs $2,123,485 $2M $1.5M $1,648,965 $1,535,223 $1,755,000 $1,700,000 $1M $500K FY FY FY FY Projected The District implemented four significant energy conservation measures in FY Budgeted Wells Boosting Treatment 44 FISCAL YEAR BUDGET

47 MATERIALS AND SUPPLIES Costs of materials include chemicals for treatment, small tools and parts for distribution system repairs, small office tools and general office supplies, and fuel for District vehicles. Materials are budgeted to increase 11% in FY primarily due to significant outreach materials that will be needed to keep customers / community members informed of the progress on the Sterling Natural Resource Center wastewater facility. Community engagement is a condition of the state funding received for this significant project. Program Services Description FY Projected FY Budgeted Governing Board General Office Supplies $ 1,000 $ 1,000 Administration General Office Supplies 5,300 8,000 HR Desk, Office Supplies, Software 2,245 17,000 Public Affairs Promo Items, Events & Emergency Supplies 27, ,000 Conservation Educational Materials, Books, Workshop Items 132,203 28,000 Finance Auditing, Banking, Software 5,150 11,000 Information Technology Computer Supplies 45,075 35,000 Customer Service Lobby Materials, Office Supplies 8,400 8,000 Meter Services Hydration Supplies, Repellents 1,664 5,000 Engineering Small Tools, Plotter Supplies 5,257 25,000 Production Hand Tools, Lubricants, Electrical Supplies, Chemicals 194, ,000 Water Treatment Tools, Lab Supplies, Chemicals 151, ,000 Water Quality Test & Repair Kits, Chemicals 19,180 18,000 Water Maintenance Inventory Items, Fill Materials 300, ,000 Wastewater Maintenance Tools, Degreaser, Insecticides, Manhole Covers 31,738 36,000 Facilities Maintenance Paint Supplies, Hardware, Tools, Signs 44,357 46,000 Fleet Maintenance Large Equipment Repairs 171, ,500 TOTAL $ 1,147,231 $ 1,278, FISCAL YEAR BUDGET

48 CONTRACT SERVICES Contract services are proposed by Program Managers to fund ongoing needs for outside services, and periodic needs for technical expertise to help meet program goals and objectives established for the current year. Contract Services, by Program, includes the following: Program Services Description FY Projected FY Budgeted Governing Board CEO Evaluation and Election Expenses $ 11,000 $ 111,000 Administration Legislative, Legal Consultants 506, ,000 HR Safety Consultants, OPEB 239, ,000 Public Affairs Printing, Emergency Training 206, ,000 Conservation Community Events, Demo Garden, Direct Installation of Water Efficient Irrigation Timers 387, ,500 Finance Auditing, Banking, Software 166, ,000 Information Technology GIS, Data Management, Cybersecurity 462, ,000 Customer Service Billing, Collections, Pmt Processing, Software Support 998,000 1,024,000 Meter Services Uniforms 8,000 10,000 Engineering Surveying, Engineering, Software, Permits 286, ,000 Production SCADA Updates, Inspections, Valve Maintenance 367, ,000 Water Treatment Filtration Media Replacement, Software Maintenance 186, ,000 Water Quality Lab Fees, Software Maintenance 120, ,000 Water Maintenance Leak Detection, Asphalt Repair 449, ,000 Wastewater Maintenance Facilities Maintenance Manhole Insect Treatment, Collection Pipeline Spot Repairs Security, Janitorial, Landscaping, Equipment Repairs, 231, , , ,000 Fleet Maintenance Large Equipment Repairs, Maintenance Service 114, ,000 TOTAL $ 5,333,000 $ 6,240,500 Significant variances between prior year contact services costs and projections for FY include: Public Affairs costs have increased to support the production of informational materials to support the Sterling Natural Resource Center. Engineering is projecting a $200,000 increase in contract services as consultants are used to supplement staff s capabilities to manage significant new projects, including those driven by new development. Production cost increases are due to increased utilization of the District s new SCADA consultant for troubleshooting and finding weaknesses in the system security. Facilities Maintenance cost increases are related to a full time guard who will secure the water treatment plant to maintain site security. Fleet Maintenance will contract with a mobile fleet maintenance service to perform routine maintenance rather than replacing a Fleet Maintenance Technician who is retiring. 46 FISCAL YEAR BUDGET

49 OTHER OPERATING EXPENSES Other Operating Expenses budgeted for FY total $618,000 and include professional development, licensing, meeting expenses, and general insurance. The District emphasizes professional growth and leadership and encourages employees to utilize resources made available by the District to continue learning through formal education, certifications, or collaboration with other agencies responsible for delivering similar services to its ratepayers. Following is a chart showing the allocation of Other Operating Expenses for FY : $220,000 Insurance $113,500 Memberships & Dues $184,000 Professional Development $21,000 Employee Recognition $56,500 Meetings $23,000 Education Assistance 47 FISCAL YEAR BUDGET

50 Outstanding Debt East Valley Water District's debt service payments in FY will be $4,358,000 on total outstanding debt of $49,907,496 as of June 30, Outstanding debt issues include the following: 2010 Refunding Revenue Bonds: Issued to refund all outstanding long-term debt and to provide $16 million for future capital improvements. Bonds outstanding total $24,715,000, bear interest of 3.9% to 5%, and are payable out of water and wastewater net revenue Revenue Bonds: Issued to finance the construction of a new administration and operations headquarters. Bonds outstanding total $12,085,000 bear interest of 4.25% to 5%, and are payable out of water and wastewater net revenue. Current payments are interest only, with principal amortization scheduled to begin in FY DWR Loan Treatment Plant: Borrowed to finance upgrades to treatment technology at the District s Plant 134 to meet changes in water quality requirements. The total loan outstanding is $6,301,770 at 0% interest, and is payable out of water net revenue. DWR Loan Assessment Districts: Borrowed to fund consolidation of two failing mutual water companies into District service area. Loans outstanding total $423,196 and bear interest at $10M Total Debt Service 0%. Debt service payments are payable from assessments to property owners within the assessment districts. U.S. Bank Loan: Borrowed to finance construction and implementation of several energy conservation measures. The total loan outstanding is $2,552,306 at an interest rate of 2.3%, and is payable out of guaranteed energy cost savings. SBVMWD Loan: Borrowed from San Bernardino Valley Municipal Water District, the region s State Water Project contractor, to finance construction of an imported water turnout and hydro-electric generation facility at the District s Plant 134. The total loan outstanding is $3,870,000 bearing interest at the LAIF apportionment rate, currently 1.51%. Debt service is payable over 10 years out of water net revenue and energy cost savings. State Water Resources Control Board(SWRCB) SNRC: On June 14, 2018, the District signed a funding agreement with the SWRCB for the construction of a water recycling facility known as the Sterling Natural Resource Center. The funding package includes $6.75 million in grants, and $ million from a 30-year loan at 1.8% interest. The construction period for the project is anticipated to be 24 to 30 months, and the loan balance will grow as reimbursement requests for construction costs are submitted by the District. Annual debt service payments of approximately $5.5 million are payable from wastewater and water net revenue and are expected to begin in FY following construction completion. Water Fund Wastewater Fund Recycled Water $9M $8M $7M $6M $5M $4M $3M $2M $1M FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FY FISCAL YEAR BUDGET

51 Schedule of FY Debt Service Payments (By Issue) WATER FUND WASTEWATER FUND Debt Issue Principal Interest Principal Interest Total 2010 Refunding Revenue Bonds $ 1,400,000 $ 1,065,000 $ 100,000 $ 12,000 $ 2,577, Revenue Bonds - 385, , ,000 DWR Loan-Treatment Plant 244, ,000 DWR Loans - Assessment Districts 19, ,000 US Bank Loan 397,000 58, ,000 SBVMWD Loan 430,000 48, ,000 TOTAL $ 2,490,000 $ 1,556,000 $ 100,000 $ 212,000 $ 4,358,000 Debt service for FY on all outstanding debt is $4,358,000 - this amount represents 11.6% of the District s total budget. FY is the third year of a 5-year period during which annual debt service payments will exceed $4.2 million. This level of debt service does not affect utility services provided to District ratepayers, but has a direct effect on the number of Capital Projects that can be funded by operating revenues. For example, the District has identified a need for 20 million gallons of additional water storage capacity, but must carefully plan for the construction of new reservoirs over a period of five to ten years in order to ensure that essential services and debt service coverage requirements on existing debt can be met. There are currently two reservoirs totaling 5 million gallons of storage capacity on the Districts Capital Improvement Schedule. The schedule below presents total debt service on existing debt through maturity. Schedule of Total Debt Service WATER FUND WASTEWATER FUND Fiscal Year Principal Interest Principal Interest Total $ 2,490,000 $ 1,556,000 $ 100,000 $ 212,000 $ 4,358, ,564,000 1,473, , ,000 4,350, ,639,000 1,393, , ,000 4,345, ,138,000 1,329, , ,000 3,770, ,193,000 1,272, , ,000 3,767, ,210,000 5,530, , ,000 15,247, ,164,000 4,483, , ,000 12,147, ,370,000 3,262,000 1,000, ,000 12,140, ,087,000 1,537,000 1,265, ,000 12,127, ,527,000 51, ,000 7,000 2,880,000 TOTAL $ 45,382,000 $ 21,886,000 $ 4,525,000 $ 3,338,000 $ 75,131,000 The District s Debt Management Policy stipulates that debt may only be issued to finance capital projects. 49 FISCAL YEAR BUDGET

52 BOND RATINGS Credit risk is the risk that District creditors will suffer financial loss if the District fails to fulfill its obligation to make timely payments to holders of District debt. This risk is measured by the assignment of a rating to the District s bonds by a nationally recognized credit rating organization. Strong credit ratings provide benefits to District ratepayers in the form of reduced debt service costs. Prudent financial management policies have resulted in a bond rating of AA- from both Standard & Poor s, and Fitch ratings. Fitch affirmed its rating in April of The AA- rating is considered a high quality, investment grade rating. DEBT POLICY AND COVERAGE The District s Debt Management Policy states that debt may only be issued to finance capital projects that have been incorporated into the District s Capital Improvement Program, and that debt will only be used to finance projects if it is the most cost effective means of doing so, and the District s credit rating will not be negatively impacted. There is no policy, or statutory limitation on the amount of debt that may be issued by the District, however, bond covenants for the District s 2010 and 2013 Revenue Bonds require an additional bonds test prior to issuing additional obligations payable from Net Operating Revenue. The Revenue Bond documents, as well as loan agreements with the Department of Water Resources and US Bank, also require that the District maintain a debt coverage ratio equal to 1.2 or 120 percent of annual debt service. The FY proposed operating budget provides the net revenue to debt ratios shown in the table below. Net Revenue in excess of annual debt service (excess coverage) provides funding for the District s CIP and contributions to Replacement Reserves. Debt Coverage Ratio Water Fund Wastewater Fund Total REVENUE Sales and Services $ 24,060,000 $ 12,863,000 $ 36,923,000 Other Charges 473, , ,000 Interest & Miscellaneous Revenue 200,000 88, ,000 TOTAL REVENUES 24,733,000 13,115,000 37,848,000 OPERATING EXPENSES Programs 16,507,000 12,168,000 28,675,000 TOTAL OPERATING EXPENSES 16,507,000 12,168,000 28,675,000 NET REVENUE 8,226, ,000 9,173,000 Annual Debt Service $ 4,046,000 $ 312,000 $ 4,358,000 Debt Coverage Ratio FISCAL YEAR BUDGET

53 Unrestricted Net Position EVWD operates two enterprise funds for water and wastewater activities, the District does not have governmental or non-major enterprise funds as part of its operational fund structure. As a result, the District reports Net Position, the excess of assets over liabilities, in three distinct classifications Invested in Capital Assets, Restricted, and Unrestricted. Unrestricted is the residual after the balances in the other two classifications have been determined, and indicates the level of reserves available for appropriation. The graph below, illustrates the changes in Unrestricted Net Position for the past five years and forecasted balances for FY Unrestricted Net Position $12M $11,314,893 $11,267,893 $10M $9,858,657 $8M $8,178,281 $7,539,722 $6M $5,789,742 $6,786,369 $4,861,232 $4M $2M $1,761,323 $2,029,652 $1,408,652 $1,438,652 FY FY FY FY FY Projected Water FY Budgeted Wastewater WATER FUND UNRESTRICTED Unrestricted Net Position increased in the years leading up to, and including, FY as a result of rate adjustments adopted in June In FY the District implemented Governmental Accounting Standards Board (GASB) statement number 68, whereby unfunded pension liabilities were recorded on the District s Statement of Net Assets and had a $6.2 million negative impact on Unrestricted Net Position. Also in FY , the District adopted a new tiered rate structure (explained in the Revenue section) to provide revenue stability during California s severe drought in which strict conservation mandates were imposed by the state. Revenue stability was achieved by the new rate structure, as is evidenced by reserve levels for FY through FY The following table provides beginning balances, increases and decreases, and ending balances of unrestricted water fund Net Position for the past five years, and projections for FY FISCAL YEAR BUDGET

54 Unrestricted Net Position Water Fund FY Actual FY Actual FY Actual FY Actual FY Projected FY Budgeted Beginning Fund Balance $ 7,019,510 $ 8,178,281 $ 4,861,232 $ 5,789,742 $ 6,786,369 $ 11,314,893 Revenue 21,020,934 20,072,542 22,358,720 24,954,835 25,785,000 24,712,000 Operating Expenses (17,670,092) (17,784,263) (20,758,674) (20,450,066) (21,826,650) (22,307,000) Non Operating Expenses (1,887,336) (1,805,275) (1,636,748) (1,573,967) (1,664,000) (1,656,000) Add Back: Depreciation 4,531,972 5,003,670 5,710,092 5,732,847 5,750,000 5,800,000 Contribution to Asset Acquisition (3,395,215) (1,051,372) (2,873,963) (3,097,378) (1,172,826) (4,106,000) Debt Principal Payments (1,441,492) (1,546,491) (1,870,917) (1,926,956) (2,343,000) (2,490,000) Interfund Sale of Land (2,642,688) Prior Period Adjustment - Pensions (6,205,860) ENDING FUND BALANCE $ 8,178,281 $ 4,861,232 $ 5,789,742 $ 6,786,369 $ 11,314,893 $ 11,267,893 WASTEWATER FUND UNRESTRICTED The rate adjustments adopted in June 2012 (mentioned above) also increased revenue for the wastewater fund, but at the same time the District began drawing on reserves to conduct feasibility and environmental studies for a proposed water recycling plant. Reserve spending for preliminary design, land acquisition, and on litigation to defend the project s environmental impact report continued into FY In November 2017, a settlement agreement ended the litigation clearing the way for the District to finalize low-interest loan funding with the State of California, with which the District can reimburse most of the reserve borrowing that has occurred since FY Wastewater fund equity was also negatively impacted in FY by GASB 68 for the amount of $1.75 million. The following table provides beginning balances, increases and decreases, and ending balances of unrestricted wastewater fund Net Position for the past five years, and projections for FY Unrestricted Net Position is the residual of the District s net position after restricted balances, and net position invested in capital assets have been determined. 52 FISCAL YEAR BUDGET

55 Unrestricted Net Position Wastewater Fund FY Actual FY Actual FY Actual FY Actual FY Projected FY Budgeted Beginning Fund Balance $ 11,310,878 $ 9,858,657 $ 7,539,722 $ 1,761,323 $ 2,029,652 $ 1,408,652 Revenue 11,974,164 11,572,011 11,643,042 12,432,000 12,577,000 13,115,000 Operating Expenses (11,521,084) (11,362,076) (11,244,048) (12,395,048) (12,251,000) (12,949,000) Non Operating Expenses (231,053) (210,917) (206,692) (202,000) (218,000) (212,000) Add Back: Depreciation 797, , , , , ,000 Contribution to Asset Acquisition (2,391,832) (1,255,865) (6,661,668) (2,895,311) (1,415,000) (605,000) Debt Principal Payments (80,000) (85,000) (90,000) (95,000) (95,000) (100,000) Interfund Sale of Land 2,642,688 Prior Period Adjustment - Pensions (1,750,371) ENDING FUND BALANCE $ 9,858,657 $ 7,539,722 $ 1,761,323 $ 2,029,652 $ 1,408,652 $ 1,438,652 A Cost of Service Analysis (COSA) for both water and wastewater utility rates will be conducted in FY to identify rate adjustments needed, if any, to maintain essential utility services, and maintain adequate unrestricted Net Position (reserve) levels. Long Range Financial Plan The long range financial plan provides a forward looking view of the District s operating funds, allowing District management and others to evaluate the long-term sustainability of the operating budget. It also provides a starting point for future decision making regarding the District s spending and projected revenues. As a water and wastewater utility, the Districts long term planning efforts have always included consideration of the age, condition, and efficiency of infrastructure used to deliver services to District customers, along with compliance with water quality regulations. But in recent years, the drought in California has raised the preservation and sustainability of water supplies, and water quality, as prominent issues in planning for future operations. Based on these identified priorities, the District has developed goals that will have a significant impact on the District s operating budget over the next few years, including: Cost recovery through user rates versus development fees Construction of a water recycling plant (Sterling Natural Resource Center) Find alternative Water Supply and Promote Conservation Meet all Water Quality Standards Replacement of aging pipelines and increased water storage capacity 53 FISCAL YEAR BUDGET

56 The achievement of these goals is subject to certain assumptions, but will remain a priority as they support the District Vision and District Goals and Objectives. Long-Term Priorities Goal Assumption Link to District Goals & Objectives User Rates Support Reasonable Costs Related to Existing Customers; Development Fees Pay for New Infrastructure Construct Sterling Natural Resource Center for Recycled Water Supply Water Supply Replace Aging Pipelines Water Usage Per capita will not increase due to Conservation efforts No development is assumed in the District's service area A funding agreement, including grants and a low interest loan will be secured from the State Revolving Fund Recycled water produced by the SNRC will be sold to the basin watermaster for groundwater recharge State Project Water will be available to purchase for basin recharge New rate structure will provide revenue stability and adequate funding for pipeline replacement program Practice Transparent and Accountable Fiscal Management Pursue Alternative Funding Sources Manage and Identify Methods to Conserve Natural Resources Actively Seek Alternative Supply Resources Pursue Alternative Funding Sources Actively Seek Alternative Supply Resources Strengthen Regional, State and National Partnerships Develop Projects and Programs to Ensure Safe and Reliable Services Dedicate Effort Toward System Maintenance and Modernization Rates and Charges As discussed in the previous section, water and wastewater rate revenue is expected to increase over the next five years due to modest building development and rate adjustments. Water rates were adjusted in March 2015 with a three-year implementation ending in FY , therefore, both water and wastewater rates will be reviewed by an independent financial consultant in FY Any rate adjustments proposed by the consultant will be considered in accordance with requirements under California Proposition 218. Other revenue related assumptions built into future projections include: Water Sales are projected to grow $920,000 or 4% over the next five years due to the estimated addition of 50 new utility accounts annually, combined with projected 1% rate increases. Sales per capita is expected to remain flat as water budget based tiered rates implemented by the District to incentivize consumers to use water efficiently, and the State of California continues to propose regulation that will make water conservation "the new normal." Meter Charge revenue is expected to grow by $120,000 between FY and FY due to the increase in customer accounts mentioned above. Local Resource Program (LRP) reimbursements will be added as a funding source for the District after completion of the SNRC in FY The LRP, sponsored by the San Bernardino Valley Municipal 54 FISCAL YEAR BUDGET

57 Water District, will reimburse reclaimed water producers approximately $210 per acre foot of reclaimed water used for recharge of the Bunker Hill Groundwater Basin. The District anticipates that the SNRC will produce 6,000 acre feet of reclaimed water annually, for potential funding of $1.26 million annually. Operating Cost Forecast Operating costs for the District included salaries and benefits, maintenance and operation of the water distribution and wastewater collection systems, contract services and materials and supplies. Salaries are adjusted in accordance with a memorandum of understanding (MOU) with employees, which became effective in July 2017, which included the following agreed-upon changes: 3% Cost of Living Increases for each of the next three years 2.5% annual step increases, if qualified, until employees reach the top of their salary range Performance based incentive payments of up to 5% of base salary. An average of 4% was used for purposes of forecasting Retirement plan contributions, which include a component based on a percentage of salary, and a fixed component designed to pay down unfunded pension obligations, are expected to increase 10%-15% annually over the next five years as the California Public Employees Retirement System (CalPERS) implements strategies to improve the funding status of the plan overall. Staffing levels are expected to remain constant through FY However, as construction of the SNRC progresses, an estimated 6 full time employees will be added to operate the facility. Accordingly, recruiting and hiring for these positions will need to begin approximately 18 months prior to completion so staff can be trained on treatment processes. In general, Materials and Contract Services are expected to increase 2% with inflation. However, the scheduled completion of the Sterling Natural Resource Center in June 2021 will create a shift in costs from contracted wastewater treatment, to other costs directly related to operating a water recycling plant, such as solids handling, chemicals, contract services, and materials and supplies. Debt Service Forecast Debt service costs include principal and interest on Revenue Bonds and Loans issued to finance system improvements. Future debt service cost projections include an additional loan from the State Revolving Fund issued to finance the construction of the Sterling Natural Resource Center. The final loan amount will not be determined until the project is complete, however, the additional debt related to this project is expected to increase annual debt service from $3.8 million in FY , to $9.4 million in FY Revenue Funded Capital Expenditures Forecast Revenue funded capital project spending is projected to average $3.9 million over the next five years. Projects included in the forecast are discussed in the five-year Capital Improvement Program section of this budget. Construction of the Sterling Natural Resource Center water recycling facility will create a new enterprise activity, and accomplish multiple long range District goals. 55 FISCAL YEAR BUDGET

58 Five Year Forecast FY 2019 through FY 2023 The following financial forecast is presented to provide a general understanding of how long-term goals will affect operating revenue and expenditures over the next five years. Net Position is presented as a single amount, however, for financial reporting purposes, it is allocated to three categories: Invested in Capital Assets Restricted Unrestricted Projections for Unrestricted Net Position are included in a previous section, and it is the Unrestricted Net Position that is available for appropriation in order to balance the annual budget. REVENUE Water Sales / Wastewater Collection FORECAST FY FY FY FY FY $ 19,730,000 $ 19,956,787 $ 20,085,000 $ 20,305,000 $20,525,000 Wastewater Treatment 8,233,000 8,383,000 8,466,830 8,551,498 8,637,013 Reclaimed Water Sales ,260,000 1,260,000 Meter Fees 8,960,000 8,990,000 9,020,000 9,050,000 9,080,000 Other Operating Charges 637, , , , ,000 Investment Income 220, , , , ,000 Other Income 68,000 61,000 61,000 61,000 61,000 TOTAL REVENUE 37,848,000 38,254,787 38,496,830 40,091,498 40,427,013 EXPENDITURES Labor & Benefits 9,829,000 9,845,000 10,243,000 11,851,000 12,312,000 Water Costs 1,067, , , , ,000 Contracted Wastewater Treatment 8,233,000 8,383,000 8,466, Power Costs 1,700,000 1,700,000 1,700,000 2,300,000 2,318,000 Materials and Supplies 1,277,500 1,219,696 1,230,170 1,715,671 1,740,449 Contract Services 5,950,500 5,675,087 5,726,938 7,079,257 7,164,120 Other Operating Expenses 618, , ,083 1,035,164 1,049,578 Debt Service 4,358,000 4,350,000 4,345,000 3,770,000 9,293,000 Capital Outlay 1,106, , , , ,000 Capital Improvement Program 3,605,000 3,730,000 3,509,000 3,308,000 4,425,000 TOTAL EXPENDITURES 37,744,000 36,700,962 37,420,021 32,009,092 39,302,147 CHANGE IN NET POSITION 104,000 1,553,825 1,076,810 8,082,406 1,124,867 BEGINNING NET POSITION 113,029, ,133, ,687, ,764, ,846,918 ENDING NET POSITION $ 113,133,877 $ 114,687,702 $ 115,764,512 $ 123,846,918 $ 124,971, FISCAL YEAR BUDGET

59 Consolidated Financial Schedules BLUE CHALK STICKS Senecio Mandraliscae A spreading succulent native of South Africa, the Senecio Mandraliscae is a winter grower and summer-dormant. Its upward curving foliage grows 3-4 inches tall. CONSOLIDATED FINANCIAL SCHEDULES

60

61 CONSOLIDATED FINANCIAL SCHEDULES Overview of revenues and other financing sources and expenditures An in-depth District-wide overview of the FY budget. Consolidated Financial Summary REVENUES FY Actuals FY Budget Projected Budgeted Amount Changed % Change 4100 Water Sales $ 14,556,339 $ 14,500,000 $ 16,342,378 $ 15,100,000 $ 600,000 4% 4200 Meter Charges 8,944,652 8,845,000 8,845,000 8,960, ,000 1% 4301 Penalties 473, , , ,000 58,500 12% 4400 WW Collection Charges 4500 WW Treatment Charges 4605 Other Operating Charges 4,543,978 4,545,000 4,650,970 4,630,000 85,000 2% 7,165,655 7,900,000 8,578,636 8,233, ,000 4% 701, , , ,000 (80,500) -40% 4701 Interest Income 103,502 97,000 97, , , % 4703 Energy Incentives/ Rebates 4704 Miscellaneous Revenue ,973 50,000 50,000 40,000 (10,000) -20% TOTAL REVENUES $ 36,532,042 $ 36,624,000 $39,250,984 $ 37,848,000 $ 1,224,000 3% 59 FISCAL YEAR BUDGET

62 EXPENSES OPERATING BY PROGRAM FY Actuals FY Budget Projected Budgeted Amount Changed % Change 1000 Governing Board $ 136,613 $ 229,000 $ 229,000 $ 337,000 $ 108,000 47% 2000 General Administration 1,106,502 1,201,000 1,367,000 1,258,000 57,000 5% 2100 HR/Risk Management 784, , , , ,000 17% 2200 Public Affairs 632, , ,000 1,142, ,000 38% 2300 Conservation 655, , , ,000 18,000 3% 3000 Finance 1,158,039 1,182,000 1,256,000 1,131,000 (51,000) -4% 3200 Information Technology 750, , ,000 1,009,000 46,000 5% 3300 Customer Service 1,547,563 1,749,000 1,811,000 1,786,000 37,000 2% 3400 Meter Services 334, , , ,000 (114,000) -29% 4000 Engineering 1,321,765 1,527,000 1,586,000 1,521,000 (6,000) 0% 5000 Water Production Admin 432, , , ,000 25,000 5% Source of Supply 2,926,045 2,654,000 2,654,000 2,791, ,000 5% Pumps & Boosters 596, , , ,000 1,000 0% Trans & Distribution 243, , , , ,000 64% 5100 Water Treatment 644, ,000 1,061, ,000 (42,000) -5% 5200 Water Quality 367, , , ,000 24,000 6% 6000 Maintenance Admin 214, , , , ,000 57% 6100 Water Maintenance 1,857,848 2,021,000 2,044,000 2,204, ,000 9% 6200 Wastewater Maintenance 7,592,044 8,593,000 8,625,000 8,996, ,000 5% 7000 Facilities Maintenance 781, , , , ,000 24% 7100 Fleet Maintenance 611, , , ,000 (57,000) -11% SUBTOTAL OPERATING EXPENSES EXPENSES OTHER 24,696,740 26,994,000 27,914,000 28,675,000 1,681,000 6% Debt Service 3,560,567 4,315,000 4,315,000 4,358,000 43,000 1% Capital Outlay 637, , ,000 1,106, ,000 81% Capital Improvement 3,089,678 4,287,000 4,345,000 3,605,000 (682,000) -16% Transfer to Reserves 4,290, ,000-74,000 (343,000) -82% Transfer from Reserves - - (61,000) 30,000 30, % SUBTOTAL OTHER EXPENSES $ 11,577,918 $ 9,630,000 $ 9,210,000 $ 9,173,000 $ (457,000) -5% NET $ - $ - $ - $ - $ FISCAL YEAR BUDGET

63 ITEMIZED EXPENSE SUMMARY PERSONNEL EXPENSES FY Actuals FY Budget Projected Budgeted Amount Changed % Change 5101 Regular Labor $ 6,191,739 $ 6,182,600 $ 6,213,000 $ 6,323,000 $ 140,400 2% 5102 Temporary Labor 54,335 15,000 15,000 - (15,000) -100% 5103 Overtime 328, , , ,000 60,000 21% 5104 Standby 36,948 40,000 40,000 35,000 (5,000) -13% 5200 Benefits 2,305,631 2,873,000 3,382,000 2,828,000 (45,000) -2% PERSONNEL TOTAL 8,917,376 9,402,600 9,957,000 9,538, ,400 1% WATER SUPPLY 6101 Purchased Water $1,012,841 $500,000 $500,000 $500,000-0% 6102 Replenishment 160, , , , , % 6103 Water Assessment 135, , , ,000 (16,000) -12% WATER SUPPLY TOTAL 1,309, , ,000 1,067, ,000 33% OPERATING EXPENSES 6201 Materials & Supplies 575, , , , ,000 18% 6202 Tools 53,915 38,000 38,000 40,000 2,000 5% 6203 Office Supplies 43,784 46,000 46,000 41,000 (5,000) -11% 6204 Chemicals 261, , , ,000 5,000 1% 6205 Conservation Rebates 287, , , ,000-0% 6301 Contract Services 1,807,017 2,499,000 2,750,000 2,876, ,000 15% 6302 Banking Services 264, , , ,000 3,000 1% 6303 Printing & Publishing 115, , , , , % 6304 Legal Services 193, , , ,000 (25,000) -9% 6305 Treatment Services 7,165,655 7,900,000 7,900,000 8,233, ,000 4% 6306 Rents & Leases 15, ,000 15, Uniforms 61,917 74,000 77,000 72,000 (2,000) -3% 6308 Billing Services 45,540 52,000 52,000 52,000-0% 6309 Shut Off Notice Services 360, , , ,000-0% 6310 Street Services 188, , , ,000-0% 6311 Landscape Services 156, , , ,000-0% 6312 Janitorial Services $ 74,816 $ 132,000 $ 142,000 $ 140,000 $ 8,000 6% 61 FISCAL YEAR BUDGET

64 FY Actuals FY Budget Projected Budgeted Amount Changed % Change 6314 Litigation Services $ - $ - $ - $ 50,000 $ 50, Utilities 16,260 26,000 26,000 24,000 (2,000) -8% 6402 Telephone 133, , , ,000 (5,000) -4% 6403 Electricity 1,622,686 1,820,000 1,820,000 1,820,000-0% 6404 Fuel 106, , , ,000-0% 6405 Permits 187, , , ,000 73,000 33% 6406 Postage 127, , , ,000 (5,000) -2% 6501 Memberships 109, , , ,000 3,000 3% 6502 Professional Development 6503 Education Assistance 105, , , ,000 3,000 2% 1,290 20,000 21,000 23,000 3,000 15% 6504 Meetings 19,133 43,400 44,000 56,000 12,600 29% 6505 Employee Recognition 14,020 19,000 19,000 20,000 1,000 5% 6701 General Insurance 188, , , ,000-0% 6702 Insurance Claims 7,006 10,000 10,000 10,000-0% 6703 Cash Over/Short 557 1, (1,000) -100% 6704 Bad Debt - - 1,000 1,000 1, % 6705 OPEB Retirees 159, , , , ,000 93% OPERATING EXPENSES TOTAL 14,469,905 16,790,400 17,156,000 18,070,000 1,279,600 8% TOTAL EXPENSES $ 24,696,740 $ 26,994,000 $ 27,914,000 $ 28,675,000 $ 1,681,000 6% Operating expenses are identified and accounted for at the Program level. 62 FISCAL YEAR BUDGET

65 WATER FUND DOUBLE YELLOW DAYLILY Hemerocallis Betty Woods Slightly-fragrant flowers, Double Yellow Daylilies bloom in spring through summer. A drought tolerant native from Asian that can grow 2-4 feet tall. Water Fund

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67 Water Fund East Valley Water District understands the importance of preserving California s water supplies, especially in times of drought, and has taken many steps to encourage water use efficiency. The water budget based rates promote water efficiency and is based on the cost of service; is equitable and fair; and promotes sustainable behavior change. Water budget based rates structure has been recognized by the SWRCB for producing superior water savings and is an approved alternative approach for compliance with conservation efforts. RATES EVWD bills all customers on a monthly basis for water usage. In March 2015, the Board of Directors unanimously approved restructuring the water rates from a uniform structure to water budget based rates to encourage efficient water use and secure the District s long-term financial stability. The Board s decision also included the approval of a three-year schedule of changes to the District s water rates. Water budget based rates are designed to treat customers fairly by meeting each individual customer s unique needs. Its intent is to determine the quantity of water that would be considered an efficient level of water use. EVWD considers multiple factors in calculating each customer s monthly water budget: Number of Occupants Number of Dwelling Units Medical Needs Horses/Live Stock Business Needs Agricultural Needs Irrigable Landscape Weather The rates have been designed with a three-tier structure, each developed based on the District s cost of service to provide three different sources and uses of water. Based on the new rate structure, approximately 60 percent of the District s revenue requirements may be captured from the amount of water used. Since the adoption of water budget based rates, the District has experienced success in reducing water consumption and stabilizing revenues to ensure our fixed operational costs are covered. During FY the Board approved a modification to the final phase in the three-year rate increase. For FY no increase in water rates has been adopted. Monthly Meter Charges METER SIZE FY FY FY FY /8 in. $ $ $ $ /4 in in in in in in in in. $ 1, $ 1, $ 1, $ 1, FISCAL YEAR BUDGET

68 Commodity Charges COMMODITY RATES FY FY FY FY Tier 1 $1.73 $1.73 $1.73 $1.73 Tier Tier Monthly Fire Line Service Charges METER SIZE FY FY FY FY REVENUES 1 in. $8.78 $8.78 $8.78 $ in in in in in in in Water revenues are generated through the following avenues: Fixed Meter Charges Water Consumption Sales Penalties Late Fees Shut Off Notice Reconnect Fees Initiation of Service Fees Energy Incentives Miscellaneous Reimbursements District property damage In Lieu Programs Interest In order to be as accurate as possible, staff evaluated and considered external factors that would have any impact on revenue projections: Number of accounts by class Total irrigable landscaped area in the District service area Historical water usage State mandates Operational changes 66 FISCAL YEAR BUDGET

69 A careful analysis of the District s water accounts and usage were considered as the foundation for projecting water sales. To determine Tier 1 usage, each residential account was assumed to receive 10 units of Tier 1 water. Next, staff used GIS data to provide the total square footage of irrigable landscape and converted the efficient amount of water necessary to project Tier 2 revenue. Tier 3 water revenue was based on historical ineffecient water usage. Other classification includes temporary water meters used mainly for construction. The table below reflects FY assumptions for revenue projections. The number of accounts does not include fire services. 38% Meter Charges Sources of Revenue 58% Water Sales 4% Other Charges Water Sales (Acre Feet) CLASS NO. OF ACCOUNTS TIER 1 TIER 2 TIER 3 TOTAL TOTAL SALES Residential 19,883 4,903 3, ,026 $ 8,493,000 Multi-Family 474 2, ,487 3,253,000 Commercial 681 1, ,366 1,168,000 Irrigation 322-1, ,800 2,186,000 TOTALS 21,360 8,188 5,368 2,123 15,679 $ 15,100,000 Single family and multi-family residential customers account for 78% of the District s water sales. 67 FISCAL YEAR BUDGET

70 Meter Charge METER SIZE NO. OF SERVICES RATE TOTAL 5/8 in. 4,202 $ $ 1,163,000 3/4 in. 12, ,330,000 1 in. 4, ,090, in ,000 2 in ,000 3 in ,000 4 in ,000 6 in ,000 8 in. 11 1, ,000 Fire Service 1.5 in ,000 Fire Service 4 in ,000 Fire Service 6 in ,000 Fire Service 8 in ,000 Fire Service 10 in ,000 TOTALS 21,612 $ 8,960,000 EXPENSES Expenses are based on the cost to provide water to meet customer demands. The table on the next page projects the amount of water to be produced for FY The amount of water produced is more than the amount of water sold to account for normal system water loss. The continued severity of the drought has prompted the District to put forth significant effort towards the Conservation Program. This Program is committed to assisting customers with conservation efforts through the continuance of the rebate programs and instructor-led seminars and demonstrations. Staff continues to review and enhance processes to ensure optimal performance. However, due to the new rate structure, cost allocations for the Information Technology and Customer Service Departments were shifted to the Water Fund. Previously, those costs were allocated evenly between the Water and Wastewater Fund. It has been determined that budget based rates require a significant amount of time and commitment from staff therefore justifying the shift in expenses. Moreover, due to the uncertainty of revenue income, staff has reprioritized programs to ensure critical programs continue while additional services can be re-evaluated at mid-year. CONCLUSION The District strives to provide safe and reliable water delivery services. The District has put forth significant effort to overcome the challenges of maintaining a fiscally sustainable and operationally dependable organization. The District maintains its commitment to investing in critical infrastructure to ensure the future of its thriving community. Due to the variable factors, mid-year review will be an important time to review projections and program expenditures to make adjustments as necessary. 68 FISCAL YEAR BUDGET

71 Water Production (Acre Feet) SOURCE OF SUPPLY FY Actual FY Actual FY Projected FY Budgeted Ground Water 16,164 12,928 13,315 12,649 Surface Water 2,330 3,913 3,700 3,515 Purchased TOTALS 18,668 17,447 17,815 16,964 Water Fund Expenses by Cost Center < 1% Reserve Contribution 17% Capital Expenditures 13% Source of Supply 3% Pumps & Boosters 4% Treatment 16% Debt Service 11% Transmission & Distribution 7% Customer Service 29% Administration 69 FISCAL YEAR BUDGET

72 FY Water Fund Proposed Budget REVENUES FY Actuals FY Budget Projected Budgeted Amount Changed % Change 4100 Water Sales $ 14,556,339 $ 14,500,000 $ 16,342,378 $ 15,100,000 $ 600,000 4% 4200 Meter Charges 8,944,652 8,845,000 8,845,000 8,960, ,000 1% 4301 Penalties 81, , , , , % 4303 Disconnect Notice Charge 4605 Other Operating Charges 349, , ,500 - (300,500) -100% 539, , ,500 93,000 (38,500) -29% 4701 Interest Income 73,315 75,000 75, ,000 85, % 4703 Energy Incentives/ Rebates Miscellaneous Revenue 42,973 50,000 50,000 40,000 (10,000) -20% TOTAL REVENUES 24,587,776 24,047,000 25,889,378 24,733, ,000 3% OPERATING EXPENSES SOURCE OF SUPPLY/WELLS 5101 Regular Labor 387, , , ,000 (97,000) -27% 5103 Overtime 28,913 30,000 35,000 32,000 2,000 7% 5200 Benefits 89, , , ,000 (41,000) -27% 6101 Purchased Water 1,012, , , ,000-0% 6102 Groundwater Replenishment 160, , , , , % 6103 Water Assessment 135, , , ,000 (16,000) -12% 6201 Materials & Supplies 27,228 63,000 63,000 61,000 (2,000) -3% 6204 Chemicals 92, , , ,000-0% 6301 Contract Services 120, , , ,000 49,000 22% 6311 Landscape Services 70,580 40,000 40,000 40,000-0% 6402 Telephone Electricity 1,023,896 1,000,000 1,000,000 1,000,000-0% 6405 Permits 72, , , ,000-0% 6504 Meetings - 1,000 1,000 1,000-0% SOURCE OF SUPPLY TOTAL 3,223,180 2,916,000 2,979,000 3,093, ,000 6% PUMPS & BOOSTERS 5101 Regular Labor 84,747 92,000 92,000 86,000 (6,000) -7% 5103 Overtime 12,419 5,000 5,000 10,000 5, % 5200 Benefits 19,108 34,000 46,000 36,000 2,000 6% 6201 Materials & Supplies 22,988 25,000 25,000 23,000 (2,000) -8% 6301 Contract Services $ 37,280 $ 80,000 $ 80,000 $ 81,000 $ 1,000 1% 70 FISCAL YEAR BUDGET

73 FY Actuals FY Budget Projected Budgeted Amount Changed % Change 6311 Landscape Services $ - $ - $ 35,000 $ 35,000 $ 35,000 0% 6403 Electricity 433, , , ,000-0% PUMPS & BOOSTERS TOTAL 610, , , ,000 35,000 5% TREATMENT 5101 Regular Labor 222, , , ,000 (23,000) -10% 5103 Overtime 12,216 10,000 18,000 25,000 15, % 5200 Benefits 78,410 92, ,000 95,000 3,000 3% 6201 Materials & Supplies 13,910 15,000 20,000 23,000 8,000 53% 6204 Chemicals 129, , , ,000-0% 6301 Contract Services 97, , , ,000 63,000 34% 6301 Uniforms ,000 2, Landscape Services 20,723 14,000 14,000 14,000-0% 6401 Utilities 1,939 15,000 15,000 10,000 (5,000) -33% 6402 Telephone 12, Electricity 77, , , ,000-0% 6405 Permits TREATMENT TOTAL 665, ,000 1,148, ,000 63,000 7% TRANSMISSION & DISTRIBUTION 5101 Regular Labor 1,008, , ,000 1,172, ,000 22% 5103 Overtime 195, , , ,000 3,000 2% 5200 Benefits 417, , , ,000 79,000 16% 6201 Materials & Supplies 241, , , ,000 20,000 9% 6202 Tools 26,128 16,000 16,000 16,000-0% 6204 Chemicals 39,085 45,000 45,000 50,000 5,000 11% 6301 Contract Services 86, , , ,000 6,000 5% 6307 Uniforms 20,394 20,000 20,000 20,000-0% 6310 Street Services 188, , , ,000-0% 6405 Permits 18, % 6406 Postage 2,224 2,000 2,000 2,000-0% 6503 Education Assistance - 7,000 7,000 5,000 (2,000) Meetings TRANS & DIST TOTAL 2,245,383 2,433,000 2,460,000 2,752, ,000 13% CUSTOMER SERVICE 5101 Regular Labor 538, , , ,200 (47,200) -8% 5102 Temporary Labor 13,850 2,100 2,100 - (2,100) -100% 5103 Overtime 11,333 23,500 23,500 13,500 (10,000) -43% 5200 Benefits $ 246,131 $ 304,400 $ 344,300 $ 259,900 $ (44,500) -15% 71 FISCAL YEAR BUDGET

74 FY Actuals FY Budget Projected Budgeted Amount Changed % Change 6201 Materials & Supplies $ 5,572 $ 8,600 $ 8,600 $ 5,500 $ (3,100) -36% 6202 Tools 164 1,000 1,000 3,000 2, % 6203 Office Supplies 1,439 2,800 2,800 2,100 (700) -25% 6301 Contract Services 62,164 86,200 93,200 95,300 9,100 11% 6302 Banking Services 176, , , ,200 2,100 1% 6303 Printing & Publishing 2,441 3,500 3,500 7,000 3, % 6304 Legal Services 3,997 3,500 3,500 3,500-0% 6306 Rents & Leases 3, Uniforms 5,186 7,200 10,200 5,800 (1,400) -19% 6308 Billing Services 31,878 36,400 36,400 36,400-0% 6309 Shut Off Notice Services 360, , , ,000-0% 6402 Telephone 3,594 6,200 6,200 5,600 (600) -10% 6406 Postage 66, , , ,100 1,400 1% 6502 Professional Development 857 9,800 9,800 9,800-0% 6503 Education Assistance (700) -100% 6504 Meetings 246 1,400 2,000 2, % 6703 Cash Over/Short (700) -100% CUSTOMER SERVICE TOTAL 1,535,344 1,733,200 1,783,000 1,640,900 (92,300) -5% ADMINISTRATION 5101 Regular Labor 2,628,506 2,580,400 2,321,800 2,621,200 40,800 2% 5102 Temporary Labor 25,213 8,400 8,400 - (8,400) -100% 5103 Overtime 38,280 44,000 47,500 47,800 3,800 9% 5104 Standby 30,232 34,000 34,000 33,000 (1,000) -3% 5200 Benefits 1,002,002 1,154,500 1,392,200 1,120,300 (34,200) -3% 6201 Materials & Supplies 166, , , ,200 31,900 18% 6202 Tools 15,699 12,700 12,700 13, % 6203 Office Supplies 31,755 31,500 23,800 28,900 (2,600) -8% 6205 Conservation Rebates 287, , , ,000-0% 6301 Contract Services 910,625 1,146,800 1,144,500 1,305, ,300 14% 6302 Banking Services 8,032 14,000-14,000-0% 6303 Printing & Publishing 96,626 83,600 82, , , % 6304 Legal Services 133, , , ,000 (18,500) -10% 6306 Rents & Leases 7, ,500 10,500 0% 6307 Uniforms 27,805 34,500 32,400 32,100 (2,400) -7% 6311 Landscape Services 45,793 63,700 39,200 39,200 (24,500) -38% 6312 Janitorial Services $ 52,371 $ 92,400 $ 99,400 $ 96,400 $ 4,000 4% 72 FISCAL YEAR BUDGET

75 FY Actuals FY Budget Projected Budgeted Amount Changed % Change 6314 Litigation Services $ - $ - $ - $ 35,000 $ 35,000 0% 6401 Utilities 10,025 7,700 7,700 9,800 2,100 27% 6402 Telephone 84,549 94,800 92,700 95, % 6403 Electricity 61,224 84,000 84,000 84,000-0% 6404 Fuel 74,535 87,500 87, ,500 25,000 29% 6405 Permits 67,424 84,000 84, ,100 51,100 61% 6406 Postage 21,850 44,500 43,800 34,600 (9,900) -22% 6501 Memberships & Dues 77,266 78,500 75,700 80,600 2,100 3% 6502 Professional Development 75, , , ,200 1,900 2% 6503 Education Assistance 390 9,900 10,600 12,500 2,600 26% 6504 Meetings 13,707 29,600 26,800 35,100 5,500 19% 6505 Employee Recognition 9,814 13,300 13,300 14, % 6701 General Insurance 132, , , ,000-0% 6702 Insurance Claims 4,904 7,000 7,000 7,000-0% 6704 Bad Debt ,000 1,000 0% 6705 OPEB Retirees 111, , , ,000 98,000 93% ADMINISTRATION TOTAL 6,252,600 6,786,400 6,779,600 7,268, ,700 7% TOTAL OPERATING EXPENSES OTHER USES 14,532,530 15,523,600 15,932,600 16,507, ,400 6% 7101 Debt Principal 1,630,602 2,343,000 2,343,000 2,496, ,000 7% 7102 Debt Interest 1,634,047 1,664,000 1,659,000 1,550,000 (114,000) -7% 7500 Reserve Contribution 1,413, , ,000 74,000 (441,000) -86% 8101 Capital Outlay 627, , , , , % 8999 Capital Improvement Program 2,061,246 2,780,000 3,305,000 3,175, ,000 14% TOTAL OTHER USES 7,366,977 7,737,100 8,204,000 8,226, ,900 6% SUMMARY Total Revenue 24,587,776 24,047,000 25,889,378 24,733, ,000 3% Total Operating Expenses 14,532,530 15,523,600 15,932,600 16,507, ,400 6% Total Other Expenses 7,366,977 7,737,100 8,204,000 8,226, ,900 6% NET $ 2,688,269 $ 786,300 $ 1,752,778 $ - $ (786,300) 0% 73 FISCAL YEAR BUDGET

76 Water Fund Revenues Vs. Expenses $25M $23,120,539 $24,587,776 $24,547,000 $24,733,000 $20M $20,385,046 $20,385,046 $19,879,330 $16,367,600 $16,507,000 $15M $14,532,530 $10,997,073 $10,997,073 $12,275,670 $12,915,690 $10M $5M FY Actual FY Actual FY Actual FY Actual FY Actual FY Projected FY Budgeted Operating Expenses Revenues The District produces more than 16 million gallons of water daily through 293 miles of water distribution pipeline. 74 FISCAL YEAR BUDGET

77 YARROW Achillea Millefolium In antiquity, the Achillea Millefolium was used for staunching the flow of blood from wounds. A native of Europe, western Asia and North America, it tolerates hot, humid summers and drought. WASTEWATER FUND Wastewater Fund

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79 Wastewater Fund The Wastewater Fund pays for all activities related to the operations and maintenance of the wastewater collection infrastructure as well as the treatment of wastewater. All treatment charges collected from customers are remitted to the City of San Bernardino Municipal Water Department. RATES There are two sets of rates that make up the Wastewater Charge: 1. East Valley Water District Collection System Charge that includes conveyance and maintenance of the wastewater mains and; 2. City of San Bernardino Wastewater Treatment Charge that includes the treatment and disposal of waste. Each set of rates has two components: 1. System Charge based on customer type, Residential or Commercial. 2. Service Charge based on the amount and concentration of the wastewater discharged into the wastewater system. Amount and concentration have a direct impact to the entire wastewater system and treatment facility. The District s service area for wastewater is divided into two regions with City Creek being the identifying landmark. Residences and businesses west of City Creek are charged a different rate than those east of City Creek due to the timing of development and the hydraulics of the system. The adopted rates by customer class are listed in the rate tables below. RESIDENTIAL East Valley Water District bills residential customers a monthly wastewater charge based on the number of dwelling units, up to four units, per property. Properties with four or more units are classified as multi-family. The table below identifies the number of services and the wastewater charges per month. COMMERCIAL The District bills commercial customers on a monthly basis for wastewater. The charge consists of four components two flat rates and two consumption based rates. The two flat rates are EVWD s system charge and the City of San Bernardino s treatment charge. The two consumption based rates are for EVWD s Collection Charge per hundred cubic feet (HCF) and the City of San Bernardino s Treatment Charge per HCF. Additionally, the consumption based rates are calculated using the following formula [($.55/HCF EVWD Collection Charge + City of San Bernardino Treatment Charge) x HCF used]. Shown below is a schedule of commercial wastewater rates for FY Residential Wastewater Rates CUSTOMER CLASS NUMBER OF SERVICES COLLECTION CHARGE TREATMENT CHARGE TOTAL MONTHLY CHARGE Residential 18,575 $ $ $ Commercial Wastewater Rates COMMERCIAL CUSTOMER EVWD Commercial Charge Multi-Family (4+ Units), Mobile HP Non-Residential Customer Classes EVWD SYSTEM COLLECTION CHARGE $ 3.90 CITY OF SAN BERNARDINO TREATMENT CHARGE $ 1.97 $ FISCAL YEAR BUDGET

80 REVENUES Wastewater revenues consist of collection charges, treatment charges, and miscellaneous revenues such as interest income and capacity charges for new services. The District anticipates a small increase in revenue related to the assessment of wastewater collection charges to vacant homes. Those revenues will be remitted to the City of San Bernardino, therefore having no impact on District Operations. 2% Other Charges Sources of Revenue 36% Wastewater Collection Charges 62% Wastewater Treatment Charges Volumetric Rates CUSTOMER TYPE EVWD SYSTEM COLLECTION CHARGE $/HCF CITY OF SAN BERNARDINO TREATMENT CHARGE $/HCF Multi-Family Commercial/Retail/Dry Cleaners Restaurants/Hotels Laundromats/Government/Office Building/Motels Schools/Churches Convalescent Homes Office Buildings/Motels Auto Repair/Service/Car wash FISCAL YEAR BUDGET

81 EXPENSES Operating expenses have remained the same overall in the Wastewater Fund. The District continues to conduct preventive maintenance programs on the wastewater mains such as video monitoring the lines and cleaning the lines on a regular schedule. Additionally, staff has invested more time and efforts into the spot repairs of the mains when sags and cracks are found in the lines when reviewing video tapes of the wastewater system. With the implementation of water budget based rates, costs associated with Customer Service and Information Technology were shifted to the Water Fund because of increased efforts to administer the new tiered rates. Completion of the SNRC will mitigate the impacts of future droughts by providing a long term reliable water supply. This $126 million project is anticipated to begin construction in FY CONCLUSION The Wastewater Fund is balanced, however, a rate study must be conducted to ensure proper rates are charged to fund future capital improvement projects and that the District continues to meet debt service obligations as set forth in the bond covenants. District staff will continue to monitor the revenues and expenses and present the progress to the Governing Board on a quarterly basis. The District continues to move forward with the SNRC, a facility that will create up to 10 million gallons per day of recycled water. Wastewater Fund Expenses by Cost Center 3% Customer Service 6% Transmission & Distribution 21% Administration 2% Debt Service <1% Reserve Contribution 5% Capital 63% Treament 79 FISCAL YEAR BUDGET

82 FY Wastewater Fund Proposed Budget REVENUES FY Actuals FY Budget Projected Budgeted Amount Changed % Change 4301 Late Payment Fee $ 42,476 $ 40,000 $ 40,000 $ 164,000 $ 124, % 4400 Wastewater Collection Charges 4500 Wastewater Treatment Charges 4605 Other Operating Charge 4,286,594 4,545,000 4,650,970 4,630,000 85,000 2% 7,165,655 7,900,000 8,578,636 8,233, ,000 4% 161,970 70,000 70,000 28,000 (42,000) -60% 4701 Interest Income 30,187 22,000 22,000 60,000 38, % TOTAL REVENUES 11,686,882 12,577,000 13,361,606 13,115, ,000 4% OPERATING EXPENSES TREATMENT 6305 Treatment Services 7,165,655 7,900,000 7,900,000 8,233, ,000 4% TREATMENT TOTAL 7,165,655 7,900,000 7,900,000 8,233, ,000 4% TRANSMISSION & DISTRIBUTION 5101 Regular Labor 226, , , ,000 10,000 4% 5103 Overtime 13,576 3,000 35,000 45,000 42, % 5200 Benefits 36, , , ,000 2,000 1% 6201 Materials & Supplies 28,847 30,000 30,000 31,000 1,000 3% 6202 Tools 6,362 5,000 5,000 5,000-0% 6301 Contract Services 113, , , ,000 15,000 7% 6307 Uniforms 1,346 3,000 3,000 3,000-0% TRANS & DIST TOTAL 426, , , ,000 70,000 10% CUSTOMER SERVICE 5101 Regular Labor 135, , , ,800 1,200 1% 5102 Temporary Labor 5, (900) -100% 5103 Overtime 1,598 1,500 1,500 1,500-0% 5200 Benefits 65,200 72,600 86,700 77,100 4,500 6% 6201 Materials & Supplies 1,794 2,400 2,400 1,500 (900) -38% 6202 Tools % 6203 Office Supplies 617 1,200 1, (300) -25% 6301 Contract Services 24,392 34,800 37,800 38,700 3,900 11% 6302 Banking Services 75,780 90,900 90,900 91, % 6303 Printing & Publishing 1,046 1,500 1,500 3,000 1, % 6304 Legal Services 1,713 1,500 1,500 1,500-0% 6306 Rents & Leases 1, % 6307 Uniforms $ 849 $ 1,800 $ 1,800 $ 1,200 $ (600) -33% 80 FISCAL YEAR BUDGET

83 FY Actuals FY Budget Projected Budgeted Amount Changed % Change 6308 Billing Services $ 13,662 $ 15,600 $ 15,600 $ 15,600 $ - 0% 6402 Telephone 1,134 1,800 1,800 2, % 6406 Postage 28,550 45,300 45,300 45, % 6502 Professional Development 367 4,200 4,200 4,200-0% 6503 Education Assistance (300) -100% 6703 Cash Over/Short (300) -100% CUSTOMER SERVICE TOTAL 360, , , ,100 9,900 2% ADMINISTRATION 5101 Regular Labor $ 960,246 $ 971,200 $ 1,260,200 $ 1,024,800 $ 53,600 6% 5102 Temporary Labor 9,336 3,600 3,600 - (3,600) -100% 5103 Overtime 14,396 15,000 26,500 14,200 (800) -5% 5104 Standby 6,716 6,000 6,000 2,000 (4,000) -67% 5200 Benefits 351, , , ,700 (15,800) -4% 6201 Materials & Supplies 67,230 68,700 66, ,800 56,100 82% 6202 Tools 5,562 3,300 3,300 2,900 (400) -12% 6203 Office Supplies 9,973 10,500 18,200 9,100 (1,400) -13% 6301 Contract Services 354, , , ,900 71,700 18% 6302 Banking Services 3,442 6,000 20,000 6,000-0% 6303 Printing & Publishing 15,401 14,400 15,100 87,500 73, % 6304 Legal Services 55,072 82, ,500 76,000 (6,500) -8% 6306 Rents & Leases 3, ,500 4,500 0% 6307 Uniforms 6,337 7,500 9,600 7, % 6311 Landscape Services 19,626 27,300 16,800 16,800 (10,500) -38% 6312 Janitorial Services 22,445 39,600 42,600 43,600 4,000 10% 6314 Litigation Services ,000 15,000 0% 6401 Utilities 4,296 3,300 3,300 4, % 6402 Telephone 31,012 34,200 36,300 28,600 (5,600) -16% 6403 Electricity 26,239 36,000 36,000 36,000-0% 6404 Fuel 31,943 37,500 37,500 12,500 (25,000) -67% 6405 Permits 28,896 36,000 36,000 57,900 21,900 61% 6406 Postage 7,917 10,500 11,200 13,400 2,900 28% 6501 Memberships & Dues 32,326 31,500 34,300 32, % 6502 Professional Development 28,168 47,700 59,900 48,800 1,100 2% 6503 Education Assistance 167 2,100 2,400 5,500 3, % 6504 Meetings $ 5,180 $ 11,400 $ 14,200 $ 17,900 $ 6,500 57% 81 FISCAL YEAR BUDGET

84 FY Actuals FY Budget Projected Budgeted Amount Changed % Change 6505 Employee Recognition $ 4,206 $ 5,700 $ 5,700 $ 6,000 $ 300 5% 6701 General Insurance 56,587 63,000 63,000 63,000-0% 6702 Insurance Claims 2,102 3,000 3,000 3,000-0% 6702 Bad Debt Expense - - 1,000-0% 6705 OPEB Retirees 47,848 45,000 45,000 87,000 42,000 93% ADMINISTRATION TOTAL 2,212,002 2,459,200 2,921,400 2,743, ,700 12% TOTAL OPERATING EXPENSES OTHER USES 10,164,210 11,470,400 11,981,400 12,168, ,600 6% 7101 Debt Principal 102,958 95,000 95, ,000 5,000 5% 7102 Debt Interest 192, , , ,000 (10,000) -5% 7500 Reserve Contribution 112, ,900 (2,285,100) 30,000 (662,900) -96% 8101 Capital Outlay 9,690 70, , , , % 8999 Capital Improvement Program 1,028, ,000 3,101, , , % TOTAL OTHER USES 1,446,815 1,289,900 1,448, ,000 (342,900) -27% SUMMARY Total Revenue 11,686,882 12,577,000 13,361,606 13,115, ,000 4% Total Operating Expenses 10,164,210 11,470,400 11,981,400 12,168, ,600 6% Total Other Expenses 1,446,815 1,289,900 1,448, ,000 (342,900) -27% Transfer from Reserves % NET $ 75,857 $ (183,300) $ (68,444) $ - $ - 0% 82 FISCAL YEAR BUDGET

85 Wastewater Fund Revenues Vs. Expenses $14M $12M $11,585,430 $11,974,364 $11,572,011 $11,686,882 $12,577,000 $11,546,400 $13,115,000 $12,168,000 $10M $10,113,949 $10,460,073 $10,237,972 $10,164,210 $8M $6M $4M $2M FY Actual FY Actual FY Actual FY Actual FY Projected FY Budgeted Operating Expenses Revenues East Valley Water District collects wastewater from 19,645 customers for treatment. 83 FISCAL YEAR BUDGET

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87 Program Summaries PROGRAM SUMMARIES RED NEW ZEALAND TEA TREE Leptospermum Scoparium Ruby Glow Originating from New Zealand, the drought tolerant Leptospermum Scoparium Ruby Glow is fast-growing reaching heights of 6-8 feet. Its dark ruby-red flowers are in full display in spring.

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89 PROGRAM SUMMARIES Comprehensive information for each functional program within the Distrtict An in-depth District-wide overview of the FY budget. Program Descriptions The District utilizes program-based budgeting. Requested funds are associated with the expected results and performance is measured by indicators and reviewed on a quarterly basis with the Governing Board. This results-oriented strategy provides the ability to monitor expenses related to a particular program or activity and track measurable benefits. Programbased budgeting results can be used in costbenefit analyses, just as it would be in a business environment to determine the value of decisions and enhance transparency. Program goals and objectives have been designed to correlate directly with the District s adopted vision, and are built from the agency Strategic Plan. Based on these goals and objectives, key performance indicators (KPI) monitor progress towards meeting program objectives. Each KPI has a target that provides users of the Budget the ability to assess the Program s performance over time. Programbased budgeting also increases accountability and transparency as the ratepayers and Governing Board can more easily see where dollars are invested and monitor program effectiveness. Some KPIs are included to notate industry benchmarks to help staff understand the District s performance in comparison to the water and wastewater industry. American Water Works Association (AWWA) standards help improve both operational efficiency and managerial effectiveness. The FY Budget is organized into the following summary programs: Governing Board General Administration Human Resources Public Affairs Conservation Finance Information Technology Customer Service Meter Service Engineering Water Production Water Treatment Water Quality 87 FISCAL YEAR BUDGET

90 Water Maintenance Wastewater Maintenance Facilities Maintenance Fleet Maintenance Position Summary Schedule East Valley Water District continues to evaluate staffing needs to ensure all services are addressed by a high-quality workforce. This process is supported by the strategic direction and succession planning efforts previously approved by the Governing Board. The following staffing changes occurred after mid-year in FY , or are being proposed for FY and explain the shifts in staff numbers between departments: The table below summarizes the number of full-time personnel by Department. All authorized positions are funded in the proposed budget for FY Full Time Staffing Summary By Department DEPARTMENT FY Actual FY Actual Budgeted 2000 General Administration Human Resources Public Affairs Conservation Finance & Accounting Information Technology Customer Service Meter Services Engineering Water Production Water Treatment Water Quality Water Maintenance Wastewater Maintenance Facilities Maintenance Fleet Maintenance TOTAL FISCAL YEAR BUDGET

91 Total Authorized Positions 69 FY FY 2018 FY FY FY 2015 FY FY FISCAL YEAR BUDGET

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93 GOVERNING BOARD SAUCER PLANT Aeonium Undulatum Native to the Canary Islands, the Aeonium Undulatum s leaves curl during extreme heat to prevent excessive water loss. It may go dormant during summer and does not require any water, except in very dry conditions. Governing Board

94 GOVERNING BOARD The Governing Board is the District s Legislative Body Responsible for Serving as the Organizational Policy Makers GENERAL ADMINISTRATION HUMAN RESOURCES PUBLIC AFFAIRS Program Personnel CONSERVATION Governing Board Members 5 FINANCE & ACCOUNTING Elected Officials 5 INFORMATION TECHNOLOGY CUSTOMER SERVICE Program Structure Ratepayers Governing Board Chairman Governing Vice Chairman Governing Board Members METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE

95 Function The Governing Board is the legislative body of the organization. Comprised of five members elected at-large to four-year staggered terms of office. Board members are responsible for providing leadership, direction and serving as the organizational policy makers. The Governing Board appoints the General Manager/CEO to carry out the day-to-day District operations and implementation of adopted policies. Goals and Objectives GOAL ONE Provide Organizational Direction and Set Expectations Through Policy Decisions OBJECTIVES 1. Implement a 5-Year Work Plan. 2. Conduct General Manager/CEO annual evaluation, including establishment of FY Goals. 3. Review and update the Board of Directors Handbook and policies. GOAL TWO Address Policy Related Decisions to Construct the Sterling Natural Resource Center (SNRC) OBJECTIVES 1. Consider agenda items regarding the SNRC. 2. Select a Design-Build entity for project construction. 3. Participate in activities that encourage community engagement for the SNRC. GOAL THREE Participate in Activities to Promote Community Engagement and Increase Board Qualifications OBJECTIVES 1. Coordinate with the San Bernardino County Registrar of Voters to hold the 2018 elections. B O A R D O F D I R E C T O R S 2. Post all required election information and conduct notifications. 3. Participate in internal and external professional development activities. 93 FISCAL YEAR BUDGET

96 Governing Board Program FY ACCOMPLISHMENTS Goal 1 Provide Organization Direction and Set Expectations Adopted the Strategic Plan Update Approved new administrative policies (Brown Act Compliance Policy & Public Records Request Policy) Completed the General Manager/CEO evaluation Adopted the Legislative Platform Adopted updates to the Regional Urban Water Management Plan Goal 3 Continue Efforts to Increase the District as a Regional Leader Appointed new Board Member from pool of 8 candidates to fill vacant Board Position All members have attended the California Special District s Association Leadership Academy Served on statewide committees for the Association of California Water Agencies and California Special District s Association Conducted communication training sessions Goal 2 Address Agenda Items Brought Before the Board of Directors Relating to the SNRC Approved filing of application to the Local Agency Formation Commission (LAFCO) for activation of District s latent wastewater treatment authority Approved revisions to the Framework Agreement with SBVMWD Approved the Settlement Agreement with the City of San Bernardino SIGNIFICANT CHANGES Costs associated with elections in November 2018 are included in the FY budget LEVELS OF SERVICE The Governing Board has five KPI metrics that are associated with the District s Goals and Objectives of: Identify Opportunities to Optimize Natural Resources (I-A) Maximize Internal Capabilities through Ongoing Professional Development (I- B) Practice Transparent and Accountable Fiscal Management (II-A) Provide Quality Information to Encourage Community Engagement (II-D) Strengthen Regional, State and National Partnerships (I-C) Program Budget Allocation $337, FISCAL YEAR BUDGET

97 The program s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal I-A I-B II-A II-D I-C Key Performance Indicator Target FY FY FY Act on project related agenda items presented by staff Average number of professional development hours per Board Member Schedule hearing and consider adjustments to rates, fees and charges recommended by staff Submit all documentation by deadlines pursuant to transparency policies Attend regional and state meetings as representatives of EVWD 100% 100% 100% 100% Yes / 1 Yes / 1 Yes / 1 No / 0 100% 100% 100% 100% PROGRAM BUDGET DETAIL PERSONNEL EXPENSES FY Actuals FY Budget Projected Budgeted Amount Changed 5101 Regular Labor $ 81,199 $ 105,000 $ 105,000 $ 105,000 $ - 0% 5200 Benefits 23,042 57,000 57,000 65,000 8,000 14% OPERATING EXPENSES 6201 Materials & Supplies - 1,000 1,000 1,000-0% % Change 6301 Contract Services 11,490 10,000 10, , , % 6307 Uniforms 323 1,000 1,000 1,000-0% 6502 Professional Development 20,558 55,000 55,000 55,000-0% GOVERNING BOARD TOTAL $ 136,612 $ 229,000 $ 229,000 $ 337,000 $ 108,000 47% 95 FISCAL YEAR BUDGET

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99 LACE ALOE Aloe Aristata Haw Member of the Xanthorrhoeaceae family, Aloe Aristata Haw can grow up to 1 foot tall with very little irrigation. This Lesotho and South Africa native thrives in warm temperatures. GENERAL ADMINISTRATION General Administration

100 GOVERNING BOARD General Administration is Responsible for Overseeing the Day-to-Day Operations GENERAL ADMINISTRATION HUMAN RESOURCES PUBLIC AFFAIRS Program Personnel General Manager/CEO 1 District Clerk 1 Sr. Administrative Assistant 1 Total Full Time 3 CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE Program Structure Governing Board METER SERVICES General Manager/CEO ENGINEERING District Clerk WATER PRODUCTION Sr. Administrative Assistant WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE

101 Function The General Manager/CEO is responsible for carrying out day-today District operations, implementation of adopted policies, general oversight to interagency relations, legislative activities, and strategic planning. Additionally, administration is responsible for implementing the District s Vision, maintaining official records, promoting public trust, and ensuring transparency compliance. Goals and Objectives GOAL ONE Acquire Shares of the North Fork Water Company Not Currently Owned by the District OBJECTIVES 1. Send Offer-to-Purchase letters to all shareholders not currently receiving North Fork deliveries. 2. Coordinate with legal counsel to define the terms of potable water service delivery to shareholders currently receiving North Fork deliveries. 3. Create a Stock Transfer procedure guide for shareholders responding to the Offer-to-Purchase letter. GOAL TWO Coordinate the Establishment of a Non-Profit Foundation OBJECTIVES 1. Finalize Vision and Purpose Statements for the establishment of a non-profit foundation. 2. Coordinate with various departments to support the non-profit foundation. 3. Prepare policy recommendations for consideration by the District Governing Board. GOAL THREE Implement a Districtwide Records Retention Program OBJECTIVES 1. Implement an annual records retention training program for staff. 2. Identify records to be transferred into the District s official electronic document repository. G E N E R A L A D M I N I S T R A T I O N 3. Conduct document destruction in accordance with the adopted Records Retention Policy. 99 FISCAL YEAR BUDGET

102 General Administration Program FY ACCOMPLISHMENTS Goal 1 Provide Administrative Support to the Governing Board Conducted 9 candidate orientation sessions for Board Member vacancy Conducted strategic planning sessions Developed a Brown Act Compliance Policy to ensure that all meetings of the Board of Directors and Standing Committees shall be conducted in compliance with all applicable requirements of the Brown Act Goal 3 Promote Environmental Stewardship Implemented an agenda subscriber campaign to encourage customers to stay informed on District projects and programs Goal 4 Implement Programs to Remain in Compliance with Public Records Requirements - - Developed a Public Records Request Policy that defines the criteria and establishes guidelines concerning the accessibility of District records Goal 2 Reduce District Expenditures on Document Storage and Improve Records Management Retained a consultant to develop guidelines for implementing a Records Retention Policy Reviewed statutory disposition schedules with each department OTHER ACCOMPLISHMENTS Continued support for the Adopt-a-School program partnership with San Bernardino City Unified School District Held 14 community conversations and public speaking engagements Successful recruitment process for Engineering and Operations Manager SIGNIFICANT CHANGES Contract services has been increased to pay for destruction of physical records in accordance with the Records Retention Policy Legal services has increased to provide review of potential non-profit foundation and North Fork Water Company re-organization Program Budget Allocation $1,258, FISCAL YEAR BUDGET

103 LEVELS OF SERVICE The General Administration Program has four KPI metrics that are associated with the District s Goals and Objectives of: Practice Transparent and Accountable Fiscal Management (II-A) Provide Quality Information to Encourage Community Engagement (II-D) Dedicated Efforts Toward System Maintenance and Modernization (IV-C) Utilize Effective Communications Methods (II-B) The program s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal II-A II-D IV-C II-B Key Performance Indicator Target FY FY FY Make administrative documents available on-line Publish Open Meeting/Public Notices on or before statutory requirement Reduce number of boxes held in off-site storage Encourage user subscriptions to receive electronic agenda notifications % 100% 100% 100% 2,000 3,162 3,291 3, PROGRAM BUDGET DETAIL PERSONNEL EXPENSES FY Actuals FY Budget Projected Budgeted Amount Changed 5101 Regular Labor $ 504,082 $ 486,000 $ 491,000 $ 507,000 $ 21,000 4% % Change 5103 Overtime 1, ,000 3, % 5200 Benefits 236, , , ,000 25,000 10% OPERATING EXPENSES 6201 Materials & Supplies 1,860 4,000 4,000 4,000-0% 6203 Office Supplies 2,914 4,000 4,000 4,000-0% 6301 Contract Services 143, , , ,000 (12,000) -6% 6303 Printing & Publishing 865 2,000 2,000 2,000-0% 6304 Legal Services 101, , , ,000 (25,000) -17% 6307 Uniforms 418 1,000 1,000 1,000-0% 6402 Telephone - 1,000-50,000 49, % 6406 Postage 2,921 3,000 3,000 3,000-0% 6501 Membership & Dues $ 53 $ - $ - $ - $ - 0% GENERAL ADMIN TOTAL $ 1,106,502 $ 1,202,000 $ 1,372,000 $ 1,258,000 $ 56,000 5% 101 FISCAL YEAR BUDGET

104 6502 Professional Development FY Actuals FY Budget Projected Budgeted Amount Changed % Change $ 87,649 $ 77,000 $ 77,000 $ 77,000 $ - 0% 6503 Education Assistance 15,532 25,000 25,000 20,000 (5,000) -20% 6504 Meetings 7,236 10,000 10,000 10,000-0% GENERAL ADMIN TOTAL $ 1,106,502 $ 1,202,000 $ 1,372,000 $ 1,258,000 $ 56,000 5% 102 FISCAL YEAR BUDGET

105 YELLOW KANGAROO PAW Anigozanthos Flavidus Originating from Western Australia, the kangaroo paw gets its name from the resemblance of its tubular flowers coated with dense hairs that open into paw-like form. HUMAN RESOURCES Human Resources

106 GOVERNING BOARD Human Resources is Responsible for Personnel-Related Programs GENERAL ADMINISTRATION HUMAN RESOURCES PUBLIC AFFAIRS Program Personnel Human Resources/ Risk & Safety Manager 1 Sr. Administrative Assistant 1 CONSERVATION FINANCE & ACCOUNTING Total Full Time 2 INFORMATION TECHNOLOGY Program Structure General Manager/CEO CUSTOMER SERVICE METER SERVICES Human Resources/ Risk & Safety Manager Sr. Administrative Assistant ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE

107 Function Human Resources is responsible for facilitating programs to attract the best and brightest candidates while fostering a work environment that promotes high morale and employee retention. Recognizing the importance of individual well-being, Human Resources leads the efforts to encourage health and wellness. Additionally, they manage the risk and safety programs to ensure a safe work-place at the District. Goals and Objectives GOAL ONE Initiate Programs in Support of SNRC Workforce Needs OBJECTIVES 1. Develop an action plan for the implementation of a Wastewater Operator-in-Training program. 2. Conduct a staffing analysis to identify the needs for administrative, customer service, special events, educational, facilities maintenance, and other functions. 3. Understand the liability requirements of wastewater treatment including additional facility replacement costs, workers compensation coverage for new classification codes, and potential claim impacts. GOAL TWO Promote a Positive Organizational Culture that Maintains a Supportive and Encouraging Work Environment OBJECTIVES 1. Update the Succession Plan to reflect potential retirements and prepare for the implementation of the 5-Year Plan. 2. Create an Action Plan to address results from the annual Engagement survey and focus group meetings. 3. Facilitate quarterly activities that support employee engagement and empowerment. GOAL THREE Promote Community Involvement and Provide Work Experience Opportunities OBJECTIVES 1. Launch the District s Volunteer Program including an applicant tracking method. H U M A N R E S O U R C E S 2. Understand roles for volunteers relating to the SNRC. 3. Identify programs for adult education and community enhancement. 105 FISCAL YEAR BUDGET

108 Human Resources Program FY ACCOMPLISHMENTS Goal 1 Promote a Positive Organizational Culture that Holds Managers, Supervisors and Employees Accountable for Creating and Maintaining a Supportive and Encouraging Work Environment Conducted annual employee engagement surveys and received feedback from the facilitation of engagement focus group meetings Created an action plan for the leadership team to address concerns presented during engagement focus group meetings Received the Top Workplace in the Inland Empire First Place Award by The Inland News Group in the Small Company Category Maintained non-retirement turnover less than 7% Goal 2 Enhance the District s Wellness Initiatives to Help Promote Healthier Behaviors Enhanced the District s Employee Wellness Program by offering BodyMetRx screenings and the Fresh Start Mondays program to assist employees in meeting their healthy lifestyle goals Ensured participation in the District s pre-shift stretching program Goal 3 Develop a Workforce Readiness Program to Enhance Employability Skills of Job Seekers in the Region Identified and defined core competencies of a workforce readiness program Developed program curriculum incorporating core competencies and employability skills for workforce readiness Goal 4 Implement the District s Volunteer Program to Promote Community Involvement, Provide Work Experience Opportunities, and Offer Staff Assistance Conducted departmental needs assessment to gain understanding of areas where volunteers could be utilized Identified recruiting sources to attract volunteer applicants - - Created brochure and website content to prepare for implementation of the District s Volunteer Program OTHER ACCOMPLISHMENTS Graduated 10 participants in the District s 4th Leadership Academy Conducted a successful executive recruitment for the position of Director of Engineering and Operations Hired seven EVWD team members Processed two internal promotions SIGNIFICANT CHANGES The regular labor account has decreased with the elimination of the Administrative Intern position. Funds have been added to the Contract Services account to focus on organizational development and the District s Five-Year Work Plan. Program Budget Allocation $990, FISCAL YEAR BUDGET

109 LEVELS OF SERVICE The Human Resources Program has five KPI metrics that are associated with the District s Goals and Objectives: Encourage Performance Based Results through Staff Empowerment (I-D) Provide Quality Information to Encourage Community Engagement (II-D) Promote a Positive Organizational Culture (III-C) Embrace an Environment of Active Learning and Knowledge Sharing (III-D) The program s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal I-D I-D Key Performance Indicator Target FY FY FY Percentage of annual non-retirement employee turnover Annual performance appraisals completed in a timely manner <7% 4.55% 1.49% 3% 95% 100% 99% 100% II-D Enrollment in District volunteer program III-C III-D Maintain high level of employee participation in annual employee engagement survey Utilization rate of District s Employee Assistance Program 90% 91% 93% 94% >10% 16% 21% 7% PROGRAM BUDGET DETAIL PERSONNEL EXPENSES FY Actuals FY Budget Projected Budgeted Amount Changed 5101 Regular Labor $ 218,087 $ 211,000 $ 211,000 $ 224,000 $ 13,000 6% % Change 5102 Temporary Labor 10,394 12,000 12,000 - (12,000) -100% 5103 Overtime 1,914 3,000 3,000 3,000-0% 5200 Benefits 91, , , ,000 4,000 4% OPERATING EXPENSES 6201 Materials & Supplies ,000 18,000 15,000 (3,000) -17% 6203 Office Supplies 670 2,000 2,000 2,000-0% 6301 Contract Services 54,663 68,000 93,000 70,000 2,000 3% 6303 Printing & Publishing 415 1,000 1,000 1,000-0% 6304 Legal Services 20,264 20,000 20,000 20,000-0% 6406 Postage 19 1,000 1,000 1,000-0% 6501 Membership & Dues 7,828 5,000 5,000 4,000 (1,000) -20% 6502 Professional Development $ 6,941 $ 10,000 $ 10,000 $ 11,000 $ 1,000 10% HUMAN RESOURCES TOTAL $ 784,213 $ 845,000 $ 892,000 $ 990,000 $ 145,000 17% 107 FISCAL YEAR BUDGET

110 FY Actuals FY Budget Projected Budgeted Amount Changed 6504 Meetings $ 1,761 $ 5,000 $ 5,000 $ 5,000 $ - 0% 6505 Employee Recognition % Change 14,020 19,000 19,000 20,000 1,000 5% 6701 General Insurance 188, , , ,000-0% 6702 Insurance Claims 7,006 10,000 10,000 10,000-0% 6705 Retiree Benefits 159, , , , ,000 93% HUMAN RESOURCES TOTAL $ 784,213 $ 845,000 $ 892,000 $ 990,000 $ 145,000 17% 108 FISCAL YEAR BUDGET

111 SOAP ALOE Aloe Saponaria Blooming intermittently throughout the year, the Aloe Saponaria s foliage can reach heights of inches. Sap from its juicy leaves can be used as a soap substitute. PUBLIC AFFAIRS Public Affairs

112 GOVERNING BOARD Public Affairs Oversees Internal and External Communication Programs GENERAL ADMINISTRATION HUMAN RESOURCES PUBLIC AFFAIRS Program Personnel Full Time Director of Strategic Services 1 Public Affairs Specialist 1 Creative Services Representative 1 Sr. Administrative Assistant 1 Total Full Time 4 Part-Time Public Affairs Event Coodinator 0.5 Total Part-Time 0.5 CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES ENGINEERING Program Structure General Manager/CEO Director of Strategic Services Public Affairs Specialist Sr. Administrative Assistant Creative Services Representative Public Affairs Events Coordinator (PT) WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE

113 Function Public Affairs oversees internal and external communication programs consistent with the District s vision. Through media, community and governmental relations, the District is able to provide effective communications to various stakeholders. Goals and Objectives GOAL ONE Implement an Outreach Program that Encourages Community Engagement in the SNRC OBJECTIVES 1. Create outreach materials and events to promote the construction status and future programs of the SNRC. 2. Establish a community group to provide input regarding the SNRC. 3. Enhance the SNRC website to provide regular project updates for community stakeholders. GOAL TWO Develop Communication Methods that Enhance the District s Brand OBJECTIVES 1. Develop the 5-Year Work Plan to compliment the adopted Strategic Plan and District-Wide Goals. 2. Implement alternative approaches to increase internal communication regarding District projects and programs. 3. Identify and participate in monthly community events to strengthen the District s presence in the community. GOAL THREE Advance the District s Emergency Preparedness Program to Effectively Respond in an Emergency OBJECTIVES 4. Revise the District s Emergency Response Plan to reflect current District operations. P U B L I C A F F A I R S 5. Assess staff s current emergency response certification, and facilitate necessary trainings to ensure full compliance with FEMA requirements. 6. Develop a procedures guide which identifies the various communication methods available in emergencies. 111 FISCAL YEAR BUDGET

114 Public Affairs Program FY ACCOMPLISHMENTS Goal 1 Identify and Implement Additional Outreach Efforts that Support the District s Brand and Further Develops Community Presence Incorporated the District s style guide into capital project communication efforts. Hosted pop-up events to celebrate National Day Without Water. Identified recurring community events Goal 3 Maintain the District s Emergency Preparedness Standards in Order to Effectively Respond in a Disaster or Emergency Developed a Crisis Communication Toolkit to be used in the event of an emergency. The District hosted quarterly emergency preparedness drills with staff. - - The District hosted a HAM radio class for District staff and other local agencies. Goal 2 Enhance Customer-Focused Outreach Efforts that Cultivate Relationships and Strengthen the District s Presence in the Community Participated in community events including the Highland Chamber of Commerce, Highland Trails Day, and local school programs. Increased social media engagement by posting at least three times per week to all platforms. Established an Internal Communications Committee to enhance collaboration between departments. SIGNIFICANT CHANGES Sterling Natural Resource Center outreach efforts have been included in this program Printing and Publishing accounted for additional printing items that are new to this fiscal year LEVELS OF SERVICE The Public Affairs Program has five KPI metrics that are associated with the District s Goals and Objectives of: Advance Emergency Preparedness Efforts (III-A) Provide Quality Information to Encourage Community Engagement (II-D) Strengthen Regional, State and National Partnerships (I-C) Utilize Effective Communication Methods (II-B) Program Budget Allocation $1,142, FISCAL YEAR BUDGET

115 The program s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY FY FY III-A Update Emergency Response Plan 100% 75% 80% 80% III-A Number of Emergency Response training hours per FTE II-D Number of community event presentations I-C Number of Community Advisory Commission meetings conducted II-B Number of followers on social media PROGRAM BUDGET DETAIL PERSONNEL EXPENSES FY Actuals FY Budget Projected Budgeted Amount Changed 5101 Regular Labor $ 290,842 $ 347,000 $ 378,000 $ 393,000 $ 46,000 13% 5102 Temporary Labor % 5103 Overtime 6,432 7,000 7,000 7,000-0% 5200 Benefits 84, , , ,000 3,000 2% OPERATING EXPENSES % Change 6201 Materials & Supplies 74,857 70,000 70, , , % 6203 Office Supplies 6,314 7,000 7,000 3,000 (4,000) -57% 6301 Contract Services 77, , , ,000 20,000 14% 6303 Printing & Publishing 49,779 41,000 41, , , % 6304 Legal Services 490 5,000 5,000 5,000-0% 6307 Uniforms 603 3,000 3,000 3,000-0% 6312 Janitorial Services - 10,000 10,000 8,000 (2,000) -20% 6402 Telephone 1,867 3,000 3,000 3,000-0% 6406 Postage 26,280 32,000 32,000 25,000 (7,000) -22% 6501 Membership & Dues 1,924 4,000 4,000 6,000 2,000 50% 6502 Professional Development 7,365 11,000 11,000 12,000 1,000 9% 6503 Education Assistance - 2,000 3,000 8,000 6, % 6504 Meetings 3,476 10,000 10,000 15,000 5,000 50% PUBLIC AFFAIRS TOTAL $ 632,684 $ 828,000 $ 890,000 $ 1,142,000 $ 314,000 38% 113 FISCAL YEAR BUDGET

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117 RASPBERRY ICE Bougainvillea Spectabilis A winter bloomer, the Bougainvillea Spectabilis thrives in very dry conditions and is a salt tolerant. Native to Brazil, Peru, Bolivia, and Chubut Province and Argentina. Conservation CONSERVATION

118 GOVERNING BOARD Conservation Encourages Sustainable Water Use GENERAL ADMINISTRATION HUMAN RESOURCES Program Personnel Full Time Conservation Coordinator 1 Total Full Time 1 PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE Program Structure Director of Strategic Services Conservation Coordinator METER SERVICES ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE

119 Function Conservation is responsible for overseeing programs that facilitate and encourage sustainable water use throughout the District. Additionally, this program is responsible for communicating conservation benchmarks to various regulatory agencies. Goals and Objectives GOAL ONE Develop Community Engagement Programs to Increase Awareness of Water-Use Efficiency. OBJECTIVES 1. Create conservation material in Spanish to help support conservation education. 2. Identify and interact with community groups/events to increase engagement with conservation programs. 3. Develop and host a water conservation workshop series. GOAL TWO Evaluate Rebate Program Success and Implement Program Enhancements. OBJECTIVES 1. Develop a conservation action plan to encourage water efficiency through the different stages of water supply availability. 2. Identify additional programs to increase customer participation and water savings. 3. Host a community event to promote the District s water conservation rebate programs. GOAL THREE Engage in the Legislative Process as it Relates to Changes in Conservation Regulations. OBJECTIVES 1. Actively participate in the regulatory and legislative process as new conservation guidelines are considered. C O N S E R V A T I O N 2. Develop a monitoring procedure to prepare for periods where the District s water use may exceed the regulatory base year. 3. Provide quarterly updates to the Governing Board to ensure they are informed of the changing conservation regulatory requirements. 117 FISCAL YEAR BUDGET

120 Conservation Program FY ACCOMPLISHMENTS Goal 1 Maintain Compliance with Water Conservation Standards Established by the State Water Resources Control Board (SWRCB). Maintained active participation in the development of long-term and short-term conservation guidelines. Met conservation reduction goals established by the SWRCB. Goal 3 Evaluate and Measure the Success of Rebate Programs and Make Recommendations for Improvements. Expanded the District s weather based irrigation controller (WBIC) direct installation program in response to high community interest. Created and distributed thank you letters to customers that have participated in the District s rebate programs. Goal 2 Continue Water Conservation Outreach with the Community to Encourage Continued Water Use Efficiency. Partnered with Inland Empire Water Keeper to enhance the District s demonstration garden and educational signage. Incorporate water conservation outreach material in conjunction with other efforts including bill inserts, social media posts, and on hold messages. Incorporated online event registration to encourage increased attendance at the District s conservation workshops. SIGNIFICANT CHANGES Printing and publishing costs have increased 100% so that printed materials can be translated in Spanish. The increase to the printing budget will also pay for upgraded signage in the demonstration garden. LEVELS OF SERVICE The Conservation Program has four KPI metrics that are associated with the District s Goals and Objectives of: Identify Opportunities to Optimize Natural Resources (I-A) Provide Quality Information to Encourage Community Engagement (II-D) Pursue Alternative Funding Sources (II-C) Program Budget Allocation $593, FISCAL YEAR BUDGET

121 The program s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY FY FY I-A Meet SWRCB conservation goal Yes Yes Yes Yes I-A Maintain significant level of participation in annual conservation rebate programs II-D Number of educational materials created II-C External conservation funding received $ 25,000 $ 265,729 $ 40,123 $ 33,769 PROGRAM BUDGET DETAIL PERSONNEL EXPENSES FY Actuals FY Budget Projected Budgeted Amount Changed 5101 Regular Labor $ 184,508 $ 98,000 $ 98,000 $ 98,000 $ - 0% 5102 Temporary Labor 3, % % Change 5103 Overtime 3,621 8,000 8,000 3,000 (5,000) -63% 5200 Benefits 34,002 32,000 32,000 27,000 (5,000) -16% OPERATING EXPENSES 6201 Materials & Supplies 8,940 20,000 20,000 25,000 5,000 25% 6203 Office Supplies 2,511 3,000 3,000 3,000-0% 6205 Conservation Rebates 287, , , ,000-0% 6301 Contract Services 60, , , ,000 (27,000) -20% 6303 Printing & Publishing 60,690 50,000 50, ,000 50, % 6304 Legal Services 2,760 1,000 1,000 1,000-0% 6307 Uniforms 27 1,000 1,000 1,000-0% 6402 Telephone 991 1,000 1,000 2,000 1, % 6406 Postage 3,378 20,000 20,000 20,000-0% 6501 Membership & Dues 1,749 2,000 2,000 2,000-0% 6502 Professional Development 659 2,000 2,000 2,000-0% 6504 Meetings 550 2,000 2,000 1,000 (1,000) -50% CONSERVATION TOTAL $ 655,981 $ 575,000 $ 575,000 $ 593,000 $ 18,000 3% 119 FISCAL YEAR BUDGET

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123 DWARF LITTLE JOHN Callistemon Viminalis Native from Australia, this evergreen plant can grow 3 feet tall. Butterflies, bees and hummingbirds are attracted to its red flowers, which appear in the spring through summer. Finance & Accounting FINANCE & AC- COUNTING

124 GOVERNING BOARD Finance and Accounting Provides Transparent and Responsible Oversight of District Funds GENERAL ADMINISTRATION HUMAN RESOURCES PUBLIC AFFAIRS Program Personnel Chief Financial Officer 1 Business Services Manager 1 Accountant 1 Sr. Accounting Technician 1 Accounting Technician 1 Sr. Administrative Assistant 1 Total Full Time 6 CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES Program Structure Chief Financial Officer Sr. Administrative Assistant Business Services Manager ENGINEERING WATER PRODUCTION WATER TREATMENT Accountant Sr. Accounting Technician Accounting Technician WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE

125 Function Finance and accounting oversees the business operations of the District in order to provide accountability and adequate control over the use of District funds. Staff maintains the financial systems and records in accordance with Generally Accepted Accounting Principles (GAAP) as well as applicable laws, regulations, and District policies. Goals and Objectives GOAL ONE Enhance Accounting and Financial Reporting for the Benefit of Internal and External Stakeholders OBJECTIVES 1. Support effort to establish a non-profit community foundation by filing application for tax exempt status. 2. Evaluate and Recommend budget software for greater forecasting capabilities. 3. Issue second edition of Popular Annual Financial Report (PAFR) with refined graphics and tables submit PAFR for GFOA award. 4. Support Operations effort to implement inventory bar code system in warehouse by performing tests to ensure accuracy of system integration. GOAL TWO Maintain Strong Financial Policies and Management Practices to Preserve and Enhance the District s Financial Position OBJECTIVES 1. Create a financial plan to reduce long-term pension liabilities. 2. Update District fiscal policies related to credit card use and reimbursable expenses. 3. Budget to build adequate replacement reserves in appropriate programs. GOAL THREE Link Fixed Asset Information in Tyler Accounting System to Digitized Maps in GIS Program OBJECTIVES 1. Link cost/location for 9,400 meters in Phases 1 and 2 of the AMI project with digitized maps of District infrastructure in GIS. F I N A N C E & A C C O U N T I N G 2. Link cost/location for recently rehabilitated sewer manholes in Tyler with GIS. 3. Link cost/location of projects closed in FY to Tyler and GIS. 123 FISCAL YEAR BUDGET

126 Finance & Accounting Program FY ACCOMPLISHMENTS Goal 1 Enhance Accounting Support and Financial Reporting to Internal and External Customers Issued the first edition of the District s Popular Annual Financial Report (PAFR) Received fifth consecutive GFOA Distinguished Budget Award - FY Budget Received sixth consecutive GFOA Certificate of Achievement for Excellence in Financial Reporting FY Comprehensive Annual Financial Report Implemented an option for paying conservation rebates electronically, rather than by check Goal 3 Maintain Strong Financial Policies and Management Practices to Safeguard the District s Financial Position and Reduce Cost of Borrowing Updated the Debt Management Policy for compliance with California SB 1029 Updated the Purchasing Policy and Investment Policy Linked records of all water mains replaced, by project number, in the last 15 years Goal 2 Engage the Community and Management in Planning for, and Compliance with, District Authorized Use of Public Funds Presented the first quarterly budget review Held the Goals and Objectives Workshop Held revenue projection and budget expenditure workshops for Board and Community Advisory Commission. OTHER ACCOMPLISHMENTS Implemented an option for paying conservation and other rebates electronically, rather than by check SIGNIFICANT CHANGES The Storekeeper/Buyer has been moved and budgeted under the Maintenance Program. LEVELS OF SERVICE The Finance and Accounting Program has five KPI metrics that are associated with the District s Goals and Objectives of: Practice Transparent and Accountable Fiscal Management (II-A) Dedicate Efforts Towards System Maintenance and Modernization (IV-C) Program Budget Allocation $1,131, FISCAL YEAR BUDGET

127 The program s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal II-A II-A II-A IV-C II-A Key Performance Indicator Target FY FY FY Timely complete audit and present CAFR within set number of days from fiscal year end Enhance District bond rating through strong reserves and fiscal policies Number of fiscal policies updated / enhanced and reviewed with the Board Convert vendor payments from paper check to electronic fund transfers (EFT) Provide program managers monthly budget variance reports AA AA- AA- AA % 42% 60% 67% PROGRAM BUDGET DETAIL PERSONNEL EXPENSES FY Actuals FY Budget Projected Budgeted Amount Changed 5101 Regular Labor $ 643,714 $ 678,000 $ 683,000 $ 650,000 $ (28,000) -4% 5102 Temporary Labor 19, % % Change 5103 Overtime 11,553 10,000 10,000 5,000 (5,000) -50% 5200 Benefits 247, , , ,000 (28,000) -10% OPERATING EXPENSES 6203 Office Supplies 14,810 11,000 11,000 11,000-0% 6301 Contract Services 156,600 82,000 82,000 89,000 7,000 9% 6302 Banking Services 11,475 20,000 20,000 20,000-0% 6303 Printing & Publishing - 1,000 1,000 1,000-0% 6304 Legal Services 33,960 60,000 60,000 60,000-0% 6307 Uniforms 2,265 3,000 3,000 2,000 (1,000) -33% 6402 Telephone 2,412 3,000 3,000 3,000-0% 6406 Postage 26 1,000 1,000 1,000-0% 6501 Membership & Dues 2,227 4,000 4,000 4,000-0% 6502 Professional Development 8,184 17,000 17,000 21,000 4,000 24% 6503 Education Assistance % 6504 Meetings 2,642 4,000 4,000 4,000-0% 6704 Bad Debt 736 1,000 1,000 1,000-0% FINANCE TOTAL $ 1,158,041 $ 1,182,000 $ 1,256,000 $ 1,131,000 $ (51,000) -4% 125 FISCAL YEAR BUDGET

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129 INFORMATION TECHNOLOGY WESTERN REDBUD Cercis Occidentalis Recognized for its pink blossoms in spring, the Cercis Occidentalis is a drought tolerant shrub or tree that can grow feet tall. A California native, often found in foothills below 4000 feet. Information Technology

130 GOVERNING BOARD IT is Responsible for District Technology and Software Programs GENERAL ADMINISTRATION HUMAN RESOURCES PUBLIC AFFAIRS Program Personnel Information Technology Manager 1 Network Administrator 1 Information Systems Technician 1 Total Full Time 3 CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE Program Structure Chief Financial Officer METER SERVICES ENGINEERING Information Technology Manager WATER PRODUCTION Network Administrator Information Systems Technician WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE

131 Function Information Technology (IT) is responsible for the strategic alignment of technology with the District s initiatives. Staff maintains the enterprise systems, network, cybersecurity, and computer hardware. Goals and Objectives GOAL ONE Ensure Effective Technology Services with Proactive Planning and Maintenance Activities. OBJECTIVES 1. Update the IT Strategic Plan to align technology initiatives with the District s future goals and objectives. 2. Develop IT Policies and Procedures to adhere with industry best practices and regulations. 3. Implement solutions for all high-risk vulnerabilities discovered from the Cybersecurity Assessment. GOAL TWO Conduct Critical System Upgrades to Help Ensure Business Continuity OBJECTIVES 1. Reduce business risks with the installation of a data center fire suppression system. 2. Proactively replace workstations and mobile devices that no longer meet performance requirements or have reached end-oflife. 3. Upgrade the District s internal wireless network to improve guest network capabilities and network traffic management. 4. Install server backup software specifically developed for virtualized environments to enhance business continuity. 5. Upgrade the Voice-Over-IP (phone) system before Cisco s endof-support date. GOAL THREE Enable Data Collection and Data Management Efforts for Other Departments OBJECTIVES 1. Coordinate the collection of back flow testing data for a costbenefit analysis. 2. Implement a Drone Program to improve data collection efforts and improve business processes. 3. Develop data collection processes to document highmaintenance areas for wastewater. 4. Support and configure data dictionary templates to GPS manholes and siphons. 129 FISCAL YEAR BUDGET I N F O R M A T I O N T E C H N O L O G Y

132 Information Technology Program FY ACCOMPLISHMENTS Goal 1 Improve Cybersecurity Resiliency to Mitigate Vulnerabilities and Threats Completed Cybersecurity Plan aligned with the NIST (National Institute of Standards and Technology) Cybersecurity Framework that outlines findings and recommendations. Conducted Network Penetration Testing to discover vulnerabilities, detection methods, and recommended remediations. Implemented a Mobile Device Management solution to manage District issued smart phones and laptops. Continued anti-phishing campaigns to elevate cybersecurity awareness. Created three data quality control reports in the business intelligence platform. Completed the telecommunications audit resulting in 14% annual savings. Goal 3 Improve Technology Infrastructure for Reliable and Redundant Services Added a Tier 2 data storage appliance to increase storage capacity and improve data storage costefficiency. Installed an Internet failover link using cellular technology to improve communications redundancy. Completed the virtualization, software upgrade, and performance optimization of the Geographic Information System. Goal 2 Assess and Evaluate Existing Technology Solutions to Improve Operations Enhanced communication and collaboration by developing SharePoint project sites and Intranet Implementation. SIGNIFICANT CHANGES IT Strategic Plan update project has increased Contract Services. Business Intelligence licensing, data warehouse, and support costs has increased Contract Services. A Managed Services consultant will be utilized to augment staff resources and assist with remediating cybersecurity vulnerabilities. LEVELS OF SERVICE The Information Technology Program has five KPI metrics that are associated with the District s Goals and Objectives of: Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) Strive to Provide World Class Customer Relations (III-B) Dedicate Effort Toward System Maintenance and Modernization (IV-C) Program Budget Allocation $1,009, FISCAL YEAR BUDGET

133 The program s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal IV-A Key Performance Indicator Target FY FY FY Elevate Cybersecurity awareness by sending out test phishing s 1, TBD IV-A Maximize system availability 99% 99% 99% 99% III-B III-B IV-C Receive Excellent scores on IT satisfaction surveys submitted by staff Minimize resolution time for help desk issues submitted by staff Complete all current year projects listed in the IT Strategic Plan >95% - 90% TBD 24 hrs TBD 100% 90% 100% 67% PROGRAM BUDGET DETAIL PERSONNEL EXPENSES FY Actuals FY Budget Projected Budgeted Amount Changed 5101 Regular Labor $ 302,247 $ 313,000 $ 313,000 $ 334,000 $ 21,000 7% 5102 Temporary Labor % 5103 Overtime % % Change 5200 Benefits 83, , , ,000 (20,000) -16% OPERATING EXPENSES 6201 Materials & Supplies 47,696 36,000 35,000 35,000 (1,000) -3% 6203 Office Supplies % 6301 Contract Services 292, , , ,000 39,000 8% 6307 Uniforms 181 1,000 1,000 1,000-0% 6402 Telephone 4,329 6,000 6,000 5,000 (1,000) -17% 6501 Membership & Dues 5,451 6,000 6,000 7,000 1,000 17% 6502 Professional Development 13,683 1,000 2,000 1,000-0% 6503 Education Assistance - 5,000 5,000 5,000-0% 6504 Meetings 401 5,000 5,000 12,000 7, % IT TOTAL $ 750,763 $ 963,000 $ 971,000 $ 1,009,000 $ 46,000 5% 131 FISCAL YEAR BUDGET

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135 ORCHID ROCK ROSE Cistus Purpureus Originally hybridized for fragrant oil production, Cistus Purpureus is a hybrid of two Mediterranean species. A drought tolerant shrub that blooms late spring into summer and grows 4-6 feet tall. CUSTOMER SERVICE Customer Service

136 GOVERNING BOARD Customer Service Provides the Community with World Class Community Relations GENERAL ADMINISTRATION HUMAN RESOURCES PUBLIC AFFAIRS Program Personnel Customer Service Supervisor 1 Sr. Customer Service Rep 1 Customer Service Rep III 1 Customer Service Rep II 2 Customer Service Rep I 1 Receptionist 1 CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY Total Full Time 7 CUSTOMER SERVICE METER SERVICES Program Structure Chief Financial Officer ENGINEERING Customer Service Supervisor Sr. Customer Service Representative Customer Service Representative III Customer Service Representative II Customer Service Representative I Receptionist WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE

137 Function Customer Service provides the community with prompt, courteous, and world class customer relations. As the primary contact point with residents, this program explores opportunities to provide convenient methods of payment and strives to resolve customer concerns. Goals and Objectives GOAL ONE Develop Strategies to Address Organizational Service Needs OBJECTIVES 1. Develop Action Plan to prepare for changes to Customer Service Operations as a result of the SNRC. 2. Create reports to monitor customer delinquency patterns in order to actively engage in proposed legislation. GOAL TWO Modify Processes to Encourage World Class Customer Service while Maintaining Financial Stability OBJECTIVES 1. Review current policies/ordinances and identify recommendations to reduce the number of monthly service disconnections. 2. Survey award winning Customer Service agencies to include items such as staffing levels, billing procedures, and training programs. GOAL THREE Establish a Professional Development Plan that Supports the District s Vision OBJECTIVES 1. Identify professional organizations that provide peer support and best practices for world class customer service. 2. Identify and implement technical and customer service training opportunities on a consistent basis, including peer-to-peer training. C U S T O M E R S E R V I C E 135 FISCAL YEAR BUDGET

138 Customer Service Program FY ACCOMPLISHMENTS Goal 1 Strive to Provide World Class Customer Service Created a video for customers explaining the billing process Created a Welcome Packet for new customers Created a Quick Guide Magnet for customers Researched options for cost recovery of merchant fees Goal 2 Improve Departmental / Customer Processes Updated the Interactive Voice Record so customers can get balance and due date of bills reducing calls to the office Implemented DocuSign for Pre-authorized payment applications and Deposit Waiver applications. SIGNIFICANT CHANGES Increased Contract Services for the Tyler Utility Billing Web Portal LEVELS OF SERVICE The Customer Service Program has six KPI metrics that are associated with the District s Goals and Objectives of: Strive to Provide World Class Customer Relations (III-B) Maximize Internal Capabilities through Ongoing Professional Development (I-B) Dedicate Efforts Toward System Maintenance and Modernization (IV-C) Program Budget Allocation $1,786, FISCAL YEAR BUDGET

139 The program s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal III-B III-B III-B I-B Key Performance Indicator Target FY FY FY Reduce number of customers disconnected for non-payment each year Encourage completion of Customer Satisfaction Surveys to better understand customer concerns Number of customer payments received through convenient off-site locations Number of customer service training hours per employee 1,800 2,825 2, ,000 6,489 7, IV-C Customers enrolled in paperless billing 2,000 1,253 1, IV-C Customers enrolled in the Pre- Authorized Payment Plan (auto-debit) 2,000 1,552 1, PROGRAM BUDGET DETAIL PERSONNEL EXPENSES FY Actuals FY Budget Projected Budgeted Amount Changed 5101 Regular Labor $ 452,130 $ 472,000 $ 472,000 $ 476,000 $ 4,000 1% % Change 5102 Temporary Labor 19,786 3,000 3,000 - (3,000) -100% 5103 Overtime 5,327 5,000 5,000 5,000-0% 5200 Benefits 217, , , ,000 15,000 6% OPERATING EXPENSES 6201 Materials & Supplies 5,981 8,000 8,000 5,000 (3,000) -38% 6203 Office Supplies 2,056 4,000 4,000 3,000 (1,000) -25% 6301 Contract Services 68, , , ,000 18,000 16% 6302 Banking Services 252, , , ,000 3,000 1% 6303 Printing & Publishing 3,486 5,000 5,000 10,000 5, % 6304 Legal Services 5,710 5,000 5,000 5,000-0% 6306 Rents & Leases 5, % 6307 Uniforms 2,830 6,000 6,000 4,000 (2,000) -33% 6308 Billing Services 45,540 52,000 52,000 52,000-0% 6309 Shut Off Notice Services 360, , , ,000-0% 6402 Telephone 3,778 6,000 6,000 6,000-0% 6406 Postage $ 95,165 $ 151,000 $ 151,000 $ 153,000 $ 2,000 1% CUSTOMER SERVICE TOTAL $ 1,547,732 $ 1,749,000 $ 1,811,000 $ 1,786,000 $ 37,000 2% 137 FISCAL YEAR BUDGET

140 6502 Professional Development FY Actuals FY Budget Projected Budgeted Amount Changed % Change $ 1,225 $ 14,000 $ 14,000 $ 14,000 $ - 0% 6503 Education Assistance 733 1,000 1,000 - (1,000) -100% 6504 Meetings 352 2,000 2,000 2,000-0% 6703 Cash Over/Short (179) % CUSTOMER SERVICE TOTAL $ 1,547,732 $ 1,749,000 $ 1,811,000 $ 1,786,000 $ 37,000 2% 138 FISCAL YEAR BUDGET

141 CAMPFIRE CEASSULA Crassula Capitella Campfire' Brightest in winter, Crassula Capitella Campfire leaves mature from light green to bright red. Clusters of white flowers are visible on its leaves in summer. A South Africa native that requires minimum water for growth. METER SERVICES Meter Services

142 GOVERNING BOARD Meter Services is responsible for reading all District meters monthly for billing, on-site customer meter-related requests and customer service assistance. GENERAL ADMINISTRATION HUMAN RESOURCES PUBLIC AFFAIRS CONSERVATION Program Personnel Meter Reader II 1 Meter Reader I 2 Total Full Time 3 FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES Program Structure Operations Manager Meter Reader II ENGINEERING WATER PRODUCTION WATER TREATMENT Meter Reader I WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE

143 Function Meter Service is responsible for reading all District meters monthly for billing, on-site customer meter-related requests and customer service assistance. Goals and Objectives GOAL ONE Evaluate Opportunities and Impacts Resulting from the AMI Implementation. OBJECTIVES 1. Create standard operating procedures for meter retrofits, repairs, and replacements. 2. Develop a customer hand-out explaining how to read an AMI meter. 3. Identify and coordinate with other departments, impacted by the transition to AMI. GOAL TWO Collect Information on Existing Meters to Facilitate Future Phases of AMI Implementation OBJECTIVES 1. Verify meter lid sizes, meter size, and lay length in preparation of future AMI phases. 2. Identify and document concerns with existing meter locations and resolve any issues prior to the account being scheduled for an AMI installation. 3. Provide recommendations for Engineering for future phases of AMI implementation regarding areas of priority and routes, including new construction. GOAL THREE Develop a Proactive Meter Testing Program OBJECTIVES 1. Develop a report to monitor the number of small meters (less than 2 inches) being tested and track efficiency results in compliance with AWWA standards. M E T E R S E R V I C E S 2. Conduct an audit of 10% of the large meter accuracy to ensure compliance with AWWA standards. 141 FISCAL YEAR BUDGET

144 Meter Services Program FY ACCOMPLISHMENTS Goal 1 Develop Employee Knowledge and Skills Using the New AMI Meter Reading Equipment and Processes Meter readers completed training to perform Customer Services duties. Trained meter readers on new hand-held device for the AMI project. Completed commercial driver s training so meter readers can test for class B license. Goal 3 Provide Highly Professional and Timely Responses to Request for On-site Customer Service Requests Responded to all customer requests within two hours. Empowered employees to be flexible, make decisions, and have the confidence to go above and beyond for customers. Goal 2 Collect Information on Existing Meters to Facilitate Future Phases of AMI Implementation Documented meter lid sizes for ordering future phases. Identified and documented concerns with existing meter locations. SIGNIFICANT CHANGES One-Third of the District has been Converted to the New AMI Platform LEVELS OF SERVICE The Meter Services Program has two KPI metrics that are associated with the District s Goals and Objectives of: Strive to Provide World Class Customer Relations (III-B) Dedicate Efforts Toward System Maintenance and Modernization (IV-C) Program Budget Allocation $283, FISCAL YEAR BUDGET

145 The program s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal III-B IV-C Key Performance Indicator Target FY FY FY Respond to customer requests for assistance within 2 hours Number of employees trained on the AMI project 100% 100% 100% 100% PROGRAM BUDGET DETAIL PERSONNEL EXPENSES FY Actuals FY Budget Projected Budgeted Amount Changed % Change 5101 Regular Labor $ 222,017 $ 228,000 $ 228,000 $ 178,000 $ (50,000) -22% 5103 Overtime 7,604 20,000 20,000 10,000 (10,000) -50% 5200 Benefits 93, , ,000 80,000 (55,000) -41% OPERATING EXPENSES 6201 Materials & Supplies 1,385 3,000 3,000 2,000 (1,000) -33% 6202 Tools 164 1,000 1,000 3,000 2, % 6301 Contract Services 5,250 5,000 5,000 5,000-0% 6307 Uniforms 3,205 3,000 6,000 3,000-0% 6402 Telephone 949 2,000 2,000 2,000-0% 6502 Professional Development % METER SERVICES TOTAL $ 334,571 $ 397,000 $ 407,000 $ 283,000 $ (114,000) -29% 143 FISCAL YEAR BUDGET

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147 VARIEGATED JADE PLANT Crassula ovata Variegata In late winter to early spring, white star-shaped flowers with pink overtones grow in showy clusters at the ends of the Variegated Jade Plant s branches. Drought tolerant and a native of South Africa, this shrub can grow up to 4 feet tall. ENGINEERING Engineering

148 GOVERNING BOARD Engineering Implements Infrastructure Projects Needed to Provide Safe & Reliable Services GENERAL ADMINISTRATION HUMAN RESOURCES PUBLIC AFFAIRS Program Personnel Director of Engineering & Operations 1 Sr. Engineer 1 Associate Engineer 1 Sr. Engineering Technician 1 Engineering Technician II 1 Sr. Administrative Assistant 1 Total Full Time 6 CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES Program Structure Director of Engineering & Operations Sr. Engineer ENGINEERING WATER PRODUCTION Associate Engineer Sr. Administrative Assistant Sr. Engineering Technician Engineering Technician II WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE

149 Function Engineering is responsible for planning and overseeing infrastructure projects designed to maintain safe and reliable water and wastewater services. Staff manages the capital improvement program, coordinates with new development, and provides technical support for the infrastructure system. Goals and Objectives GOAL ONE Develop and Implement the District s Capital Improvement Program to Address Rehabilitation and Maintenance Needs While Also Preparing for New Development OBJECTIVES 1. Develop a 5-year CIP based on the updated Water and Wastewater Master Plan. 2. Establish tracking methods to monitor necessary planning and execution of utility relocations in conjunction with public works projects. 3. Update the development guidelines to serve as a tool for both developers and staff. GOAL TWO Develop and Expand Workflow Procedures to Maximize Inter- Departmental Communication and Cooperation with Engineering OBJECTIVES 1. Hold at least semi-annual meetings to maximize data collection regarding mapping updates and field conditions in preparation of the CIP. 2. Participate in trainings and assist with the creation of an Operating Guide for GPS equipment to enhance GIS asset accuracy. E N G I N E E R I N G 3. Develop processes to facilitate efficient workflow systems while maintaining operational flexibility. GOAL THREE Support the Steps Necessary for the Advancement of the SNRC OBJECTIVES 1. Implement the terms of the settlement agreement with the City of San Bernardino. 2. Lead the process and site design efforts for configuration of the facility. 3. Continue working with regulatory agencies to receive needed approvals and permits. 147 FISCAL YEAR BUDGET

150 Engineering Program FY ACCOMPLISHMENTS Goal 1 Provide Leadership in Implementation of CIP in Compliance with the SWRCB Replaced a 30 diameter section of North Fork Santa Ana River pipeline. Completed the 4th Street wastewater main rehabilitation. City Creek Manhole Rehabilitation Project completed. Substantial completion of the design for the Plant 134 to Upper Zone water transmission main. Initiated an engineering evaluation of alternatives to improve sludge management at Plant 134. Supported activities related to SNRC Paloma Road wastewater main rehabilitation phase II completed. Substantial completion of the AMI Meter Retrofit Program Phase II. Goal 2 Foster Partnership Opportunities with Surrounding Agencies and Other Stakeholders to Provide Benefit to the District and the Region Completed the Plant 134 State Water Project Turnout and Hydro-Electric Facility Joint Project with Valley District. Completed the Water Main Extension Joint Project with Pumalo Casa Owners Association. Completed the Joint Project with NFWC for the Replacement of a section of 30 pipe crossing the Santa Ana River. SIGNIFICANT CHANGES New Director of Engineering & Operations joined the District Construction Project Coordinator retired after 35 years of dedicated service Added the Associate Engineer position to improve the department s capacity to execute capital projects LEVELS OF SERVICE The Engineering Program has four KPI metrics that are associated with the District s Goals and Objectives of: Develop Projects and Programs to Ensure Safe and Reliable Services (IV-A) Dedicate Efforts Toward System Maintenance and Modernization (IV-C) Strive to Provide World Class Customer Relations (III-B) Program Budget Allocation $1,521, FISCAL YEAR BUDGET

151 The program s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal IV-A IV-C III-B III-B Key Performance Indicator Target FY FY FY Initiate fully funded projects included in the current year CIP Complete current year updates to GIS base maps Complete development infrastructure plan reviews in < 14 days Issue development impact fee costs estimates in <2 days 100% 80% 100% 100% 100% - 25% 80% 100% - 100% 100% 100% 100% 100% 100% PROGRAM BUDGET DETAIL PERSONNEL EXPENSES FY Actuals FY Budget Projected Budgeted Amount Changed 5101 Regular Labor $ 786,784 $ 712,000 $ 712,000 $ 707,000 $ (5,000) -1% 5102 Temporary Labor % 5103 Overtime 3,749 2,000 2,000 2,000-0% % Change 5200 Benefits 257, , , ,000 (87,000) -25% OPERATING EXPENSES 6201 Materials & Supplies ,000 10,000 11,000 1,000 10% 6202 Tools 62 7,000 7,000 7,000-0% 6203 Office Supplies 7,028 7,000 7,000 7,000-0% 6301 Contract Services 130, , , ,000 2,000 1% 6303 Printing & Publishing 277 3,000 3,000 6,000 3, % 6304 Legal Services 27,745 40,000 40,000 40,000-0% 6307 Uniforms 3,109 5,000 5,000 5,000-0% 6402 Telephone 2,904 2,000 2,000 2,000-0% 6405 Permits 96, , , ,000 73,000 61% 6406 Postage 12 1,000 1,000 1,000-0% 6501 Membership & Dues 405 3,000 3,000 4,000 1,000 33% 6502 Professional Development 3,595 24,000 24,000 30,000 6,000 25% 6504 Meetings 90 3,000 3,000 3,000-0% ENGINEERING TOTAL $ 1,321,766 $ 1,527,000 $ 1,586,000 $ 1,521,000 $ (6,000) 0% 149 FISCAL YEAR BUDGET

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153 BLUE CURLS Echevaria Blue Curls Native to semi-desert areas of Central America, the Echevaria Blue Curls is presumed to be an Echevaria Gibbiflora hybrid. Its rosettes take on showy pink hues in spring and fall. Water Production WATER PRODUCTION

154 GOVERNING BOARD Water Production is Responsible for Monitoring and Operating the Entire Water System GENERAL ADMINISTRATION HUMAN RESOURCES PUBLIC AFFAIRS Program Personnel Operations Manager 1 Sr. Water Production Operator 1 Water Production Operator III 3 Water Production Operator I 1 Administrative Assistant 1 Total Full Time 7 CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES Program Structure Water Production Supervisor Sr. Water Production Operator Water Production Operator III Water Production Operator I Administrative Assistant ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE

155 Function Water Production is responsible for the daily monitoring and operations of the entire water production system. This program ensures the timely preventative maintenance of all pumps, motors, wells, boosters, reservoirs, pressure regulating valves (PRVs), hydro-pneumatic plants, and the Supervisory Control and Data Acquisition (SCADA) system. Staff also operates the North Fork Canal. Goals and Objectives GOAL ONE Develop a Water Supply Mix Plan to Maximize Surface Water OBJECTIVES 1. Develop a plan to forecast monthly water demands to assist with determining the actual water supply mix. 2. Take recommendations from the Water Master Plan and develop an action plan focusing on redundancy, efficiency, and flexibility. 3. Partner with Southern California Edison (SCE) to prepare for changes in electricity rates and maximize the time-of-use structure. GOAL TWO Implement Improvements to Enhance the SCADA System OBJECTIVES 1. Complete the SCADA Master Plan. 2. Identify projects and programs for implementation based on the SCADA Master Plan. GOAL THREE Develop a Plan to Address Challenges and Opportunities Related to North Fork Water Company (NFWC) OBJECTIVES 1. Begin working with active North Fork shareholders to initiate planning for the transition of their water supply from the ditch to the District s system. W A T E R P R O D U C T I O N 2. Evaluate current North Fork infrastructure and determine responsibilities relating to ownership. 3. Better understand the District s Bear Valley Mutual shareholder delivery obligations. 153 FISCAL YEAR BUDGET

156 Water Production Program FY ACCOMPLISHMENTS Goal 1 Ensure System Reliability Through Routine System Inspections and Testing Cla-Val (pressure regulator) maintenance. 15 valves have been rehabilitated. Two reservoirs were inspected by a licensed diver. Worked with a contractor to make structural repairs on one of the reservoirs. Cathodic Protection inspection has been completed on all reservoirs. Repairs were made on 10 tanks to prevent corrosion. Worked with maintenance staff and a tank diver to replace a 10-inch influent flow valve at Plant 56. Rehabilitated 1 well and 8 booster pumps. Worked with the SCADA contractor and IT department to remove and relocate the SCADA server from the Del Rosa yard. Goal 3 Partner with Southern California Edison to Identify and Utilize Equipment Rehabilitation Incentives Participated in numerous Southern California Edison energy reduction programs. Goal 2 Continue to Evaluate SCADA and Implement Improvements as Appropriate Implemented a new maintenance agreement with the SCADA integrator. SIGNIFICANT CHANGES Increased Water Production Transmission & Distribution chemicals 10% due to cost. Increased Water Production Administration Contract Services 20% for SCADA support and upgrades. LEVELS OF SERVICE The Water Production Program has four KPI metrics that are associated with the District s Goals and Objectives of: Dedicate Effort Towards System Maintenance and Modernization (IV-C) Enable Fact-Based Decision Making Through State-ofthe-Art Data Management (IV-D) Pursue Alternative Funding Sources (II-C) Program Budget Allocation $4,378, FISCAL YEAR BUDGET

157 The program s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY FY FY IV-C Contract for yearly reservoir inspections IV-C Perform or schedule repairs recommended by inspection reports 100% 100% 100% 100% IV-D Implement available SCADA soft updates 100% 100% 100% 100% II-C Investigate and identify incentive opportunities with Southern California Edison staff PROGRAM BUDGET DETAIL (ADMINISTRATION) PERSONNEL EXPENSES FY Actuals FY Budget Projected Budgeted Amount Changed 5101 Regular Labor $ 202,494 $ 216,000 $ 216,000 $ 223,000 $ 7,000 3% 5103 Overtime 1,069 1,000 1,000 1,000-0% % Change 5104 Standby 14,562 20,000 20,000 15,000 (5,000) -25% 5200 Benefits 146,813 97, , ,000 9,000 9% OPERATING EXPENSES 6201 Materials & Supplies % 6202 Tools 2,722 5,000 5,000 5,000-0% 6203 Office Supplies 5,973 4,000 4,000 4,000-0% 6301 Contract Services 23,774 85,000 85, ,000 16,000 19% 6307 Uniforms 11,439 12,000 12,000 10,000 (2,000) -17% 6402 Telephone 11,196 14,000 14,000 14,000-0% 6405 Permits % 6501 Membership & Dues 90 3,000 3,000 3,000-0% 6502 Professional Development 9,387 6,000 6,000 6,000-0% 6503 Education Assistance - 5,000 5,000 5,000-0% 6504 Meetings 1,070 1,000 1,000 1,000-0% ADMINISTRATION TOTAL $ 431,042 $ 469,000 $ 477,000 $ 494,000 $ 25,000 5% 155 FISCAL YEAR BUDGET

158 PROGRAM BUDGET DETAIL (SOURCE OF SUPPLY/WELLS) PERSONNEL EXPENSES FY Actuals FY Budget Projected Budgeted Amount Changed % Change 5101 Regular Labor $ 305,004 $ 270,000 $ 270,000 $ 177,000 $ (93,000) -34% 5103 Overtime 22,288 25,000 25,000 25,000-0% 5200 Benefits 58, , ,000 77,000 (36,000) -32% OPERATING EXPENSES 6101 Purchased Water 1,012, , , ,000-0% 6102 Groundwater Replenishment 160, , , , , % 6103 Water Assessment 135, , , ,000 (16,000) -12% 6201 Materials & Supplies 13,970 45,000 45,000 45,000-0% 6204 Chemicals 92, , , ,000-0% 6301 Contract Services 26, , , ,000-0% 6402 Telephone % 6403 Electricity 1,023,896 1,000,000 1,000,000 1,000,000-0% 6405 Permits 72, , , ,000-0% SOURCE OF SUPPLY/ WELLS TOTAL $ 2,926,045 $ 2,654,000 $ 2,697,000 $ 2,791,000 $ 137,000 5% PROGRAM BUDGET DETAIL (BOOSTING AND PUMPING) PERSONNEL EXPENSES FY Actuals FY Budget FY Projected FY Budgeted Amount Changed 5101 Regular Labor $ 84,748 $ 92,000 $ 92,000 $ 86,000 $ (6,000) -7% % Change 5103 Overtime 12,419 5,000 5,000 10,000 5, % 5200 Benefits 19,107 34,000 46,000 36,000 2,000 6% OPERATING EXPENSES 6201 Materials & Supplies 21,982 20,000 20,000 20,000-0% 6301 Contract Services 24,742 75,000 75,000 75,000-0% 6403 Electricity 433, , , ,000-0% BOOSTING & PUMPING TOTAL $ 596,610 $ 726,000 $ 738,000 $ 727,000 $ 1,000 0% 156 FISCAL YEAR BUDGET

159 PROGRAM BUDGET DETAIL (TRANSMISSION AND DISTRIBUTION) PERSONNEL EXPENSES FY Actuals FY Budget FY Projected FY Budgeted Amount Changed % Change 5101 Regular Labor $ 117,206 $ 92,000 $ 92,000 $ 163,000 $ 71,000 77% 5103 Overtime 11,941 5,000 5,000 25,000 20, % 5200 Benefits 23,106 26,000 30,000 73,000 47, % OPERATING EXPENSES 6201 Materials & Supplies 11,300 10,000 10,000 10,000-0% 6204 Chemicals 39,085 45,000 45,000 50,000 5,000 11% 6301 Contract Services 40,842 45,000 45,000 45,000-0% TRANSMISSION & DISTRIBUTION TOTAL $ 243,480 $ 221,000 $ 227,000 $ 366,000 $ 143,000 64% TOTAL WATER PRODUCTION $ 4,196,107 $ 4,071,000 $ 4,138,000 $ 4,378,000 $ FISCAL YEAR BUDGET

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161 MEXICAN SNOW BALL Echeveria Elegans The Echeveria Elegans is a species from the Crassulaceae family, native to semi-desert habitats in Mexico. It thrives in subtropical climates such as those of Southern California. Water Treatment WATER TREATMENT

162 GOVERNING BOARD Water Treatment is Responsible for Treating the Three Sources of Supply GENERAL ADMINISTRATION HUMAN RESOURCES PUBLIC AFFAIRS Program Personnel Water Production Supervisor 1 Sr. Treatment Plant Operator 1 CONSERVATION FINANCE & ACCOUNTING Total Full Time 2 INFORMATION TECHNOLOGY CUSTOMER SERVICE Program Structure METER SERVICES Operations Manager Water Production Supervisor Sr. Treatment Plant Operator ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE

163 Function Water Treatment is responsible for using various methods to treat the three different sources of supply used by the District. Staff is trained to operate the Surface Water Treatment Plant 134 to maximize both Santa Ana River water and imported State Project water. Staff also operates two unique groundwater treatment facilities, Plant 28 uses Granular Activated Carbon (GAC) and Plant 39 is a blending facility. Goals and Objectives GOAL ONE Incorporate Operation and Maintenance of the Hydro-Generation Technology at Plant 134 OBJECTIVES 1. Develop an Operating Guide to support safe and effective procedures. 2. Participate in trainings regarding the hydro-generation technology. 3. Incorporate the upkeep and inspection of equipment into Plant 134 s maintenance schedule. GOAL TWO Complete Plant 134 Membrane Replacement Phase Two of the 5-Year Replacement Plan OBJECTIVES 1. Identify the modules to be replaced in Phase Two. 2. Procure the needed membranes modules from the manufacturer in accordance with the District s purchasing policy. 3. Coordinate and schedule the in-house installation of the new membranes. GOAL THREE Support the Development of a Long-Term Plant 134 Site Improvement Plan OBJECTIVES 1. Coordinate with Engineering to identify a capital project to enhance sludge removal. W A T E R T R E A T M E N T 2. Identify elements that will enhance site security. 3. Provide support to begin implementing these planning efforts. 4. Help identify and implement the additional treatment processes needed to maintain high water quality. 161 FISCAL YEAR BUDGET

164 Water Treatment Program FY ACCOMPLISHMENTS Goal 1 Identify Process Improvements at Plant 134 to Improve Water Quality Worked with the SCADA contractor to replace two touch-screen computers that control Plant 134. Replaced two backwash motors and worked with GE for membrane filter replacements. Relocated a strainer to protect membrane filters. Replaced a chlorine pump skid. Goal 3 Develop an Operations Process and Procedures Manual for the New Hydro-Electric Generators to Use for Staff Training Provided all operators with hands-on training at the treatment plant as the project progressed. Goal 2 Evaluate Use of Hydro-Generation Technology at Plant 134 Worked with a contractor on the hydro-generation start-up and commissioning at Plant 134. Investigated the best options for use of water from the North Fork Canal. SIGNIFICANT CHANGES 20% decrease in Contract Services since only two of the four vessels at Plant 28 will need GAC change out this year. Increase in uniform budget due to no amount specified last year. Treatment uniforms were charged to Production which will result in a decrease for Production. LEVELS OF SERVICE The Water Treatment Program has four KPI metrics that are associated with the District s Goals and Objectives of: Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) Dedicate Effort towards System Maintenance and Modernization (IV-C) Maximize Staff Capabilities through On-going Professional Development (I-B) Program Budget Allocation $848, FISCAL YEAR BUDGET

165 The program s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY FY FY IV-A Meet all regulatory requirements 100% 100% 90% 100% IV-A IV-C I-B Maximize utilization of plant capacity through minimization of downtime and monitoring of raw water Percentage of plant equipment and motors on preventative maintenance schedules Number of Production staff with T-4 certification or higher 7.5 MGD % 75% 100% 100% PROGRAM BUDGET DETAIL PERSONNEL EXPENSES FY Actuals FY Budget Projected Budgeted Amount Changed % Change 5101 Regular Labor $ 222,087 $ 237,000 $ 237,000 $ 214,000 $ (23,000) -10% 5103 Overtime 12,216 10,000 18,000 25,000 15, % 5200 Benefits 78,410 92, ,000 95,000 3,000 3% OPERATING EXPENSES 6201 Materials & Supplies 13,910 15,000 15,000 15,000-0% 6204 Chemicals 129, , , ,000-0% 6301 Contract Services 97, , , ,000 (39,000) -21% 6307 Uniforms ,000 2, % 6402 Telephone 12, % 6403 Electricity 77, , , ,000-0% 6405 Permits % WATER TREATMENT TOTAL $ 644,752 $ 890,000 $ 1,061,000 $ 848,000 $ (42,000) -5% 163 FISCAL YEAR BUDGET

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167 WATER QUALITY PRIDE OF MADEIRA Echium Fastuosum Rapidly growing and drought tolerant, Echium Fastuosum flowers bloom in spring and summer reaching heights of up to 20 inches. Water Quality

168 GOVERNING BOARD Water Quality Complies with all Required Drinking Water Regulations GENERAL ADMINISTRATION HUMAN RESOURCES PUBLIC AFFAIRS Program Personnel Water Quality Coordinator 1 Water Quality Technician 1 CONSERVATION FINANCE & ACCOUNTING Total Full Time 2 INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES Program Structure Water Production Supervisor Water Quality Coordinator ENGINEERING WATER PRODUCTION Water Quality Technician WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE

169 Function Water Quality is responsible for ensuring District compliance with State and Federal Drinking Water Regulations. This program manages Backflow Prevention, Water Sampling and Testing, and Fire Hydrant Flushing Programs. Goals and Objectives GOAL ONE Conduct Expanded Sampling Programs to Ensure Compliance with all State and Federal Water Quality Requirements OBJECTIVES 1. Conduct unregulated contaminant sampling to comply with Federal water quality standards. 2. Identify 50 properties to support completion of the expanded Lead and Copper testing to reflect requirements based on the District s population. 3. Conduct Tri-Annual Lead and Copper Testing of at least 50 properties within the District. 4. Comply with the Action Plan for the TTHM Corrective Order. GOAL TWO Implement the Mandatory Lead Sampling in Schools Program as Required by Assembly Bill 746. OBJECTIVES 1. Establish sampling sites and corresponding schedules for schools required to be tested. 2. Develop technical and communication support in preparation for a school(s) that exceeds lead sampling levels. 3. Complete sampling as required by the legislation. GOAL THREE Implement an In-House Environmental Controls and Compliance Program OBJECTIVES 1. Evaluate processes used by other agencies to assist with Fats, Oils, and Grease (FOG) program implementation in conjunction with SNRC. W A T E R Q U A L I T Y 2. Develop data tracking methods to monitor the backflow testing cost-benefit analysis and resource requirements. 3. Identify and promote back-flow testing to the 5 largest customers in support of transitioning the program to in-house resources. 167 FISCAL YEAR BUDGET

170 Water Quality Program FY ACCOMPLISHMENTS Goal 1 Provide Safe and Reliable Water to Our Customers Worked with contractors to reline the interior, replace the filter nozzles, valves, and Activated Carbon in 4 vessels at Plant 28. Completed 10 months of advanced treatment process pilot to assist in full scale evaluation. Goal 2 Convert Flush-out Valves to Control Discharge Flows Completed 9 of the 12 flush-out retrofits to date. Goal 3 Evaluate New Backflow Program and Determine Effectiveness Taken on annual testing of 372 backflow devices (Fire Service, District Facilities, Customer Owned Devices) Increased customer participation in Backflow Testing Service to 8%. SIGNIFICANT CHANGES Contract Services increased 7% to meet sampling requirements for Disinfection By-Products such as TTHMs. Additional 25% increase in contract services for EPA multi-year Unregulated Contaminant Monitoring Rule (UCMR 4) sampling. Increased Contract Services by $4,000 for Tri-annual lead and copper sampling. LEVELS OF SERVICE The Water Quality Program has four KPI metrics that are associated with the District s Goals and Objectives of: Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) Strive to Provide World Class Customer Relations (III-B) Maximize Staff Capabilities through On-going Professional Development (I-B) Program Budget Allocation $434, FISCAL YEAR BUDGET

171 The program s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal IV-A IV-A III-B I-B Key Performance Indicator Target FY FY FY Conduct all water quality sampling required by SWRCB and EPA Promote Customer Participation in District s Backflow Testing Program Response time to water quality complaints by customers (avg) Number of Water Quality program staff with D-3 certification or higher 100% 100% 100% 100% 5%/Yr N/A 3% 8% 2.0 Hrs. 1.5 Hrs. 1.5 Hrs. 1.5 Hrs PROGRAM BUDGET DETAIL PERSONNEL EXPENSES FY Actuals FY Budget Projected Budgeted Amount Changed 5101 Regular Labor $ 82,854 $ 88,000 $ 88,000 $ 84,000 $ (4,000) -5% % Change 5103 Overtime 6,626 5,000 10,000 7,000 2,000 40% 5200 Benefits 30,212 38,000 48,000 33,000 (5,000) -13% SOURCE OF SUPPLY WELLS OPERATING EXPENSES 6201 Materials & Supplies 9,517 13,000 13,000 13,000-0% 6301 Contract Services 93,730 72,000 72, ,000 38,000 53% 6307 Uniforms 1,553 4,000 4,000 4,000-0% 6504 Meetings - 1,000 1,000 1,000-0% TRANSMISSION AND DISTRIBUTION PERSONNEL EXPENSES 5101 Regular Labor 86,517 88,000 88,000 84,000 (4,000) -5% 5103 Overtime 329 5,000 5,000 8,000 3,000 60% 5200 Benefits 20,695 38,000 38,000 33,000 (5,000) -13% TRANSMISSION AND DISTRIBUTION OPERATING EXPENSES 6201 Materials & Supplies % 6202 Tools 1,063 5,000 5,000 5,000-0% 6301 Contract Services 31,611 44,000 44,000 45,000 1,000 2% 6406 Postage 2,224 2,000 2,000 2,000-0% 6503 Education Assistance - 7,000 7,000 5,000 (2,000) -29% WATER QUALITY TOTAL $ 367,618 $ 410,000 $ 425,000 $ 434,000 $ 24,000 6% 169 FISCAL YEAR BUDGET

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173 CALIFORNIA POPPY Eschscholzia Californica Often used medicinally and in cooking, the Eschscholzia Californica became the official state flower of California in It is native to the United States and Mexico. WATER MAINTENANCE Water Maintenance

174 GOVERNING BOARD Water Maintenance Maintains the District s Water Transmission and Distribution System GENERAL ADMINISTRATION HUMAN RESOURCES PUBLIC AFFAIRS Program Personnel Field Service Supervisor 1 Sr. Field Service Worker 2 Field Service Worker III 4 Field Service Worker II 5 Field Service Worker I 2 Storekeeper/Buyer 1 Total Full Time 15 CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES Program Structure Operations Manager Field Service Supervisor ENGINEERING WATER PRODUCTION Storekeeper/Buyer WATER TREATMENT Sr. Field Service Worker Field Service Worker III Field Service Worker II Field Service Worker I WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE

175 Function Water Maintenance is responsible for the repair and replacement of the District s water distribution mains, water service lines, fire hydrants, meters, valves, and all related equipment. Goals and Objectives GOAL ONE GPS All Valves and Meter Boxes within the Service Area OBJECTIVES 1. Conduct training and create an Operating Guide for GPS equipment. 2. Complete the GPS location of all valves and meter boxes on a grid basis within three years. 3. Field verify 5% AMI meter GPS locations conducted by a contractor. GOAL TWO Review Data Accuracy Compared to Actual Field Conditions OBJECTIVES 1. Conduct field surveys to validate GIS data with the District s border. 2. Improve on the existing field verification and correction process to ensure information is updated within 30 days. 3. Enhance GIS capabilities in field vehicles. GOAL THREE Facilitate Technology Trainings and Community Engagement OBJECTIVES 1. Assist with the implementation of the small-scale facility tour program. 2. Ensure staff receives emergency preparedness radio training. 3. Attend trainings for City Works to provide for a strong technical foundation and encourage professional development. W A T E R M A I N T E N A N C E 173 FISCAL YEAR BUDGET

176 Water Maintenance Program FY ACCOMPLISHMENTS Goal 1 Evaluate All Preventative Maintenance Programs (Valve Exercising and Hydrant Maintenance) and Determine Effectiveness Repaired 211 water leaks. Responded to 956 after hour calls. Repaired or Replaced 31 large vault lids. Completed routine maintenance on 1,252 fire hydrants. Inspected/exercised 988 valves. Assisted the Engineering department with water and Wastewater Master Plan updates. Scheduled in-house main replacement job on Taylor Road. Goal 2 Partner with Local Agencies to Enhance Community Services Created a list of resources available in the event of an emergency. Continued to maintain contact with Patton Hospital and be a resource for routine maintenance and emergencies. Goal 3 Encourage Continued Education and Technology Training to Support Advancement Opportunities Cross-trained the Senior Field Service Worker during the absence of the Supervisor. Taken on the supervisory responsibilities of the Storekeeper/Buyer. Completed Phase I of AMI project resulting in a meter reader reclassification to a Field Maintenance worker in the new Fiscal Year. Increased employees level of Water Distribution, Treatment, and Collections Certifications. Attended Tri-State CWEA conference. SIGNIFICANT CHANGES 10% increase for materials and supplies for warehouse inventory The Storekeeper/Buyer position moved from the Finance department budget. LEVELS OF SERVICE The Water Maintenance Program has four KPI metrics that are associated with the District s Goals and Objectives of: Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) Dedicate Effort Towards System Maintenance and Modernization (IV-C) Maximize Internal Capabilities through Ongoing Professional Development (I-B) Advance Emergency Preparedness Efforts (III-A) Program Budget Allocation $2,549, FISCAL YEAR BUDGET

177 The program s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal IV-A IV-C I-B III-A Key Performance Indicator Target FY FY FY Provide timely response and assessment of customer leak concerns (avg. time). Exercise a set number of gate valves each year to help ensure equipment readiness and functionality Number of Water Maintenance staff with D-3 certifications or higher. Average annual equipment and safety training hours per staff member 4 hrs 100% 90% 95% 1,200 1,200 1,200 1, PROGRAM BUDGET DETAIL (FIELD MAINTENANCE ADMINISTRATION) PERSONNEL EXPENSES FY Actuals FY Budget Projected Budgeted Amount Changed % Change 5101 Regular Labor $ 113,529 $ 114,000 $ 114,000 $ 177,000 $ 63,000 55% 5103 Overtime ,000 20,000 20, % 5104 Standby 22,386 20,000 20,000 20,000-0% 5200 Benefits 41,484 45,000 56,000 90,000 45, % OPERATING EXPENSES 6203 Office Supplies 838 3,000 3,000 3,000-0% 6303 Printing & Publishing % 6307 Uniforms ,000 1, % 6402 Telephone 15,803 21,000 21,000 21,000-0% 6501 Memberships & Dues 542 2,000 2,000 2,000-0% 6502 Professional Development 18,036 14,000 14,000 9,000 (5,000) -36% 6503 Education Assistance % 6504 Meetings 1,661 1,000 1,000 2,000 1, % FIELD MAINTENANCE ADMINISTRATION TOTAL $ 214,836 $ 220,000 $ 246,000 $ 345,000 $ 125,000 57% 175 FISCAL YEAR BUDGET

178 PROGRAM BUDGET DETAIL (TRANSMISSION & DISTRIBUTION) PERSONNEL EXPENSES FY Actuals FY Budget Projected Budgeted Amount Changed 5101 Regular Labor $ 804,287 $ 784,000 $ 784,000 $ 925,000 $ 141,000 18% % Change 5103 Overtime 183, , , ,000 (20,000) -13% 5200 Benefits 373, , , ,000 37,000 9% OPERATING EXPENSES 6201 Materials & Supplies 229, , , ,000 20,000 10% 6202 Tools 25,065 11,000 11,000 11,000-0% 6301 Contract Services 14,175 29,000 29,000 34,000 5,000 17% 6307 Uniforms 19,463 20,000 20,000 20,000-0% 6310 Street Services 188, , , ,000-0% 6405 Permits 18, % TRANSMISSION & DISTRIBUTION TOTAL 1,857,847 2,021,000 2,044,000 2,204, ,000 9% WATER MAINTENANCE TOTAL $ 2,072,683 $ 2,241,000 $ 2,290,000 $ 2,549,000 $ 308,000 14%% 176 FISCAL YEAR BUDGET

179 FRED IVES Graptoveria Depending on the time of year, Graptoveria Fred Ives flowers vary in color. A purplish yellow-orange to blue green hue is apparent during autumn. WASTEWATER MAINTENANCE Wastewater Maintenance

180 GOVERNING BOARD Wastewater Maintenance Maintains the District's Wastewater Conveyance System GENERAL ADMINISTRATION HUMAN RESOURCES PUBLIC AFFAIRS Program Personnel Field Service Worker III 2 Field Service Worker II 2 Total Full Time 4 CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE METER SERVICES Program Structure Field Service Supervisor Field Service Worker III ENGINEERING WATER PRODUCTION Field Service Worker II WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE

181 Function Wastewater Maintenance is responsible for the daily repair and safeguarding of the wastewater conveyance system. Based on the Wastewater System Maintenance Plan, crews complete preventative video monitoring, scheduled maintenance, system repairs, and emergency repairs. Goals and Objectives GOAL ONE Complete Implementation of GraniteNet Software to Collect Data Regarding Wastewater Collection System Maintenance OBJECTIVES 1. Document discrepancies in GIS to ensure consistency with field conditions. 2. Conduct training for all staff utilizing the GraniteNet Software. 3. Conduct semi-annual meetings to discuss data results with Engineering in preparation of capital improvement projects. GOAL TWO Identify Operational Changes Needed to Accommodate Planned Development within the District OBJECTIVES 1. Assist with the development of initial staffing and equipment planning that considers the SNRC. 2. Document contributing factors of high maintenance areas in preparation for the in-house Fats, Oils, and Grease (FOG) Program. 3. Identify training and certification requirements for wastewater treatment certificates. GOAL THREE Incorporate GPS Data to Enhance Efficiency of Wastewater Maintenance Operations and Asset Management OBJECTIVES 1. Gather the GPS location of all manhole covers and siphons. 2. Identify manholes located within easements and implement planned maintenance to reduce damage caused by tree roots and other field conditions. W A S T E W A T E R M A I N T E N A N C E 3. Conduct training and create an Operating Guide for GPS equipment. 179 FISCAL YEAR BUDGET

182 Wastewater Maintenance Program FY ACCOMPLISHMENTS Goal 1 Utilize Granite Net Software to Document Wastewater Collection System Maintenance Video inspected 58 miles of sewer main. Made initial assessments of pipe conditions and recommendations for repairs. Began documentation of discrepancies on GIS maps with Engineering. Downloaded video logs and scheduled routine follow-up meetings with Engineering to discuss repairs and map corrections. Goal 3 Continue Wastewater Collection System Maintenance and Management Cleaned 200 miles of sewer main. Sprayed 1,936 manholes for insect control. Sprayed 3,688 feet of sewer main for root control. Goal 2 Support Future Wastewater Monitoring Operations by Evaluating Fats, Oils and Grease (FOG) entering the District s Wastewater Collection System Staff began researching requirements to begin the compliance process of the FOG program. SIGNIFICANT CHANGES 5% increase in Contract Services for repairs. LEVELS OF SERVICE The Wastewater Maintenance Program has four KPI metrics that are associated with the District s Goals and Objectives of: Dedicate Effort towards System Maintenance and Modernization (IV-C) Develop Projects and Programs to Ensure Safe and Reliable Service (IV-A) Maximize Internal Capabilities through Ongoing Professional Development. (I-B) Program Budget Allocation $8,996, FISCAL YEAR BUDGET

183 The program s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal IV-C IV-C IV-A I-B Key Performance Indicator Target FY FY FY Miles of wastewater line annually inspected by video. Miles of wastewater main jetted/cleaned annually. Number of Category 1 Sanitary System Overflows reportable to the State Water Resources Control Board. Number of field maintenance staff with CWEA wastewater certifications PROGRAM BUDGET DETAIL PERSONNEL EXPENSES FY Actuals FY Budget Projected Budgeted Amount Changed 5101 Regular Labor $ 226,137 $ 280,000 $ 280,000 $ 290,000 $ 10,000 4% % Change 5103 Overtime 13,576 3,000 35,000 45,000 42, % 5200 Benefits 36, , , ,000 2,000 1% OPERATING EXPENSES 6201 Materials & Supplies 28,847 30,000 30,000 31,000 1,000 3% 6202 Tools 6,362 5,000 5,000 5,000-0% 6307 Uniforms 1,346 3,000 3,000 3,000-0% 6305 Treatment Services 8,128,030 7,900,000 7,900,000 8,233, ,000 4% 6301 Contract Services 113, , , ,000 15,000 7% WASTEWATER MAINT. TOTAL $ 8,554,419 $ 8,593,000 $ 8,625,000 $8,996,000 $ 403,000 5% 181 FISCAL YEAR BUDGET

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185 PINK DAYLILY Hemerocallis hybrid Pink Daiquiri Drought resistant and fast growing, daylily flowers open early morning and dwindle during the following night, replaced by another flower on the same stalk. Native of Asia, including China, Korea, and Japan. FACILITIES MAINTENANCE Facilities Maintenance

186 GOVERNING BOARD Facilities Maintenance Repairs and Maintains All District Facilities GENERAL ADMINISTRATION HUMAN RESOURCES Program Personnel Facilities Maintenance Coordinator 1 Facilities Maintenance Worker 1 Total Full Time 2 PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE Program Structure METER SERVICES Production Supervisor Facilities Maintenance Coordinator Facilities Maintenance Worker ENGINEERING WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE

187 Function Facilities Maintenance is responsible for the complete Maintenance and repair of all District Facilities, including Administration Buildings, Water Facilities, District-owned vacant properties and easements. Goals and Objectives GOAL ONE Develop a Long-Term Plant 134 Site Improvement Plan OBJECTIVES 1. Conduct a site assessment to evaluate site security, technology, and miscellaneous needs. 2. Prioritize site projects and develop an improvement schedule. 3. Develop a recommendation to enhance perimeter security around the treatment plant. GOAL TWO Develop a Facilities Maintenance Program to Track and Anticipate Future Costs Associated with all District Facilities OBJECTIVES 1. Identify potential Facilities Maintenance Programs and recommend a qualified firm. 2. Begin incorporating facilities data into the selected Facilities Maintenance Program. 3. Implement a consistent request tracking system and provide training to staff. 4. Develop recommendations to be included in a long-term staffing plan. GOAL THREE Complete Systematic Upgrades and Rehabilitation of District Facilities OBJECTIVES 1. Assess and prioritize needed improvements by location and project. 2. Select sites for immediate repairs and identify the correlating schedule. 3. Conduct repairs for the highest priority sites within the approved budgeted funds. F A C I L I T I E S M A I N T E N A N C E 185 FISCAL YEAR BUDGET

188 Facilities Maintenance Program FY ACCOMPLISHMENTS Goal 1 Explore Alternative Energy Solutions for District Facilities Upgraded lighting to cost effective LED lighting. Added new lighting and sign in the Demonstration Garden. Added heat resistant roofing material at Plants 24, 24B, 99, and 108 to reduce energy costs. Painted Plant 24. Removed swamp coolers at Plant 39 and installed HVAC system to correct moisture issues. Goal 3 Develop a Facilities Maintenance Program to Track and Anticipate Future Costs Associated with all District Facilities Captured asset data for entry into CityWorks for facilities maintenance planning. Goal 2 Identify Two District Facilities for Upgrades and Repairs Road rehabilitation to Plant 99. Slurry coats at Plant 99 and 129. Roof replacements on pump houses at Plants 24, 24B, 99, and 108. Plant 134 exterior paint and Hydro-generation building paint and floor epoxy. New concrete driveway installed at Plant 24 to access mini park. SIGNIFICANT CHANGES Increased Rents and Leases budget due to off-site storage. Increased Contract Services budget $85,000 due to night security guard at Plant 134. LEVELS OF SERVICE The Facilities Maintenance Program has four KPI metrics that are associated with the District s Goals and Objectives of: Dedicate Efforts Toward System Maintenance and Modernization (IV-C) Identify Opportunities to Optimize Natural Resources (I-A) Program Budget Allocation $961, FISCAL YEAR BUDGET

189 The program s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal Key Performance Indicator Target FY FY FY IV-C Close all service work orders timely <30 days N/A N/A <30 days IV-C IV-C I-A Reduce the number of reworks on service work orders Ensure preventative maintenance is completed on time Reduce energy consumption for each facility site **N/A Represents new KPIs for FY with no historical data available PROGRAM BUDGET DETAIL <10% N/A N/A N/A 100% N/A N/A 100% >20% N/A N/A 25% PERSONNEL EXPENSES FY Actuals FY Budget Projected Budgeted Amount Changed % Change 5101 Regular Labor $ 91,009 $ 97,000 $ 89,000 $ 147,000 $ 50,000 52% 5103 Overtime 19,722 25,000 25,000 15,000 (10,000) -40% 5200 Benefits 52,547 44,000 37,000 79,000 35,000 80% ADMINISTRATION OPERATING EXPENSES 6201 Materials & Supplies 41,309 25,000 25,000 30,000 5,000 20% 6202 Tools 729 2,000 2,000 2,000-0% 6301 Contract Services 64,233 34,000 86,000 37,000 3,000 9% 6306 Rents & Leases 10, ,000 15, % 6307 Uniforms 11,855 11,000 11,000 11,000-0% 6311 Landscape Services 35,526 56,000 56,000 56,000-0% 6312 Janitorial Services 74, , , ,000-0% 6313 Facilities Repair % 6401 Utilities 16,261 11,000 11,000 14,000 3,000 27% 6402 Telephone 71,681 75,000 75,000 70,000 (5,000) -7% 6403 Electricity 87, , , ,000-0% 6403 Professional Development SOURCE OF SUPPLY/WELLS OPERATING EXPENSES ,000 1, % 6201 Materials & Supplies 4,735 5,000 5,000 3,000 (2,000) -40% 6301 Contract Services 19,276 5,000 3,850 11,000 6, % 6311 Landscape Services $ 53,307 $ 40,000 $ 40,000 $ 40,000 $ - 0% FACILITIES MAINT. TOTAL $ 761,814 $ 776,000 $ 802,850 $ 961,000 $ 185,000 24% 187 FISCAL YEAR BUDGET

190 FY Actuals PUMPS AND BOOSTERS OPERATING EXPENSES FY Budget Projected Budgeted Amount Changed % Change 6201 Materials & Supplies $ 6,895 $ 5,000 $ 5,000 $ 3,000 $ (2,000) -40% 6301 Contract Services 9,460 5,000 5,000 6,000 1,000 20% 6311 Landscape Services 46,551 35,000 35,000 35,000-0% TREATMENT OPERATING EXPENSES 6201 Materials & Supplies 7,453 5,000 5,000 8,000 3,000 60% 6301 Contract Services 13,677 15,000 13, ,000 87, % 6311 Landscape Services 21,531 14,000 14,000 14,000-0% 6401 Utilities 1,196 15,000 15,000 10,000 (5,000) -33% FACILITIES MAINT. TOTAL $ 761,814 $ 776,000 $ 802,850 $ 961,000 $ 185,000 24% 188 FISCAL YEAR BUDGET

191 PANCAKE PLANT Kalenchoe Thrysifolia A native from South Africa, the Kalenchoe Thrysifolia is a drought tolerant succulent that typically grows to 2 feet tall. Its long rosette leaves resemble stacked pancakes, giving it the nickname Pancake Plant. Fleet Maintenance FLEET MAINTENANCE

192 GOVERNING BOARD Fleet Maintenance is responsible for care of the District's vehicles and heavy equipment GENERAL ADMINISTRATION HUMAN RESOURCES Program Personnel Equipment Mechanic III 1 Total Full Time 1 PUBLIC AFFAIRS CONSERVATION FINANCE & ACCOUNTING INFORMATION TECHNOLOGY CUSTOMER SERVICE Program Structure METER SERVICES Field Service Supervisor ENGINEERING Equipment Mechanic III WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE

193 Function Fleet Maintenance is responsible for preventative maintenance and repairs of the District s vehicles and heavy equipment. Staff is responsible for ensuring air quality regulations, vehicle registration and transportation requirements. Goals and Objectives GOAL ONE Enhance Emergency Response Capabilities OBJECTIVES 1. Install two-way radios in all vehicles for emergency preparedness. 2. Ensure all required staff are properly trained on two-way radios and other emergency response equipment. GOAL TWO Utilize the Most Effective Fleet Maintenance Methods OBJECTIVES 1. Implement the transition from in-house operations to preventative maintenance contractor. 2. Purchase and install GPS tracking system on all vehicles. 3. Integrate the vehicle replacement schedule into the monthly financial statements. GOAL THREE Participate in SNRC Design to Identify Future Impacts to the Fleet OBJECTIVES 1. Evaluate the feasibility of on-site fuel storage. 2. Assess the feasibility of introducing alternate fuel vehicles into the fleet where appropriate. F L E E T M A I N T E N A N C E 191 FISCAL YEAR BUDGET

194 Fleet Maintenance Program FY ACCOMPLISHMENTS Goal 1 Ensure District Vehicles, Equipment, and Staff are Ready for Emergency Response Complete all 30, 60, and 90-day truck inspections and preventative maintenance requirements. Purchased one new generator for emergency preparedness and applied for proper California Air Resources Board (CARB) permits. Purchased an emergency trailer mounted sewer by-pass pump and hose. Goal 3 Utilize Most Cost-Effective Maintenance Methods to Reduce Costs Hired contractor to provide preventative maintenance on vehicles Goal 2 Develop and Implement Cost Recovery Fees for Vehicles per Department for Replacement Purposes Developed a five-year vehicle and equipment replacement plan Purchased four new vehicles Surplus of seven vehicles and three pieces of equipment SIGNIFICANT CHANGES 50% decrease in Materials and Supplies in anticipation of contractor performing Preventative Maintenance. 80% increase in Contract Services for a Preventative Maintenance Contractor. LEVELS OF SERVICE The Fleet Program has three KPI metrics that are associated with the District s Goals and Objectives of: Develop Projects and Programs to Ensure Safe and Reliable Services. (IV-A) Dedicate Efforts Toward System Maintenance and Modernization (IV-C) Program Budget Allocation $459, FISCAL YEAR BUDGET

195 The program s performance related to these metrics are included in the following table. KEY PERFORMANCE INDICATORS Agency Goal IV-A IV-C Key Performance Indicator Target FY FY FY Ensure vehicles and equipment are evaluated and replaced on schedule Percent of vehicles pass annual D.O.T. inspection 80% of Net Asset Value N/A N/A 100% 100% 98% 100% 100% IV-A Number of vehicle/equipment units replaced PROGRAM BUDGET DETAIL PERSONNEL EXPENSES FY Actuals FY Budget Projected Budgeted Amount Changed % Change 5101 Regular Labor $ 169,353 $ 164,000 $ 164,000 $ 81,000 $ (83,000) -51% 5103 Overtime 2,656 3,000 3,000 3,000-0% 5200 Benefits 54,804 79,000 95,000 40,000 (39,000) -49% OPERATING EXPENSES 6201 Materials & Supplies 64,361 60,000 60,000 30,000 (30,000) -50% 6202 Tools 17,749 2,000 2,000 2,000-0% 6203 Office Supplies 330 1,000 1,000 1,000-0% 6301 Contract Services 192,632 75, , ,000 95, % 6402 Telephone 1,001 1,000 1,000 1,000-0% 6404 Fuel 106, , , ,000-0% 6501 Membership & Dues 1,728 4,000 4,000 4,000-0% 6502 Professional Development - 2,000 2,000 2,000-0% FLEET MAINTENANCE TOTAL $ 611,092 $ 516,000 $ 564,000 $ 459,000 $ (57,000) -11% 193 FISCAL YEAR BUDGET

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197 Capital Budget CAPITAL BUDGET RED KANGAROO PAW Anigozanthos Flavidus Originating from Western Australia, the kangaroo paw gets its name from the resemblance of its tubular flowers coated with dense hairs that open into paw-like form.

198

199 CAPITAL BUDGET Capital Investments in assets and projects based on the needs of the District An in-depth District-wide overview of the FY budget. Capital Expenditures East Valley Water District defines capital expenditures as 1) routine purchases and replacement of assets with a cost exceeding $5,000 and an expected life of more than two years, or 2) non-routine construction project expenditures that will result in capitalization of an asset costing more than $25,000. The District s FY Capital Budget contains $20,616,000 in total capital expenditures. Of this amount, $19,510,000 are current year (Year 1) costs pertaining to projects shown in the District s Capital Improvement Program, presented in greater detail in the remainder of this section. The remaining proposed capital expenditures of $1,106,000 are routine asset purchases, referred to as Capital Outlay, which appear in each year s budget as requests to replace vehicles, computer and office equipment, and to conduct infrastructure planning and rate studies. A summary of the proposed FY Capital Budget is shown below. CAPITAL EXPENDITURES SUMMARY Capital Improvement Program Capital Outlay (Routine) AMI Meter Replacement Program $ 1,000,000 Vehicles $ 150,000 New Storage Reservoir 500,000 Computer / Phone System Upgrades 133,000 New Transmission Main 1,100,000 Planning Studies 270,000 Plant 134 Site Improvements 150,000 Acquisition of Water Company Shares 250,000 Plant 134 Process Improvements 150,000 Office Furniture & Equipment 20, FISCAL YEAR BUDGET

200 Plant 134 Membrane Replacement Plant 101 Hydro Tank Rehabilitation Capital Improvement Program Capital Outlay (Routine) $ 405,000 Water Tank Mixers $ 161, ,000 Upgrade Server Room Fire Suppression 40,000 Water Main Replacements 200,000 Upgrade HVAC at Various Plants 40,000 Wastewater Main Rehabilitation 430,000 Sewer Lateral Snake / Locater 12,000 General Facilities Rehabilitation / Relocation SNRC Water Recycling Plant 15,000, ,000 Drone 30,000 TOTAL CIP EXPENDITURES $ 19,510,000 TOTAL CAPITAL OUTLAY $ 1,106,000 IMPACT OF CAPITAL EXPENDITURE INVESTMENTS ON OPERATING BUDGETS The Capital Expenditures described in this section will have varying impacts on future operating expenses, both in increased costs and cost savings. The proposed transmission main allows the District to transport water farther, at higher elevations, before distribution to District customers resulting in energy savings. New water storage reservoirs also result in energy cost savings as they give the District the operational flexibility to pump water during offpeak hours and take advantage of lower rates. The Water Recycling Facility will result in a major shift of costs, from contracted treatment services, to costs associated with owning and operating a District facility such as labor, power, materials, and debt service. The following schedule provides an estimate of the effect of capital expenditures on future operations CAPITAL IMPACT Annual Impact on Operations AMI Replacement Program $ 50,000 AMI Replacement Program 5,400 New Storage Reservoir (10,000) New Transmission Main Nature of Impact Annual Maintenance Costs for AMI Software and Hardware Increased Annual Telecommunication Costs Decreased Power Costs resulting from greater utilization of off-peak energy rates (75,000) Decreased Power Costs Plant 134 Treatment Modifications 30,000 Increased Power Costs Plant 134 Treatment Modifications 50,000 Increased Filter Media Cost Wastewater Facility Rehabilitation - General Facilities Rehabilitation/Relocation - SNRC Water Recycling Plant - SNRC Water Recycling Plant (8,500,000) Decrease Contracted Treatment SNRC Water Recycling Plant 5,181,000 Increase in Debt Service SNRC Water Recycling Plant 3,300,000 Increase Labor, Power, Materials TOTAL $ (31,400) 198 FISCAL YEAR BUDGET

201 CAPITAL OUTLAY The District defines capital outlay expenditures as an individually significant acquisition of capital assets (not involving construction) that are expected to last more than two years and have an individual cost of $5,000 or more. This threshold is applied at the individual asset level. Each year as part of the budget process, the District s Program Managers and Supervisors compile and submit a list of capital outlay request for consideration. Staff reviews and prioritizes the list of equipment based on a needs assessment and the amount of funding available. Items that benefit both the water and wastewater systems are allocated accordingly. FY CAPITAL OUTLAY FUNDED BY OPERATING REVENUE Water Wastewater Total North Fork Water Co. Shares $ 250,000 $ - $ 250,000 Fire Proof Filing Cabinets 7,000 3,000 10,000 Water / Wastewater Rate Studies 60,000 60, ,000 Phone System Upgrade 49,000 21,000 70,000 Workstations' Replacement 17,000 8,000 25,000 Wi-Fi Changeout 7,000 3,000 10,000 Virtualization - Back-Up Software 14,000 6,000 20,000 Replacement CCTV Server - 8,000 8,000 Fire Suppression - Data Center 28,000 12,000 40,000 Drone 21,000 9,000 30,000 Flatfile Storage 7,000 3,000 10,000 SCADA Master Plan 120,000 30, ,000 Plant 24 Chlorine Analyzers 6,000-6,000 Plant 134 Chlorine Analyzers 25,000-25,000 Reservoirs 99 and 101 Tank Mixers 130, ,000 Sewer Lateral Snake and Locater - 12,000 12,000 HVAC Upgrades at Plants 108, 129, 24, 98 40,000-40,000 4 Service Trucks 150, ,000 TOTAL CAPITAL OUTLAY $ 931,000 $ 175,000 $ 1,106,000 CAPITAL IMPROVEMENT PROGRAM The District s Capital Improvement Program (CIP) is a five-year planning schedule with the first year (Year 1) adopted as part of the Capital Budget for the upcoming fiscal year. A project included in the District s CIP is an individually significant construction project with a cost of more than $25,000, and either creates a new capital asset, improves an existing asset (increases its service capacity, etc.), or significantly extends an asset s expected useful life. The Engineering Department is responsible for maintaining the District s Capital Improvement Program and consults various sources for project planning. The primary sources for these planning efforts are the District s Water Master Plan and Wastewater Collection System Master Plan, both updated in The Master Plans 199 FISCAL YEAR BUDGET

202 identify the infrastructure improvements needed to serve a growing population. In addition, each project being considered must meet one or more of the following criteria: Preservation of public health and water quality. Improvements required as a result of local, state or federal legislation/mandates. Reduction of current maintenance expenditures and avoidance of costly future rehabilitation. Preservation of existing facilities/infrastructure. Positive impacts on customers. External funding (grant/debt proceeds) has been secured for specific project. For FY , the District has proposed the use of operating revenue, reserves, development fees, and a loan from the California Department of Water Resources to fund current year phases of Capital Improvement Program projects for $19,510,000 total project costs for the projects in process are approximately $146 million over the next five years. Projects funded for the current year include: Automated Metering Infrastructure This project involves several phases to replace all District water meters with automated metering technology, and will help the District realize water and energy efficiencies, and will empower customers to monitor water usage, and potential leaks, in near real time. Phases 1 and 2 were partially funded by a $2 million grant and installed 8,428 AMI meters. Phase 3 scheduled for FY will install an additional 3,000 AMI meters at an approximate cost of $1 million. Canal Zone Storage Reservoir This facility will enhance water delivery to one of the District s highest elevation pressure zones. Planned expenditures for FY are $500,000 to be funded by capacity fees. Upper Zone Transmission Main This new main will provide system flexibility for delivery of treated water to lower pressure zones in the District. Planned expenditures for FY are $1,100,000 to be funded by the water operating revenue. Plant 134 Improvements and Membrane Replacement Three separate projects will be used to 1) enhance security and communications, 2) assess treatment options for source water quality issues and enhance sludge removal processes, and 3) continue the phased replacement of treatment modules at the District s surface water treatment plant. Current year budgeted costs are $705,000 to be paid out of water fund operating revenue and capital replacement reserves. Hydro Tank Rehabilitation Involves replacement of a small tank that is the sole source of water to serve 35 homes. Current year costs are $350,000 to be paid out of water operating revenue. Water Main Replacements The District has scheduled the replacement of approximately 8,400 linear feet (LF) of interconnected mains in an area where leaks are frequently reported. Planned expenditures during FY on these mains are $200,000, to be funded by water operating revenue. Wastewater Main Replacements The District has scheduled the rehabilitation of two sections of sewer main pipeline, rated as high priority due to the number of structural defects noted during video logging of these pipelines. Planned expenditures during FY on these mains are $430,000, to be funded by wastewater operating revenue. General Facilities Rehabilitation/Relocation These line items involve various projects such as security upgrades, and improving the aesthetics of buildings at plant sites; it also provides a budget for relocating facilities in conjunction with City street or storm drain improvement projects. Planned expenditures for FY are $225,000 to be funded by water operating revenue. Sterling Natural Resource Center Water Recycling Facility This project will capture and treat District wastewater flows at an elevation high enough to recharge the Bunker Hill Groundwater Basin, rather than releasing treated water into the Santa Ana River for use downstream. Planned expenditures in FY are $15,000,000, funded by State Revolving Fund low interest loans. The following pages include the District current Capital Improvement Program, a summary of project funding, and detailed descriptions of each project. 200 FISCAL YEAR BUDGET

203 CIP FIVE YEAR PROGRAM SCHEDULE (FY ) GENERAL YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY FUNDING TOTAL Habitat Conservation Plan $ - $ 310,000 $ 384,000 $ 383,000 $ - $ 1,077,000 AMI Meter Replacement Program 1,000, ,000-1,000,000 2,550,000 GENERAL SUBTOTAL 1,000, , , ,000 1,000,000 3,627,000 WATER Canal Zone Storage Reservoir Mountain Zone Storage Reservoir Transmission Main - Plant 134 to Upper Zone Transmission Main - Plant 134 to Canal Zone Plant Process Improvements Plant Site Improvements Plant Membrane Replacement Plant Hydro Tank Replacement 500, ,000 2,000,000-3,000, ,000,000 1,000,000 1,100, , ,935, , , ,000 1,000, ,150, ,000-1,000, ,150, , , , ,000 1,620, , ,000 Plant 59 - Rehabilitation , ,000 Plant Rehabilitation , ,000 Plant 9 - Forebay Repair , ,000 Water Mains - Dwight & Glasgow Water Mains - Sterling & Highland Water Mains - Fisher & Stratford 200,000 1,000, ,200, , , , ,000 Facility Relocations 100, , , , , ,000 Facility Rehabilitations 75,000 75,000 75,000 75,000 75, ,000 Well & Booster Improvements / Rehabilitations 50,000 50,000 50,000 50,000 50, ,000 WATER SUBTOTAL $ 3,080,000 $ 3,465,000 $ 2,630,000 $ 2,575,000 $ 3,480,000 $ 15,230, FISCAL YEAR BUDGET

204 WASTEWATER Wastewater Main Rehabilitation - Modesto Drive Wastewater Main Rehabilitation - 35th Street Wastewater Main Replacement - Rogers Lane YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL $ 250,000 $ - $ - $ - $ - $ 250, , , , ,000 Wastewater Main Projects - 250, , , ,000 1,300,000 Sterling Natural Resource Center (SNRC) 5th Street Trunk Wastewater (SNRC) Del Rosa Drive Trunk Wastewater (SNRC) 15,000,000 46,900,000 55,825, ,725,000-1,500, ,500,000-6,100, ,100,000 WASTEWATER SUBTOTAL 15,430,000 54,860,000 56,175, , , ,165,000 TOTAL $ 19,510,000 $58,635,000 $ 59,739,000 $ 3,308,000 $ 4,830,000 $ 146,022, FISCAL YEAR BUDGET

205 CIP FIVE YEAR FUNDING SCHEDULE (FY ) YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Water Operating Revenue $ 3,175,000 $ 3,370,000 $ 3,159,000 $ 2,958,000 $ 4,075,000 $ 16,737,000 Water Replacement Reserves Wastewater Operating Revenue Wastewater Replacement Reserves Wastewater Reserve Borrowing 405, , , ,000 1,620, , , , , ,000 1,840, Grants / Loans 15,000,000 54,500,000 55,825, ,325,000 Revenue Bonds Developer Fees 500, ,000 TOTAL $ 19,510,000 $ 58,635,000 $59,739,000 $ 3,308,000 $ 4,830,000 $146,022,000 A $126 million funding package from the California State Water Resources Control Board State Revolving Fund will be used to build the Sterling Natural Resource Center. 203 FISCAL YEAR BUDGET

206 CIP FY PROPOSED FUNDING WATER AMI Meter Replacement Program Canal Zone Storage Reservoir Transmission Main - Plant 134 to Upper Zone Plant Process Improvements Plant Site Improvements Plant 134 Membrane Replacement Plant Hydro Tank Replacement Water Mains - Dwight & Glasgow Water Operating Revenue Wastewater Operating Revenue Replacement Reserves Grants/ Loans Other Fund Developer Fees Project Total $ 1,000,000 $ - $ - $ - $ - $ 1,000, , ,000 1,100, ,100, , , , , , , , , , ,000 Facilities Relocations 100, ,000 Facilities Rehabilitation 75, ,000 Well & Booster Improvements / Rehabilitations 50, ,000 Water Subtotal 3,175, , ,000 4,080,000 WASTEWATER Wastewater Main Rehabilitation - Modesto Drive Wastewater Main Rehabilitation - 35th Street Sterling Natural Resource Center (SNRC) - 250, $ 250, , , ,000,000-15,000,000 Wastewater Subtotal - 430,000-15,000,000-15,430,000 TOTAL $ 3,175,000 $ 430,000 $ 405,000 $ 15,000,000 $ 500,000 $ 19,510, FISCAL YEAR BUDGET

207 CIP PROJECTS RED HOT POKER Kniphofia Uvaria A native from South Africa, the Kniphofia Uvaria buds and emerging flowers are red but mature to yellow, giving each spike a two-toned appearance. Capital Improvement Projects

208

209 Project Description This project consists of updating manual read meters throughout the District with Advanced Metering Infrastructure (AMI) hardware, software, and meters. Phases 1 (FY ) and 2 (FY ) of this project replaced 8,448 meters, and Phase 3, proposed for FY , will upgrade an additional 2,600 meters. Implementation of the AMI infrastructure will provide customers and District staff the ability to monitor water usage, and to receive leak alerts when customer usage is outside of a normal range. The remaining 11,000 accounts will be upgraded with AMI in three phases over the next four to six years. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A AMI Meter Replacement Program Maintenance Annual maintenance costs for AMI software and hardware will be $50,000 Utilities Minimal increase in annual telecommunication costs of $5,400 Project Type Water Location All service connections throughout the District Project Manager Engineering/Information Technology Total Project Cost $1,000,000 Prior Years Budget $2,000,000 in FY ; $0 initially for FY (midyear adjustment to $500,000) Start Date July 2016 Estimated Completion June 2022 Capital Requests Previously Programmed Project 207 FISCAL YEAR BUDGET

210 AMI Meter Replacement Program PROJECT COST ESTIMATED COST ITEMIZATION YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation Construction (Contract) 975, , ,000 2,475,000 Project Mgmt/Inspection Equipment/Furnishings Materials EVWD Labor 25,000-25,000-25,000 75,000 Other (Legal) ANNUAL TOTAL $ 1,000,000 $ - $ 550,000 $ - $ 1,000,000 $ 2,550,000 PROJECT FUNDING FINANCING SOURCES YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Operating Revenue $ 1,000,000 $ - $ 550,000 $ - $ 1,000,000 $ 2,550,000 Reserves Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 1,000,000 $ - $ 550,000 $ - $ 1,000,000 $ 2,550, FISCAL YEAR BUDGET

211 Project Description The purpose of this project is to plan, design, and build additional water storage in the District s Canal Zone, based on recommendations from the master plan update for the water system that is expected to be complete around August OPERATING BUDGET IMPACT Canal Zone Storage Reservoir Project Type Water Location A siting study still needs to be completed to determine the best location for this reservoir Additional Staff Salaries N/A Debt Service N/A Maintenance There will be incremental maintenance costs for any additional storage tanks to address corrosion control and site maintenance. Utilities Decreased power costs of $10,000 resulting from greater utilization of off-peak energy rates Project Manager Engineering Total Project Cost $3,000,000 Prior Years Budget N/A Start Date July 2018 Estimated Completion June 2022 Capital Requests New Project 209 FISCAL YEAR BUDGET

212 Canal Zone Storage Reservoir PROJECT COST ESTIMATED COST ITEMIZATION YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Planning and Design $ 50,000 $ - $ - $ - $ - $ 50,000 Land and Land Preparation Construction (Contract) 380, ,000 1,770,000-2,580,000 Project Mgmt/Inspection 50,000-50, , ,000 Equipment/Furnishings Materials EVWD Labor 20,000-20,000 30,000-70,000 Other (Legal) ANNUAL TOTAL $ 500,000 $ - $ 500,000 $ 2,000,000 $ - $ 3,000,000 PROJECT FUNDING FINANCING SOURCES YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Operating Revenue $ - $ - $ 500,000 $ 2,000,000 $ - $ 2,500,000 Reserves Grants/Loans Bond Proceeds Development Fees 500, ,000 Other ANNUAL TOTAL $ 500,000 $ - $ 500,000 $ 2,000,000 $ - $ 3,000, FISCAL YEAR BUDGET

213 Transmission Main - Plant 134 to Upper Zone Project Description East Valley Water District s service area is bifurcated by the 210 and 330 Freeways, allowing a limited number of crossing points to move water from one side of the freeway to the other. This limitation makes delivery of water from the District s surface water treatment plant (Plant 134) to the opposite (west) side of the freeway very inefficient as water must be dropped to lower zones to a crossing point, and then pumped back to higher elevations on the west side of the freeway. Without this limitation, delivery of water produced by Plant 134 would require little pumping and be very cost effective. Project Type Water Location Highland Avenue between Plant 134 and Victoria Avenue Project Manager Engineering Total Project Cost $2,085,000 This project will create a new freeway crossing point at high elevation, greatly enhancing system efficiency and flexibility. The project involves installation of a 16 inch transmission main crossing the 330 Freeway and Highland Avenue. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Prior Years Budget $150,000 Start Date April 2017 Estimated Completion June 2019 Capital Requests Previously Programmed Project Utilities This project would save approximately $75,000 annually on booster and well pumping on the District s west side 211 FISCAL YEAR BUDGET

214 Transmission Main, Plant 134 to Upper Zone PROJECT COST ESTIMATED COST ITEMIZATION YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation Construction (Contract) 940, , ,615,000 Project Mgmt/Inspection 120, , ,000 Equipment/Furnishings Materials EVWD Labor 40,000 40, ,000 Other (Legal) ANNUAL TOTAL $ 1,100,000 $ 835,000 $ - $ - $ - $ 1,935,000 PROJECT FUNDING FINANCING SOURCES YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Operating Revenue $ 1,100,000 $ 835,000 $ - $ - $ - $ 1,935,000 Reserves Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 1,100,000 $ 835,000 $ - $ - $ - $ 1,935, FISCAL YEAR BUDGET

215 Project Description Plant 134 is the District s only surface water treatment plant and is the primary source for delivering water to three of the District s higher elevation pressure zones. The organic content of water treated at Plant 134 (i.e., water from the Santa Ana River and State Water Project) varies due to seasonal and other effects. When this high organic content in Plant 134 source water interacts with chlorine added during treatment processes, the by-product Total Trihalomethane (TTHM) can reach unacceptable levels leading to water quality concerns. This project includes research of various treatment processes, including Granular Activated Carbon (GAC) filter, and eventually construction, to remove organics and mitigate the possibility of high TTHM levels. During the same period, the District will explore methods for disposal of higher levels of sludge removed from surface water. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Plant 134 Process Improvements (TTHMs & Sludge Management) Maintenance The installation of GAC filters would increase maintenance costs by approximately $50,000 annually for replacement of filter media. Utilities An additional treatment process will increase power costs by approximately $30,000 annually Project Type Water Location Treatment Plant Highland Avenue Highland, CA Project Manager Operations Total Project Cost $1,150,000 Prior Years Budget N/A Start Date August 2018 Estimated Completion TBD Capital Requests New Project 213 FISCAL YEAR BUDGET

216 Plant 134 Process Improvements (TTHMs & Sludge Management) PROJECT COST ESTIMATED COST ITEMIZATION YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Planning and Design $ 150,000 $ - $ - $ - $ - $ 150,000 Land and Land Preparation Construction (Contract) - 900, ,000 Project Mgmt/Inspection - 100, ,000 Equipment/Furnishings Materials EVWD Labor Other (Legal) ANNUAL TOTAL $ 150,000 $ 1,000,000 $ - $ - $ - $ 1,150,000 PROJECT FUNDING FINANCING SOURCES YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Operating Revenue $ 150,000 $ 1,000,000 $ - $ - $ - $ 1,150,000 Reserves Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 150,000 $ 1,000,000 $ - $ - $ - $ 1,150, FISCAL YEAR BUDGET

217 Plant 134 Site Improvements (Security, Communication, Lab Upgrades, etc) Project Description Plant 134 is the District s only surface water treatment plant and is the primary source for delivering water to three of the District s higher elevation pressure zones. The Plant is located in the foothills above Highland, which has made it susceptible to intrusion from nearby homeless encampments, and dropped communications that are trying to utilize its wireless network. In addition, the Laboratory and bathroom facilities at the Plant are in need of rehabilitation. Project Type Water Location Treatment Plant Highland Avenue Highland, CA Project Manager Operations This project includes installation of improved physical barriers around the perimeter of the plant to prevent intrusion, the installation of conduit and cabling from Highland Avenue, along the Plant access road up to the Plant, to allow hard wiring for primary security and communications systems, and a remodel of the laboratory and bathroom facilities. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance The installation of improved security systems at the Plant will reduce repair costs and staff overtime, improved communication systems will reduce staff time for troubleshooting communications failures. Total Project Cost $1,150,000 Prior Years Budget N/A Start Date August 2018 Estimated Completion June 2020 Capital Requests New Project Utilities N/A 215 FISCAL YEAR BUDGET

218 Plant 134 Site Improvements PROJECT COST ESTIMATED COST ITEMIZATION YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Planning and Design $ 150,000 $ - $ - $ - $ - $ 150,000 Land and Land Preparation Construction (Contract) , ,000 Project Mgmt/Inspection , ,000 Equipment/Furnishings Materials EVWD Labor Other (Legal) ANNUAL TOTAL $ 150,000 $ - $ 1,000,000 $ - $ - $ 1,150,000 PROJECT FUNDING FINANCING SOURCES YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Operating Revenue $ 150,000 $ - $ - $ - $ - $ 150,000 Reserves - - 1,000, ,000,000 Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 150,000 - $ 1,000,000 $ - $ - $ 1,150, FISCAL YEAR BUDGET

219 Plant 134 Treatment Membrane Replacement Project Description Plant 134 has 5 treatment trains that consist of 180 membrane filters per train. The manufacturer of the filters recommends replacing the filter every 5 to 7 years. In FY staff replaced 1 full train with new filters which drastically reduced staff time in making membrane repairs. Staff plans to replace another full train of filters in FY , and continue to replace 1 train per year until all of the filters have been replaced. OPERATING BUDGET IMPACT Project Type Water Location Treatment Plant Highland Ave. Highland, CA Project Manager Operations Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A Total Project Cost $1,620,000 Prior Years Budget N/A Start Date January 2018 Estimated Completion February 2022 Capital Requests On-going Project 217 FISCAL YEAR BUDGET

220 Plant 134 Treatment Membrane Replacement PROJECT COST ESTIMATED COST ITEMIZATION YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation Construction (Contract) Project Mgmt/Inspection Equipment/Furnishings Materials 405, , , ,000 1,620,000 EVWD Labor Other (Legal) ANNUAL TOTAL $ 405,000 $ 405,000 $ 405,000 $ - $ 405,000 $ 1,620,000 PROJECT FUNDING FINANCING SOURCES YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Operating Revenue $ - $ - $ - $ - $ - $ - Reserves 405, , , ,000 1,620,000 Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 405,000 $ 405,000 $ 405,000 $ - $ 405,000 $ 1,620, FISCAL YEAR BUDGET

221 Project Description The Hydro-pneumatic tank at Plant 101 boosts water to 37 homes that are situated at the same elevation as the plant site, and therefore cannot be gravity fed by the plant s 1.4-million-gallon reservoir; the hydro tank is the only means of serving these customers. A recent inspection of Plant 101 revealed that the hydro tank and booster pumps need rehabilitation or replacement. This project includes an assessment of the alternatives rehabilitation or replacement taking into consideration, not just project costs, but length of time the homes dependent on the hydro tank will be without water. OPERATING BUDGET IMPACT Plant 101 Hydro Tank Rehabilitation Project Type Water Location 3045 N. Mountain Top Drive Highland, CA Project Manager Engineering Total Project Cost $350,000 Prior Years Budget N/A Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Start Date December 2018 Estimated Completion June 2019 Capital Requests New Project Utilities N/A 219 FISCAL YEAR BUDGET

222 Plant 101 Hydro Tank Rehabilitation PROJECT COST ESTIMATED COST ITEMIZATION YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation Construction (Contract) 290, ,000 Project Mgmt/Inspection 35, ,000 Equipment/Furnishings Materials EVWD Labor 25, ,000 Other (Legal) ANNUAL TOTAL $ 350,000 $ - $ - $ - $ - $ 350,000 PROJECT FUNDING FINANCING SOURCES YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Operating Revenue $ 350,000 $ - $ - $ - $ - $ 350,000 Reserves Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 350,000 $ - $ - $ - $ - $ 350, FISCAL YEAR BUDGET

223 Water Main Replacement - Dwight & Glasgow Project Description Replace 4-inch and 6-inch main with new 8-inch main of approximately 8,400 linear feet of pipeline in Glasgow Avenue and Dwight Way from Baseline Street to Pacific Avenue and in Elmo Drive, Independent Place and Bessant Street from Dwight Way to Glasgow Avenue and in Anson Street, Fisher Street, and Bessant Street from Glasgow Avenue to Del Rosa Drive. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance The annual maintenance cost for the new water main will be very low for the first several years. The maintenance cost to repair leaks on the existing water main is the key driver for this project. Project Type Replacement Water Distribution Main Location Dwight Way and Glasgow Avenue between Pacific and Baseline Project Manager Engineering Total Project Cost $1,200,000 Prior Years Budget N/A Start Date September 2018 Utilities N/A ANSON ST. Estimated Completion May 2020 DWIGHT WY. GLASSGOW AVE FISHER ST. DEL ROSA AVE Capital Requests New Project BESSANT ST. INDEPENDENT PL. ELMO DR. 221 FISCAL YEAR BUDGET

224 Water Main Replacement - Dwight & Glasgow PROJECT COST ESTIMATED COST ITEMIZATION YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Planning and Design $ 180,000 $ - $ - $ - $ - $ 180,000 Land and Land Preparation Construction (Contract) - 900, ,000 Project Mgmt/Inspection - 100, ,000 Equipment/Furnishings Materials EVWD Labor 20, ,000 Other (Legal) ANNUAL TOTAL $ 200,000 $ 1,000,000 $ - $ - $ - $1,200,000 PROJECT FUNDING FINANCING SOURCES YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Operating Revenue $ 200,000 $ 1,000,000 $ - $ - $ - $ 1,200,000 Reserves Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 200,000 $ 1,000,000 $ - $ - $ - $ 1,200, FISCAL YEAR BUDGET

225 Project Description The District s service area covers all of the City of Highland, parts of the City of San Bernardino and parts of San Bernardino County. When these agencies plan and construct improvements within their jurisdiction, there are occasionally alignment or location conflicts with existing District facilities. When this occurs, the District is frequently obliged to relocate its facilities. OPERATING BUDGET IMPACT Facility Relocations Project Type Replacement Water Distribution System Location District Wide Project Manager Engineering Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A Total Project Cost $100,000 for FY Budgeted annually. Prior Years Budget N/A Start Date July 2018 Estimated Completion June 2019 Capital Requests Perennial Budget Request 223 FISCAL YEAR BUDGET

226 Facility Relocations PROJECT COST ESTIMATED COST ITEMIZATION YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Planning and Design $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 10,000 $ 50,000 Land and Land Preparation Construction (Contract) 85,000 85,000 85,000 85,000 85, ,000 Project Mgmt/Inspection Equipment/Furnishings Materials EVWD Labor 5,000 5,000 5,000 5,000 5,000 25,000 Other (Legal) ANNUAL TOTAL $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 PROJECT FUNDING FINANCING SOURCES YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Operating Revenue $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500,000 Reserves Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 100,000 $ 500, FISCAL YEAR BUDGET

227 Facility Rehabilitations Project Description This project involves improvements to multiple facilities, including: Paint exterior doors and trim at Plant 134 Slurry seal asphalt inside of Plant 129, replace booster building roof, and repair perimeter fencing OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A Project Type Water Location Plant Highland Avenue San Bernardino CA Plant Calle Del Rio Highland CA Project Manager Operations Total Project Cost $75,000 for FY Budgeted Annually Prior Years Budget N/A Start Date July 2018 Estimated Completion June 2019 Capital Requests Perrenial Budget Request 225 FISCAL YEAR BUDGET

228 Facility Rehabilitations PROJECT COST ESTIMATED COST ITEMIZATION YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Planning and Design $ - $ - $ - $ - $ - $ - Land and Land Preparation Construction (Contract) 75,000 75,000 75,000 75,000 75, ,000 Project Mgmt/Inspection Equipment/Furnishings Materials EVWD Labor Other (Legal) ANNUAL TOTAL $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 375,000 PROJECT FUNDING FINANCING SOURCES YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Operating Revenue $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 375,000 Reserves Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 375, FISCAL YEAR BUDGET

229 Well & Booster Improvements/Rehabilitation Project Description The District has approximately 65 booster pumps, and 16 Wells in the water distribution system. In order to ensure that these facilities operate properly and provide reliable service, this budget item will provide funding to rehabilitate existing booster pumps and wells prior to failure or major reductions in performance. This pro-active approach will reduce the cost of repairs done in an emergency or reactive mode. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance Maintenance costs will be reduced by allowing work to be scheduled in proactive mode rather than emergency reactive modes, which can incur overtime charges in addition to the cost of the repairs. Utilities Improving pump and well performance through scheduled repairs and rehabilitation will result in improved efficiency and lower energy costs. Project Type Water Location TBD Project Manager Operations Total Project Cost $250,000 Prior Years Budget N/A Start Date July 2018 Estimated Completion June 2019 Capital Requests Perrenial Budget Request 227 FISCAL YEAR BUDGET

230 Well & Booster Improvements/Rehabilitations PROJECT COST ESTIMATED COST ITEMIZATION YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Planning and Design $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 25,000 Land and Land Preparation Construction (Contract) 40,000 40,000 40,000 40,000 40, ,000 Project Mgmt/Inspection Equipment/Furnishings Materials EVWD Labor 5,000 5,000 5,000 5,000 5,000 25,000 Other (Legal) ANNUAL TOTAL $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 PROJECT FUNDING FINANCING SOURCES YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Operating Revenue $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250,000 Reserves Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 250, FISCAL YEAR BUDGET

231 Project Description This section of 6-inch diameter sewer main is under sized with an 8-inch main upstream. A 6-inch diameter main provides more potential for main blockage to occur. Current standards require minimum 8-inch diameter for mains. This section of pipeline has 16 direct lateral connections and serves approximately 45 single family residential units upstream. Requires reconstruction of approximately 760 linear feet of pipeline and reconnection of 16 laterals. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A Wastewater Main Rehabilitation - Modesto Drive 36 TH ST. MODESTO DR. Project Type Wastewater Location Modesto Drive - 35th Street to 36th Street Project Manager Engineering Total Project Cost $250,000 Prior Years Budget N/A Start Date July 2018 Estimated Completion June 2019 Capital Requests New Project 35 TH ST. 229 FISCAL YEAR BUDGET

232 Wastewater Main Rehabilitation - Modesto Drive PROJECT COST ESTIMATED COST ITEMIZATION YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Planning and Design $ 25,000 $ - $ - $ - $ - $ 25,000 Land and Land Preparation Construction (Contract) 200, ,000 Project Mgmt/Inspection 25, ,000 Equipment/Furnishings Materials EVWD Labor Other (Legal) ANNUAL TOTAL $ 250,000 $ - $ - $ - $ - $ 250,000 PROJECT FUNDING FINANCING SOURCES YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Operating Revenue $ 250,000 $ - $ - $ - $ - $ 250,000 Reserves Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 250,000 $ - $ - $ - $ - $ 250, FISCAL YEAR BUDGET

233 Wastewater Main Rehabilitation - 35th Street Project Description This section of 6-inch diameter sewer main is under sized with an 8-inch main upstream. A 6-inch diameter main provides more potential for main blockage to occur. Current standards require minimum 8-inch diameter for mains. This section of pipeline has 7 direct lateral connections and serves approximately 50 single family residential units upstream. Requires reconstruction of approximately 525 linear feet of pipeline and reconnection of 7 laterals. OPERATING BUDGET IMPACT Additional Staff Salaries N/A Debt Service N/A Maintenance N/A Utilities N/A GARDEN DR. MODESTO DR. CONEJO DR. Project Type Wastewater Location 35th Street Garden Drive to Conejo Drive Project Manager Engineering Total Project Cost $180,000 Prior Years Budget N/A Start Date July 2018 Estimated Completion June 2019 Capital Requests New Project 35 TH ST. 231 FISCAL YEAR BUDGET

234 Wastewater Main Rehabilitation - 35th Street PROJECT COST ESTIMATED COST ITEMIZATION YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Planning and Design $ 18,000 $ - $ - $ - $ - $ 18,000 Land and Land Preparation Construction (Contract) 162, ,000 Project Mgmt/Inspection Equipment/Furnishings Materials EVWD Labor Other (Legal) ANNUAL TOTAL $ 180,000 $ - $ - $ - $ - $ 180,000 PROJECT FUNDING FINANCING SOURCES YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Operating Revenue $ 180,000 $ - $ - $ - $ - $ 180,000 Reserves Grants/Loans Bond Proceeds Development Fees Other ANNUAL TOTAL $ 180,000 $ - $ - $ - $ - $ 180, FISCAL YEAR BUDGET

235 Sterling Natural Resource Center (SNRC) Project Description In response to the drought and SBX7-7 which mandates that the District must cut 20% of its use by the year 2020, the District is planning and constructing a water recycling facility. The facility will allow the District to treat wastewater to a point that it can be recharged back into the groundwater basin and reused for domestic purpose. Initially the facility will treat approximately 6 million gallons per day and will be expandable to be able to treat ultimate build out of approximately 10 million gallons per day. OPERATING BUDGET IMPACT Additional Staff Salaries $1,325,000 Debt Service $5,181,000 annually on a low interest, State Revolving Fund loan Maintenance $1,250,000 (estimated) for contract services and supplies. Contracted treatment paid to a third party of $8,500,000 would be eliminated Project Type New Wastewater Treatment Location Northwest Corner of 5th Street and Del Rosa Drive Project Manager Engineering Total Project Cost $117,725,000 Prior Years Budget N/A Start Date January 2014 Estimated Completion March 2022 Utilities $725,000 (estimated) for additional electrical energy, natural gas, water, wastewater, and telephone/data communications will be required Capital Requests Previously Programmed Project 233 FISCAL YEAR BUDGET

236 Sterling Natural Resource Center PROJECT COST ESTIMATED COST ITEMIZATION YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Planning and Design $ 1,500,000 $ - $ - $ - $ - $ 1,500,000 Land and Land Preparation Construction (Contract) 12,000,000 42,210,000 50,242, ,452,500 Project Mgmt/Inspection 1,500,000 4,690,000 5,582, ,772,500 Equipment/Furnishings Materials EVWD Labor Other (Legal) ANNUAL TOTAL $ 15,000,000 $46,900,000 $55,825,000 $ - $ - $ 117,725,000 PROJECT FUNDING FINANCING SOURCES YEAR 1 FY YEAR 2 FY YEAR 3 FY YEAR 4 FY YEAR 5 FY PROJECT TOTAL Operating Revenue $ - $ - $ - $ - $ - $ - Reserves Grants/Loans 15,000,000 46,900,000 55,825, ,725,000 Bond Proceeds Development Fees Other ANNUAL TOTAL $ 15,000,000 $46,900,000 $55,825,000 $ - $ - $ 117,725, FISCAL YEAR BUDGET

237 YELLOW AND RED LANTANA Lantana As the Lantana s flowers mature they change color, creating inflorescences that are two or three toned. A native to tropical regions of the Americas and Africa, it is tolerant of many soil conditions and thrives in warm temperatures. ACCOMPLISHMENTS Accomplishments

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239 Accomplishments Infrastructure improvements represent a significant investment in maintaining a reliable system for the community served by East Valley Water District. Several capital improvement projects were completed in FY that focused on system improvements for both water and wastewater systems. Each project was completed under budget and include: Pumalo Casa Main Extension Project Details Project Budget $135,000 Actual Cost 138,048 City Creek Manhole Reinforcement Project Budget $255,000 Actual Cost 155,177 Fourth Street Wastewater Main Rehabilitation Project Budget $100,000 Actual Cost 66,780 Plant 134 Hydro-Electric Generation Facility Project Budget $4,000,000 Actual Cost 4,355,775 Completion Date May 2018 April 2018 April 2018 May FISCAL YEAR BUDGET

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241 Glossary WHITE ICEBERG ROSE Rosa Iceberg A hybrid between Robin Hood, Pemberton and Virgo, the Rosa Iceberg can grow 4-6 feet tall. Its fragrant flowers are usually present throughout the year. GLOSSARY

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243 GLOSSARY Definitions for technical terms and acronyms found in the budget document A Acre Foot (AF): A water measurement equal to 325,851 gallons. - pg. 43 AMI: Advanced Metering Infrastructure is the technology of collecting meter reads via a network. - pg. 123 AMR: Automatic Meter Reading is the technology of collecting meter reads via a handheld device within close proximity of the water meter AQMD or SCAQMD: Air Quality Management District or South Coast Air Quality Management District is the air pollution agency responsible for regulating stationary sources of air pollution in the South Coast Air Basin, in Southern California AWWA: American Water Works Association was established in 1881 and is the largest nonprofit, scientific, and educational association dedicated to managing and treating water. - pg. 87 C CAFR: Comprehensive Annual Financial Report is a set of U.S. government financial statements comprising of the financial report of a state, municipal, or other governmental entity that complies with the accounting requirements promulgated by the Governmental Accounting Standards Board. - pg. 125 Cal Fire: California Department of Forestry and Fire and Protection. - pg. 20 CalPERS: California Public Employees Retirement System is an agency in the California executive branch that manages pension and health benefits for more than 1.6 million California public employees, retirees, and their families. - pg. 31 CIP: Capital Improvement Program. - pg. 9 Closed Circuit TV (CCTV): A closed circuit TV is the use of video cameras to transmit a signal to a limited set of monitors. - pg. 199 COLA: Cost of Living Adjustment. - pg. 9 COSA: Cost of Service Analysis. - pg. 55 California Special Districts Association (CSDA): The California Special Districts Association is a 501c(6) not-for-profit association that promotes good governance and improved core local services through professional development, advocacy, and other services for independent special districts. CWEA: California Water Environment Association is a nonprofit public benefit corporation dedicated to the educational development and certification of wastewater professionals. - pg FISCAL YEAR BUDGET

244 D DWR: Department of Water Resources. - pg. 48 E EDU: An equivalent dwelling unit is defined by the Borough to be the measure of volume and strength of flow or expected flow of sanitary sewage equivalent to that generated by a single family residential establishment. Enterprise Fund: Revenues and expenditures of services are separated into separate funds with its own financial statements. - pg. 4 EVWD: East Valley Water District F Fees: Charges for service that are based upon the cost of providing the service. - pg. 27 FEMA: Federal Emergency Management Agency is a federal agency whose mission is to support citizens and first responders in their efforts to improve capabilities to prepare for, respond to, and recover from emergencies and hazards. - pg. 111 Fiscal Year (FY): The time frame in which the budget applies. This period is from July 1 through June pg. 5 FOG: Fats, oils, and grease. - pg. 167 Full-Time Employee (FTE): A measure of effective authorized positions, indicating the percentage of time a position or group of positions is funded. It is calculated by equating 2,080 hours of work per year with the full-time equivalent of one position; thus, one position would have an FTE of 1. - pg. 21 Fund: An independent fiscal and accounting entity with a self-balancing set of accounts recording cash and/or other resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives. - pg. 4 Fund Equity: The excess of an entity s assets over its liabilities; a negative Fund Equity is sometimes called a deficit. - pg. 53 G GAC: Granular Activated Carbon is a highly porous adsorbent material used during the water treatment process. It is used to remove tetrachloroethylene, also known as perchloroethylene (PCE). - pg. 171 GASB: Governmental Accounting Standards Board is a private, non-governmental organization who is the source of generally accepted accounting principles (GAAP) used by State and Local governments in the U.S. - pg. 31 GASB 68: A state or local government employer will report the Net Pension Liability associated with its defined benefit pension plan(s) that is administered through a trust or equivalent arrangement. - pg. 31 Generally Accepted Accounting Principles (GAAP): Uniform minimum standards of, and guidelines for external financial accounting and reporting. They govern the form and content of the basic financial statements of an entity. GAAP encompasses the conventions, rules and procedures necessary to define accepted accounting practices at a particular time. They include not only broad guidelines of general application, but also detailed practices and procedures. The primary authoritative statements on the application of GAAP to state and local governments are Government Accounting Standards Board (GASB) pronouncements. GAAP provides a standard by which to measure financial presentations. - pg. 31 Geographic Information System (GIS): An organized collection of computer hardware, software and geographic data designed to efficiently capture, store, update, manipulate, analyze, and display all forms of geographically referenced information. - pg. 46 GFOA: The Government Finance Officers Association represents public finance officials throughout the United States and Canada. - pg. 16 Global Positioning System (GPS): A global positioning system provides geolocation and time information to a GPS receiver. - pg. 129 H Hundred Cubic Feet (HCF): Water billing measurement equal to 748 gallons. - pg. 36 K KPI: A Key Performance Indicator monitors progress towards meeting program objectives. - pg FISCAL YEAR BUDGET

245 L LAIF: Local Agency Investment Fund is a program administered by the California State Treasurers office to give local agencies and special districts the opportunity to participate in a major portfolio using the investment expertise of the Treasurer's Office Investment staff. - pg. 48 Linear Feet (LF): A linear foot is a 12-inch measurement of length. - pg. 200 M MG: Million Gallon. - pg. 49 MGD: Million Gallons Per Day. - pg. 163 MOU: Memorandum of Understanding. - pg. 42 N NFWC: North Fork Water Company is a mutual water company that secures surface water from the Santa Ana River and other available sources for delivery to its shareholders. - pg. 43 NPO: Net Position Obligation. - pg. 42 R Revenue: Income generated by assessments, investments, connection fees, stand-by fees, and user charges. - pg. 4 Reserve: An account set aside to meet unexpected costs. - pg. 5 S SAR: Santa Ana River. - pg. 1 SBCUSD: San Bernardino City Unified School District. - pg. 19 SCADA: Supervisory Control and Data Acquisition generally refers to an industrial computer system that monitors and controls a process. - pg. 47 SCE: Southern California Edison. - pg. 153 Single Family Residential (SFR): A stand-alone residential building. - pg. 229 Sterling Natural Resource Center (SNRC): The District is planning and constructing a water recycling center called the Sterling Natural Resource Center. - pg. 19 SWRCB: State Water Resources Control Board. - pg. 42 T TTHM: Total Trihalomethanes is a disinfectant by product when chlorine used to treat water reacts with organic materials in the water. - pg. 9 V Valley District: San Bernardino Valley Municipal Water District was formed in 1954 as a regional agency to plan a long-range water supply for the San Bernardino Valley. - pg. 18 U UCMR: Unregulated Contaminant Monitoring Rule. - pg.168 W Wastewater Collection Sytem Master Plan (WCSMP): The District's Wastewater Collection System Master Plan outlines existing deficiencies and facility requirements to meet increasing demands. It provides a general assessment to creat a comprehensive CIP for the wastewater collection system. - pg. 153 Water System Master Plan (WSMP): The District's Water System Master Plan provides information on proposed CIP for the water system, including phasing of the necessary projects and capital requirements taking existing deficiencies and facility requirements to meet both current and future demand in consideration. - pg. 147 WBIC: Weather-Based Irrigation Controller systems are sprinkler control devices that automatically adjust irrigation schedules in response to changing weather or environmental conditions. - pg FISCAL YEAR BUDGET

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247 CHART OF ACCOUNTS SEA LAVENDER Limonium Perezii Often found in salt marshes and along coastal sand dunes, Limonium Perezii thrives in salty, windy, and sandy conditions. Its clusters of small purple flowers bloom in summer. In many areas, this plant is protected by federal, local or state laws. Chart of Accounts

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249 Chart of Accounts The Chart of Accounts is a complete listing of every account used in the accounting system. Additionally, each program budget detail has allocated District resources to a specific account that will be used throughout the current fiscal year. Below is a listing of the District s Chart of Accounts with a brief description of each account Regular Labor: Regular salaries and wages for permanent full-time and part-time employees Temporary Labor: Costs for labor not permanently employed by the District Overtime: Employees that work more than their regular 40 hours per week Standby: Employees that are on call for emergencies during non-business hours, weekends, and holidays Benefits: Medical, dental, vision, retirement, and related benefits offered by the District Purchased Water: Cost to purchase imported water Groundwater Replenishment: Cost to pump groundwater from the basin Water Assessment: Cost of water shares directly related to North Fork Materials & Supplies: Items used in daily operations, repair, and maintenance Tools: Items used to perform repair and maintenance activities Office Supplies: Items such as pens, paper, and other related desk accessories Chemicals: Used for the treatment of water and cleaning equipment and tools Conservation Rebates: Costs to reimburse customers for eligible conservation efforts Contract Services: Services rendered by consultants and contractors; software subscriptions and licensing Banking Services: Service fees charged by financial institutions, merchant banks, and payment processors Printing & Publishing: Costs for printing and producing District publications Legal Services: Costs for legal advice, consultation, contract review, and litigation Treatment Services: Outside treatment services for wastewater Rents & Leases: Rental and lease costs for buildings and equipment that are not owned by the District Uniforms: Costs for the purchase, rental and laundering of uniforms, and other sundries for employees Billing Services: Costs associated with printing and mailing customer utility bills Shut Off Notice Services: Costs associated with the printing and delivery of 48 Hour Notices; these costs are charged back to customers through a fee Street Services: Costs associated with street restoration after District performs repairs and maintenance to existing infrastructure Landscape Services: Costs to maintain landscape, sprinklers, and weed abatement throughout the District Janitorial Services: Costs to clean and maintain District facilities Facilities Repair: Tracking of minor repairs for District facilities Litigation Expense: Costs associated with legal proceedings, legal action, lawsuits, legal disputes, or legal cases Utilities: Cable, gas, and other utilities not including telephone and electricity Telephone: Land lines, cellular phones, and internet services Electricity: Electricity usage costs Fuel: Fuel costs for vehicles and generators Permits: Permit costs required by federal, state, and local regulatory agencies Postage: Costs for mailing bills, publications, and special deliveries Memberships & Dues: Subscriptions (not including software) and memberships for associations and special groups; award applications 247 FISCAL YEAR BUDGET

250 Professional Development: Seminars, conferences, and travel costs for employee development Education Assistance: Tuition reimbursement for employees who attend school for a degree or certificate Meetings: Costs such as meals, parking, and registration that are not related to professional development Employee Recognition: Employee recognition costs to recognize excellent performance throughout the year General Insurance: General liability insurance for the District s facilities and infrastructure development Insurance Claims: Cost of insurance claims paid during the fiscal year Cash Over/Short: Accounts for customer payment processing discrepancies Bad Debt: Account used to write off uncollectible customer unpaid water or wastewater charges Retiree Benefits: Other post-employment benefits reimbursed to District retirees 248 FISCAL YEAR BUDGET

251 Enhance & Preserve THE QUALITY OF LIFE FOR OURCommunity THROUGH INNOVATIVE LEADERSHIP &World Class PUBLIC SERVICE

252 Adopted June 27, 2018 DISTRICT BOARD MEETINGS Second and fourth Wednesday of each month District Headquarters Board Room, 5:30pm DISTRICT HEADQUARTERS Greenspot Road, Highland, CA (909)