East Valley Water District (EVWD) Board of Directors approved the 2019-20 budget of $39.2 million on June 26, representing a 3 percent increase in projected expenses and 4 percent increase in revenues over last year’s budget.
According to the budget report submitted by Chief Financial Officer Brian Tompkins, the implementation of the final phase of tier rate adjustments, slightly more aggressive revenue projects and increased interest income account for the budget increases.
Projected expenses are approximately $29.9 million while projected revenue is $39.2 million.
The budget projects revenue of $15.9 million (about 40 percent) from water sales, $8.98 million (about 23 percent) from meter charges, $8.66 million (about 22 percent) from wastewater treatment and $4.648 million (about 12 percent) from wastewater collection. About 97 percent of the district’s revenue comes from user rates and fees.
The budget includes a water budget of $25.635 million and a wastewater budget of $13.565 million.
A total of $1.528 million has been budgeted for replacement of aging vehicles and equipment in the upcoming year.
A capital improvement budget of $63.73 million has been earmarked by the district for projects focused on water quality, system maintenance and water supply. The largest of these projects, $60 million, is the Sterling Natural Resource Center wastewater recycling plant. The capital improvement projects budget is fully funded utilizing $3.325 million from operating revenue, $60 million from grants and loans and $405,000 from unrestricted reserves, according to the budget report.
The phase 3 tiered rate adjustments approved earlier this year are scheduled to go in effect on Jan. 1 and will increase sales revenues by approximately $350,000.
EVWD serves more than 102,000 people in a 30.1 square mile area with water and sewer services. An average of 16.6 million gallons of water is produced daily and about 6 million gallons of sewage is conveyed daily through 300 miles of water main and 214 miles of sewer main.