38-431.02 ARIZONA MUNICIPAL WATER USERS ASSOCIATION … · Mr. Aarons and Ms. Ulmer discussed progress at the Legislature on the state budget. 4. Selection of Firm for Fiscal Year

Arizona Municipal Water Users Association

3003 North Central Avenue, Suite 1550, Phoenix, Arizona 85012 (602) 248-8482 amwua.org

Public Notice Pursuant to A.R.S. § 38-431.02

ARIZONA MUNICIPAL WATER USERS ASSOCIATION BOARD OF DIRECTORS

MEETING NOTICE AND AGENDA

Thursday, June 27, 2019 – 11:00 a.m.

Arizona Municipal Water Users Association Board Conference Room

3003 North Central Avenue, Suite 1550 Phoenix, Arizona 85012

A. Call to Order

B. General Business—Items for Discussion and Possible Action

1. Approval of the Minutes from the April 25, 2019 Meeting

2. Schedule Next Meeting Date: Thursday, August 29, 2019, 10:00 a.m. (note time change)

3. 2019 Legislative Session Recap

4. Agreements with University of Arizona for Smartscape Program and IGA with ADWR for Funding

5. AMWUA Quarterly Financial Statements – Third Quarter

6. Redirection of Funds in Fiscal Year 2019 Budget

7. AMWUA Fiscal Year 2020 Final Draft Budget

8. Temporary Transfer of Local Government Investment Pool Funds for AMWUA Operations

C. Executive Director’s Report

D. Future Agenda Items

E. Adjournment

After adjournment, a brief recognition of AMWUA’s 50th Anniversary will occur

*The order of the agenda may be altered or changed by the AMWUA Board of Directors. Members of the AMWUA Board of Directors will attend either in person or by telephone or internet conferencing. More information about AMWUA public meetings is available in the AMWUA office, online at www.amwua.org/what-we-do/public-meetings, or by request.

http://www.amwua.org/what-we-do/public-meetings

http://www.amwua.org/what-we-do/public-meetings

Arizona Municipal Water Users Association

3003 North Central Avenue, Suite 1550, Phoenix, Arizona 85012 (602) 248-8482 amwua.org

BOARD OF DIRECTORS

MEETING MINUTES April 25, 2019

VOTING MEMBERS PRESENT

Mayor Jim Lane, President, Scottsdale

Vice Mayor Eddie Cook, Vice President, Gilbert

Vice Mayor Lauren Kuby, Tempe

Councilmember Sheri Lauritano, Goodyear

Councilmember René Lopez, Chandler, via teleconference

Councilmember Curtis Nielson, Avondale

Councilmember Kevin Thompson, Mesa

Councilmember Bart Turner, Glendale

Councilwoman Thelda Williams, Phoenix, via teleconference

VOTING MEMBERS NOT PRESENT

Mayor Cathy Carlat, Secretary-Treasurer, Peoria

OTHERS PRESENT

Barry Aarons, The Aarons Co. Sam Jaskolski, AMWUA

Patrick J. Adams, AMWUA John Raeder, Goodyear

Erin Andres, Phoenix Javier Setovich, Goodyear

Ned Blum, CliftonLarsonAllen Richard Siegel, SRP

Eric Braun, Gilbert Tony Staffaroni, CAP

Gregg Capps, Chandler Warren Tenney, AMWUA

Alan Dulaney, Peoria Sheri Trapp, AMWUA

Gretchen Erwin, Goodyear Emily Webb, Avondale

Kathy Ferris, AMWUA Carol Ward, AMWUA

Brett Fleck, AMWUA Theresa Ulmer, Ulmer Consulting

Dave Iwanski, AZ Water

A. Call to Order

Mayor Lane called the meeting to order at 11:03 a.m.

AGENDA ITEM #1

April 25, 2019 – AMWUA Board of Directors Meeting Minutes

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B. General Business – Items for Discussion and Possible Action

1. Approval of the Minutes from the March 28, 2019 Meeting

Upon a motion by Councilmember Thompson and a second by Councilmember Lauritano, the AMWUA Board of Directors unanimously approved the March 28, 2019 meeting minutes.

2. Next meeting scheduled: Thursday, May 23, 2019, 11:00 a.m., in the AMWUA office

3. 2019 Legislative Session

Mr. Tenney stated that the majority of the water legislation AMWUA supported or opposed was dealt with in the first couple of months of this legislative session. He said approval of the Drought Contingency Plan (DCP) and the Arizona implementation plan have been the highlight of this session. He reported that earlier this month, Congress swiftly passed federal legislation associated with DCP and President Trump signed that legislation last week. Mr. Tenney noted that AMWUA is pleased that legislators continue to reach out to the Association with questions about water. Mr. Tenney reported that last month, the two strikers that the AMWUA Board of Directors supported, which would increase funding for both the Arizona Department of Water Resources (ADWR) and the superior court that oversees the general stream adjudication, were both approved in committee. He said those strikers are now on hold to see how they will fit into the budget discussion. Mr. Aarons and Ms. Ulmer discussed progress at the Legislature on the state budget.

4. Selection of Firm for Fiscal Year Audits

Mr. Tenney stated that every five to six years, AMWUA undertakes a request for proposals process to select a firm to perform the more extensive Sub-Regional Operating Group (SROG) audit as well as the AMWUA audit. He said AMWUA invited proposals from qualified certified public accountant firms and received three responses, which were evaluated by finance staffs from the five SROG cities. Mr. Tenney reported that the review team unanimously selected Heinfeld Meech & Co., P.C. He detailed that the audit contract will be a not-to-exceed cost of $30,000 with the option to renew for four subsequent years at a cost not-to-exceed $34,000 by Fiscal Year 2023. Mr. Tenney reported that at its April 10, 2019 meeting, the AMWUA Management Board unanimously recommended that the AMWUA Board of Directors approve the AMWUA Executive Director to issue an engagement letter with Heinfeld Meech & Co., P.C. for audit services for Fiscal Year 2019/20 at a cost not-to-exceed $30,000, with the option to renew for four subsequent years at a cost not-to-exceed $34,000 by Fiscal Year 2023.


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Councilmember Turner noted that Heinfeld Meech & Co., P.C. is the same firm that has been conducting the SROG and AMWUA audits for the last five years. He said the AMWUA Management Board’s recommendation should be considered but as a practice, it may be concerning to continue with the same firm. Councilmember Nielson agreed. Mayor Lane stated that these are valid concerns and noted that while the appropriate proposal process was taken, including the evaluation team’s participation and consideration, using the same audit firm may raise questions. He suggested reviewing the contract next year and potentially going out to bid again before the contract is renewed for subsequent years. Vice Mayor Kuby stated that she supports the recommendation and spoke to the weight of the SROG/AMWUA cities finance staffs’ evaluation of the proposals received and their unanimous decision. Mayor Lane appreciated Vice Mayor Kuby’s comment as well as the time and expertise put in by the evaluation committee. He also noted the optics of the situation and the Board’s responsibilities. Councilmember Turner stated that he would vote in support of the recommendation, but he would like to see something added to the next proposal process that includes how long the firm has been working with AMWUA. Mayor Lane agreed to adding another factor to the proposal that includes duration of continuing contracts with AMWUA. Upon a motion by Vice Mayor Kuby and a second by Councilmember Thompson, the AMWUA Board of Directors unanimously approved the AMWUA Executive Director to issue an engagement letter with Heinfeld Meech & Co., P.C. for audit services for Fiscal Year 2019/20 at a cost not-to-exceed $30,000, with the option to renew for four subsequent years at a cost not-to-exceed $34,000 by Fiscal Year 2023.

5. AMWUA Fiscal Year 2020 Preliminary Draft Budget

Mr. Tenney reported that AMWUA’s Fiscal Year 2020 preliminary draft budget shows an increase of $68,239 or 4.88% from the current budget. He noted that no carryover from Fiscal Year 2019 is anticipated, so membership dues will increase accordingly. He said the preliminary draft budget included in the meeting packet, along with the information summary, provide a detailed explanation for the line items that have either increased or decreased from the current fiscal year budget. Mr. Tenney stated that the preliminary draft Fiscal Year 2020 budget was presented to the AMWUA Management Board on April 10, 2019 and they did not have any feedback or comments on the budget. He said the final Fiscal Year 2020 budget will be presented


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to the AMWUA Management Board in May for consideration to recommend approval to the AMWUA Board of Directors.

Board members had no questions or comments.

6. IRS Form 990 for Fiscal Year 2018

Mayor Lane spoke to the importance and seriousness of the Internal Revenue Service (IRS) Form 990 and asked for a motion. Upon a motion by Councilwoman Williams and a second by Councilmember Nielson, the AMWUA Board of Directors unanimously accepted the draft IRS Form 990 as presented and authorized the AMWUA Executive Director to execute the final IRS Form 990 if no substantive changes from the presented draft.

C. Executive Director’s Report

Mr. Tenney reported that the Central Arizona Water Conservation District’s (CAWCD) Finance, Audit & Power (FAP) Committee met last week to review and discuss the Central Arizona Project (CAP) rates and taxes for 2020. He said the proposed rates are consistent with what had been projected for 2020. He stated that the FAP Committee agreed with CAWCD staff’s recommendation to designate 2.5 cents of taxes for federal repayment in 2020. He noted that in its comments, AMWUA encouraged the FAP Committee to have a discussion on how the federal debt repayment can be balanced between capital charges and taxes going forward. He said AMWUA feels the Committee members listened to AMWUA’s concerns, asked good questions to the Association, and had a positive discussion amongst themselves about repayment. He noted that the FAP Committee’s recommendation will be considered by the full CAWCD Board next week. Mr. Tenney reported that AMWUA launched the Spanish-language version of the Smart Home Water Guide website on Earth Day this week. He said the Smart Home Water Guide effort includes printed publications, websites, and marketing materials in English and Spanish, and thanked Ms. Ward for her work. He noted that the English version of this website garners more than 80,000 visitors a year. Mr. Tenney stated that Ms. Ward attended this month’s Chandler City Council meeting where Councilmember Lopez read a proclamation for Water Awareness Month and shared information about AMWUA in recognition of the Association’s 50th anniversary. Mr. Tenney reported that earlier this week, he gave a presentation to the Glendale City Council about AMWUA and its 50 years of experience. Mr. Tenney stated that the U.S. Bureau of Reclamation’s April 24-month study indicated that this year’s wet winter will help us avoid a Colorado River shortage in 2020. He said AMWUA


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is staying active in its communication endeavors to highlight its members’ efforts to prepare for shortages and draw attention to their conservation programs. Mayor Lane noted that CAP hosted a dinner for East Valley CAP customer/subcontractors that several AMWUA Board of Directors members attended, including himself, Vice Mayor Cook, Vice Mayor Kuby, and Councilmember Thompson. He said good questions were raised, including about DCP and winter snowpack. Vice Mayor Kuby noted that at the event, she commented that the cities have been focused on conservation and preparation for a long time and were not surprised or caught off-guard by potential Colorado River shortage as some other water users were.

D. Future Agenda Items

There were no requests for future agenda items.

E. Adjournment

Upon a motion by Councilmember Turner, a second by Councilmember Thompson, and unanimous approval, Mayor Lane adjourned the meeting at 11:35 a.m.

BOARD OF DIRECTORS

INFORMATION SUMMARY June 27, 2019

2019 Legislative Session Review ANNUAL PLAN REFERENCE Legislation Effectively advocate with one voice at the Legislature.

• Monitor, analyze and clarify state and federal legislation of interest to our members.

• Engage with Legislators to inform them about the issues important to AMWUA including identifying and working with legislators to champion water issues.

Strategic Plan: Objectives – Advocate for Solutions, Safeguard Water Supplies, Reinforce Groundwater Management, Prepare for Impacts of Drought & Shortage; Collaboration – Legislature, Arizona Department of Water Resources, Central Arizona Project, Salt River Project, Water Community, and Business Community

SUMMARY The 2019 legislative session adjourned on May 28, 2019. AMWUA accomplished its legislative agenda that the AMWUA Board had set last October. This included supporting the Drought Contingency Plan (DCP), passing legislation that removed the 2025 Sunset, and taking positions that sustained Arizona’s water management policies. SB 1227 accomplished two out of AMWUA’s three legislative objectives: providing support for the passage of DCP, and removal of the 2025 Sunset for earning long-term storage credits though effluent recharge. To achieve these goals, AMWUA worked closely with its members’ Intergovs to coordinate messaging and to compare notes in reaching out to Legislators. To accomplish our third goal to sustain Arizona’s water management policies, AMWUA was an active participant in the discussion of various water legislation. AMWUA supported various other bills that made positive strides in furthering sound water management within Arizona. These bills included HB 2464 which extended opportunities for larger municipalities to receive funding through the Water Infrastructure Finance Authority (WIFA); HB 2477 which removed provisions related to the General Stream Adjudication that the Arizona Supreme Court had found unconstitutional; and several appropriations bills for various water-related programs.

AGENDA ITEM #3

June 27, 2019 – AMWUA Board of Directors Meeting – Agenda Item #3

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AWMUA opposed legislation that weakened Arizona’s water management policies. AMWUA’s opposition to HB 2586 and HB 2609 contributed to those bills being held with the intent that stakeholders will debate the issues this summer raised by these bills. HB 2586 tried to place in statute criteria for an analysis of assured water supply in Pinal County and change the criteria for assured water supply determination. HB 2609 would have allowed deepening groundwater pumping from 1,000 feet below ground to 1,500 feet in the Harquahala INA and private water companies to withdraw and transfer groundwater from purchased land in the Harquahala INA. The opposition to both bills was due to the absence of the Arizona Department of Water Resources (ADWR) involvement in the formulation of the language as well as the lack of vetting in the water community before, not during, the legislative session. During the 2019 session, AMWUA pursued opportunities to build its relationship with legislators. AMWUA held a well-attended breakfast for legislators to recognize our 50th anniversary and to educate about our position on water issues. AMWUA staff gave an overview about water conservation at one of Senator Otondo’s weekly lunches focused on water. Throughout the session, AMWUA monitored introduced legislation and actively tracked over 30 water bills. AMWUA staff posted the status of the legislation that we followed on the website weekly. RECOMMENDATION The AMWUA Board of Directors is encouraged to discuss and ask questions regarding the 2019 legislative session.

AGENDA ITEM #4

BOARD OF DIRECTORS


Agreements with the University of Arizona for the Smartscape Program and IGA with ADWR for Funding ANNUAL PLAN REFERENCE Demand Management & Sustainability Continue to identify, develop, and promote policies, programs, research, and practices that assist our members to manage demand to enhance water resource supply reliability and sustainability.

• Expand promotion and visibility of existing and new AMWUA and member materials and programs, including the new Smartscape website and the AMWUA sites Landscape Plants for the Arizona Desert and Landscaping with Style in the Arizona Desert.

Strategic Plan: Objectives – Prepare for Impacts of Drought & Shortage, Augment Supplies, Interconnect Disciplines; Collaboration – Arizona Department of Water Resources, Salt River Project, Central Arizona Project, Water Community, Business Community

SUMMARY Smartscape is a comprehensive training program that instructs landscape professionals in the design, installation, irrigation, and maintenance of low-water-use landscapes. The need for efficient water use, the regulatory environment, methods of landscape water conservation, and the principles of Xeriscape are key components of the program. The program was developed collaboratively by AMWUA, Tucson Water, the University of Arizona Cooperative Extension, the Arizona Nursery Association, the Arizona Landscape Contractors Association, and industry representatives. AMWUA has coordinated and funded Smartscape in the Phoenix area since the program’s inception 25 years ago. It is one of AMWUA’s flagship programs and remains a high priority for AMWUA’s Conservation Committee. In the Phoenix area, 1,681 landscape professionals have completed the 20-hour Smartscape 101 workshop series, and more than 350 have participated in the 15-hour Smartscape Advanced Irrigation training course and supplemental educational opportunities. These professionals influence both commercial and residential outdoor water use through their practices and the information they transmit to their colleagues and customers daily. Smartscape supports AMWUA members in their efforts to increase water use efficiency, extending existing supplies, reducing future water demand, and preparing for potential shortage restrictions. The program is accepted as a best management practice (BMP) under the Modified Non-Per Capita Conservation Program, assisting the members to comply with the requirements of the Arizona Department of Water Resources (ADWR) Management Plan.


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Since 2009, AMWUA has contracted with the University of Arizona to administer the Smartscape program through the Maricopa County Cooperative Extension. The agreements have been for a period of two years to provide stability for the staff hired to coordinate the program. The current agreement expires on June 30, 2019. The contracts with the University have been funded at $120,000 for the two-year period, half through AMWUA’s Regional Conservation Program budget and half through an intergovernmental agreement with ADWR for funding from the Phoenix Active Management Area (PHX AMA) Water Management Assistance Program (WMAP). AMWUA staff anticipates the same level of WMAP funding, $60,000, will be recommended by the PHX AMA Groundwater Users Advisory Council (GUAC) and approved by the ADWR Director. Due to scheduling, however, the project will not be presented to the GUAC for consideration until July 2019, so the intergovernmental agreement (IGA) with ADWR will be completed in July or August FY20. To ensure staffing and programming are maintained, an initial agreement with the University secures full-time implementation of the program from July 1, 2019, through December 31, 2019. Funding for the initial six-month contract will be paid from the AMWUA FY19 Regional Conservation Program budget ($30,000). Once the intergovernmental agreement with the Department of Water Resources for WMAP funding is in place, a second agreement with the University of Arizona will cover program implementation for the period of January 1, 2020, to June 30, 2021. The 18-month contract will be funded from the FY20 Regional Conservation Program budget ($30,000), and the WMAP funds ($60,000). RECOMMENDATION AMWUA entering agreements with the University of Arizona and ADWR for the continuing implementation of the Smartscape Program was presented to the AMWUA Management Board at its May 8th meeting. The AMWUA Management Board recommends that the AMWUA Board of Directors approve the Executive Director’s ability to enter into the agreements with the University of Arizona and ADWR that are necessary to continue the Smartscape Program for the next two years. SUGGESTED MOTION I move to approve the Executive Director’s ability to enter into the six-month agreement between AMWUA and the University of Arizona for implementation of the Smartscape Program. I also move that once ADWR authorizes $60,000 in WMAP funds for the Smartscape Program that the Executive Director is able to enter into an intergovernmental agreement with ADWR for program funding and into the subsequent 18-month agreement with the University. ATTACHMENT

• Attachment A – Six-month agreement between AMWUA and the University of Arizona for implementation of the Smartscape program.

AGENDA ITEM #5

BOARD OF DIRECTORS INFORMATION SUMMARY

June 27, 2019

AMWUA Quarterly Financial Statements – Third Quarter ANNUAL PLAN REFERENCE Day-to-Day Operations Maintain the daily operations of an effective organization and services its members rely on.

• AMWUA will continue to wisely manage its financial resources and effectively develop its personnel as an agile team with organizational depth.

Strategic Plan: Operational Principles – Facilitate our Strength in Numbers, Excel as an Expert and Resource, Manage an Efficient and Effective Association

SUMMARY The AMWUA Statement of Revenues and Expenses for the period July 1, 2018 through March 31, 2019, and the Balance Sheet dated March 31, 2019 are presented for your information. The Statement of Revenue and Expenses shows overall $39,236 under budget through March 2019. The majority of the budget line items are either at or below the approved budget for this fiscal year. Most of the differences are due to the timing of the expenses in relation to the year-to-date totals and should even out by fiscal year end. AMWUA’s third quarter financial statements show that operating expenses are over budget by $50,750; however, this is offset by revenue, which is over budget by $89,986. The reason for this is the Water Conservation line item shows over budget due to the $50,000 Water—Use It Wisely campaign contribution, which is offset by the $50,000 ADWR reimbursement in revenue. There is also additional revenue due to reimbursements from conservation brochure reprint orders as well as from interest earned from the Local Government Investment Pool (LGIP). The Balance Sheet shows that AMWUA is in a good cash position and reflects the LGIP Account balance of approximately $832,229 that comprises the total of the Contingency and Reserve funds. The LGIP balance increases slightly from year to year due to interest earned.


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RECOMMENDATION The AMWUA quarterly financial statements were presented to the AMWUA Management Board at its May 8th meeting. The AMWUA Management Board recommends that the AMWUA Board of Directors accept the quarterly financial statements as presented. SUGGESTED MOTION I move to accept the AMWUA quarterly financial statements through March 2019 as presented. ATTACHMENTS

• Attachment A – Statement of Revenues and Expenses

• Attachment B – Balance Sheet

Attachment A

ARIZONA MUNICIPAL WATER USERS ASSOCIATION S

Over(Under) ApprovedYear-To-Date Year-To-Date Year-To-Date Annual

Actual Budget Variance Budget

1,183,510.00 1,183,510.00 0.00 1,183,510.00 215,505.00 215,505.00 0.00 215,505.00

0.00 0.00 14,435.71 0.00 14,435.71 0.00 75,550.30 0.00 75,550.30 0.00

1,489,001.01 1,399,016.00 89,986.01 1,399,015.00

459,845.52 460,536.75 (691.23) 614,049.00 53,005.64 55,699.50 (2,693.86) 74,266.00 44,466.80 43,275.00 1,191.80 57,700.00 56,995.19 58,500.00 (1,504.81) 78,000.00 4,435.00 4,275.00 160.00 5,700.00

0.00 0.00 0.00 0.00 45,000.00 45,000.00 0.00 60,000.00 35,624.97 35,625.00 (0.03) 47,500.00 9,500.00 9,500.00 0.00 9,500.00

21,900.00 21,900.00 0.00 21,900.00 841.45 841.45 0.00 5,000.00

20,000.00 20,000.00 0.00 40,000.00 24,000.03 24,000.00 0.03 32,000.00

0.00 0.00 0.00 2,500.00 3,600.00 3,750.00 (150.00) 5,000.00

133,956.52 130,650.00 3,306.52 174,200.00 3,991.50 3,375.00 616.50 4,500.00 4,098.89 4,875.00 (776.11) 6,500.00 4,305.15 4,305.15 0.00 4,400.00 5,824.61 5,824.61 0.00 9,000.00 2,037.32 2,250.00 (212.68) 3,000.00

0.00 0.00 0.00 1,000.00 195.00 195.00 0.00 1,500.00

3,747.52 3,900.00 (152.48) 5,200.00 7,082.84 6,000.00 1,082.84 6,000.00 3,077.55 5,250.00 (2,172.45) 7,000.00 2,884.77 2,884.77 0.00 5,000.00 2,190.18 2,190.18 0.00 15,000.00 1,308.70 1,725.00 (416.30) 2,300.00 1,238.34 1,500.00 (261.66) 2,000.00 1,108.48 1,108.48 0.00 1,300.00 1,255.28 1,255.28 0.00 2,000.00 2,252.00 2,252.00 0.00 4,000.00 1,110.00 1,110.00 0.00 2,000.00

143,423.53 90,000.00 53,423.53 90,000.00

Total Operating Expenses 1,104,302.78 1,053,553.17 50,749.61 1,399,015.00 Reserve and Contingency Funds Summary:

Contingency Fund Balance on 3/31/19 $600,000Reserve Fund Balance on 3/31/19 202,000 Total Contingency and Reserve Funds $802,000

ARIZONA MUNICIPAL WATER USERS ASSOCIATIONStatement of Revenues and Expenses

(Actual to Budget Comparison)For Period July 1, 2018 through Mar 31, 2019

Funding SourcesAssessment - WaterAssessment - Wastewater2017 Carryover Applied to Reduce Member AssessmentsInterest RevenuesOther Revenues

Net Revenues

Operating ExpensesPayroll (Salaries)Deferred Compensation (ASRS Payments)Payroll Processing, Taxes and InsuranceMedical and Disability InsuranceCell Phone AllowanceTemporary Services/ReceptionistLegal/Consulting Services (Ferris Contract)Legislative Services (Aarons Company-Contract)Audit - WaterAudit - Waste WaterWebsite Services Communication Services (Kossan Contract)Consultant-Finance/AccountingAudio/Visual DevelopmentIT ServicesOffice Space - LeaseCommon Area MaintenanceTelephoneE-Mail/Webpage/InternetTravel/ConferencesMilage ReimbursementContinuing Professional EdStaff DevelopmentCopy Machine - LeaseComputer Hardware/SoftwareOffice SuppliesMeetingsOutreach EffortsPrintingPostage & DeliveriesSubscription & ReferenceDues & MembershipsInsuranceEquipment MaintenanceWater Conservation

Attachment B

Current Assets 1000 Petty Cash 500.00

1015 Compass Checking 25 287 52333 49,360.04

1025 Compass Money Market 25 100 20769 430,176.91

1030 Investment Account (LGIP) 832,229.42

Total Bank Accounts $ 1,312,266.37

Accounts Receivable 1041 Other Receivables 2,500.50

Total Accounts Receivable 2,500.50$

Other Current Assets 1050 Prepaid Expenses 17,246.50

Total Other Current Assets 17,246.50$

Total Current Assets 1,332,013.37$

Fixed Assets 1100 Furniture & Equipment 170,292.25

1150 Leasehold Improvements 52,665.08

1200 Accum Depreciation Furniture -163,629.23

1250 Accum Depreciation Leasehold -50,706.68

Total Fixed Assets 8,621.42$

Other Assets 1450 Deferred Outflow - Pension Resources 184,285.23

Total Other Assets 184,285.23$

TOTAL ASSETS 1,524,920.02$

ASSETS

Arizona Municipal Water Users AssociationBalance SheetAs of March 31, 2019

Attachment BArizona Municipal Water Users Association

Balance SheetAs of March 31, 2019

Liabilities Current Liabilities Credit Cards 2005 BBVA Compass Credit Card 2,717.81

Total Credit Cards 2,717.81$

Other Current Liabilities 2010 FICA Withheld and Accrued 0.00

2050 Accrued Expenses 110,149.96

2110 Retirees Excess Benefit Clearance 3,177.18

Total Other Current Liabilities 113,327.14$

Total Current Liabilities 116,044.95$

Long-Term Liabilities 2200 Deferred Revenues 53,392.77

2210 Net Pension Liability 937,799.00

2220 Deferred Inflow-Pension Resources 111,186.00

Total Long-Term Liabilities 1,102,377.77$

Total Liabilities 1,218,422.72$

Equity 3000 Fund Balance -78,263.42

Opening Balance Equity 0.00

Net Income 384,760.72

Total Equity 306,497.30$

TOTAL LIABILITIES AND EQUITY 1,524,920.02$

LIABILITIES AND EQUITY

AGENDA ITEM #6


June 27, 2019

Redirection of Funds in the Fiscal Year 2019 Budget ANNUAL PLAN REFERENCE Day-to-Day Operations Maintain the daily operations of an effective organization and services its members rely on.



SUMMARY Two unplanned expenses have been identified as the end of the Fiscal Year 2019 approaches. The first expense is $4,500 for the 2018 reconciliation of building operating expenses. The building operating cost is what we pay in addition to our monthly office lease payment. Through the year, AMWUA pays an estimated monthly amount to cover our contribution to the operating expenses. After the end of the calendar year, those costs are reconciled. Last month, AMWUA staff met with the Property Manager and was informed that the increased building operating expenses in 2018 were due to a rise in property taxes (which they are challenging), repair and maintenance, HVAC costs and overall inflation on all the expenses. The higher building operating cost is factored into the Fiscal Year 2020 budget; however, the $4,500 reconciliation will need to be paid from the current fiscal year budget. Second, AMWUA staff recommends replacing the projector in the Board room. The current projector is eight years old and no longer displays a visually correct picture. We requested quotes from local companies and are considering the best option for new visual equipment that will display the information properly. The cost for the equipment, parts and installation is not anticipated to be over $7,500. These two expenses total $12,000. Funds exist in the current budget because we do not anticipate utilizing all of the monies set aside for Outreach Efforts, Audio/Visual Development, and Conferences/Travel.


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RECOMMENDATION AMWUA staff recommends that the Board consider approving the use of funds in the Fiscal Year 2019 budget to cover the calendar year 2018 reconciliation for building operating expenses and to purchase new visual equipment for the Board room. SUGGESTED MOTION I move to approve the use of remaining funds in the Fiscal Year 2019 budget to cover the calendar year 2018 reconciliation for building operating expenses and to purchase new visual equipment for the Board room.

BOARD OF DIRECTORS


AMWUA Fiscal Year 2020 Final Draft Budget ANNUAL PLAN REFERENCE Day-to-Day Operations Maintain the daily operations of an effective organization and services its members rely on.



SUMMARY Attached is the final draft of the AMWUA Fiscal Year 2020 annual budget, which includes a summary page with comments to explain increases or decreases to particular line items. Development of the Fiscal Year 2020 budget was guided by AMWUA’s Strategic Plan and the Annual Action Plan for Fiscal Year 2020, which was approved last month. This budget allows AMWUA to continue to be a forum for its members to collaborate on water issues; to develop and advocate positions that safeguard our water resources; to promote key water policy issues; and to be at the forefront of demand management and water conservation efforts. The preliminary draft budget was presented in April to both the AMWUA Board of Directors and AMWUA Management Board. The final draft budget is $400 less than the preliminary budget. We had anticipated a lower reduction after the audit selection was less than originally projected in the preliminary budget. However, this anticipated reduction evaporated when we were notified of a significant increase to the Building Operating Costs. These issues are addressed in the report. This final draft budget shows an increase of $67,838 (4.85%) from the approved Fiscal Year 2019 budget. The following summarizes the budget categories and provides explanation for line items that have an increase or decrease from last year’s budget. Administration – This includes salaries and Arizona State Retirement System (ASRS) contributions, reflecting an increase of $92,738. What AMWUA is able to accomplish is directly linked to its staff and their time and effort to perform. The increase under Administration is primarily due to the following:

AGENDA ITEM #7


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• The full-time Communications Specialist position was added in January 2019 to expand and improve AMWUA’s communication efforts. This position replaces the part-time communications services contractor.

• The Programs Manager position upgrades the Programs Assistant position to reflect the expanding duties being accomplished particularly with the Regional Conservation Program. The salary also reflects the performance for meeting the increasing responsibilities.

• Staff who are not new to their position received a 3% performance award half-way through the Fiscal Year 2019, which is now reflected for the 12 months of the preliminary Fiscal Year 2020 budget.

• Performance Awards – An up-to 3% performance award for each full-time employee, except the Executive Director, is recommended for employees who excel in their performance. The awards would occur half-way through Fiscal Year 2020. The Executive Director’s compensation is adjusted based on the AMWUA Board of Directors’ review.

Employee Benefits – This includes payroll processing, taxes, various insurances, and cell phone allowances. The main changes include:

• Payroll Processing, Taxes, Insurance – The $3,300 increase is due to salary increases and the addition of the Communications Specialist position.

• Health Insurance – The $9,000 increase is due to increases from calendar year 2019 and projected increases for next calendar year. While the actual health costs for Fiscal Year 2018 are below budget, costs did increase in January 2019 by 10% that will carry forward into Fiscal Year 2020. Additionally, AMWUA’s insurance broker is projecting a 12% increase for calendar year 2020.

• Cell Phone Allowance – The $1,000 increase is due to the addition of the Communications Specialist position.

Professional Services – This includes outside services that AMWUA utilizes throughout the year. The budget reflects a decrease of $36,900 from last year. The main changes include:

• Communication – A contract for communication services is no longer needed with the full-time Communications Specialist position in place. This is a reduction of $40,000.

• Audit – With the AMWUA Board’s approval to select an auditor, the amount is $4,000 less than the preliminary budget and $400 less than the current budget.

Occupancy – These items are related to the leasing of office and meeting space for AMWUA and reflect a $5,600 increase.

• Office Space – The $4,800 increase for office space should have been reflected in last year’s budget to properly reflect the annual amount for the last few years under the office lease.

• Building Operating Costs – This line item is for AMWUA’s proportionate share of building common area maintenance costs and is non-negotiable. Since the preliminary budget was presented last month, the building management notified us that the Building Operating Costs are expected to nearly double due to increases of their various operating expenses.

• Telecommunications – This line item decrease by $1,700 is to reflect only telephone services and discontinuing of individual staff cell phone coverage.


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• Email/Webpage/Internet Access – This line item increase by $1,600 is due primarily to upgrading the annual Microsoft Office 365 software services.

Training and Travel – This category covers items involved with staff participating in conferences, workshops, and training along with the related travel expenses.

• Mileage Reimbursement – The $250 increase is due to the addition of the Communications Specialist position.

• Continuing Professional Education – This line item is currently not needed because staff do not require continuing education to maintain a professional license or status.

• Staff Development – The $500 decrease is due to anticipated actuals in Fiscal Year 2020. Capital Outlay – This category covers AMWUA’s primary capital property such as the copier and computer hardware and software. This has been reduced by $250 to closer reflect expenses anticipated in Fiscal Year 2020. Office Operating Expenses – These items cover AMWUA’s day-to-day office operating expenses. More than half of these line items remain the same.

• Supplies - The $500 reduction in supplies matches anticipated actuals.

• Outreach Efforts – This $5,000 reduction is since the full-time Communications Specialist will cover outreach efforts but still have funds to assist with outreach.

• Dues & Membership – This line item was adjusted and reduced by $250 to better match actuals.

• Insurance – The $100 increase is to match anticipated actuals for public liability and property damage insurance.

Water Conservation – This category remains at $90,000. One-third of the amount is committed to the contract with the University of Arizona for ongoing implementation of the Smartscape program in Maricopa County. The Smartscape program, a long-standing effort, provides training to landscape professionals in the proper design, installation, and maintenance of low-water-use landscape. ADWR provides matching funding for the program in the Phoenix Active Management Area (AMA). $14,500 is designated for sponsorships, events, and memberships that AMWUA supports. These include membership with Alliance for Water Efficiency, contribution to the Water—Use It Wisely campaign, support for the annual WaterSmart Innovation Conference & Expo, and sponsorships for the SHADE and Desert Horticulture conferences. The remaining $45,500 is to support and maintain various other Regional Conservation Program projects and efforts identified by the Conservation Committee. Members Assessments – The draft Fiscal Year 2020 budget is $67,838 (4.85%) more than the approved Fiscal Year 2019 budget. No carryover is anticipated from the Fiscal Year 2019 budget. Therefore, the entire proposed increase will be reflected in the total assessments to members.


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The proposed increase falls within the range of past budget increases approved by AMWUA’s Board of Directors over the last twenty years. This year’s increase is primarily due to bringing the communication position in-house and increasing it to full time. The other main increase drivers are health care costs, compensation increases to reflect a more experienced staff, and contractual office lease. It is anticipated that future budgets will see modest increases to ensure that AMWUA can continue to accomplish its mission. Since 2000, AMWUA’s Board has approved budgets between $1.220 million and $1.528 million. When adjusted for inflation (CPI-U index), the draft Fiscal Year 2020 budget is $398,000 lower than it was in 2000. The membership assessment is calculated as follows: One-half of the proposed water budget is allocated equally among all members and the other half is allocated based on total population. The population figures are taken from the Maricopa Association of Governments July 1, 2018 official population estimates. The wastewater portion of the budget continues to be allocated based on percentage of ownership of the 91st Avenue Wastewater Treatment Plant. RECOMMENDATION The AMWUA Fiscal Year 2020 final draft budget was presented to the AMWUA Management Board at its May 8th meeting. The AMWUA Management Board recommends that the AMWUA Board of Directors adopt the Fiscal Year 2020 Final Draft budget. SUGGESTED MOTION I move to adopt the AMWUA Fiscal Year 2020 Final Draft budget. ATTACHMENT

• AMWUA Fiscal Year 2020 Final Draft Budget

Final Draft Budget

Fiscal Year 2020

June 27, 2019

ARIZONA MUNICIPAL WATER USERS ASSOCIATIONFiscal Year 2020

Final Draft Budget

ASSESSMENT SUMMARY

WATER WATER WASTEWATER WASTEWATER TOTAL TOTAL FY 19 FY 20 FY 19 FY 20 FY 19 FY 20

CITY OF AVONDALE 72,736 76,908 72,736 76,908

CITY OF CHANDLER 102,032 108,009 102,032 108,009

TOWN OF GILBERT 100,117 106,402 100,117 106,402

CITY OF GLENDALE 99,026 104,465 13,910 13,853 112,936 118,318

CITY OF GOODYEAR 72,707 77,263 72,707 77,263

CITY OF MESA 139,136 147,225 30,792 30,665 169,928 177,890

CITY OF PEORIA 87,682 93,091 87,682 93,091

CITY OF PHOENIX 321,556 339,114 118,870 118,378 440,426 457,493

CITY OF SCOTTSDALE 99,472 105,084 21,340 21,251 120,811 126,335

CITY OF TEMPE 89,047 94,680 30,592 30,466 119,639 125,146

Total from Members 1,183,510 1,252,240 215,505 214,613 1,399,015 1,466,853

Other Funding Sources:

TOTAL All Sources 1,183,510 1,252,240 215,505 214,613 1,399,015 1,466,853

Note #1. The Assessment Structure is based on the following formula: 50% of the water portion of the budget is allocated equally with the remaining 50% based on population according to the MAG 2018 official population estimates.Note #2. Wastewater Assessments based on ownership in 91st Avenue Wastewater Treatment Plant @ 204.50 MGD.


Final Draft Budget

EXPENDITURE SUMMARY

2

WATER WATER WASTEWATER WASTEWATER TOTAL TOTAL FY 19 FY 20 FY 19 FY 20 FY 19 FY 20

ADMINISTRATION 583,947 674,506 104,368 106,547 688,315 781,053

EMPLOYEE BENEFITS 120,827 134,512 20,573 20,188 141,400 154,700

PROFESSIONAL SERVICES 194,342 153,718 29,058 28,782 223,400 182,500

OCCUPANCY 135,854 147,243 53,746 52,207 189,600 199,450

TRAVEL,TRAINING & CONFER. 12,325 11,262 2,175 1,988 14,500 13,250

CAPITAL OUTLAY 9,501 9,455 1,699 1,495 11,200 10,950

OFFICE OPERATING EXPENSES 36,714 31,544 3,886 3,406 40,600 34,950

WATER CONSERVATION 90,000 90,000 90,000 90,000

TOTAL 1,183,510 1,252,240 215,505 214,613 1,399,015 1,466,853


Final Draft Budget

BUDGET COMMENTS

3

BUDGET BUDGET ESTIMATED BUDGETTOTAL TOTAL ACTUAL TOTALFY 18 FY 19 FY 19 FY 20

ADMINISTRATIONSalaries 595,298 607,441 619,725 686,889 8 full-time positions and 1 part-time position - Increase due to new Communication Specialist position,

adjusting Programs Asst to Manager, and performance awards effective 1/1/2019

Performance Awards 4,845 6,608 9,845 Up to 3% possible performance award for full-time employees after performance evaluation

Total Compensation 600,143 614,049 619,725 696,734

Deferred Compensation:

Arizona State Retirement 71,905 74,266 72,300 84,319 Increase due to proposed performance awards

Subtotal 672,048 688,315 692,025 781,053

EMPLOYEE BENEFITSPayroll Processing,Taxes, Insur 56,000 57,700 55,625 61,000 Increase due to salary increases and addition of Communications Specialist position

Medical, Dental, Life, Disability 69,000 78,000 75,589 87,000 Increase due to raise in health insurance costs and projected 12% increase in 2020

Cell Phone Allowance 3,120 5,700 6,100 6,700 Increase and budget exceedance due to addition of Comunications Specialist position

Subtotal 128,120 141,400 137,314 154,700

PROFESSIONAL SERVICESWebsite Services 5,000 5,000 5,000 No change

Audio/Visual Development 2,500 2,500 2,000 Reduction because of assistance from Communication Specialist

IT Services 5,000 5,000 4,800 5,000 No change

Communication 40,000 40,000 20,000 Replaced with full-time position under Administration

Legal/Policy Consulting 60,000 60,000 60,000 60,000 No change

Legislative 42,000 47,500 47,500 47,500 No change

Financial and Accounting Service 28,000 32,000 32,000 32,000 No change

Audit 30,400 31,400 31,400 31,000 Per recently approved audit agreement

Subtotal 212,900 223,400 195,700 182,500

OCCUPANCYOffice Space 174,200 174,200 178,631 179,000 Increase to be consistent with office lease.

Building Operating Costs 3,500 4,500 9,644 9,650 Increase in AMWUA's proportionate share of building common area maintenance costs

Telephone 9,000 6,500 4,800 4,800 Decrease due only related to phone services and no longer providing cell phones

E-Mail/Webpage/Internet Access 4,200 4,400 5,900 6,000 Increase due to upgraded annual Mircrosoft Outlook email service

Subtotal 190,900 189,600 198,975 199,450

COMMENTS


Final Draft Budget

BUDGET COMMENTS

4

BUDGET BUDGET ESTIMATED BUDGETTOTAL TOTAL ACTUAL TOTALFY 18 FY 19 FY 19 FY 20

TRAINING AND TRAVELConferences/Travel 9,000 9,000 9,000 9,000 No ChangeMileage Reimbursement 3,000 3,000 3,000 3,250 Increase due to Communication Specialist travelContinuing Professional Ed 1,000 1,000 Funding not needed for professional license or creditsStaff Development 1,500 1,500 195 1,000 Reduction to match anticipated actuals

Subtotal 14,500 14,500 12,195 13,250

CAPITAL OUTLAYCopy Machine Expenses 5,200 5,200 5,337 5,200 No ChangeComputer/Equipment/Software 6,000 6,000 6,000 5,750 Anticipated expenses for FY20

Subtotal 11,200 11,200 11,337 10,950

OFFICE OPERATING EXPENSESSupplies 7,000 7,000 7,000 6,500 Reduction to match anticipated actualsMeetings 5,000 5,000 5,000 5,000 No Change Outreach Efforts 5,000 15,000 5,000 10,000 Decrease to match anticipated efforts coordinated with Communications SpecialistPrinting 2,300 2,300 2,300 2,300 No ChangePostage & Deliveries 2,000 2,000 2,000 2,000 No ChangeSubscription & Reference 1,300 1,300 1,300 1,300 No ChangeDues & Memberships 2,000 2,000 2,000 1,750 Reduction to match anticipated actualsInsurance-Public Liability 4,000 4,000 4,000 4,100 Increase to match anticipated actuals and Property Damage Equipment Maintenance 2,000 2,000 2,000 2,000 No Change

Subtotal 30,600 40,600 30,600 34,950

WATER CONSERVATIONSmartscape with Cooperative Ext. 30,000 Funding for Cooperative Extension to coordinate the Smartscape program in Maricopa County.Sponsorship, Events & Memberships 14,500 Funding for sponsorships, event and memberships Projects and Messaging 45,500 Funding for identified Regional Conservation Committee efforts

Subtotal 90,000 90,000 90,000 90,000 No Change

Total Operating Expenses 1,350,268 1,399,015 1,368,146 1,466,853

FUNDING SOURCES2017 Carryover applied to 2018 assessments 13,871

Carryover applied to members assessments

Member Assessments 1,336,397 1,399,015 1,336,397 1,466,853

Total Funding 1,350,268 1,399,015 1,336,397 1,466,853

COMMENTS

ARIZONA MUNICIPAL WATER USERS ASSOCIATION Fiscal Year 2020

Final Draft Budget

EXPENDITURES DETAIL

5

FY 19 FY 19 FY 20 FY 19 FY 19 FY 20 FY 19 FY 19 FY 20BUDGET ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET ACTUAL BUDGETWATER WATER WATER WASTEWATER WASTEWATER WASTEWATER TOTAL TOTAL TOTAL

ADMINISTRATIONSalaries 515,288 496,944 524,762 92,153 88,782 93,127 607,441 619,725 686,889

Performance Awards 6,205 9,845 403 6,608 9,845

Total Wages 521,493 496,944 534,607 92,556 88,782 93,127 614,049 619,725 696,734

Deferred Compensation:

Arizona State Retirement 62,454 60,800 72,279 11,812 11,500 12,040 74,266 72,300 84,319

Subtotal 583,947 557,744 606,886 104,368 100,282 105,167 688,315 692,025 781,053

EMPLOYEE BENEFITSPayroll Processing,Taxes, Insur 48,952 44,831 52,679 8,748 10,794 8,321 57,700 55,625 61,000

Medical, Dental, Life, Disability 66,175 60,921 75,133 11,825 14,668 11,867 78,000 75,589 87,000

Cell Phone Allowance 5,700 4,916 6,700 1,184 5,700 6,100 6,700

Subtotal 120,827 110,668 134,512 20,573 26,646 20,188 141,400 137,314 154,700

PROFESSIONAL SERVICESTemporary Services/Receptionist -0-

Website Services 5,000 5,000 5,000 5,000

Audio/Visual Development 2,500 2,000 2,500 2,000

IT Services 4,242 3,840 4,318 758 960 682 5,000 4,800 5,000

Communication 40,000 20,000 40,000 20,000

Legal/Policy Consulting 60,000 60,000 60,000 60,000 60,000 60,000

Legislative 47,500 47,500 47,500 47,500 47,500 47,500

Financial and Accounting Services 25,600 25,600 25,600 6,400 6,400 6,400 32,000 32,000 32,000

Audit 9,500 8,200 9,300 21,900 23,200 21,700 31,400 31,400 31,000

Subtotal 194,342 165,140 153,718 29,058 30,560 28,782 223,400 195,700 182,500

OCCUPANCYOffice Space 122,791 143,969 129,584 51,409 34,662 49,416 174,200 178,631 179,000

Building Operating Costs 3,817 7,772 8,333 683 1,872 1,317 4,500 9,644 9,650

Telecommunications 5,514 3,868 4,145 986 932 655 6,500 4,800 4,800

E-Mail/Webpage/Internet Access 3,732 4,755 5,181 668 1,145 819 4,400 5,900 6,000

Subtotal 135,854 160,364 147,243 53,746 38,611 52,207 189,600 198,975 199,450


Final Draft Budget

EXPENDITURES DETAIL

6

FY 19 FY 19 FY 20 FY 19 FY 19 FY 20 FY 19 FY 19 FY 20BUDGET ACTUAL BUDGET BUDGET ACTUAL BUDGET BUDGET ACTUAL BUDGETWATER WATER WATER WASTEWATER WASTEWATERWASTEWATER TOTAL TOTAL TOTAL

TRAINING AND TRAVELConferences/Travel 7,650 8,550 7,650 1,350 450 1,350 9,000 9,000 9,000

Milage Reimbursement 2,550 2,850 2,762 450 150 488 3,000 3,000 3,250

Continuing Professional Ed 850 150 1,000

Staff Development 1,275 185 850 225 10 150 1,500 195 1,000

Subtotal 12,325 11,585 11,262 2,175 610 1,988 14,500 12,195 13,250

CAPITAL OUTLAYCopy Machine Expenses 4,411 3,202 4,490 789 2,135 710 5,200 5,337 5,200

5,090 3,000 4,965 910 3,000 785 6,000 6,000 5,750

Subtotal 9,501 6,202 9,455 1,699 5,135 1,495 11,200 11,337 10,950

OFFICE OPERATING EXPENSESSupplies 5,938 5,641 5,613 1,062 1,359 887 7,000 7,000 6,500

Meetings 4,242 4,029 4,318 758 971 682 5,000 5,000 5,000

Outreach Efforts 15,000 4,029 10,000 971 15,000 5,000 10,000

Printing 1,951 1,853 1,986 349 447 314 2,300 2,300 2,300

Postage & Deliveries 1,696 1,611 1,727 304 389 273 2,000 2,000 2,000

Subscription & Reference 1,102 1,047 1,122 198 253 178 1,300 1,300 1,300

Dues & Memberships 1,696 1,611 1,511 304 389 239 2,000 2,000 1,750

Insurance 3,393 3,223 3,540 607 777 560 4,000 4,000 4,100

Equipment Maintenance 1,696 1,611 1,727 304 389 273 2,000 2,000 2,000

Subtotal 36,714 24,655 31,544 3,886 5,945 3,406 40,600 30,600 34,950

WATER CONSERVATIONSmartscape with Cooperative Ext. 30,000 30,000 30,000 30,000

Sponsorship, Events & Memberships 30,000 14,500 30,000 14,500

Projects and Messaging 30,000 45,500 30,000 45,500

Subtotal 90,000 90,000 90,000 90,000

Total Operating Expenses 1,183,510 1,036,358 1,252,240 215,505 207,789 214,613 1,399,015 1,368,146 1,466,853

FUNDING SOURCES 2017 Carryover

Member Assessments 1,183,510 1,114,309 1,252,240 215,505 222,088 214,613 1,399,015 1,336,397 1,466,853

Total Funding 1,183,510 1,114,309 1,252,240 215,505 222,088 214,613 1,399,015 1,336,397 1,466,853

AGENDA ITEM #8


June 27, 2019

Temporary Transfer of Local Government Investment Pool Funds for AMWUA Operations ANNUAL PLAN REFERENCE Day-to-Day Operations Maintain the daily operations of an effective organization and services its members rely on.



SUMMARY At the end of each fiscal year, AMWUA distributes invoices to the AMWUA members for their share of the AMWUA dues assessments for the next fiscal year. The payments are usually received by AMWUA during the first few months of the new fiscal year; however, in order to ensure sufficient cash flow, it has sometimes been necessary in the past to transfer funds from the Contingency Fund to AMWUA’s Money Market account while awaiting those payments. Once payments are received and the Money Market account is at adequate operating levels, the funds are transferred back to Contingency Fund. The AMWUA Contingency Fund and Reserve Fund Policy states that monies in the Contingency fund shall be held with the State Treasurer in the Local Government Investment Pool (LGIP), and such monies shall be used only as approved by the AMWUA Board of Directors for unanticipated emergency or extraordinary expenses. Last year’s audit findings recommended that all AMWUA Reserve Fund and Contingency Fund monies in the LGIP are not to be moved, even if it is a temporary move, unless the Board provides approval to move them to another account. Depending on when member assessments are received, a transfer of funds from the Contingency Fund to the Money Market account may be necessary to cover operational cash flow needs.


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RECOMMENDATION The AMWUA Executive Director recommends that the AMWUA Board approve the authorization through September 2019 to transfer up to $300,000, if needed, from the Contingency Fund to AMWUA’s Money Market account in order to cover operational cash flow needs with the understanding that the funds will be returned to the Contingency Fund once all of the AMWUA member assessments are received. SUGGESTED MOTION I move that the AMWUA Executive Director be authorized through September 2019 to transfer up to $300,000, if needed, from the Contingency Fund to AMWUA’s Money Market account to cover operational cash flow needs with the understanding that the funds will be returned to the Contingency Fund once all of the AMWUA member assessments are received.

Documents

38-431.02 ARIZONA MUNICIPAL WATER USERS ASSOCIATION … · Mr. Aarons and Ms. Ulmer discussed progress at the Legislature on the state budget. 4. Selection of Firm for Fiscal Year