ORSANCO Fiscal Year 2021 July 1, 2020 June 30, 2021 Budget - - PowerPoint PPT Presentation

ORSANCO

Fiscal Year 2021

July 1, 2020 – June 30, 2021

Budget Presentation

April 29, 2020

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Opening Remarks by Committee Chairman Duritsa

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April 29, 2020 Agenda

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 Call to Order – 9:00AM EDT  Opening remarks by Committee Chairman Duritsa  Review recommendations and actions from April 2019 Committee meeting  Review the recommendations and status  Key considerations & comments by Executive Director Harrison  Budget message  What is new and different this year  Overview of budget including challenges, carry-over and anticipated resources & expenditures  Key Take-Aways  Coronavirus Pandemic Program Impacts  Proposed Programs for FY21  Present brief overview of proposed program activities focusing on incremental reductions and additions  Brief Reports

• Administrative & Public Information Programs
• Pension Overview
• Water Quality Monitoring Programs
• Biological Programs
• Source Water Protection/ODS

 Proposed Financial Budget for FY21  Present overview of Capital Budget  Present overview of proposed FY21 financial budget  Present five-year revenue and expense forecast for fiscal years 21-25 BREAK for 10 minutes at or around 10:30  State Support for FY23  Review state funding and develop recommendation for state funding in FY23  Strategic Planning  Discuss status of update to 2008 Strategic Plan and schedule potential face to face meeting  Committee Recommendations  Summarize Committee recommendations and specific actions  Discuss any remaining issues  Adjourn – by 12:00 PM

What Will Be Presented Today

 Opening Remarks

• Review recommendations and actions from April 2019 Committee meeting
• Key considerations & comments by Executive Director Harrison
• Coronavirus Pandemic Program Impacts
• Proposed Programs for FY21
• Proposed Financial Budget for FY21
• State Support for FY23
• Strategic Planning
• Committee Recommendations
• Adjourn – by 12:00 PM

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Status of April 2019 Program & Finance Committee Recommendations

• Recommend adoption of the FY20 program plan and balanced budget as presented
• Budget adopted at June 2019 Commission meeting
• Recommend adoption of a 0% state funding increase for fiscal year 2022
• Adopted by the Commission. Information sent to the states
• Recommend setting FY20 Defined Contribution Plan voluntary contribution at 5% of compensation
• Adopted by Commission
• Four employees eligible for contribution
• Recommend revisiting the Commission’s Strategic Plan
• Review initiated under pervue of Program & Finance Committee
• Roundtable discussions conducted
• Feedback surveys of Commissioners, staff and advisory committees completed or underway
• Work will continue to summarize survey results
• Further consideration at April 29, 2020 Program & Finance Committee meeting
• Proposed date of completion moved from June to October 2020

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What Will Be Presented Today

 Opening Remarks  Review recommendations and actions from April 2019 Committee meeting

• Key considerations & comments by Executive Director Harrison
• Coronavirus Pandemic Program Impacts
• Proposed Programs for FY21
• Proposed Financial Budget for FY21
• State Support for FY23
• Strategic Planning
• Committee Recommendations
• Adjourn – by 12:00 PM

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7 Fiscal Year Budgeted Expenditures Payroll Labor Benefits Labor and Benefits Number of Fulltime Equivalent Staff 2021 $3,614,548 $1,234,586 $697,498 $1,932,084 19 2020 $3,448,832 $1,202,847 $707,828 $1,910,675 19 2019 $3,445,934 $1,191,820 $712,510 $1,904,330 19 2018 $3,296,934 $1,185,640 $673,424 $1,858,664 19 2017 $3,557,778 $1,211,773 $735,765 $1,947,538 19 2016 $3,437,547 $1,219,953 $700,893 $1,920,846 20 2015 $3,651,997 $1,184,166 $632,228 $1,816,394 20 2014 $3,786,378 $1,156,180 $595,831 $1,752,011 20 2013 $3,927,658 $1,184,861 $579,737 $1,764,598 21 2012 $4,332,044 $1,243,420 $537,086 $1,780,506 21 2011 $3,536,354 $1,306,828 $513,195 $1,820,023 21 2010 $3,965,148 $1,341,392 $486,863 $1,828,255 22 2009 $4,236,851 $1,350,539 $460,496 $1,811,035 24 2008 $4,198,857 $1,337,599 $443,799 $1,781,398 24 2007 $3,673,895 $1,250,274 $419,040 $1,669,314 25 2006 $3,493,430 $1,301,111 $373,460 $1,674,571 25 2005 $3,794,971 $1,341,186 $403,638 $1,744,824 27 2004 $4,408,897 $1,319,899 $412,083 $1,731,982 30 2003 $5,083,854 $1,267,835 $310,897 $1,578,732 28 2002 $3,406,559 $1,171,525 $328,202 $1,499,727 29 Budgeted Program Expenditures Fiscal Years 2002 - 2021

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Budgeted Program Revenues and Resources Fiscal Years 2002 - 2021

Fiscal Year Total Revenues EPA 106 Grant Funding Other EPA Funding Total EPA Funding State Funding Other Funding Budgeted Carry Over Start of FY 2021 $3,448,732 $1,332,000 $240,875 $1,572,875 $1,439,700 $436,157 $2,445,449 2020 $3,653,064 $1,354,000 $410,785 $1,764,785 $1,439,700 $448,579 $2,188,504 2019 $3,608,997 $1,354,000 $371,200 $1,505,000 $1,439,700 $444,097 $2,030,308 2018 $3,206,113 $1,379,000 $126,000 $1,505,000 $1,418,400 $282,713 $2,136,517 2017 $3,386,702 $1,379,000 $146,976 $1,525,976 $1,404,400 $456,326 $2,052,398 2016 $3,316,331 $1,379,000 $190,206 $1,569,206 $1,390,400 $356,725 $1,405,135 2015 $3,622,297 $1,379,000 $465,443 $1,844,443 $1,376,600 $401,254 $1,460,341 2014 $3,786,378 $1,379,000 $556,393 $1,935,393 $1,363,000 $461,463 $1,332,339 2013 $3,854,232 $1,341,000 $512,168 $1,853,168 $1,363,000 $638,064 $1,170,933 2012 $4,274,027 $1,415,700 $896,871 $2,312,571 $1,363,000 $598,456 $1,176,500 2011 $3,372,885 $1,417,900 $215,326 $1,633,226 $1,363,000 $376,659 $1,217,448 2010 $3,591,175 $1,293,386 $771,025 $2,064,411 $1,363,000 $163,764 $1,554,817 2009 $3,672,508 $1,293,386 $960,066 $2,253,452 $1,363,500 $55,556 $1,275,273 2008 $3,772,149 $1,293,386 $1,096,263 $2,389,649 $1,310,800 $71,700 $797,150 2007 $3,661,939 $1,223,100 $924,650 $2,147,750 $1,260,100 $254,088 $782,943 2006 $3,581,422 $1,223,100 $935,222 $2,158,322 $1,260,100 $163,000 $512,060 2005 $3,813,215 $1,134,323 $1,231,792 $2,366,115 $1,260,100 $187,000 $1,231,645 2004 $4,436,859 $1,056,397 $1,779,493 $2,835,890 $1,260,100 $340,869 $1,364,740 2003 $4,970,278 $1,178,600 $1,657,346 $2,835,946 $1,260,600 $873,732 $1,203,821 2002 $3,328,826 $1,188,000 $590,193 $1,778,193 $1,211,300 $339,333 $757,841

Key Considerations & Comments

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Budget Message

• Presenting a cost effective FY21 Budget
• Maintained utilization of Incremental Reductions developed from previous years
• Held off converting a contract employee to an ORSANCO employee due to Coronavirus uncertainties
• No NRSA budgeted
• Slight increase in revenue largely from 604b/205j Federal Grant funds through IDEM, OEPA, WV DEP and

utilization of remaining USEPA Multi Purpose Grant

• Projected contributions from Ohio River drinking water utilities of $180k for source water protection
• Projected increase in unencumbered carryover funds of $37,391 into FY22
• FY 2021 – FY 2025 Moderate Revenue and Expenditure Forecast
• Utilized additional incremental reductions and revenue increases to develop Five Year Budget Forecast

that does not reduce net unencumbered resources (FY2021-FY2025)

• Assumed 0% state funding level increase in FY 2021-2023 and 1% in FY24-FY25
• Continued concept of using funding ($3,310,875) from NRSA, 604b/205j, SRF and utility funding to offset

the need for more significant incremental reductions for FY22-FY25

• Five Year 2021 – FY 2025 Carryover Resources
• FY 2025 unencumbered resources projected to increase by $6,661 to $1,179,925 going into FY26
• Restricted reserves maintained at $600,000
• Capital Equipment resources reduced from $498,414 to $142,000 due to the proposed replacement of two

ODS stations in FY2021 and FY2023 utilizing funds reserved for these purchases.

• Encumbered Project resources related to USGS Stream Gauge equipment and River Users funds

maintained at $173,771

Key Considerations & Comments

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• What is new and different this year
• Impacts of Coronavirus Pandemic – Real and potential monitoring & travel expense reductions
• Added $30K to $50K in new revenue assumptions related to Wastewater Utility contributions for Contact

Recreation Program in FY2022 through FY2025

• Overview of budget
• Anticipated new revenue sources will help offset expense challenges through the Five Year budget
• NRSA, 604b/205j and Source Water Protection funding is anticipated to be significant
• Proposed FY21 budget is anticipated to generate net revenue to be used in future years
• Key Take Aways
• The P&F Committee has provided strategic direction to empower staff to generate and implement

prioritized cost reductions and revenue enhancement strategies to address financial challenges and pursue program opportunities

• Significant increase in unencumbered resources going into FY2021 due to excellent FY2020 budget year
• FY21 Budget utilizes a combination of prioritized expense reductions and new revenue

sources to generate a significant net income

• Source Water Protection continues to be a key strategic initiative for the Commission
• The Five-Year Revenue and Expenditure Forecast has been a valuable tool for strategic planning to address

longer term funding challenges

• We project we will need additional resources beyond FY2025 because we have maximized incremental

reductions and incremental funding streams.

• Our program focused strategic plan update in FY2021 is timely

What Will Be Presented Today

 Opening Remarks  Review recommendations and actions from April 2019 Committee meeting  Key considerations & comments by Executive Director Harrison

• Coronavirus Pandemic Program Impacts
• Proposed Programs for FY21
• Proposed Financial Budget for FY21
• State Support for FY23
• Strategic Planning
• Committee Recommendations
• Adjourn – by 12:00 PM

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Coronavirus Pandemic Program Impacts Estimation of real & potential impacts

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Coronavirus Pandemic Program Impacts

Administration

• April 2020 Program & Finance Committee meeting - $3,500
• June 2020 Commission meeting - $28,000 (TBD May 1st)

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Coronavirus Pandemic Program Impacts

Source Water Protection Programs

ODS (125)

• 1. Postponed – 3 preventative maintenance visits
• 2. Postponed – 3 training visits
• 3. Postponed – 5 repair visits

Total combined cost: $2,900 (excludes parts that would have been identified through repair visits) Contact Recreation (129)

• 1. Cancelled – All April bacteria sampling has been cancelled ($3,500)
• 2. Presumed cancelled – All May bacteria sampling ($3,500)

Total combined cost: $7,000 IN HAB Project

• 1. Cancelled – March - 1 of 2 rounds of maintenance/sampling was cancelled ($700)
• 2. Cancelled – April – All routine sampling and maintenance has been cancelled; however, a special

trip to recover the Newburgh unit will be completed ($1,300)

• 3. Postponed – May – All routine sampling and maintenance has been postponed; however, a

special trip to redeploy the Newburgh unit will be completed ($1,300) The May servicing is listed as postponed rather than cancelled as these trips could be completed in June if travel restrictions were lifted. Total cost reduction: $2,000 Cancelled; $1,300 Postponed Source Water Protection (140)

• 1. Cancelled – AWWA Sustainable Water Management Conference ($1,500)
• 2. Postponed – Upper Ohio River SWP meeting ($500)

Total cost reduction: $1,500 Cancelled; $500 Postponed Emergency Response Preparedness (152)

• 1. Cancelled – Clean Waterways Conference ($850)
• 2. Cancelled – USEPA/USCG Regional Response Team Meeting ($850)
• 3. Postponed – Cincinnati Area Focus Group Meeting ($250)
• 4. Postponed – Marietta Area Focus Group Meeting ($450)

Total cost reduction: $1,700 Cancelled; $750 Postponed Combined totals: $12,200 Cancelled; $5,400 Postponed (This includes activities/expenses affected as of April 10, 2020. ODS expenses will likely increase if sites experience operational issues through the end of May.)

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Co Coronavir irus Pandemic ic Program Im Impacts

Bio/ io/Bimonthly Programs

Program Travel Supplies Lab or Contractual Total Per Event Total CY20 Event

Clean Metals n/a $100 $15,479 $15,579 $62,316 Per month of sampling Bimonthly $1,374 $100 $5,598 $6,972 $28,288 Per month of sampling Macros $5,765 $500 $10,627 $16,892 $63,986 Per Pool and/or full suite of fixed station sampling Fish Tissue $1,412 $375 $11,130 $12,917 $21,692 Detail is for lost Spring runs, total is for whole program Fish Population $4,000 $1,000* $2,035 $7,035 $33,862 Per Pool and/or full suite of fixed station sampling Seasonal Biologists n/a n/a $11,674 $11,674 $64,205 Per month of employment Bio Assessment $1,260 n/a n/a $1,260 $13,792 Cancelled or format changed meetings , in-person training Aquarium $3,500 $250 $240 $3,990 $9,450 Detail is for canceled Spring events Overall $297,591 Total unused if field activities are suspended through Nov.

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What Will Be Presented Today

 Opening Remarks  Review recommendations and actions from April 2019 Committee meeting  Key considerations & comments by Executive Director Harrison  Coronavirus Pandemic Program Impacts

• Proposed Programs for FY21
• Proposed Financial Budget for FY21
• State Support for FY23
• Strategic Planning
• Committee Recommendations
• Adjourn – by 12:00 PM

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Proposed FY21 Programs

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Program Categories

• Administrative/Public Information Programs
• Technical Programs
• Water Quality
• Biological
• Source Water Protection

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Admin inis istrative Programs

• Facilities
• Repairs & Maintenance
• Service Contracts
• Utilities
• Program Development
• Commission & Tech Meetings
• Program Development Meetings (State Agencies & US EPA)
• Standing and Special Committee Meetings
• Administrative Support
• Employee Benefits
• Office Supplies/Equipment
• Insurance
• Data Processing Hardware/Software
• Legal/Auditor Fees
• Community Relations
• Legislative Process
• Societies & Memberships
• Committee Activities
• Advisory Committee Meeting Expenses

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Administrative Programs Hig ighlights

• Facilities (9): Budget Neutral
• Additional venting for garage and lab to remain compliant
• Upgrading some 25 year old plumbing and fixtures
• Program Development (10): Budget Neutral
• Commission meetings in Wheeling, Cincinnati, and Pittsburgh
• Support Activities (11): Budget Neutral
• Pension payment based on actuarial recommendation
• Legal fees for required Pension Plan restatement
• Community Relations (12):Budget Neutral
• Committee Activities (13): Budget Neutral

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FY21 In Indirect Cost Rate

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Facilities, $99,658 Program Development, $177,445 Support Activities, $648,702 Community Relations, $30,660 Committee Activities, $13,774 Building Depreciation, $38,092 Total Proposed Indirect Cost Pool: $1,008,331 Proposed FY21 Indirect Cost Rate: 114.17% FY20 Indirect Cost Rate: 115.17%

Pool of all indirect costs allocated to programs based on direct salaries. Approved by US Department of the Interior. Rate applied to grants to recapture indirect costs.

Public lic In Informatio ion Programs

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Activ ivity Overview

• Public Presentations
• Produce Annual Report
• Coordinate Sweep Program
• Coordinate Media Relations
• Develop Press Releases
• Collaborate with State Agency PI Staffs
• Manage Website Content
• Manage Social Media
• Produce Newsletters & Informational Publications
• Manage Distribution Lists
• Facilitate Comment & Public Hearing Process

Budget Neutral Across All Public Information Programs

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Pension Plan Overview

July 1, 2019 Actuarial Valuation

• The Plan “soft frozen” to continue accruals but closed to new

entrants after July 1, 2017

• 11 retirees & 7 past employees with vested pension status

and 14 active participants

• FY19 benefit payouts was $325,999
• ORANCO’s Plan funded status is 69.68% up 4.15%
• ORSANCO’s discount rate of 7.5% utilized for valuation
• ORSANCO uses 20 years to amortize its unfunded liability
• ORSANCO’s unfunded liability is estimated to be $1,841,536

down $253,873

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Actuarial Market Market Valuation Recommended Actual Value Value of Funded Unfunded Date Contribution Contribution Difference ROI % Assets Ratio Liability 7/1/2001 119,302 71,000 48,302

• 5.1%

1,784,911 1.42 144,416 7/1/2002 180,192 78,193 101,999

• 5.2%

1,657,597 1.23 468,954 7/1/2003 209,153 79,000 130,153 5.5% 1,726,083 1.18 649,729 7/1/2004 167,176 100,000 67,176 11.5% 1,886,590 1.13 609,531 7/1/2005 193,568 179,000 14,568 5.4% 2,032,158 1.04 771,198 7/1/2006 197,920 100,000 97,920 5.4% 2,114,452 0.99 850,641 7/1/2007 206,852 125,000 81,852 14.0% 2,377,304 1.01 829,515 7/1/2008 267,960 125,000 142,960

• 0.60%

2,363,202 0.895 1,193,043 7/1/2009 367,771 150,000 217,771

• 15.8%

1,871,335 0.693 1,828,515 7/1/2010 368,821 175,000 193,821 10.3% 2,236,030 0.704 1,844,045 7/1/2011 316,009 200,000 116,009 18.4% 2,676,083 0.783 1,506,165 7/1/2012 377,391 250,000 127,391 3.8% 2,799,625 0.668 2,105,103 7/1/2013 378,326 250,000 128,326 9.0% 3,085,633 0.699 2,086,087 7/1/2014 295,766 300,000 (4,234) 12.7% 3,479,075 0.791 1,593,915 7/1/2015 338,570 300,000 38,570 2.5% 3,612,810 0.651 1,939,738 7/1/2016 291,650 338,570 (46,920) 0.8% 3,616,007 0.622 2,197,157 7/1/2017 290,325 291,650 (1,325) 6.7% 3,877,659 0.635 2,231,082 7/1/2018 281,592 290,325 (8,733) 5.4% 3,982,976 0.6553 2,095,409 7/1/2019 254,715 254,715

• 7.6%

4,231,796 0.6968 1,841,536 Total 5,103,059 3,657,453 1,445,606 7/1/20 To be Determined by 7/1/20 Actuarial Valuation Report Pension Summary Data

Pension Plan Overview

• FY21 proposed contribution - $254,715

– Actuarially recommended contribution – Decrease of $26,877 from FY20

• Positive ROI
• Mortality table adjustment
• Defined Contribution Plan

– Staff employed after July 1, 2017 – FY21 contribution for four entrants approximately $9,500

 Committee recommendation needed setting the FY21 Defined Contribution Plan voluntary contribution at 5% of compensation

• RFP Process Conducted for Investment Management

– Four proposals considered – Remaining with PNC on a trail basis

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Pension Plan Overview

Status Update

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Fiscal Year Summary Performance

July 1, 2019 through March 31, 2020

Beginning Portfolio Value July 1, 2019 $3,941,485.40 Total Portfolio Return

• 6.36%

Total Portfolio Return Net of Fees

• 6.77%

Blended 50/50 Benchmark Return

• 4.03%

Ending Portfolio Value March 31, 2020 $3,722,614.87 Total Earnings

• $267,123.09

Note:  Partial month data through April 17, 2020 indicated an increase of $190,249  However, April continues to remain very volatile as will the next few months

Pension Plan Overview Pension Committee Activity

• Pension Committee conducted April 22, 2020 Call
• Committee is looking at recommending an update to Plan

Assumptions at the Commission’s June, 2020 meeting

• Committee looking at moving towards a 60/40 equity to

bond split

• Committee not recommending any increased funding to plan

beyond actuarial recommended amount at this time

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Technical Programs

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Technical Program Overall Highlights

Biological Programs Water Quality Monitoring & Assessment Programs Source Water Protection Programs

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Biological Programs

• Finished NRSA last year

– 2 year monitoring program repeated every 5 years. – Have done biological monitoring in 2 pools for the last 2 field seasons. – This field season back to monitoring 3 biological pools. – Large income producing program. – Possibility that future monitoring be spread over 5 yrs (EPA decision).

• Fish Tissue

– Increased sampling to make up for less sampling during prior two years of NRSA.

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Monitoring and Assessment Programs

• Evaluation of the Bimonthly/clean metals monitoring

programs.

– Used for 305b and trends. – Can the baselinet be improved while still meeting key program needs and not significantly increasing budget. – Can we be more efficient while meeting our information needs.

• Completion of overall monitoring strategy & begin a

similar assessment of our other monitoring programs.

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• 305b – Development of an assessment methodology for

HABs.

• Trends assessments – FY 22 Bacteria; FY22-23

Bimonthly/metals; FY 23-24 Fish Tissue.

• Standards – No budget for PCS Development but adding

task under PCS Administration to stay abreast of developments pertaining to water quality criteria.

• Continue to review permits.
• Mercury – wrapping up project. There are spin-off

studies that could be done with the project data ie. methylization analysis.

• PFAS Survey – Currently contemplating a Fall 2020 start,

however we are holding for results of USGS QA study and sampling methodology for EDI sample collection method.

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Monitoring and Assessment Programs (Continued)

Source Water Protection

• Options for replacing ODS units per the

replacement strategy.

• Continue operating the HABs continuous

monitoring network.

• Continue to participate in Contaminant Source

Inventory Project.

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Biological Programs

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Core Bio/Bimonthly Programs

Program FY18 FY20 FY21 FY20/ FY21 Diff Reason

Clean Metals $100,852 $94,372 $94,372 $0 Decreased supplies offset increased analytical costs Bimonthly $34,681 $43,030 $41,385

• $1,195 Reflects actual analytical costs vs mid-RFP FY20 estimates

Macros $40,742 $45,104 $63,986 $18,882 Added analytical/travel of 3rd pool Fish Tissue $27,683 $21,583 $26,963 $5,380 Added analytical/travel to fill data gaps exacerbated by NRSA involvement Fish Population $98,333 $102,354 $105,267 $2,913 Added FY20 contractual costs offset by paired abiotic water samples & 3rd pool Bio Assessment $11,050 $16,499 $16,398

• $101 Update per diem estimates

Aquarium $12,700 $10,221 $13,856 $3,635 Returned to more typical event load post NRSA involvement, new tires Overall $326,111 $333,612 $362,676 $29,514 Overall increased due to a reincorporation of a 3rd pool 36

FY21 5yr Monitoring Assumptions

• Bimonthly/Clean Metals

– No major changes to number or frequency of samples

• Pending the results of MPG (update to monitoring strategy and bimonthly evaluation)
• Biological Core Programs

– Pools Surveys – 3 per year, except during portion of NRSA years – Calculated costs of adding FT parameters (dioxins, PFAS/PFOA) and development of mussel index/sampling plan

• Shown but not included in 5yr
• Aquarium

– Scheduled maintenance and some body/paint work – No outside sponsorship

• NRSA

– Two potential scenarios

• Funding similar to 2018-2019 – between FY22 and FY24
• Annual funding beginning in FY22 through FY27

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Program Category FY21 FY22 FY23 FY24 FY25

Clean Metals Supplies $1,500 $1,530 $1,561 $1,592 $1,624 Lab Fees $92,872 $92,872 $102,159 $112,375 $123,613 Travel $8,590 $8,702 $8,815 $8,929 $9,045 Bimonthly Supplies $1,200 $1,224 $1,248 $1,273 $1,299 Lab Fees $32,045 $32,045 $41,725 $41,725 $43,811 Core Programs $136,207 $136,373 $155,508 $165,895 $179,392

Bimonthly & Clean Metals Programs

Multipurpose Grant 38

Program Category FY21 FY22 FY23 FY24 FY25

Fish Pop Travel $21,624 $21,905 $22,190 $22,478 $22,771 Supplies $11,200 $10,000 $10,200 $10,404 $10,612 Lab Fees $8,140 $8,140 $8,547 $8,547 $8,547 Contractual $64,205 $64,205 $70,626 $70,626 $70,626 Macros Travel $15,240 $15,438 $15,639 $15,842 $16,048 Supplies $2,410 $1,500 $1,530 $1,561 $1,592 Lab Fees $42,510 $41,725 $41,725 $41,725 $43,811 Fish Tissue Travel $3,240 $3,282 $3,325 $3,368 $3,412 Supplies $750 $765 $780 $796 $812 Lab Fees $21,600 $22,680 $23,814 $25,005 $26,255 PFOS $5,670 $5,954 $6,251 $6,564 Dioxins $9,450 $9,923 $10,419 $10,940 Mussels Contractual $100,000 $100,000 $100,000 $100,000 $100,000 Core Programs $190,919 $189,640 $198,375 $200,351 $204,485 Potential Additions $100,000 $115,120 $115,876 $116,670 $117,503

Biological Monitoring Programs

NRSA NRSA

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Program Category FY21 FY22 FY23 FY24 FY25 FY26 FY27 Total

Sites (Pools) 25 (2) 50 (2) 25 (2)

Personnel $49,774 $69,969 $26,813 Travel $26,240 $46,740 $21,968 NRSA 1.0 Supplies $5,950 $5,950 $4,450

(2yr & 100 Sites)Contractual

$43,010 $99,113 $57,907 Cost $124,974 $221,772 $111,138 $457,885 Income $160,000 $320,000 $160,000 $640,000 Benefit $84,800 $168,197 $75,675 $328,671

National Aquatic Resource Survey

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Program Category FY21 FY22 FY23 FY24 FY25 FY26 FY27 Total

Sites (Pools) 25 (3) 50 (2) 25 (2)

Personnel $49,774 $69,969 $26,813 Travel $26,240 $46,740 $21,968 NRSA 1.0 Supplies $5,950 $5,950 $4,450

(2yr & 100 Sites)Contractual

$43,010 $99,113 $57,907 Cost $124,974 $221,772 $111,138 $457,885 Income $160,000 $320,000 $160,000 $640,000 Benefit $84,800 $168,197 $75,675 $328,671

Sites (Pools) 10 (3) 30 (2) 30 (2) 30 (2) 20 (3) 10 (3)

Personnel $18,751 $41,184 $41,184 $41,184 $30,362 $15,859 Travel $15,542 $28,738 $28,738 $28,738 $20,538 $8,200 NRSA 2.0 Supplies $2,500 $5,950 $4,450 $5,950 $3,700 $2,500

(5yr & 130 Sites)Contractual

$41,430 $99,113 $99,113 $99,113 $99,113 $49,780 Cost $78,223 $174,985 $173,485 $174,985 $153,713 $76,338 $831,730 Income $64,000 $192,000 $192,000 $192,000 $128,000 $64,000 $832,000 Benefit $4,528 $58,199 $59,699 $58,199 $4,649 $3,520 $188,794

National Aquatic Resource Survey

$138,78 3 $327,57 7 $8,479 $337,15

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Mobile Aquarium

Program Category FY21 FY22 FY23 FY24 FY25

Aquarium Travel $9,226 $9,346 $9,467 $9,591 $9,715 Contractual $750 $750 $750 $750 $750 Consumables $500 $473 $473 $473 $473 Lighting $110 $110 Plumbing $600 Tires $2,200 $2,200 Brakes $450 $473 $496 $521 $547 Axles $400 Metalwork $1,750 $1,750 Paint $5,000 Totals $14,876 $13,301 $16,186 $12,044 $13,685 ORSANCO Staff and PIACO have discussed seeking sponsorship to offset maintenance costs and increase educational events – Recommendation to Pursue?

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Source Water Protection Programs

43

Programs Overview

Source Water Protection Programs FY20 FY21 Source Water Assessment & Protection $189,255 $214,208 ODS $464,083 $468,996 Algae/Nutrients/HABs $ 82,647 $ 53,904 Spills $ 87,462 $ 86,673 Emergency Response Prep $ 72,585 $ 61,491 TOTAL Source Water Programs $896,032 $ 885,272

44

Programs Overview

45

Special Projects FY20 FY21 Harmful Algal Blooms (HABs) IN 205j Grant $150,000 $150,000 PFAS – WQ Monitoring WV 604b Grant $ 81,604 $ 0 OH 604b Grant $ 52,009 $ 52,000 106 – Supplemental $ 72,300 $ 57,895 PFAS – State Funded $ 15,882 $ 53,904 TOTAL Special Projects $371,795 $313,799

Program Notes

• 1. ODS

– Maintenance contract with Terra Tech ($80,000) – Instrument replacement ($178,000)

• 2. Indiana HAB Project(205j Grant)

– FY20 $150K – Deployed 2 additional continuous monitoring stations (Markland, Newburgh) – FY21 $150K – Extend project period plus add Aquarius software – FY22 $146K – Extend project period

46

Program Notes (continued)

• 3. PFAS

– FY20

• WV 604b Grant – Prep work (training, equipment)
• OH 604b Grant – Prep work (QAPP, SOPs,

Communications Plan)

• 106 Supplemental – Prep + 1st round of sampling time

– FY21

• OH 604b – 1st round sampling (travel, supplies, time)
• 106 Supplemental – 2nd round of sampling

47

What Will Be Presented Today

 Opening Remarks  Review recommendations and actions from April 2019 Committee meeting  Key considerations & comments by Executive Director Harrison  Coronavirus Pandemic Program Impacts  Proposed Programs for FY21

• Proposed Financial Budget for FY21
• State Support for FY23
• Strategic Planning
• Committee Recommendations
• Adjourn – by 12:00 PM

48

Proposed FY21 Financial Budget

49

50

Ohio River Valley Water Sanitation Commission Total Proposed FY 2021 Budget

Total Total Total Indirect Total ORSANCO Special Capital Direct Expense Total 106 Grant WPCP Projects Equipment Expenditures Allocation Expenditures EXPENDITURES Payroll $513,856 $279,650 $89,652 $0 $883,158 $351,429 $1,234,586 Employee Benefits $290,311 $157,993 $50,650 $0 $498,953 $198,545 $697,498 Staff Travel $84,718 $52,847 $31,699 $0 $169,263 $22,938 $192,201 Commission Travel $0 $0 $0 $0 $0 $100,275 $100,275

• Adv. Comm. Travel

$6,303 $0 $0 $0 $6,303 $13,774 $20,077 Supplies $12,575 $92,465 $77,587 $0 $182,627 $103,366 $285,993 Telephone $684 $780 $0 $0 $1,464 $11,693 $13,157 Equipment Purchases $0 $0 $0 $248,207 $248,207 $0 $248,207 Mort., Utilities, & Maintenance $0 $0 $0 ($38,092) ($38,092) $59,092 $21,000 Equipment Repairs and Maintenance $11,200 $0 $0 $0 $11,200 $61,672 $72,872 Printing and Reproduction $0 $1,500 $4,450 $0 $5,950 $3,950 $9,900 Lab Fees and Delivery $208,989 $5,148 $16,778 $0 $230,915 $0 $230,915 Contractual Services $72,292 $138,456 $195,520 $0 $406,268 $81,598 $487,866 SUB-TOTAL - DIRECT EXPENSES $1,200,927 $728,839 $466,335 $210,115 $2,606,217 $1,008,331 $3,614,548 Indirect Expenses Allocation $586,687 $319,286 $102,358 $0 $1,008,331 Total program Cost $1,787,614 $1,048,126 $568,694 $210,115 $3,614,548 FUNDING SOURCES Restricted Unencumbered Total Reserve Resources Resources Restricted Operating Reserve $0 $0 $0 $0 $600,000 $0 $600,000 Capital Equipment $0 $0 $0 $498,414 $0 $498,414 Encumbered Special Project Resources $0 $0 $173,771 $0 $0 $0 $173,771 Unencumbered Resources $0 $0 $0 $0 $0 $1,173,264 $1,173,264 Other Program Funding $0 $0 $436,157 $0 $0 $0 $436,157 Misc Income $0 $0 $0 $0 $0 $0 $0 Interest Income $0 $0 $0 $25,000 $0 $0 $25,000 Fines & Settlements $0 $0 $0 $0 $0 $0 $0 USEPA $1,332,000 $0 $240,875 $0 $0 $0 $1,572,875 State Funding Transfer $455,614 $868,126 $71,662 $6,908 $0 $37,391 $1,439,700 River Users Funding Transfers $0 $0 $0 $0 $0 $0 $0 Other Program Funding Transfers $0 $180,000 ($180,000) $0 $0 $0 $0 Unencumbered Resources Transfer $0 $0 $0 $0 $0 $0 $0 Indirect Cost Transfers $0 $0 $0 $0 $0 $0 $0 In-Kind Services Transfers $0 $0 $0 $0 $0 $0 $0 Total Funding $1,787,614 $1,048,126 $742,465 $530,322 $600,000 $1,210,655 $5,919,181 Budgeted Carryover into FY 2022 $0 $0 $173,771 $320,207 $600,000 $1,210,655 $2,304,633

Incremental Reductions Applied FY21 Overview

51

List of Incremental Reductions Developed by Staff for FY21 Budget

52

Staff Weeks Expenditure Reduction FY21 Incremental Budget Reductions Pension Contribution (20-year Amortization) N/A $63,995 Suspend Deferred Compensation Match N/A $11,740 Suspend Volunteer Monitoring 4 Weeks $3,036 Apply Supplemental Monitoring to Current Program N/A $72,300 Reduce Capital Expenditures from $99,000 to $70,000 Reduce 4 Pools to 3 Pools Biological Reduce ODS Maintenance Agreements with Vendor Reduce One Fecal Indicator from Contract Recreation Reduce Fish Tissue Added to Fill Gaps Total FY21 5-Year Incremental Budget Reductions N/A N/A N/A N/A N/A $29,000 $24,050 $40,000 $24,000 $5,380 $273,501

Carryover Resources into FY21

• Encumbered Resources

– Ohio River Source Water Protection $90,000 – River Users $83,771

• Operating Reserve

– $600,000 restricted use balance

• Capital Equipment

– $356,414 ODS Equipment, $142,000 Other Equipment

• Unencumbered Resources

– Increase at the end of FY20 primarily due to combination of special projects added during the year and increased Ohio River Source Water Protection contributions

53

Capital Budget Overview

54

55

June 2018 Commission Amended Reserve Funds Policy

Beginning balances allocated from original $992,000 restricted fund:

• Operating Restricted Reserve - $600,000
• Building & Equipment Capital Account - $142,000
• ODS Equipment Capital Account - $250,000
• More effectively management of equipment procurement &

facility maintenance

• Staff would develop a Capital Budget for Assets
• Staff would develop a process to charge program assets usage to

grants

Reserve Funds Policy

56

• 1. Operating Restricted Reserve Fund of $600,000

 Emergency funds to cover operating expenses in times of low cash flow or other emergency situations.  Front fund from existing reserve funds.  Executive Director is permitted to approve emergency reserve spending, with the exception that any expenditure in excess of $10,000 must be advance co-approved by both the Executive Director and the Commission Chairman.

• 2. Building & Equipment Capital Account (Non-Restricted)

 Front fund with $142,000 of existing reserve funds.  Develop internal process to charge for vehicle and equipment usage to grants to grow this fund to accommodate future needs.  Expenditures for equipment procurement and facility repairs would utilize these funds following established Procurement Procedures with Executive Director approval.  This would provide more flexibility to manage assets and take some pressure off the annual

• perating budget.
• 3. ODS Equipment Capital Account

 Utilize the remaining $250,000 to front fund the ODS “sinking fund” for future system replacement.  Initiate marketing plan to highlight the benefits of the ODS system.  Develop and implement a funding plan to increase the ODS reserve balance to $1.5M over a five year timeframe.

Annual Capital Budget Depreciation

Capitol Category Cumulative Cost Annual Cost Building $1,200,000 N/A IT Equipment* $35,000 $11,000 Scientific Equipment* $197,000 $21,000 Vehicles & Vessels* $406,000 $67,000 ODS $1,600,000 N/A Totals

(*does not include category purchased with grant funds)

$3,438,000 $99,000

57

Anticipated Annual Equipment Needs

58

Category Item FY21 FY22 FY23 FY24 FY25

Vehicles & Vessels Truck $40,000 $40,000 $40,000 WQ Boat $32,500 Boat Motor(s) $44,000 $8,000 $8,000 Boat Trailer(s) $25,400 Tractor $6,000 Scientific Eq. Data Sonde $25,000 $25,000 EF Unit $15,000 $15,000 UV Spec $10,000 Lab Fridge $5,000 $5,000 Microplate Reader $11,000 IT Server $9,000 Building HVAC $9,000 $9,000 Totals $74,400 $85,500 $66,000 $82,000 $59,000

Estimated Carryover Resources Into FY21

Total Carryover $2,445,449

59 Capital Equipment Encumbered Resources Unencumbered Resources $498,414 $173,771 $1,173,264 Restricted Operating Reserve $600,000

FY21 Resources to Support Program Expenses

Program Resources $3,473,732

60 Federal Funds State Funds Interest Income $1,572,875 $1,439,700 $25,000 Other Program Funding $436,157

Total Resources of $3,473,732

• Federal Funds $1,572,857

– 106 Grant at FY20 Base of $1,264,000 – Supplemental Monitoring of $68,000 added to the 106 base funding. – Multi Purpose Grant of $38,875 began in FY20 – IDEM 604(b) Continuous Monitoring grant of $150,000 – OEPA 604(b) PFAS grant of $52,000

• State Funding $1,439,700 (0% increase)
• Other Program Funding of $436,157

– Ohio River Source Water Protection $180,000 supporting ODS – USGS Gage Station Maintenance $145,000 – Ohio River Sweep $91,157 from FORE – Life Below the Waterline contributions of $20,00

• Interest of $25,000

– Will support Capital Expenditures in the FY21 Budget

61

FY21 Program Expenses

Program Expenses $3,614,548

62 Federal 106 Program State Funded WPC Capital Equipment $1,787,614 $1,048,126 $210,115 Special Projects $568,694

Program Expenses of $3,614,548

• Monitoring, Assessment, & Source Water Protection Operating Budget

$3,404,433

– 106 Grant at $1,787,614. Actual grant will be closer to $1,540,510. Federal resources of $1,332,000 plus the $208,510 required maintenance of effort. The remaining $247,510 is 100% state funded., – State Funded Water Pollution Control Program at $1,048,126. 100% state funded. – Special Projects at $568,694. $71,662 of the expenditures are State funds.

• Continuing Programs

– Sweep $91,157; USGS Gage Stations $145,000; Ohio River Source Water Protection $180,000; Life Below the Waterline $46,003; Multi Purpose Grant $38,875

• New Projects

– IDEM(b) Continuous Monitoring $150,000; OEPA 604(b) PFAS program $52,000; State Sponsored PFAS Program $45,659

63

Program Expenses Continued

• Capital Expenditures $210,115

– $178,207 to replace an ODS Station. Funded by the balance in the equipment account dedicated to ODS equipment. – $70,000 in general equipment replacement. Funded by interest earned and the depreciation collected in the indirect cost rate.

• $70,000 (Truck, Trailer, Scientific Equipment)

– Funds from Capital Equipment Reserve 64

FY21 Budget Summary

• Budget is Balanced
• Expenditures

$3,614,548

• FY21 Revenues

$3,473,732

• FY21 ODS Reserves

$ 178,207

• Balance to Unencumbered funds

$ 37,391

• Reserve Accounts
• Restricted Operating

$ 600,000

• Capital Equipment (less $178,207)

$ 320,207

• Encumbered Special Projects

$ 173,771

• Unencumbered funds (up $37,391)

$1,210,655 Total $2,304,633

65

66

Ohio River Valley Water Sanitation Commission Total Proposed FY 2021 Budget

Total Total Total Indirect Total ORSANCO Special Capital Direct Expense Total 106 Grant WPCP Projects Equipment Expenditures Allocation Expenditures EXPENDITURES Payroll $513,856 $279,650 $89,652 $0 $883,158 $351,429 $1,234,586 Employee Benefits $290,311 $157,993 $50,650 $0 $498,953 $198,545 $697,498 Staff Travel $84,718 $52,847 $31,699 $0 $169,263 $22,938 $192,201 Commission Travel $0 $0 $0 $0 $0 $100,275 $100,275

• Adv. Comm. Travel

$6,303 $0 $0 $0 $6,303 $13,774 $20,077 Supplies $12,575 $92,465 $77,587 $0 $182,627 $103,366 $285,993 Telephone $684 $780 $0 $0 $1,464 $11,693 $13,157 Equipment Purchases $0 $0 $0 $248,207 $248,207 $0 $248,207 Mort., Utilities, & Maintenance $0 $0 $0 ($38,092) ($38,092) $59,092 $21,000 Equipment Repairs and Maintenance $11,200 $0 $0 $0 $11,200 $61,672 $72,872 Printing and Reproduction $0 $1,500 $4,450 $0 $5,950 $3,950 $9,900 Lab Fees and Delivery $208,989 $5,148 $16,778 $0 $230,915 $0 $230,915 Contractual Services $72,292 $138,456 $195,520 $0 $406,268 $81,598 $487,866 SUB-TOTAL - DIRECT EXPENSES $1,200,927 $728,839 $466,335 $210,115 $2,606,217 $1,008,331 $3,614,548 Indirect Expenses Allocation $586,687 $319,286 $102,358 $0 $1,008,331 Total program Cost $1,787,614 $1,048,126 $568,694 $210,115 $3,614,548 FUNDING SOURCES Restricted Unencumbered Total Reserve Resources Resources Restricted Operating Reserve $0 $0 $0 $0 $600,000 $0 $600,000 Capital Equipment $0 $0 $0 $498,414 $0 $498,414 Encumbered Special Project Resources $0 $0 $173,771 $0 $0 $0 $173,771 Unencumbered Resources $0 $0 $0 $0 $0 $1,173,264 $1,173,264 Other Program Funding $0 $0 $436,157 $0 $0 $0 $436,157 Misc Income $0 $0 $0 $0 $0 $0 $0 Interest Income $0 $0 $0 $25,000 $0 $0 $25,000 Fines & Settlements $0 $0 $0 $0 $0 $0 $0 USEPA $1,332,000 $0 $240,875 $0 $0 $0 $1,572,875 State Funding Transfer $455,614 $868,126 $71,662 $6,908 $0 $37,391 $1,439,700 River Users Funding Transfers $0 $0 $0 $0 $0 $0 $0 Other Program Funding Transfers $0 $180,000 ($180,000) $0 $0 $0 $0 Unencumbered Resources Transfer $0 $0 $0 $0 $0 $0 $0 Indirect Cost Transfers $0 $0 $0 $0 $0 $0 $0 In-Kind Services Transfers $0 $0 $0 $0 $0 $0 $0 Total Funding $1,787,614 $1,048,126 $742,465 $530,322 $600,000 $1,210,655 $5,919,181 Budgeted Carryover into FY 2022 $0 $0 $173,771 $320,207 $600,000 $1,210,655 $2,304,633

67

Budget Reformatted Example for Capital Equipment Total Proposed FY 2021 Budget

ORSANCO Special Direct Indirect Operating Capital Restricted Unencumbered Total 106 Grant WPCP Projects Expenditures Expense Budget Equipment Reserve Resources Expenditures EXPENDITURES Payroll $513,856 $279,650 $89,652 $883,158 $351,429 $1,234,586 $0 $1,234,586 Employee Benefits $290,311 $157,993 $50,650 $498,953 $198,545 $697,498 $0 $697,498 Staff Travel $84,718 $52,847 $31,699 $169,263 $22,938 $192,201 $0 $192,201 Commission Travel $0 $0 $0 $0 $100,275 $100,275 $0 $100,275

• Adv. Comm. Travel

$6,303 $0 $0 $6,303 $13,774 $20,077 $0 $20,077 Supplies $12,575 $92,465 $77,587 $182,627 $103,366 $285,993 $0 $285,993 Telephone $684 $780 $0 $1,464 $11,693 $13,157 $0 $13,157 Equipment Purchases $0 $0 $0 $0 $0 $0 $248,207 $248,207 Mort., Utilities, & Maintenance $0 $0 $0 $0 $59,092 $59,092 ($38,092) $21,000 Equipment Repairs and Maintenance $11,200 $0 $0 $11,200 $61,672 $72,872 $0 $72,872 Printing and Reproduction $0 $1,500 $4,450 $5,950 $3,950 $9,900 $0 $9,900 Lab Fees and Delivery $208,989 $5,148 $16,778 $230,915 $0 $230,915 $0 $230,915 Contractual Services $72,292 $138,456 $195,520 $406,268 $81,598 $487,866 $0 $487,866 SUB-TOTAL - DIRECT EXPENSES $1,200,927 $728,839 $466,335 $2,396,102 $1,008,331 $3,404,433 $210,115 $0 $0 $3,614,548 Indirect Expenses Allocation $586,687 $319,286 $102,358 $1,008,331 $0 $0 $0 $0 Total program Cost $1,787,614 $1,048,126 $568,694 $3,404,433 $210,115 $0 $0 $3,614,548 FUNDING SOURCES Total Resources Restricted Operating Reserve $0 $0 $0 $0 $0 $600,000 $0 $600,000 Capital Equipment $0 $0 $0 $0 $498,414 $0 $498,414 Encumbered Special Project Resources $0 $0 $173,771 $173,771 $0 $0 $0 $173,771 Unencumbered Resources $0 $0 $0 $0 $0 $0 $1,173,264 $1,173,264 Other Program Funding $0 $0 $436,157 $436,157 $0 $0 $0 $436,157 Misc Income $0 $0 $0 $0 $0 $0 $0 $0 Interest Income $0 $0 $0 $0 $25,000 $0 $0 $25,000 Fines & Settlements $0 $0 $0 $0 $0 $0 $0 $0 USEPA $1,332,000 $0 $240,875 $1,572,875 $0 $0 $0 $1,572,875 State Funding Transfer $455,614 $868,126 $71,662 $1,395,401 $6,908 $0 $37,391 $1,439,700 River Users Funding Transfers $0 $0 $0 $0 $0 $0 $0 $0 Other Program Funding Transfers $0 $180,000 ($180,000) $0 $0 $0 $0 $0 Unencumbered Resources Transfer $0 $0 $0 $0 $0 $0 $0 $0 Indirect Cost Transfers $0 $0 $0 $0 $0 $0 $0 $0 In-Kind Services Transfers $0 $0 $0 $0 $0 $0 $0 $0 Total Funding $1,787,614 $1,048,126 $742,465 $3,578,204 $530,322 $600,000 $1,210,655 $5,919,181 Budgeted Carryover into FY 2022 $0 $0 $173,771 $173,771 $320,207 $600,000 $1,210,655 $2,304,633 Monitoring, Assessment & SWP Operating Budget

FY21 Budget Request Consideration of recommending to the Commission for Adoption

68

• The Commission has established the sum of $1,439,700 as the amount of appropriations to be

requested from the signatory states for Fiscal year 2021

• Funds from the United States Government for approximately $1,572,875 may be allocated to the

Commission for fiscal year 2021

• Funds amounting to $436,157 may be available from a variety of sources to support the Ohio River

Sweep, ORSANCO/USGS Gaging Stations, Life Below the Waterline, and Ohio River Source Water Protection

• The Commission is anticipated to carry over resources of $2,445,449 into fiscal year 2021
• Total expenditures for fiscal year 2021 will be approximately $3,614,548

Payroll $1,234,586 Employee Benefits $697,498 Staff Travel $192,201 Commission Travel $100,275

• Adv. Comm. Travel

$20,077 Supplies $285,993 Telephone $13,157 Equipment Purchases $248,207 Utilities, & Facility Maintenance $21,000 Equipment Repairs & Maintenance $72,872 Printing and Reproduction $9,000 Lab Fees and Delivery $230,915 Contractual Services $487,866

Five Year Revenue & Expenditure Forecast

69

Development of FY21-FY25 5-YR Moderate Forecast

70

List of Incremental Reductions Developed by Staff for Five-Year Scenarios

71

Staff Weeks Expenditure Reduction FY21-25 Incremental Budget Reductions Pension Contribution (20-year Amortization) N/A $63,995 Suspend Deferred Compensation Match N/A $11,740 Suspend Volunteer Monitoring 4 Weeks $3,036 Apply Supplemental Monitoring to Current Program N/A $72,300 Reduce Capital Expenditures from $99,000 to $70,000 Reduce 4 Pools to 3 Pools Biological Reduce ODS Maintenance Agreements with Vendor Reduce One Fecal Indicator from Contract Recreation Reduce Fish Tissue Added to Fill Gaps Total FY21-25 5-Year Incremental Budget Reductions N/A N/A N/A N/A N/A $29,000 $24,050 $40,000 $24,000 $5,380 $273,501

72

FY21-25 Not Incorporated in Five year Budget Reductions Reduce to 3 to 2 Biological Pools 4 Weeks $24,050 Association Memberships & Travel Commission Travel 6 Weeks N/A $13,657 $6,042 Training & Public Information Travel Reduce Legal & Audit Fees (1/2 of Contingency Budget) 4.5 Weeks N/A $5,500 $3,000 Eliminate Upstream Bacteria Monitoring at CSO Locations 1 Week $11,500 Reduce Clean Metals to Quarterly N/A $47,185 Quarterly Monitoring Instead of Bimonthly for All Parameters Reduction in Nutrient Criteria Program 6 Weeks N/A $20,193 $13,000 Eliminate ODS Website N/A $18,000 Eliminate ODS Maintenance Agreements N/A $80,000 Reduce Fixed Stations to 12 Sites 1 Week $2,800 Reduce Fish Tissue Collection & Analysis 1 Week $8,000 Reduce Raise Pool 1% 0% Pay Increase N/A N/A $11,894 $23,789 Transition to a Defined Contribution Pension Plan Total FY21-25 Not Incorporated Budget Reductions Total List of Incremental Reductions Developed by Staff N/A $69,000 $357,610 $631,111

Revenue Assumptions for FY21-25 5-Year Moderate Scenario

– No State funding increase in FY21 - FY23 – State funding increased by 1.0% each year for FY24-25 – SRF set aside annual funding of $100K in FY22-FY25 – 604(b)/205(j) annual net funding of FY21 - $240K; FY22 – FY25 $250K – Ohio River Stakeholder ODS/Spill Monitoring/Spill Response annual contributions drinking water utilities and industry: FY21 - $180K; FY22 - FY23 $200K; FY24 - FY25 - $250K

73

74

Five Year Moderate Revenue & Expenditure Forecast with 0% FY20 - FY23 and 1% FY24 - FY25 State Funding Increase

FY20 FY21 FY22 FY23 FY24 FY25 Payroll 1,203,709 1,234,586 1,312,375 1,345,185 1,378,814 1,413,285 Benefits 712,937 697,498 752,097 795,258 836,532 879,181 Travel 328,174 312,554 315,846 337,956 319,008 314,281 Supplies/Utilities/Mgt. 396,013 393,022 383,978 384,072 390,134 395,648 Equipment 62,919 248,207 83,000 248,207 70,000 70,000 Analytical lab Services 216,310 230,915 226,991 214,262 220,690 237,811 Contractual Services 548,862 497,766 499,935 565,177 623,084 581,284 Total Expenditures 3,468,924 3,614,548 3,574,222 3,890,117 3,838,263 3,891,489 State Funding 1,439,700 1,439,700 1,439,700 1,439,700 1,454,097 1,468,638 Federal 106 Funding 1,332,000 1,332,000 1,332,000 1,332,000 1,332,000 1,332,000 Additional 106 Funding Increases 243,200

• 160,000

320,000 160,000

• SRF Set Aside (Sourcewater Protection)

100,000 100,000 100,000 100,000 Other Federal Funding 232,376 240,875 250,000 250,000 250,000 250,000 Ohio River Stakeholder Contribution 180,000 180,000 200,000 200,000 225,000 225,000 Other & Special Project Funding 298,592 281,157 282,980 284,840 286,736 288,671 Capital Equipment (ODS GC Mass Spec) Total Revenues 3,725,868 3,473,732 3,764,680 3,926,540 3,807,833 3,664,309 Net Income (Loss) Before Transfers 256,944 (140,816) 190,458 36,423 (30,430) (227,180) Carryover into Fiscal Year 2,188,504 2,445,449 2,304,633 2,495,091 2,353,307 2,322,876 Encumbered Project Resources; Use or Add 10,000

• Capital Equipment; Use or Add

(178,207)

• (178,207)
• Unencumbered Resources; Use or Add

246,945 37,391 190,458 36,423 (30,430) (227,180) Restricted Reserves; Use or Add Carryover Into Next Fiscal Year 2,445,449 2,304,633 2,495,091 2,353,307 2,322,876 2,095,696 Encumbered Project Resources $173,771 $173,771 $173,771 $173,771 $173,771 $173,771 Capital Equipment $498,414 $320,207 320,207 142,000 142,000 142,000 Restricted Reserves $600,000 $600,000 $600,000 $600,000 $600,000 $600,000 Unencumbered Resources $1,173,264 $1,210,655 $1,401,113 $1,437,536 $1,407,105 $1,179,925 $2,445,449 $2,304,633 $2,495,091 $2,353,307 $2,322,876 $2,095,696

What Will Be Presented Today

 Opening Remarks  Review recommendations and actions from April 2019 Committee meeting  Key considerations & comments by Executive Director Harrison  Coronavirus Pandemic Program Impacts  Proposed Programs for FY21  Proposed Financial Budget for FY21

• State Support for FY23
• Strategic Planning
• Committee Recommendations
• Adjourn – by 12:00 PM

75

Consideration of State Support for FY23

Recent Adopted State Funding Increases

FY13 – 0% FY14 – 0% FY15 – 1% FY 16 – 1% FY17 – 1% FY18 - 1% FY19 - 1.5% FY20 – 0% FY21 – 0% FY22 – 0% Total 10 year increase - $76,700

76

77

OHIO RIVER VALLEY WATER SANITATION COMMISSION STATE FUNDING DISTRIBUTION INFORMATION

COMBINED ADOPTED ADOPTED SHARE (1) FY2021 FY2022 FY2023 FY2023

1% Increase 2% Increase

% INCREASE 0.0% 0% By State 1% By State 2.0% STATE ILLINOIS 4.92% $70,800 $70,800 $700 $71,500 $1,500 $72,300 INDIANA 19.63% $282,600 $282,600 $2,800 $285,400 $5,700 $288,300 KENTUCKY 22.28% $320,800 $320,800 $3,200 $324,000 $6,400 $327,200 NEW YORK 0.98% $14,100 $14,100 $200 $14,300 $300 $14,400 OHIO 26.00% $374,300 $374,300 $3,800 $378,100 $7,500 $381,800 PENNSYLVANIA 12.44% $179,100 $179,100 $1,800 $180,900 $3,600 $182,700 VIRGINIA 3.54% $51,000 $51,000 $500 $51,500 $1,000 $52,000 WEST VIRGINIA 10.21% $147,000 $147,000 $1,500 $148,500 $2,900 $149,900 TOTAL 100.00% $1,439,700 $1,439,700 $1,454,200 $1,468,600 $0 $14,500 $28,900 Increase Impact

What Will Be Presented Today

 Opening Remarks  Review recommendations and actions from April 2019 Committee meeting  Key considerations & comments by Executive Director Harrison  Coronavirus Pandemic Program Impacts  Proposed Programs for FY21  Proposed Financial Budget for FY21  State Support for FY23

• Strategic Planning
• Committee Recommendations
• Adjourn – by 12:00 PM

78

Strategic Planning

June 2019 - Commission approved revisiting the Commission’s Strategic Plan

• Review initiated under pervue of Program & Finance

Committee

• Roundtable discussion conducted
• Feedback surveys of Commissioners, staff and advisory

committees completed or underway

• Work will continue to summarize survey results
• Proposed date of completion moved from June to

October 2020

• Discuss scheduling in-person strategic planning meeting

in August 2020

79

What Will Be Presented Today

 Opening Remarks  Review recommendations and actions from April 2019 Committee meeting  Key considerations & comments by Executive Director Harrison  Coronavirus Pandemic Program Impacts  Proposed Programs for FY21  Proposed Financial Budget for FY21  State Support for FY23  Strategic Planning

• Committee Recommendations
• Adjourn – by 12:00 PM

80

Summary of Recommendations

Committee will review and record recommendations

81

Recommendations for Committee Consideration

• Recommend adoption of the FY21 program plan and balanced budget as presented
• Recommend adoption of a 0% state funding increase for fiscal year 2023
• Recommend setting FY21 Defined Contribution Plan voluntary contribution at 5% of compensation
• Recommend that staff seeks sponsorship funding opportunities for the Mobile Aquarium
• Recommend consideration of a face-to-face strategic planning meeting in August 2020 if appropriate

under pandemic restrictions

82