ORSANCO Fiscal Year 2017 Budget Presentation April 26, 2016 1 - - PowerPoint PPT Presentation

ORSANCO

Fiscal Year 2017 Budget Presentation

April 26, 2016

1

What Will Be Presented Today

• Presentation Overview
• Status of Recommendations from April 2015 P&F

Committee Meeting (Agenda #4)

• Review Budget Process (Agenda #5)
• Proposed Program Activities for FY17 (Agenda #5)
• Resources Overview (Agenda #5)
• Proposed FY17 Budget (Agenda #5)
• Five Year Revenue & Expenditure Forecast (Agenda #5)
• Proposed Plan to Increase Funding (Agenda #5 )
• State Funding Considerations (Agenda #6)
• Summary of Recommendations (Agenda #7)

2

Budget Message Overview

• Presenting a cost effective FY17 Budget
• FY 17 – FY 21 Five Year Revenue and Expenditure Forecast

– No increase in EPA 106 grant funding – 1% increase in FY 17 & FY 18 State funding; 0% increase in FY19-FY21 – 1.3% annual projected increase in expenditures – 1.7% annual projected decrease in revenue

• Carryover Resources

– Projected to be $2,052,398 going into FY17 – Utilize $171,077 in FY17 – Utilize $1,919,828 FY17-FY21 – End FY21 balance of $132,570 ($48,799 Restricted Reserve)

• Potential Future Programs list developed

– Identify future funding opportunities

• Need for ORSANCO Strategic Plan Update

3

Status of April 2015 Program & Finance Committee Recommendations

Adoption of FY16 program plan & associated budget

• Adopted June 2015

Adoption of 1% state funding increase for FY18

• Adopted June 2015

Develop short and long term ODS funding strategies for the operation and refurbishment of the system

• Updates provided 6/8/15 & 12/23/15
• Draft business plan distributed
• Overview to be presented to P&F Committee on 4/26/16

Develop a 3-5 year budget forecast

• Forecast to be presented to P&F Committee on 4/26/16

Pension Committee continue comprehensive Plan review

• Update & recommendations to be presented to P&F Committee on 4/26/16

4

What Will Be Presented Today

Presentation Overview Status of Recommendations from April 2015 P&F Committee Meeting

• Review Budget Process
• Proposed Program Activities for FY17
• Resources Overview
• Proposed FY17 Budget
• Five Year Revenue & Expenditure Forecast
• Proposed Plan to Increase Funding
• State Funding Considerations
• Summary of Recommendations

5

Budget Development Process

January - April

• Staff assimilates program input & recommendations from all

committees and workgroups for consideration

• Management & staff meets to discuss budget framework,

resources available & program considerations

• Draft budgets are developed with staff input and reviewed by

the management team

• The management team &Comptroller, conducts group reviews
• Review meetings with Committee chairman & staff conducted
• The draft budget is submitted to the Program & Finance

Committee for consideration

• The Program & Finance Committee meets with staff to review

the proposed budget and provide input

• The Program & Finance Committee recommends the budget

for adoption by the Commission

6

What Will Be Presented Today

Presentation Overview Status of Recommendations from April 2015 P&F Committee Meeting Review Budget Process

• Proposed Program Activities for FY17
• Resources Overview
• Proposed FY17 Budget
• Five Year Revenue & Expenditure Forecast
• Proposed Plan to Increase Funding
• State Funding Considerations
• Summary of Recommendations

7

Program Categories

• Administrative Programs
• Monitoring & Assessment Programs
• Source Water Protection Program

8

Administrative & Public Information Programs

• Facilities
• Program Development
• Administrative Support
• Community Relations
• Committee Activities
• Public Information

9

Proposed Administrative Programs Changes Impacting Budget

• Pension contribution increase - $38,570
• Include full mortgage payment - $37,955
• Truck purchase - $35,000
• Policy review legal fees - $20,000
• Financial internal controls audit - $10,000
• Increased legal retainer - $6,000

10

Pension Plan Review

11

Pension Committee Recommendation

• ORSANCO budgets 7/1/2015 actuarially

recommended funding level of $338,570

• Do not amend plan to add employee

contributions

• Do not amend plan to halt new entrants at this

time

• Continue to closely monitor future Pension Plan

Valuation Status and ORSANCO’s financial status to determine recommended future course of action

12

Pension Plan Status

• Review completed by Pension Committee
• Plan restated to comply with IRS Regulations
• July 1, 2015 Actuarial Report Completed
• Unfunded Past Service Liability of $1,939,738
• Actuarial recommended funding of $338,570

13

ORSANCO PENSION VALUATION DATA JULY 1, 2015

Valuation Date Total Accrued Liability* (1) Accrued Past Service Benefits** (2) Market Value Of Assets (3) Unfunded Liability (1) – (3) Funded Ratio (3) / (2) Actuarially Recommended Funding Contribution*** Actual Annual Contribution July 1, 2015 5,552,548 4,862,864 3,612,810 1,939,738 74.3% 338,570 300,000 July 1, 2014 5,072,990 4,398,112 3,479,075 1,593,915 79.1% 295,766 300,000 July 1, 2013 5,171,720 4,414,745 3,085,633 2,086,087 69.9% 378,326 250,000 July 1, 2012 4,904,728 4,188,288 2,799,625 2,105,103 66.8% 377,391 250,000 July 1, 2011 4,182,248 3,419,044 2,676,083 1,506,165 78.3% 316,009 200,000

*Includes future projections of salaries for current employees to an assumed retirement date as well as past service liability. ** Value of past service accrued benefits as of the actuarial report date. ***Actuarially calculated recommendation - Includes normal annual cost and 10-year amortization of unfunded past service liability. 14

Pension Plan Overview

• 15 inactive (10 retirees & 5 past employees with vested pension

status) and 18 active participants

• The plan requires 5 years of service to be vested
• ORANCO’s 5-Yr funded status ranged from 66.8% to 79.1%
• ORSANCO member state plans funded status between 39% and

89% (2013 data)

• ORSANCO’s plan assumes discount rate of 7.6% for valuation
• ORSANCO uses 10 years to amortize its unfunded liability
• States use 20 to 30 years to amortize their unfunded liability
• ORSANCO’s total pension funding since 2001 has been $1,502,584

less than the actuarial recommended total funding

15

Pension Plan Review

• Committee looked at adding employee contributions

– IRS would require additional benefit equal to employee contribution – Additional risk to ORSANCO because future actuarial shortfalls associated with new benefit would be ORSANCO’s responsibility

• Committee looked at halting new entrants into plan

– Would cost legal fees to amend plan – Does not provide short term relief

• Committee looked at impact of suspending current plan

– Would reduce July 1, 2015 unfunded liability from $1,939,738 to approximately $1,300,000 – Would reduce actuarial funding level from $338,570 to approximately $170,000 annually – Would likely be replaced with 457 type defined contribution plan costing approximately $60,000 per year assuming 5% match

16

Pension Committee Recommendation

• ORSANCO budgets 7/1/2015 actuarially

recommended funding level of $338,570

• Do not amend plan to add employee

contributions

• Do not amend plan to halt new entrants at this

time

• Continue to closely monitor future Pension Plan

Valuation Status and ORSANCO’s financial status to determine recommended future course of action

17

Vehicle Fleet Status

Vehicle Mileage 2002 F350 Dually* 104,349 Mileage & Years of Towing Large Boat & Aquarium 2003 E450 Lab 117,757 2006 F250** 147,417 Mileage & Maintenance History 2006 GMC Dually 123,259 2008 F250*** 126,253 Mileage By Replacement Date 2008 F350 Dually 47,258 2012 F250 53,604 2013 F250 38,139

*FY17 Proposed Replacement Schedule ** FY18 Proposed Replacement Schedule *** FY20 Proposed Replacement Schedule

18

Administrative Programs (Indirect Cost Breakdown)

Facilities, $138,552 Program Development, $232,022 Support Activities, $696,187 Community Relations, $50,504 Committee Activities, $44,465

Facilities Program Development Support Activities Community Relations Committee Activities

Total Proposed Indirect Cost - $1,161,730 Proposed FY17 Indirect Cost Rate – 145.38%

19

Public Information Programs

20

Activity Overview

• Public Presentations
• Write Annual Report
• Manage Sweep Program
• Coordinate Media Relations
• Develop Press Releases
• Collaborate with State Agency PI Staffs
• Manage Website Content
• Manage Social Media
• Produce Newsletters & Informational Publications
• Oversee Volunteer Monitoring Activities
• Manage Distribution Lists
• Etc.

21

Programs Overview

106 Supported

• Public Information (114) - $113,689

State Supported

• Public Awareness (118) - $43,644
• Volunteer Monitoring (117) $20,358

Self Funded

• Ohio River Sweep (370) - $110,862
• No proposed increased program activity for FY17

22

Monitoring and Assessment Programs

23

Programs Overview

• Monitoring Programs

– Bimonthly Sampling $ 99,321 – Clean Metals Sampling $154,316 – Recreation Season Bacteria $136,259 – Algae/Nutrients (carried out under Macro) $ 93,084 – Supplemental Monitoring (mercury) $ 98,764 – Fish Population $242,318 – Macroinvertebrates (includes nutrients) $101,791 – Fish Tissue Contaminants $ 54,018 – QA/QC $ 70,032 TOTAL MONITORING $1,049,883

24

Programs Overview (cont.)

• Assessment Programs

– Biological Assessment $ 213,881 – WQ Data Assessment & Dist. $ 217,984 – TMDL $ 52,806 – Develop Monitoring Strategy $ 64,833 – Urban/Wet Weather Assessment $ 14,818 – Watershed Protection $ 126,120 – Special Studies $ 8,302 – WQ Problem Follow Up $ 14,553 $713,297

• Pollution Control Standards

– Development $ 107,709 – Administration $ 79,197 $ 186,906

25

Special Projects

Project Total Program Cost Income

• Hg Scoping Effort

$100,000 $100,000 $ 0

• Life Below Waterline

$ 47,121 $ 47,121 $20,000

• WV604b3 Grant

$130,879 $ 0 $32,000

• EPRI Trading

$ 5,085 $ $ 5,000

• River Users

$ 21,702 $ 21,702 $ 0

• Totals

$168,823 $57,000

• Net Total

$111,823

Workgroups & Committees

• Standards Committee

(1 mtg)

• Mercury Ad Hoc Committee

(1 mtg)

• River Users

(1 mtg)

• Water Resources

(none)

• POTW Advisory

(2 mtgs)

• Chemical Advisory

(2 mtgs)

• Biological

(1 mtg)

• NPDES

(conf calls)

• Stream Criteria

(1 mtg)

• TMDL

(1 mtg)

• 305b

(1 mtg) Total $138,577

27

Monitoring, Assessment & Standards Programs Within Total ORSANCO Budget

Assessment $713,297 Remaining ORSANCO Budget $1,291,146 Monitoring $1,049,883 PCS Development Special Projects Committees/ Workgroups Administration of WQS

28

Big Picture

• Unchanged Programs

– Routine water monitoring programs. – All assessment programs

• Programmatic changes to bio surveys (not budget ).
• Supplemental Monitoring – monitoring for mercury load at outlet.
• Standards - Begin work on 2018 priorities.
• Water Resources Program on hold.
• Trading – EPRI funding offsets $5000 salaries; minimal effort.
• WV 604b3 Grant – offset $30,000 in salaries.
• Corps – Louisville District offsets $13,000 in analytical costs.
• River Users - $83,000 encumbered funds for project.
• $100,000 set aside for mercury scoping effort.

– Currently undefined activities, but could include meetings, travel, consulting services, etc.

29

Source Water Protection & Emergency Response Programs

30

Program Components

Program

Status

QA/QC Same Source Water Protection Same Emergency Response Prep. Same Spill Notification and Tracking Increase Organics Detection System Increase Organics Detection System Renovation Closure

31

Spill Notification and Tracking

• $10,000 increase in proposed program to

cover HAB event/microcystin analysis to support needs of states and drinking water utilities.

32

FY17 ODS Operating Expenses

ODS Expenses* Personnel & Indirect costs $ 269,001 Travel $ 14,320 Supplies $ 55,100 Contractual $ 28,140 $ 366,531 * Supported by $59,956 of STAG Grant Funds

33

Additional ODS Funding Needs FY20 and Beyond

• Instrument Maintenance Agreements

$130,000

• Website, virtual data storage and management

$ 25,000

• Additional costs due to renovation instruments

$ 25,000 $180,000 Annual Equipment Sinking Fund $240,000 $420,000

34

Replacement Funds @ 10 Years

Equipment Value:

– 9 GC/MS @ $150,000 $1,350,000 – 4 CMS 5000 @ $50,000 $ 250,000 – 3 GC/FID @ $75,000 $ 225,000 – 1 Ion Chromatograph $ 120,000 – 17 Comms Systems @ $25,000 $ 425,000 Total $2,370,000 Equipment replacement escrow/year $ 237,000

35

Total FY20 ODS Operational and Replacement Costs

Personnel & Indirect costs $ 287,521 Travel $ 14,320 Supplies $ 55,100 Contractual $ 150,140 Equipment Replacement Costs $ 237,000 Annual Total - All Costs $ 744,081

36

What Will Be Presented Today

Presentation Overview Status of Recommendations from April 2015 P&F Committee Meeting Review Budget Process Proposed Program Activities for FY17

• Resources Overview
• Proposed FY17 Budget
• Five Year Revenue & Expenditure Forecast
• Proposed Plan to Increase Funding
• State Funding Considerations
• Summary of Recommendations

37

Estimated Carryover Resources Into FY17

Total Carryover

Restricted Reserve Encumbered Resources Unencumbered Resources

$83,771 $992,000 $976,627 $2,052,398

38 Note: In the past, carryover resources have been temporarily used to manage cash flow issues.

Restricted Reserve Overview

• Current Reserve Balance - $992,000
• Current Amount Per Commission Guidelines

–Operating Reserve: $482,000 –Building Reserve: $200,000 –Equipment Reserve: $63,000 –ODS Reserve: $175,000 Total: $920,000

39

FY 17 Resources to Support Program Expenses

Program Expenses

State Funds Federal 106 Funds

$1,525,976 $171,077 $3,557,778

Other Program Funding

$1,404,400 $445,241

40 Miscellaneous Support Unencumbered Resources Transfer

$11,084

FY 17 Program Expenses

Program Expenses $3,537,778

41 Federal 106 Program State Funded WPC Unallocated Fund Activities $1,948,909 $853,960 $104,305 Special Projects $650,604

What Will Be Presented Today

Presentation Overview Status of Recommendations from April 2015 P&F Committee Meeting Review Budget Process Proposed Program Activities for FY17 Resources Overview

• Proposed FY17 Budget
• Five Year Revenue & Expenditure Forecast
• Proposed Plan to Increase Funding
• State Funding Considerations
• Summary of Recommendations

42

43

Total Total Unallocated Indirect Total ORSANCO Special Fund Total Expense 106 Grant WPCP Projects Activities Budget Allocation Payroll $504,821 $237,247 $57,039 $15,000 $814,106 $397,667 Employee Benefits $308,250 $144,866 $34,829 $5,000 $492,944 $242,821 Staff Travel $80,249 $43,807 $22,222 $0 $146,278 $26,397 Commission Travel $0 $0 $0 $0 $0 $128,143

• Adv. Comm. Travel

$7,225 $0 $0 $0 $7,225 $20,189 Supplies $38,985 $40,405 $82,200 $0 $161,590 $94,598 Telephone $780 $780 $0 $0 $1,560 $16,268 Equipment Purchases $0 $11,691 $0 $35,000 $46,691 $0 Mort., Utilities, & Maintenance $0 $0 $0 $49,305 $49,305 $69,497 Equipment Repairs and Maintenance $10,000 $0 $0 $0 $10,000 $55,514 Printing and Reproduction $0 $1,500 $1,750 $0 $3,250 $3,300 Lab Fees and Delivery $202,970 $26,002 $76,750 $0 $305,722 $0 Contractual Services $61,728 $2,756 $292,893 $0 $357,377 $107,337 SUB-TOTAL - DIRECT EXPENSES $1,215,008 $509,053 $567,682 $104,305 $2,396,048 $1,161,730 $733,901 $344,906 $82,922 $0 $1,161,729 $1,948,909 $853,960 $650,604 $104,305 $3,557,778 Restricted Unencumbered Reserve Resources Carryover from Previous Fiscal Yr. $0 $0 $83,771 $0 $992,000 $976,627 $2,052,398 38% Other Program Funding $0 $0 $445,241 $0 $0 $0 $445,241 8% Misc Income $0 $0 $0 $0 $0 $0 $0 Interest Income $0 $0 $0 $1,000 $0 $0 $1,000 0% Fines & Settlements $0 $0 $0 $0 $0 $0 $0 USEPA $1,493,000 $0 $32,976 $0 $0 $0 $1,525,976 28% State Funding Transfer $455,909 $853,960 $62,303 $32,228 $0 $0 $1,404,400 26% River Users Funding Transfers $0 $0 $0 $0 $0 $0 $0 Unencumbered Resources Transfer $0 $0 $100,000 $71,077 $0 ($171,077) $0 In-Kind Services Transfers $0 $0 $10,085 $0 $0 $0 $10,085 $1,948,909 $853,960 $734,375 $104,305 $992,000 $805,550 $5,439,099 $0 $0 $83,771 $0 $992,000 $805,550 $1,881,321

FY17 Proposed Budget

Unfunded Program Priorities

• WARMF Model Training - $3,000
• Water chemistry at all fish population sites -

$9,000

• Aquarius software to handle continuous

monitors - $25,000

44

45

1,390,400 14,000

State Funding for Fiscal Year 2017 $1,404,400

2016 Total 2017 Increase

46

$455,909 $853,960 $62,303 $32,228

Budgeted Use of State Funding $1,404,400

106 WPC Program State WPC Program Special Projects Unallocated Fund Activities

47

$1,311,000 $114,000 $68,000

Total Federal 106 Funding $1,493,000

EPA 2017 106 Base Funding Target Unused Allocation from EPA Region 3 2017 Supplemental Monitoring Funds

48

$558,692 $398,127 $113,689 $122,564 $186,906 $501,307 $52,806 $14,818

Federal 106 WPC Program by Project Group; $1,948,909

Water Quality Monitoring Programs Biological Studies Public Information Work Groups Pollution Control Standards Water Quality Assessment Total Maximum Daily Loads

49

ORSANCO Water Pollution Control Program $853,960

State Funding

50

$315,247 $14,553 $460,157 $64,002

ORSANCO WPC Program by Project Group

Special Studies of Emerging Water Quality Issues Water Quality Problem Follow Up Spill Detection and Notification Public Awareness

51

$83,771 $445,241 $100,000 $62,303 $32,976 $10,085

Total Special Project Funding $734,375

Encumbered Project Resources from FY 16 Other Program Funding Unencumbered Resource Transfer State Funds USEPA In-Kind Services

52

$5,085 $175,000 $130,879 $59,956 $21,702 $110,862 $47,121 $100,000

Special Projects by Project

EPRI / ORB Trading Development ORSANCO/USGS Gage Stations WV 604(b) Contaminants ODS Renovation River Users Sweep Life Below the Waterline Mercury Project

53

$32,228 $71,077 $1,000

Unallocated Funds: $104,305

State Funds Unencumbered Resource Transfer Interest Income

54

$20,000 $35,000 $49,305

Unallocated Fund Activities

Unallocated Payroll & Benefits Capitol Equipment Principal Payment not allocated to IDC

55

Budgeted Program Expenditures Fiscal Years 2001 - 2017

Fiscal Year Budgeted Expenditures Payroll Labor Benefits Labor and Benefits Number of Fulltime Equivalent Staff 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 2001 $3,778,038 $1,133,330 $312,193 $1,445,523 29

56

Budgeted Program Revenues and Resources Fiscal Years 2001 - 2017

Fiscal Year Total Revenues EPA 106 Grant Funding Other EPA Funding Total EPA Funding State Funding Other Funding Budgeted Carry Over Start of FY 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 2001 $3,582,023 $1,025,900 $912,071 $1,937,971 $1,211,300 $432,752 $1,000,000

FY17 Budget Request Consideration of recommending to the Commission for Adoption

57

• The Commission has established the sum of $1,404,400 as the amount of appropriations to be

requested from the signatory states for Fiscal year 2017

• Funds from the United States Government for approximately $1,525,976 may be allocated to the

Commission for fiscal year 2017

• Funds amounting to $445,241 may be available from a variety of sources to support the Ohio River

Sweep, ORSANCO/USGS Gaging Stations, WV 604 (b) Contaminants, EPRI / ORB Trading Development, and Life Below the Waterline

• The Commission is anticipated to carry over obligated resources of $2,052,778 into fiscal year 2017
• Total expenditures for fiscal year 2017 will be approximately $3,557,778

Payroll $1,211,773 Employee Benefits $735,765 Staff Travel $172,675 Commission Travel $128,143

• Adv. Comm. Travel

$27,414 Supplies $256,188 Telephone $17,828 Equipment Purchases $46,691 Mort., Utilities, & Maintenance $118,802 Equipment Repairs and Maintenance $65,514 Printing and Reproduction $6,550 Lab Fees and Delivery $305,722 Contractual Services $464,713

What Will Be Presented Today

Presentation Overview Status of Recommendations from April 2015 P&F Committee Meeting Review Budget Process Proposed Program Activities for FY17 Proposed FY17 Budget Resources Overview

• Five Year Revenue & Expenditure Forecast
• Proposed Plan to Increase Funding
• State Funding Considerations
• Summary of Recommendations

58

5 Year Projected Carry Over Estimates

April 21, 2015 Program & Finance Committee Mtg

Fiscal Year

2016 2017 2018 2019 2020

FY End Projected Carry Over Balance

$1,283,919 $1,060,000 $ 780,000 $ 460,000 $ 80,000

5 YR Annual Expense Assumptions (FY17-21)

• $338,570 pension funding
• Staffing level reduced from 20 to 19
• 10% health adjustment to health insurance
• 3% inflation factor for contract lab analysis
• 2% salary adjustments
• 2% inflation factor to other expenses
• Vehicle and equipment projected needs

included

60

Revenue Assumptions

• Federal 106 funding constant
• State funding up 1% FY 17 and FY

18 and no increase FY 19-FY 21

• NRSA funding based upon last

round levels

• No additional funding added

61

Five-Year Revenue & Expenditure Forecast

62

FY16 FY17 FY18 FY19 FY20 FY21 Payroll 1,219,953 1,211,773 1,214,441 1,238,729 1,263,504 1,288,774 Benefits 700,153 735,764 743,443 768,350 795,587 825,124 Travel 309,156 328,232 314,397 343,685 350,558 357,569 Supplies/Utilities/Mgt. 420,357 464,883 456,137 453,215 465,259 474,565 Equipment 37,720 46,691 52,000 24,000 52,000 15,000 Analytical lab Services 280,159 305,722 235,841 242,916 250,204 257,710 Contractual Services 470,050 464,713 361,667 523,900 543,900 552,178 Total Expenditures 3,437,548 3,557,778 3,377,925 3,594,796 3,721,012 3,770,920 State Funding 1,390,400 1,404,400 1,418,400 1,418,400 1,418,400 1,418,400 Federal 106 Funding 1,379,000 1,379,000 1,379,000 1,379,000 1,379,000 1,379,000 Additional 106 Funding Increases 159,545 114,000 180,000 90,000 Other Federal Funding 30,661 32,976

• Other & Special Project Funding

356,725 456,326 313,200 315,400 312,700 315,000 Total Revenues 3,316,331 3,386,702 3,110,600 3,292,800 3,200,100 3,112,400 Net Income (Loss) (121,217) (171,076) (267,325) (301,996) (520,912) (658,520) Carryover into Fiscal Year 1,405,135 2,052,398 1,881,322 1,613,997 1,312,002 791,090 Need for Carryover to Support Program 121,217 171,076 267,325 301,996 520,912 658,520 Carryover Into Next Fiscal Year 1,283,918 1,881,322 1,613,997 1,312,002 791,090 132,570 Unencumbered Resources $157,000 $805,551 $538,226 $236,231 $0 $0 Restricted Reserves $992,000 $992,000 $992,000 $992,000 $707,319 $48,799 Encumbered Project Resources $134,918 $83,771 $83,771 $83,771 $83,771 $83,771 $1,283,918 $1,881,322 $1,613,997 $1,312,002 $791,090 $132,570

Five-Year Revenue & Expenditure Forecast

Without Reorganization of ODS Renovation Grant

63

FY16 FY17 FY18 FY19 FY20 FY21 Payroll 1,219,953 1,211,773 1,214,441 1,238,729 1,263,504 1,288,774 Benefits 700,153 735,765 743,443 768,350 795,587 825,124 Travel 309,156 328,232 314,397 343,685 350,558 357,569 Supplies/Utilities/Mgt. 420,357 464,883 456,137 453,215 465,259 474,565 Equipment 37,720 46,691 52,000 24,000 52,000 15,000 Analytical lab Services 280,159 305,722 235,841 242,916 250,204 257,710 Contractual Services 470,050 584,713 481,667 523,900 543,900 552,178 Total 3,437,548 3,677,779 3,497,925 3,594,796 3,721,012 3,770,920 Carryover into Fiscal Year 1,405,135 1,397,463 1,106,386 719,061 417,066

• State Funding

1,390,400 1,404,400 1,418,400 1,418,400 1,418,400 1,418,400 Federal 106 Funding 1,379,000 1,379,000 1,379,000 1,379,000 1,379,000 1,379,000 Additional 106 Funding Increases 159,545 114,000 180,000 90,000 Other Federal Funding 30,661 32,976

• Other & Special Project Funding

356,725 456,326 313,200 315,400 312,700 315,000 Total Revenues 3,316,331 3,386,702 3,110,600 3,292,800 3,200,100 3,112,400 Total Resources 4,721,466 4,784,165 4,216,986 4,011,861 3,617,166 3,112,400 Need for Carryover to Support Program (121,217) (291,077) (387,325) (301,996) (520,912) (658,520) Carryover Into Next Fiscal Year 1,283,918 1,106,386 719,061 417,066

• Unencumbered Resources

$157,000 $30,615 $0 $0 $0 $0 Restricted Reserves $992,000 $992,000 $635,290 $333,295 $0 $0 Encumbered Project Resources $134,918 $83,771 $83,771 $83,771 $0 $0 $1,283,918 $1,106,386 $719,061 $417,066 $0 $0

Five Year Revenue & Expenditure Forecast With 2.5 Million Source Water Protection Funding

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FY16 FY17 FY18 FY19 FY20 FY21 Payroll 1,219,953 1,211,773 1,214,441 1,238,729 1,263,504 1,288,774 Benefits 700,153 735,764 743,443 768,350 795,587 825,124 Travel 309,156 328,232 314,397 343,685 350,558 357,569 Supplies/Utilities/Mgt. 420,357 464,883 456,137 453,215 465,259 474,565 Equipment 37,720 46,691 52,000 24,000 52,000 15,000 Analytical lab Services 280,159 305,722 235,841 242,916 250,204 257,710 Contractual Services 470,050 464,713 361,667 523,900 543,900 552,178 Total Expenditures 3,437,548 3,557,778 3,377,925 3,594,796 3,721,012 3,770,920 State Funding 1,390,400 1,404,400 1,418,400 1,418,400 1,418,400 1,418,400 Federal 106 Funding 1,379,000 1,379,000 1,379,000 1,379,000 1,379,000 1,379,000 Additional 106 Funding Increases 159,545 114,000 180,000 90,000 Other Federal Funding 30,661 32,976 496,857 572,499 622,686 635,128 Other & Special Project Funding 356,725 456,326 313,200 315,400 312,700 315,000 Total Revenues 3,316,331 3,386,702 3,607,457 3,865,299 3,822,786 3,747,528 Net Income (Loss) (121,217) (171,076) 229,532 270,503 101,774 (23,392) Carryover into Fiscal Year 1,405,135 2,052,398 1,881,322 2,110,854 2,381,358 2,279,584 Need for Carryover to Support Program 121,217 171,076

• 23,392

Carryover Into Next Fiscal Year 1,283,918 1,881,322 2,110,854 2,381,358 2,279,584 2,302,976 Unencumbered Resources $157,000 $805,551 $1,035,083 $1,305,587 $1,203,813 $1,227,205 Restricted Reserves $992,000 $992,000 $992,000 $992,000 $992,000 $992,000 Encumbered Project Resources $134,918 $83,771 $83,771 $83,771 $83,771 $83,771 $1,283,918 $1,881,322 $2,110,854 $2,381,358 $2,279,584 $2,302,976

Carryover Forecast

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$1,613,997 $1,312,002 $791,090 $132,570 $1,106,386 $719,061 $417,066 $0 $0 $2,052,398 $1,881,322 $2,110,854 $2,381,358 $2,279,584 $2,302,976 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000 $2,000,000 $2,200,000 $2,400,000 $2,600,000 FY16 FY17 FY18 FY19 FY20 FY21 Carryover Fiscal Year

Carryover Into Following Fiscal Year

Carryover Forecast W/O ODS Grant Re-Org Additional $2.5M

Restricted Reserves ($992,000) + Encumbered Resources ($83,000) = $1,075,000

5 Year Projected Carry Over Estimates

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End of FY Projected End of FY Projected End of FY Projected Carryover Balance Carryover Balance Carryover Balance

Fiscal Year

As Presented April 2015 W/O ODS Grant Reorganization With ODS Grant Reorganization 2016 $1,283,919 $1,397,463 $2,052,398 2017 $1,060,000 $1,106,386 $1,881,322 2018 $780,000 $719,061 $1,613,997 2019 $460,000 $417,066 $1,312,002 2020 $80,000 (103,846) $791,090 2021 N/A (762,366) $132,570

What Will Be Presented Today

Presentation Overview Status of Recommendations from April 2015 P&F Committee Meeting Review Budget Process Proposed Program Activities for FY17 Resources Overview Proposed FY17 Budget Five Year Revenue & Expenditure Forecast

• Proposed Plan to Increase Funding
• State Funding Considerations
• Summary of Recommendations

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One Year Funding Efforts

1) Extensive Congressional Outreach for Source Water Protection Funding (Secured Report Language Support) 2) Outreach to EPA Headquarters and Regions for Source Water Protection Funding (Ongoing) 3) Accomplished short term ODS funding through Renovation Grant Reorganization 4) Identified potential funding for ODS maintenance agreements from river stakeholders (including water utilities) 5) Prepared Business Plan for ODS Program to make case to States for SRF Funding for ODS Program

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One Year Funding Efforts

6) Sent letter requesting SEP funding and representative

projects to all States (Will do annually) 7) Awarded $130,000 WV Grant (EPA 604 (B))

• Pilot project for completing Grant work for States
• Generated $32,000 of net positive budget impact

8) Developed Potential Future Programs exhibit to serve as catalyst for grant funding consideration

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Future Funding Efforts

1) Continue EPA Source Water Protection grant funding discussions 2) ODS volunteer contribution and SRF possible strategies 3) Potential Future Program strategy 4) Strategic Plan focused on sustainable funding

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Potential Future Programs

1) Goal is to help identify possible funding opportunities 2) Staff identified high priority unfunded programs 3) Staff prioritized list based upon anticipated funding opportunities 4) Past Committee input also considered

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Potential Future Programs

Program/Activity

Estimated Capital Cost Estimated Annual O&M Spill Monitoring, Detection & Response (ODS)

$1.0M - $1.5M

HAB Monitoring & Response

$2.75M - $3M $600K - $900K

Mercury Study

Unknown Unknown

Special State Grant Supported Studies (NRSA, other)

$250K - $1.0M

Update Dioxin & PCBs Monitoring Data

$75K (1 study)

Update Bacteria Monitoring Data

$160K* $90K (1 study)

Enhance Biological Pool Surveys

$250K

Conduct Emerging Contaminants Baseline Study

$300K (1 study)

Add DRP & Alkalinity to Bimonthly & Nutrients Monitoring

$14,400/yr

Expand Bimonthly/Clean Metals Monitoring

$100K $350K

Remote Sensing Applications

$100K $50K

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Potential Future Programs

Program/Activity Estimated Capital Cost Estimated Annual O&M Pollutant Data Management & Impact Modeling System

$300K - $500K $50K

Continuation of Water Resources Initiative

$90K

Review Fish Consumption Rate Assumptions

$200K (1 study)

Conduct Mussel Surveys & Develop Multi-metric Index

$25K $75 - $100K

Upgrade Mobile Lab & Additional Capabilities

(upgraded analytical equipment needs and costs not identified) $160K

Public Outreach

$100K $200K

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Update Strategic Plan

1) Need to offset projected future funding shortfalls with additional funding, reduced expenditures or a combination of both 2) Time to consider updated Strategic Plan

• Review current program scope
• Discuss core funding challenges
• Discuss additional funding opportunities

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What Will Be Presented Today

Presentation Overview Status of Recommendations from April 2015 P&F Committee Meeting Review Budget Process Proposed Program Activities for FY17 Resources Overview Proposed FY17 Budget Five Year Revenue & Expenditure Forecast Funding Opportunities

• State Funding Considerations
• Summary of Recommendations

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State Support for FY19

Recent Adopted State Funding Increases

FY15 – 1% FY 16 – 1% FY17 – 1% FY18 - 1%

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OHIO RIVER VALLEY WATER SANITATION COMMISSION STATE FUNDING DISTRIBUTION INFORMATION

COMBINED ADOPTED ADOPTED Increase Impact SHARE (1) FY2017 FY2018 FY2019 FY2019 1% Increase 2% Increase

% INCREASE

1% 1% By State 1% By State 2%

STATE ILLINOIS

4.92% $69,100 $69,800 $700 $70,500 $1,400 $71,200

INDIANA

19.63% $275,700 $278,400 $2,800 $281,200 $5,600 $284,000

KENTUCKY

22.28% $312,900 $316,000 $3,200 $319,200 $6,300 $322,300

NEW YORK

0.98% $13,800 $13,900 $100 $14,000 $300 $14,200

OHIO

26.00% $365,100 $368,800 $3,700 $372,500 $7,400 $376,200

PENNSYLVANIA

12.44% $174,700 $176,500 $1,700 $178,200 $3,500 $180,000

VIRGINIA

3.54% $49,700 $50,200 $500 $50,700 $1,000 $51,200

WEST VIRGINIA

10.21% $143,400 $144,800 $1,500 $146,300 $2,900 $147,700 TOTAL 100.00% $1,404,400 $1,418,400 $1,432,600 $1,446,800 $14,000 $14,200 $28,400

What Will Be Presented Today

Presentation Overview Status of Recommendations from April 2015 P&F Committee Meeting Review Budget Process Proposed Program Activities for FY17 Resources Overview Proposed FY17 Budget Five Year Revenue & Expenditure Forecast Funding Opportunities State Funding Considerations

• Summary of Recommendations

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Summary of Recommendations

Staff will recap Committee recommendations

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