Title
Receive report from EAA staff regarding the public hearing process and consider EAA staff recommendation to adopt the annual operating budget and associated aquifer management fee and program aquifer management fee rates for fiscal year 2027.
Body
STAFF RECOMMENDED MOTION:
Move the Finance/Administrative Committee recommend the board adopt a resolution and order of the Edwards Aquifer Authority Board of Directors adopting the annual operating budget for fiscal year 2027 totaling $41,540,726, as amended, and assessing the aquifer management fee and program aquifer management fee rates for 2027, as follows:
Agricultural aquifer management fee (General Fund) -- $2 per acre-foot
Non-agricultural aquifer management fee (General Fund) -- $70 per acre-foot
Non-agricultural program aquifer management fee (EAHCP Fund) -- $34 per acre-foot
OR, if TCDRS amendment approved on previous agenda item:
Move the Finance/Administrative Committee recommend the board adopt a resolution and order of the Edwards Aquifer Authority Board of Directors adopting the annual operating budget for fiscal year 2027 totaling $41,886,103, as amended with the TCDRS approved amendment, and assessing the aquifer management fee and program aquifer management fee rates for 2027, as follows:
Agricultural aquifer management fee (General Fund) -- $2 per acre-foot
Non-agricultural aquifer management fee (General Fund) -- $70 per acre-foot
Non-agricultural program aquifer management fee (EAHCP Fund) -- $34 per acre-foot
SUMMARY:
The purpose of this agenda item is for the Finance/Administrative Committee to receive a report from EAA staff regarding the public hearing process and to consider an EAA staff recommendation to adopt the proposed budget and the associated aquifer management fee (AMF) and EAHCP program aquifer management fee (PAMF) rates, for 2027.
EAA staff presented the General Manager’s 2027 Proposed Budget to the board on September 8th. On October 6th, the EAA board authorized staff to conduct a public meeting on the proposed budget, AMF, and PAMF rates. EAA staff held one public meeting on the 2027 proposed budget on Monday, October 19th both in the EAA Board Room and virtually, via Zoom Videoconference. Additionally, staff made the 2027 proposed budget and presentation available on the EAA website and social media. Public input and comments to the proposed budget could be submitted via written correspondence and delivered by US mail, email, or fax to the EAA, or provided in person before the Finance/Administrative Committee. A total of 2 individuals attended the public meeting in person with 1 attending virtually. Staff received no comments at the public meeting.
In addition, the EAHCP Budget Work Group, established by the EAHCP Implementing Committee, met on September 3rd to review and discuss the EAA’s management of EAHCP revenue, expenses and reserve balance as it has been customarily done in the past. The Work Group issued a report, which was presented to the Implementing Committee on October 8th, and is attached to this summary as a public comment on the proposed budget. The Work Group made no finalized recommendation for the Implementing Committee to forward to the EAA Board regarding the 2027 proposed budget.
As proposed, the 2027 budget is broken down into three primary areas. The proposed 2027 General Fund Budget totals $27,696,014, with no changes proposed since the presentation of the General Manager's proposed budget. The AMF rate required to fund the operations of the General Fund is $70.00 per acre-foot, per annum, for non-agricultural users. The proposed agricultural AMF rate of $2.00 per acre-foot is set by statute in the EAA Act and is limited to General Fund revenue.
As proposed, the 2027 EAHCP Fund Budget totals $13,844,713, which is an increase of $75,500 since the presentation of the General Manager’s proposed budget. This increase is due to amendments to the City of New Braunfels and City of San Marcos 2027 EAHCP funding application considered earlier on this agenda. The Program AMF rate required to fund the EAHCP Fund is $34.00 per acre-foot, per annum, for non-agricultural users.
Also attached to this agenda item is the 2027 Proposed Budget summary document, which includes the EAHCP amendments discussed above, and a draft resolution and order, which has been reviewed by legal counsel.
Earlier on this agenda, the Finance/Administrative Committee considered an EAA staff recommendation to approve an amendment to the Texas County District Retirement Services (TCDRS) agreement increasing the employer contribution for retirement contributions since the presentation of the General Manager's proposed budget. The amendment results in an increase to the employee benefit amounts in each of the proposed Fund budgets. If the amendment is approved, the final proposed 2027 General Fund Budget increases $329,577 to $28,025,591 and the final proposed 2027 EAHCP Fund Budget increases $15,800 to $13,860,513.
STRATEGIC PLAN REFERENCE:
This agenda item supports the general EAA mission.
FISCAL IMPACT:
The total proposed 2027 General Fund Budget is $27,696,014, or with approval of the TCDRS amendment, $28,025,591. The AMF required to fund the operations of the General Fund is $70.00 per acre-foot, per annum, for non-agricultural users. The agricultural rate of $2.00 is set by statute in the EAA Act and is limited to General Fund revenue.
The total proposed 2027 EAHCP Fund Budget is $13,844,713, or with approval of the TCDRS amendment, $13,860,513. The Program AMF required to fund the operations of the EAHCP is $34.00 per acre-foot, per annum, for non-agricultural users.