Title
Consider recommendation from EAA staff to adopt the annual budget for fiscal year 2018, and assessing aquifer management fee and program aquifer management fee rates for 2018.
Body
STAFF RECOMMENDED MOTION:
Move the board adopt Resolution and Order No. 11-17-892 of the Edwards Aquifer Board of Directors adopting the annual budget, as amended, for fiscal year 2018, and assessing the aquifer management fee and program aquifer management fee rates for 2018, as follows:
Non-agricultural aquifer management fee (General Fund) -- $42 per acre-foot
Agricultural aquifer management fee (General Fund) -- $2 per acre-foot
Non-agricultural program aquifer management fee (EAHCP Fund) -- $42 per acre-foot.
SUMMARY:
Th purpose of this agenda item is for the board to consider an EAA staff recommendation to adopt the proposed budget, and associated aquifer management fee (AMF) and program AMF rates for 2018. EAA staff presented the General Manager’s 2018 Proposed Budget to the board on September 12. Following the recommendation of the Finance/Administrative Committee, the board at its October 10 meeting, authorized staff to conduct public meetings on the proposed budget, AMF rate, and program AMF rate. EAA staff held three public meetings on the 2018 proposed budget as summarized below:
• Wednesday, October 11, 2017 at 6:00 PM, Edwards Aquifer Authority Board Room
• Thursday, October 12, 2017 at 2:00 PM, Hondo Community Center
• Friday, October 13, 2017 at 10:00 AM, San Marcos Old Fish Hatchery Building
A total of three individuals attended these public hearings. Staff answered general questions on the proposed budget at the meeting held on October 11. Chairman Buckner attended the meeting on October 12 and no individuals attended the meeting on October 13. No written comments were submitted for the proposed budget.
As proposed, the 2018 budget is broken down into three primary areas. The proposed 2018 General Fund Budget totals $17,588,915. The AMF rate required to fund the operations of the General Fund is $42 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 2018 Edwards Aquifer Habitat Conservation (EAHCP) Fund Operating Budget of $18,809,028 was based on preliminary workplans received from each of the parties to the EAHCP. Since the presentation of the General Manager’s proposed budget, staff has received the 2018 EAHCP funding applications considered earlier on this agenda. As is typical, these funding applications are slightly different from the amounts estimated in the preliminary work plans. If approved, these funding applications will result in a total increase of $242,999 for a total EAHCP proposed budget of $19,052,027, and will require approval of the appropriate amendments. These amendments are summarized in an attachment to this agenda item.
Also attached are the entire 2018 proposed budget, and Resolution and Order No. 11-17-892, which has been reviewed by legal counsel.
STRATEGIC PLAN REFERENCE:
This agenda item does not relate to a specific goal within the Strategic Plan, but supports the general EAA mission.
FISCAL IMPACT:
The total proposed 2018 General Fund budget is $17,588,915. The AMF required to fund the operations of the General Fund is $42 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 2018 Edwards Aquifer Habitat Conservation Fund Operating Budget is $19,052,027. The program aquifer management fee required to fund the operations of the EAHCP is $42 per acre-foot, per annum, for non-agricultural users.