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• • 2008 Draft VLAWMO budget highlights The spreadsheet with the draft 2008 budget has 3 worksheets: one shows the Operations budget with NO CIP; the second sheet "CIP Draft 08 budget" has a modest CIP budget of $115,000 and the last sheet shows the operations & CIP budget in pie chart format with percentages. Different sections of the budget are color coded. ♦ The draft 2008 shows a DECREASE from the 2007 budget: $430,305 ('07) - $380,000 ('08) = $50,305 or 12% (decrease). Most of the decrease is in the CIP budget: $51,305. The Operations budget is almost the same: $1000 more then this year. ♦ While the 2008 budget actually spends less than the 2007, substantially more funding support is coming from local sources, whether member contributions, stormwater utility fees or a CIP levy. In 2007 $196,305 came from grant funding or VLAWMO reserves. This breaks out as $66,305 (Clean Water Partnership grant); $30,000 (reserves earmarked for completing the updated hydraulic model of the watershed) and another $1 00,000 (CWP funding still to be received). Expenses ♦ See Footnotes for those line items that either stayed the same or increased or decreased slightly. • Restore reserves ($5000) — this is the Water Plan contingency approved this year (to be spent in 2007 from reserves). VLAWMO has roughly $30,000 in reserves. Our auditor several years ago recommended reserves sufficient to cover 1/3 to '/2 of our annual budget. This reserve level was fine in 2005 when the VLAWMO budget was $85,000. If the funding mechanism for the watershed moves to a Storm Water Utility (SWU) we should have half a years operating expenses — at least — in reserve. VLAWMO anticipates building its reserve fund over 2 — 3 years to an appropriate level. o $265,000 proposed 2008 operating budget o $133,000 half year operating budget (recommended reserves) o $380,000 — total proposed 2008 budget w/ $115,000 CIP o $391,933 funding generated under preliminary SWU feasibility at $1 / mo/ single family residential unit with standard exempt parcels but no credits. o Reserve restoration: $12,000 (SWU) + $5,000 (restoring used reserves) + $25,000 (existing) = $42,000 — would be the new reserves available (still about $91,000 short of the recommended. ♦ Programs and non -CIP Projects. The Sustainable Lake Management Plan, Cost - share program and monitoring and analysis program have stayed the same in 2008. Facilities maintenance increased by 3 %. A $3,000 SWU update fee was included this year to have a consultant help us update the SWU file. This could possibly be done by in -house staff. We will have a better idea when the feasibility study is complete. • Capital Improvement Program. The 2008 funds three items identified in the draft Water Plan. FUNDING THIS LOCALLY IS NEW. June 11, 2007