1. Fiscal Year 2018/19 Budget

2. Budget Discussion and Key Topics
New Operations and Maintenance
Equipment Renewal and Replacement
Software and Information Technology Efforts
Bold Initiatives
Rates and Fees
Performance Pay
Reserve Balances
Within the budget overview section you will find additional narrative and support that describes the key topics and budget discussions that have taken place in this process since January.
This slide produces a list just a few of the main highlights.
New Operations and Maintenance
New Ops and Maintenance
SPC
Confluence
Martinez IV
Equipment Renewal and Replacement
Capital - $1,003,605
Replacement Fleet Vehicles (6)
Replacement Laboratory Equipment (6)
Watershed Park Operations Equipment
Software and Information Technology Efforts
Clarity – project management
Lucity – asset management
GIS viewers
ADP – payroll and HR services
Many other under way
Bold Initiatives
Floodplain remapping
Predictive Modeling
LID investments in both the public and private developer sectors
Major Projects: moving out on Salitrillo Expansion
Rates and Fees
Tax Rate
Utilities Rates and Other Charges
Performance Pay
3.5% approved by the board to support performance pay increases across all SARA
Quick plug for the self-evaluations
Reserve Balances
25% fund balance policy target
Operations - $1,890,591
Supports additional contracted services, some technology improvements
Supports increased awareness and outreach campaigns
Other special initiatives and partner collaboration

3. FY 2018/19 Proposed Budget (revised)
General Fund (1)
Utility Operating Funds (3)
Special Revenue Funds (8)
Capital Imp. Funds (15)
Other Funds (Debt, Insurance) (2)
Total All Funds (29)
FY 2017/18 Adopted Budget
$ 41.1
$19.5
$8.8
$ 159.4
$ 12.9
$241.7
FY 2018/19 Proposed Budget
$ 44.6
$ 21.6
$ 8.7
$ 134.6
$ 10.7
$ 220.2
FY 2018/19 Proposed Budget-Revised
$ 9.2
$ 136.3
$222.4
As a result of the five recommended revisions to the proposed budget two category areas increased to take the budget from 220 to 222.4M.
General Fund
increase due largely to tax revenue increases (combination of rate change an total property values across the district)
This revenue allows for us to be consistent with previous years in terms of investment in people, operations and capital investments
Also allows for transfer to SARA project fund of over $4.0M for the acceleration of some key projects that we discussed
Utilities
Rates also played a large factors as we built the budgets for utilities (13% Salitrillo; 5% SARA)
Staff has invested time in building out the capital improvement plans to ensure we are prepared with the resources to make investments necessary to maintain a top performing wastewater system
Over 800K in new resources are proposed, primarily capital to upgrade heavy equipment and operations to bring online MIV
Special Revenue
Grants Fund (dam rehabilitations, WSC trails, CTP and most recently TCEQ funding for green stormwater infrastructure studies)
Remains fairly flat in this budget
Capital Improvement Fund
These funds are from partners like the City and Bexar County
Pretty significant in the amounts, which demonstrates the importance of the project management
The reduction from last fiscal year is due to spending down SPC money
Other Funds
Debt Services
Insurance Funds
spent down a year of debt services,
repayment to BC,
insurance expenditures higher than estimated FY18 revenues, reducing ending fund balance
All of these budgets meet the fund balance policy in place that requires a target of 25% or 3 months or operating reserves, increases reserves available in utilities for future capital projects identified in the capital improvements plan
Dollars in Millions

4. FY 2018/19 Proposed Budget – Summary
Proposed Tax Rate: $ per $100 of property valuation
Total Revenues: $167,397,256
Total Expenditures: $185,487,980
Capital Improvement Funds: $115,401,630
Total Reserves (all funds): $36,970,094
Based on the proposed tax rate of cents per $100 of property valuation we have the following:
Total Revenues: 167M, 101M from intergovernmental partners like BC and CoSA
Total Expenditures: 185M, 115M in capital improvement funds such as BC, CoSA, utilities, the SARA project fund, downstream
Carry forward beginning balance projected from the current fiscal year balance the shortfall of revenues to expenditures as identified in this slide.
pg. I-9

5. FY 2018/19 Total Available Funds
As mentioned we do project a beginning balance of 55M that helps balance the budget for FY19
You’ll find here that intergov funds that come from partners that we perform various services such as project management, studies, etc. is the largerst component
Revenue in this budget generated from taxes is 14%

6. FY 2018/19 Total Appropriations
As expected on the expenditure side you see that 49% of the budget is allocated to capital improvement work
One of the byproducts of this capital project support are reimbursement to our General Fund that offset personnel expenditures. This number is projected at $1.8M.
In the proposed budget we are projecting a fund balance of 36M that is in line with our Fund Balance policy requirements

7. Rates and Fees – Tax Rate
FY18 Current Tax Rate –
Average Annual Tax Amount: $31.30
FY19 Rollback Rate (est.) –
FY19 Proposed Tax Rate –
Average Annual Tax: $35.68
Amount of Proposed Tax Rate was driven by the revenue necessary to fund the recommended new resources (operations and projects under accelerated scenario)
Amount was determined to be cents

8. Strategy to fund the recurring operational needs and the accelerated efforts established during strategic planning.
Proposed tax rate increase
Graph provides the history of our tax rate and how significant our proposed strategy is.
The decrease in FY 2015/16 was related to keeping our rate below the Rollback Rate

9. SARA Projects Fund – Funding History
New Authorized Projects
Annual Funding for New and Existing
FY 2015/16 35
$4,600,325
FY 2016/17 15
$4,292,144
FY 2017/18 5
$3,145,832
FY 2018/19 9
$4,175,705

10. Utility Funds – Salitrillo WW
Salitrillo Plant Expansion
Inflow and Infiltration (I&I)
Support Fee
Rate Changes
Connection Fee(s)
Variable
Fixed
Capital Plan
capital plan allows for rate model to plan for future cash needs
Rates Model
we are still reviewing the information received from the various cities we support to help develop recommendations for the FY18 rates;
the capital plan, including the Martinez IV plant and a looming Plant Expansion at Salatrillo will be major influencer for any rate decisions.
Finance Strategies
Evaluating which major capital expenditures would be better to fund through debt issuance versus capturing cash funding through the rate model

11. Utility Funds – SARA WW Capital Improvement Plan
Martinez IV Plant
Collection System Planning
Martinez II Planning
Development in Service Area
Rate Proposal
issuance versus capturing cash funding through the rate model

12. SARA Project Fund – Budget Discussion
Active Ongoing Projects – 38
New Proposed Projects – 7
Authorized Unfunded – 5
Closed/Closing – 14
pg. I-24
pg. V-4