West Basin Fiscal Year 2020-2021 Operating Budget

Source of Funds Potable Water Sales, 69% Fixed Capital Payments, 3% Conservation & Interest, 1% Recycled Water Sales, 18% Desalted Water Sales, 1% Standby Charge, 5% Capacity Charge & Fixed Service Charge, 3% Total: $224,105,970 Financial Overview & Summary Each fiscal year West Basin prepares a budget based on the priorities, goals, and objectives set by its Board of Directors. When preparing the budget, staff considers many factors including water sales assumptions, rates and charges, salaries and benefits, debt service, program expenses, and capital expenditures. All of these factors are considered in the FY 2020-21 budget, and discussed in detail in the following sections of this document. This section provides the overview and highlights of the FY 2020-21 budget. Financial Highlights for FY 2020-21 For FY 2020-21 West Basin’s budget is $224.1 million, and is $5.7 million or 2.5% lower than the FY 2019-20 budget. There are several reasons for the decrease in the budget that includes a decrease of $6.6 million in the MET Local Resources Program (LRP); lower revenues from imported water sales of $2.7 million; and lower interest income of $400,000. The reduction in operating revenues is off-set with the increase in the Fixed Service Charge of $3.5 million. More information can be found in Source of Revenue section. Source of Funds FY 2020-21 3-1