West Basin Fiscal Year 2020-2021 Operating Budget

Expenditures FY 2017-18 FY 2018-19 FY 2019-20 FY 2019-20 FY 202-21 Description Actual Actual Projected Budget Budget Imported Water Purchases / RTS $123,854,127 $130,544,823 $128,970,621 $129,003,224 $127,478,616 Capacity Charge 1,866,925 1,813,435 1,757,870 1,757,870 2,023,690 Debt Service 23,531,213 23,357,876 23,597,938 23,597,938 23,655,786 Water Recycling Operations 34,828,243 37,575,664 41,352,236 41,238,603 41,473,700 Desalter Operations 475,068 774,520 774,942 1,493,475 1,505,231 Water Policy 1,724,020 1,659,735 2,340,984 1,634,517 2,420,799 Public Information & Education 3,201,324 2,988,152 4,085,157 3,864,298 5,038,332 Water Use Efficiency 1,532,871 1,124,863 2,262,948 3,704,412 3,363,566 Water Quality Monitoring 23,631 28,393 28,921 47,005 51,552 Technical Planning 652,512 1,342,791 1,200,119 5,846,582 3,779,792 Designated Funds 30,750,992 25,066,762 20,115,126 17,592,586 13,314,906 Total Expenditures $222,440,926 $226,277,014 $226,486,862 $229,780,510 $224,105,970 Use of Funds West Basin maintains a single enterprise fund which is divided among four major types of expenses: water purchases (including the Readiness-to-Serve Charge), Capacity Charge, debt service, and program expenses. A balanced budget is maintained between sources of revenues and uses of funds by placing the difference generated into West Basin’s Designated Funds. Summarized below are the actual and projected expenses for the past three years along with comparative budgets to illustrate the trend of the various expenses. Overall expenditures are budgeted to decrease approximately $5.6 million in FY 2020-21 as compared to FY 2019-20. The reduced expenditures are primarily due to a decrease in imported retail water purchases and Designated Funds. The amount budgeted to be placed into Designated Funds for FY 2020-21 will decrease $4.2 million as compared to the FY 2019-20 due reduction in revenue. West Basin plans to reinvest these funds to support and upgrade its facilities. See “Capital Improvement Program” in section 8 for further explanation. 6-1