AGENDA AND NOTICE OF PUBLIC HEARING LAS VEGAS VALLEY WATER DISTRICT BOARD OF DIRECTORS

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1 AGENDA AND NOTICE OF PUBLIC HEARING LAS VEGAS VALLEY WATER DISTRICT BOARD OF DIRECTORS SPECIAL MEETING 9:45 A.M. MAY 20, 2013 COMMISSION CHAMBERS CLARK COUNTY GOVERNMENT CENTER 500 S. GRAND CENTRAL PARKWAY, LAS VEGAS, NEVADA (702) Board of Directors Mary Beth Scow, President Steve Sisolak, Vice President Susan Brager Larry Brown Tom Collins Chris Giunchigliani Lawrence Weekly Patricia Mulroy, General Manager The Las Vegas Valley Water District makes reasonable efforts to assist and accommodate persons with physical disabilities who desire to attend the meeting. For assistance, call Mitch Bishop at (702) at least 24 hours prior to the meeting. THIS MEETING HAS BEEN PROPERLY NOTICED AND POSTED IN THE FOLLOWING LOCATIONS: LAS VEGAS VALLEY WATER DISTRICT CLARK COUNTY GOVERNMENT CENTER 1001 SOUTH VALLEY VIEW BOULEVARD 500 SOUTH GRAND CENTRAL PARKWAY LAS VEGAS, NEVADA LAS VEGAS, NEVADA GRANT SAWYER STATE OFFICE BUILDING REGIONAL JUSTICE CENTER 555 EAST WASHINGTON AVENUE 200 LEWIS AVENUE LAS VEGAS, NEVADA LAS VEGAS, NEVADA All items listed on this agenda are for action by the Board of Directors, unless otherwise indicated. Items may be taken out of order. The Board of Directors may combine two or more agenda items for consideration, and/or may remove an item from the agenda or delay discussions relating to an item on the agenda at any time. CALL TO ORDER COMMENTS BY THE GENERAL PUBLIC NO ACTION MAY BE TAKEN: At this time, the Board of Directors will hear general comments from the public on items listed on this agenda. If you wish to speak to the Board about items within its jurisdiction but not appearing on this agenda, you must wait until the "Comments by the General Public" period listed at the end of this agenda. Please limit your comments to three minutes or less. ITEM NO. 1. For Possible Action: Approve agenda with the inclusion of tabled and/or reconsidered items, emergency items and/or deletion of items. 2. For Possible Action: Conduct a Public Hearing on the Tentative Budget for the Las Vegas Valley Water District and subsequently adopt a Final Budget for fiscal year 2013/2014. Copies of the Budget, which have been prepared on forms in such detail as is prescribed by the Nevada Department of Taxation, are on file for public inspection at the Las Vegas Valley Water District, 1001 S. Valley View Boulevard, Las Vegas, Nevada. COMMENTS BY THE GENERAL PUBLIC NO ACTION MAY BE TAKEN: At this time, the Board of Directors will hear general comments from the public on matters under the jurisdiction of the Las Vegas Valley Water District. Please limit your comments to three minutes or less. Visit our website at for Las Vegas Valley Water District Agenda Postings and Approved Minutes

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3 LAS VEGAS VALLEY WATER DISTRICT GENERAL MANAGER S INFORMATION REPORT DATE: April 15, 2013 NO. 168 SUBJECT: LAS VEGAS VALLEY WATER DISTRICT TENTATIVE BUDGET FOR FISCAL YEAR 2013/2014 Attached for your review is the Tentative Budget of the Las Vegas Valley Water District (District) for fiscal year 2013/2014, which was submitted on April 15, 2013, to the State of Nevada Department of Taxation in accordance with NRS EXECUTIVE SUMMARY Although economic conditions are beginning to show improvement, the District continues to evaluate and implement strategies and initiatives to streamline organizational approaches while providing reliable, quality water and an enhanced customer experience. Efforts are being made to identify additional opportunities to reduce costs, improve processes and appropriately adjust the organizational structure. These initiatives have resulted in reductions of workforce expenditures and increased customer response efficiency. For these reasons the District s 2013/2014 budget again anticipates no rate increases in the coming year. The fiscal year 2013/2014 budget reflects a continuation and expansion of strategies to restrict non-critical expenditures and optimize operations, while providing high customer response standards. DISTRICT OPERATIONS The District provides water service to more than 1.3 million residents in the City of Las Vegas and parts of unincorporated Clark County, as well as oversight and management support for several small water systems in Laughlin, Blue Diamond, Kyle Canyon, Searchlight, Jean and Coyote Springs. It also manages the operation of the Big Bend Water District; information pertaining to that system is contained in a separate Information Report. In 2012, the District delivered more than 315,000 acre-feet of water to approximately 357,000 active services in Southern Nevada. The District has made significant efforts during the past year to increase its ability to respond to changes in the economy, environment and customer base through the efficient use of existing assets, the optimization of available resources and greater focus on customer experience. Fayle Reservoir Rehabilitation District staff is currently evaluating the feasibility of rehabilitating the 40 million-gallon Fayle Reservoir, which was constructed in When the structure was first evaluated to determine the extent of necessary improvements, it was suggested that the entire reservoir and its pumping stations be replaced a construction project estimated at approximately $45 million.

4 General Manager s Information Report No. 168 April 15, 2013 Page 2 In an effort to minimize costs, the District hired a structural engineering consultant to assess the condition of the reservoir and determine if rehabilitation could be more economically feasible, but still bring the reservoir into compliance with seismic zone requirements, state regulations and county standards. Ultimately, the inspection report recommended that structural rehabilitation would not only cost significantly less, but it would bring the reservoir up to standard and extend its life up to 25 years. The cost of rehabilitation is approximately $11.5 million and the project is scheduled to begin by summer Meter Replacement Program Since January 2012, approximately 73,000 water meters and Automatic Meter Reader (AMR) devices have been replaced within the District service area as their batteries approached expiration or they experienced technical malfunctions. Approximately 240,000 meters/amr devices remain to be replaced within the District service area. The new devices being installed allow District staff increased flexibility and responsiveness to customer billing needs. Total funding for this project is $38.7 million and was approved by the Board of Directors in November Small Systems Kyle Canyon Water District As a condition of a $3.2 million grant from the State of Nevada that was awarded to support necessary water system improvements, a metered rate structure was implemented for all Kyle Canyon residents in October In the year since the conservation-based rates were implemented, water demand has decreased by approximately 27 percent. Searchlight Water System Due to a lack of funding on the State and Federal levels, construction on the Searchlight System Improvements Project was placed on hold for most of calendar year However, after extensive coordination between the State and the U.S. Army Corps of Engineers, staff was able to obtain sufficient funding from both entities to equip a new, arsenic-compliant production well for the community. Jean Water System After conducting water audits of the highest commercial water users in Jean, staff developed and implemented a conservation plan, which details opportunities for businesses to conserve water and save money, such as the installation of low-flow fixtures and drought-tolerant landscaping. Blue Diamond Water System Staff conducted a community water audit and determined that, by simply modifying watering practices at the community s county park, approximately 1.6 million gallons of water annually can be saved. An additional 800,000 gallons in estimated annual savings could be realized by converting the park to a more drought-tolerant grass, which the town board is currently considering. Customer Response The Customer Care and Field Services Department was formed in 2012 to centralize the District s customer service and billing functions and to enhance the customer experience. The

5 General Manager s Information Report No. 168 April 15, 2013 Page 3 new department provides support to approximately 357,000 active services and manages all forms of payment, payment arrangements, collection courtesy calls, delinquent account processing, high consumption issues, field investigations, meter maintenance, water-waste complaints, billing, problem resolution and 24/7 emergency phone coverage. The creation of this department combined resources that have optimized the District s ability to respond to customer needs, increased internal collaboration and improved internal processes. In calendar year 2012, Customer Care answered nearly 624,000 customer inquiries, in addition to generating 3.9 million bills. Field services conducted 232,000 field orders including water-waste investigations, service start and shut-off requests, and maintenance work. Staff continues to assist customers with general account issues and billing inquiries, many of which require additional customer interaction due to current economic challenges. In these cases, payment arrangements, outbound courtesy calls and the utilization of other customer management tools provide staff added flexibility in working with these customers. In addition, extra efforts are being made to educate customers on ways to conserve water and prevent water waste. Organizational Efficiency To be consistently responsive to economic conditions, environmental changes and customer needs, the District continues to examine and implement processes and initiatives to streamline operations. Senior Management is currently engaged in a strategic planning process to develop a new mission statement, vision and set of goals to represent the District s commitment to increased internal efficiency and exemplary service to its customers. Improvements to the online Digital Plans and Inspections System allow developers, contractors and public agencies to submit plans, check on reviews and schedule inspections electronically as opposed to over the phone or in person. Because 99 percent of all plans are now submitted and reviewed digitally, not only are significant paper and plotter cost savings being realized, but the project review and approval process has been streamlined significantly. The Southern Nevada Water Authority s (SNWA) Development Review Team has merged with the District s Engineering Services Division. This has resulted in a one-stop experience for engineering firms with projects that require both District and SNWA review. The Springs Preserve was merged with the Public Services Department, combining the Preserve with the department that provides marketing and administrative support. Also, the Support Services Department was dissolved, and its functions were absorbed by other departments. In addition to the direct benefit of increased efficiency, these organizational changes are providing employees the opportunity to expand their exposure to new areas within the District.

6 General Manager s Information Report No. 168 April 15, 2013 Page 4 Staff Contributions District employees continue to contribute to the organization s cost-reducing efforts. Since the implementation of the voluntary furlough program, employees have contributed 45,840 hours, resulting in $1,801,661 in savings. In addition, the Board of Directors extended the Voluntary Separation Program through the end of fiscal year There are currently approximately 19 retirements planned as part of this program, which will result in positions that are either left vacant or, if filled internally, will leave the resulting vacancy unfilled. FINANCE The pace of Southern Nevada s economic recovery is indicated by the District s limited new service connection applications and account growth. While new service connections have increased slightly, from 661 in 2010 to 1,328 in 2011, to 1,551 in 2012, new connections remain dramatically lower than the 24,078 received in In addition, the District has experienced nominal account growth in fiscal year 2013, and projections indicate a continuation of this trend for fiscal year Fiscal Year 2013/2014 Objectives Asset Management Plan The District currently operates and maintains more than 4,500 miles of transmission lines, 59 pumping stations, 94 storage basins with more than 900 million gallons of storage capacity, 103 wells, 375,000 water meters, and 3.1 megawatts of solar-electric systems. With a system of this size, continued maintenance and management of a robust Asset Management Plan is critical to meet the District s conservation objectives and customer obligations. Not only does the District s Asset Management Plan provide a means to evaluate current and future financial needs as they pertain to necessary water infrastructure, but it also identifies opportunities to extend infrastructure life, improve operational efficiencies and reduce costs. The District will continue to implement this plan as a foundation for assessing the condition of the District s water production and distribution system infrastructure and forecasting short and long-term capital renewal needs. Resource Optimization The District will continue to evaluate and implement initiatives to maximize the use of financial resources and maintain safe and reliable water service to customers. Through measures such as project deferrals, decreases in workforce expenditures and restructuring of debt, savings have been and will continue to be realized. WATER RESOURCES AND CONSERVATION The District s primary water resources include Colorado River water and groundwater within the Las Vegas Valley. Colorado River water is purchased from the SNWA, which diverts and treats water from Lake Mead. In the 2012 calendar year, the District s water deliveries from these

7 General Manager s Information Report No. 168 April 15, 2013 Page 5 combined sources totaled 315,000 acre-feet. Water year 2012 was the third-driest year on record since As of January 2013, low inflows have reduced overall Colorado River system storage by 10 percent compared to January As a result, Lake Mead water levels are approximately 90 feet lower than water levels recorded in 2000 and projections indicate that below-average conditions will continue throughout Because of the implications associated with decreasing lake levels, including water quality and potential water shortage declarations, the SNWA continues to move forward with the development and diversification of water resources. To ensure water supplies remain available, the District, SNWA and its other member agencies have implemented a number of initiatives. These efforts include water-conservation programs, securing additional water resources and banking unused resources. Water conservation efforts have been particularly effective. Last year, the District issued 1,700 courtesy water waste letters and 187 formal notifications. Over the last ten years, the District s average monthly water use for residential single-services declined by 33 percent, from approximately 17,900 gallons per month in 2001 to 11,900 gallons per month in These efforts have put Southern Nevada in a much stronger water resource position. SPRINGS PRESERVE The Springs Preserve is an example of the District s commitment to conservation, preservation and sustainability of cultural, environmental and water resources. The facility is designed to promote sustainable desert living, increase visitors understanding of the world around them, and commemorate the dynamic history of Las Vegas. The Springs Preserve continues to offer new shows, exhibits and events in an ongoing effort to increase new and repeat visitation. The new programming and attractions are expected to help increase revenue streams. Springs Preserve highlights for fiscal year 2012 include: More than 251,000 visitors (a 6 percent increase in attendance from fiscal year 2011). A 59 percent increase in membership enrollment, resulting in a 34 percent increase in membership revenue. Field trip program attendance of 32,773 students. The relocation of four historic railroad cottages to their permanent location at the Springs Preserve. Applied for and received grant funding for a 48-passenger trackless train for use along the 2.2 mile Exploration Loop Trail. Completed development of the Springs Preserve s Mojave Desert Cacti and Succulent Collection; received accreditation as a national collection from the North American Plant Collections Consortium. Received the 2013 Top 10 North American Gardens Worth Travelling For Award from the Canadian Garden Tourism Awards program. A 67 percent increase in retail sales over fiscal year 2011.

8 General Manager s Information Report No. 168 April 15, 2013 Page 6 More than 80 teachers participated in the Teach the Teacher program. The Springs Preserve has even more attractions and events planned for fiscal year 2014 that highlight the unique culture of Southern Nevada. These include a trackless train, a butterfly habitat, the opening of the Water Works exhibit and the historical railroad cottages. SOURCES OF FUNDS Water Revenue The District projects an increase in water revenues of $5.5 million (1.7 percent). Major assumptions driving this forecast are: No water recharge revenues. Very small (0.5 percent) growth in new active services. Slight decline in water consumption per active service. Consistent with fiscal year 2012 actual experience, a small increase in average rate due to slightly more water being sold in the higher tiers. Facilities Connection Charges and Application & Inspection Fees Facilities Connection Charges and Application & Inspection Fees are derived from new service applications, which are projected to be relatively low, but higher than the prior year, providing some indication that the Southern Nevada economy is improving. The District processed applications for 1,551 new services in calendar year 2012, a significant increase from the 280 new services in 2009, but still very low by historical standards as shown in Chart 1 below. For fiscal year 2013/2014 the District anticipates applications for approximately 2,000 new services and revenue of $2.7 million in Facilities Connection Charges, and $1.2 million in Application & Inspection Fees.

9 General Manager s Information Report No. 168 April 15, 2013 Page 7 30,000 Chart 1 Application for New Services Calendar Years Applications Completed 25,000 20,000 15,000 10,000 5, ,708 22,323 20,233 16,330 5,864 1, ,328 1, Calendar Year Springs Preserve Based on fiscal year 2012 actual results, Springs Preserve revenues are budgeted at $2.0 million in fiscal year 2013/2014, same as the prior year budget. SNWA Charges SNWA charges are projected to decrease $7.1 million (6.8 percent) from the prior year budget, driven primarily by two things: 1) a $2.9 million increase in the Regional Connection Charge due to the slight increase in applications for new services described above; and 2) a $10 million decrease in the Infrastructure Surcharge due to the 50 percent credit for fireline services approved by the SNWA Board in July 2012, and adopted by the District Board in August Table 1 below illustrates total sources of funds for the District.

10 General Manager s Information Report No. 168 April 15, 2013 Page 8 Table 1. LAS VEGAS VALLEY WATER DISTRICT Tentative Operating Budget For Fiscal Years Sources of Funds (Millions of Dollars) 2012/ /2014 Change (Approved) (Tentative) $ % Water Revenues $ $ $ % Fees and Charges Facilities Connection Charge % Application & Inspection Fees % Springs Preserve % Total Fees and Charges % Interest Income % Subtotal District % SNWA Charges (7.1) -6.8% Total Sources of Funds $ $ $ (0.2) 0.0% Totals may be off slightly due to rounding. USES OF FUNDS Total Operating Expenses No new additional employee positions are being requested, and all currently vacant positions will remain unfilled. In addition, whenever possible, positions vacated by retiring employees will not be filled. As a result, total payroll and related costs in fiscal year 2013/2014 are projected to decline $0.2 million (0.2 percent) when compared to fiscal year Contractually obligated merit and cost-of-living adjustment increases forecast for existing employees are included in this payroll expense for fiscal year The Wholesale Delivery Charge for water purchased from the SNWA is recommended to increase to $303 per acre foot. As a result, purchased water costs will increase 6.2 percent. Energy costs will increase $0.1 million (1.2 percent), but will remain at historical lows due to SNWA-supplied power contracted at a relatively low rate, and operating efficiencies.

11 General Manager s Information Report No. 168 April 15, 2013 Page 9 All other operating costs are down about $3.8 million (7.5 percent) from the prior year budget due primarily to water meter replacement project costs being moved to the Major Construction Program. Operating Capital Expenses The operating capital budget for fiscal year 2014 will increase $1.5 million (11.5 percent) over the fiscal year 2013 budget, still comparatively low. An increase in annual service line replacements is primarily responsible for the increase in the operating capital budget. Chart 2 on the following page presents operating capital budgets for the past 10 years.

12 General Manager s Information Report No. 168 April 15, 2013 Page 10 Chart 2 $45.0 LVVWD Operating Capital Budget Fiscal Years $40.0 $39.0 $35.0 $35.1 $35.1 $30.0 $29.4 $ Millions $25.0 $20.0 $23.1 $15.0 $10.0 $9.1 $11.1 $13.0 $14.5 $6.4 $5.0 $ Fiscal Year Bond Payments Bond payments in fiscal year 2014 will be $63.0 million, $0.2 million (0.3 percent) higher than fiscal year 2013, just due to slight variations in the amortization schedules. Annual debt service of approximately $63 million is forecast for the near term, unless new debt is sold and/or other refinance opportunities become available. SNWA Charges SNWA charges are simply passed through to the SNWA. Table 2 on the following page presents total uses of funds.

13 General Manager s Information Report No. 168 April 15, 2013 Page 11 Table 2. LAS VEGAS VALLEY WATER DISTRICT Tentative Operating Budget For the Fiscal Years Uses of Funds (Millions of Dollars) 2012/ /2014 Change (Approved) (Tentative) $ % Total Operating Expenses $ $ $ % Operating Capital Expenses % Bond Payments % Subtotal District % SNWA Charges (7.1) -6.8% Total Uses of Funds $ $ $ (4.2) -1.0% Totals may be off slightly due to rounding. Table 3 on the following page combines sources and uses of funds, resulting in the projected surplus or (deficit).

14 General Manager s Information Report No. 168 April 15, 2013 Page 12 Table 3. LAS VEGAS VALLEY WATER DISTRICT Tentative Operating Budget For the Fiscal Years Sources and Uses of Funds Summary (Millions of Dollars) 2012/ /2014 Change (Approved) (Tentative) $ % Sources of Funds Water Revenues $ $ $ % Fees and Charges Facilities Connection Charge % Application & Inspection Fees % Springs Preserve % Total Fees and Charges % Interest Income % Subtotal District % SNWA Charges (7.1) -6.8% Total Sources of Funds $ $ $ (0.2) 0.0% Uses of Funds Total Operating Expenses $ $ $ % Operating Capital Expenses % Bond Payments % Subtotal District % SNWA Charges (7.1) -6.8% Total Uses of Funds (4.2) -1.0% Surplus/(Deficit) $ 0.1 $ 4.1 $ 4.0 Totals may be off slightly due to rounding. Table 4 on the following page illustrates the projected ending operating reserves. Maintaining a healthy operating reserve is paramount in these uncertain economic times to ensure the District s financial viability and to maintain its strong bond rating which reduces the cost of current and future borrowing.

15 General Manager s Information Report No. 168 April 15, 2013 Page 13 Table 4. LAS VEGAS VALLEY WATER DISTRICT Tentative Operating Budget Projected Beginning Operating Reserves (July 1, 2013) $ Sources of Funds Total Funds Available Uses of Funds (334.4) Projected Ending Operating Reserves $ Totals may be off slightly due to rounding. For Fiscal Year 2014 Projected Operating Reserves (Millions of Dollars) 1 Includes Major Contingency Fund balance of $3.7 million. Chart 3 on the following page shows unrestricted cash reserves as a percent of uses of funds since As can be seen, over the past four years, cash reserves have been between percent of total uses of funds, consistent with sound utility financial management practices.

16 General Manager s Information Report No. 168 April 15, 2013 Page 14 Chart 3 Average Unrestricted Cash Reserves as a Percent of Uses of Funds Fiscal Years 2005 through % 42% 40% 38% 38% 35% 32% % of Uses of Funds 30% 25% 20% 15% 10% 29% 23% 26% 22% 26% 23% 5% 0% Fcst 2014 Bud Fiscal Year The public hearing for this budget is scheduled for 9:45 a.m., Monday, May 20, 2013, in the Clark County Commission Chambers of the Clark County Government Center at 500 South Grand Central Parkway, Las Vegas, Nevada.

17 General Manager s Information Report No. 168 April 15, 2013 Page 15 Sources of Funds Fiscal Year 2013 (Approved) Facilities Connection Charge 0% Springs Preserve Revenues 1% Application & Inspection Fees 0% Interest Income 0% SNWA Charges 24% Water Revenues 75% Sources of Funds Fiscal Year 2014 (Tentative) Facilities Connection 1% Charge 1% Application & Springs Preserve Revenues Inspection Fees 0% Interest Income 0% SNWA Charges 22% Water Revenues 76%

18 General Manager s Information Report No. 168 April 15, 2013 Page 16 Uses of Funds Fiscal Year 2013 (Approved) Operating Capital 3% Energy 3% Bond Payments 14% Other Operating Expenses 12% Payroll & Related 26% SNWA Charges 24% Water Costs 18% Uses of Funds Fiscal Year 2014 (Tentative) Energy 3% Operating Capital 3% Bond Payments 14% Other Operating Expenses 11% Payroll & Related 26% SNWA Charges 23% Water Costs 20%

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20 BUDGET DOCUMENT INDEX Page No. I INTRODUCTION 1 Transmittal Letter 1 2 Index 2 II SUMMARY FORMS 1 Schedule S-2 - Statistical Data 3 2 Schedule A-2 - Proprietary Funds 4 III PROPRIETARY FUNDS 1 Schedule F-1 - Enterprise Fund - Revenues, Expenses and Net Inco 5 2 Schedule F-1 - Enterprise Fund - Pension Trust 6 3 Schedule F-2 - Enterprise Fund - Statement of Cash Flows 7 IV SUPPLEMENTARY INFORMATION 1 Schedule C-1 - Indebtedness 8 V SERVICE CONTRACTS 1 Schedule of Existing Contracts Schecule of Privatization Contracts 13 Page 2

21 FULL TIME EQUIVALENT EMPLOYEES BY FUNCTION General Government Judicial Public Safety Public Works Sanitation Health Welfare Culture and Recreation Community Support ACTUAL ESTIMATED PRIOR YEAR CURRENT YEAR BUDGET YEAR ENDING 06/30/12 ENDING 06/30/13 ENDING 06/30/14 TOTAL GENERAL GOVERNMENT Utilities Hospitals Transit Systems Airports Other TOTAL POPULATION (AS OF JULY 1) 2,002,000 2,057,000 2,112,000 Center for Business & Center for Business & Center for Business & SOURCE OF POPULATION ESTIMATE* Econ Research UNLV Econ Research UNLV Econ Research UNLV Assessed Valuation (Secured and Unsecured Only) Net Proceeds of Mines TOTAL ASSESSED VALUE TAX RATE General Fund Special Revenue Funds Capital Projects Funds Debt Service Funds Enterprise Fund Other TOTAL TAX RATE * Use the population certified by the state in March each year. Small districts may use a number developed per the instructions (page 6) or the best information available. Las Vegas Valley Water District (Local Government) SCHEDULE S-2 - STATISTICAL DATA Page: 3 Form 4 11/1/2012

22 SCHEDULE A-2 PROPRIETARY AND NONEXPENDABLE TRUST FUNDS Budget For Fiscal Year Ending June 30, 2014 Budget Summary for Las Vegas Valley Water District (Local Government) OPERATING OPERATING NONOPERATING NONOPERATING OPERATING TRANSFERS REVENUES EXPENSES REVENUES EXPENSES NET INCOME FUND NAME * (1) (2) ** (3) (4) IN (5) OUT(6) (7) Las Vegas Valley Water District E $ 432,918,497 $ 449,855,801 $ 11,750,000 $ 35,717,535 $ - $ - $ (40,904,839) TOTAL $ 432,918,497 $ 449,855,801 $ 11,750,000 $ 35,717,535 $ - $ - $ (40,904,839) * FUND TYPES: E - Enterprise I - Internal Service N - Nonexpendable Trust ** Include Depreciation Page: 4 Form 7 11/1/2012

23 (1) (2) (3) (4) BUDGET YEAR ENDING 06/30/14 ESTIMATED ACTUAL PRIOR CURRENT PROPRIETARY FUND YEAR ENDING YEAR ENDING TENTATIVE FINAL 6/30/2012 6/30/2013 APPROVED APPROVED OPERATING REVENUE Water Sales 333,602, ,348, ,770,088 Inspection/Application Fees 915,666 1,175,000 1,175,000 Springs Preserve 1,857,261 1,959,437 1,952,473 Other 21,074 - SNWA Regional Connection Charge 10,265,102 7,575,000 10,513,803 SNWA Commodity Charge 29,327,883 29,036,710 29,032,420 SNWA Reliability Charge 3,474,713 3,452,750 3,474,713 SNWA Infrastructure Charge 12,659,145 65,030,000 55,000,000 Total Operating Revenue $ 392,123,565 $ 434,577,491 $ 432,918,497 $ - OPERATING EXPENSE Payroll & Related 111,807, ,174, ,992,811 Water Net Cost 83,464,195 80,320,977 85,322,363 Energy 10,278,751 12,417,237 12,561,000 Materials & Supplies 16,785,063 14,028,309 11,783,667 Maintenance & Repairs 17,410,457 19,417,955 18,390,299 Rent/Lease 3,004,322 3,249,020 3,307,611 Other Employee Expense 1,083,755 1,621,990 1,626,743 Other Operating Expense 9,974,352 12,462,270 11,850,371 SNWA Regional Connection Charge 10,265,102 7,575,000 10,513,803 SNWA Commodity Charge 29,327,883 29,036,710 29,032,420 SNWA Reliability Charge 3,474,713 3,452,750 3,474,713 SNWA Infrastructure Charge 12,659,145 65,030,000 55,000,000 Depreciation/Amortization 85,072,124 98,000,000 95,000,000 Total Operating Expense $ 394,607,585 $ 458,786,644 $ 449,855,801 $ - Operating Income or (Loss) (2,484,020) (24,209,153) (16,937,304) - NONOPERATING REVENUES Capital Contributions 16,489,056 5,000,000 10,500,000 Interest Earned - Unrestricted Funds 601, , ,000 Interest Earned - Restricted Funds 192, , ,000 Gain/(Loss) on Sale of Property - 100,000 - Other 593,955 50, ,000 Total Nonoperating Revenues $ 17,877,319 $ 6,100,000 $ 11,750,000 $ - NONOPERATING EXPENSES Interest Expense 39,624,869 34,176,279 35,717,535 Total Nonoperating Expenses $ 39,624,869 $ 34,176,279 $ 35,717,535 $ - Net Income before Operating Transfers $ (24,231,570) $ (52,285,432) $ (40,904,839) $ - Operating Transfers (Schedule T) In Out Net Operating Transfers NET INCOME (24,231,570) (52,285,432) (40,904,839) - Las Vegas Valley Water District (Local Government) SCHEDULE F-1 REVENUES, EXPENSES AND NET INCOME FUND - Enterprise Page: 5 Form 19 11/1/2012

24 (1) (2) (3) (4) BUDGET YEAR ENDING 06/30/14 ESTIMATED ACTUAL PRIOR CURRENT EXPENDABLE TRUST FUND YEAR ENDING YEAR ENDING TENTATIVE FINAL 6/30/2012 6/30/2013 APPROVED APPROVED OPERATING REVENUE Contributions - Employer 26,721,710 25,000,000 30,000,000 Contributions - Employee 19, Investment Earnings 10,134,848 8,000,000 12,000,000 Total Operating Revenue $ 36,876,402 $ 33,000,000 $ 42,000,000 $ - OPERATING EXPENSE Administrative & General Expenses 195, , ,000 Benefits Paid 30,074,584 15,000,000 30,000,000 Depreciation/Amortization Total Operating Expense $ 30,270,056 $ 15,150,000 $ 30,150,000 $ - Operating Income or (Loss) $ 6,606,346 $ 17,850,000 $ 11,850,000 $ - NONOPERATING REVENUES Interest Earned 1,508,694 1,500, ,000 Property Taxes Subsidies Consolidated Tax Total Nonoperating Revenues $ 1,508,694 $ 1,500,000 $ 500,000 $ - NONOPERATING EXPENSES Investment Expense 116, , ,000 Total Nonoperating Expenses $ 116,401 $ 125,000 $ 100,000 $ - Net Income before Operating Transfers $ 7,998,639 $ 19,225,000 $ 12,250,000 $ - Operating Transfers (Schedule T) In Out Net Operating Transfers $ - $ - $ - $ - NET INCOME 7,998,639 19,225,000 12,250,000 - Las Vegas Valley Water District (Local Government) SCHEDULE F-1 REVENUES, EXPENSES AND NET INCOME FUND - Pension Page: 6 Form 19 11/1/2012

25 (1) (2) (3) (4) BUDGET YEAR ENDING 06/30/14 ESTIMATED ACTUAL PRIOR CURRENT PROPRIETARY FUND YEAR ENDING YEAR ENDING TENTATIVE FINAL 6/30/2012 6/30/2013 APPROVED APPROVED A. CASH FLOWS FROM OPERATING ACTIVITIES: Cash Received from Customers 328,361, ,000, ,000,000 Cash Payments to Suppliers for Goods and Services (111,549,252) (248,000,000) (140,000,000) Cash Payments for Salaries and Benefits (124,172,959) (112,500,000) (112,000,000) Other Cash Receipts 1,281,778 50,000 50,000 Other Cash Payments (4,505) a. Net cash provided by (or used for) operating activities $ 93,916,177 $ 74,550,000 $ 78,050,000 $ - B. CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: b. Net cash provided by (or used for) noncapital financing activities C. CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition and Construction of Capital Assets (23,105,799) (12,000,000) (20,000,000) Capital Contributed for Construction 5,171,004 1,000,000 3,000,000 Proceeds from Sale of Prop. and Equipment 181, , ,000 Proceeds from Sale of General Obligation Bonds Bond Issue Costs Principal Paid on Bonds (17,538,000) (28,603,000) (27,313,000) Interest Paid (40,965,465) (34,176,279) (35,717,535) Interest Rebate 1,508, ,000 - Construction Deposits (2,202,173) (1,000,000) (1,000,000) c. Net cash provided by (or used for) capital and related financing activities $ (76,949,908) $ (74,479,279) $ (80,930,535) $ - D. CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of Investment Securities (209,824,250) (125,000,000) (100,000,000) Proceeds from Maturities of Investment Securities 63,240,000 90,000, ,000,000 Interest Income on Investments 617, , ,000 d. Net cash provided by (or used in) investing activities $ (145,967,011) $ (34,500,000) $ 500,000 $ - NET INCREASE (DECREASE) in cash and cash equivalents (a+b+c+d) $ (129,000,742) $ (34,429,279) $ (2,380,535) $ - CASH AND CASH EQUIVALENTS AT JULY 1, 20xx $ 207,779,377 78,778,635 44,349,356 CASH AND CASH EQUIVALENTS AT JUNE 30, 20xx $ 78,778,635 $ 44,349,356 $ 41,968,821 $ - Las Vegas Valley Water District (Local Government) SCHEDULE F-2 STATEMENT OF CASH FLOWS FUND - Enterprise. Page: 7 Form 20 11/1/2012

26 ALL EXISTING OR PROPOSED * - Type 6 - Medium-Term Financing - Lease Purchase GENERAL OBLIGATION BONDS, REVENUE BONDS, 1 - General Obligation Bonds 7 - Capital Leases MEDIUM-TERM FINANCING, CAPITAL LEASES AND 2 - G.O. Revenue Supported Bonds 8 - Special Assessment Bonds SPECIAL ASSESSMENT BONDS 3 - G.O. Special Assessment Bonds 9 - Mortgages 4 - Revenue Bonds 10 - Other (Specify Type) 5 - Medium-Term Financing 11 - Proposed (Specify Type) (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) REQUIREMENTS FOR FISCAL BEGINNING YEAR ENDING 06/30/14 (9)+(10) ORIGINAL FINAL OUTSTANDING NAME OF BOND OR LOAN AMOUNT OF ISSUE PAYMENT INTEREST BALANCE INTEREST PRINCIPAL List and Subtotal By Fund * TERM ISSUE DATE DATE RATE 7/1/2013 PAYABLE PAYABLE TOTAL FUND $ $ $ $ LVVWD 2005A 2 22 $302,425,000 5/4/2005 6/1/ %-5.00% $ 222,145,000 $ 10,861,231 $ 11,735,000 $ 22,596,231 LVVWD 2006A 2 30 $151,555,000 6/15/2006 6/1/ %-5.00% $ 137,165,000 $ 6,763,300 $ 3,325,000 $ 10,088,300 LVVWD 2006B 2 30 $75,000,000 7/20/2006 6/1/2036 Variable $ 67,905,000 $ 169,763 $ 1,640,000 $ 1,809,763 LVVWD 2006C 2 30 $75,000,000 7/20/2006 6/1/2036 Variable $ 67,905,000 $ 169,763 $ 1,640,000 $ 1,809,763 LVVWD 2008A 2 30 $190,760,000 2/19/2008 2/1/ % $ 158,395,000 $ 7,919,750 $ 4,095,000 $ 12,014,750 LVVWD 2008 Clean Energy 2 14 $2,520,000 7/15/ /15/ % $ 1,680,000 $ 20,748 $ 168,000 $ 188,748 LVVWD 2010A BABS 2 30 $75,995,000 6/15/2010 3/1/ %-5.70% $ 75,995,000 $ 2,933,690 $ - $ 2,933,690 LVVWD 2010B 2 28 $31,075,000 6/15/2010 3/1/ %-4.625% $ 31,075,000 $ 1,304,990 $ 765,000 $ 2,069,990 LVVWD 2011D 2 16 $78,680,000 10/19/2011 6/1/ %-5.25% $ 74,820,000 $ 3,608,800 $ 3,945,000 $ 7,553,800 LVVWD 2012A 2 30 $39,310,000 9/5/2012 6/1/1932 5% $39,310, $ 1,965,500 $ - $ 1,965,500 $ $ $ $ $ $ $ $ $ $ $ $ TOTAL ALL DEBT SERVICE $ 876,395,000 $ 35,717,535 $ 27,313,000 $ 63,030,535 Las Vegas Valley Water District Budget Fiscal Year (Local Government) SCHEDULE C-1 - INDEBTEDNESS Page: 8 Form 22 11/1/2012

27 Local Government: Las Vegas Valley Water District Contact: Phil Speight Address: Daytime Telephone: Total Number of Existing Contracts: 91 Line Vendor Effective Date of Contract Termination Date of Contract Proposed Expenditure FY Proposed Expenditure FY Reason or need for contract: 1 National Computer Services, Inc. 03/02/04 03/01/14 $ 5, $ - Professional software development services 2 Faiss Foley Warren 05/20/04 03/13/15 $ 96, $ 96, Outreach support for sustainability programs 3 Veterinarian Aquarium 12/05/06 01/04/14 $ 20, $ - Veternary services for Springs Preserve 4 Link Tech, LLC 02/14/07 02/13/14 $ 136, $ - Software development services 5 Laguna Productions 03/15/07 02/28/18 $ 145, $ 145, Production Assistance 6 First Data Resources, LLC 06/17/08 06/30/14 $ 845, $ - Hard copy and electronic customer billing services 7 Technology West Group 07/28/08 07/29/14 $ 3, $ - Troubleshooting and repair of the LVSP's Big Spring Theater equip. 8 Holland and Hart 09/23/08 upon notice $ 100, $ 100, Legal Services 9 Process Applications, Inc. 11/03/08 11/02/13 $ 72, $ - Ozone system process enhancements & control systems 10 Datamatic, LTD 02/19/09 01/31/14 $ 160, $ - Maintenance of "Roadrunner" hardware & software 11 Unifirst Corporation 04/15/09 04/14/15 $ 1, $ 1, Uniform cleaning services for the Springs Preserve 12 Fleetwash, Inc. 05/01/09 05/01/14 $ 32, $ - District car wash services at all other District locations 13 Rogich Communications 06/18/09 06/17/17 $ 96, $ 96, Local communications support for community outreach programs 14 IBM Corp c/o IBM Client Exec. 06/30/09 06/29/14 $ 5, $ - Professional Services to implement & modify IBM software 15 Omniticket Network 07/22/09 07/22/15 $ 12, $ 12, For the purchase of services related to internet ticket sales for the Springs Preserve 16 Topnotch Services 10/01/09 10/01/15 $ 81, $ 85, Streetsweeping services 17 Aargon Collection Agency 01/01/10 12/31/15 $ 21, $ 21, Debt Collection Services 18 IT Strategies International 01/05/10 upon notice $ 299, $ 299, Professional services for IT staffing for project work 19 Hispania Comunicacion 01/25/10 01/19/16 $ 86, $ 86, LVVWD Hispanic oriented advertising and marketing services 20 Double Vision Art & Design 02/12/10 02/11/15 $ 18, $ 18, Purchase of design services & web support to promote the Springs Preserve 21 Fiserv 03/16/10 12/31/13 $ 161, $ - Electronic bill presentation and payment services 22 Mike's Drain & Plumbing 06/09/10 06/10/14 $ 7, $ - On Call Plumbing Services 23 Allied Barton Security 07/06/10 12/31/14 $ 900, $ 550, Security Services 24 Cashman Equipment Co. 08/10/10 08/09/15 $ 5, $ 5, Time & Material maint. of uninterrupted power system 25 Third Day Landscape 10/01/10 10/01/15 $ 139, $ 142, Landscape Services Additional Explanations (Reference Lind Number and Vendor): Form 31 Professional Service Contracts

28 Local Government: Las Vegas Valley Water District Contact: Phil Speight Address: Daytime Telephone: Total Number of Existing Contracts: Crear Creative Group 10/05/10 06/30/16 $ 46, $ 46, Professional Services for eblast template and multimedia eblast designs for LVVWD 27 Aztec Technical Services 01/19/11 upon notice $ 50, $ 50, Subsurface engineering services 28 Corrpro Companies 11/06/12 11/06/17 $ 100, $ 100, Erosion engineering services 29 R&R Partners 03/01/11 03/01/16 $ 462, $ 462, Integrated marketing services for the Springs Preserve 30 Altura Communications Solutions, LLC 04/05/11 04/04/16 $ 28, $ 34, Prof services for telecomm hardware, software, and maint. 31 Silver State Wire Rope & Rigging 05/24/11 05/23/16 $ 36, $ 43, Maintenance and repair of overhead cranes 32 Joshua Tree Productions 06/14/11 06/14/17 $ 72, $ 72, Professional video services 33 Garda Cash Logistics 06/28/11 06/30/15 $ 10, $ 10, Armored car transportation 34 Coastal Training 06/29/11 07/14/14 $ 66, $ - Environment Health and Safety Training 35 Piercy Bowler Taylor & Kern 06/30/11 06/30/15 $ 69, $ 69, Professional service for auditing services 36 Global Surveillance Assoc 07/01/11 07/01/15 $ 25, $ 25, Security Systems Services 37 Eurofins Eaton Analytical, Inc. 08/01/11 07/31/15 $ 240, $224, Water sampling analysis 38 Weck Analytical 08/01/11 07/31/14 $240, $240, Water sampling analysis 39 Western Union Financial 08/01/11 07/31/14 $ 110, $ - Water bill payment services 40 A-Check America 10/01/11 09/30/17 $ 15, $ 15, Employment background checks 41 Opportunity Village 04/01/13 04/01/18 $ 480, $ 480, Janitorial service for Springs Preserve 42 Industrial Scientfic 11/01/11 10/31/15 $ 73, $ 73, Gas detection services 43 Lindsey Westgate Cleaners 11/01/11 10/31/16 $ 9, $ 9, Dry Cleaning Services 44 High Sierra Waterlab 12/01/11 11/30/15 $ 35, $ 35, Chemical analysis of water samples 45 Phycotech, Inc. 12/01/11 11/30/14 $ 25, $ 10, Analysis of phytoplankton samples in Lake Mead 46 Safety Kleen Corporation 12/01/11 11/30/16 $ 38, $ 42, Removal of hazardous, toxic, and regulated waste products service 47 Orkin Pest Control 12/01/11 11/30/14 $ 24, $ 12, Pest Control 48 George T. Hall Company 12/06/11 12/31/16 $ 300, $ 300, Programming for AB "ControlLogix" new gen PLC's 49 Wunderlich-Malec Engineering 12/06/11 12/31/16 $ 300, $ 300, Programming for AB "ControlLogix" new gen PLC's 50 Retrievex 01/13/12 01/12/15 $ 15, $ 12, Records Management 51 Echologics Engineering, Inc. 01/25/12 11/30/17 $ 100, $ 100, Leak detection and pipeline assessment 52 Las Vegas Plumbing 02/01/12 03/07/16 $ 10, $ 10, Plumbing Services 53 Ciber Enterprise Solutions 02/13/12 02/12/15 $ 93, $ 102, Tech services to upgrade Lawson HR & payroll software 54 A-1 Mechanical 03/01/12 02/28/17 $ 96, $115,200 HVAC services and repairs. 55 B&L Backflow Testing Specialities 03/01/12 03/01/16 $ 235, $ 230, Backflow Testing 56 Las Vegas Plumbing 03/08/12 03/07/13 $ 12, $ 13, On Call Plumbing Services Additional Explanations (Reference Lind Number and Vendor): Form 31 Professional Service Contracts

29 Local Government: Las Vegas Valley Water District Contact: Phil Speight Address: Daytime Telephone: Total Number of Existing Contracts: Opportunity Village 04/01/12 03/31/15 $ 16, $ 17, Shredding Services 58 Liberty Fire Service 04/05/12 04/04/17 $ 20, $ 20, Annual Extinguisher Service 59 Raysco 04/15/12 04/14/14 $ 35, $ - Carpet and Pressure Washing Services 60 Communication Electronic Systems 04/15/12 04/14/17 $ 15, $ 15, Fire Alarms Inspections 61 Ace Fire Systems 04/15/12 04/14/14 $ 25, $ - Fire Alarm Inspections 62 Unifirst 04/17/12 04/16/17 $ 15, $ 15, Laundering of rags and mops 63 Grove Madsen Industries 05/01/12 05/15/16 $ 90, $ 90, PLC hardware, software, and training 64 Hobbs, Ong and Associates 05/01/12 upon notice $ 150, $ 150, Financial advisory services 65 Hampton Tedder Electric 06/01/12 05/31/13 $ 35, $ - Electrical services 66 Potable Divers, Inc. 07/03/12 05/31/17 $ 79, $ 79, Inspection and cleaning of reservoirs 67 Institute for Executive Development 11/06/12 11/05/19 $ 99, $ 99, Consulting services for strategic planning 68 Reward Strategy Group 11/01/12 10/31/14 $ 95, $ 31, HR consulting 69 Tand Inc 08/01/12 07/31/17 $ 65, $ 65, Leak Detection and Repair Services 70 Hildebrandt Baker Robbins 10/14/09 10/13/13 $ 17, $ - Records and electronically stored information inventory 71 Epiq Systems 12/28/11 12/27/13 $ 15, $ - Litigation, regulatory, and information governance initiatives 72 Epiq Systems 06/28/12 06/30/14 $ 75, $ - migration and retention analysis 73 Epiq Systems 10/24/12 10/23/13 $ 5, $ - Implementation of legal case and meter mgmt system. 74 Cox Business Services 07/01/13 06/30/16 $ 72, $ Internet and video access, including the new Valley 72, View/Tropical fiber optic link Professional and support services for SNWS' SCADA system 75 Argus Engineering 02/12/13 02/11/16 $ 100, $ 100, software 76 Epiq Systems 02/19/13 02/18/14 $ 27, Consulting service policy 77 Epiq Systems 02/13/13 02/12/14 $ 65, Implement document automation 78 Lewis Michaelson 12/01/10 upon notice $ 10, $ 10, Facilitate public participation events 79 Applied Analysis 08/16/12 upon notice $ 100, $ 100, Economic analysis 80 Katarina Hradilekova Double Vision 02/12/10 02/12/15 $ 100, $ 100, Springs Preserve promotion 81 Marcus Faust 12/05/89 upon notice $ 60, $ 60, Water Rights lobbists 82 Market Decisions Corporation 07/18/12 07/31/17 $ 150, $ 150, Market Research services 83 Concentra Medical Centers 12/01/11 11/30/13 $ 6, $ - Medical services 84 Quest Diagnostics N/A upon notice $ 5, $ 5, Drug Testing 85 RHI Consulting 07/16/02 upon notice $ 125, $ 125, IT Consulting 86 TEK Systems Inc 10/18/05 upon notice $ 125, $ 125, IT Consulting 87 Tand Inc 07/03/12 07/31/17 $ 250, $ 250, On-Call Maintenance Services Additional Explanations (Reference Lind Number and Vendor): Form 31 Professional Service Contracts

30 Local Government: Las Vegas Valley Water District Contact: Phil Speight Address: Daytime Telephone: Total Number of Existing Contracts: Broniec Associates 01/10/13 01/31/14 $ 100, $ - Invoice auditing services 89 Moving People to Action 12/27/13 upon notice $ 66, $ 66, Springs Preserve fund-raising strategies 90 Joe Thompson 10/01/12 10/31/14 $ 10, Springs Preserve research for founding families 91 Global Employment Solutions 10/07/08 upon notice $ 446, $ 446, Application develpment services Total Proposed Expenditures $ 9,535, $ 7,085, Additional Explanations (Reference Lind Number and Vendor): Form 31 Professional Service Contracts

31 Local Government: Las Vegas Valley Water District Contact: Phil Speight Address: Daytime Telephone: Total Number of Privatization Contracts: None Line 1 Vendor Effective Date of Contract Termination Date of Contract Duration (Months/ Years) Proposed Expenditure FY Proposed Expenditure FY Position Class or Grade Number of FTEs employed by Position Class or Grade Equivalent hourly wage of FTEs by Position Class or Grade Reason or need for contract: Total Attach additional sheets if necessary. Page: 13 Form 32

32 Las Vegas Valley Water District Operating & Capital Budget Fiscal Year Ending June 30, 2014 Board of Directors Mary Beth Scow, President Steve Sisolak, Vice President Susan Brager Lawrence L. Brown III Tom Collins Chris Giunchigliani Lawrence Weekly Patricia Mulroy General Manager Ron Zegers DGM: Engineering/Operations Philip D. Speight DGM: Administration VACANT Chief Financial Officer

33 Note of Appreciation We would like to express our appreciation to the District s Financial Services staff, and staff members of other departments for their special work in the preparation of the 2013/2014 Budget Plan and this budget document.

34 The VISION of the Las Vegas Valley Water District is People Leading the Way The VALUES of the Las Vegas Valley Water District are Respect for People Integrity Service Excellence Sustainability The MISSION of the Las Vegas Valley Water District is to Partner to Provide Reliable, Quality Water, Ensuring the Sustainability of Our Desert Community and Serve Our Customers Responsibly.

35 CERTIFICATE OF ACHIEVEMENT The Government Finance Officers Association of the United States and Canada (GFOA) presented an award of Distinguished Presentation to the Las Vegas Valley Water District for its annual budget for the fiscal year beginning July 1, In order to receive this award, a governmental unit must publish a budget document that meets program criteria as a policy document, as an operations guide, as a financial plan and as a communication device. The award is valid for a period of one year only. We believe our current budget continues to conform to program requirements, and we are submitting it to the GFOA to determine its eligibility for another award.