BOARD AGENDA MEMORANDUM
Government Code § 84308 Applies: Yes ? No ?
(If “YES” Complete Attachment A – Gov. Code § 84308)
SUBJECT: Title
Receive and Discuss Long Range Financial Planning Models for the Water Utility Enterprise Fund, the Watersheds Stream Stewardship Fund, and the Safe, Clean Water Fund.
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RECOMMENDATION: Recommendation
Receive information on the long-range financial planning models for the Water Utility Enterprise Fund, the Watersheds Stream Stewardship Fund, and the Safe, Clean Water Fund; and
Provide direction as necessary.
Body
SUMMARY:
The purpose of this item is to review the long-range financial planning models that staff has prepared for three of Santa Clara Valley Water District’s (Valley Water) major funds: the Water Utility Enterprise Fund (Fund 61 and Fund 63), the Watersheds Stream Stewardship Fund (Fund 12) and the Safe, Clean Water Fund (Fund 26).
To complement several annual processes, including water rate setting and budget setting and capital improvement program development, staff prepared long-range
financial forecasts, which include assumptions with regard to repair and rehabilitation of large assets beyond the typical 10-year forecasts presented annually.
Each major fund has a slightly different forecast time frame, ranging from 30 to 45 years, in part to demonstrate the long-term impact of various capital investment funding methods. While a forecast that far into the future would certainly include many assumptions, it would provide the Board with a comprehensive financial picture and could help the Board make decisions to address the long-term future.
Attachment 1 is a PowerPoint that identifies specific assumptions by fund.
Watershed Stream Stewardship Fund:
Fund reserve balances are forecasted through FY 2059-60
The main revenue source for Watershed Stream Stewardship Fund is Valley Water’s portion of Ad Valorem property taxes, budgeted at $140 million in FY 2026-27.
The forecast includes assumptions...
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