snwa

1 On the cover: Workers completed construction of a 20-foot diameter, 3-mile long tunnel underneath Lake Mead in December 2014 as part of Intake No. 3. The drought-protection project will help assure our community can access its share of Colorado River water even at very low lake levels. Learn more at Nevada water Authority Operating & Capital Budget Fiscal Year Ending June 30, 2016 Board of Directors Mary Beth Scow, County Commissioner, Chairwoman, (representing Las Vegas Valley water District) Sam Bateman, V ice Chairman, (representing City of Henderson) Susan Brager, County Commissioner (representing Clark County water Reclamation District) Bob Coffin, City of Las Vegas Councilman Duncan McCoy, City of Boulder City Councilman Steve Sisolak, County Commissioner (representing Big Bend water District) Anita Wood, City of North Las Vegas Councilwoman John J.

2 Entsminger General Manager Gina L. Neilson Acting Director of Finance Kade W. Stratton Assistant Chief Financial Officer Prepared by the Finance Department 1001 South Valley View Blvd., Las Vegas, Nevada 89153 702-870-2011 Note of Appreciation We would like to express our appreciation to the Finance department staff, and staff members of other departments for their special work in the preparation of the 2015-16 Budget Plan and this budget document. Southern Nevada water Authority Operating and Capital Budget Table of Contents Fiscal Year Ending June 30, 2016 SECTION 1: General Manager s Information Report Executive Summary .. 1-1 Drought and water Resources .. 1-2 Financial Considerations/Capital Funding .. 1-6 Fiscal Year 2015-16 Objectives .. 1-7 Financial Summary .. 1-8 Approval.

3 1-10 SECTION 2: Introduction and Strategic Plan Introduction .. 2-1 Purposes and Powers .. 2-1 Transfer Act .. 2-1 Intergovernmental Relationships .. 2-2 Organizational Structure .. 2-4 Financial Structure and Controls .. 2-6 Capital Project Structure and Controls .. 2-8 Budget Controls and Process .. 2-9 Budget Augmentation .. 2-11 Budget Calendar for the Fiscal Year 2015-16 .. 2-12 Southern Nevada water Authority Strategic Plan .. 2-15 Strategic Plan Background .. 2-15 Strategic Plan and 2015-16 Budget Plan Preparation .. 2-15 Vision- Mission- Goals .. 2-16 Strategic Plan Strategies .. 2-16 SECTION 3: Operating and Capital Budget Plan Budget Summary .. 3-1 Sources of Funds .. 3-2 Uses of Funds .. 3-6 Summary of Sources and Uses of Funds and Changes in Net Assets .. 3-11 Sub Funds .. 3-12 SECTION 4: State of Nevada Budget Documents State of Nevada, Department of Taxation, Budget Submittal.

4 4-1 Budget Document Index .. 4-2 Schedule S-2: Statistical Data .. 4-3 Schedule A-2: Proprietary and Nonexpendable Trust Funds .. 4-4 i Southern Nevada water Authority Operating and Capital Budget Table of Contents Fiscal Year Ending June 30, 2016 Schedule F-1: Revenues, Expenses and Net Income Fund: Enterprise .. 4-5 Schedule F-2: Statement of Cash Flows .. 4-6 Schedule C-1: Indebtedness .. 4-7 Existing Contracts .. 4-8 Privatization Contracts .. 4-10 Affidavit of Publication .. 4-11 Letter of Compliance .. 4-12 SECTION 5: Department Budgets Summary of Department Expenditures .. 5-1 Executive Management .. 5-2 Legal Services .. 5-11 Finance .. 5-14 Energy Management .. 5-24 Information Technology .. 5-30 Human Resources .. 5-36 Public Services .. 5-39 Environmental, Health, Safety & Corporate Security.

5 5-44 Customer Care & Field Services .. 5-52 Engineering .. 5-60 Resources and Facilities .. 5-66 Infrastructure Management .. 5-77 Operations .. 5-84 water Quality & Treatment ..5-91 SECTION 6: Capital Plans Southern Nevada water Authority Major Construction and Capital Plan .. 6-1 Las Vegas Valley Wash Capital Improvements Plan .. 6-33 SECTION 7: Debt Management Policy Introduction .. 7-3 Affordability of Debt .. 7-6 Issued by the Las Vegas Valley water District .. 7-6 Issued by the Southern Nevada water Authority .. 7-7 Issued by the State of Nevada .. 7-10 Debt Capacity .. 7-11 Debt Comparison (per capita and assessed valuation) .. 7-11 Policy Statement for Sale of Debt .. 7-13 ii Southern Nevada water Authority Operating and Capital Budget Table of Contents Fiscal Year Ending June 30, 2016 Operation Costs and Revenue Sources for Projects in Major Construction and Capital Plan.

6 7-16 Miscellaneous Items .. 7-16 Director of Finance Information .. 7-19 Appendix .. 7-20 SECTION 8: Statistical Information Table of Contents .. 8-1 Demographic Statistics .. 8-2 Top Ten Employers .. 8-3 Residential Real Estate .. 8-4 Secured Tax Roll .. 8-5 Temperature & Rainfall .. 8-6 Charts: Average Rainfall and Comparison of Lake Elevations .. 8-7 SECTION 9: Financial Policy Financial Policy .. 9-1 SECTION 10: Glossary Glossary .. 10-1 iii SECTION 1 GENERAL MANAGER S INFORMATION REPORT FISCAL YEAR 2015-16 SOUTHERN NEVADA water AUTHORITY GENERAL MANAGER S INFORMATION REPORT DATE: April 20, 2015 NO. 37 SUBJECT: SOUTHERN NEVADA water AUTHORITY PROPOSED OPERATING AND CAPITAL BUDGET FOR FISCAL YEAR 2015 16 The Tentative Operating and Capital Budget of the Southern Nevada water Authority (SNWA) for fiscal year 2015 16 was submitted by April 15, 2015 to the State of Nevada Department of Taxation in accordance with NRS Attached for your review is the General Manager s Information Report.

7 Executive Summary Southern Nevada, over the past decade, has experienced unprecedented drought and economic uncertainty. In response, water resource management and financial stabilization have been the SNWA s top priorities as the agency has worked to provide a safe and reliable water supply to Southern Nevada. While the economy has shown welcomed signs of recovery, Lake Mead has fallen to 41 percent of capacity a trend projected to continue. Regardless of economic hurdles or uncertainty on the Colorado River, nearly 2 million residents and 40 million annual visitors depend on a safe community water supply. Economic improvement and an emphasis on fiscal responsibility have helped the SNWA ensure funding is available for future water infrastructure and system maintenance. Protecting the water supply against the volatility of the impacts of drought on the Colorado River continues to require concerted, innovative and collaborative efforts between the SNWA, the community and regional stakeholders.

8 The fiscal year 2015 16 Budget Plan reflects initiatives to continue the stabilization of the SNWA s financial foundation and efforts to protect water resources. New Leadership. Through an interlocal contract with the Las Vegas Valley water District (LVVWD), the SNWA Board of Directors (SNWA Board) authorized John Entsminger to serve as the SNWA s new General Manager. Beginning in February 2014, Mr. Entsminger appointed a new leadership team to guide the organization in managing regional water resources and developing solutions to ensure future water supplies for the Las Vegas Valley. Those efforts include sustainable solutions for fiscal stability, enhanced infrastructure management and collaboration among local, state and regional entities. Strategic Plan. In 2013, the organization underwent a strategic planning process culminating in the agency s realignment with Southern Nevada s new economic realities.

9 The result was an updated Strategic Plan, which shifts the organization s goals from responding to fast paced growth to current community needs, including transitioning from system expansion to asset management and enhancing service levels. Because the goals and expectations set forth by the Plan were developed using input from all staff levels, 1 - 1 Southern Nevada water Authority Operating and Capital Budget General Manager s Information Report Fiscal Year Ending June 30, 2016 the entire workforce has been engaged in its implementation. Organizational Realignment. For the goals set forth by the Strategic Plan to be realized, organizational realignment was necessary and will continue as additional opportunities arise. As part of the ongoing realignment process, the SNWA Operations department merged with the LVVWD Operations department.

10 Combining these workgroups has promoted the development of a uniform maintenance methodology used by both organizations to focus on the operation and maintenance of critical water infrastructure. Additionally, the Facilities division merged with the water and Environmental Resources department to form the Resources and Facilities department. These changes have resulted in additional efficiency and productivity across the organization. Integrated Resource Planning. The SNWA Board appointed a 21 member Integrated Resource Planning Advisory Committee (IRPAC) in 2012 to evaluate the interrelated aspects of water resource management. After two years of committee meetings, the SNWA Board approved a series of IRPAC recommendations. These included the addition of a low lake level pumping station at Lake Mead to the overall Intake No.