Metro Water District

Budget & Audit

Review the current Budget.

Review the most recent Audited Financial Statements.

Review the Procurement Policy.


Budget - Metro Water District has a $21.7 million dollar cash expense budget for Fiscal Year 2018, and a $3.4 million dollars budget for depreciation and amortization.  The budget includes the following planed expenditures:

 

Operating Expenditures - $11,551,156
• Major operating expense involves salaries and benefits for employees (50.38 full-time equivalent positions). The Fiscal Year 2018 budget for this line item is $4,300,759.
• CAP water purchases per the District's CAP allocation/AVRP O&M and regulatory fees makes up another large portion of the budget at $3,156,331.
• Other operating expenses include consultant/contract services $1.18 million, general operating expenses $1.16 million, purchased power $1.15 million, and supplies at $0.6 million.

 

Other Budget Disbursements - $6,970,611
• Principal and interest for the Capital Improvement Program debt service is $6,389,790.
• Other budget disbursements are for capital equipment, non-bond capital projects, a contingency for sick and vacation payout liabilities of $80,821, and a $500,000 contingency in case of an emergency.

 

Budget Development - A priority driven process was utilized to create the budget. Each team manager works with staff and submits their recommendations for new programs and any significantly increased line items over of the previous year. All requests are prioritized and then the priorities are compiled into an overall integrated priority list based on the District's mission of delivering safe, reliable water to our customers. The draft budget is reviewed and discussed with the Finance Oversight Committee, who makes a recommendation to the Board of Directors regarding the financial plan. The Board reviews with staff each budget line item in a study session and the budget is officially presented to the Board of Directors for a final review and adoption at the June Board meeting. No rate or fee changes were request for Fiscal Year 2018, so a rate hearing was not held.  The revenue stability achieved in the prior two fiscal year along with fiscal stewardship have helped to make this possible.

 

Revenue - Metered water sales (Water Availability Rate and Water Consumption Charges) make up 83% of the District's revenue. The other 17% consists of various fees, interest earnings, water storage, water rebates, and penalties/service charges.

 

Finance Oversight Committee - In 2010, the Board of Directors decided to add additional responsibilities to the Bond Oversight Committee and reconstitute that committee as the Finance Oversight Committee. The Finance Oversight Committee was asked to review and advise the Board of Directors regarding the District's long-range financial planning including the budget and rate structure as well as to continue to review the progress of the Capital Improvement Program, along with the bonds and agreements issued to finance those projects. The Committee is comprised of seven members who are all residents of the District.

 

Bond Issuance - The District issued revenue bonds in 1999 and 2002 totaled $52,840,000. This debt included $23,000,000 authorized by voters in 1997 for the District's first Capital improvement Program. Other components of the debt include refinancing the original bonds used to purchase the District, settle the City of Tucson litigation, along with refinancing funds used to construct the Herb Johnson Reservoir, District offices, and the District warehouse.

In 2005, District voters authorized another $28,000,000 of debt for a second Capital Improvement Program. The first phase for the improvement projects were funded with a $15,375,000 loan from the Water Infrastructure Financing Authority of Arizona (WIFA), while the second phase started in 2007 with a WIFA loan for the remaining $12,625,000.

 

Debt Refinance and Restructuring - In 2009 the District refinanced the 1999 bonds and in that same year a new WIFA loan was established to refinance the 2005 WIFA loan. The most recent restructuring took place In December 2012, when the Board approved the refinancing of the 2002 Senior Water Revenue Bonds and the restructuring of the 2002 Subordinate Obligation Revenue Refunding Bonds. By working with its Financial Advisor and Bond Counsel, the District gained the advantage of lower interest rates and restructure this debt. In July 2016, the WIFA loan for the Riverside well was paid in full with an outstanding debt balance of $37.8 million as of June 30, 2017.

 

Bond Rating – In 2016, Moody’s Investment Service affirmed Aa3 on senior liens and A1 on subordinate liens. The 2016, Fitch Rating Agency affirmed the AA- bond rating on the 2009 bonds and A+ bond rating on the 2011 bonds.

 

 

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  • © Metropolitan Domestic Water Improvement District
  • 6265 N. La Cañada, Tucson, Arizona 85704
  • 520-575-8100 (office)
  • 520-575-8454 (fax)

Office hours: Monday – Thursday 7:30am - 5:30pm and Friday 7:30am - 12 noon