The sections below provide a detailed look at M1W's financial strategies and award-winning financial reports. For a quick look at our financials, click here for our "Budget in Brief," a two-page budget summary. For the most current report for each area listed, use the "CY" links.
Annual Operating and ten-year Capital Budgets are adopted for each Fiscal Year (FY) from July 1st through June 30th. These budgets have won awards from the Governmental Finance Officers Association (GFOA) and California Society of Municipal Finance Officers (CSMFO).
The total budget, including Pure Water Monterey (PWM), is $63 million, which is funded by service charges, sale of water, grants, State loans, and contributions from others agencies, and consists of:
The $63 million in expenses includes:
The Agency is projected to have $5 million of available reserves at the end of the fiscal year. The Agency conducts a fee study every three years to address its reserve levels and deferred maintenance and ensure its financial stability and stewardship.
The Capital Budget is designed to identify capital expenses for the next ten years and to plan appropriately for how to complete those projects within projected revenues.
The annual Capital Improvement Budget is $20 million and the ten-year plan totals $109 million (excluding $148 million of unfunded projects for future years) which consists of:
|Project||10 Year Amounts|
|Pure Water Monterey||$8 million|
|Grant Funded||$8 million|
|Pump Stations||$27 million|
|Plant Assets||$26 million|
|Outfall / Other||$18 million|
When determining the priority of proposed projects, staff evaluate them for urgency, feasibility, and for enhancements towards the community, health, and safety.
The Agency develops Comprehensive and Popular Annual Financial Reports (CAFR/PAFR) which have won awards from the GFOA.
Ten year financial trends in the CAFR include:
Project opportunities with M1W can be found here. When submitting bids or proposals:
M1W's bonds are rated A+ by Standard and Poors (S&P) and its debt coverage ratio for 17-18 was 144% (125% is required/170% coverage is recommended per policy). Key disclosures are listed below:
|Debt Summary||Disclosure Reports||EMMA Disclosure|
|Debt Policies||Credit Analysis||Website Disclaimer|
A summary of M1W's outstanding debt at June 30, 2018 totaling $75 million is below, with debt service for FY 2018-19 totaling $3.3 million and increasing to $7.5 million in FY 2019-20 as a result of the PWM loan.
2012 Pension Bonds
Matures 2026, interest rate 4.18%, annual debt service $0.8 million, balance $6.4 million
2013 Infrastructure Bonds
Matures 2026, interest rate 2.14%, annual debt service $1.1 million, balance $8.2 million
2003 USBR Reclamation Loan
Matures 2036, interest 0-7.6%, annual debt service $1.1 million, balance $12.1 million
2017 State SRF Loan for PWM
Matures 2049, interest rate 1%, annual debt service $4.2 million, balance $48.3 million
2016 Line of Credit for PWM
Matures 2019, interest rate variable, annual debt service, balance $0 million
Energy / Vehicle Leases
Matures 2022, interest rate 0-5%, annual debt service $0.1 million, balance $0.3 million
M1W establishes financial policies to provide a framework to prudently manage resources, ensure internal controls, and provide accountability to the public, as summarized here and listed individually below:
CIP / Budget
The Board approves any budget changes > $75,000 or to increase a fund's budget
125% debt service coverage is required, 170% coverage is recommended per policy
50% of annual operating budget and 10% of 10-year capital budget
Assets > $5,000 with lives > one year are capitalized, with estimated lives of 15-75 years
M1W's highly rated investment pools offer same day liquidity and diversified portfolios
Goods and services > $75,000 and public projects > $35,000 require board approval
Requirements vary depending on the type of property involved
Included in this section are the Agency's Investment Reports and its Investment Policy.
The report contains information on:
Click on the links below for information on pensions and compensation:
List of commonly used terms in their actuarials (provided by CalPERS)
Pension Liability Summary
Provides trends on contributions, funding, CalPERS rate of return and liabilities
CalPERS Valuation Reports
Search with our prior name (Monterey Regional Water Pollution Control Agency)
CalPERS YTD Performance and Investment Allocation
Included in Investment Committee's "Performance and Risk" monthly report
PEPRA (California Public Employees' Pension Reform Act) - 2 @ 62 plan
Describes how PEPRA changes retirement benefits for new members
Select "Public Employer Types" then "Special Districts" then "Monterey One Water"
Top 10 Facts:
|1. Employee Rates 3 @ 60 / Other Plans||8.2% / 6.5-7.2%|
|2. Employer Normal Cost 3 @ 60 / Other Plans||14.4% / 7.0-9.7%|
|3. Funding Status 3 @ 60 / Other Plans||76% / 96-98%|
|4. Net Unfunded (UAL) and Termination Liabilities||$28 / $93 million|
|5. Amortization Period for Liability 3 @ 60 / Others||28 / 13-18 years|
|6. Liability Plan Volatility 3 @ 60 / Other Plans||16 / 0.4-0.6|
|7. Employer UAL Payment FY 18-19 / 24-25||$1.4 / $2.3 million|
|8. Change in UAL with 1% Change in Rate||$9-12 million|
|9. UAL Savings - 10 / 15 Year Payment Plans||$6-11 million|
|10. Assumed / Projected CalPERS 10 year Return||7.15% / 6.20%|
These reports provide additional unaudited financial information to the Board and Public. Additional information on the annual financial reports filed with the State Controller's Office can be found here.
The interim financials include:
The Capacity Fee Reports show how impact fees collected from new residential or business development partially fund debt service and eligible projects in accordance with State reporting requirements.
7:30 a.m. to 5:30 p.m. Monday through Thursday
7:30 a.m. to 5:00 p.m. Fridays
5 Harris Court, Bldg D
Monterey, CA 93940