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 $99 million, which is funded by service charges, grants, State loans, and contributions from other agencies, and consists of the following:
The $45 million for wastewater and reclamation operations (excluding PWM) includes:
The Agency is projected to have $6 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 $69 million and the ten-year plan totals $139 million (excluding $123 million of unfunded projects for future years) which consists of:
|Project||10 Year Amounts|
|Pure Water Monterey||$54 million|
|Grant Funded||$10 million|
|Pump Stations||$30 million|
|Plant Assets||$29 million|
|Outfall / Other||$12 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 a Comprehensive Annual Financial Report (CAFR) which has won awards from GFOA. The Popular Annual Financial Report (PAFR) is a summary of the CAFR.
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 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 Report||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, all of which are contained here and summarized 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
25% of annual operating and capital budgets is the current recommended level
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:
CalPERs amortizes M1W's 3 @ 60 plan unfunded liability over 28 years
List of commonly used terms in their actuarials (provided by CalPERS)
M1W's funding status for its 3 @ 60 plan is 76% and 96-98% for its other plans
Pension Liability Summary
Provides trends on contributions, funding, CalPERS rate of return and liabilities
Net UAL (Unfunded Actuarial Liability) $28 million, termination liability $93 million
CalPERS Valuation Reports
Search with our prior name (Monterey Regional Water Pollution Control Agency)
M1W Normal Cost Rate is 13% for the 3 @ 60 plan and 7-9% for its other plans
CalPERS YTD Performance and Investment Allocation
Included in Investment Committee's "Performance and Risk" monthly report
A 7.15% rate of return is assumed, with 6.2% projected for the next ten years.
PEPRA (California Public Employees' Pension Reform Act) - @ 62 plan
Describes how PEPRA changes retirement benefits for new members
Employee Rates are 8.2% for the 3 @ 60 plan, 6.5-7.2% for its other plans.
Select "Public Employer Types" then "Special Districts" then "Monterey One Water"
Estimated 18-19 CalPERS payments 18-19: $3 million, $1.4 million for 3 @ 60 plan UAL
Additional Information on the Pension Plans:
|Liability Plan Volatility 3 @ 60 / Other Plans||16 / 0.4-0.6|
|Estimated UAL Payment FY 24-25||$2.3 million|
|Savings with 10 / 15 Year Payment Plans||$6-11 million|
|Change in UAL with 1% Change in Rate||$9-12 million|
|FY 20-21 Normal Cost 3 @ 60 / Other Plans||15.3% / 7.5-10.3%|
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