The sections below provide a detailed look at M1W's financial strategies and award-winning financial reports. Click here for our "Budget in Brief," a two-page budget summary. Use the "CY" links for the most current report for each area.
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 (CIP) 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 CIP has been recognized by the CSMFO for excellence in reporting.
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 statistical section of the CAFR include:
Project opportunities with M1W can be found here. When submitting bids or proposals:
M1W's bonds were rated A+ by Standard and Poors (S&P) and Aa3 by Moody's. Required debt service coverage ratios for M1W are 125% per debt covenants and 170% per Agency policy. Key disclosures are listed below:
|Debt Summary||Disclosure Reports||EMMA Disclosure|
|Debt Policies||Credit Analysis||Website Disclaimer|
2012 Pension Bonds
Issued to pay off its previous CalPERS Side-Fund liability
2013 Infrastructure Bonds
Issued to refund the 2003 Infrastructure Bonds at a lower rate
2003 USBR Reclamation Loan
Issued to fund improvements for the Salinas Valley Reclamation Project
2017 State SRF Loan for PWM
Issued to fund construction of the Pure Water Monterey project
2020 Line of Credit
Issued to provide short-term funding for capital improvement projects
Energy / Vehicle Leases
Issued for the purchase of vehicles and the lighting retrofit program
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"
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