PUB00144 ‎(2)‎

• Year: 2006
• Title: Western States Water Council - Breckenridge, CO., July 19-21, 2006
• CWCB Section: Administration
• Description: Western States Water Council - Breckenridge, CO., July 19-21, 2006
• Publications - Doc Type: Water Policy

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Western States Water Council
Executive Committee Minutes

Washington, D.C.
March 26, 2006

You will note some changes in operating expenses. There is a change in contracted services - -
an increase of $7,500. The thought there is that we are without one of our positions, which is the Legal
Counsel position (the attorney position). Since that position has been patched together since Chad's
departure, it is felt that perhaps we should try to restore that position. This would be done in a couple of
steps. The first step would be to provide funding to the staff to bring on legal interns. Through the use
of these interns, the Council would be able to provide more service to the organization, and to allow for
training so that we have an opportunity to test them. In the following fiscal year, that position would
then be restored full time. The thought is that someone from the intern pool could then possibly be hired
to fill the position.

Other changes reflected in the budget deal mainly with cost of living type increases. There is an
increase projected for salaries and benefits based on the policy of establishing the Council consistent
with the pay schedule for the State of Utah, which is projecting a 3.5% increase in salaries and an
accompanying 2.5% cost increase in benefits. The total expense budget for FY07 would then be
$452,000.

Jack recommended and moved the Executive Committee adopt the proposed FY07 budget as set
forth on the budget sheet. The budget was unanimously approved.

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Two scenarios were put forward in terms of the financial projections. The first assumes a 10%
increase in assessment revenues and we also assumed moving back into having the full-time legal
position. Thus, there follows a bump in payroll benefits and the attendant items, and a fairly significant
decrease in contracted services. The total revenues jump by about $70,000 and the expenses increase by
about a similar amount. The spreadsheet indicates that there has not been an increase in dues since 1998.

With the loss of Chad's position as Legal Counsel, the thought was that the staff could absorb the
duties temporarily - - for the short term - - and it could be accommodated with the assistance of the WGA
contract services. This is a patchwork approach. It has been the thought of the Management
Subcommittee and the staff that this was a temporary situation. The organization needs to be able to
restore its full capacity there, especially with the kind of activities we are doing with our role in water
resources management nationwide, as well as our success in engaging ourselves with new initiatives.

Under that assumption, we start eroding the reserves fairly significantly. The reserves are based
on the policy of maintaining a half year's budget in reserve. It is not unreasonable to hold a half year in
reserve for a non-profit volunteer organization. Some ask, why is a reserve necessary at all? Over the
last decade or so, there has been variability in state budgets and this provides a cushion for those times
when we end up with a number of states going to associate membership status. There is also the
possibility that a state will drop out for financial reasons or philosophical reasons or whatever. Thus, it is
prudent to maintain reserves.

This financial projection includes two alternative scenarios. The first would increase the dues in
FY08 by 10%, which would mean dues would be increased by $2,500 per state. Under this scenario,
continuing to assume the proposed 2008 budget, the reserves begin to decline the following fiscal year by
$10,000.

. Jack noted the Council may wish to establish a higher level of increase, perhaps as much as 20%,
to the dues. This scenario is included in the financial projections spreadsheet as Alternative Scenario 2.

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