Angela Crespi

This financial plan proposes a biennial budget for fiscal years 2026/27 and 2027/28, alongside water rates and charges for calendar years 2027 and 2028, and a ten-year financial forecast. It details key budget drivers and incremental drivers, including increased capital improvement projects, critical operating equipment replacement, additional staffing, and funding for the 45-MGD Pure Water Southern California Stage 1 project. The plan projects overall rate increases and outlines expenditures, new position requests, and property tax considerations to ensure long-term financial stability and infrastructure development.

The meeting, held jointly with the Administration & Finance Committee, focused heavily on the review and discussion of the MWDOC 2nd Draft Budget for Fiscal Years 2026-27 and 2027-28. Key financial aspects discussed included proposed modest increases to retail meter service rates and the Groundwater Customer Charge. Revenue projections, including Core, Choice, and outside funding for Water Use Efficiency (WUE) programs, were reviewed. Expense highlights centered on increases in Consulting Services, Building Expenses, and Employee Salaries/Benefits, with specific mention of funds allocated for succession planning in FY 2027-28. The committee also received a presentation regarding the potential benefits of membership in Sustain Southern California. Items incorporated into the 2nd Draft Budget included proposed membership in the Orange County Taxpayers Association and proposed Director compensation adjustments based on CPI estimates. Items not included but presented for discussion included a potential MWDOC Water Reliability Study Update and the Sustain Southern California Membership.

The meeting included standard opening procedures such as a moment of silence and the Pledge of Allegiance, followed by public comments. Agenda items addressed included determining the need to agendize late-arising items and reviewing public records distributed less than 72 hours prior to the meeting. The consent calendar addressed the approval of various committee meeting minutes from January 2026, ratification of Treasurer's Reports for January and February (including cash/investment reports up to December 31, 2025), and the filing of financial statements for the period ending December 31, 2025. Action items covered authorizing the President to vote on amended Independent Special Districts of Orange County (ISDOC) bylaws and approving a contract change order and licensing costs for the Enterprise Resource Planning (ERP) system. Information items included the General Manager's Report for February and general information updates.

The meeting agenda included a presentation on the Metropolitan Biennial Budget Overview for Fiscal Years 2026-27 and 2027-28, detailing proposed appropriations, rate increases of 9.5% for CY 2027 and CY 2028, and funding drivers like the Base Capital Improvement Program and the 45-MGD Stage 1 Pure Water project. Discussion items covered Federal, State, Legal/Regulatory, and County Legislative activities, along with member agency input regarding Metropolitan Committee participation. The action item focused on adopting a support position for Senate Bill 872 concerning climate change funding priorities. Information items addressed Metropolitan items critical to Orange County, including finances, water supply conditions, water quality updates, Colorado River issues, and Delta Conveyance activities.

The meeting commenced with introductions and housekeeping items, including emphasizing the importance of correct screen names and interactive engagement. A key discussion point involved identifying the defining strengths of the current workforce, with attendees highlighting dedication, resilience, and expertise. The group shared good news and announcements, including the successful first annual Inland Empire Water Workforce Summit held on February 5th, which featured labor market information, a best practices panel, and testimonials from former interns who secured full-time positions. Further updates covered the launch of a new water quality pathway CTE program in LA Unified and progress on a CTE program with Orange Unified School District. Additionally, San Bernardino Valley College announced the approval of its bachelor's degree for future utility leaders, with an official launch date set for Fall 2026. A student researcher also requested participation from water agency staff in a dissertation survey regarding internal workforce development support.