Mark Carlson

This Strategic Performance Report for Fiscal Year 2025 details the Union Sanitary District's progress and initiatives. The report is structured around strategic objectives encompassing Customer, Finance, Internal Process, and Employee Growth and Development, with a strong emphasis on Safety. Key focus areas include providing reliable, high-quality service, ensuring fiscal responsibility and maintaining a AAA credit rating, optimizing internal processes for asset management and critical infrastructure projects like the Enhanced Treatment and Site Upgrade (ETSU), and fostering a highly competent, safe, and collaborative workforce. The overarching goal is to protect human health and the environment, ensuring a strong and sustainable future for the Tri-Cities and all stakeholders.

This strategic plan for the Union Sanitary District outlines short-term and long-term objectives to enhance services and ensure environmental sustainability over a five-year period (FY2025-FY2029). The plan is structured around a Balanced Scorecard method, focusing on four key perspectives: Customer, Financial, Internal Processes, and Employee Growth and Development. Key initiatives include infrastructure upgrades, adopting new technologies, ensuring regulatory compliance, strengthening workforce development, and implementing a 20-year capital improvement program, notably the Enhanced Treatment and Site Upgrade (ETSU) Program. The overarching goal is to deliver exceptional wastewater treatment services, promote a sustainable and healthier environment for the local community, and ensure reliable and cost-effective service for the Tri-Cities.

The audit of the Union Sanitary District's financial statements for the year ended June 30, 2018, revealed several key findings. Management's accounting policies and estimates, particularly concerning net pension liability and Other Post-Employment Benefit Annual Required Contribution, were evaluated and deemed reasonable. An adjustment was made to correct beginning balances related to costs that were initially capitalized but later determined to be expensed. There were discussions regarding new accounting standards, including GASB Statement No. 75, 81, 85, and 86, which were effective for the fiscal year 2017-2018 audit, as well as upcoming standards for future fiscal years.

The Union Sanitary District's Fiscal Year 2016 budget presentation to the Board of Directors focused on the operation and maintenance of infrastructure assets, capital project construction, planning, and technology use. Key discussion points included a 5.7% increase to the existing Sewer Service Charge for Single Family Dwellings, raising it to $377, and an increase to $326 for Multi-family Dwellings. The budget also addressed the funding of capital projects through a mix of pay-as-you-go and debt financing, with projected revenues and expenditures for the Sewer Service Fund and Capacity Fund. Additionally, the budget outlined specific projects planned for FY '16, such as administrative and regulatory initiatives, studies, and Hayward Marsh projects.

The Enhanced Treatment & Site Upgrade (ETSU) Program provides Union Sanitary District (USD) with a practical, long-term plan for its Wastewater Treatment Plant (WWTP) over the next 20 to 40 years. Key strategic pillars include upgrading secondary treatment processes to enhance capacity and meet anticipated nutrient regulations, developing new effluent management options due to the anticipated shutdown of the Hayward Marsh, addressing seismic upgrades and repairs for existing buildings, and managing limited onsite land. The program also considers the implications of organics processing requirements (SB-1383) and the impacts of sea level rise. The plan aims to implement critical near-term projects while ensuring compatibility and flexibility with the WWTP's long-term vision, thereby avoiding stranded assets and undesirable space planning ramifications.