Page 55 - Yucaipa Valley Water District

Director Memorandum No. 18-022 Page 9 of 22

4.6 Annual Budgeting and Expenditure Approval.

4.6.1 The fiscal year of the GC shall be July 1 through June 30. The GC
shall develop, circulate, and approve an annual budget for the funding of bringing imported water
supply to the Basin, and for the maintenance and repair of groundwater recharge or water
conveyance facilities serving replenishment of the Basin. The Budget shall be prepared by a
Budget Committee, which shall consist of three (3) member Parties of the GC appointed by a
qualifying vote of at least 80% of the weighted Equitable Allocation, no later than January 31 of
the fiscal year prior to the one for which the budget is to operate. The Budget Committee shall
coordinate with BTAC and Valley District as the State Water Project Contractor, to determine the
likely allocation of available State Water Project imported water supplies, and other available non-
native sources of imported water, the likely unit cost of such imported water, and the recharge
needs of the Basin, in terms of quantities of water, locations where Basin conditions would most
benefit from imported recharge, condition and availability of facilities to accomplish such
recharge, and cost. From these sources, the Budget Committee shall prepare a budget that
recommends all of the following:

(a) the amount of imported water supplies proposed to be bought or
otherwise acquired by GC members in the coming year;

(b) the recommended application or distribution of such imported water
supplies to various parts of the Basin;

(c) the estimated cost of all ongoing maintenance, repair, and operation
costs for then-existing groundwater recharge and conveyance facilities serving to replenish the
Basin;

(d) any administrative costs of the GC; and

(e) proposed allocation of all expenditures in the Budget among GC
members as their portion of the Cost Share based upon the Equitable Allocation Model.

4.6.2 No later than March 1 prior to the beginning of the year for which
the budget is to operate, the Budget Committee shall present and circulate to all GC members the
proposed Budget, for review and analysis. The circulated budget shall include the underlying
presumptions and worksheets upon which it is based. The Budget Committee, or its designee,
shall make itself reasonably available to respond promptly to any inquiries or information requests
regarding the proposed budget.

4.6.3 No later than sixty (60) days after presentation of the budget by the
Budget Committee, the GC shall meet to deliberate and pass upon the budget. The GC may accept,
reject, or modify in any way the budget as proposed by the Budget Committee. Adoption of the
budget shall require an eighty percent (80%) vote of the weighted Equitable Allocation, provided,
however, that if a segregable portion or portions of the budget can be identified which prevent the
overall budget from obtaining an eighty percent (80%) approval vote, the GC shall pass those
portions of the budget upon which an eighty percent (80%) majority can be achieved, and shall
refer those portions upon which approval cannot be obtained back to the Budget Committee for
further recommendation on how such portions might be eliminated, reduced in scope or cost, or

Yucaipa Valley Water District - February 6, 2018 - Page 55 of 175