Reduced Budget on Track

Reduced Budget Strategy on Track

The Water Authority’s adopted budget for fiscal years 2012 and 2013 is $1.42 billion. The budget is 16 percent less than the previous two-year budget and reflects several significant changes, including reduced water sales volumes, lower levels of spending on construction as the agency’s $3.5 billion Capital Improvement Program winds down, and the Water Authority transitioning from a “building” agency into an “operating” agency as new, major facilities are brought online.

During the year, the Water Authority implemented a number of cost-containment actions contained in the budget. These measures included the continuation of the largest workforce reduction in the agency’s history. By 2014, Water Authority staff will be reduced 16 percent from 2008 levels. In addition, the budget included a reduction in the water conservation program (to right-size conservation spending in light of significantly reduced water use in the region), decreases in school education and small-contractor outreach programs, decreases in travel and training expenses, and reductions in internal support services for finance, human resources, and information technology.

The agency also consolidated the Engineering and Right of Way departments, and the Public Affairs Department and the Water Conservation Program. Employees also made increased contributions to their pensions to help reduce benefit costs.

These measures, in conjunction with agency-wide fiscal discipline, kept the Water Authority on target with its reduced budget throughout the year.