Common use of Budget Overview Clause in Contracts

Budget Overview. The QSA JPA Commission adopts an annual budget for the payment of environmental costs for QSA water transfer mitigation projects in the Imperial Valley. The budget is developed by IID in coordination with the QSA Implementation Team (IT), which consists of CDFW, IID, and the U.S. Fish and Wildlife Service (USFWS). The annual budget provides revenues generated from agency contributions and interest earnings to meet anticipated fiscal year (FY) mitigation expenditures. Mitigation projects are implemented by IID under direction from the IT. Specific mitigation measures are implemented per environmental permitting requirements and involve various timeframes for completion. Detailed QSA JPA annual spending through FY 2020 by mitigation task is provided in Appendix 1. The JPA Agreement provides a schedule of annual agency contributions that are due on December 31 of each calendar year. As a means of managing cash flow requirements for future mitigation activities, the JPA Agreement permits agencies to adjust their payment schedules by rescheduling future payments from outer years to the near term. Under the Modification of Payment Schedules Pursuant to the QSA JPA Agreement (Advanced Funding Agreement), advanced payments by the agencies are due on July 1 and are discounted at six percent from the date of the scheduled payment to the date of the advance. The QSA JPA has advanced payments from the original JPA Agreement payment schedules to cover expected environmental mitigation expenses. In 2007, the water agencies modified their payment schedules to advance $13.2 million in FYs 2007 and 2008 to cover mitigation requirements through 2013. In 2015, the Board of Directors of the individual water agencies authorized advanced payments to the QSA JPA totaling $40.5 million, consisting of $10 million from the Water Authority, $5 million from CVWD, and $25.5 million from IID, scheduled over six years beginning in FY 2016. The remaining payments per the 2015 Advanced Funding Agreement are shown in Table 1. Table 1. Water Agency Remaining Payment Schedule WATER CVWD IID AUTHORITY TOTAL PAYMENTS Year Due 12/31 Due 7/1 Due 12/31 Due 7/1 Due 12/31 Due 7/1 Calendar Year Fiscal Year 2021 $2,697,555 $2,885,115 $1,500,000 $3,801,632 $10,884,302 $7,191,051 2022 $2,706,745 $3,309,240 $1,517,597 $7,533,582 $10,884,302 2023 $2,733,006 $4,746,284 $1,221,837 $8,701,127 $7,533,582 2024 $151,876 $4,888,673 $1,345,439 $6,385,989 $8,701,127 2025 $565,131 $5,035,333 $1,047,693 $6,648,157 $6,385,989 2026 $5,186,393 $5,186,393 $6,648,157 2027 $5,341,985 $5,341,985 $5,186,393 2028 $5,502,244 $5,502,244 $5,341,985 2029 $5,130,911 $5,130,911 $5,502,244 2030 $5,308,589 $5,308,589 $5,130,911 2031 $5,322,392 $5,322,392 $5,308,589 2032 $4,556,924 $4,556,924 $5,322,392 2033 $6,005,020 $6,005,020 $4,556,924 2034 $5,643,731 $5,643,731 $6,005,020 2035 $5,143,974 $5,143,974 $5,643,731 2036 $5,143,974 Total $8,854,313 $0 $74,006,808 $1,500,000 $8,934,198 $0 $93,295,320 $100,486,371 SECTION 3: REVIEW OF ACTIVITIES IN FY 2021 AND FY 2020 On June 9, 2020, the QSA JPA Commission adopted the FY 2021 budget in the amount of $14,994,760. Table 2 shows the FY 2021 budgeted and projected spending by mitigation task, based on approved invoice totals to date and remaining fiscal year projections by IID. Major expenses in the FY 2021 budget include implementing the Salton Sea air quality mitigation program (Task 24), the managed xxxxx habitat (Task 8), and the QSA IT biologists (Task 2). Table 2. Detailed FY 2021 Expenditures TASK TASK DESCRIPTION BUDGETED FY 2021 PROJECTED FY 2021 BUDGET SAVINGS 2 QSA Implementation Team Biologists $1,093,590 $1,013,357 $(80,233) 3 Environmental Reporting and Monitoring $540 - $(540) 4 Salton Sea Salinity and Elevation Program $16,330 $16,330 - 6 Tamarisk Scrub Habitat - Surveys and Mitigation $72,740 $(72,740) 8 Drain Habitat (Aquatic) – Create, Manage, Monitor "Managed Xxxxx" $4,860,210 $3,500,000 $(1,360,210) 10/10A Worker Education Program Covered Species Training and Manual $640 - $(640) 11 Desert Habitat Survey and Mapping of Right of Way $33,950 - $(33,950) 15 Pre-Construction Activity Burrowing Owl Surveys and Relocation $3,290 - $(3,290) 16 Burrowing Owl Relative Abundance and Distribution Surveys $245,890 $25,000 $(220,890) 17 Farmer and Public Education Program $7,300 $3,200 $(4,100) 18 Desert Pupfish Abundance and Distribution Study $6,400 $21,000 $14,600 19/19A Pupfish Selenium Drain Studies $310,450 $200,000 $(110,450) 20 Pupfish Construction and Maintenance Conservation Measures $253,390 $10,000 $(243,390) 23 Covered Species Baseline & Monitoring Surveys $171,870 - $(171,870) 24 Salton Sea Air Quality $7,785,200 $6,800,000 $(985,200) 35 Management and Planning $12,730 - $(12,730) 36 JPA Audit Fees $10,770 $10,770 - 37 JPA Bank Fees $3,000 $3,000 - 38 Financial Advisor $16,000 $16,000 - 42 Brown Pelican - Sea $58,540 $5,000 $(53,540) 44 Pupfish Refugium $31,930 $5,000 $(26,930) Total $14,994,760 $11,628,657 $(3,366,103) The projected budget savings and delayed expenditures for FY 2021 of $3,366,103 is mostly due to the deferral of items under the air quality mitigation program (Task 24), managed xxxxx (Task 8) and postponement of pupfish conservation measures (Task 20) and burrowing owl relative abundance and distribution surveys (Task 16). Table 3 summarizes the FY 2021 budget projections. Table 3. FY 2021 Budget Summary FY 2021 BUDGET PROJECTED FY 2021 EXPENDITURES PROJECTED FY 2021 SAVINGS/DELAYS $ 14,994,760 $ 11,628,657 $ 3,366,103 On January 13, 2020 the QSA JPA Commission accepted an audit of its basic financial statements by Xxxxx Xxxx Certified Public Accountants for fiscal years ending June 30, 2020 and 2019. Audited FY 2020 environmental mitigation expenditures totaled $15,087,064. Based upon the audited cash balance of $34,226,950 at the end of FY 2020, FY 2021 projected agency contributions and interest earnings of $7,261,951, and projected FY 2021 budget spending of $11,628,657, the QSA JPA expects to have a positive cash balance of $29,860,244 at the end of FY 2021 (Table 4). Table 4. FY 2021 Projected Fund Balance DESCRIPTION CASH FLOW FY 2020 Audited Fund Balance (6-30-20) $34,226,950 Mitigation Contributions $7,191,051 Sources $7,261,951 Interest Income $70,900 Uses Environmental Mitigation ($11,628,657) FY 2021 Projected Fund Balance (6-30-21) $29,860,244

Budget Overview. The QSA JPA Commission adopts an annual budget for the payment of environmental costs for QSA water transfer mitigation projects in the Imperial Valley. The budget is developed by IID in coordination with the QSA Implementation Team (IT), which consists of CDFW, IID, and the U.S. Fish and Wildlife Service (USFWS). The annual budget provides revenues generated from agency contributions and interest earnings to meet anticipated fiscal year (FY) mitigation expenditures. Mitigation projects are implemented by IID under direction from the IT. Specific mitigation measures are implemented per environmental permitting requirements and involve various timeframes for completion. Detailed QSA JPA annual spending through FY 2020 2018 by mitigation task is provided in Appendix 1. The JPA Agreement provides a schedule of annual agency contributions that are due on December 31 of each calendar year. As a means of managing cash flow requirements for future mitigation activities, the JPA Agreement permits agencies to adjust their payment schedules by rescheduling future payments from outer years to the near term. Under the Modification of Payment Schedules Pursuant to the QSA JPA Agreement (Advanced Funding Agreement), advanced payments by the agencies are due on July 1 and are discounted at six percent from the date of the scheduled payment to the date of the advance. The QSA JPA has advanced payments from the original JPA Agreement payment schedules to cover expected environmental mitigation expenses. In 2007, the water agencies modified their payment schedules to advance $13.2 million in FYs 2007 and 2008 to cover mitigation requirements through 2013. In 2015, the Board of Directors of the individual water agencies authorized advanced payments to the QSA JPA totaling $40.5 million, consisting of $10 million from the Water Authority, $5 million from CVWD, and $25.5 million from IID, scheduled over six years beginning in FY 2016. The remaining payments per the 2015 Advanced Funding Agreement are shown in Table 1. Table 1. Water Agency Remaining Payment Schedule WATER CVWD IID AUTHORITY TOTAL PAYMENTS Water Authority Total Payments Year Due 12/31 Due 7/1 Due 12/31 Due 7/1 Due 12/31 Due 7/1 By Calendar Year By Fiscal Year 2019 $745,350 $1,000,000 $2,473,610 $2,800,000 $1,060,053 $1,750,000 $9,829,013 $20,121,404 2020 $738,869 $2,726,346 $1,825,000 $1,050,836 $850,000 $7,191,051 $9,829,013 2021 $2,697,555 $2,885,115 $1,500,000 $3,801,632 $10,884,302 $7,191,051 2022 $2,706,745 $3,309,240 $1,517,597 $7,533,582 $10,884,302 2023 $2,733,006 $4,746,284 $1,221,837 $8,701,127 $7,533,582 2024 $151,876 $4,888,673 $1,345,439 $6,385,989 $8,701,127 2025 $565,131 $5,035,333 $1,047,693 $6,648,157 $6,385,989 2026 $5,186,393 $5,186,393 $6,648,157 2027 $5,341,985 $5,341,985 $5,186,393 2028 $5,502,244 $5,502,244 $5,341,985 2029 $5,130,911 $5,130,911 $5,502,244 2030 $5,308,589 $5,308,589 $5,130,911 2031 $5,322,392 $5,322,392 $5,308,589 2032 $4,556,924 $4,556,924 $5,322,392 2033 $6,005,020 $6,005,020 $4,556,924 2034 $5,643,731 $5,643,731 $6,005,020 2035 $5,143,974 $5,143,974 $5,643,731 2036 $5,143,974 Total $8,854,313 10,338,532 $0 1,000,000 $74,006,808 79,206,764 $1,500,000 6,125,000 $8,934,198 11,045,087 $0 2,600,000 $93,295,320 110,315,384 $100,486,371 130,436,788 SECTION 3: REVIEW OF ACTIVITIES IN FY 2021 2019 AND FY 2020 2018 On June 9May 31, 20202018, the QSA JPA Commission adopted the FY 2021 2019 budget in the amount of $14,994,76015,129,270. Table 2 shows the FY 2021 budgeted 2019 approved and projected spending by mitigation taskbudget spending, based on approved invoice totals to date and remaining fiscal year projections by IID. Projected FY 2019 expenditures by mitigation task are shown in Table 2. There have been no amendments to the budget, and the total FY 2019 budget is expected to remain the same through the end of the fiscal year. Major expenses in the FY 2021 2019 budget include implementing the Salton Sea air quality mitigation program (Task 24), the managed xxxxx habitat (Task 8), and the QSA IT implementation team biologists (Task 2). Table 2. Detailed FY 2021 Expenditures TASK TASK DESCRIPTION BUDGETED FY 2021 PROJECTED FY 2021 BUDGET SAVINGS 2 QSA Implementation Team Biologists $1,093,590 $1,013,357 $(80,233) 3 Environmental Reporting and Monitoring $540 - $(540) 4 Two task items were over budget: Task 5 – Salton Sea Salinity mitigation water, and Elevation Program $16,330 $16,330 - 6 Tamarisk Scrub Habitat - Surveys and Mitigation $72,740 $(72,740) 8 Drain Habitat (Aquatic) Task 16 – Create, Manage, Monitor "Managed Xxxxx" $4,860,210 $3,500,000 $(1,360,210) 10/10A Worker Education Program Covered Species Training and Manual $640 - $(640) 11 Desert Habitat Survey and Mapping of Right of Way $33,950 - $(33,950) 15 Pre-Construction Activity Burrowing Owl Surveys and Relocation $3,290 - $(3,290) 16 Burrowing Owl Relative Abundance and Distribution Surveys $245,890 $25,000 $(220,890) 17 Farmer and Public Education Program $7,300 $3,200 $(4,100) 18 Desert Pupfish Abundance and Distribution Study $6,400 $21,000 $14,600 19/19A Pupfish Selenium Drain Studies $310,450 $200,000 $(110,450) 20 Pupfish Construction and Maintenance Conservation Measures $253,390 $10,000 $(243,390) 23 Covered Species Baseline & Monitoring Surveys $171,870 - $(171,870) 24 Salton Sea Air Quality $7,785,200 $6,800,000 $(985,200) 35 Management and Planning $12,730 - $(12,730) 36 JPA Audit Fees $10,770 $10,770 - 37 JPA Bank Fees $3,000 $3,000 - 38 Financial Advisor $16,000 $16,000 - 42 Brown Pelican - Sea $58,540 $5,000 $(53,540) 44 Pupfish Refugium $31,930 $5,000 $(26,930) Total $14,994,760 $11,628,657 $(3,366,103) The projected budget savings and delayed expenditures for FY 2021 of $3,366,103 is mostly due to the deferral of items under the air quality mitigation program (Task 24), managed xxxxx (Task 8) and postponement of pupfish conservation measures (Task 20) and burrowing owl relative abundance and distribution surveys (Task 16). Table 3 summarizes the FY 2021 budget projections. Table 3. FY 2021 Budget Summary FY 2021 BUDGET PROJECTED FY 2021 EXPENDITURES PROJECTED FY 2021 SAVINGS/DELAYS $ 14,994,760 $ 11,628,657 $ 3,366,103 On January 13, 2020 the QSA JPA Commission accepted an audit of its basic financial statements by Xxxxx Xxxx Certified Public Accountants for fiscal years ending June 30, 2020 and 2019. Audited FY 2020 environmental mitigation expenditures totaled $15,087,064. Based upon the audited cash balance of $34,226,950 at the end of FY 2020, FY 2021 projected agency contributions and interest earnings of $7,261,951surveys, and projected FY 2021 budget spending of $11,628,657, the QSA JPA expects to have a positive cash balance of $29,860,244 at the end of FY 2021 (Table 4). Table 4. FY 2021 Projected Fund Balance DESCRIPTION CASH FLOW FY 2020 Audited Fund Balance (6-30-20) $34,226,950 Mitigation Contributions $7,191,051 Sources $7,261,951 Interest Income $70,900 Uses Environmental Mitigation ($11,628,657) FY 2021 Projected Fund Balance (6-30-21) $29,860,244additional expenditures were covered by savings from other tasks.

Budget Overview. The QSA JPA Commission adopts an annual budget for the payment of environmental costs for QSA conserved water transfer mitigation projects in the Imperial Valley. The budget is developed by IID in coordination with the QSA Implementation Team (IT), which consists of CDFW, IID, and the U.S. Fish and Wildlife Service (USFWS). The annual budget provides revenues generated from agency contributions and interest earnings to meet anticipated fiscal year (FY) mitigation expenditures. Mitigation projects are implemented by IID under direction from the IT. Specific mitigation measures are implemented per environmental permitting requirements and involve various timeframes for completion. Detailed QSA JPA annual spending through FY 2020 2022 by mitigation task is provided in Appendix 1. The JPA Agreement provides a schedule of annual agency contributions that are due on December 31 of each calendar year. As a means of managing cash flow requirements for future mitigation activities, the JPA Agreement permits agencies to adjust their payment schedules by rescheduling future payments from outer years to the near term. Under the Modification of Payment Schedules Pursuant to the QSA JPA Agreement (Advanced Funding Agreement), advanced payments by the agencies are due on July 1 and are discounted at six percent from the date of the scheduled payment to the date of the advance. The QSA JPA has advanced payments from the original JPA Agreement payment schedules to cover expected environmental mitigation expenses. In 2007, the water agencies modified their payment schedules to advance $13.2 million in FYs 2007 and 2008 to cover mitigation requirements through 2013. In 2015, the Board of Directors (BOD) of the individual water agencies authorized advanced payments to the QSA JPA totaling $40.5 million, consisting of $10 million from the Water Authority, $5 million from CVWD, and $25.5 million from IID, scheduled over six years beginning in FY 2016. In 2022, IID’s BOD authorized a payoff of $48.5 million for its remaining payments to the QSA JPA, consistent with the QSA JPA Agreement. The remaining payments per the 2015 Advanced Funding Agreement are shown in Table 1. Table 1. Water Agency Remaining Payment Schedule Schedule‌ WATER CVWD IID IID1 AUTHORITY TOTAL PAYMENTS Year Due 12/31 Due 7/1 Due 12/31 Due 7/1 Due 12/31 Due 7/1 Calendar Year Fiscal Year 2021 $2,697,555 $2,885,115 $1,500,000 $3,801,632 $10,884,302 $7,191,051 2022 $2,706,745 $3,309,240 $1,517,597 $7,533,582 $10,884,302 2023 $2,733,006 $4,746,284 $1,221,837 $8,701,127 3,954,843 $7,533,582 4,224,342 2024 $151,876 $4,888,673 $1,345,439 $6,385,989 1,497,315 $8,701,127 3,954,843 2025 $565,131 $5,035,333 $1,047,693 $6,648,157 1,612,824 $6,385,989 1,497,315 2026 $5,186,393 $5,186,393 $6,648,157 2027 $5,341,985 $5,341,985 $5,186,393 2028 $5,502,244 $5,502,244 $5,341,985 2029 $5,130,911 $5,130,911 $5,502,244 2030 $5,308,589 $5,308,589 $5,130,911 2031 $5,322,392 $5,322,392 $5,308,589 2032 $4,556,924 $4,556,924 $5,322,392 2033 $6,005,020 $6,005,020 $4,556,924 2034 $5,643,731 $5,643,731 $6,005,020 2035 $5,143,974 $5,143,974 $5,643,731 2036 $5,143,974 1,612,824 Total $8,854,313 3,450,013 $0 $74,006,808 $1,500,000 $8,934,198 0 $0 $93,295,320 3,614,969 $100,486,371 SECTION 3: REVIEW OF ACTIVITIES IN FY 2021 AND FY 2020 On June 90 $7,064,982 $11,289,324 1 The schedule has been modified to reflect IID’s September 29, 20202022, early payoff ($48.5 million) of its funding commitment to the QSA JPA Commission adopted the FY 2021 budget in the amount of $14,994,760. Table 2 shows the FY 2021 budgeted and projected spending by mitigation task, based on approved invoice totals to date and remaining fiscal year projections by IID. Major expenses in the FY 2021 budget include implementing the Salton Sea air quality mitigation program (Task 24), the managed xxxxx habitat (Task 8), and the QSA IT biologists (Task 2). Table 2. Detailed FY 2021 Expenditures TASK TASK DESCRIPTION BUDGETED FY 2021 PROJECTED FY 2021 BUDGET SAVINGS 2 QSA Implementation Team Biologists $1,093,590 $1,013,357 $(80,233) 3 Environmental Reporting and Monitoring $540 - $(540) 4 Salton Sea Salinity and Elevation Program $16,330 $16,330 - 6 Tamarisk Scrub Habitat - Surveys and Mitigation $72,740 $(72,740) 8 Drain Habitat (Aquatic) – Create, Manage, Monitor "Managed Xxxxx" $4,860,210 $3,500,000 $(1,360,210) 10/10A Worker Education Program Covered Species Training and Manual $640 - $(640) 11 Desert Habitat Survey and Mapping of Right of Way $33,950 - $(33,950) 15 Pre-Construction Activity Burrowing Owl Surveys and Relocation $3,290 - $(3,290) 16 Burrowing Owl Relative Abundance and Distribution Surveys $245,890 $25,000 $(220,890) 17 Farmer and Public Education Program $7,300 $3,200 $(4,100) 18 Desert Pupfish Abundance and Distribution Study $6,400 $21,000 $14,600 19/19A Pupfish Selenium Drain Studies $310,450 $200,000 $(110,450) 20 Pupfish Construction and Maintenance Conservation Measures $253,390 $10,000 $(243,390) 23 Covered Species Baseline & Monitoring Surveys $171,870 - $(171,870) 24 Salton Sea Air Quality $7,785,200 $6,800,000 $(985,200) 35 Management and Planning $12,730 - $(12,730) 36 JPA Audit Fees $10,770 $10,770 - 37 JPA Bank Fees $3,000 $3,000 - 38 Financial Advisor $16,000 $16,000 - 42 Brown Pelican - Sea $58,540 $5,000 $(53,540) 44 Pupfish Refugium $31,930 $5,000 $(26,930) Total $14,994,760 $11,628,657 $(3,366,103) The projected budget savings and delayed expenditures for FY 2021 of $3,366,103 is mostly due to the deferral of items under the air quality mitigation program (Task 24), managed xxxxx (Task 8) and postponement of pupfish conservation measures (Task 20) and burrowing owl relative abundance and distribution surveys (Task 16). Table 3 summarizes the FY 2021 budget projections. Table 3. FY 2021 Budget Summary FY 2021 BUDGET PROJECTED FY 2021 EXPENDITURES PROJECTED FY 2021 SAVINGS/DELAYS $ 14,994,760 $ 11,628,657 $ 3,366,103 On January 13, 2020 the QSA JPA Commission accepted an audit of its basic financial statements by Xxxxx Xxxx Certified Public Accountants for fiscal years ending June 30, 2020 and 2019. Audited FY 2020 environmental mitigation expenditures totaled $15,087,064. Based upon the audited cash balance of $34,226,950 at the end of FY 2020, FY 2021 projected agency contributions and interest earnings of $7,261,951, and projected FY 2021 budget spending of $11,628,657, the QSA JPA expects to have a positive cash balance of $29,860,244 at the end of FY 2021 (Table 4). Table 4. FY 2021 Projected Fund Balance DESCRIPTION CASH FLOW FY 2020 Audited Fund Balance (6-30-20) $34,226,950 Mitigation Contributions $7,191,051 Sources $7,261,951 Interest Income $70,900 Uses Environmental Mitigation ($11,628,657) FY 2021 Projected Fund Balance (6-30-21) $29,860,244JPA.