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. 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 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 ▇▇▇▇▇ habitat (Task 8), and the QSA IT biologists (Task 2). 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 ▇▇▇▇▇" $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 ▇▇▇▇▇ (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. $ 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 ▇▇▇▇▇ ▇▇▇▇ 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). Mitigation Contributions $7,191,051 Sources $7,261,951 Interest Income $70,900 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 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 2021 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. 2021 $2,697,555 $2,885,115 $1,500,000 $3,801,632 $10,884,302 $7,191,051 Table 1. Water Agency Remaining Payment Schedule‌ 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 SECTION 3: REVIEW OF ACTIVITIES IN FY 2021 2022 AND FY 2020 2021 On June 910, 20202021, the QSA JPA Commission adopted the FY 2021 2022 budget in the amount of $14,994,76011,698,380. Table 2 shows the FY 2021 2022 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 2022 budget include implementing the Salton Sea air quality mitigation program Air Quality Mitigation Program (Task 24), the managed QSA Implementation Team (IT) Biologists (Task 2), and the Managed ▇▇▇▇▇ habitat Areas (Task 8), and the QSA IT biologists (Task . Table 2). Detailed FY 2022 Expenditures‌ 2 QSA Implementation Team Biologists $1,093,590 $1,013,357 $$ 1,216,590 $ 1,112,748 $ (80,233103,842) 3 Environmental Reporting and Monitoring $$ 540 $ - $$ (540) 4 Salton Sea Salinity and Elevation Program $$ 10,610 $ 16,330 $16,330 - $ 5,720 6 Tamarisk Scrub Habitat - Surveys and Mitigation $$ 72,740 $$ 25,000 $ (72,74047,740) 8 Drain Habitat (Aquatic) – - Create, /Manage, /Monitor "Managed ▇▇▇▇▇" $4,860,210 $3,500,000 $Areas $ 931,480 $ 467,957 $ (1,360,210463,523) 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 - $$ 8,950 $ 5,139 $ (3,290) 16 Burrowing Owl Relative Abundance and Distribution Surveys $245,890 $25,000 $(220,8903,811) 17 Farmer and Public Education Program $7,300 $3,200 $(4,100) $ 7,380 $ 7,380 $ - 18 Desert Pupfish Abundance and Distribution Study $6,400 $21,000 $14,600 $ 6,530 $ 8,000 $ 1,470 19/19A Pupfish Selenium Drain Studies $310,450 $200,000 $$ 210,940 $ 100,000 $ (110,450110,940) 20 Pupfish Construction and Maintenance Conservation Measures $253,390 $10,000 $$ 500,000 $ 100,000 $ (243,390400,000) 23 Covered Species Baseline & Monitoring Surveys $171,870 $ 5,300 $ - $$ (171,8705,300) 24 Salton Sea Air Quality $7,785,200 $6,800,000 $$ 8,596,440 $ 5,409,989 $ (985,200) 35 Management and Planning $12,730 - $(12,7303,186,451) 36 JPA Audit Fees $$ 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 $$ 31,930 $5,000 $$ 1,000 $ (26,93030,930) 46 QSA JPA Website $ 10,000 $ 9,340 $ (660) Total $14,994,760 $11,628,657 $$ 11,698,380 $ 7,297,653 $ (3,366,1034,400,727) The projected budget savings and delayed expenditures for FY 2021 2022 of $3,366,103 4,400,727 is mostly due to the deferral of items under the air quality mitigation program Salton Sea Air Quality Mitigation Program (Task 24), managed Managed ▇▇▇▇▇ Areas (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 2022 budget projections. Table 3. FY 2022 Budget Summary‌ FY 2022 BUDGET PROJECTED FY 2022 EXPENDITURES PROJECTED FY 2022 SAVINGS/DELAYS $ 14,994,760 11,698,380 $ 11,628,657 7,297,653 $ 3,366,103 4,400,727 On January 136, 2020 2022, the QSA JPA Commission accepted an audit of its basic financial statements by ▇▇▇▇▇ ▇▇▇▇ Certified Public Accountants for fiscal years ending June 30, 2020 2021 and 20192020. Audited FY 2020 2021 environmental mitigation expenditures totaled $15,087,0649,389,916, as depicted in Appendix 1. Based upon the audited cash balance of $34,226,950 30,164,122 at the end of FY 20202021, FY 2021 2022 projected agency contributions and interest earnings of $7,261,95110,034,416, and projected FY 2021 2022 budget spending of $11,628,6577,297,653, the QSA JPA expects to have a positive cash balance of $29,860,244 32,900,885 at the end of FY 2021 2022 (Table 4). Table 4. FY 2022 Projected Fund Balance‌ Mitigation Contributions $7,191,051 10,884,302 Sources $7,261,951 10,034,416 Interest Income $70,900 (849,886) FY 2021 2022 Projected Fund Balance (6-30-2122) $29,860,24432,900,885 SECTION 4: FY 2023 BUDGET The FY 2022 budget provides projected revenues of $10,034,416 to meet anticipated expenditures from July 1, 2021 through June 30, 2022 of $7,297,653, resulting in a net gain of $2,736,763 from the previous fiscal year. FY 2023 will begin with the projected year-end FY 2022 fund balance of $32,900,885. Information summarizing the FY 2023 budget is presented in Tables 5 and 6. Table 5 provides the agency contributions scheduled for FY 2023 per the 2015 Advanced Funding Agreement, as well as funding contributions by agency through FY 2022. Revenue sources for FY 2023 include funding contributions of $7,533,582 from the water agencies and interest income estimated at $245,000. Table 5. Summary of Mitigation Contributions by Water Agency‌ Water Authority1 $85,905,294 $1,517,597 Projected spending in FY 2023 is $15,379,280 for environmental mitigation, shown by mitigation task in Table 7. Based upon the projected cash balance of $32,900,885 at the end of FY 2022, FY 2023 combined sources of $7,778,582, and projected FY 2023 budget spending of $15,379,280, the QSA JPA expects to have a positive cash balance of $25,300,187 at the end of FY 2023 (Table 6). Projected uses exceed sources indicating a decrease of $7,600,698 in cash reserves for FY 2023. Table 6. FY 2023 Projected Fund Balance‌ Sources Mitigation Contributions Interest Income $7,533,582 $245,000 $7,778,582 FY 2023 Projected Cash Balance (6-30-23) $25,300,187 1 Water Authority contributions have been reduced by credits for payments made to the U.S. Bureau of Reclamation for implementation of Conservation and Mitigation Measures for the Colorado River. Table 7. Detailed FY 2023 Expenditures‌ 1 QSA Implementation Team $ - 2 QSA Implementation Team Biologists $ 1,197,060 3 Environmental Reporting and Monitoring $ 560 4 Salton Sea Salinity and Elevation Program $ 8,000 5 Salton Sea Mitigation Water to Salton Sea $ - 6 Tamarisk Scrub Habitat - Surveys and Mitigation $ 74,920 7 Drain Habitat - Initial Vegetation and Habitat Surveys $ - 8 Drain Habitat (Aquatic) - Create/Manage/Monitor "Managed ▇▇▇▇▇" Areas $ 564,080 9 Drain Habitat Restrictions/Requirements for Construction and Maintenance $ - 10/10a Worker Education Program Covered Species Training and Manual $ - 11 Desert Habitat Survey and Mapping of Right of Way $ - 12 Desert Habitat Create/Maintain Desert Habitat $ - 13 Changes to Operations on IID Canals to Avoid Covered Species $ - 14 Burrowing Owl Worker Annual Education and Manual $ - 15 Pre-Construction Activity Burrowing Owl Surveys and Relocation $ 3,390 16 Burrowing Owl Relative Abundance and Distribution Surveys $ - 17 Farmer and Public Education Program $ 7,600 18 Desert Pupfish Abundance and Distribution Study $ 6,750 19/19A Pupfish Selenium Drain Studies $ 317,310 20 Pupfish Construction and Maintenance Conservation Measures $ 257,500 21 Salvage of Razorback Suckers when Dewatering Canals $ - 22 Maintain Habitat on Fallowed Parcels $ - 23 Covered Species Baseline and Monitoring Surveys $ - 24 Salton Sea Air Quality $ 12,822,120 25 Minimize Dust Emissions from Fallowed Lands $ - 26 Drain Connectivity to Salton Sea Elevation Decrease $ - 27 Grade Spoil/Roads from Drain Maintenance $ - 28 Power Line Markers for Pumpback and Seepage Recovery Systems $ - 29 Prepare and Implement Management Plan for Abandoned Portions of AAC $ - 30 Southwestern Willow Flycatcher Surveys and Habitat Monitoring $ - 31 Elf Owl Surveys $ - 32 Desert Tortoise Survey and Avoidance $ - 33 Least Tern Surveys $ - 34 Rail and Bittern Surveys $ - 35 Management and Planning $ - 36 JPA Audit Fees $ 10,770 37 JPA Bank Fees $ 3,090 38 Financial Advisor $ 16,000 39 Bond Counsel Fees $ - 40 2001 Biological Opinion Measures $ - 41 Brown Pelican Coast $ - 42 Brown Pelican Sea $ 55,920 ▇▇ ▇▇▇▇▇▇ ▇▇▇ Shoreline Strand Study $ - 44 Pupfish Refugium $ 32,890 45 Recreation Facilities at Salton Sea $ - 46 QSA JPA Website Maintenance Services $ 1,320 SECTION 5: FY 2023 WORK PLAN The FY 2023 budget totaling $15,379,280 includes environmental mitigation activities for compliance with environmental permits and regulatory requirements. A detailed breakdown of anticipated expenditures by task is provided in Table 7. Mitigation measures are implemented consistent with environmental permit requirements of the QSA conserved water transfers. Major expenditure categories for mitigation measures to be implemented in FY 2023 are shown in Table 8 and include: Salton Sea Air Quality Mitigation Program (Task 24), the biologist team (Task 2), and the Managed ▇▇▇▇▇ Areas (Task 8). Table 8. Major Expenditures in FY 2023‌ 24 Salton Sea Air Quality $ 12,822,120 83% 2 QSA Implementation Team Biologists $ 1,197,060 8% 8 Drain Habitat (Aquatic) – Create, Manage, Monitor "Managed ▇▇▇▇▇" Areas $ 564,080 4% -- Other Tasks $ 796,020 5% Implementation of the Salton Sea Air Quality Mitigation Program (Task 24) is the largest budgeted expenditure for FY 2023 totaling $12,822,120 or 83 percent of the total FY 2023 budget. Air quality mitigation includes annual emissions inventory, air quality network operations and maintenance, proactive dust control planning, groundwater development, air quality mitigation planning, and restricting access. The QSA IT Biologists (Task 2) is the second largest budgeted expenditure making up $1,197,060 or 8 percent of the total budget. This item includes funding for nine full-time staff and expenses for their fleet of vehicles. The Managed ▇▇▇▇▇ Areas (Task 8) is the third largest budgeted expenditure totaling $564,080 or 4 percent of the total FY 2023 budget. Expenditures for FY 2023 include operations and maintenance of the existing ▇▇▇▇▇ (all three phases). There are discussions underway of options for pricing and reimbursement of the Managed ▇▇▇▇▇ Areas land (owned by IID) that is expected to be brought to the Commission for review in FY 2023. Other tasks make up the remaining 5 percent of the FY 2023 expenditures totaling $796,020. The budget also includes reimbursements to the Water Authority for designated financial costs such as bank fees, audit fees, website maintenance, and financial consultants (investment management). Audited historical spending by task is included as Appendix 1. Detailed summaries for individual mitigation measures by task, including a detailed breakdown of FY 2023 expenditures and planned and completed work, are included in Appendix 2. Task Task Description Total FY 2004-2021 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 FY 2004- 2012 1 QSA Implementation Team $383,879 $383,879 2 QSA Implementation Team Biologists $8,685,799 $982,168 $910,337 $1,081,358 $1,026,602 $769,055 $613,942 $505,547 $536,389 $490,019 $1,770,382 3 Environmental Reporting and Monitoring $82,458 $82,458 4 Salton Sea Salinity and Elevation Program $30,060 $8,447 $4,129 $4,895 $7,100 $5,489 5 Salton Sea Mitigation Water to Salton Sea $96,666,141 $7,043,618 $34,142 $9,851,798 $18,412,449 $17,483,767 $11,607,035 $10,580,006 $3,834,494 $17,818,832 6 Tamarisk Scrub Habitat - Surveys and Mitigation $14,476 $4,928 $9,548 7 Drain Habitat - Initial Vegetation and Habitat Surveys $209,123 $209,123 8 Drain Habitat (Aquatic) - Create/Manage/Mon itor "Managed ▇▇▇▇▇" Areas $16,598,293 $2,615,125 $2,206,448 $1,911,610 $439,409 $297,032 $389,963 $2,787,567 $390,935 $205,940 $5,354,264 9 Drain Habitat Restrictions/Require ments for Construction and Maintenance $8,473 $8,473 10/ 10a Worker Education Program Covered Species Training and Manual $35,302 $35,302 11 Desert Habitat Survey and Mapping of Right of Way $379,191 $379,191 12 Desert Habitat Create/Maintain Desert Habitat $17,300 $17,300 13 Changes to Operations on IID Canals to Avoid Covered Species $0 $0 Task Task Description Total FY 2004-2021 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 FY 2004- 2012 14 Burrowing Owl Worker Annual Education and Manual $10,411 $10,411 15 Pre-Construction Activity Burrowing Owl Surveys and Relocation $923,622 $7,164 $1,540 $6,765 $4,020 $756 $903,377 16 Burrowing Owl Relative Abundance and Distribution Surveys $3,516,853 $46,155 $206,984 $224,314 $20,000 $59,509 $28,172 $13,145 $35,072 $2,883,502 17 Farmer and Public Education Program $15,755 $1,600 $2,437 $2,150 $1,600 $935 $1,416 $1,435 $2,876 $260 $1,046 18 Desert Pupfish Abundance and Distribution Study $92,367 $60,307 $17,653 $116 $8 $24 $14 $14,245 19 Pupfish Selenium Drain Studies $2,461,740 $167,559 $118,586 $157,978 $36,468 $66,650 $1,482 $1,913,017 20 Pupfish Construction and Maintenance Conservation Measures $181,497 $4,273 $4,234 $124,105 $11,653 $504 $36,728 21 Salvage of Razorback Suckers when Dewatering Canals $9,534 $9,534 22 Maintain Habitat on Fallowed Parcels $0 $0 23 Covered Species Baseline and Monitoring Surveys1 $5,395,188 $800 $947 $17,000 $62 $151 $53,333 $5,322,895 24 Salton Sea Air Quality $28,402,952 $5,478,183 $4,553,484 $4,024,938 $3,483,968 $3,809,309 $2,797,387 $601,399 $348,604 $286,877 $3,018,803 25 Minimize Dust Emissions from Fallowed Lands $57,775 $57,775 1 Includes Avian Studies from FY 2006, 2007, and 2008. Task Task Description Total FY 2004-2021 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 FY 2004- 2012 26 Drain Connectivity to Salton Sea Elevation Decrease $0 $0 27 Grade Spoil/Roads from Drain Maintenance $0 $0 28 Power Line Markers for Pumpback and Seepage Recovery Systems $1,960 $1,960 29 Prepare and Implement Management Plan for Abandoned Portions of AAC $0 $0 30 Southwestern Willow Flycatcher Surveys and Habitat Monitoring2 $62,938 $62,938 31 Elf Owl Surveys $0 $0 32 Desert Tortoise Survey and Avoidance $0 $0 33 Least Tern Surveys $0 $0 34 Rail and Bittern Surveys $0 $0 35 Management and Planning $336,979 $1,367 $9,354 $4,190 $3,229 $3,950 $4,618 $310,271 36 JPA Audit Fees $168,958 $10,770 $10,560 $10,350 $10,350 $10,350 $12,147 $11,911 $11,680 $11,452 $69,388 37 JPA Bank Fees $31,641 $2,082 $2,495 $1,405 $1,526 $1,584 $1,609 $1,678 $1,603 $1,708 $15,951 2 Includes Task 46 from previous years. Task Task Description Total FY 2004-2021 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 FY 2014 FY 2013 FY 2004- 2012 38 Financial Advisor $38,727 $9,230 $29,497 39 Bond Counsel Fees $25,000 $25,000 40 2001 Biological Opinion Measures $3,349,126 $3,349,126 41 Brown Pelican Coast $0 $0 42 Brown Pelican Sea $5,188 $4,017 $1,171 $0 43 Salton Sea Shoreline Strand Study $0 $0 44 Pupfish Refugium $63,815 $3,174 $1,840 $21,284 $37,517 45 Recreation Facilities at Salton Sea

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 2024 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. The In 2022, IID’s BOD authorized a payoff of $48.5 million for its remaining payments per to the 2015 Advanced Funding Agreement are shown QSA JPA, consistent with the JPA Agreement. Following IID’s payoff, the Water Authority and CVWD expressed interest in Table 1. 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 SECTION 3: REVIEW OF ACTIVITIES IN FY 2021 AND FY 2020 On June 9, 2020, paying off their respective financial obligations to the QSA JPA Commission adopted the FY 2021 budget in the amount of $14,994,7602023. Table 2 shows the FY 2021 budgeted and projected spending by mitigation taskIn January 2023, based on approved invoice totals to date IID’s payoff and remaining fiscal year projections the potential for payoffs by IID. Major expenses the Water Authority and CVWD in the FY 2021 budget include implementing the Salton Sea air quality mitigation program (Task 24)2023, the managed ▇▇▇▇▇ habitat (Task 8), Commission submitted a written notice to the state that it anticipated that the $133 million environmental cost limitation would be exceeded within two years. The written notice is required pursuant to the JPA Agreement and provides the QSA IT biologists (Task 2). 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 ▇▇▇▇▇" $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 state time to prepare to take over financial responsibility for FY 2021 any environmental mitigation costs in excess of $3,366,103 is mostly due 133 million. The Water Authority and CVWD paid off their remaining financial obligations to the deferral of items under the air quality mitigation program (Task 24), managed ▇▇▇▇▇ (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. $ 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 ▇▇▇▇▇ ▇▇▇▇ 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 20203.33 million and $3.29 million, FY 2021 projected agency contributions and interest earnings of $7,261,951respectively, 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). Mitigation Contributions $7,191,051 Sources $7,261,951 Interest Income $70,900 FY 2021 Projected Fund Balance (6-30-21) $29,860,244in July 2023.

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. 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 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 ▇▇▇▇▇ habitat (Task 8), and the QSA IT implementation team biologists (Task 2). 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 ▇▇▇▇▇" $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 ▇▇▇▇▇ (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. $ 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 ▇▇▇▇▇ ▇▇▇▇ 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). Mitigation Contributions $7,191,051 Sources $7,261,951 Interest Income $70,900 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 2021 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 $48,458,655.04 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. 2021 $2,697,555 $2,885,115 $1,500,000 $3,801,632 $10,884,302 $7,191,051 Table 1. Water Agency Remaining Payment Schedule‌ WATER CVWD IID1 AUTHORITY TOTAL PAYMENTS 2022 $2,706,745 $3,309,240 $1,517,597 $7,533,582 4,224,342 $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 1,612,824 1 On September 29, 2022, IID exercised its option to complete an early payoff ($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 SECTION 3: REVIEW OF ACTIVITIES IN FY 2021 AND FY 2020 On June 948.5 million) of its funding commitment to the QSA JPA, 2020, consistent with the QSA JPA Commission adopted the FY 2021 budget in the amount of $14,994,760Agreement. Table 2 shows the FY 2021 budgeted and projected spending by mitigation task, based on approved invoice totals The schedule has been modified 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 ▇▇▇▇▇ habitat (Task 8), and the QSA IT biologists (Task 2). 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 ▇▇▇▇▇" $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 ▇▇▇▇▇ (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. $ 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 ▇▇▇▇▇ ▇▇▇▇ 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). Mitigation Contributions $7,191,051 Sources $7,261,951 Interest Income $70,900 FY 2021 Projected Fund Balance (6-30-21) $29,860,244reflect this change.

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. 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 Table 1. Water Agency Remaining Payment Schedule‌ WATER CVWD IID1 AUTHORITY TOTAL PAYMENTS 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 1,612,824 1 The schedule has been modified to reflect IID’s September 29, 2022, early payoff ($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 SECTION 3: REVIEW OF ACTIVITIES IN FY 2021 AND FY 2020 On June 9, 2020, 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 ▇▇▇▇▇ habitat (Task 8), and the QSA IT biologists (Task 2). 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 ▇▇▇▇▇" $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 ▇▇▇▇▇ (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. $ 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 ▇▇▇▇▇ ▇▇▇▇ 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). Mitigation Contributions $7,191,051 Sources $7,261,951 Interest Income $70,900 FY 2021 Projected Fund Balance (6-30-21) $29,860,244JPA.