» Member Updates Archive

Comments Requested By:
June 14, 2013 

NACWA’s Board of Directors met in Washington, DC in late April and acted to approve a preliminary FY 2014 General Fund budget.  The FY 2014 budget development process included a thorough review of revenues and expenditures, as well as an assessment of NACWA’s ability to sustainably maintain and enhance its delivery of essential services to its members.  Special attention was paid to the critical role the Association’s Targeted Action Fund (TAF)  plays in accomplishing key objectives.

In the past year alone NACWA’s TAF has supported more than 20 key Association initiatives and programs – bolstering the effectiveness of the Association’s advocacy agenda, and maximizing the ability of Member Agencies to collectively conduct and complete initiatives identified as critical by the membership.  Whether it is the tens of billions of dollars saved annually as a result of the U.S. Environmental Protection Agency’s (EPA) refusal to modify the secondary treatment regulations to include nutrient removal – or an estimated $300 million that states and municipalities will not need to spend because a federal court struck down EPA’s use of a ‘flow TMDL’ for stormwater – NACWA’s TAF offers an incredible return on investment.  Membership support of the TAF was clearly evident in FY 2013 when nearly 90 Association members contributed nearly $340,000 – building on the $300,000 already allocated to TAF in the FY 2013 budget – to provide the funds necessary for NACWA to effectively pursue its advocacy agenda.

Acknowledging that reliance on voluntary contributions was neither predictable nor sustainable, in FY 2013 NACWA’s Board of Directors committed to review and revisit the Association’s dues structure – with the goal of ensuring that both the General Fund and Targeted Action Fund were sustained through membership dues, rather than voluntary contributions or other assessments.  The Board recently concluded a six-month deliberative process that included the review and analysis of numerous budget scenarios, which ultimately resulted in the preliminary FY 2014 budget presented to you today.

In FY 2014, membership dues are projected to generate $577,756 in new revenue – of which $500,000 will be allocated to NACWA’s Targeted Action Fund (TAF).  As a result of this 15% dues increase, our smallest Member Agencies will see their dues increase by $190 – and our largest Member Agencies’ dues will increase by $7,620 – with dues capped at $60,000.  All Member Agencies that voluntarily contributed the recommended amount to the TAF in FY 2013 will see their annual payment to NACWA go down (please see Attachment A – FY 2014 Membership Dues by Organization).

The preliminary FY 2014 General Fund budget reflects $4.7 million in revenues, $4.73 million in expenses and $30,000 in transfers from other funds resulting in approximately $4,000 in net income after transfers for FY 2014 (please see Attachment B – FY 2014 General Fund Budget). As noted, NACWA’s FY 2014 preliminary budget also includes the allocation of $500,000 in dues (13% of the 15% increase) to support the Targeted Action Fund (TAF).

This Member Update describes key aspects of the budget and our plans for the 2014 fiscal year (October 1, 2013 – September 30, 2014). Member comments are invited by June 14, 2013.

Active & Diverse Advocacy Agenda Anticipated in FY 2014

NACWA anticipates a challenging year ahead requiring an active and diverse advocacy agenda in the legislative, regulatory and legal arenas.  We will maintain an aggressive focus on evolving issues that are critical to the membership, among them the pursuit of both regulatory prioritization and broader changes in EPA’s approach to financial capability to incorporate a more holistic, prioritization-based approach that looks at a range of indicators.  NACWA will continue to leverage EPA’s Integrated Planning Initiative, to ensure that the Agency’s framework is implemented and that its concepts of local flexibility are more broadly adopted throughout the NPDES permitting and enforcement programs.

In FY 2014 NACWA will maintain its leadership role in the national debate over the development of numeric nutrient criteria, strengthening links between agricultural policy and nutrient reduction, and the pursuit of reasonable approaches for the management of sanitary sewer overflows, peak flow blending, remote treatment of peak excess flows, and satellite collection systems. With the proposal of EPA’s new stormwater rule now anticipated for late-spring/early-summer of 2013, NACWA resources and expertise will be focused in this area, as well.

In line with our collaborative efforts with the Water Environment Federation (WEF) and the Water Environment Research Foundation (WERF) to create a vision for the Water Resources Utility of the Future, the Association will work to implement an advocacy agenda that addresses how to use existing and new statutory authorities – as well as federal programs at an array of government agencies – to facilitate the transition and prepare our Member Agencies for their expanding critical role in protecting our nation’s water resources.

Lastly, and overall, the organization is committed to exploring new opportunities to collaborate with WEF, WERF, and other organizations that share NACWA’s vision and add value to the important work we do on behalf of our members.

Strengthening & Ensuring the Sustainability of Targeted Action Fund a Priority

Many of these efforts will be supported by the Association’s Targeted Action Fund (TAF). For nearly 20 years the TAF has strengthened the Association’s capability to achieve its short and long-term strategic objectives. Whether through the invaluable publication of NACWA’s triennial Financial Survey and annual NACWA Service Charge Index, securing passage of legislation guaranteeing federal payment of municipal stormwater fees – generating amounts approaching $10 million annually in previously unrealized revenue for communities – or recent lawsuits, the projects and initiatives funded through TAF bring added value to the Association’s advocacy on behalf of its Member Agencies. We have included an overview of active TAF projects to illustrate the significant value the Fund delivers to NACWA’s members (please see Attachment C - Targeted Action Fund Project Overview & Status Report) – as well as our FY 2014 Targeted Action Agenda which captures many of the initiatives that we anticipate will be supported by the TAF in FY 2014 (please see Attachment D – FY 2014 Targeted Action Agenda).

With a renewed level of support in FY 2014, we anticipate that NACWA’s TAF will continue to consistently prove its value by protecting Member Agency interests and ensuring both cost savings and avoided costs in the coming year.

Member Comment Invited

Consistent with NACWA’s budget cycle, the Board of Directors encourages all members to review the preliminary FY 2014 General Fund budget. Please direct any comments you may have to Karen Pallansch, NACWA Treasurer and Chair of the Association’s Finance Committee (703-549-3381 Ext. 2202 or via e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it ) and NACWA’s Executive Director, Ken Kirk (202/833-4653 or via e-mail at This e-mail address is being protected from spambots. You need JavaScript enabled to view it ). Please provide your comments and recommendations by midnight Eastern Time on Friday, June 14, 2013. All comments received will be carefully considered prior to final action on the FY 2014 General Fund budget when NACWA’s Board of Directors meets on July 14, 2013 in Cincinnati, Ohio.

As the Association continues in its fifth decade of advocacy and service, initiatives throughout the year will support the objective of maintaining NACWA’s strategic position as the driving force in national clean water policy. As always, our primary focus is on advocacy on behalf of our member’s interests. To this end, NACWA’s Board of Directors is pleased to present a preliminary FY 2014 General Fund budget that ensures that both the General Fund and Targeted Action Fund are sustained through membership dues, rather than voluntary contributions or other assessments.

This past year we have accomplished many things. Playing a pivotal role in these accomplishments were NACWA’s leadership and members, whose firm decisions and substantial participation lent unquestioned credibility to the Association’s positions and increased attention to its policy goals. Many thanks for your continuing participation and support.

ATTACHMENTS:
Attachment A - FY 2014 Membership Dues by Organization
Attachment B - FY 2014 General Fund Budget
Attachment C - Targeted Action Fund Key Project Overview & Status Report
Attachment D - FY 2014 Targeted Action Agenda