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June 20, 2014 

We are pleased to present the Association’s FY 2015 General Fund  and Targeted Action Fund (TAF)  budgets for your review and comment. Mindful of current economic conditions, the FY 2015 budget development process included a thorough review of revenues and expenditures – as well as an assessment of NACWA’s ability to maintain and enhance its delivery of essential services to its members.

The preliminary FY 2015 General Fund budget includes a dues increase of 8% for all membership categories (please see FY 2015 Membership Dues ). This increase implements the second year of a NACWA Board-endorsed 3-year plan to move away from reliance on the unpredictable and unsustainable practice of voluntary assessments and contributions – and toward an approach that sustains the General Fund and Targeted Action Fund through membership dues. In FY 2015, membership dues are projected to generate $289,300 in new revenue. Our smallest Member Agencies will see their dues increase by $110 – and our largest Member Agencies’ dues will increase by $4,390. Dues are capped at $60,000. Overall, the preliminary FY 2015 General Fund budget reflects $4.96 million in revenues, $5.17 million in expenses and $215,000 in transfers from other funds resulting in adjusted net income of approximately $9,000 for FY 2015.

We continue to focus our energies and efforts on raising the bar on the quality of our advocacy on, and analysis of, evolving and emerging issues, and have been gratified to see our diverse and dynamic membership grow as a result. Included among the significant operational and financial benefits resulting directly from your membership, support, and engagement in NACWA are the following:

• • Explicit recognition, in the Farm Bill, of clean water utilities as eligible partners for U.S. Department of Agriculture conservation programs – and a clear direction from the Secretary of Agriculture to give priority to partnerships between clean water agencies and farmers focused on improving water quality.
  • Inclusion in the Water Resources Reform Development Act (WRRDA) of key provisions impacting the Clean Water State Revolving Fund (CWSRF) that:
  • • • Extend CWSRF loan repayment term up to 30 years;
      • Codify of rules for additional subsidization in the form of loan forgiveness and negative interest loans;
      • Expand eligible activities to include projects addressing water and energy efficiency in line with NACWA’s Water Resources Utility of the Future initiative; and,
      • Create a Water Infrastructure Finance & Innovation Authority (WIFIA) pilot program designed to provide direct loans and loan guarantees to projects that are too large for the SRF programs to finance – including a requirement that all projects applying for assistance under the WIFIA would first need to seek assistance under the SRF program.
  • Establishment of a bipartisan Congressional Clean Water Caucus focused on cutting-edge technologies and innovative techniques and approaches relative to the Water Resources Utility of the Future.
  • Hundreds of thousands of dollars in financial support for technical assistance for pilot communities pursuing integrated plans under the U.S. Environmental Protection Agency (EPA) Integrated Planning Framework.
  • Victory in litigation over Chesapeake Bay Total Maximum Daily Loads (TMDL) with federal court affirming EPA’s ability to pursue a watershed approach under the Clean Water Act – including a meaningful contribution from nonpoint agricultural sources – in crafting TMDLs to achieve improved water quality.

As the budgets were developed, attention was also paid to the critical role that the Association’s Targeted Action Fund plays in accomplishing key strategic objectives. The TAF will receive an allocation from dues of $550,000 in FY 2015. 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, maximizing the ability of Member Agencies to collectively conduct and complete initiatives identified as critical by the membership, and offering an incredible return on investment by saving clean water agencies millions of dollars annually in cost savings and avoided costs.

This Member Update describes key aspects of the budget and our plans for the 2015 fiscal year (October 1, 2014 – September 30, 2015). Member comments are invited by June 20, 2014.

Active & Diverse Advocacy Agenda Anticipated in FY 2015

NACWA anticipates a dynamic 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 framework is implemented, and that its concepts of local flexibility are more broadly adopted throughout permitting and enforcement programs.

In FY 2015 NACWA will maintain its leadership role in the national debate over the development of numeric nutrient criteria, further 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 EPA’s stormwater rule now officially shelved, NACWA will engage the agency as it attempts to achieve the Administration’s stormwater goals through the existing permitting program.

We will continue to create a collaborative vision for the Water Resources Utility of the Future, as we grow and engage the new Congressional Clean Water Caucus on low-cost, high-return innovations and technologies. Our work continues 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, we will defend Member Agency interests in litigation over water quality issues, maintain an active legal presence on wet weather and enforcement issues, and pursue action, as necessary, to protect NACWA member programs and assets on key operational issues. 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).  The TAF will celebrate 20 years of immeasurable value to NACWA’s membership in 2015.  Whether through the invaluable analysis and cost-saving information provided in NACWA’s triennial Financial Survey, 2013 Cost of Clean Water Index  (formerly the annual Service Charge Index), and the new Consent Decree Handbook and e-Library – or the Association’s important collaborative work with the Water Environment Research Foundation (WERF), resulting in the only reliable estimate of energy generation potential for clean water facilities, and the Biogenic Greenhouse Gas Emissions Coalition to achieve a workable path forward for biogenic emissions, the projects and initiatives funded through TAF bring added value to the Association’s advocacy on behalf of its Member Agencies.  TAF-supported legislative successes are numerous as well, and include key provisions in the Water Resources Reform Development Act (WRRDA) and Farm Bill, as previously noted.  Please see the Targeted Action Fund Project Overview & Status Report  which illustrates the significant value the Fund delivers to NACWA’s members.  There is no doubt that NACWA’s TAF will continue to consistently prove its value by protecting Member Agency interests, enhancing the Association’s capability to achieve its short and long-term strategic objectives, 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 2015 General Fund and Targeted Action Fund (TAF) budgets. Please direct any comments you may have to Adel Hagekhalil, NACWA Treasurer and Chair of the Association’s Finance Committee, via phone at 213-485-2210 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 at 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 20, 2014. All comments received will be carefully considered prior to final action on the FY 2015 General Fund budget when NACWA’s Board of Directors meets in mid-July in Portland, Oregon.

As the Association continues nears its 45th anniversary 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 and the leading voice on the water resources utility of the future. As always, our primary focus is on advocacy on behalf of our member’s interests.

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.