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Comments Requested By:
June 10, 2016

We are pleased to present the Association’s FY 2017 General Fund and Targeted Action Fund (TAF) budgets for your review and comment.  The FY 2017 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.  This Member Update describes key aspects of both budgets for the 2017 fiscal year (October 1, 2016 – September 30, 2017) as well as an overview of the Association’s Board-approved 5-year Financial Plan.  Member comments are invited by June 10, 2016.

5-Year Financial Plan Charts Path for Growth

In April 2016, NACWA’s Board of Directors approved a 5-year Financial Plan (FY 2017 – FY 2021) that charts a path for growth for the Association allowing us to aggressively pursue our strategic advocacy, membership engagement, and communications objectives.  It links the goals of the Association’s Strategic Plan to key financial outcomes that we plan to achieve over the next five years.  While the Plan’s aggressive goals served as a backdrop for our budget process, we continue to present a fiscal year budget to the Board and membership annually that is both conservative and attainable.  Attaining the goals in the Financial Plan will provide revenue to the Association in excess of conservative budgets. 

The Financial Plan provides the resources needed to accomplish the core purposes of the Strategic Plan which include building a broader member base, in part by seeking to have every public clean water utility become a NACWA member.  We plan to enhance our communications efforts to be visible and present – engaging all stakeholders to advance our advocacy agenda and highlight the important role and value of public utilities nationwide.  We will take NACWA’s message to all regions and states across the country.  We will strive to be a catalyst for change by advocating for the modernization of the Clean Water Act and a better alignment of related statutes and policies. 

In short, the Financial Plan reflects the needed investment for the Association’s future and the achievement of the Board’s and Member Agencies’ aggressive and important strategic objectives.

General Fund Preliminary Budget

The preliminary FY 2017 General Fund budget calls for a 6% dues increase for all membership categories (Publicly Owned Treatment Works, Conveyance Systems & Stormwater Management Agencies, Corporate Affiliates, Legal Affiliates and Supporting Affiliates), following the recommendation outlined in the 5-year Financial Plan.  The dues increase provides funds to support a new staff position in FY 2017 focused on communications, marketing and public affairs – supporting the achievement of the objectives of the Strategic Plan. In FY 2017 our smallest Member Agencies will see their dues increase by $90 – and our largest Member Agencies’ dues will increase by $3,760.  Please see FY 2017 Membership Dues for a complete listing of dues by category.

Overall, the preliminary FY 2017 General Fund budget reflects approximately $5.7 million in revenues, $5.709 million in expenses and $35,000 in transfers from other funds resulting in net income after transfers of $25,000 for FY 2017 – meeting the target annual net income goal outlined in the 5-year Financial Plan.

FY 2017 Targeted Action Fund Bolsters NACWA’s Strategic Objectives

As the budgets were developed, attention was also paid to the critical role that the Association’s Targeted Action Fund¹ plays in accomplishing key strategic objectives.  In FY 2017, the TAF will continue to support numerous key Association initiatives and programs – bolstering the effectiveness of the Association’s advocacy agenda, maximizing the ability of Member Agencies to conduct initiatives identified as critical and offering a strong and clear return on investment by providing clean water agencies with significant annual cost savings and new revenue streams.  Please see TAF Project Overview & Status Report for additional information on projects and initiatives currently supported by the Fund. 

Consistent with the Board-approved 5-year Financial Plan, the preliminary FY 2017 TAF budget includes $380,000 in revenues (a $13,500 increase over the FY 2016 allocation) and $50,000 in expenses for TAF projects resulting in net income, or projected funds available to allocate to additional projects, of $330,000 in FY 2017. 

In addition, in FY 2016 NACWA’s Board of Directors approved the creation of a TAF Resilience Fund to provide funding to respond quickly to urgent, unanticipated requests.  The goal is for the Resilience Fund to reach $500,000 in ten years (FY 2026).  The Board approved initial funding of $70,000 for the Fund.  In future years, 40% of all carryover funds (unallocated general TAF funding) will be allocated to the TAF Resilience Fund on an annual basis, until we reach our goal of $500,000.

The anticipated available TAF resilience funds of $70,000, together with the general TAF available funds of $330,000, provide total available funds of $400,000 for FY 2017.  The general TAF funds, together with the TAF Resilience Fund, will ensure that there are resources available to accomplish critical advocacy objectives in support of all regulatory, legislative and legal initiatives detailed in both the Strategic Plan, and related Business Plan, in FY 2017 and well into the future. 

Member Comment Invited

Consistent with NACWA’s budget cycle, the Board of Directors encourages all members to review the preliminary FY 2017 General Fund and Targeted Action Fund (TAF) budgets.  Please direct any comments you may have to NACWA’s Chief Executive Officer, Adam Krantz at This e-mail address is being protected from spambots. You need JavaScript enabled to view it and NACWA’s Chief Financial Officer, Meredith Ristic 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 10, 2016.  All comments received will be carefully considered prior to final action on the FY 2017 budgets when NACWA’s Board of Directors meets in mid-July in Denver, Colorado. 

As the Association celebrates over 45 years 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 decisions and substantial participation lent credibility to the Association’s financial direction and increased attention to linking budgetary decisions to NACWA’s policy goals.  Many thanks for your continuing participation and support.

¹ NACWA’s Targeted Action Fund, established in 1995, provides dedicated monies to support Board-endorsed initiatives that enhance the Association’s ability to achieve its short and long-term strategic objectives, protect Member Agency interests, and provide benefits to its members in the form of both cost savings and avoided costs.