| To: | Members & Affiliates |
| From: | National Office |
| Date: | August 20, 1999 |
| Subject: | Report to the Membership 2000 Preliminary Budget |
| Reference: | MU 99-8 |
Each year following the July conference, AMSA's Board of Directors reports to the membership on both fiscal and organizational initiatives. In July, as in years past, the preliminary budget for the coming year was approved and is now — via this Member Update — presented to AMSA's membership for review and comment. The Association's Board of Directors also continued its oversight of AMSA's upcoming move to a new national headquarters and plans for its 30th anniversary in the year 2000. These are indeed exciting times for AMSA as an organization.
Growth in AMSA's Membership Continues
We have done exceptionally well in our efforts to attract new members in 1999. With the help of member agencies nationwide, AMSA has attracted 24 new members to date — 20 new Member Agencies and four new Affiliate members — and our public agency roster now boasts 230! The addition of the 24 new members will add $69,000 to AMSA's dues income annually. By continuing to increase AMSA's membership, we will increase our collective political clout with Congress and the U.S. Environmental Protection Agency ensuring that our messages are heard by national policy makers.
Preliminary 2000 Budgets Adopted
Each year AMSA's Board of Directors acts at the July meeting to consider and adopt preliminary budgets for the coming calendar year. The preliminary General Fund and Technical Action Fund budgets are provided in this Member Update as Attachment A and Attachment B, respectively. A consolidated summary of AMSA's overall proposed budget for next year is provided in Attachment C. The proposed 2000 Preliminary General Fund Budget reflects $2,330,000 in income and $2,330,000 in expenses, resulting in year-end revenues of $222,500.
The Association is projecting significant additional expenses in 1999. These expenditures are one-time only costs and are primarily associated with AMSA's purchase of its new national headquarters building at 1816 Jefferson Place, NW in Washington, DC. The Board of Directors is monitoring expenditures closely and has authorized AMSA to extend its equity line of bank credit to take maximum advantage of financing available. Such action will minimize the impact on the budget through extending repayment of one-time costs associated with the move over a five year period.
The Preliminary 2000 General Fund Budget assumes no dues increase next year, relying instead on continued strong new member growth and income from meetings, advertising and the sale of publications.
Technical Action Fund Continues to Provide Significant Benefits to Members
Established four years ago to commemorate AMSA's 25th anniversary, the “stand alone” Technical Action Fund (TAF) strengthens the Association's capability to implement its short and long-term regulatory and legislative objectives. The TAF provides dedicated funds to gather and analyze data, initiate litigation, and secure the services of consultants having expertise beyond that which the National Office can offer. These funds are dedicated to projects and activities that impact pending legislation and anticipated or proposed regulations and policy initiatives, as identified by the Association's committees.
In its four years of existence, AMSA's Technical Action Fund has provided hundreds of thousands of dollars in support of legislative, regulatory and legal initiatives. Calendar year 1999 TAF initiatives include, but are not limited to, the 1999 AMSA Financial Survey, the whole effluent toxicity variability study, numerous initiatives of the National Biosolids Partnership, and the AMSA-Water Environment Research Foundation POTW database, Clean Water Central. A complete summary of Association acti-vities supported by the Technical Action Fund is provided in this Member Update under Attachment D.
As AMSA's prepares to enter its 30th year, the Board of Directors believes the need is substantial and the time is right to “grow” the fund. The Preliminary 2000 Technical Action Fund Budget assumes an additional $150,000 in budget authority to do just that. At the July Board of Directors meeting, the Executive Committee recommended, and the Board approved, a 10% TAF surcharge as the fairest means through which to allocate this needed increase in the Technical Action Fund. This surcharge would yield approximately $140,000, and would range from $150 per member agency in the lowest population categories to $2,450 in the highest categories.
The requested increase of $150,000 in the 2000 Technical Action Fund Preliminary Budget raises total income in the TAF to $300,000. With $66,000 set aside for AMSA's legal retainer agreement and another $75,000 set aside for the AMSA's potential intervention in the California total maximum daily load (TMDL) lawsuit, TAF reserves at the end of the year are projected at $192,500. Considering the enormous demands that AMSA has placed on the TAF over the past years, and the number of complex technical, regulatory, legislative and legal issues we will face in the future, the Board feels strongly that this increase is necessary to provide the cushion we need to absorb the potential financial impact of future projects supported by the TAF.
AMSA Committees Set Agendas for the Future
In advance of the July meeting, the Association's Special Committees focus their sights on the future and set their agendas for the coming year. A complete set of committee reports, outlining issues and activities anticipated to be addressed by AMSA's Special Committees, is included under Attachment E. As noted, committee initiatives frequently require the support of AMSA's Technical Action Fund. Recommen-dations for the funding of committee initiatives are reviewed by the Association's Regulatory Policy Committee and subsequently recommended for Board of Directors consideration.
In Summary . . .
The years 1999-2000 have been — and will be — a time of growth, changes and challenges for AMSA. In October 1999 the Association will occupy its new national headquarters — 1816 Jefferson Place, NW, Washington, DC — a permanent home for AMSA that will continue to build equity and provide benefit to the Association. Throughout the year 2000, and particularly in May, AMSA will celebrate 30 years of dedicated work to improve and protect our nation's waters. With the theme, Windows on Watersheds. . .Celebrating Three Decades of Water Quality Improvement, initiatives throughout the year will support the objective of strategically positioning AMSA to be the driving force in national Clean water policy for the new millennium.
Indeed, as we approach the new millennium we continue to focus our efforts largely on the legislative and regulatory arenas. Through leadership and member support we have also been in the position to commit time and resources to address the challenging management issues faced by our membership.
AMSA's Board of Directors believes that the recommendations contained in this Member Update will strengthen and support the Association's core competencies and ensure that AMSA maintains the resources necessary to accomplish its goals and maintain its leadership position as we move into the next century.
Member Comment Invited
The Board of Directors encourages all members to review the 2000 Preliminary Budgets for both the General Fund and the Technical Action Fund. Please direct any comments you may have Gurnie Gunter, AMSA's Treasurer and Chair of the Association's Budget & Audit Committee at 816/274-2376 or via e-mail at gurniegunter@kcmo.org, AMSA's Executive Director Ken Kirk at 202/833-4653 or via e-mail at kkirk@amsa-cleanwater.org, or the member(s) representing your region on AMSA's Board of Directors (for additional information see AMSA's Board Roster in the Member Pipeline at http://www.amsa-cleanwater.org).
The Board of Directors and committee leadership will meet in Washington, DC on September 23-24, 1999 for the Association's Fall Leadership Retreat & Strategy Session. The Board will adopt a final 2000 budget at that time. Please provide your comments and recommendations prior to Friday, September 10, 1999. Many thanks for your continuing participation and support.
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