To: Members & Affiliates From: National Office Date: August 7, 2000 Subject: REPORT TO THE MEMBERSHIP
2001 PRELIMINARY BUDGETReference: MU 00-6 Each year following the July conference, AMSA's Board of Directors reports to the membership on both fiscal and organizational initiatives. This 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.
This year, for the first time, the Board considered long-range budget needs for the period from 2001 through 2004 consistent with AMSA's Strategic Plan and Human Resources Strategic Plan. The Board also had the benefit of the results of the 2000 Member Needs Assessment (described in the paragraphs which follow and enclosed for your review) as they deliberated the best possible means through which to meet member-identified needs and achieve organizational goals.
After thoughtful deliberation, on July 21, 2000, the Board of Directors adopted AMSA's preliminary budget for 2001 (Attachment A). While the proposed budget includes a dues increase, it also guarantees continued high quality services to AMSA's members and significantly enhanced capabilities in the legal arena. We invite you to read on to learn the details of AMSA's vision for the coming year.
The Focus is on the Future as AMSA Enters Fourth Decade of Advocacy
The Association's 30th anniversary year has been a busy and productive one. This annual Report to the Membership comes to you from AMSA's new National Office at 1816 Jefferson Place, NW. No longer a tenant, AMSA now benefits from the equity of property ownership.The move, combined with efforts by AMSA's staff and leadership to identify member needs, set priorities and assess the resources necessary to meet our goals, has set the stage for the future. Most importantly these actions have positioned AMSA to continue to deliver strong, credible responses to the pressing regulatory, legislative and legal developments that impact the nation's wastewater agencies.
Our goal has been, and will continue to be, to provide superlative service to our members. We've heard from our members and it's clear that the crucial questions about the future of the nation's water program that currently confront us — and the high stakes involved for AMSA's member agencies and their communities — require the Association to further distinguish itself. AMSA must heighten its national prominence by aggressively seeking federal wastewater infrastructure funding, reforming urban wet weather controls and addressing nonpoint source pollution. Future water quality improvement in America hinges on the accomplishment of AMSA's priorities and we look forward to working with AMSA member agencies across the nation to achieve our goals.
Needs Assessment Supports High Level of Involvement in Key Issue Areas
The 2000 Member Needs Assessment provided important information that played a significant role in the Board's consideration of both AMSA's overall Strategic Plan and Human Resources Strategic Plan. As a result of the 2000 assessment we learned that the three most important priorities for AMSA members were total maximum daily loads; wet weather issues, and water quality standards. We were gratified to learn further that these areas, along with our efforts in the management/competitiveness arena, registered high levels of member satisfaction. Overall, our independent consultant reported that “AMSA is delivering the best services in the most critical areas”.Important information was also gathered regarding members' use of electronic communications to access AMSA publications and services. The findings in this area suggested an increased use of the variety of online communication tools offered by AMSA. The Association is currently finalizing an Action Plan to inspire increased use of electronic communication in an effort to reduce postage and paper costs and, more importantly, increase the speed through which AMSA members are informed of breaking legislative and regulatory developments.
As they looked to the future, member agencies identified a clear need for an increased level of activity on the part of AMSA and its staff with regard to total maximum daily loads, infrastructure funding, biosolids management, and the array of wet weather issues challenging public utilities. Continuing emphasis on management issues and a new focus on asset management were also endorsed. Numerous water quality issues, including nutrients, mercury, and criteria development were also identified by AMSA's members as significant.
Growth in AMSA's Membership Continues
This past year we have continued to implement initiatives aimed at attracting new members. With the help of member agencies nationwide, AMSA membership roster has increased to include agencies in three states (West Virginia, Maine and Delaware) which previous had no membership in the Association, leaving only six states unrepresented (Vermont, Mississippi, Wyoming, Montana, North Dakota and South Dakota). Today we count 246 public agencies and 48 affiliate organizations, both public and private, among AMSA's membership — nearly 300 entities working together to 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 2001 Budgets Adopted
In May the Board of Directors began the difficult task of evaluating membership needs, setting priorities and reassessing the resources necessary to meet our goals. With the 2000 Member Needs Assessment, AMSA's overall Strategic Plan and the Association's Human Resources Strategic Plan as guides — and the significant strides achieved in meeting our collective goals as evidence that efforts to “grow” the Association have been successful — the Board reviewed budget projections for 2001-2004.In July, AMSA's Board of Directors acted to consider and adopt preliminary budgets for the coming calendar year. The preliminary Board-adopted General Fund and Technical Action Fund budgets are provided in this Member Update as Attachment A and Attachment B, respectively.
In their deliberations, the Board emphasized their desire to limit the need for any dues increase as much as possible, and the importance of ensuring equity between small, medium and large member agencies. The adopted preliminary budget accomplishes this by providing for dues increases of 15% while ensuring continued high quality services to AMSA's members and providing significantly enhanced capabilities in the legal arena.
The preliminary 2001 General Fund Budget projects $2,725,950 in income and $2,819,200 in expenses. While a shortfall is projected, a number of variables impact both income and expenses. Increases in membership, the Association's planned move to increased electronic communications and the development of new nondues revenue sources are high priorities and could positively impact income. Additionally, every effort is being made to monitor and ensure cost-effective expenditures. It is significant to note, as well, that the purchase of a building to house the National Office in 1999 provides AMSA with growing equity through property ownership.
In considering the proposed budgets, the Board also recognized that any increase in member dues must carry with it an increase in the services which AMSA provides its members. In addition to providing for continuing and heightened advocacy in the government affairs arena (through the addition of two staff positions), and ongoing improvements to the information available to AMSA members online at www.amsa-cleanwater.org, the 2001 General Fund Budget provides a significant new level of member service in the legal arena.
Addition of General Counsel to Enhance Legal Services to Members
AMSA's involvement in the legal arena has been steadily increasing. During the past year, $170,000 has been authorized for litigation costs above and beyond AMSA's $66,000 retainer for legal counsel. An additional $30,000 has been earmarked for AMSA participation in the appeal of Pronsolino v. Marcus, Piney Run Preservation Association v. Carroll County, City of Anderson v. South Carolina, and EarthJustice Legal Defense Fund v. EPA. Other cases that may require AMSA participation are on the near-term horizon.We have met with significant success in our legal undertakings. The favorable outcome of Pronsolino v. Marcus is chief among them. Less encouraging is the fact that all forecasts suggest that the need for AMSA to be involved in the legal arena will surely increase in the coming months.
On occasions in the past, AMSA's leadership has evaluated the advisability of securing in-house counsel. The recent, and anticipated, increased level of legal engagement by the Association — inspired renewed consideration of this approach to meet AMSA's legal needs. As a result of discussions with Legal Affairs Committee leadership, and favorable deliberations by the Association's Strategic Planning Committee, Budget & Audit Committee and Board of Directors as a whole, the 2001 General Fund Budget recommends the addition of the position of General Counsel to the National Office staff.
As envisioned this position will serve as primary legal counsel for the Association, allowing it to engage more readily — and at lower cost — in litigation; review, advise and support member agencies in litigation/negotiations; provide important legal education and mentoring capabilities; and draft and comment on legislation and regulations. Above all, the Board of Directors believes that the addition of a General Counsel would serve to significantly enhance AMSA's legal services to its members.
Technical Action Fund Continues to Provide Significant Benefits to Members
Established five 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 has provided 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 five 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 2000 TAF initiatives include, but are not limited to, the Water Infrastructure Network initiative to secure increased federal infrastructure funding, support of the National Biosolids Partnership, and a number of initiatives related to mercury that POTWs must address. A complete summary of Association activities supported by the Technical Action Fund is provided in this Member Update under Attachment C.
As a result of the proposal to bring the majority of AMSA's legal services in-house, budgeted funds within the Technical Action Fund for legal retainer and litigation have been incorporated into the General Fund Budget. Under the projected 2001 budget, there would be $515,000 in Technical Action Fund income and $445,000 in expenses, leaving $76,000 for additional TAF projects next year.
AMSA Committees Set Agendas for the Future
Each summer, 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 D. As noted, committee initiatives frequently require the support of AMSA's Technical Action Fund. Recommendations 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 2000-2001 have been — and will be — a time of growth, change and challenge for AMSA. As AMSA enters its fourth decade of advocacy and service, initiatives throughout the year will support the objective of strategically positioning AMSA to be the driving force in national clean water policy. We plan to continue to focus our efforts largely on the legislative and regulatory arenas. Through leadership and member support we will continue to commit time and resources to address the challenging management issues faced by our membership. And new capabilities and services in the legal arena will provide added value for AMSA's members.This past year we have accomplished many things. Playing the most instrumental role in these accomplishments were AMSA's leadership and members, whose firm decisions and substantial participation lent unquestioned credibility to AMSA's positions and led to increased attention to its policy goals. Many thanks for your continuing participation and support.
Member Comment Invited
The Board of Directors encourages all members to review the 2001 Preliminary Budgets for both the General Fund and the Technical Action Fund. Please direct any comments you may have to Paul Pinault, AMSA's Treasurer and Chair of the Association's Budget & Audit Committee at 401/222-6680 or viae-mail at ppinault@narrabay.com, 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.
The Board of Directors and committee leadership will meet in Washington, DC on September 11-12, 2000 for the Association's Fall Leadership Retreat & Strategy Session. The Board will adopt a final 2001 budget at that time. Please provide your comments and recommendations prior to Monday, August 28, 2000.
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