Member Update (MU05-08)

To:	Members & Affiliates
From:	National Office
Date:	June 1, 2005
Subject:	REPORT TO THE MEMBERSHIP FISCAL & ORGANIZATIONAL INITIATIVES FY 2006 PRELIMINARY BUDGETS
Reference:	MU 05-08

Each year the Association’s budget development process includes a careful review of revenues and expenses, as well as an assessment of dues levels to ensure our ability to deliver essential services to our members is consistently improved. It is based on this approach that preliminary Fiscal Year 2006 budgets for the Association’s General Fund and Targeted Action Fund (TAF) were developed and, subsequently, approved by the Board of Directors on May 2.

Under NACWA’s budget cycle, the Association’s Board of Directors adopts preliminary budgets in May, distributes the budgets to the membership for comment in June, reviews comments received, and votes on final budgets in July. NACWA is pleased to provide the Association’s membership with this report addressing both fiscal and organizational initiatives for the 2006 fiscal year.

Board Strives to Ensure Quality Service, Control Costs, in FY 2006 Budget
On May 2, 2005, NACWA’s Board adopted preliminary budgets for Fiscal Year 2006. These budgets are now – via this Member Update – presented to NACWA’s membership for review and comment. The preliminary FY 2006 General Fund Budget is presented in Attachment A and the FY 2006 preliminary Targeted Action Fund Budget is provided under Attachment B. Detailed information on the TAF on-going initiatives proposed in the preliminary FY 2006 TAF budget is provided in the TAF FY 2006 Budget Justification under Attachment C.

Overall, the Association’s FY 2006 General Fund will ensure that NACWA can both maintain and enhance its aggressive agenda in the legislative, regulatory and legal arenas – making certain that issues of critical importance to our members receive the attention they deserve in Washington. Additionally, a critical part of the FY 2006 budget development process was ensuring that funds continue to be allocated to reserves. With $2.96 million in FY 06 total revenues projected, a General Fund Budget allocation $40,000 for operating reserves and $10,000 to building replacement reserves will allow the Association to both build reserves and balance the budget.

In addition to providing for high quality management and enhanced service to members, NACWA’s FY 2006 General Fund Budget anticipates two changes with regard to member dues. The first is a proposed 5% increase in Public Member Agency and Public Affiliate dues. This increase will provide enhanced support for NACWA’s Targeted Action Fund – and ensure the ability of the General Fund to respond to increasing expenses and build operating reserves. Secondly, the Private Affiliate dues for Corporate Members will change per the second phase of the FY 2004 approved Private Affiliate dues structure. As with all dues revenue, 20% would be allocated in support of the Targeted Action Fund.

Targeted Action Fund Remains Strong & Vital
NACWA’s Targeted Action Fund (TAF) continues to prove its value. Now ten years old, the “stand alone” Targeted Action Fund strengthens the Association’s capability to achieve its short and long-term 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 enable NACWA to pursue a wide range of projects that are of critical importance in achieving our strategic goals and objectives. A complete summary of Association activities currently being supported by the Targeted Action Fund is provided in this Member Update under Attachment D.

Updated Strategic Plan, New Name, Revitalize Association
Last year the Association engaged in an aggressive Strategic Planning Initiative, marking a significant juncture in the organization’s history. The implementation of the resulting Strategic Plan (http://www.nacwa.org/private/leadinfo/2004-09-AMSAStrPln.pdf) is now underway and has already resulted in a number of positive changes that will ensure NACWA’s future success.

NACWA’s new Strategic Plan embraces the core purpose of being the leading advocate for responsible national policies that advance clean water and a healthy environment. The following are identified as the Association’s core values for the future:

A critical component of the new Strategic Plan is the ‘big audacious goal’ for NACWA’s long-term future. NACWA’s big audacious goal – when people say “environmentalist,” they think of us first – is a clear and compelling catalyst that will serve as a focal point for action for the Association 10 years into the future and beyond. Clearly, NACWA’s members felt it was time to identify themselves with the outcome of their efforts – clean water.

Through the Strategic Planning Initiative, NACWA’s leadership and members recognized that if the Association wants to be considered among the nation’s premiere environmental organizations, it must commit to work consistently to make the Association’s big audacious goal a big audacious reality. A name change for the Association was identified as an appropriate first step in this process – and one that would lay the foundation for all that would follow.

In May 2005, the Association celebrated its 35th Anniversary and its new name – the National Association of Clean Water Agencies (NACWA). NACWA’s business plan is currently being updated and will serve as a roadmap as we move forward together to implement the Strategic Plan.

Advocacy Remains NACWA’s Focus
No matter what our name, this association has – and always will be – focused on advocacy on behalf of the nation’s clean water utilities. FY 2006 will be no different. Together we will continue to build on our important work related to facilities and collection systems. Seeking solutions to both short and long-term infrastructure funding challenges will continue to be a priority, as will a wide array of other legislative and regulatory issues. NACWA’s influential position in legal issues affecting the clean water community will also remain strong. The upcoming edition of the NACWA Year in Review will showcase much of what we have collectively accomplished – and position the Association for all that lie ahead.

Strengthening Relationships a Priority
NACWA has always prided itself on building strong relationships – particularly in the nation’s capital – but a heightened emphasis is now being placed on working closely with state-based coalitions of NACWA members to the mutual benefit of all involved. Current plans call for a one-day high-level networking forum to be held in September of 2005 with active leaders of these organizations. NACWA leadership and staff view this session as a critical opportunity to better understand the needs of the Association’s members – and build strengthened relationships that will reap new benefits at the local, state and national levels.

In Summary . . .
As the Association moves forward in its fourth 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. We plan to continue to focus our efforts largely on the legislative, regulatory and legal arenas. Through leadership and member support, we will also continue to commit time and resources to address the challenging management issues faced by our membership – as well as provide support to wastewater sector-specific to security initiatives.

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

Member Comment Invited on FY 2006 Budget
The Board of Directors encourages all members to review the FY 2006 Preliminary Budgets for both the General Fund and the Targeted Action Fund. Please direct any comments you may have to Chris Westhoff, NACWA’s Treasurer and Chair of the Association’s Budget & Audit Committee (213/978-8158 or via e-mail at cwestho@atty.lacity.org) or NACWA’s Executive Director Ken Kirk (202/833-4653 or via e-mail at kkirk@nacwa.org). NACWA’s Board of Directors will meet in Hilton Head, South Carolina on July 20, 2005, and will adopt final FY 2006 budgets at that time. Please provide your comments and recommendations prior to Friday, June 17, 2005.
Many thanks.

Attachment A - Preliminary FY 2006 General Fund Budget (PDF)
Attachment B - Preliminary FY 2006 Targeted Action Fund Budget (PDF)
Attachment C - Targeted Action Fund FY 2006 Budget Justification (PDF)
Attachment D - Targeted Action Fund (TAF) Project Overview & Status Report (PDF)