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VICTOR VALLEY WASTEWATER RECLAMATION AUTHORITY Board Of Commissioners Staff Report |
| TO: | VVWRA Board of Commissioners |
| FROM: | Darron Poulsen, General Manager |
| SUBMITTED BY: | Xiwei Wang, Accounting Supervisor |
| DATE: | 01/29/2026 |
| SUBJECT: | Recommendation That the Board of Commissioners Authorize the General Manager to Amend the Fiscal Year 2026 Budget by Utilizing a Portion of the FY 2025 Excess Fund Reserves and Approve the Revised FY 2026 Salary Schedule to Reflect the Position Changes from the Mid-Year Organization Restructuring Process.
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| Fiscal Impact | N/A |
| Account Code: | |
| Funds Budgeted/ Approved: |
STAFF RECOMMENDATION
It is recommended that the Board of Commissioners authorize the General Manager to amend the FY 2026 Operating Budget by utilizing a portion of the excess fund reserve from FY 2025 to replenish the operating contingency accounts, as well as covering the additional costs needed for several capital projects. Also, it is recommended that the Board of Commissioners approve the revised FY 2026 salary schedule to reflect the position changes from the organization restructuring process in the current fiscal year.
PREVIOUS ACTION(S)
On June 26, 2025, the VVWRA Board of Commissioners approved the FY 2026 Budget.
BACKGROUND INFORMATION
The current Mid-Year budget review reflects a balanced budget to date and expected revenues and expenses are on track to meet fiscal year budgeted needs. As part of the Mid-Year budget revision process, staff revised the FY 2026 expected revenue budget based on year-to-date information as of November 30, 2025. Staff also recalculated the beginning 2026 fiscal year User Charge and Connection Fee fund reserve balances by using information from the FY 2025 audited financial statements. As a result, an additional beginning User Charge fund balance of $3,218,552 ($12,302,268-$9,083,716) is available to cover additional operating expenses and capital project expenditures.
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During FY 2026, staff made several transfers from the contingency accounts to cover the unexpected expenses in several accounts. Staff recommends that the Board of Commissioners approve the General Manager to utilize a portion of the $3,218,552 additional beginning User Charge fund balance to replenish the contingency accounts that require additional funding, as well as utilize a portion of the User Charge fund unallocated reserve surplus to cover the capital purchases and capital projects as listed below.
The former Director of Administration oversaw more than six functions. Management has proposed a restructuring plan to break down the broad responsibilities of the former Director role into specialized positions that allow for deeper expertise in critical areas.
The proposed new positions have no negative impact on the current fiscal year’s personnel budget. This is due to the cost savings realized from eliminating the Director of Administration position, as well as leaving the Director of Operations and Maintenance vacant, which offset the expenses associated with the new roles.
During FY 2026, staff made several transfers from the contingency accounts to cover the unexpected expenses in several accounts. Staff recommends that the Board of Commissioners approve the General Manager to utilize a portion of the $3,218,552 additional beginning User Charge fund balance to replenish the contingency accounts that require additional funding, as well as utilize a portion of the User Charge fund unallocated reserve surplus to cover the capital purchases and capital projects as listed below.
The former Director of Administration oversaw more than six functions. Management has proposed a restructuring plan to break down the broad responsibilities of the former Director role into specialized positions that allow for deeper expertise in critical areas.
The proposed new positions have no negative impact on the current fiscal year’s personnel budget. This is due to the cost savings realized from eliminating the Director of Administration position, as well as leaving the Director of Operations and Maintenance vacant, which offset the expenses associated with the new roles.