PALMDALE — The Palmdale Recycled Water Authority Board of Directors, on Monday, approved a $334,750 budget for the 2020 calendar year, against revenue of just under $700,000.
The Palmdale Recycled Water Authority is a Joint Powers Authority with Palmdale and the Palmdale Water District, created to implement the use of treated recycled wastewater for irrigation on public areas such as parks, golf courses and cemeteries.
The budget was approved on a 4-0 vote, with Director Helen Velador absent.
The budget includes a reserve fund of nearly $1.9 million and has provisions for expenses related to seeking financing for a proposed project to extend the existing recycled water pipeline about four-and-a-half miles, from McAdam Park to Dominic Massari Park, Treasurer-Auditor Michael Williams said.
The reserve fund will help with the beginning stages of the project, as the full funding is secured.
The budget also provides funding for the Authority’s new marketing and public outreach efforts.
“It’s a pretty healthy budget, but we’re always looking for more funds,” Director Austin Bishop said. “We’ve made some good progress over the last couple years as far as getting things well-organized. I’m looking forward to next year and ramping it up.”
The 2020 budget forecasts $697,500 in revenue, generated by $300,000 contributions from each of its members, the city of Palmdale and the Palmdale Water District. The Authority tripled these contributions last year to help it gain a state grant and low-interest state loan for the pipeline project.
It also includes predicted revenue in the amount of $60,000 from water sales and $20,000 from meter fees.
Miscellaneous fees and interest earning make up the remainder of the revenue.
The single-largest expense listed is $200,000 for contract services related to the Phase 2 pipeline extension project.
The Authority is seeking grant funding as well as private bonds to support the estimated $7 million project.
Staff hopes to have enough progress on the project plans in January to begin working on the bond financing, Executive Director Dennis LaMoreaux said.
Another $32,550 is allocated for the marketing and outreach effort recently put forth by the Board. This includes branding the Authority, since it does not now have much of a public presence, developing a website and various public outreach activities.
Depreciation expense totaling $35,000 relates to pipelines turned over to the Authority from the city of Palmdale, Williams said.