Clark Reg Wastewater Dist WA Budget and Strategic Plan FY 2016

“Expanding the Boundaries of Service”
2016
Clark Regional Wastewater District
Adopted Budget

Clark Regional Wastewater District Adopted Budget2016
2016 Adopted Budget
Clark Regional Wastewater District
Clark County, Washington
For Fiscal Year
January 1 through December 31, 2016
Adopted by Resolution No. 1657
Dated: December 22, 2015

2016Clark Regional Wastewater District Adopted Budget

Table of Contents
1. Introduction
Directory of Officials..........................................................................................................................1
Budget Message .................................................................................................................................3
Budget in Brief.....................................................................................................................................7
District History .....................................................................................................................................9
Organizational Chart .........................................................................................................................11
District Departments and Services...............................................................................................13
District Service Area Map ................................................................................................................22
2. Strategic Plan
District Mission, Vision and Values..............................................................................................23
Strategic Planning ..............................................................................................................................24
Fiscal Year 2016 Goals and Objectives.......................................................................................25
3. Budget Process
Budget Process....................................................................................................................................29
Budget Calendar .................................................................................................................................31
4. Adopted Budget by Account
Budget Summary................................................................................................................................33
Budget Overview.................................................................................................................................34
Operations and Maintenance Account ......................................................................................35
Alliance Reserves Account...............................................................................................................47
Unemployment Reserve Account.................................................................................................49
Debt Service Account........................................................................................................................51
Debt Service Reserve Account.......................................................................................................53
Existing Assets Restoration and Replacement Account.......................................................55
New Assets Capital Improvement Projects Account.............................................................57
Fund Balance Summary....................................................................................................................61
5. 2016-2021 Six-Year Capital Program...............................................................................................63
6. Appendix
Appendix 1 – Financial Policies .....................................................................................................83
Appendix 2 – Equivalent Residential Units ...............................................................................87
Appendix 3 – Service and Connection Charges......................................................................88
Appendix 4 – Where Does My Money Go? ..............................................................................89
Appendix 5 – Outstanding Debt/Loans by Type....................................................................90
Appendix 6 – Debt/Loans Repayment Schedule....................................................................91
Appendix 7 – Employees (FTEs) by Function – Ten Years...................................................92
Appendix 8 – Salary Range and Positions.................................................................................93
Appendix 9 – Demographic Statistics – Ten Years ................................................................94
Appendix 10 – Employees for Ten Principal Employers.......................................................95
Appendix 11 – Ten Largest Customers – Current and Ten Fiscal Years Ago...............96
Appendix 12 – Limitation of Indebtedness...............................................................................97
Appendix 13 – Glossary....................................................................................................................98

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Directory of Officials
RCW 57.12.010 provides for a Board of Commissioners consisting of three members to serve as
a governing body for the District. Each Commissioner serves a 6-year term with elections held
every two years.
Elected Officials Serving During 2016
Norm Harker L. Neil Kimsey Denny Kiggins
Term: 6 Years Term: 6 Years Term: 6 Years
Expiration: December 2021 Expiration: December 2019 Expiration: December 2017
General Manager Finance Director/Treasurer Attorney
John M. Peterson, P.E. Ken Andrews, CPA Rod Kaseguma
Mailing Addresses:
District Office: PO Box 8979
Vancouver, WA 98668-8979
Attorney: PO Box C-90016
Bellevue, WA 98009-9016

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Budget Message
Board of Commissioners
Clark Regional Wastewater District’s Customers and Partners:
The District is pleased to present its Adopted Budget for the Fiscal Year 2016 (FY 2016), from
January 1 to December 31, 2016. This budget is presented in accordance with the District’s
financial policies and direction from the Board of Commissioners. The budget document is
formatted to provide an overview to help readers better understand the District’s FY 2016
Adopted Budget as a financial framework. Comparisons in this Budget Message are “budget to
budget” from the Board adopted FY 2015 budget to this FY 2016 Adopted Budget, unless
otherwise noted.
While not required to prepare a budget under Washington State law, the District chooses to
prepare a budget in order to both plan and track revenues and expenditures for the District’s
operations. A budget is balanced when the sum of estimated sources equals or exceeds the
sum of estimated uses. For FY 2016 the District has forecasted that sources, with anticipated
fund balance draw down, will equal uses.
Budget Summary
The Adopted Budget for FY 2016 is $28.6 million for all sources and uses of funds. Sources
include $18.5 million from sewer service charges, $4.7 million from connection fees, $1.3 million
from other revenues and $4.1 million from carryover fund balance. Uses include $8.8 million for
treatment costs, $5.5 million for salaries and benefits, $2.8 million for services, supplies and
other expenses, $2.0 million for debt service and $9.5 million for capital construction costs and
capital purchases.
Total budgeted sources for FY 2016 are down 20.6% in comparison with the prior year budget.
Higher sewer service and System Development Charge (SDC) connection revenues of 5.9% and
30.6%, respectively, are heavily offset by not having any PWTF loan draws budgeted in 2016
compared to $8.6 million in 2015. As identified below, we are budgeting a corresponding
decrease in capital expenditures in 2016 vs. 2015.
Total operating and maintenance (O&M) expenditures for FY 2016 are expected to increase by
14.5% primarily due to the increase in treatment expense related to Discovery Clean Water
Alliance (Alliance) refunding District debt supporting Phase IV of the Salmon Creek Waste
Management System expansion of $8.7 million and issuing $3.3 million of new debt (bonds) to
support Alliance capital projects planned to materialize over the next five years.

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The District uses the cash basis for budgeting purposes and the accrual basis for accounting and
financial reporting. The cash basis recognizes revenues and expenditures as cash transactions
occur, while the accrual basis recognizes revenues in the period in which they are earned and
expenses in the period in which they are incurred. Generally Accepted Accounting Principles
require the accrual basis to be used for financial reporting. The budget is prepared using the
cash basis in order for the District to plan for cash flow needs as they occur.
District Sewer Rates
Sanitary sewer base rates are increased by $1 to $38 per equivalent residential unit (ERU) per
month for the Central service area in the 2016 Adopted Budget. In addition, the District
established rates of $56.50 per ERU for the Ridgefield service area. The Ridgefield rates include
the base rate of $38 per month plus an $18.50 per month System Integration Charge (SIC) which
represents an overall $0.70 increase per ERU for the Ridgefield service area customers vs. 2015
rates.
Sources
Sewer service charges: $18.5 million. Sewer service charges are budgeted to increase $1.0
million, or 5.9%. The primary drivers being the increase in base rate of $1 per month per ERU
and anticipated growth in customers throughout 2016.
Connection fees: $4.7 million. The District utilizes a three tiered System Development Charge
(SDC) structure (depending on where sewer flows for treatment), one for each of the three
treatment plants. The District is forecasting a total of 940 new paid connections in 2016, an
increase of 144 over the 2015 budget. The budgeted increase in connections results in an
increase in budgeted connection fee revenue over the prior year of 30.6%. SDC revenue is used
to fund new capital improvement projects within the District’s service areas.
Other revenues: $1.3 million. Investment interest is budgeted for $0.2 million,
intergovernmental revenues for $0.6 million, miscellaneous revenues for $0.4 million and local
facilities charge (LFC) reimbursements for $0.1 million.
Carryover fund balance: $4.1 million. Carryover fund balance will be used to fund capital
construction in the 2016 budget.
Uses
Salaries and benefits: $5.5 million. Salaries and benefits are budgeted to increase by 6.2% over
the 2015 budget. Salary ranges were increased 2.0% for a cost of living adjustment, and for

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those employees not at the top of their pay range, a potential 2.0% or 4.0% step increase has
also been budgeted for at their anniversary date. Benefits were increased in line with higher
pension contributions to the Washington Public Employees Retirement System (which realized a
2.0% increase) and slightly higher medical and dental costs in 2016.
Services, supplies and other expenses: $2.8 million. Service costs are budgeted at $0.8 million,
supplies at $0.7 million and other expenses (insurance, utilities and B&O taxes) for $1.3 million.
Treatment costs: $8.8 million. Treatment costs are budgeted 21.4% higher, primarily due to an
increase in debt service for debt now held by the Alliance.
Debt service: $2.0 million. Debt service (principal and interest) for District issued bonds and all
Public Works Trust Fund loans in 2016 total $2.0 million.
Construction costs and capital purchases: $9.5 million. Construction costs are budgeted at $3.7
million for existing assets restoration and replacement projects/purchases and $5.8 million for
new assets capital improvement projects/purchases.
Outlook
The budget format presented is utilized as a management tool to assist in both planning and
tracking District operating and capital expenditures. The District will continue to monitor the
various financial activities and will continue reporting those results to the governing body, rate
payers, management and to the general public.
Clark Regional Wastewater District’s vision is to be “an active partner in Clark County, to support
economic development and to manage and protect water resources.” It is this vision of our
future role that motivates the District to work collaboratively with our regional partners and
community stakeholders. The District anticipates 2016 being another rewarding year. The District
continues to provide staff with opportunities to instill the best business practices for our
ratepayers. The District is focused on looking for ways to enhance customer service and to
continually improve all of our customers’ experience with the District.
Sincerely,
John M. Peterson, P.E. Ken Andrews, CPA
General Manager Finance Director/Treasurer

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20152016
SourcesBudgetBudget
ChargesforSewerServices17,473,733$18,477,588$
ConnectionFees3,602,0804,703,880
IntergovernmentalRevenue620,000630,500
Misc.OtherSources595,242721,668
PWTFLoanDraws8,603,620-
CarryoverFundBalance8,461,2754,025,626
TotalSources39,355,950$28,559,262$
Chargesfor
Sewer
Services
44.4%
Connection
Fees
9.2%
Intergovern-
mental
Revenue
1.6%
Misc.Other
Sources
1.5%
PWTFLoan
Draws
21.9%
Carryover
FundBalance
21.5%
2015Sources
Chargesfor
Sewer
Services
64.7%
Connection
Fees
16.5%
Intergovern-
mental
Revenue
2.2%
Misc.Other
Sources
2.5%
Carryover
FundBalance
14.1%
2016Sources
BudgetinBrief

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20152016
UsesBudgetBudget
Salaries&Benefits5,180,253$5,499,178$
Supplies&Services2,473,3722,761,065
TreatmentCosts7,288,6598,848,295
DebtService3,215,5231,955,625
CapitalExpenditures20,541,6239,495,100
ReservesTransfertoAlliance656,520-
TotalUses39,355,950$28,559,262$
Salaries&
Benefits
13.2%
Supplies&
Services
6.3%
Treatment
Costs
18.5%
DebtService
8.2%
Capital
Expenditures
52.2%
Reserves
Transferto
Alliance
1.7%
2015Uses
Salaries&
Benefits
19.3%
Supplies&
Services
9.7%
Treatment
Costs
31.0%
DebtService
6.8%
Capital
Expenditures
33.2%
2016Uses
Salaries&
Benefits
13.2%
Supplies&
Services
6.3%
Treatment
Costs
18.5%
DebtService
8.2%
Capital
Expenditures
52.2%
Reserves
Transferto
Alliance
1.7%
2015Uses
Salaries&
Benefits
19.3%
Supplies&
Services
9.7%
Treatment
Costs
31.0%
DebtService
6.8%
Capital
Expenditures
33.2%
2016Uses
BudgetinBrief

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District History
Clark Regional Wastewater District (formerly known as Hazel Dell Sewer District and Clark
County Public Sewer District No. 1) has an important history of service and support for the
communities it serves. In 1958, the District was formed to meet the needs of a growing business
community that was not served by sewer. The newly formed District provided wastewater
treatment and collection for 300 Hazel Dell customers. In the 1970s, through separate interlocal
agreements with Clark County and the City of Vancouver, the parties acknowledged the
economies of scale for treatment. This allowed the District to focus on collection and
transmission, with the County and City providing treatment through their existing plants.
In 1993, the County requested the District to take over all of its collection and transmission
functions, leaving the County to focus only on treatment at the Salmon Creek Treatment Plant
(SCTP). In 1995, the County, the City of Battle Ground and the District entered into a three-way
agreement to expand and improve the SCTP. The District and Battle Ground own 100% of the
treatment capacity of the plant, with the County providing the facility and operating staff. In
2003, the three partners, under the direction and management of the District, undertook a $77.0
million dollar capital improvement upgrade of the Salmon Creek Wastewater Management
System (SCWMS). The project is completed, providing additional treatment capacity for years
ahead.
In 2009, an initial “Sewer Coalition Planning Study” was completed with participation from
twelve Clark County public agencies, including all that provide sewer service within the county,
to explore the potential for improved efficiencies in providing wastewater services to Clark
County residents. This study resulted in a county-wide comprehensive sewer plan, detailing
transmission and treatment facilities necessary to provide sewer service within the county for the
next 50 years.
In 2012, another result of the 2009 study, four partner agencies (Clark Regional Wastewater
District, Clark County and Cities of Ridgefield and Battle Ground) signed a Memorandum of
Understanding (MOU) providing an agreement-in-principle for the framework of a new regional
partnership. The regional sewer entity, Discovery Clean Water Alliance (Alliance), was formally
incorporated in early 2013 by the four member agencies. Alliance transition activities occurred
throughout 2013 and 2014. The Alliance became fully operational effective January 1, 2015 with
all members, including the District, transferring debt, cash reserves and fixed assets as outlined
in the Interlocal Formation Agreement (IFA) to the Alliance. Effective January 1, 2015, the
Alliance owns and operates transmission lines, pump stations and treatment plants to provide
sewer treatment service to the mid-Clark County region (City of Battle Ground and the District’s
service areas, including City of Ridgefield).

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Also in 2012, the District and the City of Ridgefield (Ridgefield) signed a MOU for transfer of
ownership of all of Ridgefield’s sewer utility collection system assets, liabilities and all its sewer
utility customers to the District. A final collection system transfer agreement and franchise
agreement were finalized and signed by the District and Ridgefield in 2013. As of January 1,
2014, Ridgefield’s approximately 1,800 sewer utility customers became customers of the District.
The District, throughout its history, has responded to the growing and changing needs of its
stakeholders including its current and future ratepayers. In 2016, the District has 50 employees
(50 FTEs). Including the District’s Ridgefield service area, the District will maintain over 605 miles
of pipe and 63 pump stations throughout the 46 square miles of District service territory.
District Organization
Clark Regional Wastewater District is a special purpose District organized under Revised Code of
Washington (RCW), Title 57. As a special purpose District, it is chartered to provide sanitary
sewer services to unincorporated Clark County and the City of Ridgefield. As a public agency, it
has a three-member Board of Commissioners who resides within the District service area and is
elected by the ratepayers within those areas to six-year terms. The General Manager, hired by
the Board of Commissioners, is the District’s administrator and manages the other 49 District
employees within Operations, Finance, Administration and Engineering departments.
Our Ratepayers and Stakeholders
The District provides services to people living in unincorporated Clark County and the City of
Ridgefield. The District provides sewer services and receives monthly rates from over 29,000
customers, including the Ridgefield service area customers. The District’s customer base is
comprised of both residential and commercial customers. The District anticipates their customer
base to grow to approximately 30,000 by the end of FY 2016. In addition, the District provides
wastewater industry leadership, engineering expertise and, in many cases, maintenance field
support to the smaller cities within Clark County.

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2016
BOARD OF COMMISSIONERS
General Manager
1 FTE (Contract)
Assistant Manager
1 FTE (18)
Board Clerk/
Administrative
Services Manager
1 FTE (12)
Maintenance
Specialist I
1 FTE (7)
Senior Electrician /
Systems Integrator
1 FTE (12)
Facilities
Technician
1 FTE (8)
Lead Maintenance
Specialist
(Pressure Systems)
1 FTE (10)
Operations Manager
1 FTE (15)
Engineering
Technician
(Capital)
1 FTE (10)
Development
Program Manager
1 FTE (15)
Administrative
Assistant III
4 FTE (8)
Dotted Line = Contract legal counsel
Solid Line = Direct reporting relationship
( ) = Salary Range
Total Positions: 50; Total FTE: 50
Lead Maintenance
Specialist
(Gravity)
1 FTE (10)
Maintenance
Specialist I
1 FTE (7)
Maintenance
Specialist II
3 FTE (8)
Maintenance
Specialist II
3 FTE (8)
Maintenance
Supervisor
1 FTE (13)
District Engineer
1 FTE (17)
Rod Kaseguma
Legal Counsel
(Contract)
Administrative
Assistant II
1 FTE (6)
HR/Risk Mgmt
Director
1 FTE (14)
Capital
Program Manager
1 FTE (16)
Senior Engineering
Technician (GIS)
1 FTE (11)
Engineering
Technician
(Pretreatment)
(Development)
(Inspection)
3 FTE (10)
Senior
Administrative
Assistant
1 FTE (9)
Assistant
Engineering
Technician
(Development)
(Future) (8)
Maintenance
Specialist III
2 FTE (9)
Maintenance
Specialist III
2 FTE (9)
Senior
Engineering
Technician
(Development)
1 FTE (11)
Project Manager
1 FTE (14)
Pretreatment
Coordinator
1 FTE (12)
Finance Director/
Treasurer
1 FTE (17)
Finance Specialist
3 FTE (8)
Senior Accountant
1 FTE (11)
Accounting Manager
1 FTE (13)
Accounting
Technician
1 FTE (9)
Assistant Finance
Specialist
1 FTE (6)
Lead Finance
Specialist
1 FTE (10)
Senior Finance
Specialist
1 FTE (9)
Senior Project
Manager
1 FTE (15)
Organizational Chart
ClarkRegionalWastewaterDistrictAdoptedBudget

2016ClarkRegionalWastewaterDistrictAdoptedBudget
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District Departments and Services
Operations Department
The Operations department, with a staff of eighteen (18) skilled, full-time employees, provides
many services for the District including:
• Underground collection system condition assessments
• Maintenance and preservation programs
• Pump station maintenance
• Septic Tank Effluent Pumping (STEP) system maintenance
• Engineering assistance
• Facility maintenance / Fleet management
• Risk mitigation
• Asset optimization
Underground Collection System Condition Assessments. In addition to ongoing condition
assessments of its own collection and transmission system, the Operations staff also partners
with our customers, in a diagnostic and advisory role, in various line maintenance challenges
that occur with customer-owned assets. The Operations department has a Grounds Equipment
and Maintenance (GEM) agreement with regional agencies and provides CCTV inspection (CCTV)
condition assessment and line cleaning services for several other local government agencies in
Clark County.
Maintenance and Preservation Programs. Mainline maintenance consists of cleaning and
creating televised recordings via CCTV of sewer pipeline ranging from 6” - 36” in diameter. The
District, within its two service areas, owns and maintains 70 miles of pressure mains. The total
pipe inventory as of January 1, 2016 is just over 605 miles, including service laterals. CCTV uses
specialized video equipment to inspect the inside of pipes and identify defects or problematic
lines. Then the lines are routinely cleaned using high pressure water cleaning (HVC) with a
vacuum system for debris removal, along with specialized cleaning processes such as mechanical
root cutting and chemical root treatments. Operations staff identifies lines that have potentially
higher levels of grease and debris and accelerates the cleaning frequencies for grease removal in
those areas. Line assessment and cleaning activities include a condition assessment rating for
each pipe segment, including the identification of any pipe defects. These ratings drive several
of the maintenance and engineering programs, including assessment and maintenance
schedules, repair and refurbishment budgets, criticality ratings utilized for building emergency
response plans, capacity issues, and long-term capital replacement programs. Operations staff
also manages the chemical dosing and air treatment systems designed to treat odorous and
corrosive gasses that reside in the wastewater systems.

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Pump Station Maintenance. The Operations staff provides the operation and maintenance of 63
sewer-pumping stations. Force main maintenance is also part of the pump station maintenance
program. Current maintenance standards and practices include detailed tasks that are
performed on a daily, weekly, monthly and annual basis to preserve the life of the stations
assets. Detailed annual maintenance standards are documented in the department’s
maintenance plan.
STEP System Maintenance. The Operations staff maintains the functionality of 814 individual
STEP systems. These STEP systems are located in the satellite areas of Meadow Glade,
Hockinson, Van Ridge and South Ridge, as well as throughout the Ridgefield service area. The
STEP’s are individual pumping systems that pump into a community force main (pressure pipe)
required in areas with flat topography. The Operations department is responsible for the
inspection of new construction systems in these areas, as well as maintenance, customer contact
for property access and repairs of the existing STEP systems.
Engineering Assistance. The Operations department provides support to the District’s
Engineering department in the flow monitoring and pretreatment functions. The Operations
staff provides pipeline inspection data from the CCTV inspections to aid in identifying sewer
lines that are in need of repair or replacement. Operations staff also assist with the plan review
of new pump station designs and piping systems and works with Engineering to establish
District standards.
Facility Maintenance / Fleet Management. The District’s administration and maintenance
facilities are managed by the Operations department. The District outsources the repair and
annual maintenance of District vehicles and equipment. Fleet management responsibilities
include minor maintenance activities related to passenger vehicles, pickups and small
construction and safety equipment. The Facilities staff manages the routine maintenance
schedules of all fleet vehicles owned by the District.
Risk Mitigation and Optimization of Resources. Risk mitigation is a central function of the
Operations & Maintenance department. One tool instrumental to risk mitigation is the
department’s Supervisory Control and Data Acquisition (SCADA) monitoring system that
monitors the pump stations 24-hours per day, 365 days a year. This automation provides
continuous monitoring to alert staff of any potential risk associated with equipment failure, and
the optimization of electricity used to run the stations pumping systems, and optimization of
chemical usage for odor control. Implementation and upgrading of the SCADA system has
resulted in cost savings due to the elimination of phone lines as well as overtime costs, as issues
are identifiable before they become an after-hours emergency. Risk Mitigation is the most
value-added feature of SCADA, as alarms sound in real time to alert staff of an issue before it
becomes a sewer spill, potentially creating a hazard to our customers as well as the environment.

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Asset Optimization. The Operations and Maintenance department employ Lucity, a software
package designed for public works, for asset management and maintenance needs. With Lucity,
the Maintenance department has been able to seamlessly integrate most all of their major
systems including inventory, inspection, maintenance management and GIS. In 2015, the
Maintenance staff integrated Lucity Mobile. This component of the Lucity software has allowed
staff to get locates, work orders, GIS mapping and enter inspection data, all from the field, on a
tablet or other mobile device, without making trips to the office or taking extra time each day to
sit at a computer. This allows the District to recognize cost savings of not only man hours, but
less gas and maintenance costs relating to vehicle use.
Finance Department
The Finance department, with a staff of ten (10) dedicated, full-time employees, provides a wide
range of services for the District, under the direction of a licensed certified public accountant.
These services include but are not limited to the following:
• Customer Service
• Permits
• Accounting
• Treasury management
• Budget/forecasting
• Application system management/development
• Discovery Clean Water Alliance (Alliance)
Customer Service. As a customer-focused utility, Finance considers customer service an ongoing
improvement process. We continue to evaluate how to improve and enhance our levels of
service and provide the same quality of service for our customers that we would expect as
customers. The District anticipates managing close to 32,000 telephone calls and processing
approximately 185,000 billing statements and receipting nearly 1,800 walk-in payments. In
addition, the District will continue to manage approximately 200 high-resource customers
monthly.
Permits. In addition to utility billing customer service responsibilities, the Finance department is
responsible for issuing building permits. Finance is on track to issue roughly 1,056 permits in
2015 which is an increase of 261 permits over 2014. This is 814 more permits than were issued
in 2009 at the height of the recession. The District has continued to see post-recession era
growth in its Central service area and year-over-year growth in its Ridgefield service area.
Accounting. The department maintains the financial records of the District in compliance with
state and federal regulations. The financial statements of the District are audited annually by the

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Washington State Auditor’s Office (SAO) for adherence to Generally Accepted Accounting
Principles (GAAP). For the last 33 years SAO has had no findings to include in their Auditors
report. In addition to maintaining the financial records and preparing the statements for audit,
core accounting functions provided by Finance include payroll, accounts payable, project
accounting, accounts receivable, contract receivables and maintaining the general ledger.
Various reports, such as the Comprehensive Annual Financial Report, Board and management
financial reports, and other audit and bond compliance statements are prepared monthly,
quarterly and annually. The District has been awarded the Certificate of Achievement for
Excellence in Financial Reporting for the last 27 years and strives to continue to provide financial
information for District stakeholders that are transparent, informative and relevant.
Treasury Management. The primary responsibility and goal of the treasury function is to ensure
the financial resources of the District are safeguarded and the District’s cash reserves are
invested in a safe and prudent manner. To accomplish this, the District issues and/or defeases
debt, in an effort to provide the lowest financing costs to our ratepayers. In addition, the assets
and cash transactions are secured by evaluating and enhancing internal controls and improving
business processes, like the recording of assessments, liens and the satisfaction thereof.
Budget/Forecasting. The District utilizes a six-year revenue and expense forecast and the
assumptions used in the preparation of the forecast to ensure adequate revenues are available
for necessary operational and capital expenditures. The budget is a piece of the six-year
forecast in that it is developed from the compiled information and considers the needs of each
department to develop an operating budget. Budget preparation also necessitates internal
coordination and facilitation of the capital plan information with Engineering, specifically to
determine how future projects will affect the Existing Assets Replacement and Restoration (R&R)
account, as well as the New Assets Capital Improvement Projects (CIP) account. The
Management team provides valuable input throughout budget preparation process. The budget
is presented to the Board of Commissioners for their review and adoption as the final step.
The District evaluation of current revenue forecasts necessary to adequately fund future capital
and R&R needs and keep pace with the increased costs for operational activities, has indicated
the need to raise base rates $1 per equivalent residential unit (ERU) per month in 2016. The
District will continue to manage costs and spend down some reserves to minimize the need for
additional rate increases beyond this. Despite the rate increases over the last four years, the
District base rates are still more affordable and stable than 32 other providers in Clark County
and across Western Washington. During the same 6 year period from 2010 to 2016, other
providers have raised their rates on average $10 per month, where the District has raised rates a
total of $4 per month. This is reflective of the District’s efforts to keep costs at or below the rate
of inflation. In recognition of its budgetary efforts, The District was awarded its first ever
Washington Finance Officers Association (WFOA) Distinguished Budget Award for its 2015

17
Adopted Budget. This award is the highest form of recognition in fiscal planning and budgeting
within the State of Washington.
Application System Management/Development. As needed, the Finance department upgrades
its existing financial systems and related components, as well as new system modules, in an
effort to eliminate redundancies and facilitate integration of workflow. A recent example of this
was in 2015 when the District added a quick pay feature to its online bill pay system, another
added convenience for customers to pay their sewer bill. In utilizing the quick pay feature,
customers no longer need to register an account to pay online, yet another way the District
demonstrates its focus on customer service.
Discovery Clean Water Alliance (Alliance). The District, in conjunction with its partners (Clark
County and the Cities of Battle Ground and Ridgefield), formed Discovery Clean Water Alliance
(Alliance) under the Joint Municipal Utility Services Act statute in January 2013. The District
provides Administrative Lead services for Discovery Clean Water Alliance (Alliance). The Finance
department provides financial and treasury services for the Board of Directors of the Alliance.
These services include, but are not limited to, the preparation of the operating and capital
budgets, quarterly and annual financial reporting, CAFR development, Washington State
Auditor’s Office (SAO) audit process management, financial policies compliance, debt and
investment management, accounts receivable and accounts payable. The District’s Finance
Director is the appointed Treasurer for the Alliance.
Administration Department
The Administration department, with a staff of ten (10), provides executive support to the
District Board of Commissioners and is responsible for administering and managing the overall
affairs of the District. The department is led by the General Manager, with support from the
Assistant Manager, Human Resources/Risk Management Director, Board Clerk/Administrative
Services Manager and six (6) Administrative Assistant support staff. The Administration
department’s core functions include:
• District management
• Support to the Board of Commissioners
• APWA Accreditation
• Human Resources
• Risk Management
• Succession Planning
District Management. The Administration department is active in all of the general management
practices and in oversight of all District services and activities. Administrative staff administers

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and maintain oversight of intergovernmental coordination with partner agencies throughout the
community. Specific day-to-day operations of District functions are the responsibility of
department Managers. The Managers work closely with Administrative staff in “providing
customer-focused, professional wastewater services in an environmentally and financially
responsible manner.” In addition, public involvement and outreach activities, along with the
development and implementation of key documents, presentations and initiatives are
consistently provided by the Administration department.
Board of Commissioners (Board). Board support is provided by Administrative staff to ensure all
applicable laws and regulations for open public meetings are adhered to, and ensure effective
and efficient due process for all individuals, organizations and businesses that seek to appear
before the Board at their regularly scheduled meetings.
APWA Accreditation. The Administration staff is instrumental in facilitating the process of APWA
Accreditation. Originally accredited in 2005 and re-accredited in 2009 and 2015, the District is
the first and only Special Purpose Government to carry the APWA Accreditation in North
America. The purpose of the accreditation process is to provide a means of formally verifying
and recognizing public works agencies for compliance with the recommended practices set forth
in the Public Works Management Practices Manual. The accreditation process is completely
voluntary.
Human Resources (HR). Administration of the HR program includes employment, recruitment,
compensation / benefits, employee relations, training and employee development, personnel
record management, personnel policy and procedure development, legal compliance and
internal consulting. The District offers a very competitive benefits package upon hire. The
benefits include Washington State PERS, fully paid medical and dental benefits including vision
coverage, paid sick leave, paid vacation, life insurance, medical and dependent care spending
accounts, as well as short and long-term disability options. The Board of Commissioners has
approved an annual 2% cost of living adjustment (COLA) for the foreseeable future. This 2% is
slightly above the increase in the Consumer Price Index for the last two years. Along with the
2% COLA per year, employees are awarded either a 2% or 4% increase in pay based on
performance reviewed annually, on their anniversary date.
Risk Management (RM). The District’s Human Resource/Risk Management Director ensures
compliance with all applicable laws, ordinances, policies and guidelines concerning safety, health
and employment throughout the District. HR administers Risk Management program activities,
including general liability insurance and claims processing, risk assessment and mitigation
strategies and the design, development and implementation of District safety programs and
procedures in accordance with Washington Industrial Safety and Health Administration (WISHA)
and Occupational Safety and Health Administration (OSHA) standards.

19
Succession Planning. A current priority for the Human Resource/Risk Management Director is
the undertaking of succession planning. With individuals in key positions at or nearing
retirement age, the District is focusing not only on recruitment efforts for these positions, but
also career development within the existing staff. This planning is necessary to increase the
availability of experienced and capable employees to fill these positions when they become
available.
Discovery Clean Wastewater Alliance (Alliance). The District, in conjunction with its partners
(Clark County and the Cities of Battle Ground and Ridgefield), formed the Discovery Clean Water
Alliance (Alliance) under the Joint Municipal Utility Services Act statute in January 2013. The
General Manager and Administrative staff also provides support to the Board of Directors of the
Alliance. These responsibilities include executive and administrative services such as agency
coordination, clerk for the Board, public outreach and oversight of the operational committees.
Additionally, the District’s HR/RM Director serves as the Risk Management representative of the
Alliance with the Water and Sewer Risk Management Pool (WSRMP). The District is also
responsible for coordination with the Alliance legal counsel, via contract, and for overseeing the
development of the complete administrative framework.
Engineering Department
The Engineering department provides full-service engineering services to the District and its
customers under the direction of the District Engineer, a licensed Professional Engineer (P.E.).
This department of twelve (12) provides the following services:
• Annexation process management
• Development review
• Capital facility planning
• Geographic information system (GIS)
• Capital program management (design, inspection services & construction management)
• Septic elimination program (SEP)
• Pretreatment program
Annexation Process Management. The Engineering department oversees the “annexation”
process for the District. Annexation is the formal process by which the District expands its
service area, administered in accordance with RCW 57.24. The District is designated the service
provider to roughly nine (9) new square miles of urban growth area within the County’s 2007
Comprehensive Plan update. Generally expanded via the petition method of annexation, at the
request of property owners, the District has annexed approximately 70% of the County’s urban
growth area through year-end 2015.

20
Development Review. The Engineering department provides assistance for new development,
current customers and existing homes in need of sewer service. In addition, property owners
obtain record drawing information for assistance in locating their existing system for connection.
Capital Facility Planning. Planning within the District is a two-part process initiated with long-
range planning and followed by sub-basin planning. Long-range basin planning is performed to
develop a 20-year General Sewer Plan (GSP) to address the infrastructure needs to support
urban incorporation by the County. The District’s GSP is currently being updated in conjunction
with Clark County’s comprehensive plan update in compliance with requirements of the Growth
Management Act. The GSP provides a summary of the capital improvement projects and the
associated costs for the planning period. More detailed sub-basin planning is performed within
the framework of the GSP to identify the means and methods of extending service to individual
parcels.
Geographic Information System (GIS). The District maintains a state-of-the-art computer
mapping, archiving and analysis system. The GIS platform is used in support of Engineering,
Finance and Maintenance functions at the District. The mapping system covers both the
District’s service areas, and is used extensively for support to customer service, planning, design
and decision making. GIS is also an integral part of the District’s Maintenance Management
System (MMS).
Capital Program Management (Design, Inspection Services and Construction Management). The
District administers an active Capital Program to maintain and expand the sanitary sewer
collection system. The Capital Program provides in-house services in support of Restoration and
Replacement (R&R) projects and developing and delivering new Capacity/Infrastructure projects
(CIP). District staff directs the overall Capital Program and each individual project, including
prioritizing, planning, project management, bid processing, construction contracting and
construction closeout. Under a District staff Project Manager, spot repair projects are designed
internally for bid and construction, but most projects are designed by professional engineering
consultants for bid and construction. District staff provides construction management and
inspections for most projects, while utilizing consultant services when needed for large or
complex projects and during peak construction periods to supplement staff. All work is
performed under the direction of a licensed P.E.
The District utilizes a process that combines GIS analysis with the Maintenance Management
System (MMS) data to produce an R&R program that identifies sewer pipes that are in the worst
condition and likely to cause the greatest environmental harm if failure were to occur. By
identifying critical infrastructure that has a higher risk of failure, the District can focus capital
expenditures most effectively. The 2016 Capital Program will continue to reflect projects
identified by this process.

21
The annual budget identifies the total expected expenditure for each of the projects contained
within the Capital Program. The District maintains an ongoing detailed Six-year Capital
Program, with an annual Capital Program coming out of that detailed plan for the Board’s review
and approval.
Septic Elimination Program (SEP). Supporting the District’s vision of partnerships to protect
water resources in the District’s service area, the District maintains a formally established Septic
Elimination Program (SEP) which extends sewer service to residential homes within the District.
The District also continues to work closely with the Clark County Public Health Department to
provide sewer service for customers who are faced with the removal of their failing septic
systems through other Local Facilities programs (i.e. Customer Generated Infrastructure and
District Installed Infrastructure).
Pretreatment Program. The District operates the state-mandated Industrial Pretreatment
Program for the Salmon Creek Wastewater Management System, implementing national
pretreatment standards necessary to protect receiving treatment systems. By agreement, the
District operates the program within the unincorporated areas of Clark County, an area in which
the District discharges into the City of Vancouver’s Westside Treatment Plant, and within the
Cities of Battle Ground and Ridgefield. This includes comprehensive pretreatment responsibility
within the District system of sewers, as well as compliance sampling at the Salmon Creek
Treatment Plant and pretreatment review at the City of Battle Ground. The District performs
pretreatment surveys, mandated inspections of both private and public commercial and
industrial facilities and produces a required yearly compliance report.
Discovery Clean Water Alliance (Alliance). The District, in conjunction with its partners (Clark
County and the Cities of Battle Ground and Ridgefield), formed Discovery Clean Water Alliance
(Alliance) under the Joint Municipal Utility Services Act statute in January 2013. The Engineering
department provides capital program management support services for the Alliance. Capital
program management support services include capital plan development, capital plan delivery,
regional asset development review, regional asset wastewater volume and quality management
and regulatory compliance management, as well as other non-listed Engineering support
services.

22
District Service Area Map

23
District Mission, Vision and Values
Mission
Providing customer-focused, professional wastewater services in an environmentally and
financially responsible manner.
Vision
An active partner in Clark County, to support economic development and to manage and
protect water resources.
Values
The District is committed to provide a high level of service to its customers and the community.
The District fulfills this commitment through its staff, a team of innovative, talented, high-
performing individuals who work together seeking to make a difference and keeping the
customer first.
Stewardship of the environmental and financial resources entrusted to the District
Employees who are talented and motivated professionals that work together in a spirit of
cooperation
Responsibility, integrity and fairness in every decision, every interaction and in every
challenge we undertake
Valued Partner involved and active within our communities
Innovation and Learning, creating an environment of personal and professional growth
Communication that is active, open, honest and timely
Efficient and Effective Solutions that are reliable, consistent and meet the needs of our
communities

24
Strategic Planning
The District strives to make each year an integral step in fulfilling its Mission and Vision. By
adhering to its Values, the District continues to put the needs of its customers and community
first; so much so that some in the community have recognized this as unexpected and fresh for a
public agency. For the District, it’s consistent with our vision of being an integrated community
partner.
The District’s strategic plan establishes five core focus areas, referred to as our strategic planning
objectives. More information and a copy of the District’s complete strategic plan may be found
at http://www.crwwd.com/about/planning.html. The strategic planning objectives are:
Planning - Establish the future direction of the District; its purpose and vision in support
of its stakeholders’ needs.
Partnership - Strengthening existing and building new partnerships with our local public
agencies.
Outreach - Enhancing public awareness and education of the District and its services.
Culture - Instilling the Mission, Vision and Values into the culture of the District.
Effectiveness - Improving the core business processes to allow the District to efficiently
and effectively meet the current and future needs of its stakeholders.
For each of the strategic objectives the District establishes and pursues realistic and timely goals
and initiatives that are designed to propel the organization forward to accomplishing its Vision.
Annually, these goals are reviewed and updated in a multi-year context, looking both
retrospectively and prospectively. The goals are adopted by the Board of Commissioners as the
General Manager/Organizational Goals for the year. The General Manager assigns the goals,
within each department, but more specifically to individual Managers. Likewise, individual goals
are then formally integrated into each Manager’s annual performance management program.
This process maintains focus across the entire organization on the strategic initiatives and most
important priorities.

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Fiscal Year 2016 Goals and Objectives
Goal Structure and Prioritization
Annually, organizational goals are developed to guide the District forward. The goals are
categorized within each of the five (5) strategic planning objective areas. For any one year, the
emphasis may lie more heavily in one of the particular objectives (e.g. Effectiveness vs.
Outreach). The intent is to continue growing in all areas while allowing the organization to be
dynamic and responsive to the environment, including social, political and economic factors.
More specifically, to always be responsive to the policy direction of the Board of Commissioners.
The goals for 2016 are spread across each of the five strategic planning objectives.
The District has been successful each year in more efficiently and effectively delivering services
to the community. This is accomplished in part by focusing not only externally, on the
community, but also internally on the work being done. In recent years, the District’s goals have
been concentrated on planning and partnerships objectives, with a significant external focus.
This has resulted in significant long-term benefit to the District and its customers through such
initiatives as the formation of the Discovery Clean Water Alliance and the transfer of the
Ridgefield Collection System. For the coming year, however, the policy direction for the
organization will shift and the focus will be more internal. The bulk of the goals are categorized
as organizational effectiveness initiatives. This focus is appropriate so that adequate time,
energy and resources are devoted to ensuring that internal policies, practices and procedures
are firmly established and systems are in place following the recent expansion of organizational
roles and service area in prior years.
Once identified, the annual goals are then prioritized using a three-tier system. Tier 1 is the
highest priority and is referred to as “Strategic Initiatives”. Tier 2 represents “Operational
Initiatives”, while the Tier 3 is referred to as the “Growth Initiatives”. If resources were to become
limited or policy direction changes during the course of the year, accommodations would be
made starting with deferring of Tier 3 initiatives. Prioritizing the goals is a key element of
communicating across the organization, to all staff, which initiatives are most important to
achieving success. Each of the Tier 1 “Strategic Initiatives” for FY 2016 are discussed briefly
below.
Discovery Clean Water Alliance (Administrative Lead)
Discussion. This goal encapsulates the District’s continued participation and leadership in the
administration of the Discovery Clean Water Alliance (Alliance). The Alliance is a regional
wastewater partnership, under the Joint Municipal Utility Services Act (JMUSA) per RCW 39.106.

26
Regional operations commenced on January 1, 2015. The Alliance provides regional wastewater
transmission and treatment services to the District and the City of Battle Ground. The District
operates as the Administrative Lead, via contract with the Alliance Board of Directors, and is the
lead member to oversee and manage the operations of the Alliance. Duties under the
Administrative Lead agreement include executive and administrative functions, financial and
treasury, and engineering. For more detail on each District departments Alliance Administrative
Lead activities, see District Departments and Services on page 13.
Alliance activities are funded from Regional Service Charges (RSCs) billed by the Alliance to its
Members, including the District. The RSC is set by the Alliance Board of Directors as part of their
biennial budget adoption. The Alliance revenue requirements for 2015-2016 include costs to
operate and maintain the regional assets (Salmon Creek Wastewater Management System and
Battle Ground Force Main, operated by Clark County, and the Ridgefield Treatment Plant,
operated by City of Ridgefield). The basis for the 2015-2016 Alliance budget is to provide a
higher level of service in the operations of the regional assets, consistent with regional utilities of
a similar scale. Also, through the transfer of regional asset ownership to the Alliance, programs
or services that were previously underfunded (e.g. insurance) were identified. The Alliance
budget has restored the associated expenditures to meet industry standards, including
expediting the delivery of six (6) infrastructure Repair and Replacement (R&R) projects. The net
result will be an increase in treatment costs for all Alliance Members, including the District. A
minor budget amendment for 2016 was adopted in December 2015. The amendment
recognized, amongst other items, roughly a 10% increase in operating expenses for the
Ridgefield Treatment Plant.
Budget Implications. In 2016, operating expenses increase due to the Alliance Regional Service
Charges (RSC) increasing to continue to cover the costs of wastewater transmission and
treatment. In 2015 the Alliance issued a sewer revenue bond in the amount of $12.0 million over
ten years. Proceeds were used to fund the defeasance of $8.7 million in District debt and to
partially fund R&R projects of $3.3 million. There will be increased revenue from reimbursing
the District for its Administrative Lead services. RSCs, payable to the Alliance, will increase
approximately $1.0 million (16%) in 2016.
• $8.7 million in District debt was defeasance was funded by new Alliance debt in 2015;
Alliance debt service increased by $1.0 million and District debt service will
correspondingly be reduced
• $3.3 million in Alliance debt to fund R&R projects
• $13.0 million in principal PWTF loan debt transferred to the Alliance from the District
Operating Impacts.
• RSCs payable to the Alliance will increase 16% or $1.0 million in 2016

27
• Intergovernmental revenues from Alliance are projected to be $0.6 million in 2016
Discovery Corridor Wastewater Transmission System (DCWTS)
Discussion. Meeting the near-term and long-term service needs in the Ridgefield area
necessitated implementation of a long-term solution to provide adequate wastewater treatment
capacity for the City, in concert with their Comprehensive Plan. The optimal long-term solution
that was most beneficial to all District customers was to connect the Ridgefield collection system
to the District collection system and, ultimately, the Alliance’s Salmon Creek Wastewater
Management System. The DCWTS project was publicly bid and the contract was awarded to
Tapani, Inc. in April 2014. Construction of Phase 1 of the DCWTS project commenced in May
2014 and is scheduled for completion early 2016.
Budget Implications. In 2016 there are limited budget implications for the DCWTS project.
Approximately $200,000 is programmed for system construction completion, testing and
commissioning in 2016.
Operating Impacts.
• Annual debt service on $20.0 million in PWTF loans in the amount of $1.2 million
Capital Impacts.
• $0.2 million capital expenditures
• Annual depreciation expense of approximately $0.6 million
General Sewer Plan (GSP)
Discussion. Wastewater collection is a very capital and asset intensive utility service. The
District’s current system, inclusive of the Ridgefield service area, consists of over 605 miles of
gravity and pressure sewers and 63 pump stations spread across 46+ square-miles of service
area. Significant portions of the service area are undeveloped and require major infrastructure
improvements and investments. Other portions of the system are over 50 years old and are
beginning to reach their useful life. Therefore, having a long range plan, referred to as the
General Sewer Plan (GSP), for the expansion and R&R of the existing collection system is critical
to the long-term success of the District.
The vision for the District’s GSP is a readily accessible and easy to understand infrastructure plan
that is based on practical planning assumptions. The GSP describes the activities the District
uses to manage the wastewater collection system effectively. The effective management of a
wastewater collection system includes, but is not limited to:

28
• Maintaining or improving the condition of the collection system infrastructure in order
to provide long–term reliable sewer service, and
• Providing adequate wastewater collection capacity while cost-effectively extending and
expanding the system to accommodate design storm flows
A GSP combines policy decisions, technical issues and ratepayer values to create a 20-year
infrastructure investment plan. It includes the general location, condition, demand, capacity,
cost and description of the collection system facilities, including trunk and interceptor sewers,
pump stations, monitoring and control facilities. The plan includes engineering in adequate
detail to assure technical feasibility for the expansion and R&R of the system in a logical manner.
The plan presents all known infrastructure project needs for the District in order to meet system
asset management, capacity, levels of service and regulatory requirements.
Budget Implications. For FY 2016, there are limited budget implications associated with the
GSP project outside of the planned expenditures for Professional Services. However, upon the
completion of the GSP, the District will be better positioned to analyze and consider potential
long-term operational and financial strategies. Once an updated plan is in place, the District will
have accurate long term system costs in terms of both new capital improvements and R&R of
the existing collection system. Together, those costs consume about one-third of the District’s
total annual budgeted expenditures and also heavily influence the operating budget necessary
to maintain the system.
Capital Impacts.
• $0.4 million in Professional Services
• Consultant
Selection
• Board Support
• Data Review
2014
• Chartering
• Public Outreach
• Planning & Design
Criteria
• Hydraulic
Modeling
2015
• Capital Facilities
Plan
• Cost Estimates
• Public Outreach
• Asset Management
Program
• Policy Review &
Development
2016
• GSP Preparation
• Stakeholder
Endorsement
• Adoption
Processes
2017

29
Budget Process
The budget is an essential element of the financial plan, control and evaluation process for
governments and businesses. In its most general sense, the budget is a plan that reflects the
planned financial operation of an entity for a given period.
As a special purpose district, Clark Regional Wastewater District operates as an Enterprise fund.
The District maintains one fund with various accounts (sub-funds) used to segregate restricted
assets, if any, and complies with bond covenants and other District resolutions. In 2016 the
District will operate with the following accounts (sub-funds):
• Operations & Maintenance (O & M)
• Alliance Reserves
• Unemployment Reserve
• Debt Service
• Debt Service Reserve
• Existing Assets Restoration & Replacement (R & R)
• New Assets Capital Improvement Projects (CIP)
The nature of the operations of an Enterprise fund are financed and accounted for so the
demand for services determines the appropriate level of resources to be applied. Increased
demand for sewer services causes a higher level of resources to be applied and determines the
rates that are used in recovering that level of service. Thus, as in private sector accounting,
flexible budgets typically are better for Enterprise funds for planning, control and evaluation
purposes than are fixed line-item budgets.
When formally adopted, the expense estimates of flexible budgets typically are not viewed as
appropriations but as approved plans. Budgetary control and evaluation are affected by
comparing actual interim and annual revenues and expenses with planned revenues and
expenses at the actual level of activity for the period. With that in mind, the operating budget
can be considered moderately flexible and will be monitored to determine consistency with the
level of service required by system growth.
It is critical that the District continues its prudent financial management by establishing sound
fiscal policies to include the review of its rates and the structure of those rates through studies
and analysis. The District currently uses a combination of consultants and internal analysis to
develop its rates and policies. Rate studies and rate modeling conducted in 2012 identified the
need for the District to increase rates by $1 per ERU per month each year in 2013, 2014, 2015
and 2016 to ensure adequate funding for future operating and capital needs. The District

30
currently reviews its fiscal policies on an ongoing basis, as well as the appropriate amount of
funding for the restoration and replacement of its assets.
The District prepares its financial reports using the accrual basis in accordance with Generally
Accepted Accounting Principles. The District chooses to prepare its budgets using the cash
basis. The cash basis is used in order to more accurately predict future cash needs so that the
District can ensure future cash flow requirements will be met.
The District has adopted and achieved a funding strategy for the Existing Assets Restoration and
Replacement (R&R) account where rates are transferred into this account, yearly, to maintain a
fund balance of $11.0 million. We have budgeted to transfer from the O & M account $3.7
million in 2016 to maintain the fund balance of $11.0 million.
As the District service areas and customer base continues to grow, so does the requirement to
manage sound practices and fiscal policies as they relate to debt. In order to help facilitate
expansion of the Salmon Creek Wastewater Management System, the District took on $35.0
million in debt in the form of revenue bonds and loans between 2002 and 2009. This debt along
with District reserves funded the District’s portion of the $77.0 million in capital needed for the
project. The District issued sewer revenue bonds in 2012, to replenish cash reserves expended
for the defeasance of sewer revenue bonds originally issued by Clark County in 2001.
Construction of the Discovery Corridor Wastewater Transmission System by the District required
additional PWTF loans of $20.0 million, with a large portion of construction costs reflected in the
2014 and 2015 capital budgets.
With the Alliance being operational effective January 1, 2015, the District transferred
approximately $13.0 million in loans, as well as approximately $0.7 million in cash for accrued
principal and interest on the loans in 2015, to ensure that the Alliance is appropriately managing
the debt associated with regional assets transferred from other member agencies. This transfer
reduced the amount of debt reported on the District’s books; however, will not reduce the
amount of debt the District is obligated to pay. Late in 2015, the District defeased and the
Alliance refinanced $8.7 million in revenue bonds that were originally issued for expansion of the
Alliance owned Salmon Creek Wastewater Management System.

31
Budget Calendar
Budget Preparation (July)
•Budget decision package form
provided to departments
•Letter sent to Neighborhood
Associations regarding Budget
schedule
•Website updated with Budget
schedule
Budget Requests (August)
•Final BDP's due to Finance Director
•Develop:
• 6-year Financial Model
•2016-2021 Capital Program
•O & M Budget
Review Budget (September)
Management review of:
•BDP's
•6-Year Financial Model
•2016-2021 Capital Program
•O & M Budget
Proposed Budget (October - November)
•Board provided BDP's
•Work Session #1: 6-Year Financial Model and 2016-
2021 Capital Program discussion
•Work Session #2: Budget by Account and BDP's
•Work Session #3: O & M Budget and Training
Budget
Adopted Budget (December)
•2016 Budget Public Hearing
•2016 Budget Adoption

32

33
ClarkRegionalWastewaterDistrictAdoptedBudget2016
2013 2014 2015 2016
ALL ACCOUNTS ACTUAL ACTUAL BUDGET BUDGET
BEGINNING BALANCES 35,897,912$ 38,234,528$ 38,471,950$ 31,336,052$
SOURCES
Rates 15,745,908 16,969,193 17,473,733 18,477,588
SDC Connection Fees 2,954,374 5,896,931 3,602,080 4,703,880
LFC Reimbursements 149,524 316,048 165,000 115,000
Investment Interest 131,786 286,855 123,242 206,818
Intergovernmental Revenues 226,113 887,340 620,000 630,500
PWTF Loan Draws 913,361 9,871,564 8,603,620 -
Other Miscellaneous Revenue 1,082,188 457,194 307,000 399,850
Subtotal Sources 21,203,254 34,685,125 30,894,675 24,533,636
USES
Debt Service (3,041,214) (3,254,204) (3,215,523) (1,955,625)
Cash Reserves Transfer to Alliance - - (656,520) -
Operating Expenses
Salaries / Benefits (4,609,710) (4,885,039) (5,180,253) (5,499,178)
Supplies (562,653) (503,849) (572,115) (654,929)
Services (Professional / Contractual) (470,692) (728,668) (730,225) (806,555)
Other (1,069,892) (1,148,885) (1,018,532) (1,276,380)
Treatment (4,824,261) (5,819,114) (7,288,659) (8,848,295)
Budget Decision Packages (26,782) (95,293) (152,500) (23,200)
Capital Construction Costs/Purchases (4,261,434) (14,401,623) (20,541,623) (9,495,100)
Subtotal Uses (18,866,638) (30,836,675) (39,355,950) (28,559,262)
ENDING BALANCES 38,234,528$ 42,082,978$ 30,010,675$ 27,310,426$
Notes:
*
**
***
Effective January 1, 2014 the District owns and operates the sewer collection system in the City of Ridgefield. The transfer of operations resulted an
increase of District revenues, operating costs and staff to manage the additional operations.
Effective January 1, 2015 the Discovery Clean Water Alliance became fully operational. Treatment costs previously paid to Clark County and to the City of
Ridgefield are now paid to the Alliance. The increase in treatment costs are related to debt service payments for the SCTP now being paid to and
through the Alliance via Regional Service Charges billed to the Alliance members. In conjunction with the Alliance becoming operational, the District has
transferred all debt related to the SCTP to the Alliance. The Alliance has issued debt to defease the District's 2005 Sewer Revenue Bond in 2015 resulting
in lower debt service requirements for 2016.
Construction of the Discovery Corridor Wastewater Transmission System accounts for the increase in Capital Construction during 2014 and 2015.
Funding for the project is primarily provided through $20 million in PWTF loans, $7 million in District capital reserves and $1.6 million in Department of
Ecology Grants. The new transmission system will be operational in 2016.
Budget Summary

2016ClarkRegionalWastewaterDistrictAdoptedBudget
34
TOTAL
Operations Alliance Unemployment Debt Debt Service Existing Assets New Assets
ACCOUNTS & Maintenance Reserves Reserve Service Reserve R & R CIP All Accounts
BEGINNING BALANCES 8,698,023$ 4,812,106$ 22,135$ 748,163$ 1,955,625$ 11,000,000$ 4,100,000$ 31,336,052$
SOURCES
Rates 18,500,147 18,500,147
Senior Low-Income Discount Program (22,560) (22,560)
SDC Connection Fees 4,703,880 4,703,880
LFC Reimbursements 115,000 115,000
Investment Interest 57,407 31,760 146 4,938 12,907 72,600 27,060 206,818
Intergovernmental Revenues 630,500 630,500
PWTF Loan Draws - -
Other Miscellaneous Revenue 399,850 399,850
Subtotal Sources 19,680,345 31,760 146 4,938 12,907 72,600 4,730,940 24,533,636
TRANSFERS
Transfer Debt Service (1,927,476) 1,927,476 -
Transfer LFC Reimbursements (115,000) 115,000 -
Transfer B&O Tax 70,558 (70,558) -
Transfer Existing Assets R & R (3,657,400) 3,657,400 -
Transfer Unemployment Reserve (669) 669 -
Subtotal Transfers (5,629,987) - 669 1,927,476 - 3,657,400 44,442 -
USES
Debt Service (1,927,476) (28,149) (1,955,625)
Operating Expenses (17,085,337) (17,085,337)
Budget Decision Packages (23,200) (23,200)
Capital Construction Costs / Purchases (3,730,000) (5,765,100) (9,495,100)
Subtotal Uses (17,108,537) - - (1,927,476) - (3,730,000) (5,793,249) (28,559,262)
ENDING BALANCES 5,639,844$ 4,843,866$ 22,950$ 753,101$ 1,968,532$ 11,000,000$ 3,082,133$ 27,310,426$
OPERATIONS DEBT CAPITAL
Budget Overview

35
Operations
and
Maintenance
Account
The Operations and Maintenance (O & M) account provides for the daily routine needs to
financially sustain effective delivery of District core functions. The District’s policy for account
reserves is to maintain a minimum of 120 days of current year budgeted operating expenses.
For Fiscal Year 2016 this is approximately $5.6 million.

36
Operations and Maintenance Account
I. Sources and Uses
The general O & M account is primarily funded from monthly wastewater service charges.
Additional funding into this account is from intergovernmental revenues, contract
receivables, penalties, inspections, permit fees and investment income from account
reserves.
The District charges a fixed base rate of $38 per Equivalent Residential Unit (ERU) per
month for wastewater services, a $1 (2.7%) rate increase over the base rate billed in 2015.
An ERU is equal to one home that is connected to the sewer system.
Revenues of the O & M account fund all general operating expenses, including but not
limited to salaries and wages, employee benefits, supplies, professional services,
contractual services, other expenses and treatment costs.
Operational expenses, such as salaries, benefits and treatment costs are the primary uses
of funds in the O & M account representing 22.2%, 10.0% and 51.7% of the budget,
respectively. Total O & M expenses will see a 14.5% increase over 2015 levels. This
increase is primarily due to an increase in treatment costs associated with debt issued by
the Alliance, as well as planned defeasance of the City of Ridgefield treatment plant debt
in December 2016.
Utility rates also provide funding to the R&R account to maintain the $11.0 million
funding threshold, the Debt Service and Debt Service Reserves accounts for all debt
service requirements and for the Unemployment Reserve account to maintain the
required funding level per District policy.

37
II. 2016 Operations and Maintenance Account Revenue Forecast
2013 2014 2015 2016
OPERATIONS & MAINTENANCE ACTUAL ACTUAL BUDGET BUDGET
BEGINNING ACCOUNT BALANCE 5,046,686$ 5,615,876$ 6,107,654$ 8,698,023$
SOURCES
Operating Revenue
Charges for Services 14,886,319 16,207,640 17,495,076 18,500,147
Senior Low-Income Discount Program (17,763) (20,799) (21,343) (22,560)
Intergovernmental Revenues - Battle Ground 877,352 782,352 - -
Intergovernmental Revenues - Other 226,113 887,340 620,000 630,500
Penalties 31,755 118,383 100,000 120,000
Permit Fees 20,887 101,725 75,000 120,000
DEA Fees 36,600 83,967 55,500 95,350
LFC Reimbursements 149,524 316,048 165,000 115,000
Other Miscellaneous Revenue 15,448 105,716 69,000 64,500
Total Operating Revenue 16,226,235 18,582,372 18,558,233 19,622,938
Non-Operating Revenue
Other Miscellaneous Non-Operating Revenue - - 7,500 -
Transfer from New Assets CIP Account (B&O Taxes) 49,107 73,278 54,031 70,558
Investment Interest 8,707 87,339 19,565 57,407
Transfer from Other Funds - 5,301,864 - -
Total Non-Operating Revenue 57,814 5,462,481 81,096 127,965
TOTAL RESOURCES 21,330,735 29,660,729 24,746,983 28,448,926
USES
Cash Reserves Transfer to Alliance - - (656,520) -
Operating Expenses (11,563,990) (13,181,145) (14,942,284) (17,108,537)
Transfer to Existing Assets R&R Account (1,100,000) (2,842,341) (1,045,745) (3,657,400)
Transfer to Unemployment Reserve Account (12,991) (7,484) (1,569) (669)
Transfer to Debt Service Account (2,888,353) (3,529,839) (3,069,528) (1,927,476)
Transfer to New Assets CIP Account (LFC Reimbursement) (149,524) (316,048) (100,000) (115,000)
Total Operating Uses (15,714,858) (19,876,857) (19,815,646) (22,809,082)
ENDING ACCOUNT BALANCE 5,615,877$ 9,783,872$ 4,931,337$ 5,639,844$

38
III. 2016 Operations and Maintenance Account Expenditure Forecast
2013 2014 2015 2016 %
OPERATIONS & MAINTENANCE OPERATING EXPENSE DETAILS ACTUAL ACTUAL BUDGET BUDGET CHANGE
Salaries & Wages
Maintenance / Facilities 1,078,411 1,154,045 1,194,718 1,221,266
Customer Service 293,557 290,975 324,959 316,815
Engineering 676,820 780,897 875,163 966,369
Pretreatment 167,687 105,098 103,371 74,731
General Administration 943,080 997,566 1,038,405 1,174,470
Commissioners 34,070 35,778 37,032 37,032
Total Salaries & Wages 3,193,625 3,364,359 3,573,648 3,790,683 6.1%
Employee Benefits
Pension 255,552 302,936 357,741 420,482
Unemployment 1,389 - 1,683 815
Health Insurance 839,146 752,321 902,549 918,085
Uniforms / Incentives / Other 41,581 176,892 22,500 29,695
Social Security / Medicare 241,390 253,717 272,149 288,498
Labor and Industries 37,027 42,118 49,984 50,920
Total Employee Benefits 1,416,085 1,527,984 1,606,606 1,708,495 6.3%
Supplies
Materials / Supplies - Collection System 43,488 36,953 41,000 38,700
Materials / Supplies - Pump Stations 141,010 137,169 205,000 190,000
Office Supplies - General 182,202 175,364 197,615 282,079
Maintenance Supplies - General Facilities 79,355 61,496 17,000 21,350
Small Equipment / Tools - Maintenance 37,308 48,282 30,000 46,500
Transportation Expense - Fuel 64,239 71,032 65,000 65,000
Transportation Expense - Repair / Maintenance (in-house) 4,456 5,237 6,500 6,500
Safety Training / Maintenance Supplies 18,576 12,276 10,000 13,000
Total Supplies 570,634 547,809 572,115 663,129 15.9%
Professional Services
Professional Services - Alliance 18,862 132,496 215,750 215,750
Professional Services - Engineering 19,825 92,599 45,000 55,000
Professional Services - Auditor 27,931 17,039 24,000 38,000
Professional Services - Legal 164,571 126,985 96,500 115,000
Professional Services - Communications 10,000 18,021 20,000 20,000
Professional Services - Computer / IT 26,066 23,936 40,500 32,500
Professional Services - Consultant - 21,931 22,000 56,980
Professional Services - Temp 64,089 80,257 35,000 35,000
Total Professional Services 331,344 513,264 498,750 568,230 13.9%
Contractual Services
Contract Equipment Rental 308 946 1,500 2,000
Contract Service - Maintenance / Repair Lines 31,280 45,260 52,000 55,500
Contract Service - Equipment 15,672 37,673 25,000 23,000
Contract Service - Vehicles 40,276 74,100 50,000 62,000
Contract Service - Office / Building Equipment 70,613 101,751 102,975 110,825
Total Contract Services 158,149 259,730 231,475 253,325 9.4%
Other Expenses
Insurance - Pool 109,187 99,284 131,150 143,850
Education Expense / Travel 62,129 60,863 108,556 102,187
Education / Travel / Other Expense / Commissioners 18,952 13,532 28,946 28,923
Dues / Memberships / Subscriptions 30,540 30,940 33,750 33,245
Postage 74,135 79,236 82,155 82,250
Telephone 42,033 41,850 45,950 57,125
Utilities - Pump Stations 69,782 80,233 88,750 91,750
Utilities - Admin / Shop 42,097 42,236 42,000 45,200
Damage Claims 10,506 2,887 8,000 5,000
Advertising 6,578 6,757 4,500 8,350
Public Relations 21,073 13,269 13,650 13,500
Miscellaneous General Administration 124,020 126,529 120,125 143,000
Business and Occupation (B&O) Taxes 410,671 507,068 400,000 485,000
Alliance Supplies / Utilities / Public Relations / Miscellaneous 2,414 7,011 13,500 7,000
Government Services / Impact Fees 45,775 37,190 50,000 30,000
Total Other Expenses 1,069,892 1,148,885 1,171,032 1,276,380 9.0%
Sub-total Operating Costs 6,739,729 7,362,031 7,653,626 8,260,242 7.9%
Treatment Costs
Sewage Treatment - Clark County 3,959,749 3,959,748 - -
Sewage Treatment - Alliance 306,725 502,538 6,549,000 7,576,246
Sewage Treatment - Vancouver 505,698 56,386 530,133 522,908
Sewage Treatment - Battle Ground 52,089 325,428 54,713 63,366
Sewage Treatment - Ridgefield - 975,014 154,813 685,775
Total Treatment Costs 4,824,261 5,819,114 7,288,659 8,848,295 21.4%
TOTAL OPERATING EXPENSES 11,563,990$ 13,181,145$ 14,942,285$ 17,108,537$ 14.5%

39
IV. Budget Narrative – Operations and Maintenance Account
Revenues
Charges for Services: $18,477,588
Charges for services are reported here, net of reduced rates associated with the District’s
Senior Low-Income Discount Program. The 2016 budget reflects a forecast of 950 new
ERUs (940 paid and 10 through use of developer credits) for the year, based upon prior
year growth patterns and anticipated construction. The additional ERUs have been
included in the budgeted utility service revenue projections.
Monthly charges for services are divided into three sources - residential, multi-family
residential and commercial:
• Residential includes all single-family residential homes and condominiums
• Multi-family residential includes all apartments and mobile home parks
• Commercial includes all businesses and industries, including schools
For 2016 our customer base will increase to approximately 30,000 accounts serving
approximately 40,981 ERUs. This increase will have a ripple effect with the net result
being additional inspections, maintenance and customer service calls, as well as treatment
costs.
Intergovernmental Revenues: $630,500
Alliance. The District will continue to act as Administrative Lead to the Alliance and
invoice the Alliance monthly for these contracted services. The amount of contracted
services will increase in 2016, as the District’s engineering department’s capital program
management support services increase with the management of capital projects for the
Alliance. The District will continue to provide pretreatment activities for the SCTP, which
include coordination, sample testing and reporting activities for the plant. The associated
costs are then invoiced to the Alliance (previously Clark County) for reimbursement.
Revenues received from the Alliance are estimated to be $623,000.
Other. The District invoices for spot cleaning and maintenance assistance for several
cities in Clark County through the Grounds Equipment and Maintenance (GEM)
agreement. Revenues associated with the service vary significantly from year to year and
are estimated to be $7,500 for 2016.
Penalties: $120,000
These represent penalties assessed on past due utility balances. The District’s past due
balances have plateaued after realizing a few years of decreasing balances with the

40
refinement of our collections processes. This plateau is slightly offset by the increase in
our customer base, effective January 1, 2014.
Fees: $215,350
Developer Extension Agreements (DEA), permits, tap and inspection fee activity, along
with development, is demonstrating an upward trend. Therefore, the revenue projection
is increased for the 2016 budget.
Expenses
Salaries and Wages: $3,790,683
The District Board of Commissioners has approved salary ranges to be increased in 2016
by 2.0% to reflect an inflation adjustment. For those employees not at the top of their
range, a potential 2.0% or 4.0% step increase has also been budgeted at their anniversary
date. The 2016 budget depicts related costs for fifty (50) employees and three (3)
Commissioners. Salaries and wages will increase overall by 6.1% when compared to the
2015 budget. Since the District is the Administrative Lead for the Alliance, a portion of
total District staff salaries will be invoiced to the Alliance during 2016. Included in the
budgeted salary amount are the Commissioners’ salaries and a budgeted amount for staff
overtime and Maintenance staff weekend pump runs.
Commissioner salaries include a stipend that represents reimbursement for their
attendance at all regular District Board or business meetings. In 2016, the District is
budgeting for the Commissioners’ salaries based on the full amount available to be paid
($37,032) per statute, including $350 per month for the Secretary of the Board. Effective
in 1992, Washington State law allows for the payment of medical benefits to elected
Commissioners. All three Commissioners are eligible for and receive this benefit.
Employee Benefits: $1,708,495
Overall, benefits for 2016 are expected to be 6.3% higher than in the 2015 budget.
Pension. The Washington Public Employee Retirement System (PERS) pension rate paid
by employers is 11.2% at July 1, 2015, which is a 2.0% increase from the previous
employer rate of 9.2%.
Uniforms, Incentives, Other. The 2016 budgeted uniform costs, the Reward and
Recognition program and administration costs for the Flexible Spending Account (FSA)
were revised from the 2015 budget to $22,195, $7,000 and $500, respectively, based on
more thorough analysis of these costs and District staff needs.
Health Insurance. Healthcare insurance continues to comprise a large portion of the 2016
benefits budget. The District uses the State of Washington’s Healthcare Authority (HCA),

41
as the administrator for two insurance carriers (Kaiser Permanente and Uniform Medical)
to provide employee healthcare benefits in 2016. Both carriers negotiate with HCA for
statewide benefits. Kaiser Permanente premiums will increase by 2.4% and Uniform
Medical premiums will decrease by 0.4% in 2016, resulting in an overall increase in health
insurance expenses. The District currently funds the entire healthcare premium and
allows employees who have other adequate medical coverage to opt out of District-paid
medical insurance in exchange for a cash payment equal to a single premium for Uniform
Medical insurance. This incentive has been beneficial to employees and will continue to
result in reduced medical insurance premiums paid by the District.
Social Security / Medicare. Anticipated step and inflationary increases will have a direct
effect on payroll taxes, creating a 6.0% increase in FICA and Medicare budgeted for 2016.
Labor and Industries. In 2016, the Washington Department of Labor and Industries
insurance rates billed to the District are budgeted to increase by an average of 2.0% for a
realized expense increase of about $1,000 in 2016.
Supplies: $663,129
All items of a consumable nature are budgeted as supplies. This includes office supplies,
general system repair and maintenance supplies, in-house vehicle repairs, facilities
supplies and vehicle fuel. The 2016 supplies budget reflects a 15.9% increase over the
2015 budget. This increase is primarily driven by the purchase of office furniture and
ergonomic equipment for staff, as well as upgrades to existing software for operational
efficiencies.
Materials / Supplies – Collection System. The budget anticipates repair and maintenance
activity costs to continue at approximate 2015 levels for the aging television (tv) and
cleaning equipment used to maintain and evaluate the integrity of District lines.
Materials / Supplies – Pump Stations. We have budgeted for an anticipated decrease of
7.3% in 2016. The driving factor for this budget decrease is the increased efficiency of
District operations in monitoring the sewer system and odor control systems to reduce
odors and corrosive damage to force mains.
Office Supplies – General. Budgeted 42.7% higher due to strategic analysis of District
office supply and software upgrade needs. In 2016, the District has budgeted to replace
office space furniture and cubicle structures, increase instances of ergonomical
equipment and implement software upgrades for increased efficiencies. Several annual
software licenses, such as Springbrook, IVR and Arc Info are incorporated in the 2016
budget as well.

42
Maintenance Supplies – General Facilities. Budgeted at 25.6% or $4,350 higher in 2016,
to address some general facility needs and continue with annual maintenance, such as
window washing and bark dust application.
Small Equipment / Tools – Maintenance, Transportation Expense – Fuel / Repair /
Maintenance. Budgeted 55% or $16,500 higher in 2016. This increase includes the
replacement of aging equipment not meeting capitalization thresholds. The District will
continue to maintain already existing systems such as Lucity. The Lucity system is used by
management to log repairs and determine necessary maintenance for District facilities
and fleet vehicles. Transportation expense for fuel is budgeted to remain at the same
level as 2015 due to decreasing fuel costs, despite the increased travel requirements to
and from the Ridgefield service area. The District maintains no fuel reserves on campus,
but purchases fuel from Clark County.
Safety Training / Maintenance Supplies. Safety training supplies are budgeted to remain
relatively flat in 2016. The Maintenance staff of 18 require confined space safety gear and
other supplies, as a part of their routine job requirements.
Professional Services: $568,230
Non-capital professional services provided such as legal counsel, the Washington State
Auditor’s Office annual audit, information technology support, communication and
engineering consulting services are budgeted as professional services. For 2016, the
District anticipates a 13.9% increase in professional services compared to the 2015
budget. The primary component in Professional Services expenses is related to the
Alliance Administrative Lead services that will be subsequently reimbursed to the District.
A $35,000 increase from 2015 in consulting professional services will assist the District
with capital program planning and workload throughout the year.
Professional Services – Alliance. The District is budgeting $215,750 in 2016 for continued
contractual Administrative Lead and consulting services that are reimbursed by the
Alliance.
Professional Services – Engineering. The District is budgeting $55,000 in the 2016 budget
for on-call consulting assistance on various projects.
Professional Services – Auditor. The 2016 budget for Washington State Auditor’s Office
CAFR and Accountability audit services is anticipated to increase 58.3%, as a direct result
of the increase in audit scope related to the District’s activities with the Alliance, the
Washington State Auditor’s Office per hour rate increase effective January 1, 2016 and
increased support requested from financial consultants.

43
Professional Services – Legal. Legal services are budgeted to increase by 19.2% from the
2015 budgeted amount. The day-to-day ordinary legal activity, such as employee matters,
local facilities, District Code changes and customer bankruptcies and foreclosures has
proven to be higher than budgeted for in 2015.
Professional Services – Communications. The District is budgeting $20,000 to continue a
customer-focused communications plan for the District.
Professional Services – Computer / Information Technology (IT). The 2016 budget
decreased 19.8% from the 2015 budget as we continue to develop in-house general IT
support, as well as server support.
Contractual Services: $253,325
Contractual Services includes equipment rentals, maintenance and repairs of lines,
equipment repairs, vehicle repairs, office equipment maintenance and building
maintenance. The 2016 budget is slightly higher than the 2015 budget.
Contract Equipment Rental, Contract Service – Equipment / Vehicles. The District
contracts with Clark County and other local service providers for vehicle and equipment
maintenance. Equipment rentals usually occur in inclement weather when power failures
occur. It is anticipated such events and costs in 2016 will be similar to historical events
for the District.
Contract Service – Maintenance / Repair Lines. The District anticipates contracted line
maintenance to remain relatively flat in 2016, including routine treatment of hot spots
requiring additional root treatment and biennial work scheduled for ice pigging.
Contract Service – Office / Building Equipment. Maintenance costs are budgeted to
increase by 7.6% in 2016. The increase in costs is mostly related to an increase in contract
services related to grounds maintenance received through Frontier Landscaping and
building maintenance services received through Cintas. The District’s copier and printer
maintenance costs remain relatively flat with the outsourcing of statement printing,
mailroom processing equipment, heating system maintenance and annual fire inspection
costs.
Other Expenses: $1,276,380
Overall, other expenses will increase $105,348, or 9.0%, in the 2016 budget. The most
significant increase of $85,000 will occur with Business and Occupation (B&O) taxes.
Education and travel will remain relatively flat, utilizing online/webinar training
opportunities.

44
Postage. Postage costs in 2016 are expected to remain flat as compared to 2015. The
District continues to reap the benefits of outsourcing the printing, inserting and mailing
of utility bills each month by being able to use the bulk mail discount rate. The vendor
uses a postal address verification system that increases the number of certified mail
pieces, meaning the letters are mailed at the lowest postal bulk rate available, saving the
District from higher postage costs. Customers may now also opt for their bill to be e-
mailed, allowing the District to recognize additional postal savings.
Telephone and Utilities. Included in 2016 are budgeted amounts for local and long
distance phone, cell phone and pager service, after-hours’ call center costs, twenty-four
hour Supervisory Control and Data Acquisition (SCADA) monitoring, electrical costs for all
pump stations, and utilities for the District campus, including natural gas and water. The
SCADA system continues to provide value in an overall reduction of power and phone
costs. SCADA is now being used to monitor all District pump stations. The 2016 budget
reflects an increase of 9.6% for these services due to anticipated service rate increases.
Advertising. The 2016 budget anticipates advertising costs to be $3,850 higher than the
2015 budget. Employee recruiting expenses, public meeting notices and bid requests are
the primary cost drivers.
Public Relations. The 2016 budgeted amount will remain consistent with that of 2015.
The primary expense in this category is related to the Connections newsletters which are
sent to our ratepayers with each billing cycle. This budget also includes an allowance for
“Freeze the Grease” kits and hand sanitizers, to be distributed at safety fairs and other
public outreach events during 2016. In addition, costs associated with participating in the
Hazel Dell Parade of Bands in May, Ridgefield’s Fourth of July parade and Battle Ground’s
Harvest Days parade is included in the public relations budget.
Miscellaneous General Administration. Bank service charges, credit card processing fees,
remittance processing by lockbox payment providers, employee physicals, pretreatment
sampling costs and bad debt are all included in this 2016 budget item. The 2016 budget
anticipates expenses will increase by 19.0% from the 2015 budgeted amount based on
general fee increases and other miscellaneous charges.
Business and Occupation (B&O) Taxes. Budgeted B&O taxes for 2016 will see a 21.3%
increase from the 2015 budget. The District anticipates 950 new connections and
respective new customers added to the system for utility billing, as well as a $1 and $0.70
per ERU per month sewer rate increase for the Central service area and Ridgefield service
areas, respectively, attributing to increased taxes paid to the Department of Revenue. To
offset these revenue increases the District will also experience a 21.4% or $1.6 million
dollar increase in treatment expenses.

45
Government Services / Impact Fees. The 2016 budget will reflect a 40.0% or $20,000
decrease from the 2015 budget. Prior year budgets were higher based on election costs
and Ridgefield easement recording fees.
Intergovernmental Wastewater Treatment: $8,848,295
The Alliance became operational on January 1, 2015 and now owns and operates the
Salmon Creek Treatment Plant, as well as the Ridgefield Treatment Plant. In 2016, the
District will continue to contract with the City of Vancouver, City of Battle Ground and the
Alliance for costs related to sewage treatment. In 2016, the Ridgefield Treatment Plant’s
2006 bond ($1.3 million) that was not legally transferable to the Alliance will be defeased.
City of Battle Ground Treatment. The District pays the City of Battle Ground for
transmission costs through their holding facility for Hockinson and Meadow Glade
customers. For 2016, this cost is budgeted at $63,366. These flows are included in the
87.0% of District flows treated at the Salmon Creek Treatment Plant.
City of Vancouver Treatment. The City of Vancouver treats approximate 9.0% of the
District customers’ wastewater, at a budgeted cost of $522,908, a slight decrease from
2015. The District has not seen much change in the monthly flows to the City of
Vancouver over the past several years. In 2010, the District and the City of Vancouver
initiated a coordination of services agreement, which reduced the rate per million gallons
delivered to a wholesale verses a retail rate. The new rate was recalibrated again for
2016.
Discovery Clean Water Alliance (Alliance). Alliance expenses budgeted at $7,576,246 in
2016 will treat approximately 91.0% of the District’s wastewater treatment flow. The
Alliance owns and operates two wastewater treatment facilities. The Salmon Creek
Treatment Plant (SCTP) will treat approximately 87.0% of the District’s flow and the
Ridgefield Treatment Plant will treat approximately another 4.0%. The District’s portion of
the operations and maintenance, along with the replacement and restoration expenses of
the 2016 Salmon Creek and Ridgefield Treatment Plants, recognize an increase of
$1,027,246 in 2016 from the 2015 budget. This operations cost is offset by a debt service
cost decrease of $1,116,911.
Transfer to Existing Assets Replacement and Restoration Account: $3,657,400
The District has a policy to fund and accumulate a reserve that will be used to pay for
future restoration and replacement of existing sewer infrastructure and other depreciable
assets. The 2016 targeted reserve is $11.0 million. For 2016, rates will provide budgeted
funding of $3.6 million for the Existing Assets R&R account, to maintain the $11.0 million
threshold.

46
Transfer to Unemployment Reserve Account: $669
Unemployment reserves have a 2015 ending balance of $22,135. The District will transfer
rates of $669 and accumulate interest on investments in that account for a budgeted
ending reserve account balance of $22,950.
Transfer to Debt Service Account: $1,927,476
A portion of the rate increase described above is also transferred to the Debt Service
account, to restrict enough funds to pay principal and interest on all debt obligations due
in 2016.

47
Alliance
Reserves
Account
The Alliance reserves account was established at fiscal year-end 2013 to set aside the District’s
estimated pro rata share of reserve requirements as establishment in the Interlocal Formation
Agreement (IFA) for Discovery Clean Water Alliance, dated September 27, 2012. The IFA
requires that the Alliance maintain reserves that ultimately the Member agencies are responsible
to fund, for Operations and Maintenance, Rate Stabilization, Restoration and Replacement and
Debt Service Reserves.

Clark Reg Wastewater Dist WA Budget and Strategic Plan FY 2016

Clark Reg Wastewater Dist WA Budget and Strategic Plan FY 2016

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