Finance Funds

The District established several funds into which revenues are deposited and are used as sources for District expenditures, including capital improvement projects. The funds accounting system addresses the District’s service needs in a responsible fiscal manner.

Running Expense Fund 

This fund's balance supports about eight months of operational expenses. This fund is very important to Distric operations, since the District does not invoice for its services monthly but collects its fees on the property tax bill. The District receives its fees in two lump sum payments: one in December and the other in April. It is sound practice to maintain an operating fund that would account for about eight months of operating expenses to cover expenses between payment cycles.

Plant Reserve Fund 

This fund is for addressing plant emergencies. The contracts among plant users specify that this fund must not exceed $25,000.

Capital Reserve Fund 

This reserve fund is required by legislation to account for capacity expansion projects at the District’s facilities and is funded by connection and annexation fee revenues.

Replacement Reserve Fund 

This fund is mandated by the State Water Resources Control Board (SWRCB) in its guidelines for developing a facility's Financial Plan and Revenue Program (FPRP). This requirement calls for annual funding of the facility depreciation for the basic replacement of components of the existing facilities.

Retiree Health Insurance Sinking Fund 

In December 2004, the District’s Board of Directors acted to provide medical insurance coverage for District employees upon retirement. To mitigate the impact of this benefit, the Board directed that a sinking fund be created for future payments of medical insurance premiums for District retirees.

Outfall Reballasting Fund 

This fund does not carry a balance since it is used to manage the debt service on the State Revolving Fund (SRF) loan for the outfall reballasting project. Revenues into this fund are disbursed within the same fiscal year, leaving no balance in the fund.

Plant Upgrading Fund 

On May 7, 2007, the District’s Board of Directors acted to establish a separate fund designated as the “Plant Upgrading Fund” to pay for the plant upgrade project costs. Revenues from the District’s users for this project, in addition to any future funding sources for the project, are deposited in this fund.

District Emergency Fund 

This fund was established as a separate, designated “Emergency Fund” to pay costs associated with emergency projects.