Financial

As a nonprofit entity, the water district's expenses and revenues are approximately equal, with revenues determined by the level of expenses incurred in any particular year.

• Expenses: Exclusive of non-recurring capital improvements such as water rights and infrastructure upgrades, the association's operating budget has recently ranged from approximately $33,000 to $53,000. The significant variance in annual operating expense is due primarily to the nature and number of water main repairs which occur in any particular year. Our historical analysis of system repairs over the past two decades indicates that we average 2.13 repairs per year. Similar retrospective analysis indicates that our average cost of water production (non-recurring operating expenses divided by water volume delivered) is approximately $14.00 per thousand gallons.

• Revenues: The water district has three basic sources of revenue: 1) A base monthly service charge which includes 5,000 gallons of water; 2) Additional charges for monthly water usage in excess of 5,000 gallons; and 3) Member assessments which are applied equally independent of water usage. The district's water rates and assessment policy are outlined in the association Rules and Regulations.

Historically, the association has attempted to maintain an adequate cash reserve to fund system repairs and provide for a reserve for replacement of critical infrastructure such as the well pump and other assets. When expenses have exceeded revenues and cash reserves become low, an emergency assessment has typically been required. In 2014, the water board arranged for an standby credit line to help finance unforeseen emergency expenses like the September 2013 flood repairs.