At LWD, our success is measured by low rates, strong finances, and a focus on protecting the environment. With this in mind, the District has developed long range plans and policies to help ensure that funding is available when it is needed.
Through fiscal responsibility and long term planning, LWD strives to provide the highest quality of service at a competitive rate. Among the many cities, special districts, and county agencies that provide wastewater services, our sewer service rate is among the lowest in San Diego County.
Our fees are based on the cost to provide service, so that current customers pay only for the costs to operate and maintain the current system and not for facilities needed to accommodate future growth. The cost of future facilities is paid for by developers through capacity fees which help ensure that customers pay only for the actual cost of their service.
The plans/policies below help the District meet its financial obligations through long-term planning and prudent use and investment of District funds.
LWD’s Finance Plan is updated every five years to forecast revenue and expenditure needs for the next 20 years, based on guidance from the Board’s Strategic Plan and updated information from the Asset Management Plan. The Finance Plan allows the District to form a detailed picture of when and how funds will be needed.
Additionally, it allows LWD to maintain a clear idea of our overall financial status. With the Finance Plan, the District is able to determine if a rate increase is required well before it is needed, thus avoiding an abrupt rate increase.
The District’s Investment Policy is simple: it prioritizes safety and liquidity over yield. By most measures, our investments are conservative with maturities generally not exceeding 5 years. The District currently has investments in the State of CA’s Local Agency Investment Fund pool, the San Diego County Investment Fund pool and the CA Asset Management Program (CAMP) pool.
In addition, LWD also has funds invested in the CAMP Individual Portfolio Program that is professionally managed by PFM Asset Management LLC. In today’s climate of low interest rates, LWD is proud that we have not lost any investment principal.
The District maintains reserve funds, which pay for potential emergencies and future capital expenses. Utilizing restricted and unrestricted funds, the following reserve funds have been established: Capital Improvement Reserve (Restricted), Operating Reserve (unrestricted), Replacement Reserve (unrestricted), Water recycling Reserve (unrestricted, and Emergency Reserve (unrestricted). The Board of Directors annually reviews this policy along with the funding level of LWD’s restricted and unrestricted reserves.