Why reserves matter
The Bear Valley Water District considers careful fiscal planning essential to the long-term, sustainable delivery of its core services — specifically the collection, treatment and disposal of wastewater for all of its customers, as well as the careful stewardship of the public's financial and environmental assets.
The District has determined that a key part of its financial preparedness rests on sound reserve policies and guidelines. This policy provides for the prudent accumulation and management of designated reserve funds to achieve the District's long-term, strategic financial goals.
Managed and allocated effectively, reserves provide stakeholders a variety of benefits — financial policies that help guarantee the District can meet future requirements of customer demand and system reliability, stable rates for ratepayers, well-maintained public assets, emergency preparedness, capital improvement and replacement of assets, savings to balance budgets, and proper allocation of funds for future growth and expansion of facilities.
Designated reserve funds
This Reserve Fund Policy clearly identifies specific designated reserve funds and governs how they are managed. The adequacy of target reserve year-end balance ranges and/or annual contributions is reviewed annually during the budgeting process and may be revised accordingly. The Board of Directors establishes the following reserve funds:
- Sewer Operations and Maintenance (O&M) Emergency Reserve Fund
- Sewer Capital Improvement & Replacement Program (CIP) Reserve Fund
- Sewer System Capacity Fee Reserve Fund
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