§ 3.09.010. Policy statement.

A key element of prudent financial planning is to ensure that sufficient funding is available for current operating, capital, and debt service needs. Additionally, fiscal responsibility requires anticipating the likelihood of, and preparing for, unforeseen events. Cucamonga Valley Water District ("District") will at all times strive to have sufficient funding available to meet its operating, capital and debt service obligations. Reserve Funds (Funds) for the Water, Sewer and Recycled Water, as applicable, will be accumulated and maintained to allow the District to fund operating expenses and capital expenditures in a manner consistent with its Annual Operating and Capital Improvement Budget and avoid significant customer rate fluctuations due to changes in cash flow requirements.

Through a variety of policy documents and plans, including the District's strategic plan, Master Plans and other financial policies, the Board has set forth a number of long-term goals for the District. A fundamental purpose of the District's policy documents and plans are to link what must be accomplished with the necessary resources to successfully do so.

The Board of Directors ("Board") may designate specific fund accounts and maintain minimum fund balances consistent with statutory obligations that it has determined to be in the best interest of the District. The Policy directives outlined in this document are intended to ensure that the District has sufficient funds to meet current and future needs. The Board will review the level of Funds in accordance with the review and approval of the Annual Operating and Capital Improvement Budget.

( Res. No. 2015-11-5, § 1, 11-24-2015 ; Res. No. 2018-12-1 , § 1, 12-11-2018)