PAGE FIVE In response to its strategic objectives, District staff proposed a series of financial policies to support its financial stability and long-term sustainability. These include a Reserves Policy, Budget Policy, Unclaimed Monies Policy, and Debt Management Policy, as well as strategies to address the District’s pension and other post-employment benefit liabilities. Together, these policies are intended to help the District proactively manage financial obligations, mitigate risk, and plan for anticipated liabilities. In parallel, the District has taken steps to streamline its financial operations, including clearing prior payables, improving the classification of grant billings, and improving transaction reporting. Staff is also actively working to reduce costs associated with purchasing recycled water from Monterey One Water, in accordance with the PWM water purchase agreement. The District reached a final settlement with the Monterey Peninsula Taxpayers Association regarding its prior collections of the Water Supply Charge. Following a court ruling in September 2024, staff coordinated with the County to rescind the charge from the 2024–25 property tax bills, and under the terms of the settlement, the District will refund approximately $3.35 million to property owners who paid the Water Supply Charge during the contested period. An average of $44 will be paid to each property owner. District Awarded Certificate of Financial Excellence The Pun Group LLP, an independent auditing firm, conducted the District's fiscal year 2024-2025 audit. It received a clean financial audit report with no material weaknesses or deficiencies. The District included the audit in its eleventh consecutive Annual Comprehensive Financial Report (ACFR). The report consists of a set of government financial statements that comply with the accounting requirements promoted by the Government Accounting Standards Board and include relevant statistical information about the District. In 2025, the Government Finance Officers Association awarded a Certificate of Achievement for Excellence in Financial Reporting to the District for its ACFR for the 20242025 fiscal year. The District has received the ACFR award for the tenth consecutive year. How Your Money is Spent As of June 30, 2025, the District’s total fund balance was $28,996,316. The Fiscal Year 2025-2026 budget anticipates expenditures of $42,237,887 as shown below. Pursuit of Fiscal Responsibility 2024-25 Expenditures $35.11 Million
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