LVMWD Las Virgenes Municipal Water District serves the western edge of Los Angeles County including the cities of Agoura Hills, Calabasas, Hidden Hills and Westlake Village. The District occupies 123 square miles and serves a population of approximately 70,000. The District provides potable water, recycled water, and sanitation (wastewater) services to its customers through three separate enterprise funds. The sanitation and recycled water services are provided through a Joint Powers Authority (JPA) with TWSD. LVMWD is organized under the Municipal Water District Act of 1911 (California Water Code section 71000 et seq.). A five-member board of directors, elected by geographic divisions, provides governance. Directors serve overlapping four-year terms, and every two years - concurrent with installation of the newly elected board – they select board officers. The board also selects a local representative from LVMWD to serve on the Board of Directors of the Metropolitan Water District of Southern California. TWSD Triunfo Water and Sanitation District was organized November 12, 1963 as a special district to provide sanitary sewer services for the southeastern portion of Ventura County. Covering approximately 50 square miles, the District serves about 30,000 people in the areas of Oak Park, Lake Sherwood, Bell Canyon, Westlake Village, and the North Ranch portion of Thousand Oaks. TWSD is governed by a board of five directors, elected at large. The District provides wastewater collection and treatment, supplies potable water, and recycled water. The sanitation and recycled water services are provided through a JPA with the Las Virgenes Municipal Water District. Las Virgenes – Triunfo Joint Powers Authority (JPA) In 1964, the Las Virgenes - Triunfo Joint Powers Authority (JPA) was established between LVMWD and TWSD to cooperatively treat wastewater for bordering areas within the Malibu Creek watershed. The JPA currently services over 103,000 residents of the Greater Los Angeles area and is governed by the combined Boards of LVMWD and TWSD. The JPA is the operating entity for wastewater treatment for both LVMWD and TWSD and its costs represent a significant component of both agencies' sanitation rates. Per the JPA's agreement, operating expenses are allocated between the two participants LVMWD and TWSD by approximately 70.6% and 29.4% respectively. Las Virgenes-Triunfo Public Financing Authority (PFA) The Las Virgenes-Triunfo Public Financing Authority (PFA or Authority) was established on September 1, 2023 between Las Virgenes Municipal Water District (LVMWD) and Triunfo Water & Sanitation District (TWSD). The Authority was formed under the Joint Exercise of Powers Act of the State of California to assist in financing public capital improvements and related costs. The Authority serves as a financing entity for the Pure Water Project Las Virgenes-Triunfo (Pure Water Project), which is administered by the JPA. The PFA has no employees, water or wastewater customers, or utility operations. A separately issued Financial report and audit opinion are required. Reporting-entity and component-unit conclusions for all four audited entities shall be evaluated under applicable GASB standards and coordinated across their financial reports. Basis of Presentation The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP), as established for governmental entities by the Governmental Accounting Standards Board (GASB) Measurement Focus, Basis of Accounting, and Financial Statement Presentation Las Virgenes Municipal Water District The financial statements (i.e., the statement of net position, the statement of revenues, expenses and changes in net position, and statement of cash flows) report information on all of the activities of the District. The financial statements use the "economic resources" measurement focus and accrual basis of accounting. Revenues are recognized when earned and expenses when liabilities are incurred, regardless of the timing of related cash flows. Grants and similar items are recognized when applicable eligibility requirements are satisfied. Financial statement classification and disclosures shall reflect GASB requirements effective for the period audited. Triunfo Water and Sanitation District The District reports its activities as an enterprise fund, which is used to account for operations that are financed and operated in a manner similar to a private business enterprise, where the intent of the District is that the costs of providing potable water, recycled water, sewer service to its customers on a continuing basis be financed or recovered primarily through user charges (charges for services), capital grants and similar funding. Revenues and expenses are recognized on the full accrual basis of accounting. Revenues are recognized in the accounting period in which they are earned and expenses are recognized in the period incurred, regardless of when the related cash flows take place. Enterprise funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with an enterprise fund's principal ongoing operations. TWSD's principal operating revenues are customer charges for potable water, recycled water and wastewater services. Pension and Other Postemployment Benefits (OPEB) Plans Las Virgenes Municipal Water District LVMWD participates in an agent multiple-employer defined benefit pension plan administered by the California Public Employees Retirement System (CALPERS). LVMWD also provides other postemployment benefits and participates in the California Employers' Retiree Benefit Trust (CERBT).The audit scope includes applicable pension and OPEB balances, disclosures, and required supplementary information using management-provided actuarial and plan information. Triunfo Water and Sanitation District All permanent employees are covered under the Triunfo Water & Sanitation District's Pension Plan (the Plan) 401(a) administered by the District through Lincoln Financial Group acting as trustee. The Plan is fully funded by a contribution rate of 16.5% or 18.5% of eligible salaries and wages made entirely by the District. The Board of Directors of the District has the authority, in its sole discretion, to amend, reduce contributions or terminate the plan at any time. Federal Financial Assistance The Districts currently receive federal financial assistance for the joint Pure Water Project. Additional funding may be received during the years of the audit services.
