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HomeMy WebLinkAboutCasitas Municipal Water District - Public Financial Report Casitas Municipal Water District Annual Comprehensive Financial Report For the Years Ended June 30, 2025 and 2024 1055 Ventura Avenue, Oak View, California 93022 - 805.649.2251 www.casitaswater.org Prepared by: Janyne Brown – Chief Financial Officer CASITAS MUNICIPAL WATER DISTRICT Oak View, California ANNUAL COMPREHENSIVE FINANCIAL REPORT YEARS ENDED JUNE 30, 2025 AND 2024 This page intentionally left blank. CASITAS MUNICIPAL WATER DISTRICT ANNUAL COMPREHENSIVE FINANCIAL REPORT YEARS ENDED JUNE 30, 2025 AND 2024 TABLE OF CONTENTS i INTRODUCTORY SECTION TRANSMITTAL LETTER 1 BOARD OF DIRECTORS AND MANAGEMENT 4 ORGANIZATIONAL CHART 5 GOVERNMENT FINANCE OFFICERS ASSOCIATION – CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING 6 FINANCIAL SECTION INDEPENDENT AUDITORS’ REPORT 11 MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) 15 BASIC FINANCIAL STATEMENTS BALANCE SHEETS 22 STATEMENTS OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION 24 STATEMENTS OF CASH FLOWS 25 NOTES TO BASIC FINANCIAL STATEMENTS 27 REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY 73 SCHEDULE OF CONTRIBUTIONS TO THE PENSION PLAN 75 SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS 77 SCHEDULE OF CONTRIBUTIONS TO THE OPEB PLAN 79 SUPPLEMENTARY INFORMATION SCHEDULES OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION – BUDGET TO ACTUAL 83 COMBINING BALANCE SHEETS 85 COMBINING SCHEDULES OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION 89 CASITAS MUNICIPAL WATER DISTRICT ANNUAL COMPREHENSIVE FINANCIAL REPORT YEARS ENDED JUNE 30, 2025 AND 2024 TABLE OF CONTENTS ii DETAIL SCHEDULES OF OPERATING EXPENSES – UTILITY DEPARTMENT 91 DETAIL SCHEDULES OF OPERATING REVENUES AND EXPENSES – RECREATION DEPARTMENT 96 DETAIL SCHEDULES OF OPERATING REVENUES AND EXPENSES – ADJUDICATION FUND 98 STATISTICAL SECTION OVERVIEW OF STATISTICAL INFORMATION PRESENTED IN FIVE CATEGORIES 102 CHANGES IN NET POSITION BY COMPONENT 103 OPERATING REVENUES BY SOURCE 105 OPERATING REVENUES BY CLASS 106 OPERATING EXPENSES BY ACTIVITY 107 REVENUE BASE 108 REVENUE RATES 109 CUSTOMER BY TYPE AT FISCAL YEAR-END 117 RATIOS OF OUTSTANDING DEBT BY TYPE 118 DEBT COVERAGE 119 DEMOGRAPHIC AND ECONOMIC STATISTICS – COUNTY OF VENTURA 120 OPERATING AND CAPACITY INDICATORS – EMPLOYEES 121 OPERATING AND CAPACITY INDICATORS – OPERATIONS 122 GOVERNMENT AUDITING STANDARDS REPORT INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 126 INTRODUCTORY SECTION This page intentionally left blank. (1) November 21, 2025 Board of Directors and Customers of Casitas Municipal Water District Introduction It is our pleasure to submit the Annual Comprehensive Financial Report for the Casitas Municipal Water District (District) for the years ended June 30, 2025 and 2024, following guidelines set forth by the Governmental Accounting Standards Board. District staff prepared this financial report. The District is ultimately responsible for both the accuracy of the data and completeness and the fairness of presentation, including all disclosures in this financial report. We believe that the data presented is accurate in all material respects. This report is designed in a manner that we believe necessary to enhance your understanding of the District’s financial position and activities. Generally Accepted Accounting Principles (GAAP) requires that management provide a narrative introduction, overview and analysis to accompany the financial statements in the form of the Management’s Discussion and Analysis (MD&A) section. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The District’s MD&A can be found immediately after the Independent Auditor’s Report. District Structure and Leadership The Casitas Municipal Water District is a special district of the State of California that provides domestic and agricultural water services to the western portion of Ventura County. The District’s Board of Directors is composed of five members who are elected in specified election divisions. The Directors serve terms of four years with an election held every two years for alternating divisions. The District also provides recreational activities at Lake Casitas. The Water District and the lake activities are accounted for as an enterprise fund. Formed in 1952, the District was the inspiration of area civic leaders, cattlemen, and citrus ranchers who were frustrated by a severe drought and subsequent water rationing. Between 1952 and 1956, when ground was broken for Casitas Dam, the District sought and obtained commitments for 50-year federal loans to construct Casitas Dam and the Robles-Casitas Diversion Canal. Engineers drilled through 1,800 feet of rock for the outlet tunnel and built an earthen dam with 9.2 million cubic yards of earth. Final cost of the reservoir, dam and Lake Casitas Recreation Area was $20 million. Drawing from the 105-square mile watershed, Lake Casitas began to form in the Santa Ana Valley. In 1978, 19 years after the dam’s completion, the lake overflowed for the first time. With a capacity of 237,761-acre feet (Updated 2017), the reservoir has a shoreline of 35 miles and provides water to over 65,000 people. Water quality is strictly controlled in the surrounding 3,200-acre Charles M. Teague Memorial Watershed. Since 1974, the federal government has spent more than $25 million to purchase lands in the watershed to preserve water quality from the pollution of over development. Casitas Municipal Water District has been a strong proponent of watershed protection and lake management. The efforts to protect the Lake Casitas watershed and lake management practices developed by the District provide an excellent quality of water for the customers. Regulatory changes affecting surface waters had moved the District through considerations for filtration avoidance to the conclusion that construction of a water filtration plant was necessary to meet regulatory requirements. The Marion R. Walker Pressure Filtration Plant was designed and constructed to meet those requirements and became fully operational on November 6, 1997. Casitas was proud to (2) receive a water supply permit from the Department of Health Services granting the District permission to supply water for domestic purposes after completion of the treatment plant. In 2017, Casitas acquired the Ojai Water System from Golden State Water Company (GSWC). Prior to this, GSWC had been a wholesale customer of Casitas. Ojai Water System customers are now direct customers of Casitas. The Ojai Water System includes the Ojai Wellfield on the east end of Ojai with six groundwater wells. These wells are located in the Ojai Groundwater Basin and currently provide approximately 1,800 AFY of supply. Economic Condition and Outlook After experiencing one of the lowest annual consumption years the District has started to see a rebound. This past fiscal year across all classes there was over 3,800 AF increase from the prior year or 55% increase year over year. Balancing operational expenses and capital replacement expenditures has been challenging for the District with the decreased demand in water. To ensure the capital replacement program can be met and operational expenses balanced the District is going through a rate study with a plan to adopt new rates in January 2026. Internal Control Structure District management is responsible for the establishment and maintenance of the internal control structure that ensures the assets of the District are protected from loss, theft or misuse. The internal control structure also ensures adequate accounting data is compiled to allow for the preparation of financial statements in conformity with generally accepted accounting principles. The District’s internal control structure is designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived, and (2) the valuation of costs and benefits require estimates and judgments by management. Budgetary Control The District’s Board of Directors annually adopts an operating and capital budget prior to the new fiscal year. The budget authorizes and provides the basis for reporting and control of financial operations and accountability for the District’s enterprise operations and capital projects. The budget and reporting treatment applied to the District is consistent with the accrual basis of accounting and financial statement basis. Investment Policy The Board of Directors have adopted an investment policy that conforms to state law, District ordinance and resolutions, prudent money management, and the “prudent person” standards. The objective of the Investment Policy is safety, liquidity and yield. District funds are invested in the State Treasurer’s Local Agency Investment Fund, County of Ventura Pooled Money Investment Fund, U.S. Treasury Bills, Notes and Bonds, and institutional savings and checking accounts. Water Rate and District Revenues District policy direction ensures that all revenues from user charges and surcharges generated from District customers must support all District operations including capital project funding. Accordingly, water rates are reviewed periodically. Water rates are user charges imposed on customers for services and are the primary component of the District’s revenue. Water rates are composed of a commodity (usage) charge and a fixed (readiness-to-serve) charge. The City of Ventura initiated a water rights adjudication of four groundwater basins within the Ventura River watershed. The basins named in the lawsuit include: Upper Ventura River Groundwater Basin, Lower Ventura River (3) Groundwater Basin, Ojai Valley Groundwater Basin, and Upper Ojai Valley Groundwater Basin. The outcome of the adjudication is currently unknown and Casitas continues to actively defend and protect its water rights. As a result of the water right adjudication, a pass-through fee for the expected costs associated with the lawsuit, was added as an additional fixed charge. The pass through fee was passed through a proposition 218 process and became effective July 1, 2020. Audit and Financial Reporting State Law and Bond covenants require the District to obtain an annual audit of its financial statements by an independent certified public accountant. The accounting firm of Clifton Larson Allen, LLP has conducted the audit of the District’s financial statements. Their unmodified Independent Auditor’s Report appears in the Financial Section. Awards and Acknowledgements For the year ended June 30, 2024, the District received for the 31st year the Government Finance Officers Association of the United States and Canada’s (GFOA) Certificate of Achievement for Excellence in Financial Reporting. To be awarded a Certificate of Achievement, a governmental unit must publish an easily readable and efficiently organized Comprehensive Financial Report. This report must satisfy both generally accepted accounting principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program’s requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. Preparation of this report was accomplished by the combined efforts of District staff. We appreciate the dedicated efforts and professionalism that our staff members bring to the District. We would also like to thank the members of the Board of Directors for their continued support in the planning and implementation of the Casitas Municipal Water District’s fiscal policies. Respectfully submitted, ________________________________ ____________________________ Michael Flood Janyne Brown General Manager Chief Financial Officer CASITAS MUNICIPAL WATER DISTRICT BOARD OF DIRECTORS AND MANAGEMENT JULY 1, 2024 – JUNE 30, 2025 (4) Board Member Division Date of Original Election or Appointment Ending Date of Term Brian Brennan Division 1 November, 2018 December, 2026 Neil Cole Division 2 November, 2020 December, 2028 Pete Kaiser Division 3 November, 2002 December, 2028 Mary Bergen Division 4 May 26, 2021 December, 2026 Richard Hajas Division 5 November, 2020 December, 2028 Michael Flood General Manager Kelley Dyer Assistant General Manager Rebekah Vieira Executive Administrator Diana Impeartrice Human Resources Janyne Brown Chief Financial Officer Julia Aranda Principal Civil Engineer Joe Martinez III Park Services Manager Michael Shields O&M Manager Scott Lewis Fisheries Biologist Tyrone LaFay Public Affairs & Water Conservation Manager Board of Directors Staff Board of Directors Michael Flood General Manager Tyrone LaFay Public Affairs- Water Cons. MGR Water Conservation Specialist Water Conservation Analyst Julia Aranda Principal Civil Eng 2 – Senior Project Manager Assistant Engineer GIS Technician Engineering Technician Janyne Brown Chief Financial Officer Accounting & Customer Service Supervisor Buyer Payroll Technician Accountant 2 – Accounting Technician Scott Lewis Fisheries Biologist Associate Fisheries Biologist Fisheries Aid Fisheries Tech Joe Martinez III Park Services Manager Division Officer Park Ranger IV 2-Park Ranger III 1 – Park Services Officer III 1 – Park Services Officer IV 2 – Park Ranger I 1 – Park Ranger II Aquatics Coordinator Guest Services Coordinator Maintenance IV Maintenance III 2- Maintenance II Rebekah Vieira Executive Administrator Safety Officer Diana Impeartrice Human Resources Manager Kevin Nguyen IT Administrator IT Technician Michael Shields O & M Manager O & M Specialist Maintenance Supervisor 2- Maintenance Worker II Maintenance Worker I Treatment Plant Supervisor Dam Tender/TP Operator V 4-Treatment Plant Operator IV 1- Maintenance Tech I E & M Supervisor E & M Systems Specialist IV 2- E & M Systems Specialist II Electrical & Instrumentation Lead Utility Supervisor 1 – Utility Worker II Utility Worker I 2-Utility Worker III Pipeline Supervisor 3 – Distribution Technician IV Distribution Technician II Welder/fabricator Water Quality Supervisor Water Quality Specialist Laboratory Technician Water Quality Aid Operations Coordinator Kelley Dyer Assistant General Manager Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to Casitas Municipal Water District California For its Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2024 Executive Director/CEO 0 2 41 Miles 0 2 41 Miles µ  Casitas Municipal Water District District Boundary  Ventura Fwy Ojai Fwy Ventura Ave Baldwin Rd Casitas Pass Rd Los Angeles Ave E. Los Angeles Ave Santa Clara Ave Harbor Blvd Santa Paula Fwy Ojai Ave Ojai Santa Paula Rd            Districtoffice101 101 118 101 33 33 150 150 192 33 126 126 150 150 (8) This page intentionally left blank. (9) FINANCIAL SECTION (10) This page intentionally left blank. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.  CliftonLarsonAllen LLP  CLAconnect.com  (11) INDEPENDENT AUDITORS’ REPORT Board of Directors Casitas Municipal Water District Oak View, California Report on the Audit of the Financial Statements Opinion We have audited the accompanying financial statements of Casitas Municipal Water District (the District), as of and for the years ended June 30, 2025 and 2024, and the related notes to the financial statements, which collectively comprise the District’s basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the District, as of June 30, 2025 and 2024, and the changes in financial position and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the District and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Emphasis of Matter – Change in Accounting Principle As described in Note 18 to the financial statements, in 2025, the District adopted new accounting guidance, GASB Statement No. 101, Compensated Absences, which resulted in restatements. Our opinion is not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Board of Directors Casitas Municipal Water District (12) In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the District’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit. Board of Directors Casitas Municipal Water District (13) Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedule of the proportionate share of the net pension liability, schedule of the contributions to the pension plan, schedule of changes in the net OPEB liability and related ratios, and schedule of contributions to the OPEB plan be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audits of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audits were conducted for the purpose of forming an opinion on the financial statements that collectively comprise the District’s basic financial statements. The schedule of revenues, expenses, and changes in net position – budget to actual, combining balance sheets, combining schedule of revenues and expenses and changes in net position, detail schedule of operating expenses – utility department, detail schedule of operating revenues and expenses – recreation department, and detail schedule of operating revenues and expenses – adjudication fund (the supplementary information) are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audits of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the supplementary information is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditors’ report thereon. Our opinion on the basic financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audits of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Board of Directors Casitas Municipal Water District (14) Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated November 21, 2025, on our consideration of the District’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the District’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the District’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Irvine California November 21 2025 CASITAS MUNICIPAL WATER DISTRICT MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) YEARS ENDED JUNE 30, 2025 AND 2024 (15) Management’s Discussion and Analysis (MD&A) offers readers of Casitas Municipal Water District’s financial statements a narrative overview of the District’s financial activities for the year ended June 30, 2025 and 2024. This MD&A presents financial highlights, an overview of the accompanying financial statements, an analysis of net position and results of operation, a current-to prior year analysis for the past three years, a discussion on restrictions, commitments and limitations, and a discussion of significant activity involving capital assets and long-term debt. Please read in conjunction with the financial statements which follow this section. FINANCIAL HIGHLIGHTS  In fiscal year 2025, the District’s net position increased 8.4%, or $3,713,112 from the prior year’s net position of $44,271,923 to $47,985,035, as a result of that year’s operations.  In fiscal year 2024, the District’s net position increased 3.95%, or $2,044,899 from the prior year’s net position of $42,589,533 to $44,271,923, as a result of this year’s operations.  In fiscal year 2025, operating revenues increased by 34.6% or $6,248,344 from $18,068,550 to $24,316,894 from the prior year, due to increased water consumption.  In fiscal year 2024, operating revenues increased by 1.9% or $333,157 from $17,735,393 to $18,068,550 from the prior year, primarily due to recreation activities.  In fiscal year 2025, operating expenses before depreciation and change in water-in-storage inventory, increased by 4.69% or $1,150,989 from $24,561,440 to $25,712,429, from the prior year, primarily due to increased operational costs.  In fiscal year 2024, operating expenses before depreciation and change in water-in-storage inventory, increased by 1.34% or $323,689 from $24,237,751 to $24,561,440, from the prior year, primarily due to increased operational costs. REQUIRED FINANCIAL STATEMENTS This annual report consists of a series of financial statements. The Balance Sheets, Statements of Revenues, Expenses and Changes in Net Position, and Statements of Cash Flows provide information about the activities and performance of the District using accounting methods similar to those used by private sector companies. The Balance Sheets includes all of the District’s investments in resources (assets), deferred outflows of resources, the obligations to creditors (liabilities), and deferred inflows of resources. It also provides the basis for computing a rate of return, evaluating the capital structure of the District and assessing the liquidity and financial flexibility of the District. All of the current year’s revenue and expenses are accounted for in the Statement of Revenues, Expenses, and Changes in Net Position. This statement measures the success of the District’s operations over the past two years and can be used to determine if the District has successfully recovered all of its costs through it rates and other charges. This statement can also be used to evaluate profitability and creditworthiness. The final required financial statement is the Statement of Cash Flows, which provides information about the District’s cash receipts and cash payments during the reporting periods. The Statements of Cash Flows reports cash receipts, cash payments and net changes in cash resulting from operations, investing, non-capital financing, and capital and related financing activities and provides answers to such questions as where did cash come from, what was cash used for, and what was the change in cash balance during the reporting period. CASITAS MUNICIPAL WATER DISTRICT MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) YEARS ENDED JUNE 30, 2025 AND 2024 (16) FINANCIAL ANALYSIS OF THE DISTRICT One of the most important questions about the District’s finances is, “Is the District better off or worse as a result of this year’s activities?” The Balance Sheets and Statements of Revenues, Expenses, and Changes in Net Position report information about the District in a way that helps answer this question. These statements include all assets, deferred outflows of resources, liabilities, and deferred inflows of resources using the accrual basis of accounting, which is similar to the accounting method used by most private sector companies. All of the current year’s revenues and expenses are taken into account regardless of when the cash is received or paid. These two statements report the District’s net position and changes in them. You can think of the District’s net position – the difference between assets, deferred outflows of resources, liabilities and deferred inflows of resources – as one way to measure the District’s financial health, or financial position. Over time, increases or decreases in the District’s net position are one indicator of whether its financial health is improving or deteriorating. However, one will need to consider other non-financial factors such as changes in economic conditions, population growth, zoning, and new or changed government legislation. Condensed Balance Sheets June 30, 2025 June 30, 2024 Change June 30, 2023 Change Assets: Current assets $26,855,095 $20,388,311 $6,466,784 $19,623,226 $765,085 Non-current assets 14,473,794 15,333,929 (860,135) 12,554,696 2,779,233 Capital assets, net 95,382,511 95,391,879 (9,368) 96,050,014 (658,135) Total assets 136,711,400 131,114,119 5,597,281 128,227,936 2,886,183 Deferred outflows of resources 10,517,045 12,465,345 (1,948,300) 14,219,391 (1,754,046) Total assets and deferred outflows of resources $147,228,445 $143,579,464 $3,648,981 $142,447,327 $1,132,137 Liabilities: Current liabilities $6,915,871 $5,131,535 $1,784,336 $4,530,803 $600,732 Non-current liabilities 83,096,968 83,638,505 (541,537) 83,455,442 183,063 Total liabilities 90,012,839 88,770,040 1,242,799 87,986,245 783,795 Deferred inflows of resources 9,230,571 10,537,501 (1,306,930) 11,871,549 (1,334,048) Net position: Net Investment in capital assets 38,624,685 37,576,774 1,047,911 39,209,965 (1,633,191) Restricted 931,086 1,112,722 (181,636) 685,776 426,946 Unrestricted 8,429,264 5,582,427 2,846,837 2,693,792 2,888,635 Total net position 47,985,035 44,271,923 3,713,112 42,589,533 1,682,390 Total liabilities, deferred inflows of resources, and net position $147,228,445 $143,579,464 $3,648,981 $142,447,327 $1,132,137 CASITAS MUNICIPAL WATER DISTRICT MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) YEARS ENDED JUNE 30, 2025 AND 2024 (17) As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the District, assets and deferred outflows of resources of the District exceeded liabilities and deferred inflows of resources by $47,985,035, $44,271,923, and $42,589,533 as of June 30, 2025, 2024, and 2023, respectively. By far the largest portion of the District’s net position (80% as of June 30, 2025, 85% as of June 30, 2024, and 92% as of June 30, 2023) reflects the District’s net investment in capital assets (net depreciation) less any related debt used to acquire those assets that is still outstanding. The District uses these capital assets to provide services to its customers; consequently, these assets are not available for future spending. At the end of years 2025, 2024, and 2023, the District showed a positive balance in its unrestricted net position of $8,429,264, $5,582,427, and $2,693,792 respectively, which may be utilized in future years. Condensed Statements of Revenues, Expenses, and Changes in Net Position The statement of revenues, expenses and changes in net position shows how the District’s net position changed during the fiscal years. In the case of the District, the District’s net position increased by $3,713,112 and $2,044,899 for the years ended June 30, 2025 and 2024 respectively and decreased by $3,486,316 for the years ended June 30, 2023. June 30, 2025 June 30, 2024 Change June 30, 2023 Change Operating revenues $24,316,894 $18,068,550 $6,248,344 $17,735,393 $333,157 Operating expenses (26,442,329) (19,609,647) (6,832,682) (22,238,226) 2,628,579 Operating income before depreciation (2,125,435) (1,541,097) (584,338) (4,502,833) 2,961,736 Depreciation expense (4,322,963) (4,229,659) (93,304) (4,143,938) (85,721) Operating income (loss) (6,448,398) (5,770,756) (677,642) (8,646,771) 2,876,015 Non-operating revenues (expenses), net 8,685,362 6,793,120 1,892,242 4,970,292 1,822,828 Net loss before capital contributions 2,236,964 1,022,364 1,214,600 (3,676,479) 4,698,843 Capital contributions 1,476,148 1,022,535 453,613 190,163 832,372 Change in net position 3,713,112 2,044,899 1,668,213 (3,486,316) 5,531,215 Net position: Beginning of year 44,640,407 42,589,533 2,050,874 46,075,849 (3,486,316) Prior period adjustment (368,484) (362,509) (5,975) - (362,509) End of year $47,985,035 $44,271,923 $3,713,112 $42,589,533 $1,682,390 CASITAS MUNICIPAL WATER DISTRICT MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) YEARS ENDED JUNE 30, 2025 AND 2024 (18) Total Revenues In fiscal year 2025, operating revenues increased by 34.6% or $6,248,344 from $18,068,550 to $24,316,894 from the prior year. Water consumption along with the rate increases is the main driver in the year over year increase. In fiscal year 2024, operating revenues slightly increased by 1.9% or $333,157 from $17,735,393 to $18,068,550 from the prior year. With the lake being about 100% full along with the new aquatic play structure increased the amount of traffic and revenue that was generated by recreation activities. In fiscal year 2023, operating revenues decreased by 15.9% or $3,363,451 from $21,098,844 to $17,735,393 from the prior year. The decrease in revenues is primarily due to historically low water consumption as a result of the winter storms. June 30, 2025 June 30, 2024 Increase (Decrease) June 30, 2023 Increase (Decrease) Operating revenues: Retail water consumption $8,033,874 $4,978,739 $3,055,135 $5,226,167 ($247,428) Wholesale water sales 2,574,516 1,349,832 1,224,684 1,357,651 (7,819) Monthly water service charge 6,570,736 6,008,900 561,836 5,669,871 339,029 Recreation revenue 6,628,905 5,460,240 1,168,665 4,703,998 756,242 Other water charges and services 508,863 270,839 238,024 777,706 (506,867) Total operating revenues 24,316,894 18,068,550 6,248,344 17,735,393 333,157 Non-operating: Property taxes- ad valorem 3,340,319 3,150,716 189,603 2,973,364 177,352 Pass-through property tax increment 490,947 415,409 75,538 414,840 569 Property tax assessment for SWP 1,395,222 1,195,624 199,598 1,447,573 (251,949) State water project water sales to other agencies 1,000,000 1,375,000 (375,000) 175,000 1,200,000 CFD 2013-1 assessment 3,057,126 2,963,060 94,066 2,929,902 33,158 Mira Monte assessment - 65 (65) 165 (100) Investment earnings 512,245 525,613 (13,368) 155,531 370,082 Adjudication 566,470 571,394 (4,924) 576,003 (4,609) Other non-operating revenues/ (expenses), net 2,343,665 249,608 2,094,057 176,270 73,338 Total non-operating 12,705,994 10,446,489 2,259,505 8,848,648 1,597,841 Total revenues $37,022,888 $28,515,039 $8,507,849 $26,584,041 $1,930,998 CASITAS MUNICIPAL WATER DISTRICT MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) YEARS ENDED JUNE 30, 2025 AND 2024 (19) Total Expenses In fiscal year 2025, operating expenses before depreciation and change in water-in-storage inventory, increased by 4.69% or $1,150,989 from $24,561,440 to $25,712,429. The engineering department saw a significant decrease in expenses from the prior year primarily due no longer absorbing expenses relating to the January 2023 storms. All the other departments increased year over year can be attributed to general operational increases. In fiscal year 2024, operating expenses before depreciation and change in water-in-storage inventory, slightly increased by 1.341% or $323,689 from $24,237,751 to $24,561,440, from the prior year, which can be attributed to general operational increases. In fiscal year 2023, operating expenses before depreciation and change in water-in-storage inventory, increased by 3.62% or $847,151 from $23,390,600 to $24,237,751, from the prior year, primarily due to expenses related to the damages sustained from the January 2023 storms. June 30, 2025 June 30, 2024 Increase (Decrease) June 30, 2023 Increase (Decrease) Operating expenses: Fisheries $773,393 $755,804 $17,589 $543,410 $212,394 Engineering 2,442,981 2,904,477 (461,496) 4,050,866 (1,146,389) Water Treatment 2,652,983 2,487,997 164,986 2,393,601 94,396 Water Quality 1,039,295 846,449 192,846 897,299 (50,850) Utilities Maintenance 1,210,114 1,089,643 120,471 1,086,579 3,064 Electrical Mechanical 3,137,716 2,855,417 282,299 2,908,210 (52,793) Pipeline 1,788,539 1,666,320 122,219 1,680,785 (14,465) Recreation expenses 5,999,660 5,478,328 521,332 4,772,978 705,350 Operations Maintenance & Management 1,687,881 1,588,634 99,247 1,493,084 95,550 General and administrative 4,979,867 4,888,371 91,496 4,410,939 477,432 Change in water-in-storage inventory 729,900 (4,951,793) 5,681,693 (1,999,525) (2,952,268) Operating expenses before depreciation 26,442,329 19,609,647 6,832,682 22,238,226 (2,628,579) Depreciation 4,322,963 4,229,659 93,304 4,143,938 85,721 Total operating expenses 30,765,292 23,839,306 6,925,986 26,382,164 (2,542,858) Non-operating: State water project expense 779,259 979,475 (200,216) 1,119,365 (139,890) Tax collection expense 56,546 56,101 445 47,388 8,713 Interest expense- Long-term debt 2,375,477 2,415,549 (40,072) 2,458,630 (43,081) Amortization of Bond Insurance on CFD 2013-1 20,241 20,241 - 20,241 - Adjudication 748,068 144,448 603,620 147,680 (3,232) Bond and Administrative Fees 36,501 30,767 5,734 34,552 (3,785) Cost of debt issuance - - - 50,500 (50,500) Loss on Disposition of Capital Asset 4,540 6,788 (2,248) - 6,788 Total non-operating 4,020,632 3,653,369 367,263 3,878,356 (224,987) Total expenses $34,785,924 $27,492,675 $7,293,249 $30,260,520 ($2,767,845) CASITAS MUNICIPAL WATER DISTRICT MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) YEARS ENDED JUNE 30, 2025 AND 2024 (20) Capital Assets At the end of year 2025, 2024, and 2023 the District’s investment in capital assets amounted to $95,382,511, $95,391,879, and $96,050,014 (net of accumulated depreciation), respectively. Capital asset additions amounted to $4,340,571 for various projects primarily related to the Ventura County-Santa Barbara Intertie projects, Rincon backup generator, DBP reduction project, and the Marion Walker treatment plant generator. See Note 6 for further information. Debt Administration The long-term debt of the District is summarized below: Long term debt decreased by $1,295,201 for the year ended June 30, 2025, due to principal payments along with premium amortization of the long term debt. Debt increased for the year ended June 30, 2023, due to the replacement of the aquatic play structure at Lake Casitas. See Notes 8, 9, and 10 for further information. Balance Balance Balance June 30, 2025 June 30, 2024 June 30, 2023 Capital assets: Non-depreciable assets $15,688,125 $13,514,383 $17,878,979 Depreciable assets 174,700,725 173,140,646 165,651,742 Accumulated depreciation (95,862,624) (92,238,384) (88,454,753) Lease Asset 852,970 649,433 520,882 Amortization Lease Asset (349,975) (202,217) (76,073) SBITA 1,017,155 940,523 758,670 Amortization SBITA (663,865) (412,505) (229,433) Total capital assets, net $95,382,511 $95,391,879 $96,050,014 Balance Balance Balance June 30, 2025 June 30, 2024 June 30, 2023 Long-term debt: Reimbursement agreement $2,085,160 $2,162,388 $2,239,616 Loans payable 2,148,737 2,396,878 2,636,911 Notes Payable 136,310 199,319 251,255 Lease Payable 483,911 399,271 381,659 SBITA 316,641 491,677 468,132 Special tax bonds 53,779,964 54,596,391 55,332,818 Total Long Term Debt $58,950,723 $60,245,924 $61,310,391 CASITAS MUNICIPAL WATER DISTRICT MANAGEMENT’S DISCUSSION AND ANALYSIS (UNAUDITED) YEARS ENDED JUNE 30, 2025 AND 2024 (21) NOTES TO THE BASIC FINANCIAL STATEMENTS The notes provide additional information that is essential to a full understanding of the data provided in the basic financial statements. CONDITIONS AFFECTING CURRENT FINANCIAL POSITION With the lake being 93.7% full along with the exceptional job District customers have done over the years in regard to conservation efforts has resulted in lower water consumption. Although the District saw a significant increase in demand compared to the prior year balancing operational expenses, maintaining a capital replacement program, and replenishing reserves continues to be challenging for the District. The full magnitude decreased demand will have on the District’s financial condition, liquidity and future continues to remain uncertain. CONTACTING THE DISTRICT’S FINANCIAL MANAGEMENT This financial report is designed to provide the District’s funding sources, customers, stakeholders, and other interested parties with an overview of the District’s financial operations and financial condition. Should the reader have questions regarding the information included in this report or wish to request additional financial information, please contact the District’s Chief Financial Officer at 1055 Ventura Avenue, Oak View, California 93022 or (805) 649-2251 x 103. CASITAS MUNICIPAL WATER DISTRICT BALANCE SHEETS JUNE 30, 2025 AND 2024 See accompanying Notes to Basic Financial Statements. (22) 2025 2024 ASSETS AND DEFERRED OUTFLOWS OF RESOURCES CURRENT ASSETS Cash and Cash Equivalents 8,638,320$ 6,312,473$ Investments 11,023,796 9,684,841 Accrued Interest Receivable 72,962 54,533 Accounts Receivable, Net 6,358,610 3,308,978 Materials and Supplies Inventory 44,237 56,722 Prepaid Expenses 717,170 970,764 Total Current Assets 26,855,095 20,388,311 NONCURRENT ASSETS Restricted - Cash and Cash Equivalents 4,787 135,021 Water-in-Storage Inventory 14,469,007 15,198,908 Capital Assets - Not Being Depreciated 15,688,125 13,514,383 Capital Assets - Being Depreciated, Net 78,838,101 80,902,262 Capital Assets, Intangible Asset - Right-to-Use Leased Asset, Net 502,995 447,216 Capital Assets, Intangible Asset - SBITA, Net 353,290 528,018 Total Noncurrent Assets 109,856,305 110,725,808 Total Assets 136,711,400 131,114,119 DEFERRED OUTFLOWS OF RESOURCES Deferred Loss on CFD 2013-1 2,453,301 2,659,172 OPEB Related Deferred Outflows of Resources 3,920,574 4,611,611 Pension Related Deferred Outflows of Resources 4,143,170 5,194,562 Total Deferred Outflows of Resources 10,517,045 12,465,345 Total Assets and Deferred Outflows of Resources 147,228,445$ 143,579,464$ CASITAS MUNICIPAL WATER DISTRICT BALANCE SHEETS (CONTINUED) JUNE 30, 2025 AND 2024 See accompanying Notes to Basic Financial Statements. (23) 2025 2024 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION CURRENT LIABILITIES Accounts Payable and Accrued Expenses 1,873,497$ 1,211,499$ Deposits 1,066,672 106,286 Accrued Interest Payable 796,454 820,177 Unearned Revenue 758,148 683,425 Long-Term Liabilities - Due Within One Year: Compensated Absences 716,117 679,447 Claims Liability 224,575 288,397 Lease Liability 148,273 104,802 SBITA Liability 239,250 234,125 Long-Term Debt 1,092,885 1,003,377 Total Current Liabilities 6,915,871 5,131,535 NONCURRENT LIABILITIES Long-Term Liabilities - Due in More Than One Year: Compensated Absences 1,074,173 1,019,167 Claims Liability 56,610 85,463 Lease Liability 335,638 294,469 SBITA Liability 77,391 257,552 Long-Term Debt 57,057,286 58,351,599 Net OPEB Liability 12,063,469 11,176,458 Net Pension Liability 12,432,401 12,453,797 Total Noncurrent Liabilities 83,096,968 83,638,505 Total Liabilities 90,012,839 88,770,040 DEFERRED INFLOWS OF RESOURCES OPEB Related Deferred Inflows of Resources 9,188,629 10,428,644 Pension Related Deferred Inflows of Resources 41,942 108,857 Total Deferred Inflows of Resources 9,230,571 10,537,501 NET POSITION Net Investment in Capital Assets 38,624,685 37,576,774 Restricted for Adjudication 931,086 1,112,722 Unrestricted 8,429,264 5,582,427 Total Net Position 47,985,035 44,271,923 Total Liabilities, Deferred Inflows of Resources, and Net Position 147,228,445$ 143,579,464$ CASITAS MUNICIPAL WATER DISTRICT STATEMENTS OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION YEARS ENDED JUNE 30, 2025 AND 2024 See accompanying Notes to Basic Financial Statements. (24) 2025 2024 OPERATING REVENUES Retail Water Consumption 8,033,874$ 4,978,739$ Wholesale Water Sales 2,574,516 1,349,832 Monthly Water Service Charge 6,570,736 6,008,900 Recreation Revenue 6,628,905 5,460,240 Other Water Charges and Services 508,863 270,839 Total Operating Revenues 24,316,894 18,068,550 OPERATING EXPENSES Fisheries 773,393 755,804 Engineering 2,442,981 2,904,477 Water Treatment 2,652,983 2,487,997 Water Quality 1,039,295 846,449 Utilities Maintenance 1,210,114 1,089,643 Electrical Mechanical 3,137,716 2,855,417 Pipeline 1,788,539 1,666,320 Recreation Expenses 5,999,660 5,478,328 Operations Maintenance and Management 1,687,881 1,588,634 General and Administrative 4,979,867 4,888,371 Change in Water-in-Storage Inventory 729,900 (4,951,793) Total Operating Expenses 26,442,329 19,609,647 OPERATING LOSS BEFORE DEPRECIATION (2,125,435) (1,541,097) DEPRECIATION AND AMORTIZATION Depreciation (3,925,908) (3,879,138) Right-to-Use Leased Asset Amortization (147,758) (126,144) SBITA Amortization (249,297) (224,377) Total Depreciation and Amortization (4,322,963) (4,229,659) OPERATING LOSS (6,448,398) (5,770,756) NONOPERATING REVENUES (EXPENSES) Property Taxes - Ad Valorem 3,340,319 3,150,716 Pass-Through Property Tax Increment 490,947 415,409 Property Tax Assessment for State Water Project 1,395,222 1,195,624 State Water Project Water Sales to Other Agencies 1,000,000 1,375,000 State Water Project Expense (779,259) (979,475) CFD 2013-1 Assessment 3,057,126 2,963,060 Mira Monte Assessment - 65 Tax Collection Expense (56,546) (56,101) Investment Earnings 512,245 525,613 Interest Expense - Long-Term Debt (2,375,477) (2,415,549) Amortization of Bond Insurance on CFD 2013-1 (20,241) (20,241) Bond and Administrative Fees (36,501) (30,767) Adjudication Charge 566,470 571,394 Adjudication Costs (748,068) (144,448) Loss on Disposition of Capital Assets (4,540) (6,788) Other, Net 2,343,665 249,608 Total Nonoperating Revenues (Expenses), Net 8,685,362 6,793,120 NET INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS 2,236,964 1,022,364 CAPITAL CONTRIBUTIONS Federal, State, and Local Grants 1,476,148 1,022,535 Total Capital Contributions 1,476,148 1,022,535 CHANGE IN NET POSITION 3,713,112 2,044,899 Net Position - Be innin of Year, As Previousl Presented 44,271,923 42,589,533 Restatement - 362,509 Net Position - Beginning of Year, As Restated 44,271,923 42,227,024 NET POSITION - END OF YEAR 47,985,035$ 44,271,923$ CASITAS MUNICIPAL WATER DISTRICT STATEMENTS OF CASH FLOWS YEARS ENDED JUNE 30, 2025 AND 2024 See accompanying Notes to Basic Financial Statements. (25) 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES Cash Receipts from Customers and Others 26,134,074$ 20,481,880$ Cash Paid to Employees for Salaries and Benefits (15,336,285) (14,592,500) Cash Paid to Vendors and Suppliers for Materials and Services (9,043,083) (8,910,751) Net Cash Provided (Used) by Operating Activities 1,754,706 (3,021,371) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Proceeds from Property Taxes and Assessments 8,285,154 7,699,181 Tax Collection Expense (56,546) (56,101) Net Cash Provided by Noncapital Financing Activities 8,228,608 7,643,080 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and Construction of Capital Assets (4,630,515) (4,154,562) Proceeds from Capital Grants 1,476,148 1,022,535 Principal Paid on Long-Term Debt (1,003,378) (953,949) Interest and Fees Paid on Long-Term Debt (2,399,382) (2,420,871) Lease payments (118,897) (94,903) SBITA payments (268,716) (232,570) Net Cash Used by Capital and Related Financing Activities (6,944,740) (6,834,320) CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from the Sale or Maturity of Investments - 1,139,924 Purchases of Investments (1,119,221) - Investment Earnings 276,260 329,878 Net Cash Provided (Used) by Investing Activities (842,961) 1,469,802 NET CHANGE IN CASH AND CASH EQUIVALENTS 2,195,613 (742,809) Cash and Cash Equivalents - Beginning of Year 6,447,494 7,190,303 CASH AND CASH EQUIVALENTS - END OF YEAR 8,643,107$ 6,447,494$ RECONCILIATION OF CASH AND CASH EQUIVALENTS TO THE BALANCE SHEET Cash and Cash Equivalents 8,638,320$ 6,312,473$ Restricted - Cash and Cash Equivalents 4,787 135,021 Total Cash and Cash Equivalents 8,643,107$ 6,447,494$ CASITAS MUNICIPAL WATER DISTRICT STATEMENTS OF CASH FLOWS (CONTINUED) YEARS ENDED JUNE 30, 2025 AND 2024 See accompanying Notes to Basic Financial Statements. (26) 2025 2024 RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED USED BY OPERATING ACTIVITIES Operating Loss (6,448,398)$ (5,770,756)$ Adjustments to Reconcile Operating Loss to Net Cash Provided (Used) by Operating Activities: Depreciation and Amortization 4,322,963 4,229,659 State Water Project Water Sales to Other Agencies 1,000,000 1,375,000 State Water Project Expense (779,259) (979,475) Bond and Administrative Fees (36,501) (30,767) Adjudication Charges 566,470 571,394 Adjudication Costs (748,068) (144,448) Other, Net 2,343,665 249,608 Cancelled Prior Year Construction in Progress Balances 509,235 994,630 Change in Assets - (Increase) Decrease: Accounts Receivable (3,051,172) (229,427) Materials and Supplies Inventory 12,485 3,897 Prepaid Expenses 253,594 (32,926) Water-in-Storage Inventory 729,901 (4,951,793) Change in Deferred Outflows of Resources - (Increase) Decrease: OPEB Related Deferred Outflows of Resources 691,037 1,649,152 Pension Related Deferred Outflows of Resources 1,051,392 (100,977) Change in Liabilities - Increase (Decrease): Accounts Payable and Accrued Expenses 821,459 (444,216) Deposits 883,494 (234,883) Unearned Revenue 74,723 683,425 Compensated Absences 91,676 53,961 Claims Liability (92,675) 207,212 Net OPEB Liability 887,011 284,551 Net Pension Liabilities (21,396) 929,856 Change in Deferred Inflows of Resources - Increase (Decrease): OPEB Related Deferred Inflows of Resources (1,240,015) (1,263,220) Pension Related Deferred Inflows of Resources (66,915) (70,828) Total Adjustments 8,203,104 2,749,385 Net Cash Provided (Used) by Operating Activities 1,754,706$ (3,021,371)$ SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITY Change in Fair-Value of Investments 217,554$ 203,241$ Loss on Disposition of Capital Assets (4,540)$ (33,084)$ Capital Asset Purchases in Accounts Payable and Deposits 265,191$ 363,374$ Issuance of Notes Payable for Capital Asset Purchases -$ 49,752$ Issuance of Leases 203,537$ 112,515$ Issuance of SBITAs 93,680$ 256,115$ CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (27) NOTE 1 DESCRIPTION OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Description of the Organization Established in 1952, the Casitas Municipal Water District (the District) provides domestic and agricultural water to the western portion of Ventura County. The District is governed by a five-member board of directors who serve overlapping four-year terms. The District is the primary governmental unit based on the foundation of a separately elected governing board that is elected by the citizens in a general popular election. Component units are legally separate organizations for which the elected officials of the primary government are financially accountable. The District is financially accountable if it appoints a voting majority of the organization’s governing body and: 1) it is able to impose its will on that organization, or 2) there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government, or 3) the primary government holds a majority equity interest of an organization. The District has no component units. B. Basis of Presentation, Measurement Focus, and Basis of Accounting 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 (including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges. Measurement focus is a term used to describe which transactions are recorded within the various financial statements. Basis of accounting refers to when transactions are recorded regardless of the measurement focus applied. The accompanying financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Under the economic measurement focus all assets, deferred outflows of resources, liabilities, and deferred inflows of resources (whether current or noncurrent) associated with these activities are included in the statement of net position. The statement of revenues, expenses, and changes in net position present increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash flows take place. Nonexchange transactions, in which the District gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants, entitlements, and donations. Revenue from grants, entitlements, and donations is recognized in the year in which all eligibility requirements have been satisfied. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (28) NOTE 1 DESCRIPTION OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) B. Basis of Presentation, Measurement Focus, and Basis of Accounting (Continued) The District reports a measure of operations by presenting the change in net position from operations as operating income in the statement of revenues, expenses, and changes in net position. Operating revenues, such as charges for services (retail water sales, wholesale water sales, monthly water charge, recreation revenue, and other water charges and services), result from exchange transactions associated with the principal activity of the District. Nonoperating revenues, such as property taxes, assessments, investment earnings, adjudication charges, and other such items, result from nonexchange activities in which the District receives value without directly giving equal value in exchange. Operating expenses include the costs of providing water and related services (fisheries, engineering, water treatment, water quality, utilities maintenance, electrical mechanical, pipeline, operations maintenance and management, and change in water-in-storage inventory), general and administrative expenses, recreation expenses, depreciation on capital assets, and amortization on right-to-use leased assets and SBITAs. All expenses not meeting this definition are reported as nonoperating expenses. C. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position 1. Cash and Cash Equivalents For purposes of the statement of cash flows, the District considers all highly liquid investments with a maturity of 90 days or less, when purchased, to be cash equivalents. 2. Investments Investments are reported at fair value, which is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investments in governmental investment pools are reported at fair value based on the fair value per share of the pool’s underlying portfolio (in relation to the amortized cost of that portfolio). Changes in fair value that occur during a fiscal year are recognized as investment earnings reported for that fiscal year. Investment earnings includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation or sale of investments. In accordance with fair value measurements, the District categorizes its assets and liabilities measured at fair value into a three-level hierarchy based on the priority of the inputs to the valuation technique used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used in the determination of the fair value measurement fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (29) NOTE 1 DESCRIPTION OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position (Continued) 2. Investments (Continued) Financial assets and liabilities recorded on the balance sheet are categorized based on the inputs to the valuation techniques as follows: Level 1 – Inputs that reflect unadjusted quoted prices in active markets for identical investments, such as stocks, corporate and government bonds. The District has the ability to access the holding and quoted prices as of the measurement date. Level 2 – Inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly, including inputs from markets that are not considered to be active. Level 3 – Inputs that are unobservable. Unobservable inputs reflect the District’s own assumptions about the factors market participants would use in pricing an investment and is based on the best information available in the circumstances. 3. Receivables and Allowance for Doubtful Accounts Customer accounts receivable consist of amounts owed by private individuals and organizations for services rendered in the regular course of business operations. Receivables are shown net of allowances for doubtful accounts. Uncollectable accounts are based on prior experience and management’s assessment of the collectability of existing accounts. If balances are determined to be uncollectible, they are written off as bad debt expense. 4. Prepaids Certain payments of vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. 5. Customer Deposits Based on a customer’s creditworthiness, the District may require a deposit deemed reasonable by the District. These deposits are held to pay-off close out bills or to cover delinquent payments. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (30) NOTE 1 DESCRIPTION OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position (Continued) 6. Materials and Supplies Inventory Inventory consists primarily of materials and supplies used in the construction and maintenance of the water system and is stated at cost on a first-in, first-out basis. 7. Water-in-Storage Inventory Water-in-storage inventory consists of the water in Lake Casitas that flows from streams, rainfall, and diverted water. The value of water inventory is determined based upon the quantity of water in storage in Lake Casitas and the costs to divert the water into the lake on a first-in, first-out basis using the consumption method. A base year of June 30, 2011 was determined to have lake levels that equaled full capacity. In years when the lake level decreases, a reduction is made to inventory equal to the acre-foot reduction as a pro-rata portion of the base year inventory balance. In years when the lake level increases, the diversion costs are capitalized into inventory and tracked as additional values that can be used to relieve inventory once the base year costs have been exhausted. 8. Capital Assets Capital assets acquired and/or constructed are capitalized at historical cost. Contributed assets are recorded at acquisition value at date of donation. It is the District’s policy to capitalize assets costing over $5,000 and a useful life of more than one year. The District also records the value of the intangible right-to-use assets and subscription-based information technology arrangements (SBITA) based on the underlying leased asset and SBITA guidance in accordance with Governmental Accounting Standards Board (GASB) Statements No. 87, Leases, and No. 96, SBITAs. The right to use the intangible asset and SBITA are amortized over the lesser of term or useful life of the underlying asset. The provision for depreciation is computed using the straight-line method over the estimated service lives of the capital assets. Estimated service lives for the District’s classes of assets are as follows: Description Estimated Lives State Water Project Entitlement 72 Years Transmission and Distribution System 50 to 100 Years Pumping Plant 10 to 30 Years Water Treatment Plant 10 to 30 Years Buildings and Structures 10 to 30 Years Equipment 5 to 20 Years Fish Ladder 25 to 50 Years Recreation Assets 25 to 50 Years Alternate Swimming Facility 25 Years CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (31) NOTE 1 DESCRIPTION OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position (Continued) 9. Deferred Outflows/Inflows of Resources In addition to assets, the balance sheets reports a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net assets that applies to future periods and so will not be recognized as an outflow of resources (expense) until that time. The category of deferred outflow of resources reported in the balance sheets is related to a loss on refunding, pension, and other postemployment benefits. A deferred loss on refunding results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Deferred outflows on other postemployment benefits and pension are more fully discussed in Notes 11 and 12, respectively. In addition to liabilities, the balance sheets reports a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net assets that applies to future periods and will not be recognized as an inflow of resources (revenue) until that time. The District’s deferred inflows of resources reported on the balance sheets relate to other postemployment benefits and pension, which are more fully discussed in Notes 11 and 12, respectively. 10. Compensated Absences The District’s personnel policies provide for accumulation of vacation and sick leave (employee benefits). The liability for compensated absences consists of leave that has not been used that is attributable to services already rendered, accumulates and is more likely than not to be used for time off or otherwise paid in cash or settled through noncash means. The liability also includes amounts for leave that has been used for time off but has not yet been paid in cash or settled through noncash means and certain other types of leave. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (32) NOTE 1 DESCRIPTION OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position (Continued) 11. Pensions For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the District’s California Public Employees’ Retirement System (CalPERS) plans and addition to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 12. Postemployment Benefits Other Than Pensions (OPEB) For purposes of measuring the net OPEB liability, deferred outflows/inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the District’s OPEB plan and additions to/deductions from the plan’s fiduciary net position have been determined on the same basis as they are reported by the plan. For this purpose, the plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments and participating interest-earning investment contracts that have a maturity at the time of purchase of one year or less, which are reported at cost. 13. Net Position Net position is classified into three components: net investment in capital assets; restricted; and unrestricted. These classifications are defined as follows:  Net Investment in Capital Assets – This component of net position consists of capital assets, net of accumulated depreciation, capital assets, intangible assets – right to use leased assets and intangible assets – SBITAs, net of accumulated amortization and reduced by the outstanding balances of any bonds, mortgages, notes, leases payable, or other borrowings or payables that are attributable to the acquisition, construction, or improvement of those assets. If there are significant unspent related debt proceeds at year-end, the portion of the debt attributable to the unspent proceeds are not included in the calculation of net investment in capital assets. Rather, that portion of the debt is included in the same net position component as the unspent proceeds.  Restricted – This component of net position consists of constraints placed on net position use through external constraints imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or constraints imposed by law through constitutional provisions or enabling legislation. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (33) NOTE 1 DESCRIPTION OF ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) C. Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net Position (Continued) 13. Net Position (Continued)  Unrestricted – This component of net position consists of net position that does not meet the definition of “net investment in capital assets” or :restricted”. When both restricted and unrestricted resources are available for use, it is the District’s policy to use restricted resources first, then unrestricted resources as they are needed. D. Property Taxes and Assessments Property taxes are levied based on a fiscal year (July 1 – June 30) each year. The property tax assessments are formally due on November 1 and February 1, and become delinquent after December 10 and April 10, respectively. Taxes become a lien on the property effective January 1 of the preceding year. E. Capital Contributions Capital contributions represent federal, state, and local grants received for the construction of capital projects. F. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities, and deferred inflows of resources and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reported period. Actual results could differ from those estimates. G. State Water Project Participation Rights The District participates in the State Water Project (Project) entitling it to certain water rights. The District’s participation in the Project is through cash payments. Monies used for the construction of capital assets, such as pipelines, pumping facilities, storage facilities, etc., are recorded as State Water Project entitlement rights and amortized over the life of the agreements within capital assets. Certain projects also require payments for on-going maintenance; those payments are charged to expenses as incurred. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (34) NOTE 2 CASH AND INVESTMENTS Cash and investments were classified in the accompanying financial statements as follows: Description 2025 2024 Cash and Cash Equivalents 8,638,320$ 6,312,473$ Investments 11,023,796 9,684,841 Restricted - Cash and Cash Equivalents 4,787 135,021 Total 19,666,903$ 16,132,335$ June 30, Cash and investments consisted of the following: Description 2025 2024 Cash on Hand 6,800$ 6,800$ Demand Deposits Held in Financial Institutions 8,620,422 6,178,779 Other Cash and Cash Equivalents: Deposits in Money-Market Funds 7,123 123,091 Deposits in the Local Agency Investment Fund (LAIF) 540 516 Deposits in the Ventura County Pooled Investment Fund 3,435 3,287 Subtotal Cash and Cash Equivalents 8,638,320 6,312,473 Investments 11,023,796 9,684,841 Restricted - Investments with Fiscal Agent 4,787 135,021 Total 19,666,903$ 16,132,335$ June 30, Custodial Credit Risk – Deposits Custodial credit risk is the risk that in the event of a bank failure, the District’s deposits may not be returned to it. The District does not have a policy for custodial credit risk for deposits. Cash balances held in banks are insured up to $250,000 by the Federal Depository Insurance Corporation (FDIC) and are collateralized by the respective financial institutions. In addition, the California Government Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure public deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2025 and 2024, all of the District’s deposits with financial institutions were covered by federal depository insurance limits or were held in collateralized accounts. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (35) NOTE 2 CASH AND INVESTMENTS (CONTINUED) Authorized Investments and Investment Policy The table below identifies the investment types that are authorized for the District by the California Government Code (or District’s investment policy, where more restrictive). The table also identifies certain provisions of the California Government Code (or the District’s investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk. This table does not address the investments of debt proceeds held by bond trustees that are governed by the provisions of debt agreements of the District, rather than the general provisions of the California Government Code or the District’s investment policy. This table also does not address investments of the employer contributions to the OPEB trusts that are governed by the agreement between the District and the trustees, rather than the general provisions of the California Government Code or the District’s investment policy. Maximum Maximum Authorized Maximum Percentage Investment Investment Type Maturity of Portfolio in One Issuer U.S. Treasury Obligations 5-Years* None None Government Sponsored Entities Securities 5-Years* None None Non-Negotiable Certificates of Deposit 5-Years* 30% 10% Medium Term Notes 5-Years 30% 10% Money Market Mutual Funds 5-Years 20% 10% Municipal Bonds 5-Years None 10% Commercial Paper 270 days** 25%** 10% Bankers Acceptances 180 days** 40%** 10% Repurchase Agreements 1-Year** None 10% County Pooled Investment Funds None None None California Local Agency Investment Fund (LAIF) None 95% None Bonds Issued by the District 5-Years 95% None * The District’s investment policy for the fiscal year ended June 30, 2025 allows for a maximum maturity of five years. However, a previous investment policy allowed for a maximum maturity of ten years. The California Government Code limits the maturity to five years but allows the board express authority to make investments either specifically or as a part of an investment program approved by the board that exceeds this five-year maturity limit. Such approval must be issued no less than three months prior to the purchase of any security exceeding the five-year maturity limit. Some investments with a maturity in excess of five years were purchased under the previous investment policy and have not yet liquidated. ** The California Government Code is more restrictive than the District’s policy and is reflected in these line items. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (36) NOTE 2 CASH AND INVESTMENTS (CONTINUED) Money-Market Mutual Funds Money-market mutual funds are an investment whose objective is to earn modest investment earnings while maintaining a net asset value (NAV) of $1 per share (which is the funds main goal – preservation of principal). A money-market mutual fund’s portfolio is typically comprised of short-term, or less than one year, securities representing high-quality, liquid debt and monetary instruments with minimal credit risk. Money-market mutual funds are not subject to the fair value hierarchy. For financial reporting purposes, the District considers money market funds a cash equivalent due to their highly liquid nature and NAV of $1 per share. Ventura County Pooled Investment Fund (VCPIF) The District is a voluntary participant in the Ventura County Pooled Investment Fund (VCPIF) pursuant to Government Code Section 53694. The cash flow needs of participants are monitored daily to ensure that sufficient liquidity is maintained to meet the needs of those participants. At the time deposits are made, the Ventura County Treasurer may require the depositing entity to provide annual cash flow projections or an anticipated withdrawal schedule for deposits in excess of $1 million. Projections are performed no less than semi-annually. In accordance with Government Code Section 27136, all request for withdrawal of funds for the purpose of investing or deposits the funds elsewhere shall be evaluated to ensure the proposed withdrawal will not adversely affect the principal deposits of the other participants. Pool detail may be obtained from the County of Ventura Treasurer’s Office – 800 S. Victoria Ave., Ventura, California 93009 or the Treasurer and Tax Collector’s office website at www.ventura.org/ttc. VCPIF is not subject to the fair value hierarchy established by accounting principles generally accepted in the United States of America as it is held at an amortized cost basis, and it is not rated under the current credit risk ratings format. For financial reporting purposes, the District considers the VCPIF a cash equivalent due to its highly liquid nature and dollar-in dollar-out amortized cost methodology. Local Agency Investment Fund (LAIF) The California State Treasurer, through the Pooled Money Investment Account (PMIA), invests taxpayers’ money to manage the state’s cash flow and strengthen the financial security of local governmental entities. PMIA policy sets as primary investment objectives safety, liquidity, and yield. Through the PMIA, the Investment Division manages the Local Agency Investment Fund (LAIF). The LAIF allows cities, counties, and special districts to place money in a major portfolio and, at no additional costs to taxpayers, use the expertise of Investment Division staff. Participating agencies can withdraw their funds from the LAIF at any time as LAIF is highly liquid and carries a dollar-in dollar-out amortized cost methodology. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (37) NOTE 2 CASH AND INVESTMENTS (CONTINUED) Local Agency Investment Fund (LAIF) (Continued) The District is a voluntary participant in LAIF. The fair value of the District’s investment in this pool is reported at an amount based upon the District’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of the of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF. LAIF is not subject to the fair value hierarchy established by accounting principles generally accepted in the United States of America as it is held at an amortized cost basis, and it is Not Rated under the current credit risk ratings format. For financial reporting purposes, the District considers LAIF a cash equivalent due to its highly liquid nature and dollar-in dollar-out amortized cost methodology. Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the fair values of investments with longer maturities have greater sensitivity to changes in market interest rates. One of the ways the District manages its exposure to interest rate risk is by purchasing a combination of shorter-term and longer- term investments and by timing cash flows from maturities to that a portion of the portfolio is maturing or coming close to maturity as necessary to provide the cash flow and liquidity needed for operations. The District has elected to use the segmented time distribution method of disclosure for the maturities of its investments as related to interest rate risk. Information about the sensitivity of the fair values of the District’s investments (including investments held by bond trustee) to market interest rate fluctuations is provided by the following tables that show the distribution of the District’s investments by maturity. The District’s investments as of June 30, 2025 were as follows: Measurement Credit 12 Months or 13 to 24 25 to 120 Type of Investments Input Rating Fair Value Less Months Months U.S. Treasury Obligations Level 2 AA 5,034,628$ 3,574,293$ 1,460,335$ -$ Government Sponsored Agency Securities Level 2 AA 5,989,171 4,182,043 861,076 946,052 Local Agency Investment Fund (LAIF) N/A N/A 540 540 - - Ventura County Pooled Investment Fund (VCPIF) N/A N/A 3,435 3,435 - - Money Market Mutual Funds N/A Not Rated 7,123 7,123 - - Restricted - Investments with Fiscal Agent: Money Market Mutual Funds N/A AAA 4,787 4,787 - - Total 11,039,684$ 7,772,221$ 2,321,411$ 946,052$ CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (38) NOTE 2 CASH AND INVESTMENTS (CONTINUED) Interest Rate Risk (Continued) The District’s investments as of June 30, 2024 were as follows: Measurement Credit 12 Months or 13 to 24 25 to 120 Type of Investments Input Rating Fair Value Less Months Months U.S. Treasury Obligations Level 2 AA 2,446,474$ 2,446,474$ -$ -$ Government Sponsored Agency Securities Level 2 AA 7,238,367 1,387,634 4,084,973 1,765,760 Local Agency Investment Fund (LAIF) N/A N/A 516 516 - - Ventura County Pooled Investment Fund (VCPIF) N/A N/A 3,287 3,287 - - Money Market Mutual Funds N/A Not Rated 123,091 123,091 - - Restricted - Investments with Fiscal Agent: Money Market Mutual Funds N/A AAA 135,021 135,021 - - Total 9,946,756$ 4,096,023$ 4,084,973$ 1,765,760$ Fair Value Measurement Input The District categorizes its fair value measurement inputs within the fair value hierarchy established by accounting principles generally accepted in the United States of America. The District has presented its measurement inputs as noted in the previous table. U.S. treasury obligations and government sponsored agency securities are classified in Level 2 of the fair value hierarchy and are valued using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. Custodial Credit Risk – Investments The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The Code and the District’s investment policy contain legal and policy requirements that would limit the exposure to custodial credit risk for investments. With respect to investments, custodial credit risk generally applies only to direct investments in marketable securities. Custodial credit risk does not apply to a local government’s indirect investment in securities through the use of mutual funds or government investment pools (such as LAIF and VCPIF). Credit Risk – Investments Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The District’s investments in U.S. Treasury obligations and government sponsored agency securities are rated AA by Standard & Poor’s as of June 30, 2025 and 2024. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (39) NOTE 2 CASH AND INVESTMENTS (CONTINUED) Concentration of Credit Risk The District’s investment policy contains no limitations on the amount that can be invested in any one governmental agency or nongovernmental issuer beyond that stipulated by the California Government Code. The following investments in any one governmental or nongovernmental issuer represented 5% or more of the District’s total investments: Description Percentage Balance U.S. Treasury Obligations 46 % 5,034,628$ Government Sponsored Agency Securities: Federal Agricultural Mortgage Corporation (FAMC) 4 487,535 Federal Home Loan Banks (FHLB) 9 999,590 Federal National Mortgage Association (FNMA) 22 2,460,875 Federal Farm Credit Bank (FFCB) 18 2,041,171 June 30, 2025 Description Percentage Balance U.S. Treasury Obligations 25 % 2,446,474$ Government Sponsored Agency Securities: Federal Agricultural Mortgage Corporation (FAMC) 5 473,040 Federal Home Loan Banks (FHLB) 10 977,670 Federal National Mortgage Association (FNMA) 38 3,773,359 Federal Farm Credit Bank (FFCB) 21 2,014,298 June 30, 2024 NOTE 3 RESTRICTED ASSETS Restricted assets (restricted for debt service) as of June 30, were classified on the balance sheets as follows: Description 2025 2024 Restricted - Cash and Cash Equivalents 4,787$ 135,021$ CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (40) NOTE 4 ACCOUNTS RECEIVABLE The balance at June 30, consists of the following: Description 2025 2024 Accounts Receivable - Customers 3,409,839$ 2,618,413$ Allowance for Doubtful Accounts (83,421) (121,045) Accounts Receivable - Others 2,805,363 546,028 Accounts Receivable - Property Taxes 133,008 134,548 Accounts Receivable - CFD 2013-1 Assessment 93,821 131,034 Total 6,358,610$ 3,308,978$ NOTE 5 WATER-IN-STORAGE INVENTORY The following schedule notes the change in the cost of the water held-in storage in Casitas Lake. The increase or decrease in the water storage valuation balance denotes a way of accounting for water diversion expenses as explained in Note 1 in future years when the water in the lake is transmitted to the District’s customers. Changes in water-in-storage inventory for the years ended June 30, were as follows: Description 2025 2024 Beginning Balance - Water-in-Storage 15,198,908$ 10,247,115$ Current Year Change in Water-in-Storage (729,901) 4,951,793 Ending Balance - Water-in-Storage 14,469,007$ 15,198,908$ CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (41) NOTE 6 CAPITAL ASSETS AND DEPRECIATION Changes in capital assets for the fiscal year ended June 30, 2025 were as follows: Balance Description July 1, 2024 Additions Transfers Transfers June 30, 2025 Nondepreciable Assets: Land 7,797,935$ -$ -$ -$ 7,797,935$ Easements 393,408 - - - 393,408 Construction-in-Process 5,323,040 2,978,755 (313,192) (491,821) 7,496,782 Total Nondepreciable Assets 13,514,383 2,978,755 (313,192) (491,821) 15,688,125 Depreciable Assets: State Water Project Entitlement 3,662,964 132,518 - - 3,795,482 Transmission and Distribution System 74,566,136 503,061 285,173 - 75,354,370 Pumping Plant 24,409,553 - - - 24,409,553 Water Treatment Plant 30,198,141 56,604 16,109 (16,541) 30,254,313 Buildings and Structures 8,692,893 - - - 8,692,893 Equipment 8,290,814 561,982 11,910 (285,127) 8,579,579 Fish Ladder 9,417,731 - - - 9,417,731 Recreation Assets 8,987,241 294,390 - - 9,281,631 Alternate Swimming Facility 4,915,173 - - - 4,915,173 Total Depreciable Assets 173,140,646 1,548,555 313,192 (301,668) 174,700,725 Accumulated Depreciation: State Water Project Entitlement (2,601,478) (106,870) - - (2,708,348) Transmission and Distribution System (25,159,262) (882,518) - - (26,041,780) Pumping Plant (12,600,061) (641,689) - - (13,241,750) Water Treatment Plant (24,908,491) (784,748) - 16,541 (25,676,698) Buildings and Structures (2,636,749) (278,331) - - (2,915,080) Equipment (7,736,058) (416,106) - 285,127 (7,867,037) Fish Ladder (8,072,585) (337,433) - - (8,410,018) Recreation Assets (6,390,302) (233,111) - - (6,623,413) Alternate Swimming Facility (2,133,398) (245,102) - - (2,378,500) Total Accumulated Depreciation (92,238,384) (3,925,908) - 301,668 (95,862,624) Total Depreciable Assets, Net 80,902,262 (2,377,353) 313,192 - 78,838,101 Amortized Assets: Intangible Asset - Right-to-Use: Lease Asset - Vehicles 649,433 203,537 - - 852,970 SBITA 940,523 101,545 - (24,913) 1,017,155 Total Amortized Assets 1,589,956 305,082 - (24,913) 1,870,125 Accumulated Amortization: Intangible Asset - Right-to-Use: Lease Asset - Vehicles (202,217) (147,758) - - (349,975) SBITA (412,505) (254,319) - 2,959 (663,865) Total Accumulated Amortization (614,722) (402,077) - 2,959 (1,013,840) Total Amortized Assets, Net 975,234 (96,995) - (21,954) 856,285 Total Capital Assets, Net 95,391,879$ 504,407$ -$ (513,775)$ 95,382,511$ CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (42) NOTE 6 CAPITAL ASSETS AND DEPRECIATION (CONTINUED) Changes in capital assets for the fiscal year ended June 30, 2024 were as follows: Balance Deletions/ Deletions/ Balance Description July 1, 2023 Additions Transfers Transfers June 30, 2024 Nondepreciable Assets: Land 7,797,935$ -$ -$ -$ 7,797,935$ Easements 393,408 - - - 393,408 Construction-in-Process 9,687,636 1,925,587 (5,328,637) (961,546) 5,323,040 Total Nondepreciable Assets 17,878,979 1,925,587 (5,328,637) (961,546) 13,514,383 Depreciable Assets: State Water Project Entitlement 3,549,740 113,224 - - 3,662,964 Transmission and Distribution System 69,215,712 1,670,967 3,679,457 - 74,566,136 Pumping Plant 24,241,457 20,077 148,019 - 24,409,553 Water Treatment Plant 30,198,141 - - - 30,198,141 Buildings and Structures 7,182,156 24,646 1,486,091 - 8,692,893 Equipment 8,226,110 145,141 15,070 (95,507) 8,290,814 Fish Ladder 9,417,731 - - - 9,417,731 Recreation Assets 8,772,980 214,261 - - 8,987,241 Alternate Swimming Facility 4,847,715 67,458 - - 4,915,173 Total Depreciable Assets 165,651,742 2,255,774 5,328,637 (95,507) 173,140,646 Accumulated Depreciation: State Water Project Entitlement (2,506,820) (94,658) - - (2,601,478) Transmission and Distribution System (24,284,625) (874,637) - - (25,159,262) Pumping Plant (11,954,591) (645,470) - - (12,600,061) Water Treatment Plant (24,118,897) (789,594) - - (24,908,491) Buildings and Structures (2,357,445) (279,304) - - (2,636,749) Equipment (7,412,859) (418,706) - 95,507 (7,736,058) Fish Ladder (7,735,152) (337,433) - - (8,072,585) Recreation Assets (6,196,068) (194,234) - - (6,390,302) Alternate Swimming Facility (1,888,296) (245,102) - - (2,133,398) Total Accumulated Depreciation (88,454,753) (3,879,138) - 95,507 (92,238,384) Total Depreciable Assets, Net 77,196,989 (1,623,364) 5,328,637 - 80,902,262 Amortized Assets: Intangible Asset - Right-to-Use: Lease Asset - Vehicles 520,882 128,551 - - 649,433 SBITA 758,670 263,030 - (81,177) 940,523 Total Amortized Assets 1,279,552 391,581 - (81,177) 1,589,956 Accumulated Amortization: Intangible Asset - Right-to-Use: Lease Asset - Vehicles (76,073) (126,144) - - (202,217) SBITA (229,433) (224,377) - 41,305 (412,505) Total Accumulated Amortization (305,506) (350,521) - 41,305 (614,722) Total Amortized Assets, Net 974,046 41,060 - (39,872) 975,234 Total Capital Assets, Net 96,050,014$ 343,283$ -$ (1,001,418)$ 95,391,879$ CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (43) NOTE 6 CAPITAL ASSETS AND DEPRECIATION (CONTINUED) State Water Project Entitlement In 1963, the Ventura County Flood Control District contracted with the state of California (State) for 20,000 acre-feet per year of water from the State Water Project (SWP). The SWP conveys water from Northern California to Southern California through a system of reservoirs, canals, pump stations, and power generation facilities. In 1971, the administration of the State Water Contract with the state was assigned to the District. Of the 20,000 acre-feet per year contracted, the District is assigned 5,000 acre-feet per year. United Water Conservation District is assigned 5,000 acre-feet per year, and the City of Ventura is assigned 10,000 acre-feet per year. Currently, only United Water Conservation District is receiving water from the SWP. The District is one of many participants contracting with the state of California for a system to provide water throughout California. Under the terms of the State Water Contract, as amended, the District is obliged to pay allocable portions of the cost of construction of the system and ongoing operations and maintenance costs through at least the year 2035, regardless of the quantities of water available from the project. The District and the other contractors may also be responsible to the state for certain obligations by any contractor who defaults on its payments to the state. The District exercised its option to extend the contractual period to 2085 under substantially comparable terms. This corresponds to an estimated 80-year service life for the original facilities. The state is obligated to provide specific quantities of water throughout the life of the contract, subject to certain conditions. In addition to system on-aqueduct power facilities, the state has, either on its own or through joint venture, financed certain off-aqueduct power facilities (OAPF). The power generated is utilized by the system for water transportation purposes. Power generated in excess of system needs is marketed to various utilities and California’s power market. The District is entitled to a proportionate share of the revenues resulting from sales of excess power. The District and the other water contractors are responsible for repaying the capital and operating costs of the OAPF regardless of the amount of power generated. The District capitalized its share of system construction costs as participation rights in state water facilities when such costs are billed by the state. Unamortized participation rights essentially represent a prepayment for future water deliveries through the state system. The District’s share of system operations and maintenance costs is charged to expense. The District amortizes a portion of capitalized participation rights each year using a formula that considers the total estimated cost of the project, estimated useful life and estimated production capacity of the assets based upon information provided by the state of California. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (44) NOTE 7 COMPENSATED ABSENCES Summary changes to compensated absences balances for the year ended June 30, 2025 were as follows: Balance Balance Due Within Due in More July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year 1,698,614$ 91,676$ (2) -$ 1,790,290$ 716,117$ 1,074,173$ Summary changes to compensated absences balances for the year ended June 30, 2024 were as follows: Balance Balance Due Within Due in More July 1, 2023 (1) Additions Deletions June 30, 2024 One Year Than One Year 1,664,648$ 33,966$ (2) -$ 1,698,614$ 679,447$ 1,019,167$ (1) The beginning balance was restated due to the implementation of GASB Statement No. 101, See Note 18. (2) The change in the compensated absence liability is presented as a net change. NOTE 8 LEASES The District leases equipment (vehicles) under long-term noncancelable lease agreements. The leases expire at various times through 2030 and do not provide for renewal options. The interest rates range from 4.48% to 8.35% and there are no variable payments. The following are the lease liabilities as of June 30, 2025 and 2024: Balance Balance Due Within Due in More July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year 399,271$ 203,537$ (118,897)$ 483,911$ 148,273$ 335,638$ Balance Balance Due Within Due in More July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Year 381,659$ 112,515$ (94,903)$ 399,271$ 104,802$ 294,469$ Total future principal and interest payments under lease agreements are as follows: Fiscal Year Ending June 30,Principal Interest 2026 148,273$ 31,397$ 2027 156,921 20,222 2028 99,739 9,863 2029 50,940 4,224 2030 28,038 736 Total 483,911$ 66,442$ CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (45) NOTE 9 SUBSCRIPTION-BASED INFORMATION TECHNOLOGY ARRANGEMENTS The District has entered into subscription based-information technology arrangements (SBITAs) for various software, cloud services, and online system subscriptions. The SBITA arrangements expire at various dates through 2029, are calculated at interest rates of 3.21%, and provide for renewal options. The following are the SBITA liabilities as of June 30, 2025 and 2024: Balance Balance Due Within Due in More July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year 491,677$ 93,680$ (268,716)$ 316,641$ 239,250$ 77,391$ Balance Balance Due Within Due in More July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Year 468,132$ 256,115$ (232,570)$ 491,677$ 234,125$ 257,552$ SBITA assets and the related accumulated amortization totaled $353,290 and $528,018, for the fiscal years ended June 30, 2025 and 2024, respectively. See more details of these balances in Note 6, Capital Assets and Depreciation. The future principal and interest payments under SBITA agreements are as follows: Fiscal Year Ending June 30,Principal Interest 2026 239,250$ 9,031$ 2027 38,594 2,173 2028 25,657 943 2029 13,140 160 Total 316,641$ 12,398$ CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (46) NOTE 10 LONG-TERM DEBT Changes in long-term debt for the year ended June 30, 2025 were as follows: Balance Balance Due Within Due in More Long-Term Debt July 1, 2024 Additions Deletions June 30, 2025 One Year Than One Year Direct Borrowing: Loans Payable 2,396,878$ -$ (248,141)$ 2,148,737$ 256,523$ 1,892,214$ Notes Payable 199,319 - (63,009) 136,310 64,134 72,176 Other Debt: Special Tax Bonds: 2017 Series B 38,220,000 - (455,000) 37,765,000 520,000 37,245,000 2017 Series B Premium 3,237,439 - (139,746) 3,097,693 - 3,097,693 2019 Series C 11,710,000 - (160,000) 11,550,000 175,000 11,375,000 2019 Series C Premium 1,428,952 - (61,681) 1,367,271 - 1,367,271 Reimbursement Agreement 2,162,388 - (77,228) 2,085,160 77,228 2,007,932 Total Long-Term Debt 59,354,976$ -$ (1,204,805)$ 58,150,171$ 1,092,885$ 57,057,286$ Changes in long-term debt for the year ended June 30, 2024 were as follows: Balance Balance Due Within Due in More Long-Term Debt July 1, 2023 Additions Deletions June 30, 2024 One Year Than One Year Direct Borrowing: Loans Payable 2,636,911$ -$ (240,033)$ 2,396,878$ 248,141$ 2,148,737$ Notes Payable 251,255 49,752 (101,688) 199,319 63,008 136,311 Other Debt: Special Tax Bonds: 2017 Series B 38,615,000 - (395,000) 38,220,000 455,000 37,765,000 2017 Series B Premium 3,377,184 - (139,745) 3,237,439 - 3,237,439 2019 Series C 11,850,000 - (140,000) 11,710,000 160,000 11,550,000 2019 Series C Premium 1,490,634 - (61,682) 1,428,952 - 1,428,952 Reimbursement Agreement 2,239,616 - (77,228) 2,162,388 77,228 2,085,160 Total Long-Term Debt 60,460,600$ 49,752$ (1,155,376)$ 59,354,976$ 1,003,377$ 58,351,599$ A. Loans Payable 2022 Loan Payable On July 20, 2022, the District obtained financing in the amount of $2,751,200 that matures on August 1, 2032. The loan was issued for the replacement of the aquatic play structure and regenerative media filtration system for the Casitas Water Adventure at the Lake Casitas Recreation Area. Interest Is calculated at 3.35% per annum and annual payments equal $326,375. The District shall fix, prescribe, and collect rates, fees, and charges during each fiscal year which are sufficient to yield net revenues and taxes which are at least equal to 110% of the aggregate amount of the installment payments and debt service on all parity obligations coming due and payable in such fiscal year. The District is in compliance with this requirement for the fiscal year ended June 30, 2025. The District's net revenues and taxes are pledged and assigned to repayment of the note. See additional details in Note 10F. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (47) NOTE 10 LONG-TERM DEBT (CONTINUED) A. Loans Payable (Continued) 2022 Loan Payable (Continued) Annual debt service requirements are as follows: Fiscal Year Ending June 30,Principal Interest Total 2026 256,523$ 69,852$ 326,375$ 2027 265,189 61,187 326,376 2028 274,147 52,228 326,375 2029 283,408 42,968 326,376 2030 292,982 33,394 326,376 2031-2033 776,488 39,451 815,939 Total 2,148,737$ 299,080$ 2,447,817$ B. Notes Payable The District has financed the purchase of certain equipment for various terms under long-term financing agreements, which expire at various dates through 2028. Interest rates range from 3.35% to 3.75%. Annual debt service requirements are as follows: Fiscal Year Ending June 30,Principal Interest Total 2026 64,134$ 7,240$ 71,374$ 2027 36,381 3,855 40,236 2028 24,379 1,759 26,138 2029 11,416 624 12,040 Total 136,310$ 13,478$ 149,788$ C. 2017 Special Tax Bonds In 2013, registered voters within Community Facilities District 2013-1 authorized the District to incur bonded indebtedness in the aggregate principal amount not to exceed $60,000,000. In April 2017, the District issued $39,910,000 in 2017 Special Tax Bonds- Series A and B for the purchase of the Ojai water facilities in Community Facilities District 2013-1 (CFD 2013-1) for $34.4 million and capital improvements needed to upgrade the water facilities. The Special Tax Bonds were issued by the District under the provisions of the Mello-Roos Community Facilities Act of 1982, as amended. A special assessment is levied annually on the property owners of the CFD 2013-1 service area to repay their portion of the annual debt service for the acquisition of the water facilities. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (48) NOTE 10 LONG-TERM DEBT (CONTINUED) C. 2017 Special Tax Bonds (Continued) The acquisition of CFD 2013-1 water facilities for $34.4 million included capital assets of $25.9 million and various other assets, liabilities, and expenses totaling $4.4 million leaving $4,100,000 as a deferred loss on the acquisition of CFD 2013-1 that is being amortized over 30 years. The balance of this deferred loss, net of accumulated amortization is $2,453,301 and $2,659,172 as of June 30, 2025 and 2024, respectively. The 2017 Special Tax Bonds are secured by a pledge and lien of the special taxes levy on the taxable property within the District. See Note 10 F. for details. The special tax bonds are scheduled to mature on September 1, 2047 with annual principal and interest payments due September 1 and March 1. Annual interest rates range between 2.0% and 5.25%. The special tax bonds were issued with a $4,227,203 bond premium and a prepaid Build America Mutual municipal bond insurance policy with a cost of $472,314, both of which will be amortized over the remaining years of debt service life. Annual debt service requirements on the special tax bonds are as follows: Fiscal Year Ending June 30,Principal Interest Total 2026 520,000$ 1,757,888$ 2,277,888$ 2027 585,000 1,735,788 2,320,788 2028 655,000 1,707,713 2,362,713 2029 735,000 1,672,963 2,407,963 2030 820,000 1,634,088 2,454,088 2031-2035 5,460,000 7,585,200 13,045,200 2036-2040 7,955,000 6,394,981 14,349,981 2041-2045 11,670,000 4,058,106 15,728,106 2046-2048 9,365,000 759,281 10,124,281 Total 37,765,000$ 27,306,008$ 65,071,008$ D. 2019 Special Tax Bonds In October 2019, the District issued $12,265,000 in Special Tax Bonds for capital improvements to the Ojai water facilities serving property within Community Facilities District 2013-1 (CFD 2013-1). The Special Tax Bonds are being issued by the District under the provisions of the Mello-Roos Community Facilities Act of 1982, as amended. A special assessment will be levied annually on the property owners of the CFD 2013-1 service area to repay their portion of the annual debt service for the acquisition of the water facilities. The 2019 Special Tax Bonds are secured by a pledge and lien of the special taxes levy on the taxable property within the District. See Note 10F for details. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (49) NOTE 10 LONG-TERM DEBT (CONTINUED) D. 2019 Special Tax Bonds (Continued) The Special Tax Bonds are scheduled to mature on September 1, 2047 with annual principal and interest payments due September 1 and March 1. Annual interest rates range between 3.0% and 5.0%. The Special Tax Bonds were issued with a $1,711,659 bond premium and a prepaid Build America Mutual municipal bond insurance policy for $128,405 both of which will be amortized over the remaining years of debt service life. The cost of debt issuance was $323,870 and was expensed as incurred. Annual debt service requirements on the special tax bonds are as follows: Fiscal Year Ending June 30,Principal Interest Total 2026 175,000$ 472,325$ 647,325$ 2027 195,000 465,800 660,800 2028 215,000 457,600 672,600 2029 235,000 447,425 682,425 2030 260,000 435,050 695,050 2031-2035 1,715,000 1,980,225 3,695,225 2036-2040 2,500,000 1,565,000 4,065,000 2041-2045 3,510,000 967,800 4,477,800 2046-2048 2,745,000 186,400 2,931,400 Total 11,550,000$ 6,977,625$ 18,527,625$ E. Casitas Dam Project-Seismic Safety of Casitas Dam Reimbursement Agreement The United States Bureau of Reclamation (USBR) has undertaken and completed a project to strengthen Casitas Dam to better withstand seismic activity. Under federal law, the District is required to pay 15% of those costs. The District and the USBR have completed negotiations on the District’s share of the cost of the project which is $3,011,898. The District is to reimburse the USBR $77,228 each February 1 until February 1, 2052 as follows: Fiscal Year Ending June 30,Amount 2026 77,228$ 2027 77,228 2028 77,228 2029 77,228 2030 77,228 2031-2035 386,140 2036-2040 386,140 2041-2045 386,140 2046-2050 386,140 2051-2052 154,460 Total 2,085,160 Less: Current Portion (77,228) Total Noncurrent 2,007,932$ CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (50) NOTE 10 LONG-TERM DEBT (CONTINUED) F. Pledged Revenue The 2017 and 2019 Special Tax Bonds are secured by a pledge and lien of the special taxes levy on the taxable property within the District. The special taxes collected, debt services payments, and percentage of revenue collected over debt services payments for the years ended June 30, 2025 and 2024 are as follows: 2025 2024 CFD 2013-1 Assessment Revenue 3,057,126$ 2,963,060$ Special Tax Bonds - 2017 Series B Debt Service Payment 2,232,388$ 2,189,388$ Special Tax Bonds - 2019 Series C Debt Service Payment 637,350 621,850 Total Debt Service Payments Supported by Assessment 2,869,738$ 2,811,238$ Percentage of Revenue Collected Over Debt Service Payments 107% 105% The 2022 loan payable is secured by a pledge and lien of all net revenues and taxes of the District. The amounts pledged are as follows: 2025 2024 Net Water Revenues 3,090,647$ 4,059,918$ Taxes - - Total Pledged Net Revenues 3,090,647$ 4,059,918$ Total Debt Service Payments Supported by Net Revenues 326,376$ 326,376$ Percentage of Revenue Collected Over Debt Service Payments 947% 1244% NOTE 11 NET OTHER POSTEMPLOYMENT BENEFITS (OPEB) LIABILITY Summary The following balances on the balance sheets will be addressed in this footnote as follows: Description 2025 2024 OPEB Related Deferred Outflows of Resources 3,920,574$ 4,611,611$ Net OPEB Liability 12,063,469 11,176,458 OPEB Related Deferred Inflows of Resources 9,188,629 10,428,644 CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (51) NOTE 11 NET OTHER POSTEMPLOYMENT BENEFITS (OPEB) LIABILITY (CONTINUED) Plan Description – Eligibility The District, through an agent multiemployer defined benefit plan (the Plan), provides postemployment healthcare benefits to retirees managed through California Employers’ Retiree Benefit Trust (CERBT). The following requirements must be satisfied in order to be eligible for postemployment medical benefits: (1) Attainment of age 60, and 20 years of full- time service, and (2) retirement from the District (the District must be the last employer prior to retirement). Plan Description – Benefits The District offers postemployment medical benefits to retired employees who satisfy the eligibility rules. Retirees may enroll in any plan available through the ACWA-JPIA medical program. The benefits provided and contribution requirements of plan members and the District are established and may be amended by the board of directors. The following is a description of the current retiree benefit plan: Description Participants Benefit Types Provided Secondary to Medicare - Medical, Dental, and Vision Benefit Types not Covered Medicare Part B Duration of Benefits Lifetime Required Service 20 Years Service Minimum Age 60 Years Old and CalPERS Retirement from District Dependent Coverage Surviving Spouse may Participate District Contribution 100% of the Least Cost of Plans That are Offered to District employees Employees Covered by Benefit Terms At June 30, 2024 and 2023 (measurement dates), the following employees were covered by the benefit terms: Description 2024 2023 Inactive Plan Members or Beneficiaries Currently Receiving Benefit Payments 35 35 Active Plan Members 75 76 Total 110 111 CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (52) NOTE 11 NET OTHER POSTEMPLOYMENT BENEFITS (OPEB) LIABILITY (CONTINUED) Contributions Contribution requirements are established by District policy and may be amended by the board of directors. The annual contribution is based on the actuarially determined contribution; however, the District typically contributes based on the pay-as-you-go costs. For the fiscal year ended June 30, 2025, the District made no contributions to the OPEB trust, made payments totaling $384,893 for retiree health care insurance, made no payments for administrative expenses paid outside of the trust, and the implied subsidy was $226,071, resulting in payments of $610,964. For the fiscal year ended June 30, 2024, the District made no contributions to the OPEB trust, made payments totaling $355,493 for retiree health care insurance benefits of which $294,486 was reimbursed by the OPEB trust, made no payments for administrative expenses paid outside of the trust, and the implied subsidy was $163,110, resulting in payments of $224,117. A. Net OPEB Liability The District’s net OPEB liability for the fiscal year ended June 30, 2025, was measured as of June 30, 2024 (measurement date), and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2024. The District’s net OPEB liability for the fiscal year ended June 30, 2024, was measured as of June 30, 2023 (measurement date), and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023, using standard update procedures. Actuarial Assumptions and Other Inputs The total net OPEB liability in the June 30, 2024 and 2023 (measurement dates) actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: June 30, June 30, Measurement Date 2024 2023 Discount Rate 4.27 % 4.22 % Inflation 2.50 2.50 Salary Increases 2.75 2.75 Investment Rate of Return 5.25 5.25 Healthcare Cost Trend Rates (1) (2) Mortality, Retirement, Disability, and Termination (3) (3) Mortality Improvement (4) (4) (1) Non-Medicare: 7.9% for 2026 Decreasing to 3.45% in 2076; Medicare (Kaiser): 5.65% for 2026 Decreasing to 3.45% in 2076 Medicare (Other): 6.90% for 2026 Decreasing to 3.45% in 2076 (2) Non-Medicare: 8.5% for 2024 Decreasing to 3.45% in 2076; Medicare (Kaiser): 7.5% for 2024 Decreasing to 3.45% in 2076 Medicare (Other): 6.25% for 2024 Decreasing to 3.45% in 2076 (3) Based on CalPERS 2000-2019 Experience Study. (4) Postretirement Mortality Projected Fully Generational With Scale MP-20201 CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (53) NOTE 11 NET OTHER POSTEMPLOYMENT BENEFITS (OPEB) LIABILITY (CONTINUED) A. Net OPEB Liability (Continued) Long-Term Expected Rate of Return The long-term expected rate of return was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plan’s target asset allocations with CERBT as of June 30, 2024 and 2023 measurement dates are summarized in the following tables: Measurement period ended June 30, 2024: Target Allocation CERBT - Expected Real Strategy 3 Rate of Return Global Equity 23.00 % 4.56 % Fixed Income 51.00 1.56 TIPS 9.00 (0.08) Commodities 3.00 1.22 REITS 14.00 4.06 Assumed Long-Term Rate of Inflation 2.50 Expected Long-Term Net Rate of Return, Rounded 5.25 Measurement period ended June 30, 2023: Target Allocation CERBT - Expected Real Strategy 3 Rate of Return Global Equity 23.00 % 4.56 % Fixed Income 51.00 1.56 TIPS 9.00 (0.08) Commodities 3.00 1.22 REITS 14.00 4.06 Assumed Long-Term Rate of Inflation 2.50 Expected Long-Term Net Rate of Return, Rounded 5.25 Discount Rate GASB 75 requires a discount rate that reflects the following: a) The long-term expected rate of return on OPEB plan investments—to the extent that the OPEB plan’s fiduciary net position is projected to be sufficient to make projected benefit payments and assets are expected to be invested using a strategy to achieve that return; b) A yield or index rate for 20-year, tax-exempt general obligation municipal bonds with an average rating of AA/Aa or higher—to the extent that the conditions in (a) are not met. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (54) NOTE 11 NET OTHER POSTEMPLOYMENT BENEFITS (OPEB) LIABILITY (CONTINUED) A. Net OPEB Liability (Continued) Discount Rate – Measurement Period Ended June 30, 2024 The blended discount rate used to measure the total OPEB liability was 4.27% as of the measurement period ended June 30, 2024. The projection of cash flows used to determine the discount rate assumed that the District would make contributions based on expected pay-go costs less normal costs for future new members and that additional contributions to the trust were unlikely. Based on those assumptions, the plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries through 2045, the crossover date. At the crossover date of 2045, the plan’s fiduciary net position is not projected to be available to make required payments and, therefore, the Bond Buyer 20-Bond GO Index rate of 3.93% was applied from this date forward. Discount Rate – Measurement Period Ended June 30, 2023 The blended discount rate used to measure the total OPEB liability was 4.22% as of the measurement period ended June 30, 2023. The projection of cash flows used to determine the discount rate assumed that the District would make contributions based on expected pay-go costs less normal costs for future new members and that additional contributions to the trust were unlikely. Based on those assumptions, the plan’s fiduciary net position was projected to be available to make all projected OPEB payments for current active and inactive employees and beneficiaries through 2051, the crossover date. At the crossover date of 2051, the plan’s fiduciary net position is not projected to be available to make required payments and, therefore, the Bond Buyer 20-Bond GO Index rate of 3.65% was applied from this date forward. Changes of Assumptions The following changes in assumptions were noted from the measurement period ended June 30, 2023 to June 30, 2024:  The discount rate was updated from 4.22% to 4.27%. The following changes in assumptions were noted from the measurement period ended June 30, 2021 to June 30, 2022:  The discount rate was updated from 4.19% to 4.22%. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (55) NOTE 11 NET OTHER POSTEMPLOYMENT BENEFITS (OPEB) LIABILITY (CONTINUED) A. Net OPEB Liability (Continued) Changes of Benefit Terms There were no changes of benefit terms. B. Changes in the Net OPEB Liability The changes in the net OPEB liability are as follows for the June 30, 2024 measurement date: Total Plan Fiduciary Net OPEB Liability Net Position OPEB Liability Balance at June 30, 2023 (Measurement Date) 12,637,985$ 1,461,527$ 11,176,458$ Changes for the Year: Service Cost 343,541 - 343,541 Interest on the Net OPEB Liability 537,004 - 537,004 Changes in Assumptions (82,052) - (82,052) Differences Between Actual and Expected Experience 398,667 - 398,667 Employer Contributions - 224,117 (224,117) Net Investment Income - 86,485 (86,485) Administrative Expenses - (453) 453 Benefit Payments (515,603) (515,603) - Net Changes 681,557 (205,454) 887,011 Balance at June 30, 2024 (Measurement Date) 13,319,542$ 1,256,073$ 12,063,469$ The changes in the net OPEB liability are as follows for the June 30, 2023 measurement date: Total Plan Fiduciary Net OPEB Liability Net Position OPEB Liability Balance at June 30, 2022 (Measurement Date) 12,331,104$ 1,439,197$ 10,891,907$ Changes for the Year: Service Cost 337,135 - 337,135 Interest on the Net OPEB Liability 520,467 - 520,467 Changes in Assumptions (51,523) - (51,523) Differences Between Actual and Expected Experience - - - Employer Contributions - 499,198 (499,198) Net Investment Income - 22,740 (22,740) Administrative Expenses - (410) 410 Benefit Payments (499,198) (499,198) - Net Changes 306,881 22,330 284,551 Balance at June 30, 2023 (Measurement Date) 12,637,985$ 1,461,527$ 11,176,458$ CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (56) NOTE 11 NET OTHER POSTEMPLOYMENT BENEFITS (OPEB) LIABILITY (CONTINUED) B. Changes in the Net OPEB Liability (Continued) Sensitivity of the Net OPEB Liability to Changes in the Discount Rate The following presents the net OPEB liability of the District, as well as what the District’s net OPEB liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current discount rate for the measurement dates ended June 30, 2024 and 2023: 1% Decrease Discount Rate 1% Increase 3.27% 4.27% 5.27% June 30, 2024 (Measurement Date) 13,863,830$ 12,063,469$ 10,573,390$ 1% Decrease Discount Rate 1% Increase 3.22% 4.22% 5.22% June 30, 2023 (Measurement Date) 13,074,640$ 11,176,458$ 9,622,960$ Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates The following presents the net OPEB liability of the District, as well as what the District’s net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates for the measurement dates ended June 30, 2024 and 2023: Healthcare Cost 1% Decrease Trend Rates 1% Increase (1) (2) (3) June 30, 2024 (Measurement Date) 10,428,898$ 12,063,469$ 14,104,633$ June 30, 2023 (Measurement Date) 9,325,162$ 11,176,458$ 13,560,193$ June 30, 2024 and 2023 (Measurement Date): (1) Non-Medicare: 7.50% for 2024 Decreasing to 2.45% in 2076; Medicare (Kaiser): 6.50% for 2024 Decreasing to 2.45% in 2076; Medicare (Other): 5.25% for 2024 Decreasing to 2.45% in 2076. (2) Non-Medicare: 8.50% for 2024 Decreasing to 3.45% in 2076; Medicare (Kaiser): 7.50% for 2024 Decreasing to 3.45% in 2076; Medicare (Other): 6.25% for 2024 Decreasing to 3.45% in 2076. (3) Non-Medicare: 9.50% for 2024 Decreasing to 4.45% in 2076; Medicare (Kaiser): 8.50% for 2024 Decreasing to 4.45% in 2076; Medicare (Other): 7.25% for 2024 Decreasing to 4.45% in 2076. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (57) NOTE 11 NET OTHER POSTEMPLOYMENT BENEFITS (OPEB) LIABILITY (CONTINUED) C. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the fiscal years ended June 30, 2025 and 2024, the District recognized OPEB expense of $948,890 and $894,600, respectively. As of the fiscal year ended June 30, 2025, the District reported deferred outflows and deferred inflows of resources related to the net OPEB liability from the following sources: Deferred Deferred Outflows of Inflows of Description Resources Resources OPEB Contributions Subsequent to the Measurement Date 610,964$ -$ Changes in Assumptions 2,847,095 (3,168,288) Differences Between Expected and Actual Experience 363,072 (6,020,341) Net Differences Between Projected and Actual Earnings on OPEB Plan Investments 99,443 - Total Deferred Outflows (Inflows) of Resources 3,920,574$ (9,188,629)$ At June 30, 2025, the District reported $610,694 of deferred outflows of resources for employer contributions made subsequent to the measurement date which will be used to reduce the net OPEB liability balance in the fiscal year ending June 30, 2026 calculation. Other amounts reported as deferred outflows (inflows) of resources related to the net OPEB liability will be recognized in OPEB expense as follows: Fiscal Year Ending June 30,Amount 2026 144,627$ 2027 (429,016) 2028 (914,305) 2029 (965,881) 2030 (971,148) Thereafter (2,743,296) Total (5,879,019)$ CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (58) NOTE 11 NET OTHER POSTEMPLOYMENT BENEFITS (OPEB) LIABILITY (CONTINUED) C. OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB (Continued) As of the fiscal year ended June 30, 2024, the District reported deferred outflows and deferred inflows of resources related to the net OPEB liability from the following sources: Deferred Deferred Outflows of Inflows of Description Resources Resources OPEB Contributions Subsequent to the Measurement Date 224,117$ -$ Changes in Assumptions 4,242,834 (3,486,870) Differences Between Expected and Actual Experience - (6,941,774) Net Differences Between Projected and Actual Earnings on OPEB Plan Investments 144,660 - Total Deferred Outflows (Inflows) of Resources 4,611,611$ (10,428,644)$ At June 30, 2024, the District reported $224,117 of deferred outflows of resources for employer contributions made subsequent to the measurement date which were used to reduce the net OPEB liability balance in the fiscal year ended June 30, 2025 calculation. D. Payable to the OPEB Plan At June 30, 2025, the District had no outstanding amount of contributions to the OPEB plan. NOTE 12 PENSION PLAN Summary The following balances on the balance sheet will be addressed in this footnote as follows: Description June 30, 2025 June 30, 2024 Pension Related Deferred Outflows of Resources 4,143,170$ 5,194,562$ Net Pension Liability 12,432,401 12,453,797 Pension Related Deferred Inflows of Resources 41,942 108,857 Qualified employees are covered under a cost-sharing, multiemployer defined benefit pension plan maintained by agencies of the state of California known as the California Public Employees’ Retirement System (CalPERS), or (the Plan). CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (59) NOTE 12 PENSION PLAN (CONTINUED) A. General Information about the Pension Plan Plan Description All qualified full-time permanent and probationary employees are eligible to participate in the District’s Miscellaneous Employee Pension Plans (Plans), which are cost-sharing, multiemployer defined benefit pension plans administered by CalPERS. Benefit provisions under these plans are established by state statute and District resolution. CalPERS acts as a common investment and administrative agent for participating public entities within the state of California. A full description of the pension plan, benefit provisions, assumptions (for funding, but not accounting purposes), and membership information are listed in the June 30, 2023 and 2022 Annual Actuarial Valuation Reports. This report and CalPERS’ audited financial statements are publicly available reports that can be obtained at CalPERS’ website under Forms and Publications. Benefits Provided The Plans’ provisions and benefits in effect at the fiscal years ended June 30, 2025 and 2024 are summarized as follows: Classic PEPRA Tier 1 Tier 2 Prior to On or after Hire Date January 1, 2013 January 1, 2013 Benefit Formula 2.0% @ 60 2.0% @ 62 Benefit Vesting Schedule 5-Years of Service 5-Years of Service Benefit Payments Monthly for Life Monthly for Life Retirement Age 50 - 67 & up 52 - 67 & up Monthly Benefits, as a % of Eligible Compensation 1.092% to 2.418% 1.0% to 2.5% Required Member Contribution Rates 6.918% 6.750% Required Member Contribution Rates - 2024: Normal Cost Rate 10.710% 7.870% Payment of Unfunded Liability 977,751$ 14,602$ Required Member Contribution Rates - 2023: Normal Cost Rate 10.660% 7.680% Payment of Unfunded Liability 816,945$ -$ Miscellaneous Plans CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. A Classic CalPERS Miscellaneous member becomes eligible for service retirement upon attainment of age 55 with at least five years of credited service. Public Employees’ Pension Reform Act (PEPRA) Miscellaneous members become eligible for service retirement upon attainment of age 62 with at least five years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation based on a retirement formula using the local service credit, age at retirement, and highest average annual compensation during any consecutive 12- or 36-month period throughout the employees’ CalPERS career. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (60) NOTE 12 PENSION PLAN (CONTINUED) A. General Information about the Pension Plan (Continued) Benefits Provided (Continued) Participant members are eligible for nonindustrial disability retirement if they become disabled and have at least five years of credited service. There is no special age requirement. The standard nonindustrial disability retirement benefit is a monthly allowance equal to 1.8% of final compensation, multiplied by service. Industrial disability benefits are not offered to miscellaneous employees. A member’s beneficiary may receive the basic death benefit if the member dies while actively employed. The member must be actively employed with the District to be eligible for this benefit. A member's survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the members’ accumulated contributions, where interest is currently credited at 7.15% per year, plus a lump-sum in the amount of one month’s salary for each completed year of current service, up to a maximum of six months’ salary. For purposes of this benefit, one month’s salary is defined as the member’s average monthly full- time rate of compensation during the 12 months preceding death. Upon the death of a retiree, a one-time lump-sum payment of $500 will be made to the retiree’s designated survivor(s), or to the retiree’s estate. Benefit terms provide for annual cost-of-living adjustments to each member’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 3%. Contributions Section 20814(c) of the California Public Employees’ Retirement Law (PERL) requires that the employer contribution rates for all public employers will be determined on an annual basis by the actuary and shall be effective on July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The public agency cost-sharing plans covered by the Miscellaneous risk pool, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of members. For the measurement periods ending June 30, 2024 and 2023 (measurement dates), the active member contribution rate for the Classic Miscellaneous Plan and the PEPRA Miscellaneous Plan are included in the above benefits schedule. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (61) NOTE 12 PENSION PLAN (CONTINUED) A. General Information about the Pension Plan (Continued) Contributions (Continued) Contributions for the fiscal years ended June 30, 2025 and 2024, were as follows: Classic Employer Contributions by Fiscal Year Tier 1 PEPRA Total Contributions - Employer - June 30, 2025 1,348,459$ 411,741$ 1,760,200$ Contributions - Employer - June 30, 2024 1,180,482$ 370,984$ 1,551,466$ Miscellaneous Plans B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions Proportionate Share of Net Pension Liability and Pension Expense The following table shows the District’s proportionate share of the risk pool collective net pension liability over the measurement periods for the Miscellaneous Plan for the fiscal years ended June 30, 2025 and 2024: Plan Total Plan Fiduciary Change in Plan Net Plan Type and Balance Descriptions Pension liability Net Position Pension Liability CalPERS - Miscellaneous Plans: Balance as of June 30, 2023 (Measurement Date) 45,084,803$ 32,631,006$ 12,453,797$ Balance as of June 30, 2024 (Measurement Date) 47,705,512 35,273,111 12,432,401 Change 2,620,709$ 2,642,105$ (21,396)$ Plan Total Plan Fiduciary Change in Plan Net Plan Type and Balance Descriptions Pension liability Net Position Pension Liability CalPERS - Miscellaneous Plans: Balance as of June 30, 2022 (Measurement Date) 42,824,722$ 31,300,781$ 11,523,941$ Balance as of June 30, 2023 (Measurement Date) 45,084,803 32,631,006 12,453,797 Change 2,260,081$ 1,330,225$ 929,856$ The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool. (1) In determining a cost-sharing plan’s proportionate share, total amounts of liabilities and assets are first calculated for the risk pool as a whole on the valuation date (June 30, 2023 and 2022). The risk pool’s fiduciary net position (FNP) subtracted from its total pension liability (TPL) determines the net pension liability (NPL) at the valuation date. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (62) NOTE 12 PENSION PLAN (CONTINUED) B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Proportionate Share of Net Pension Liability and Pension Expense (Continued) (2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date (June 30, 2024 and 2023). Risk pool FNP at the measurement date is then subtracted from this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference thereto, the risk pool’s FNP at the measurement date denotes the aggregate risk pool’s FNP at June 30, 2024 and 2023 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2024 fiscal year and the 2023 fiscal year). (3) The individual plan’s TPL, FNP and NPL are also calculated at the valuation date. (4) Two ratios are created by dividing the plan’s individual TPL and FNP as of the valuation date from (3) by the amounts in step (1), the risk pool’s total TPL and FNP, respectively. (5) The plan’s TPL as of the Measurement Date is equal to the risk pool TPL generated in (2) multiplied by the TPL ratio generated in (4). The plan’s FNP as of the Measurement Date is equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period. (6) The plan’s NPL at the Measurement Date is the difference between the TPL and FNP calculated in (5). The District’s net pension liability for the Plan is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2024 and 2023, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2023 and 2022 rolled forward to June 30, 2024 and 2023, respectively, using standard update procedures. The District’s proportion of the net pension liability was based on a projection of the District’s long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (63) NOTE 12 PENSION PLAN (CONTINUED) B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Proportionate Share of Net Pension Liability and Pension Expense (Continued) The District’s proportionate share percentage of the net pension liability for the June 30, 2024, measurement date was as follows: Fiscal Year Fiscal Year Change Ended Ended Increase June 30, 2025 June 30, 2024 (Decrease) Measurement Date June 30, 2024 June 30, 2023 Percentage of Risk Pool Net Pension Liability 0.257050% 0.249060% 0.007990% Percentage of Plan (PERF C) Net Pension Liability 0.102510% 0.099827% 0.002683% Percentage Share of Risk Pool The District’s proportionate share percentage of the net pension liability for the June 30, 2023, measurement date was as follows: Fiscal Year Fiscal Year Change Ended Ended Increase June 30, 2024 June 30, 2023 (Decrease) Measurement Date June 30, 2023 June 30, 2022 Percentage of Risk Pool Net Pension Liability 0.249060% 0.246280% 0.002780% Percentage of Plan (PERF C) Net Pension Liability 0.099827% 0.099770% 0.000057% Percentage Share of Risk Pool For the fiscal years ended June 30, 2025 and 2024, the District recognized pension expense in the amounts of $2,723,286 and $2,309,517, respectively, for the CalPERS Miscellaneous Plan. At June 30, 2025, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Description Resources Resources Pension Contributions Subsequent to the Measurement Date 1,760,200$ -$ Differences Between Expected and Actual Experience 1,074,894 (41,942) Changes in Assumptions 319,538 - Changes in Employer's Proportion and Differences Between the Employer's Contributions and the Employer's Proportionate Share of Contributions 272,815 - Net Differences Between Projected and Actual Earnings on Pension Plan Investments 715,723 - Total Deferred Outflows (Inflows) of Resources 4,143,170$ (41,942)$ CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (64) NOTE 12 PENSION PLAN (CONTINUED) B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Proportionate Share of Net Pension Liability and Pension Expense (Continued) The District will recognize $1,760,200 reported as deferred outflows of resources related to pensions resulting from the District’s contributions subsequent to the measurement date as a reduction of the net pension liability in the fiscal year ending June 30, 2026. The deferred outflows/(inflows) of resources related to the net differences between projected and actual earnings on pension plan investments will be amortized over a closed five-year period. The deferred outflows/(inflows) of resources related to the differences between expected and actual experience, changes of assumptions, and changes in employer’s proportion and differences between the employer’s contributions and the employer’s proportionate share of contributions, will be amortized over the Expected Average Remaining Service Life (EARSL) of all members that are provided benefits (active, inactive, and retirees) as of the beginning of the measurement period. The EARSL for the measurement period is 3.8 years. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Amortization Period Fiscal Year Ending June 30,Amount 2026 851,886$ 2027 1,681,963 2028 52,443 2029 (245,264) Total 2,341,028$ At June 30, 2024, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Description Resources Resources Pension Contributions Subsequent to the Measurement Date 1,551,466$ -$ Differences Between Expected and Actual Experience 636,207 (98,691) Changes in Assumptions 751,892 - Changes in Employer's Proportion and Differences Between the Employer's Contributions and the Employer's Proportionate Share of Contributions 238,615 (10,166) Net Differences Between Projected and Actual Earnings on Pension Plan Investments 2,016,382 - Total Deferred Outflows (Inflows) of Resources 5,194,562$ (108,857)$ CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (65) NOTE 12 PENSION PLAN (CONTINUED) B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Proportionate Share of Net Pension Liability and Pension Expense (Continued) The District recognized $1,551,466 reported as deferred outflows of resources related to pensions resulting from the District’s contributions subsequent to the measurement date as a reduction of the net pension liability in the fiscal year ended June 30, 2025. The deferred outflows/(inflows) of resources related to the difference between projected and actual earnings on pension plan investments will be amortized over a closed five- year period. The deferred outflows/(inflows) of resources related to the net change in proportionate share of net pension liability, changes of assumptions, and differences between expected and actual experience in the measurement of the total pension liability will be amortized over the Expected Average Remaining Service Life (EARSL) of all members that are provided benefits (active, inactive, and retirees) as of the beginning of the measurement period. The EARSL for the measurement period is 3.8 years. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Amortization Period Fiscal Year Ending June 30,Amount 2025 1,118,007$ 2026 777,500 2027 1,580,872 2028 57,860 Total 3,534,239$ Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement periods ending June 30, 2024 and 2023 (the measurement dates), the total pension liabilities were based on the following actuarial methods and assumptions: Measurement Measurement Date Date June 30, 2024 June 30, 2023 Actuarial Cost Method Entry Age Normal Entry Age Normal Actuarial Assumptions: Discount Rate 6.90 % 6.90 % Inflation 2.30 2.30 Salary Increases (1) (1) Mortality Rate Table (2) (2) Post Retirement Benefit Increase (3) (3) CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (66) NOTE 12 PENSION PLAN (CONTINUED) B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Actuarial Methods and Assumptions Used to Determine Total Pension Liability (Continued) (1) Varies by entry age and service. (2) The mortality table used was developed based on CalPERS-specific data. The probabilities of mortality are based on the 2021 CalPERS Experience Study for the period from 2001 to 2019. Pre-retirement and Post-retirement mortality rates include generational mortality improvement using 80% of Scale MP-2020 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from November 2021 that can be found on the CalPERS website. (3) The less of contract COLA or 2.30% until Purchasing Power Protection Allowance Floor on purchasing power applies, 2.30% thereafter. Long-Term Expected Rate of Return The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations. Using historical returns all of the funds’ asset classes, expected compound (geometric) returns were calculated over the next 20 years using a building-block approach. The expected rate of return was then adjusted to account for assumed administrative expenses of 10 Basis points. The expected real rates of return by asset class are as follows for the measurement period ended June 30, 2024: Assumed Asset Real Return Asset Class Allocation (a) (b) Global Equity - Cap-weighted 30.00 % 4.54 % Global Equity - Non-Cap-weighted 12.00 3.84 Private Equity 13.00 7.28 Treasury 5.00 0.27 Mortgage-Backed Securities 5.00 0.50 Investment Grade Corporates 10.00 1.56 High Yield 5.00 2.27 Emerging Market Debt 5.00 2.48 Private Debt 5.00 3.57 Real Assets 15.00 3.21 Leverage (5.00) (0.59) Total 100.00 % (a) An expected inflation of 2.3% is used for this period. (b) Figures are based on the 2021 Asset Liability Management study. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (67) NOTE 12 PENSION PLAN (CONTINUED) B. Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions (Continued) Discount Rate The discount rate used to measure the total pension liability was 6.90% for the measurement periods ending June 30, 2024 and 2023, respectively. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Net Pension Liability to Changes in the Discount Rate The following presents the District’s proportionate share of the net pension liability for the Plans, as of the measurement dates, calculated using the discount rate for each plan, as well as what the District’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate: 1% Decrease Discount Rate 1% Increase 5.90% 6.90% 7.90% June 30, 2024 (Measurement Date) 18,869,801$ 12,432,401$ 7,133,473$ 1% Decrease Discount Rate 1% Increase 5.90% 6.90% 7.90% June 30, 2023 (Measurement Date) 18,551,325$ 12,453,797$ 7,435,008$ Pension Plan Fiduciary Net Position Detailed information about the pension plan’s fiduciary net position is available in the separately issued CalPERS financial report and can be obtained from CalPERS’ website under Forms and Publications. Payable to Pension Plans At June 30, 2025 and 2024, the District had no outstanding amount of contributions to the pension plans. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (68) NOTE 13 NET INVESTMENT IN CAPITAL ASSETS Net investment in capital assets consisted of the following as of June 30: Description 2025 2024 Noncurrent Portion of Assets: Capital Assets - Not Being Depreciated 15,688,125$ 13,514,383$ Capital Assets - Being Depreciated, Net 78,838,101 80,902,262 Capital Assets, Intangible Asset - Right-to-Use Leased Asset, Net 502,995 447,216 Capital Assets, Intangible Asset - SBITAs 353,290 528,018 Deferred Outflows of Resources: Deferred Loss on CFD 2013-1 2,453,301 2,659,172 Current Portion of Liabilities: Lease Liability (148,273) (104,802) SBITA Liability (239,250) (234,125) Long-Term Debt (1,092,885) (1,003,377) Noncurrent Portion of Liabilities: Lease Liability (335,638) (294,469) SBITA Liability (77,391) (257,552) Long-Term Debt Used for Capital Asset Purchases (57,052,499) (58,216,578) Current Liabilities: Accounts Payable and Accrued Expenses: Capital Related (145,721) (320,796) Retentions Payable (119,470) (42,578) Total Net Investment in Capital Assets 38,624,685$ 37,576,774$ NOTE 14 RESTRICTED NET POSITION Restricted net position consisted of the following as of June 30: Description 2025 2024 djudication Fund 931,086$ 1,112,722$ NOTE 15 DEFERRED COMPENSATION SAVINGS PLAN For the benefit of its employees, the District participates in two defined contribution 457 Deferred Compensation Programs (Programs). The purpose of these Programs is to provide deferred compensation for public employees that elect to participate in the Programs. Generally, eligible employees may defer receipt of a portion of their salary until termination, retirement, death, or unforeseeable emergency. Until the funds are paid or otherwise made available to the employee, the employee is not obligated to report the deferred salary for income tax purposes. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (69) NOTE 15 DEFERRED COMPENSATION SAVINGS PLAN (CONTINUED) Federal law requires deferred compensation assets to be held in trust for the exclusive benefit of the participants. Accordingly, the District is in compliance with this legislation. Therefore, these assets are not the legal property of the District and are not subject to claims of the District’s general creditors. Since the District has little administrative involvement and does not perform the investing function for this plan, the assets and related liabilities are not shown on the accompanying financial statements. The District makes no contributions to these plans. NOTE 16 RISK MANAGEMENT The District is exposed to various risks of loss related to torts, theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; natural disasters; and terrorism. The District is self-insured for the first $25,000 of general and auto liabilities for each occurrence, and the excess (up to $10,000,000) per occurrence and in the aggregate) is covered through the purchase of an insurance policy. Employment practices liability coverage is self-insured for the $25,000, and the excess (up to $5,000,000 per occurrence and in the aggregate) is covered through the insurance policy. The District is a member Public Risk Innovation Solutions and Management Agency (PRISM, formally CSAC Excess Insurance Authority) (Agency) for its workers’ compensation coverage. The District is self-insured for the first $125,000 of each occurrence, and the Authority finances $5,000,000 per occurrence. The District purchased additional excess coverage layers of $95 million which increases the limits set forth by the Agency. Settled claims have not exceeded any of the coverage amounts in any of the last three fiscal years and there were no reductions in the District’s insurance coverage during the years ended June 30, 2025, 2024, and 2023. Liabilities are recorded when it is probable that a loss has been incurred and the amount of the loss can be reasonably estimated net of the respective insurance coverage. Liabilities include an amount for claims that have been incurred but not reported (IBNR). The estimate of claims for the year ended June 30, 2025 include an estimate of claims that have been incurred but not reported (IBNR). The following is the claims liability as of June 30, 2025 and 2024: Balance Chan e in Balance Due Within Due in More Lon -Term Debt Jul 1, 2023 Estimate Deletions June 30, 2024 One Yea Than One Yea Claims Liability 373,860$ (28,048)$ (64,627)$ 281,185$ 224,575$ 56,610$ Balance Chan e in Balance Due Within Due in More Lon -Term Debt Jul 1, 2023 Estimate Deletions June 30, 2024 One Yea Than One Yea Claims Liability 166,648$ 357,245$ (150,033)$ 373,860$ 288,397$ 85,463$ CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (70) NOTE 17 COMMITMENTS AND CONTINGENCIES State Water Contract Estimates of the District’s share of the project fixed costs of the State Water Project (SWP) are provided annually by the state. The estimates are subject to future increases or decreases resulting from changes in planned facilities, refinements in cost estimates, and inflation. During the next five years, payments under the State Water Contract, exclusive of variable power costs, are currently estimated by the state to be as follows: Fiscal Year Ending June 30,Amount 2026 1,354,850$ 2027 1,252,767 2028 1,235,013 2029 1,259,537 2030 1,250,244 Total 6,352,411$ As of June 30, 2025, the District has expended $31.7 million since the District started participating in the State Water Contract. According to the state’s latest estimates, the District’s long-term obligations (25% share) under the contract, for capital and minimum operations and maintenance costs, including interest to the year 2069, are as follows: State Water Contract Long-Term Obligations Transportation Facilities 13,004,265$ Conservation Facilities 8,035,052 Off-Aqueduct Power Facilities 1,480,056 Revenue Bond Surcharge 529 Total Long-Term SWP Contract Obligations 22,519,902$ The amounts shown above do not contain any escalation or inflation and are subject to significant variation over time because the amounts are based on a number of assumptions and are contingent on future events. Accordingly, none of the estimated long-term obligations are recorded as liabilities in the accompanying basic financial statements. There are other pending actions that may adversely impact the District’s ability to control the sale of water transported through the SWP into its service area. The impact on future revenues of such actions cannot be determined. CASITAS MUNICIPAL WATER DISTRICT NOTES TO BASIC FINANCIAL STATEMENTS JUNE 30, 2025 AND 2024 (71) NOTE 17 COMMITMENTS AND CONTINGENCIES (CONTINUED) Grant Awards Grant funds received by the District are subject to audit by the grantor agencies. Such audit could lead to requests for reimbursements to the grantor agencies for expenditures disallowed under terms of the grant. Management of the District believes that such disallowances, if any, would not be significant. Litigation In the ordinary course of operations, the District is subject to claims and litigation from outside parties. After consultation with legal counsel, the District believes the ultimate outcome of such matters, if any, will not materially affect its financial condition. NOTE 18 RESTATEMENT OF NET POSITION Change in Accounting Principle Effective July 1, 2023, the District implemented GASB Statement No. 101, Compensated Absences. This statement updated the recognition and measurement guidance for compensated absences and associated salary-related payments and amended certain previously required disclosures. As a result of the implementation of this standard, the compensated absences liability as of July 1, 2023 was increased by $368,484. The effect of the implementation of this standard is shown in the table below. 2024 Net Position as of July 1, as Previously Reported 42,589,533$ Change in accounting principle (362,509) Net Position as of July 1, as Restated 42,227,024$ 2024 Change in Net Position for the Fiscal Year Ended June 30, 2024, as Previously Reported 2,050,874$ Restatement for the Implementation of GASB 101 (5,975) Change in Net Position for the Fiscal Year Ended June 30, 2024, as Restated 2,044,899$ (72) REQUIRED SUPPLEMENTARY INFORMATION CASITAS MUNICIPAL WATER DISTRICT SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY LAST TEN FISCAL YEARS (73) Fiscal Year Ended June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Measurement Period June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 District's Proportion of the Net Pension Liability 0.257050% 0.099827% 0.099770% 0.098320% 0.088110% District's Proportionate Share of the Net Pension Liability 12,432,401$ 12,453,797$ 11,523,941$ 5,317,540$ 9,586,888$ District's Covered Payroll 8,434,548$ 7,944,664$ 7,471,589$ 6,796,786$ 5,955,380$ District's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll 147.40% 156.76% 154.24% 78.24% 160.98% District's Proportionate Share of Fiduciary Net Position as a Percentage of the Plan's Total Pension Liability 73.94% 72.38% 73.09% 87.25% 76.08% Notes to Schedule: Benefit Changes: There were no changes in benefits. Changes in Assumptions: From fiscal year June 30, 2016 to June 30, 2017: GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.65% used for the June 30, 2015 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2016 measurement date is without reduction of pension plan administrative expense. From fiscal year June 30, 2017 to June 30, 2018: The discount rate was reduced from 7.65% to 7.15%. From fiscal year June 30, 2018 to June 30, 2022: There were no significant changes in assumptions. From fiscal year June 30, 2022 to June 30, 2023: The discount rate and long-term rate of return decreased from 7.15% to 6.90% and the inflation rate decreased from 2.50% to 2.30%. From fiscal year June 30, 2023 to June 30, 2024: There were no significant changes in assumptions. From fiscal year June 30, 2024 to June 30, 2025: There were no significant changes in assumptions. CASITAS MUNICIPAL WATER DISTRICT SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY (CONTINUED) LAST TEN FISCAL YEARS (74) Fiscal Year Ended June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 Measurement Period June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 District's Proportion of the Net Pension Liability 0.084990% 0.081300% 0.080015% 0.077286% 0.067262% District's Proportionate Share of the Net Pension Liability 8,708,942$ 7,834,700$ 7,935,268$ 6,687,600$ 4,616,826$ District's Covered Payroll 5,931,424$ 5,467,811$ 4,602,594$ 4,334,649$ 4,123,809$ District's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll 146.83% 143.29% 172.41% 154.28% 111.96% District's Proportionate Share of Fiduciary Net Position as a Percentage of the Plan's Total Pension Liability 75.26% 78.45% 77.91% 80.01% 85.60% Notes to Schedule: Benefit Changes: There were no changes in benefits. Changes in Assumptions: From fiscal year June 30, 2016 to June 30, 2017: GASB 68, paragraph 68 states that the long-term expected rate of return should be determined net of pension plan investment expense but without reduction for pension plan administrative expense. The discount rate of 7.65% used for the June 30, 2015 measurement date was net of administrative expenses. The discount rate of 7.65% used for the June 30, 2016 measurement date is without reduction of pension plan administrative expense. From fiscal year June 30, 2017 to June 30, 2018: The discount rate was reduced from 7.65% to 7.15%. From fiscal year June 30, 2018 to June 30, 2022: There were no significant changes in assumptions. From fiscal year June 30, 2022 to June 30, 2023: The discount rate and long-term rate of return decreased from 7.15% to 6.90% and the inflation rate decreased from 2.50% to 2.30%. From fiscal year June 30, 2023 to June 30, 2024: There were no significant changes in assumptions. From fiscal year June 30, 2024 to June 30, 2025: There were no significant changes in assumptions. CASITAS MUNICIPAL WATER DISTRICT SCHEDULE OF CONTRIBUTIONS TO THE PENSION PLAN LAST TEN FISCAL YEARS (75) Fiscal Year Ended June 30, 2025 June 30, 2024 June 30, 2023 June 30, 2022 June 30, 2021 Contractually Required Contribution (Actuarially Determined) 1,760,200$ 1,551,466$ 1,511,285$ 1,362,418$ 1,218,701$ Contributions in Relation to the Actuarially Determined Contributions (1,760,200) (1,551,466) (1,511,285) (1,362,418) (1,218,701) Contribution Deficiency (Excess) -$ -$ -$ -$ -$ Covered Payroll 8,949,716$ 8,434,548$ 7,944,664$ 7,471,589$ 6,796,786$ Contributions as a Percentage of Covered Payroll 19.67% 18.39% 19.02% 18.23% 17.93% Notes to Schedule: Valuation Date 6/30/2022 6/30/2021 6/30/2020 6/30/2019 6/30/2018 Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) (1) (1) Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.300% 2.300% 2.300% 2.500% 2.500% Salary Increases (2) (2) (2) (2) (2) Investment Rate of Return 6.90% (3) 6.90% (3) 6.90% (3) 7.00% (3) 7.00% (3) Retirement Age (4) (4) (4) (4) (4) Mortality (5) (5) (5) (5) (5) (1) Level percentage of payroll, closed (2) Depending on age, service, and type of employment (3) Net of pension plan investment expense, including inflation (4)50 for all plans with the exception of 52 for Miscellaneous PEPRA 2%@62 (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board. CASITAS MUNICIPAL WATER DISTRICT SCHEDULE OF CONTRIBUTIONS TO THE PENSION PLAN (CONTINUED) LAST TEN FISCAL YEARS (76) Fiscal Year Ended June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 Contractually Required Contribution (Actuarially Determined) 1,021,010$ 829,079$ 689,022$ 555,953$ 465,843$ Contributions in Relation to the Actuarially Determined Contributions (1,021,010) (829,079) (689,022) (555,953) (465,843) Contribution Deficiency (Excess) -$ -$ -$ -$ -$ Covered Payroll 5,955,380$ 5,931,424$ 5,467,811$ 4,602,594$ 4,334,649$ Contributions as a Percentage of Covered Payroll 17.14% 13.98% 12.60% 12.08% 10.75% Notes to Schedule: Valuation Date 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) (1) (1) Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Inflation 2.625% 2.75% 2.75% 2.75% 2.75% Salary Increases (2) (2) (2) (2) (2) Investment Rate of Return 7.25% (3) 7.375% (3) 7.50% (3) 7.50% (3) 7.50% (3) Retirement Age (4) (4) (4) (4) (4) Mortality (5) (5) (5) (5) (5) (1) Level percentage of payroll, closed (2) Depending on age, service, and type of employment (3) Net of pension plan investment expense, including inflation (4)50 for all plans with the exception of 52 for Miscellaneous PEPRA 2%@62 (5) Mortality assumptions are based on mortality rates resulting from the most recent CalPERS Experience Study adopted by the CalPERS Board. CASITAS MUNICIPAL WATER DISTRICT SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS LAST TEN FISCAL YEARS* (77) Fiscal Year Ended June 30, 2025 June 30, 2024 June 30, 2023 Measurement Period June 30, 2024 June 30, 2024 June 30, 2022 Total OPEB Liability: Service cost 343,541$ 337,135$ 778,485$ Interest on Total OPEB Liability 537,004 520,467 531,877 Changes of Assumptions (82,052) (51,523) (4,105,231) Differences Between Expected and Actual Experience 398,667 - (6,627,466) Benefit Payments, Including Refunds and the Implied Subsidy Benefit Payments (515,603) (499,198) (584,787) Net Change in Total OPEB Liability 681,557 306,881 (10,007,122) Total OPEB Liability - Beginning of Year 12,640,985 12,334,104 22,341,226 Total OPEB Liability - End of Year (a) 13,322,542 12,640,985 12,334,104 Plan Fiduciary Net Position: Contributions - Employer 224,117 499,198 584,787 Net Investment Income 86,485 22,740 (173,976) Administrative Expenses (453) (410) (411) Benefit Payments, Including Refunds and the Implied Subsidy Benefit Payments (515,603) (499,198) (584,787) Net Change in Plan Fiduciary Net Position (205,454) 22,330 (174,387) Plan Fiduciary Net Position - Beginning of Year 1,464,527 1,442,197 1,616,584 Plan Fiduciary Net Position - End of Year (b) 1,259,073 1,464,527 1,442,197 Net OPEB Liability - Ending (a)-(b) 12,063,469$ 11,176,458$ 10,891,907$ Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 9.45% 11.59% 11.69% Covered Employee Payroll 8,844,384$ 8,859,433$ 8,469,356$ Net OPEB Liability as Percentage of Covered Employee Payroll 136.40% 126.15% 128.60% Notes to Schedule: Benefit Changes: There were no changes in benefits. Changes in Assumptions: Discount rate was updated 4.27% 4.22% 4.19% Removed the liability for Affordable Care Act excise tax due to repeal in December 2019 from fiscal year June 30, 2020 to June 30, 2021. Mortality improvement scale was updated from Scale MP-2018 to Scale MP-2020 from fiscal year June 30, 2020 to June 30, 2021. Kaiser Senior Advantage plan medical trend was decreased from 6.5% for 2020 for the fiscal year ended June 30, 2020 to 5.0% for 2022 for the fiscal year ended June 30, 2021. For the fiscal year ended June 30, 2022 to June 30, 2023, the medical trend rates were updated, the experience study was updated to 2000-2019, and the mortality improvement scale was updated to MP-2021. * Fiscal year 2018 was the first year of implementation; therefore, only eight years are shown. CASITAS MUNICIPAL WATER DISTRICT SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS (CONTINUED) LAST TEN FISCAL YEARS* (78) Fiscal Year Ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Measurement Period June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Total OPEB Liability: Service cost 764,771$ 594,473$ 417,772$ 232,654$ 226,427$ Interest on Total OPEB Liability 562,642 781,245 841,909 683,863 657,817 Changes of Assumptions (124,456) 2,676,738 3,319,650 5,629,147 - Differences Between Expected and Actual Experience - (2,588,440) - (259,672) - Benefit Payments, Including Refunds and the Implied Subsidy Benefit Payments (671,482) (694,250) (677,053) (626,696) (518,711) Net Change in Total OPEB Liability 531,475 769,766 3,902,278 5,659,296 365,533 Total OPEB Liability - Beginning of Year 21,809,751 21,039,985 17,137,707 11,478,411 11,112,878 Total OPEB Liability - End of Year (a) 22,341,226 21,809,751 21,039,985 17,137,707 11,478,411 Plan Fiduciary Net Position: Contributions - Employer 671,482 696,270 679,073 626,696 1,714,977 Net Investment Income 193,129 84,839 89,988 55,999 - Administrative Expenses (503) (2,685) (2,289) (2,200) - Benefit Payments, Including Refunds and the Implied Subsidy Benefit Payments (671,482) (694,250) (677,053) (626,696) (518,711) Net Change in Plan Fiduciary Net Position 192,626 84,174 89,719 53,799 1,196,266 Plan Fiduciary Net Position - Beginning of Year 1,423,958 1,339,784 1,250,065 1,196,266 - Plan Fiduciary Net Position - End of Year (b) 1,616,584 1,423,958 1,339,784 1,250,065 1,196,266 Net OPEB Liability - Ending (a)-(b) 20,724,642$ 20,385,793$ 19,700,201$ 15,887,642$ 10,282,145$ Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 7.24% 6.53% 6.37% 7.29% 10.42% Covered Employee Payroll 7,801,655$ 5,955,380$ 5,931,424$ 5,467,811$ 4,602,594$ Net OPEB Liability as Percentage of Covered Employee Payroll 265.64% 342.31% 332.13% 290.57% 223.40% Notes to Schedule: Benefit Changes: There were no changes in benefits. Changes in Assumptions: Discount rate was updated 2.33% 2.53% 3.67% 4.89% 6.00% Removed the liability for Affordable Care Act excise tax due to repeal in December 2019 from fiscal year June 30, 2020 to June 30, 2021. Mortality improvement scale was updated from Scale MP-2018 to Scale MP-2020 from fiscal year June 30, 2020 to June 30, 2021. Kaiser Senior Advantage plan medical trend was decreased from 6.5% for 2020 for the fiscal year ended June 30, 2020 to 5.0% for 2022 for the fiscal year ended June 30, 2021. For the fiscal year ended June 30, 2022 to June 30, 2023, the medical trend rates were updated, the experience study was updated to 2000-2019, and the mortality improvement scale was updated to MP-2021. * Fiscal year 2018 was the first year of implementation; therefore, only eight years are shown. CASITAS MUNICIPAL WATER DISTRICT SCHEDULE OF CONTRIBUTIONS TO THE OPEB PLAN LAST TEN FISCAL YEARS* (79) Fiscal Year Ended June 30, 2025 June 30, 2024 June 30, 2023 Actuarially Determined Contribution 1,201,881$ 1,020,833$ 993,254$ Contributions in Relation to the Actuarially Determined Contributions (610,964) (224,117) (499,198) Contribution Deficiency (Excess) 590,917$ 796,716$ 494,056$ Covered Employee Payroll 9,116,250$ 8,844,384$ 8,859,433$ Contributions as a Percentage of Covered Employee Payroll 6.70% 2.53% 5.63% Notes to Schedule: Valuation Date 6/30/2024 6/30/2022 6/30/2022 Methods and Assumptions Used to Determine Contributions Rates: Actuarial Cost Method Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) Asset Valuation Method Fair Value Fair Value Fair Value Discount Rate 5.25% 5.25% 5.25% Inflation 2.50% 2.50% 2.50% Salary Increases 2.75% 2.75% 2.75% Investment Rate of Return 5.25% 5.25% 5.25% Medical Trend (8) (8) (8) Mortality (9) (9) (9) Mortality Improvement (10) (10) (10) (1) Level percentage of payroll, closed (2) Non-Medicare: 7.5% for 2020, decreasing to an ultimate rate of 4.0% in 2076 Medicare: 6.5% for 2020, decreasing to an ultimate rate of 4.0% in 2076 (3) CalPERS 1997-2015 experience study (4) Postretirement mortality projected fully generational with Scale MP-2018 (5) Non-Medicare: 7.5% for 2022, decreasing to an ultimate rate of 4.0% in 2076 Medicare (Kaiser): 5.0% for 2022, decreasing to an ultimate rate of 4.0% in 2076 Medicare (Other): 6.1% for 2022, decreasing to an ultimate rate of 4.0% in 2076 (6) Postretirement mortality projected fully generational with Scale MP-2020 (7) Non-Medicare: 7.0% for 2022, decreasing to an ultimate rate of 4.0% in 2076 Medicare (Kaiser): 5.0% for 2022, decreasing to an ultimate rate of 4.0% in 2076 Medicare (Other): 6.1% for 2022, decreasing to an ultimate rate of 4.0% in 2076 (8) Non-Medicare: 8.5% for 2024, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Kaiser): 7.5% for 2024, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Other): 6.25% for 2024, decreasing to an ultimate rate of 3.45% in 2076 (9) CalPERS 2000-2019 experience study (10) Postretirement mortality projected fully generational with Scale MP-2021 * - Fiscal year 2018 was the first year of implementation; therefore, only seven years are shown. CASITAS MUNICIPAL WATER DISTRICT SCHEDULE OF CONTRIBUTIONS TO THE OPEB PLAN (CONTINUED) LAST TEN FISCAL YEARS* (80) Fiscal Year Ended June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 Actuarially Determined Contribution 1,311,681$ 1,273,193$ 1,372,064$ 1,331,790$ 1,714,977$ Contributions in Relation to the Actuarially Determined Contributions (584,787) (671,482) (696,270) (679,073) (884,244) Contribution Deficiency (Excess) 726,894$ 601,711$ 675,794$ 652,717$ 830,733$ Covered Employee Payroll 8,469,356$ 7,801,655$ 5,955,380$ 5,931,424$ 5,467,811$ Contributions as a Percentage of Covered Employee Payroll 6.90% 8.61% 11.69% 11.45% 16.17% Notes to Schedule: Valuation Date 6/30/2020 6/30/2020 6/30/2018 6/30/2018 6/30/2017 Methods and Assumptions Used to Determine Contributions Rates: Actuarial Cost Method Entry Age Entry Age Entry Age Entry Age Entry Age Amortization Method (1) (1) (1) (1) (1) Asset Valuation Method Fair Value Fair Value Fair Value Fair Value Fair Value Discount Rate 5.50% 5.50% 5.50% 5.50% 5.50% Inflation 2.75% 2.75% 2.75% 2.75% 2.75% Salary Increases 3.00% 3.00% 3.00% 3.00% 2.75% Investment Rate of Return 5.50% 5.50% 5.50% 5.50% 5.50% Medical Trend (7) (5) (2) (2) (2) Mortality (3) (3) (3) (3) (3) Mortality Improvement (6) (6) (4) (4) (4) (1) Level percentage of payroll, closed (2) Non-Medicare: 7.5% for 2020, decreasing to an ultimate rate of 4.0% in 2076 Medicare: 6.5% for 2020, decreasing to an ultimate rate of 4.0% in 2076 (3) CalPERS 1997-2015 experience study (4) Postretirement mortality projected fully generational with Scale MP-2018 (5) Non-Medicare: 7.5% for 2022, decreasing to an ultimate rate of 4.0% in 2076 Medicare (Kaiser): 5.0% for 2022, decreasing to an ultimate rate of 4.0% in 2076 Medicare (Other): 6.1% for 2022, decreasing to an ultimate rate of 4.0% in 2076 (6) Postretirement mortality projected fully generational with Scale MP-2020 (7) Non-Medicare: 7.0% for 2022, decreasing to an ultimate rate of 4.0% in 2076 Medicare (Kaiser): 5.0% for 2022, decreasing to an ultimate rate of 4.0% in 2076 Medicare (Other): 6.1% for 2022, decreasing to an ultimate rate of 4.0% in 2076 (8) Non-Medicare: 8.5% for 2024, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Kaiser): 7.5% for 2024, decreasing to an ultimate rate of 3.45% in 2076 Medicare (Other): 6.25% for 2024, decreasing to an ultimate rate of 3.45% in 2076 (9) CalPERS 2000-2019 experience study (10) Postretirement mortality projected fully generational with Scale MP-2021 * - Fiscal year 2018 was the first year of implementation; therefore, only seven years are shown. 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(82) SUPPLEMENTARY INFORMATION CASITAS MUNICIPAL WATER DISTRICT SCHEDULE OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION BUDGET TO ACTUAL YEAR ENDED JUNE 30, 2025 (83) Variance Final Positive/ Bud et Actual Ne ative OPERATING REVENUES Retail Water Consumption 7,071,265$ 8,033,874$ 962,609$ Wholesale Water Sales 2,492,650 2,574,516 81,866 Monthl Water Service Char e 6,565,471 6,570,736 5,265 Recreation Revenue 6,157,366 6,628,905 471,539 Other water char es and services 244,256 508,863 264,607 Total Operatin Revenues 22,531,008 24,316,894 1,785,886 OPERATING EXPENSES Fisheries 744,625 773,393 28,768 En ineerin 3,869,136 2,442,981 1,426,155 Water Treatment 2,757,794 2,652,983 104,811 Water Qualit 1,703,822 1,039,295 664,527 Utilities Maintenance 1,048,683 1,210,114 161,431 Electrical Mechanical 3,314,889 3,137,716 177,173 Pipeline 2,074,664 1,788,539 286,125 Recreation Ex enses 5,878,438 5,999,660 121,222 Operations Maintenance and Mana ement 1,566,104 1,687,881 121,777 General and Administrative 5,311,490 4,979,867 331,623 Chan e in Water-in-Stora e Inventor - 729,900 729,900 Total Operatin Expenses 28,269,645 26,442,329 3,287,116 OPERATING LOSS BEFORE DEPRECIATION (5,738,637 2,125,435 1,501,230 DEPRECIATION AND AMORTIZATION Depreciation - 3,925,908 3,925,908 Ri ht-to-Use Leased Asset Amortization - 147,758 147,758 SBITA Amortization - 249,297 249,297 Total Depreciation and Amortization - 4,322,963 4,322,963 OPERATING LOSS (5,738,637 6,448,398 2,821,733 NONOPERATING REVENUES EXPENSES Propert Taxes - Ad Valorem 2,970,549 3,340,319 369,770 Pass-Throu h Propert Tax Increment 342,373 490,947 148,574 Pro ert Tax Assessment for State Water Pro ect 1,277,767 1,395,222 117,455 State Water Pro ect Water Sales to Other A encies 1,000,000 1,000,000 - State Water Pro ect Expense 1,273,229 779,259 493,970 CFD 2013-1 Assessment 3,011,314 3,057,126 45,812 Mira Monte Assessment - - - Tax Collection Expense 37,735 56,546 18,811 Investment Earnin s 142,960 512,245 369,285 Interest Expense - Lon -Term Debt 3,196,114 2,375,477 820,637 Amortization of Bond Insurance on CFD 2013-1 - 20,241 20,241 Bond and Administrative Fees 34,775 36,501 1,726 Ad udication Char e 572,857 566,470 6,387 Ad udication Costs - 748,068 748,068 Loss on Disposition of Capital Assets - 4,540 4,540 Other, Net 41,420 2,343,665 2,302,245 Total Nonoperatin Revenues Expenses , Net 4,817,387 8,685,362 3,867,975 NET INCOME LOSS BEFORE CAPITAL CONTRIBUTIONS (921,250 2,236,964 6,689,708 CAPITAL CONTRIBUTIONS Federal, State, and Local Grants 1,004,472 1,476,148 471,676 Total Capital Contributions 1,004,472 1,476,148 471,676 CHANGE IN NET POSITION 83,222$ 3,713,112 7,161,384$ Net Position - Be innin of Year as Previousl Presented 44,640,407 Restatement 368,484 Net Position - Be innin of Year, as Restated 44,271,923 NET POSITION - END OF YEAR 47,985,035$ CASITAS MUNICIPAL WATER DISTRICT SCHEDULE OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION BUDGET TO ACTUAL YEAR ENDED JUNE 30, 2024 (84) Variance Final Positive/ Bud et Actual Ne ative OPERATING REVENUES Retail Water Consumption 7,079,353$ 4,978,739$ 2,100,614$ Wholesale Water Sales 2,205,987 1,349,832 856,155 Monthl Water Service Char e 6,278,140 6,008,900 269,240 Recreation Revenue 6,079,050 5,460,240 618,810 Other Water Char es and Services 190,673 270,839 80,166 Total Operatin Revenues 21,833,203 18,068,550 3,764,653 OPERATING EXPENSES Fisheries 707,807 755,804 47,997 En ineerin 10,858,895 2,904,477 7,954,418 Water Treatment 2,782,993 2,487,997 294,996 Water Qualit 1,467,126 846,449 620,677 Utilities Maintenance 1,036,230 1,089,643 53,413 Electrical Mechanical 3,130,850 2,855,417 275,433 Pipeline 1,969,706 1,666,320 303,386 Recreation Ex enses 5,795,396 5,478,328 317,068 Operations Maintenance and Mana ement 1,455,661 1,588,634 132,973 General and Administrative 5,628,235 4,888,371 739,864 Chan e in Water-in-Stora e Inventor - 4,951,793 4,951,793 Total O eratin Ex enses 34,832,899 19,609,647 5,319,666 OPERATING LOSS BEFORE DEPRECIATION (12,999,696 1,541,097 9,084,319 DEPRECIATION AND AMORTIZATION De reciation - 3,879,138 3,879,138 Ri ht-to-Use Leased Asset Amortization - 126,144 126,144 SBITA Amortization - 224,377 224,377 Total Depreciation and Amortization - 4,229,659 4,229,659 OPERATING LOSS (12,999,696 5,770,756 4,854,660 NONOPERATING REVENUES EXPENSES Propert Taxes - Ad Valorem 2,897,274 3,150,716 253,442 Pass-Throu h Propert Tax Increment 342,373 415,409 73,036 Pro ert Tax Assessment for State Water Pro ect 1,167,681 1,195,624 27,943 State Water Pro ect Water Sales to Other A encies 1,375,000 1,375,000 - State Water Pro ect Expense 1,163,828 979,475 184,353 CFD 2013-1 Assessment 2,950,230 2,963,060 12,830 Mira Monte Assessment - 65 65 Tax Collection Expense 44,300 56,101 11,801 Investment Earnin s 246,677 525,613 278,936 Interest Expense - Lon -Term Debt 3,137,614 2,415,549 722,065 Amortization of Bond Insurance on CFD 2013-1 - 20,241 20,241 Cost of Debt Issuance - - - Bond and Administrative Fees 39,775 30,767 9,008 Ad udication Char e 574,516 571,394 3,122 Ad udication Costs 574,516 144,448 430,068 Loss on Disposition of Capital Assets - 6,788 6,788 Other, Net 1,892,125 249,608 1,642,517 Total Nonoperatin Revenues Expenses , Net 6,485,843 6,793,120 307,277 NET LOSS BEFORE CAPITAL CONTRIBUTIONS (6,513,853 1,022,364 4,547,383 CAPITAL CONTRIBUTIONS Federal, State, and Local Grants 2,291,972 1,022,535 1,269,437 Total Capital Contributions 2,291,972 1,022,535 1,269,437 CHANGE IN NET POSITION (4,221,881$ 2,044,899 5,816,820$ Net Position - Be innin of Year as Previousl Presented 42,589,533 Restated 362,509 Net Position - Be innin of Yea 42,227,024 NET POSITION - END OF YEAR 44,271,923$ CASITAS MUNICIPAL WATER DISTRICT COMBINING BALANCE SHEET JUNE 30, 2025 (85) Improvement Operatin Financin Assessment Fund Fund Fund ASSETS AND DEFERRED OUTFLOWS OF RESOURCES CURRENT ASSETS Cash and Cash Equivalents 7,830,664$ -$ -$ Investments 11,023,796 - - Accrued Interest Receivable 72,962 - - Accounts Receivable, Net 6,240,578 - - Due from Other Funds - 14,226,045 1,893,688 Materials and Su lies Inventor 44,237 - - Prepaid expenses 717,170 - - Total Current Assets 25,929,407 14,226,045 1,893,688 NONCURRENT ASSETS Restricted - Cash and Cash Equivalents 4,787 - - Water-in-stora e Inventor 14,469,007 - - Capital Assets - Not Bein Depreciated 15,688,125 - - Capital Assets - Bein Depreciated, Net 78,838,101 - - Capital Assets, Intan ible Asset - Ri ht-to-Use Leased Asset, Net 502,995 - - Ca ital Assets, Intan ible Asset - SBITA, Net 353,290 - - Total Noncurrent Assets 109,856,305 - - Total Assets 135,785,712 14,226,045 1,893,688 DEFERRED OUTFLOWS OF RESOURCES Deferred Loss on CFD 2013-1 2,453,301 - - OPEB Related Deferred Outflows of Resources 3,920,574 - - Pension Related Deferred Outflows of Resources 4,143,170 - - Total Deferred Outflows of Resources 10,517,045 - - Total Assets and Deferred Outflows of Resources 146,302,757$ 14,226,045$ 1,893,688$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION CURRENT LIABILITIES Accounts Pa able and Accrued Expenses 1,828,671$ -$ -$ De osits 1,066,672 - - Accrued Interest Pa able 796,454 - - Unearned Revenue 758,148 - - Due to Other Funds 16,169,957 - - Lon -Term Liabilities - Due Within One Year: Compensated Absences 716,117 - - Claims Liabilit 224,575 - - Lease Liabilit 148,273 - - SBITA Liabilit 239,250 - - Lon -Term Debt 1,092,885 - - Total Current Liabilities 23,041,002 - - NONCURRENT LIABILITIES Lon -Term Liabilities - Due in More Than One Year: Com ensated Absences 1,074,173 - - Claims Liabilit 56,610 - - Lease Liabilit 335,638 - - SBITA Liabilit 77,391 - - Lon -Term Debt 57,057,286 - - Net OPEB Liabilit 12,063,469 - - Net Pension Liabilit 12,432,401 - - Total Noncurrent Liabilities 83,096,968 - - Total Liabilities 106,137,970 - - DEFERRED INFLOWS OF RESOURCES OPEB Related Deferred Inflows of Resources 9,188,629 - - Pension Related Deferred Inflows of Resources 41,942 - - Total Deferred Inflows of Resources 9,230,571 - - NET POSITION Net Investment in Capital Assets 38,624,685 - - Restricted for Ad udication - - - Unrestricted 7,690,469 14,226,045 1,893,688 Total Net Position 30,934,216 14,226,045 1,893,688 Total Liabilities, Deferred Inflows of Resources, and Net Position 146,302,757$ 14,226,045$ 1,893,688$ CASITAS MUNICIPAL WATER DISTRICT COMBINING BALANCE SHEET (CONTINUED) JUNE 30, 2025 (86) Elimination Ad udication for Financial Fund Re ortin Total ASSETS AND DEFERRED OUTFLOWS OF RESOURCES CURRENT ASSETS Cash and Cash Equivalents 807,656$ -$ 8,638,320$ Investments - - 11,023,796 Accrued Interest Receivable - - 72,962 Accounts Receivable, Net 118,032 - 6,358,610 Due from Other Funds 50,224 16,169,957 - Materials and Su lies Inventor - - 44,237 Prepaid expenses - - 717,170 Total Current Assets 975,912 16,169,957 26,855,095 NONCURRENT ASSETS Restricted - Cash and Cash Equivalents - - 4,787 Water-in-stora e Inventor - - 14,469,007 Capital Assets - Not Bein Depreciated - - 15,688,125 Capital Assets - Bein Depreciated, Net - - 78,838,101 Capital Assets, Intan ible Asset - Ri ht-to-Use Leased Asset, Net - - 502,995 Ca ital Assets, Intan ible Asset - SBITA, Net - - 353,290 Total Noncurrent Assets - - 109,856,305 Total Assets 975,912 16,169,957 136,711,400 DEFERRED OUTFLOWS OF RESOURCES Deferred Loss on CFD 2013-1 - - 2,453,301 OPEB Related Deferred Outflows of Resources - - 3,920,574 Pension Related Deferred Outflows of Resources - - 4,143,170 Total Deferred Outflows of Resources - - 10,517,045 Total Assets and Deferred Outflows of Resources 975,912$ 16,169,957$ 147,228,445$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION CURRENT LIABILITIES Accounts Pa able and Accrued Expenses 44,826$ -$ 1,873,497$ De osits and Unearned Revenue - - 1,066,672 Accrued Interest Pa able - - 796,454 Accrued Interest Pa able - - 758,148 Due to Other Funds - 16,169,957 - Lon -Term Liabilities - Due Within One Year: Compensated Absences - - 716,117 Assessment Bonds Pa able - - 224,575 Lease Liabilit - - 148,273 SBITA Liabilit - - 239,250 Lon -Term Debt - - 1,092,885 Total Current Liabilities 44,826 16,169,957 6,915,871 NONCURRENT LIABILITIES Lon -Term Liabilities - Due in More Than One Year: Com ensated Absences - - 1,074,173 Claims Liabilit - - 56,610 Lease Liabilit - - 335,638 SBITA Liabilit - - 77,391 Lon -Term Debt - - 57,057,286 Net OPEB Liabilit - - 12,063,469 Net Pension Liabilit - - 12,432,401 Total Noncurrent Liabilities - - 83,096,968 Total Liabilities 44,826 16,169,957 90,012,839 DEFERRED INFLOWS OF RESOURCES OPEB Related Deferred Inflows of Resources - - 9,188,629 Pension Related Deferred Inflows of Resources - - 41,942 Total Deferred Inflows of Resources - - 9,230,571 NET POSITION Net Investment in Capital Assets - - 38,624,685 Restricted for Ad udication 931,086 - 931,086 Unrestricted - - 8,429,264 Total Net Position 931,086 - 47,985,035 Total Liabilities, Deferred Inflows of Resources, and Net Position 975,912$ 16,169,957$ 147,228,445$ CASITAS MUNICIPAL WATER DISTRICT COMBINING BALANCE SHEET JUNE 30, 2024 (87) Improvement Operatin Financin Assessment Fund Fund Fund ASSETS AND DEFERRED OUTFLOWS OF RESOURCES CURRENT ASSETS Cash and Cash Equivalents 5,345,709$ -$ -$ Investments 9,684,841 - - Accrued Interest Receivable 54,533 - - Accounts Receivable, Net 3,174,287 - - Due from Other Funds - 12,952,339 2,466,339 Materials and Supplies Inventor 56,722 - - Prepaid Expenses 970,764 - - Total Current Assets 19,286,856 12,952,339 2,466,339 NONCURRENT ASSETS Restricted - Cash and Cash Equivalents 135,021 - - Water-in-Stora e Inventor 15,198,908 - - Capital Assets - Not Bein Depreciated 13,514,383 - - Capital Assets - Bein Depreciated, Net 80,902,262 - - Capital Assets, Intan ible Asset - Ri ht-to-Use Leased Asset, Net 447,216 - - Capital Assets, Intan ible Asset - SBITA, Net 528,018 - - Total Noncurrent Assets 110,725,808 - - Total Assets 130,012,664 12,952,339 2,466,339 DEFERRED OUTFLOWS OF RESOURCES Deferred Loss on CFD 2013-1 2,659,172 - - OPEB Related Deferred Outflows of Resources 4,611,611 - - Pension Related Deferred Outflows of Resources 5,194,562 - - Total Deferred Outflows of Resources 12,465,345 - - Total Assets and Deferred Outflows of Resources 142,478,009$ 12,952,339$ 2,466,339$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION CURRENT LIABILITIES Accounts Pa able and Accrued Expenses 1,141,037$ -$ -$ Deposits 106,286 - - Accrued Interest Pa able 820,177 - - Unearned Revenue 683 425 - - Due to Other Funds 15,500,407 - - Lon -Term Liabilities - Due Within One Year: Compensated Absences 679,447 - - Reimbursement Agreement 288,397 - - Lease Liabilit 104,802 - - SBITA Liabilit 234,125 - - Lon -Term Debt 1,003,377 - - Total Current Liabilities 20,561,480 - - NONCURRENT LIABILITIES Lon -Term Liabilities - Due in More Than One Year: Compensated Absences 1,019,167 - - Claims Liabilit 85,463 - - Lease Liabilit 294,469 - - SBITA Liabilit 257,552 - - Lon -Term Debt 58,351,599 - - Net OPEB Liabilit 11,176,458 - - Net Pension Liabilit 12,453,797 - - Total Noncurrent Liabilities 83,638,505 - - Total Liabilities 104,199,985 - - DEFERRED INFLOWS OF RESOURCES OPEB Related Deferred Inflows of Resources 10,428,644 - - Pension Related Deferred Inflows of Resources 108,857 - - Total Deferred Inflows of Resources 10,537,501 - - NET POSITION Net Investment in Capital Assets 37,576,774 - - Restricted for Improvement Assessment - - - Restricted for Ad udication - - - Unrestricted 9,836,251 12,952,339 2,466,339 Total Net Position 27,740,523 12,952,339 2,466,339 Total Liabilities, Deferred Inflows of Resources, and Net Position 142,478,009$ 12,952,339$ 2,466,339$ CASITAS MUNICIPAL WATER DISTRICT COMBINING BALANCE SHEET (CONTINUED) JUNE 30, 2024 (88) Elimination Ad udication for Financial Fund Reportin Total ASSETS AND DEFERRED OUTFLOWS OF RESOURCES CURRENT ASSETS Cash and Cash Equivalents 966,764$ -$ 6,312,473$ Investments - - 9,684,841 Accrued Interest Receivable - - 54,533 Accounts Receivable, Net 134,691 - 3,308,978 Due from Other Funds 81,729 15,500,407 - Materials and Supplies Inventor - - 56,722 Prepaid Expenses - - 970,764 Total Current Assets 1,183,184 15,500,407 20,388,311 NONCURRENT ASSETS Restricted - Cash and Cash Equivalents - - 135,021 Water-in-Stora e Inventor - - 15,198,908 Capital Assets - Not Bein Depreciated - - 13,514,383 Capital Assets - Bein Depreciated, Net - - 80,902,262 Capital Assets, Intan ible Asset - Ri ht-to-Use Leased Asset, Net - - 447,216 Capital Assets, Intan ible Asset - SBITA, Net - - 528,018 Total Noncurrent Assets - - 110,725,808 Total Assets 1,183,184 15,500,407 131,114,119 DEFERRED OUTFLOWS OF RESOURCES Deferred Loss on CFD 2013-1 - - 2,659,172 OPEB Related Deferred Outflows of Resources - - 4,611,611 Pension Related Deferred Outflows of Resources - - 5,194,562 Total Deferred Outflows of Resources - - 12,465,345 Total Assets and Deferred Outflows of Resources 1,183,184$ 15,500,407$ 143,579,464$ LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION CURRENT LIABILITIES Accounts Pa able and Accrued Expenses 70,462$ -$ 1,211,499$ Deposits and Unearned Revenue - - 106,286 Accrued Interest Pa able - - 820,177 Accrued Interest Pa able - - 683 425 Due to Other Funds - 15,500,407 - Lon -Term Liabilities - Due Within One Year: Compensated Absences - - 679,447 Reimbursement Agreement - - 288,397 Lease Liabilit - - 104,802 SBITA Liabilit - - 234,125 Lon -Term Debt - - 1,003,377 Total Current Liabilities 70,462 15,500,407 5,131,535 NONCURRENT LIABILITIES Lon -Term Liabilities - Due in More Than One Year: Compensated Absences - - 1,019,167 Reimbursement A reement - - 85,463 Lease Liabilit - - 294,469 SBITA Liabilit - - 257,552 Lon -Term Debt - - 58,351,599 Net OPEB Liabilit - - 11,176,458 Net Pension Liabilit - - 12,453,797 Total Noncurrent Liabilities - - 83,638,505 Total Liabilities 70,462 15,500,407 88,770,040 DEFERRED INFLOWS OF RESOURCES OPEB Related Deferred Inflows of Resources - - 10,428,644 Pension Related Deferred Inflows of Resources - - 108,857 Total Deferred Inflows of Resources - - 10,537,501 NET POSITION Net Investment in Capital Assets - - 37,576,774 Restricted for Improvement Assessment - - - Restricted for Ad udication 1,112,722 - 1,112,722 Unrestricted - - 5,582,427 Total Net Position 1,112,722 - 44,271,923 Total Liabilities, Deferred Inflows of Resources, and Net Position 1,183,184$ 15,500,407$ 143,579,464$ CASITAS MUNICIPAL WATER DISTRICT COMBINING SCHEDULE OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2025 (89) Water Recreation Adjudication Fund Fund Fund Total OPERATING REVENUES Retail Water Consumption 8,033,874$ -$ -$ 8,033,874$ Wholesale Water Sales 2,574,516 - - 2,574,516 Monthly Water Service charge 6,570,736 - - 6,570,736 Recreation Revenue - 6,628,905 - 6,628,905 Other Water Charges and Services 508,863 - - 508,863 Total Operating Revenues 17,687,989 6,628,905 - 24,316,894 OPERATING EXPENSES Fisheries 773,393 - - 773,393 Engineering 2,442,981 - - 2,442,981 Water Treatment 2,652,983 - - 2,652,983 Water Quality 1,039,295 - - 1,039,295 Utilities Maintenance 1,210,114 - - 1,210,114 Electrical Mechanical 3,137,716 - - 3,137,716 Pipeline 1,788,539 - - 1,788,539 Recreation Expenses - 5,999,660 - 5,999,660 Operations Maintenance and Management 1,687,881 - - 1,687,881 General and Administrative 4,979,867 - - 4,979,867 Change in Water-in-Storage Inventory 729,900 - - 729,900 Total Operating Expenses 20,442,669 5,999,660 - 26,442,329 OPERATING LOSS BEFORE DEPRECIATION (2,754,680) 629,245 - (2,125,435) DEPRECIATION AND AMORTIZATION Depreciation (3,443,851) (482,057) - (3,925,908) Right-to-Use Lease Asset Amortization (124,612) (23,146) - (147,758) SBITA Amortization (220,327) (28,970) - (249,297) Total Depreciation and Amortization (3,788,790) (534,173) - (4,322,963) OPERATING LOSS (6,543,470) 95,072 - (6,448,398) NONOPERATING REVENUES (EXPENSES) Property Taxes - Ad Valorem 3,340,319 - - 3,340,319 Pass-Through Property Tax Increment 490,947 - - 490,947 Property Tax Assessment for State Water Project 1,395,222 - - 1,395,222 State Water Project Water Sales to Other Agencies 1,000,000 - - 1,000,000 State Water Project Expense (779,259) - - (779,259) CFD 2013-1 Assessment 3,057,126 - - 3,057,126 Tax Collection Expense (56,546) - - (56,546) Investment Earnings 512,245 - - 512,245 Interest Expense - Long-Term Debt (2,375,477) - - (2,375,477) Amortization of Bond Insurance on CFD 2013-1 (20,241) - - (20,241) Bond and Administrative Fees (36,501) - - (36,501) Adjudication Charge - - 566,470 566,470 Adjudication Costs - - (748,068) (748,068) Loss on Disposition of Capital Assets (4,540) - - (4,540) Other, Net 2,343,665 - - 2,343,665 Total Nonoperating Revenues (Expenses), Net 8,866,960 - (181,598) 8,685,362 NET INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS 2,323,490 95,072 (181,598) 2,236,964 CAPITAL CONTRIBUTIONS Federal, State, and Local Grants 1,367,111 109,037 - 1,476,148 Total Capital Contributions 1,367,111 109,037 - 1,476,148 CHANGE IN NET POSITION 3,690,601$ 204,109$ (181,598)$ 3,713,112$ CASITAS MUNICIPAL WATER DISTRICT COMBINING SCHEDULE OF REVENUE, EXPENSES, AND CHANGES IN NET POSITION YEAR ENDED JUNE 30, 2024 (90) Water Recreation Adjudication Fund Fund Fund Total OPERATING REVENUES Retail Water Consumption 4,978,739$ -$ -$ 4,978,739$ Wholesale Water Sales 1,349,832 - - 1,349,832 Monthly Water Service Charge 6,008,900 - - 6,008,900 Recreation Revenue - 5,460,240 - 5,460,240 Other Water Charges and Services 270,839 - - 270,839 Total Operating Revenues 12,608,310 5,460,240 - 18,068,550 OPERATING EXPENSES Fisheries 755,804 - - 755,804 Engineering 2,904,477 - - 2,904,477 Water Treatment 2,487,997 - - 2,487,997 Water Quality 846,449 - - 846,449 Utilities Maintenance 1,089,643 - - 1,089,643 Electrical Mechanical 2,855,417 - - 2,855,417 Pipeline 1,666,320 - - 1,666,320 Recreation Expenses - 5,478,328 - 5,478,328 Operations Maintenance and Management 1,588,634 - - 1,588,634 General and Administrative 4,888,371 - - 4,888,371 Change in Water-in-Storage Inventory (4,951,793) - - (4,951,793) Total Operating Expenses 14,131,319 5,478,328 - 19,609,647 OPERATING LOSS BEFORE DEPRECIATION (1,523,009) (18,088) - (1,541,097) DEPRECIATION AND AMORTIZATION Depreciation (3,435,958) (443,180) - (3,879,138) Right-to-Use Leased Asset Amortization (105,573) (20,571) - (126,144) SBITA Amortization (199,249) (25,128) - (224,377) Total Depreciation and Amortization (3,740,780) (488,879) - (4,229,659) OPERATING LOSS (5,263,789) (506,967) - (5,770,756) NONOPERATING REVENUES (EXPENSES) Property Taxes - Ad Valorem 3,150,716 - - 3,150,716 Pass-Through Property Tax Increment 415,409 - - 415,409 Property Tax Assessment for State Water Project 1,195,624 - - 1,195,624 State Water Project Water Sales to Other Agencies 1,375,000 - - 1,375,000 State Water Project Expense (979,475) - - (979,475) CFD 2013-1 Assessment 2,963,060 - - 2,963,060 Mira Monte Assessment 65 - - 65 Tax Collection Expense (56,101) - - (56,101) Investment Earnings 525,613 - - 525,613 Interest expense - Long-Term Debt (2,415,549) - - (2,415,549) Amortization of Bond Insurance on CFD 2013-1 (20,241) - - (20,241) Bond and Administrative Fees (30,767) - - (30,767) Adjudication Charge - - 571,394 571,394 Adjudication Costs - - (144,448) (144,448) Other, Net 249,608 - - 249,608 Total Nonoperating Revenues (Expenses), Net 6,366,174 - 426,946 6,793,120 NET INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS 1,102,385 (506,967) 426,946 1,022,364 CAPITAL CONTRIBUTIONS Federal, State, and Local Grants 933,287 89,248 - 1,022,535 Total Capital Contributions 933,287 89,248 - 1,022,535 CHANGE IN NET POSITION 2,035,672$ (417,719)$ 426,946$ 2,044,899$ CASITAS MUNICIPAL WATER DISTRICT DETAIL SCHEDULES OF OPERATING EXPENSES UTILITY DEPARTMENT YEARS ENDED JUNE 30, 2025 AND 2024 (91) 2025 2024 FISHERIES Clothin and Personal Supplies 544$ 676$ Communications 2,876 3,370 Computer Up rades - Hardware and Software 601 476 District E ui ment 8,413 4,599 Education and Trainin 2,554 3,000 Insurance 119 119 Memberships and Dues 125 125 OPEB and Pension 80,536 62,929 Outside Contracts 31 20,000 Posta e 156 - Salaries and Benefits 654,384 640,462 Services and Su lies 22,506 9,299 Travel 548 10,749 Total Fisheries 773,393 755,804 ENGINEERING Advertisin and Le al Notices 443 - Books and Publications 320 - Clothin and Personal Supplies 1,233 1,663 Communications 5,172 4,834 Computer Up rades - Hardware and Software 33,384 17,584 Education and Trainin 2,100 3,893 District Equipment 6,147 5,160 Gau in Stations 14,528 17,860 Januar 2023 Storms 3,696 850,419 Insurance 228 227 Licenses and Permits 58,021 61,433 Membershi Dues 300 1,355 OPEB and Pension 111,194 88,264 Other Professional Fees - 688 Outside Contracts 475,367 180,616 Posta e 62 2 Pre-Emplo ment Screenin - 50 Private Vehicle Milea e 365 685 Salaries and Benefits 1,146,542 1,192,145 Service and Supplies/Outside Contracts 583,829 477,448 Small Tools 50 - Travel - 151 Total En ineerin 2,442,981 2,904,477 CASITAS MUNICIPAL WATER DISTRICT DETAIL SCHEDULES OF OPERATING EXPENSES (CONTINUED) UTILITY DEPARTMENT YEARS ENDED JUNE 30, 2025 AND 2024 (92) 2025 2024 WATER TREATMENT Ammonia 36,812$ 23,103$ Caustics 74,284 35,241 Chlorine 167,677 126,458 Clothin and Personal Su lies 9,256 6,883 Communications 34,484 32,230 Computer Up rades - Hardware and Software 1,242 - District Equipment 28,762 20,796 Education and Trainin 1,009 1,219 Ferric 15,665 8,244 Insurance 205 260 Licenses and Permits 12,411 11,962 Liquid Ox en 170,073 205,560 OPEB and Pension 112,130 115,157 Outside Contracts 144,060 76,411 Pol mer 27,514 25,325 Posta e 248 166 Pre-Emplo ment Screenin 32 - Salaries and Benefits 1,263,344 1,240,310 Service and Su lies 343,316 296,688 Small Tools 7,769 8,520 Travel 384 75 Uninsured Losses - In uries 55,575 8,700 Utilities 221,299 161,424 Workers' Compensation 36,582 100,665 Total Water Treatment 2,652,983 2,487,997 WATER QUALITY Advertisin and Le al Notices 217 199 Books and Publications - - Clothin and Personal Su lies 1,490 1,953 Communications 1,757 1,746 Computer Up rades - Hardware and Software 1,587 - District Equipment 13,205 6,444 Education and Trainin 3,005 115 Insurance 168 191 Licenses and Permits 63,762 52,970 OPEB and Pension 58,699 51,814 Outside Contracts 129,208 101,848 Posta e 707 823 Printin and Bindin 212 313 Salaries and Benefits 654,252 584,072 Service and Supplies 110,367 43,931 Small Tools 147 - Travel 512 30 Total Water Qualit 1,039,295 846,449 CASITAS MUNICIPAL WATER DISTRICT DETAIL SCHEDULES OF OPERATING EXPENSES (CONTINUED) UTILITY DEPARTMENT YEARS ENDED JUNE 30, 2025 AND 2024 (93) 2025 2024 UTILITIES MAINTENANCE Clothin and Personal Supplies 8,549$ 6,828$ Communications 4,134 3,529 Computer Up rades - Hardware and Software 1,171 1,039 District E ui ment 54,792 66,957 Education and Trainin 3,128 2,909 Insurance 321 309 Licenses and Permits 652 267 OPEB and Pension 62,925 56,925 Outside Contracts 7,105 - Pre-Emplo ment Screenin - 25 Posta e - - Private Vehicle Milea e 265 - Salaries and Benefits 770,251 726,942 Service and Supplies 290,505 216,006 Small Tools 6,215 6,402 Travel 101 1,505 Utilities - - Total Utilities Maintenance 1,210,114 1,089,643 ELECTRICAL MECHANICAL Clothin and Personal Supplies 4,240 9,149 Communications 19,264 19,865 Computer Up rades - Hardware and Software 431 1,103 District Equipment 44,857 39,617 Education and Trainin 2,867 1,535 Insurance 168 157 Licenses and Permits 256,379 167,872 OPEB and Pension 40,969 49,638 Outside Contracts 201,377 113,322 Posta e 119 - Power Purchased 1,737,945 1,434,028 Pre-Emplo ment Screenin - 184 Private Vehicle Milea e - 133 Salaries and Benefits 743,508 679,310 Service and Supplies 44,840 129,562 Small Tools 5,718 5,974 Travel - 888 Uninsured Losses - In uries 2,005 131,933 Utilities 29,442 28,644 Workers' Compensation 7,597 42,503 Total Electrical Mechanical 3,137,716 2,855,417 CASITAS MUNICIPAL WATER DISTRICT DETAIL SCHEDULES OF OPERATING EXPENSES (CONTINUED) UTILITY DEPARTMENT YEARS ENDED JUNE 30, 2025 AND 2024 (94) 2025 2024 OPERATIONS MAINTENANCE AND MANAGEMENT Clothin and Personal Supplies 7,630$ 8,189$ Communications 4,797 5,089 Computer Up rades - Hardware and Software 7,596 585 District E ui ment 48,156 48,063 Education and Trainin 1,853 6,775 Insurance 257 244 Licenses and Permits 937 830 Office Su lies 310 325 OPEB and Pension 146,717 133,554 Outside Contracts 127,886 110,105 Salaries and Benefits 1,263,052 1,189,581 Service and Su lies 70,542 69,794 Small Tools 8,148 15,500 Total Operations Maintenance and Mana ement 1,687,881 1,588,634 PIPELINE Clothin and Personal Supplies 10,259 4,982 Communications 3,446 4,050 Computer Up rades - Hardware and Software 2,560 2,205 Education and Trainin 3,308 8,790 District Equipment 136,998 71,738 Insurance 179 179 Workers' Com ensation 5,250 98,686 Licenses and Permits 674 928 OPEB and Pension 79,159 65,193 Outside Contracts 131,348 99,954 Pre-Em lo ment Screenin - - Propert Losses for Operation 32,261 24,897 Salaries and Benefits 955,362 891,723 Service and Supplies 414,120 332,114 Small Tools 3,576 1,881 Travel 4,674 3,585 Uninsured Losses - In uries 1,352 47,107 Utilities 6,717 8,308 Total Pi eline 1,788,539 1,666,320 CASITAS MUNICIPAL WATER DISTRICT DETAIL SCHEDULES OF OPERATING EXPENSES (CONTINUED) UTILITY DEPARTMENT YEARS ENDED JUNE 30, 2025 AND 2024 (95) 2025 2024 GENERAL AND ADMINISTRATIVE Advertisin and Le al Notices 4,901$ 8,840$ Bad Debt Provision 13,284 19,670 Bank Char es/Credit Card Fees 55,491 68,967 Books and Publications 72 167 Clothin and Personal Supplies 1,326 1,418 Communications 45,636 52,774 Computer Up rades - Hardware and Software 50,145 40,755 Directors Election Fees 9,308 - District Equipment 8,776 763 Education and Trainin 3,538 5,598 Gains/losses on Inventor 2,827 1,995 Insurance 966 1,552 Insurance - Liabilit 101,977 94,007 Workers' Compensation 261,485 237,441 Licenses and Permits 4,489 5,036 Memberships and Dues 81,603 78,351 Office Equipment Maintenance 21,595 6,028 Office Supplies 10,101 3,624 OPEB and Pension 387,901 315,150 Other Professional Services 153,221 197,998 Outside Contracts 95,227 112,893 Posta e 4,401 12,644 Pre-Emplo ment Screenin 32 - Printin and Bindin 6,080 10,428 Private Vehicle Milea e 21 86 Purchased Wate 3,573 1,643 Safet Pro ram 50 - Salaries and Benefits 4,104,965 4,024,679 Service and Supplies 41,380 67,721 Small Tools 77 79 Travel 1,246 4,389 Uninsured Losses - In uries 1,517 32,613 Utilities 74,646 61,240 Vehicle Costs Direct - 2,683 Workers Compensation 1,626 3,208 Administrative Overhead Burden 544,014 542,739 Total General and Administrative 4,979,867 4,888,371 CHANGE IN WATER-IN-STORAGE INVENTORY Chan e in Water-in-Stora e Inventor 729,900 4,951,793 Total Chan e in Water-in-Stora e Inventor 729,900 4,951,793 DEPRECIATION AND AMORTIZATION EXPENSE De reciation - Water De artment 3,443,851 3,435,958 Ri ht-to-Use Lease Asset Amortization - Water Department 124,612 105,573 SBITA Amortization - Water Department 220,327 199,249 Total Depreciation and Amortization Expense 3,788,790 3,740,780 Total Operatin Expenses - Water Department 24,231,459$ 17,872,099$ CASITAS MUNICIPAL WATER DISTRICT DETAIL SCHEDULES OF OPERATING REVENUES AND EXPENSES RECREATION DEPARTMENT YEARS ENDED JUNE 30, 2025 AND 2024 (96) 2025 2024 RECREATION REVENUE Animal Permit 8,764$ 24,940$ Boat Fees - Annual 52,860 39,488 Boat Fees - Dail 22,590 13,800 Boat Fees - Overni ht 685 475 Boat Inspection Fees - Qua a 15,737 8,065 Boat Lock Revenue - Qua a 250 1,500 Boat Rental - Concession 118,751 108,725 Café - Concession 98,572 83,198 Campin Fees 2,818,103 2,141,360 Commercials 10,500 3,500 Event Reimbursement - 1,185 Events 53,764 40,524 Gift Cards and Certificates 5,595 766 Ka ak and Canoes Annual 3,319 1,957 Ka ak and Canoes Dail 152 145 Miscellaneous Revenue 3,000 4,063 Over/Short - Recreation 4,471 716 Park Store 87,505 84,606 Reservations 264,960 261,097 Shower Facilit Fees 48,233 43,185 Trailer Stora e Fees 343,158 329,499 Vehicle Fees - Dail 784,719 680,710 Violation Ordinance Fees 4,900 3,261 Visitor Cards 260,315 230,869 Water Park - Group Pass Fees 42,321 108 Water Park - Life uard Trainin 3,780 3,120 Water Park - Reservation Fee 107,244 20,785 Water Park - Season Pass Fee 23,630 6,300 Water Park - Shade Rental Fee 26,675 20,100 Water Park - Sin le S lash Fee 1,381,298 1,280,475 Water Park - Water Fitness Fee 11,455 6,212 Water Park - Snack Ba 21,599 15,722 Total Recreation Revenue 6,628,905 5,460,240 CASITAS MUNICIPAL WATER DISTRICT DETAIL SCHEDULES OF OPERATING REVENUES AND EXPENSES (CONTINUED) RECREATION DEPARTMENT YEARS ENDED JUNE 30, 2025 AND 2024 (97) 2025 2024 RECREATION EXPENSES Administrative Overhead Burden 544,014$ 542,739$ Advertisin and Le al Notices 21,879 834 Bad Debt Provision 4,516 13,918 Chemicals - Water Pla round 68,506 63,064 Chlorine - - Clothin and Personal Supplies 17,630 22,717 Communications 49,542 49,062 Com uter U rades - Hardware and Software 32,333 23,259 Credit Card Fees 110,477 170,616 District Equipment 312,090 97,896 Education and Trainin 3,785 6,811 Insurance 561 560 Workers' Compensation 10,176 28,512 Licenses and Permits 11,342 9,977 Membershi s and Dues 10,489 1,481 Office Supplies 2,530 1,360 OPEB and Pension 220,882 195,415 Other Professional Services - 9,458 Outside Contracts 435,131 350,321 Posta e 133 139 Pre-Emplo ment Screenin 8,157 16,678 Printin and Bindin 1,821 6,687 Public Information Pro ram 375 - Purchased Wate 85,065 75,221 Safet Pro ram 1,978 3,697 Salaries and Benefits 3,618,315 3,400,707 Service and Supplies 84,505 142,266 Small Tools 4,977 2,039 Travel 127 1,065 Uninsured Losses - In uries 27,943 478 Utilities 362,470 240,010 Vehicle Costs Direct - 1,341 Total Recreation Ex enses 5,999,660 5,478,328 RECREATION OPERATING LOSS BEFORE DEPRECIATION 629,245 18,088 DEPRECIATION AND AMORTIZATION EXPENSE Depreciation - Recreation Department 482,057 443,180 Ri ht-to-Use Lease Asset Amortization - Recreation Department 23,146 20,571 SBITA Amortization - Recreation De artment 28,970 25,128 Total Depreciation and Amortization Expense 534,173 488,879 Recreation Operatin Loss 147,188$ 461,268$ CASITAS MUNICIPAL WATER DISTRICT DETAIL SCHEDULES OF OPERATING REVENUES AND EXPENSES ADJUDICATION FUND YEARS ENDED JUNE 30, 2025 AND 2024 (98) 2025 2024 OPERATING REVENUES -$ -$ OPERATING EXPENSES - - OPERATING INCOME LOSS - - NONOPERATING REVENUES EXPENSES Ad udication Char e 566,470 571,394 Ad udication Costs 748,068 144,448 Total Nonoperatin Revenues Expenses , Net 181,598 426,946 CHANGE IN NET POSITION (181,598$ 426,946$ (99) This page intentionally left blank. (100) STATISTICAL SECTION (101) This page intentionally left blank. CASITAS MUNICIPAL WATER DISTRICT OVERVIEW OF STATISTICAL INFORMATION PRESENTED IN FIVE CATEGORIES (102) Overview of Statistical Information Presented in Five Categories Financial Trend Information – Intended to assist users in understanding and assessing how a District’s financial position has changed over time. Revenue Capacity Information – Intended to assist users in understanding and assessing the factors affecting a District’s ability to generate own revenue. Debt Capacity Information – Intended to assist users in understanding and assessing a District’s debt burden and its ability to issue additional debt. Demographic and Economic Information – Intended to assist users in understanding the socioeconomic environment within which a District operates and to provide information that facilitates comparison of financial statement information over time and among agencies. Operating Information – Intended to provide information about a District’s operations and resources in order to assist readers in using financial statement information to understand and assess an agencies economic condition. CASITAS MUNICIPAL WATER DISTRICT CHANGES IN NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (103) 2016 2017 2018 2019 Changes in net position: Operating revenues 12,869,735$ 12,758,081$ 14,829,805$ 14,622,822$ Operating expenses (15,125,091) (12,752,327) (17,651,671) (15,204,627) Depreciation and amortization (3,174,681) (3,736,067) (4,195,538) (4,116,269) Operating Income (loss) (5,430,037)$ (3,730,313)$ (7,017,404)$ (4,698,074)$ Non-operating revenues (expenses) Property taxes 2,292,477 2,258,529 2,408,940 2,549,312 State Water Property Tax Assessment 730,400 151,501 369,167 728,773 CFD 2013-1 assessment 454,543 601,938 2,592,342 2,653,389 Bond and Administrative Fees - - - - Mira Monte assessment 19,049 19,280 19,012 19,159 State Water Project Water Sales to other Agencies - - - 749,823 Property tax collection expense (32,050) (27,679) (38,038) (39,366) Investment income (loss) 718,495 (342,956) (84,090) 1,413,695 State water project expense (183,384) (266,509) (616,152) (716,634) Interest expense & Amortization of deferred loss and bond insurance (62,438) (187,096) (1,859,860) (1,646,282) Acquisition expense of CFD 2013-1 - (3,975,600) - - Cost of debt issuance - (539,160) - - Adjudication - - - - Loss on Disposition of Capital Assets - - - - Other revenue(expense), net 41,386 71,382 42,651 62,385 Total non-operating revenues (expenses),net 3,978,478 (2,236,370) 2,833,972 5,774,254 Net Income Before capital contributions (1,451,559) (5,966,683) (4,183,432) 1,076,180 Capital contributions 844,524 230,644 220,264 537,395 Change in net position (607,035)$ (5,736,039)$ (3,963,168)$ 1,613,575$ Net position by component: Net investment in capital assets 53,720,578$ 35,176,319$ 34,740,555$ 39,302,535$ Restricted 115,220 8,510,347 5,848,185 19,296 Unrestricted 16,491,138 20,904,213 19,441,172 22,321,656 Total net position 70,326,936$ 64,590,879$ 60,029,912$ 61,643,487$ Notes: FY2018 the District made a prior period adjustment of $(597,799) FY2022 Restatement for Subscription Based Information Technology Arrangements (SBITA) FY2024 Restatement for Compensated Absences Source: Casitas Municipal Water District Administration Department Fiscal Yea -12000000 -10000000 -8000000 -6000000 -4000000 -2000000 0 2000000 4000000 6000000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Ch a n g e i n N e t P o s i t i o n Fiscal Year CASITAS MUNICIPAL WATER DISTRICT CHANGES IN NET POSITION BY COMPONENT (CONTINUED) LAST TEN FISCAL YEARS (104) 2020 2021 2022 2023 2024 2025 Changes in net position: Operating revenues 13,868,822$ 20,530,274$ 21,098,844$ 17,735,393$ 18,068,550$ 24,316,894$ Operating expenses (23,707,662) (23,065,487) (23,814,713) (22,238,226) (19,609,647) (26,442,329) Depreciation and amortization (4,600,052) (4,673,866) (4,409,404) (4,143,938) (4,229,659) (4,322,963) Operating Income (loss) (14,438,892)$ (7,209,079)$ (7,125,273)$ (8,646,771)$ (5,770,756)$ (6,448,398)$ Non-operating revenues (expenses) Property taxes 2,635,316 2,891,281 3,054,398 3,388,204 3,566,125 3,831,266 State Water Property Tax Assessment 780,860 917,616 984,114 1,447,573 1,195,624 1,395,222 CFD 2013-1 assessment 2,703,730 2,810,939 2,843,711 2,929,902 2,963,060 3,057,126 Bond and Administrative Fees (2,750) (5,270) (20,699) (34,552) (30,767) (36,501) Mira Monte assessment 19,149 19,070 19,575 165 65 - State Water Project Water Sales to other Agencies 111,449 771,941 - 175,000 1,375,000 1,000,000 Property tax collection expense (42,176) (43,386) (43,305) (47,388) (56,101) (56,546) Investment income (loss) 1,315,926 (20,657) (577,286) 155,531 525,613 512,245 State water project expense (629,730) (759,852) (875,246) (1,119,365) (979,475) (779,259) Interest expense & Amortization of deferred loss and bond insurance (2,219,516) (2,371,254) (2,361,334) (2,478,871) (2,435,790) (2,395,718) Acquisition expense of CFD 2013-1 - - - - - - Cost of debt issuance (276,062) - - (50,500) - - Adjudication - 290,203 (32,755) 428,323 426,946 (181,598) Loss on Disposition of Capital Assets - - - - (6,788) (4,540) Other revenue(expense), net 88,623 241,447 149,432 176,270 249,608 2,343,665 Total non-operating revenues (expenses),net 4,484,819 4,742,078 3,140,605 4,970,292 6,793,120 8,685,362 Net Income Before capital contributions (9,954,073) (2,467,001) (3,984,668) (3,676,479) 1,022,364 2,236,964 Capital contributions 211,502 69,082 534,212 190,163 1,022,535 1,476,148 Change in net position (9,742,571)$ (2,397,919)$ (3,450,456)$ (3,486,316)$ 2,044,899$ 3,713,112$ Net position by component: Net investment in capital assets 36,991,071$ 37,569,004$ 39,891,569$ 39,209,965$ 37,576,774$ 38,624,685$ Restricted - 290,903 258,093 685,776 1,112,722 931,086 Unrestricted 14,909,845 11,643,090 5,926,187 2,693,792 5,582,427 8,429,264 Total net position 51,900,916$ 49,502,997$ 46,075,849$ 42,589,533$ 44,271,923$ 47,985,035$ Fiscal Year $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Ne t P o s i t i o n Fiscal Year Net investment in capital assets Restricted Unrestricted CASITAS MUNICIPAL WATER DISTRICT OPERATING REVENUES BY SOURCE LAST TEN FISCAL YEARS (105) Fiscal Year Water Sales and Service Recreation Revenue Other Operating Revenue Total Operating Revenue 2016 8,988,387 3,592,600 288,748 12,869,735 2017 7,542,239 4,027,340 1,188,502 12,758,081 2018 10,053,355 3,906,797 869,653 14,829,805 2019 9,578,074 3,894,552 1,150,196 14,622,822 2020 10,672,937 2,547,147 648,738 13,868,822 2021 14,522,638 3,685,302 2,322,334 20,530,274 2022 15,305,002 4,150,626 1,643,216 21,098,844 2023 12,253,689 4,703,998 777,706 17,735,393 2024 12,337,471 5,460,240 270,839 18,068,550 2025 17,179,126 6,628,905 508,863 24,316,894 Source: Casitas Municipal Water District Administration Department - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Re v e n u e Fiscal Year Water Sales and Service Recreation Revenue Other Operating Revenue CASITAS MUNICIPAL WATER DISTRICT OPERATING REVENUES BY CLASS LAST TEN FISCAL YEARS (106) Fiscal Yea Standby Residential Business Industrial Agricultural Wholesale Othe Total 2016 2,123,742 685,975 409,263 7,940 3,105,239 2,531,668 124,561 8,988,387 2017 2,151,152 588,488 358,381 8,255 2,521,907 1,659,629 254,427 7,542,239 2018 3,707,098 1,260,163 611,392 9,284 2,890,600 1,364,143 210,676 10,053,355 2019 4,034,503 1,277,485 537,076 14,245 2,196,975 1,357,357 160,432 9,578,074 2020 4,532,973 1,532,865 572,794 16,869 2,600,256 1,189,931 227,249 10,672,937 2021 5,027,142 2,173,794 763,471 20,606 3,737,273 2,462,897 337,455 14,522,638 2022 5,677,364 2,185,415 926,791 16,995 3,624,124 2,493,025 381,288 15,305,002 2023 5,669,871 1,716,501 725,430 15,628 2,487,653 1,357,651 280,955 12,253,689 2024 6,008,900 1,953,244 670,321 20,453 2,112,182 1,349,832 222,539 12,337,471 2025 6,570,736 2,951,045 978,376 24,319 3,727,975 2,574,516 352,159 17,179,126 Notes: Other classification also includes Fire, Temporary and Interdepartmental. Source: Casitas Municipal Water District Administration Department - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Re v e n u e Fiscal Year Standby Residential Business Industrial Agricultural Wholesale Other CASITAS MUNICIPAL WATER DISTRICT OPERATING EXPENSES BY ACTIVITY LAST TEN FISCAL YEARS (107) Fiscal Year Fisheries Engineering Water Treatment Water Quality Utilities Maintenance Electrical Mechanical Pipeline Recreation Area Operations Maintenance General Operations & Maintenance Management (3) General & Administrative Change in Water-in- Storage Inventory (1) Total Operating Expenses 2016 468,372 894,991 1,998,923 399,504 - 2,029,702 893,950 4,362,941 291,810 2,590,938 1,193,960 15,125,091$ 2017 539,967 1,087,229 1,612,303 469,457 466,052 1,875,587 998,872 4,378,097 419,103 3,460,827 (2,555,167) 12,752,327$ 2018 430,066 1,134,293 1,844,420 459,489 585,524 2,519,062 1,371,117 5,353,874 306,035 2,368,786 1,279,005 17,651,671$ 2019 508,342 2,145,325 1,857,252 605,329 564,996 2,096,916 1,829,649 5,687,798 419,895 2,916,901 (3,427,776) 15,204,627$ 2020 643,362 3,760,968 2,159,537 759,507 858,103 2,579,106 1,776,037 4,875,183 602,664 5,553,962 139,233 23,707,662$ 2021 611,328 1,705,802 2,055,465 788,802 998,651 3,119,031 1,923,244 4,680,979 681,238 5,638,177 862,770 23,065,487$ 2022 (2)638,594 2,048,007 2,557,694 867,408 1,261,659 3,222,294 1,818,823 4,841,352 775,128 5,359,641 424,113 23,814,713$ 2023 543,410 4,050,866 2,393,601 897,299 1,086,579 2,908,210 1,680,785 4,772,978 702,724 790,360 4,410,939 (1,999,525) 22,238,226$ 2024 (4)755,804 2,904,477 2,487,997 846,449 1,089,618 2,855,417 1,666,345 5,478,328 836,716 751,917 4,888,371 (4,951,793) 19,609,647$ 2025 773,393 2,442,981 2,652,983 1,039,295 1,210,114 3,137,716 1,788,539 5,999,660 736,212 951,669 4,979,867 729,900 26,442,329$ Notes: (1) FY2015 a prior period adjustment in the amount of $3,690,410 was booked to account for the change in water-in-storage for the period July 1, 2011 to June 30, 2014 (2) FY2022 Restatement for Subscription Based Information Technology Arrangements (SBITA) (3) FY2023 new department created prior years allocated to Water Treatment, Utilities Maintenance, Pipeline, & Electrical Mechanical (4) FY2024 Restatement for Compensated Absences Source: Casitas Municipal Water District Administration Department - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Ex p e n s e s Fiscal Year Fisheries Engineering Water Treatment Water Quality Utilities Maintenance Electrical Mechanical Recreation Area General & Administrative Pipeline Operations Maintenance General Operations & Maintenance Management (3) CASITAS MUNICIPAL WATER DISTRICT REVENUE BASE LAST TEN FISCAL YEARS (108) Fiscal Year Water Sales (Acre Feet) 2016 14,342 2017 11,925 2018 12,841 2019 9,892 2020 9,801 2021 13,381 2022 12,067 2023 8,198 2024 6,994 2025 10,835 Source: Casitas Municipal Water District Administration Department - 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Ac r e F e e t Fiscal Year CASITAS MUNICIPAL WATER DISTRICT REVENUE RATES FISCAL YEARS ENDED JUNE 30, 2012 AND 2017 (109) In fiscal year 2012, the District changed its rate structure as follows: FY12-13 FY14-17 Rate per Unit** Rate per Unit** RATE SCHEDULE - CLASS 1 SERVICE GRAVITY PUMPED GRAVITY PUMPED Residential: Bi-Monthly Lifeline 0-20 Units 0.584$ 0.856$ 0.602$ 0.882$ Bi-Monthly Lifeline 21-34 Units 1.033$ 1.305$ 1.064$ 1.344$ Bi-Monthly Lifeline 35-100 Units 1.446$ 1.718$ 1.489$ 1.770$ Bi-Monthly Lifeline 101 Units + 2.266$ 2.538$ 2.334$ 2.614$ Business 1.297$ 1.570$ 1.336$ 1.617$ Industrial 1.297$ 1.570$ 1.336$ 1.617$ Resale 0.803$ 1.445$ 0.827$ 1.488$ Other 1.297$ 1.570$ 1.336$ 1.617$ Temporary 1.462$ 1.733$ 1.506$ 1.785$ Recreation 1.297$ 1.570$ 1.336$ 1.617$ Rate per Unit** Rate per Unit** RATE SCHEDULE - CLASS 3 SERVICE GRAVITY PUMPED GRAVITY PUMPED Ag-Residential Monthly Lifeline 0-10 Units 0.584$ 0.856$ 0.602$ 0.882$ Monthly Usage 11-17 Units 1.033$ 1.305$ 1.064$ 1.344$ Monthly Usage 18-50 Units 1.446$ 1.718$ 1.489$ 1.770$ Irrigation (AG) 51 Units + 0.606$ 0.878$ 0.624$ 0.904$ ** One unit equals 100 cubic feet (748 gallons) Cost per AF (example) Irrigation per AF = $0.606 x 435.6 = 263.97$ Gravity per AF = $0.878 x 435.6 = 382.46$ Pumped 9.3.4 COMBINATION CLASS C SERVICE. Where more than one class of water service or use if rovided through a single connection, the General Manager shall make an equitable proration of rates and fees, such proration shall be conclusive unless appealed within 30 days by the customer to the Board, in which case the determination of the Board shall be conclusive. METER SIZE 5/8"-3/4" 1" 1-1/2" 2" 2-1/2" 3" 4" 6" Over 6" MAX CAPACITY GPM 20-30 50 120 160 TEMP 300 320 1000 2000 over 2000 RESIDENTIAL Monthly 23.34$ 34.86$ 63.66$ 98.22$ 150.05$ 207.65$ 368.92$ 812.42$ 2.82751$ per gpm Bi-Monthly 40.62$ 63.66$ 121.25$ 190.38$ N/A 409.23$ 731.78$ 1,618.76$ 5.65502$ per gpm BUSINESS Monthly 23.34$ 34.86$ 63.66$ 98.22$ 150.05$ 207.65$ 368.92$ 812.42$ 2.82751$ per gpm Bi-Monthly 40.62$ 63.66$ 121.25$ 190.38$ N/A 409.23$ 731.78$ 1,618.76$ 5.65502$ per gpm INDUSTRIAL Monthly 23.34$ 34.86$ 63.66$ 98.22$ 150.05$ 207.65$ 368.92$ 812.42$ 2.82751$ per gpm Bi-Monthly 40.62$ 63.66$ 121.25$ 190.38$ N/A 409.23$ 731.78$ 1,618.76$ 5.65502$ per gpm IRRIGATION/ AG Monthly 23.34$ 34.86$ 63.66$ 98.22$ 150.05$ 207.65$ 368.92$ 812.42$ 2.82751$ per gpm Bi-Monthly 40.62$ 63.66$ 121.25$ 190.38$ N/A 409.23$ 731.78$ 1,618.76$ 5.65502$ per gpm RESALE(G)Monthly 23.34$ 34.86$ 63.66$ 98.22$ 150.05$ 207.65$ 368.92$ 812.42$ 2.82751$ per gpm Bi-Monthly 40.62$ 63.66$ 121.25$ 190.38$ N/A 409.23$ 731.78$ 1,618.76$ 5.65502$ per gpm RESALE(P)Monthly 23.34$ 34.86$ 63.66$ 98.22$ 150.05$ 207.65$ 368.92$ 812.42$ 2.82751$ per gpm Bi-Monthly 40.62$ 63.66$ 121.25$ 190.38$ N/A 409.23$ 731.78$ 1,618.76$ 5.65502$ per gpm OTHER Monthly 23.34$ 34.86$ 63.66$ 98.22$ 150.05$ 207.65$ 368.92$ 812.42$ 2.82751$ per gpm Bi-Monthly 40.62$ 63.66$ 121.25$ 190.38$ N/A 409.23$ 731.78$ 1,618.76$ 5.65502$ per gpm TEMPORARY Monthly 23.34$ 34.86$ 63.66$ 98.22$ 150.05$ 207.65$ 368.92$ 812.42$ 2.82751$ per gpm Bi-Monthly 40.62$ 63.66$ 121.25$ 190.38$ N/A 409.23$ 731.78$ 1,618.76$ 5.65502$ per gpm RECREATION Monthly 23.34$ 34.86$ 63.66$ 98.22$ 150.05$ 207.65$ 368.92$ 812.42$ 2.82751$ per gpm Bi-Monthly 40.62$ 63.66$ 121.25$ 190.38$ N/A 409.23$ 731.78$ 1,618.76$ 5.65502$ per gpm Source: Casitas Municipal Water District Administration Department CASITAS MUNICIPAL WATER DISTRICT REVENUE RATES FISCAL YEAR ENDED JUNE 30, 2018 (110) In fiscal year 2018, the District changed its rate structure as follows: Rate per Unit** RATE SCHEDULE - CLASS 1 SERVICE GRAVITY PUMPED Residential: Monthly Usage 0-10 Units 0.490$ 0.960$ Monthly Usage 11-50 Units 0.990$ 1.460$ Monthly Usage 50 Units 1.890$ 2.360$ Business 0.990$ 1.460$ Industrial 0.990$ 1.460$ Resale 0.990$ 1.460$ Other 0.990$ 1.460$ Temporary 1.780$ 1.780$ Recreation 0.990$ 1.460$ Rate per Unit** RATE SCHEDULE - CLASS 3 SERVICE GRAVITY PUMPED Ag-Residential Monthly Usage 0-10 Units 0.490$ 0.960$ Monthly Usage 11-17 Units 0.990$ 1.460$ Monthly Usage 18-50 Units 0.620$ 1.090$ Irrigation (AG) 0.620$ 1.090$ ** One unit equals 100 cubic feet (748 gallons) Cost per AF (example) Irrigation per AF = $0.620 x 435.6 = 270.07$ Gravity per AF = $1.090 x 435.6 = 474.80$ Pumped 9.3.4 COMBINATION CLASS C SERVICE. Where more than one class of water service or use if rovided through a single connection, the General Manager shall make an equitable proration of rates and fees, such proration shall be conclusive unless appealed within 30 days by the customer to the Board, in which case the determination of the Board shall be conclusive. METER SIZE 5/8"-3/4" 1" 1-1/2" 2" 2-1/2" 3" 4" 6" 12" 18" MAX CAPACITY GPM 20-30 50 120 160 TEMP 300 320 1000 2000 N/A N/A RESIDENTIAL Monthly 28.75$ 47.91$ 95.82$ 153.31$ 255.52$ 335.37$ 603.67$ N/N/N/A BUSINESS Monthly 22.97$ 38.28$ 76.56$ 122.50$ 204.16$ 267.96$ 482.33$ 995.29$ N/N/A INDUSTRIAL Monthly 20.54$ 34.24$ 68.47$ 109.55$ 182.59$ 239.65$ 431.36$ N/N/N/A IRRIGATION/ AG Monthly N/A 43.28$ 86.56$ 138.50$ 230.84$ 302.97$ 545.35$ 1,125.33$ N/N/A AG-DOMESTIC Monthly N/A 34.78$ 69.57$ 111.30$ 185.51$ 243.48$ 438.26$ N/N/N/A RESALE Monthly 25.27$ 42.12$ 84.24$ 134.78$ 224.63$ 294.83$ 530.70$ 1,095.09$ 6,469.48$ 12,026.38$ OTHER Monthly 20.54$ 34.24$ 68.47$ 109.55$ 182.59$ 239.65$ 431.36$ N/N/N/A TEMPORARY Monthly N/A N/N/A N/A 150.05$ N/A N/A N/N/N/A RECREATION Monthly 20.54$ 34.24$ 68.47$ 109.55$ 182.59$ 239.65$ 431.36$ N/N/N/A Source: Casitas Municipal Water District Administration Department CASITAS MUNICIPAL WATER DISTRICT REVENUE RATES FISCAL YEAR ENDED JUNE 30, 2019 (111) In fiscal year 2019, the District changed its rate structure as follows: Rate per Unit** RATE SCHEDULE - CLASS 1 SERVICE GRAVITY PUMPED Residential: Monthly Usage 0-10 Units 0.550$ 1.080$ Monthly Usage 11-50 Units 1.110$ 1.640$ Monthly Usage 50 Units+ 2.120$ 2.640$ Business 1.110$ 1.640$ Industrial 1.110$ 1.640$ Resale 1.110$ 1.640$ Other 1.110$ 1.640$ Temporary 4.000$ 4.000$ Recreation 1.110$ 1.640$ Rate per Unit** RATE SCHEDULE - CLASS 3 SERVICE GRAVITY PUMPED Ag-Residential Monthly Usage 0-10 Units 0.550$ 1.080$ Monthly Usage 11-17 Units 1.110$ 1.640$ Monthly Usage 18-50 Units+ 0.690$ 1.220$ Irrigation (AG) 0.690$ 1.220$ ** One unit equals 100 cubic feet (748 gallons) Cost per AF (example) Irrigation per AF = $0.690 x 435.6 = 300.56$ Gravity per AF = $1.220 x 435.6 = 531.43$ Pumped 9.3.4 COMBINATION CLASS C SERVICE. Where more than one class of water service or use if rovided through a single connection, the General Manager shall make an equitable proration of rates and fees, such proration shall be conclusive unless appealed within 30 days by the customer to the Board, in which case the determination of the Board shall be conclusive. METER SIZE 5/8"-3/4" 1" 1-1/2" 2" 2-1/2" 3" 4" 6" 12" 18" MAX CAPACITY GPM 20-30 50 120 160 TEMP 300 320 1000 2000 N/A N/A RESIDENTIAL Monthly 32.20$ 53.66$ 107.32$ 171.71$ 286.81$ 375.61$ 676.11$ N/A N/A N/A BUSINESS Monthly 25.73$ 42.87$ 85.75$ 137.20$ 228.66$ 300.12$ 540.21$ 1,114.72$ N/A N/A INDUSTRIAL Monthly 23.00$ 38.35$ 76.69$ 122.70$ 204.50$ 268.41$ 483.12$ N/A N/A N/A IRRIGATION/ AG Monthly N/A 48.47$ 96.95$ 155.12$ 258.54$ 339.33$ 610.79$ 1,260.37$ N/A N/A AG-DOMESTIC Monthly N/A 38.95$ 77.92$ 124.66$ 207.77$ 272.70$ 490.85$ N/A N/A N/A RESALE Monthly 28.30$ 47.17$ 94.35$ 150.95$ 251.59$ 330.21$ 594.38$ 1,226.50$ 7,245.82$ 13.469.55 OTHER Monthly 23.00$ 38.35$ 76.69$ 122.70$ 204.50$ 268.41$ 483.12$ N/A N/A N/A TEMPORARY Monthly N/A N/A N/A N/A 150.00$ N/A N/A N/A N/A N/A RECREATION Monthly 23.00$ 38.35$ 76.69$ 122.70$ 204.50$ 268.41$ 483.12$ N/A N/A N/A Source: Casitas Municipal Water District Administration Department CASITAS MUNICIPAL WATER DISTRICT REVENUE RATES FISCAL YEAR ENDED JUNE 30, 2020 (112) In fiscal year 2020, the District changed its rate structure as follows: Rate per Unit** RATE SCHEDULE - CLASS 1 SERVICE GRAVITY PUMPED Residential: Monthly Usage 0-10 Units 0.620$ 1.210$ Monthly Usage 11-50 Units 1.240$ 1.840$ Monthly Usage 50 Units+ 2.370$ 2.960$ Business 1.240$ 1.840$ Industrial 1.240$ 1.840$ Resale 1.240$ 1.840$ Other 1.240$ 1.840$ Temporary 4.000$ 4.000$ Recreation 1.240$ 1.840$ Rate per Unit** RATE SCHEDULE - CLASS 3 SERVICE GRAVITY PUMPED Ag-Residential Monthly Usage 0-10 Units 0.620$ 1.210$ Monthly Usage 11-17 Units 1.240$ 1.840$ Monthly Usage 18-50 Units+ 0.770$ 1.370$ Irrigation (AG) 0.770$ 1.370$ ** One unit equals 100 cubic feet (748 gallons) Cost per AF (example) Irrigation per AF = $0.770 x 435.6 = 335.41$ Gravity per AF = $1.370 x 435.6 = 596.77$ Pumped 9.3.4 COMBINATION CLASS C SERVICE. Where more than one class of water service or use if rovided through a single connection, the General Manager shall make an equitable proration of rates and fees, such proration shall be conclusive unless appealed within 30 days by the customer to the Board, in which case the determination of the Board shall be conclusive. METER SIZE 5/8"-3/4" 1" 1-1/2" 2" 2-1/2" 3" 4" 6" 12" 18" MAX CAPACITY GPM 20-30 50 120 160 TEMP 300 320 1000 2000 N/A N/A RESIDENTIAL Monthly 36.06$ 60.10$ 120.20$ 192.32$ 320.52$ 420.68$ 757.24$ N/A N/A N/A BUSINESS Monthly 28.82$ 480.10$ 96.04$ 153.66$ 256.10$ 336.13$ 605.04$ 1,248.49$ N/A N/A INDUSTRIAL Monthly 25.76$ 42.95$ 85.89$ 137.42$ 229.04$ 300.62$ 541.09$ N/A N/A N/A IRRIGATION/ AG Monthly N/A 54.29$ 108.58$ 173.73$ 289.56$ 380.05$ 684.08$ 1,411.61$ N/A N/A AG-DOMESTIC Monthly N/A 43.62$ 87.27$ 139.62$ 232.70$ 305.42$ 549.75$ N/A N/A N/A RESALE Monthly 31.70$ 52.83$ 105.67$ 169.06$ 281.78$ 369.84$ 665.71$ 1,373.68$ 8,115.32$ 15,085.90$ OTHER Monthly 25.76$ 42.95$ 85.89$ 137.42$ 229.04$ 300.62$ 541.09$ N/A N/A N/A TEMPORARY Monthly N/A N/A N/A N/A 150.00$ N/A N/A N/A N/A N/A RECREATION Monthly 25.76$ 42.95$ 85.89$ 137.42$ 229.04$ 300.62$ 541.09$ N/A N/A N/A Source: Casitas Municipal Water District Administration Department CASITAS MUNICIPAL WATER DISTRICT REVENUE RATES FISCAL YEAR ENDED JUNE 30, 2021 (113) In fiscal year 2021, the District changed its rate structure as follows: Rate per Unit** RATE SCHEDULE - CLASS 1 SERVICE GRAVITY PUMPED Residential: Monthly Usage 0-10 Units 0.690$ 1.360$ Monthly Usage 11-50 Units 1.390$ 2.060$ Monthly Usage 50 Units+ 2.650$ 3.320$ Business 1.390$ 2.060$ Industrial 1.390$ 2.060$ Resale 1.390$ 2.060$ Other 1.390$ 2.060$ Temporary 4.000$ 4.000$ Recreation 1.390$ 2.060$ Rate per Unit** RATE SCHEDULE - CLASS 3 SERVICE GRAVITY PUMPED Ag-Residential Monthly Usage 0-10 Units 0.690$ 1.360$ Monthly Usage 11-17 Units 1.390$ 2.060$ Monthly Usage 18-50 Units+ 0.860$ 1.530$ Irrigation (AG) 0.860$ 1.530$ ** One unit equals 100 cubic feet (748 gallons) Cost per AF (example) Irrigation per AF = $0.860 x 435.6 = 374.62$ Gravity per AF = $1.530 x 435.6 = 666.47$ Pumped 9.3.4 COMBINATION CLASS C SERVICE. Where more than one class of water service or use if rovided through a single connection, the General Manager shall make an equitable proration of rates and fees, such proration shall be conclusive unless appealed within 30 days by the customer to the Board, in which case the determination of the Board shall be conclusive. METER SIZE 5/8"-3/4" 1" 1-1/2" 2" 2-1/2" 3" 4" 6" 12" 18" MAX CAPACITY GPM 20-30 50 120 160 TEMP 300 320 1000 2000 N/A N/A RESIDENTIAL Monthly 40.39$ 67.31$ 134.62$ 215.40$ 358.98$ 471.16$ 848.11$ N/A N/A N/A BUSINESS Monthly 32.28$ 53.77$ 107.56$ 172.10$ 286.83$ 376.47$ 677.64$ 1,398.31$ N/A N/A INDUSTRIAL Monthly 28.85$ 48.10$ 96.20$ 153.91$ 256.52$ 336.69$ 606.02$ N/A N/A N/A IRRIGATION/ AG Monthly N/A 60.80$ 121.61$ 194.58$ 324.31$ 425.66$ 766.17$ 1,581.00$ N/A N/A AG-DOMESTIC Monthly N/A 48.85$ 97.74$ 156.37$ 260.62$ 342.07$ 615.72$ N/A N/A N/A RESALE Monthly 35.50$ 59.17$ 118.35$ 189.35$ 315.59$ 414.22$ 745.60$ 1,538.52$ 9,089.16$ 16,896.21$ OTHER Monthly 28.85$ 48.10$ 96.20$ 153.91$ 256.52$ 336.69$ 606.02$ N/A N/A N/A TEMPORARY Monthly N/A N/A N/A N/A 150.00$ N/A N/A N/A N/A N/A RECREATION Monthly 28.85$ 48.10$ 96.20$ 153.91$ 256.52$ 336.69$ 606.02$ N/A N/A N/A Source: Casitas Municipal Water District Administration Department CASITAS MUNICIPAL WATER DISTRICT REVENUE RATES FISCAL YEAR ENDED JUNE 30, 2022 (114) In fiscal year 2022, the District changed its rate structure as follows: Rate per Unit** RATE SCHEDULE - CLASS 1 SERVICE GRAVITY PUMPED Residential: Monthly Usage 0-10 Units 0.770$ 1.520$ Monthly Usage 11-50 Units 1.560$ 2.310$ Monthly Usage 50 Units+ 2.970$ 3.720$ Business 1.560$ 2.310$ Industrial 1.560$ 2.310$ Resale 1.560$ 2.310$ Other 1.560$ 2.310$ Temporary 4.000$ 4.000$ Recreation 1.560$ 2.310$ Rate per Unit** RATE SCHEDULE - CLASS 3 SERVICE GRAVITY PUMPED Ag-Residential Monthly Usage 0-10 Units 0.770$ 1.520$ Monthly Usage 11-17 Units 1.560$ 2.310$ Monthly Usage 18-50 Units+ 0.960$ 1.710$ Irrigation (AG) 0.960$ 1.710$ ** One unit equals 100 cubic feet (748 gallons) Cost per AF (example) Irrigation per AF = $0.960 x 435.6 = 418.18$ Gravity per AF = $1.710 x 435.6 = 744.88$ Pumped 9.3.4 COMBINATION CLASS C SERVICE. Where more than one class of water service or use if rovided through a single connection, the General Manager shall make an equitable proration of rates and fees, such proration shall be conclusive unless appealed within 30 days by the customer to the Board, in which case the determination of the Board shall be conclusive. METER SIZE 5/8"-3/4" 1" 1-1/2" 2" 2-1/2" 3" 4" 6" 12" 18" MAX CAPACITY GPM 20-30 50 120 160 TEMP 300 320 1000 2000 N/A N/A RESIDENTIAL Monthly 45.24$ 75.39$ 150.77$ 241.25$ 402.06$ 527.70$ 949.88$ N/A N/A N/A BUSINESS Monthly 36.15$ 60.22$ 120.47$ 192.75$ 321.25$ 421.65$ 758.96$ 1,566.11$ N/A N/A INDUSTRIAL Monthly 32.31$ 53.87$ 107.74$ 172.38$ 287.30$ 377.09$ 678.74$ N/A N/A N/A IRRIGATION/ AG Monthly N/A 68.10$ 136.20$ 217.93$ 363.23$ 476.74$ 858.11$ 1,770.72$ N/A N/A AG-DOMESTIC Monthly N/A 54.71$ 109.47$ 175.13$ 291.89$ 383.12$ 689.61$ N/A N/A N/A RESALE Monthly 39.76$ 66.27$ 132.55$ 212.07$ 353.46$ 463.93$ 835.07$ 1,723.14$ 10,179.86$ 18,923.76$ OTHER Monthly 32.31$ 53.87$ 107.74$ 172.38$ 287.30$ 377.09$ 678.74$ N/A N/A N/A TEMPORARY Monthly N/A N/A N/A N/A 150.00$ N/A N/A N/A N/A N/A RECREATION Monthly 32.31$ 53.87$ 107.74$ 172.38$ 287.30$ 377.09$ 678.74$ N/A N/A N/A Source: Casitas Municipal Water District Administration Department CASITAS MUNICIPAL WATER DISTRICT REVENUE RATES FISCAL YEAR ENDED JUNE 30, 2024 (115) In January of fiscal year 2024, the District changed its rate structure as follows: Rate per Unit** RATE SCHEDULE - CLASS 1 SERVICE GRAVIT PUMPED Residential: Monthly Usage 0-10 Units 1.070$ 1.900$ Monthly Usage 11-50 Units 1.910$ 2.710$ Monthly Usage 50 Units+ 3.270$ 4.060$ Business 1.950$ 2.750$ Industrial 1.950$ 2.750$ Resale 1.950$ 2.750$ Other 1.950$ 2.750$ Temporary 4.000$ 4.000$ Recreation 1.950$ 2.750$ Rate per Unit** RATE SCHEDULE - CLASS 3 SERVICE GRAVIT PUMPED Ag-Residential Monthly Usage 0-10 Units 1.070$ 1.900$ Monthly Usage 11-17 Units 1.910$ 2.710$ Monthly Usage 18-50 Units+ 1.240$ 2.050$ Irrigation (AG) 1.240$ 2.050$ ** One unit equals 100 cubic feet (748 gallons) Cost per AF (example) Irrigation per AF = $1.240 x 435.6 = 540.14$ Gravity per AF = $2.050 x 435.6 = 892.98$ Pumped 9.3.4 COMBINATION CLASS C SERVICE. Where more than one class of water service or use if rovided through a single connection, the General Manager shall make an equitable proration of rates and fees, such proration shall be conclusive unless appealed within 30 days by the customer to the Board, in which case the determination of the Board shall be conclusive. METER SIZE 5/8"-3/4" 1" 1-1/2" 2" 2-1/2" 3" 4" 6" 12" 18" MAX CAPACITY GPM 20-30 50 120 160 TEMP 300 320 1000 2000 N/A N/A RESIDENTIAL Monthly 40.77$ 70.40$ 129.27$ 284.47$ N/A 729.51$ 1,511.14$ N/A N/A N/A BUSINESS Monthly 35.11$ 60.60$ 111.31$ 244.94$ N/A 628.17$ 1,301.18$ 2,359.56$ N/A N/A INDUSTRIAL Monthly 35.11$ 60.60$ 111.31$ 244.94$ N/A 628.17$ 1,301.18$ 2,359.56$ N/A N/A IRRIGATION/ AG Monthly N/A 65.78$ 120.80$ 265.83$ N/A 681.75$ 1,412.17$ 2,560.84$ N/A N/A AG-DOMESTIC Monthly N/A 56.85$ 104.43$ 229.78$ N/A 589.29$ 1,220.66$ 2,213.53$ N/A N/A RESALE Monthly 37.41$ 64.60$ 118.63$ 261.05$ N/A 669.49$ 1,386.78$ 2,514.76$ 18,778.34$ 28,390.15$ OTHER Monthly 32.58$ 56.26$ 103.32$ 227.36$ N/A 583.09$ 1,207.80$ 2,190.26$ N/A N/A TEMPORARY Monthly 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ RECREATION Monthly 32.58$ 56.26$ 103.32$ 227.36$ N/A 583.09$ 1,207.80$ 2,190.26$ N/A N/A Source: Casitas Municipal Water District Administration Department CASITAS MUNICIPAL WATER DISTRICT REVENUE RATES FISCAL YEAR ENDED JUNE 30, 2025 (116) In January of fiscal year 2025, the District changed its rate structure as follows: Rate per Unit** RATE SCHEDULE - CLASS 1 SERVICE GRAVIT PUMPED Residential: Monthly Usage 0-10 Units 1.025$ 2.100$ Monthly Usage 11-50 Units 2.090$ 2.910$ Monthly Usage 50 Units+ 3.390$ 4.200$ Business 2.160$ 2.980$ Industrial 2.160$ 2.980$ Resale 2.160$ 2.980$ Other 2.160$ 2.980$ Temporary 4.000$ 4.000$ Recreation 2.160$ 2.980$ Rate per Unit** RATE SCHEDULE - CLASS 3 SERVICE GRAVIT PUMPED Ag-Residential Monthly Usage 0-10 Units 1.250$ 2.100$ Monthly Usage 11-50 Units 2.090$ 2.910$ Monthly Usage 50 Units+ 1.400$ 2.230$ Irrigation (AG) 1.400$ 2.230$ ** One unit equals 100 cubic feet (748 gallons) Cost per AF (example) Irrigation per AF = $1.40 x 435.6 = 609.84$ Gravity per AF = $2.23 x 435.6 = 971.39$ Pumped 9.3.4 COMBINATION CLASS C SERVICE. Where more than one class of water service or use if rovided through a single connection, the General Manager shall make an equitable proration of rates and fees, such proration shall be conclusive unless appealed within 30 days by the customer to the Board, in which case the determination of the Board shall be conclusive. METER SIZE 5/8"-3/4" 1" 1-1/2" 2" 2-1/2" 3" 4" 6" 12" 18" MAX CAPACITY GPM 20-30 50 120 160 TEMP 300 320 1000 2000 N/A N/A RESIDENTIAL Monthly 38.38$ 67.44$ 118.67$ 306.27$ N/A 850.40$ 1,889.69$ N/A N/A N/A BUSINESS Monthly 34.31$ 60.28$ 106.08$ 273.75$ N/A 760.16$ 1,689.14$ 2,871.47$ N/A N/A INDUSTRIAL Monthly 34.31$ 60.28$ 106.08$ 273.75$ N/A 760.16$ 1,689.14$ 2,871.47$ N/A N/A IRRIGATION/ AG Monthly N/A 64.10$ 112.79$ 291.09$ N/A 808.29$ 1,796.09$ 3,053.29$ N/A N/A AG-DOMESTIC Monthly N/A 57.45$ 101.12$ 260.94$ N/A 724.60$ 1,610.12$ 2,737.13$ N/A N/A RESALE Monthly 35.98$ 63.23$ 111.27$ 287.15$ N/A 797.36$ 1,771.81$ 3,011.99$ 25,286.23$ 34,476.00$ OTHER Monthly 34.43$ 57.01$ 100.32$ 258.89$ N/A 718.87$ 1,597.38$ 2,715.53$ N/A N/A TEMPORARY Monthly 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ 150.00$ RECREATION Monthly 34.43$ 57.01$ 100.32$ 258.89$ N/A 718.87$ 1,597.38$ 2,715.53$ N/A N/A Source: Casitas Municipal Water District Administration Department CASITAS MUNICIPAL WATER DISTRICT CUSTOMER BY TYPE AT FISCAL YEAR-END LAST TEN FISCAL YEARS (117) Fiscal Year Residential Business Industrial Agricultural Wholesale Other Total 2016 2,711 114 9 248 25 41 3,148 2017 5,224 460 13 249 22 81 6,049 2018 5,292 391 13 251 22 83 6,052 2019 5,281 401 13 251 23 83 6,052 2020 5,296 392 13 249 24 88 6,062 2021 5,299 385 13 252 24 88 6,061 2022 5,309 388 14 250 25 86 6,072 2023 5,315 385 15 250 25 87 6,077 2024 5,307 387 15 251 23 87 6,070 2025 5,309 389 15 252 23 86 6,074 Note: Number of customers as of June 30th of fiscal year FY2017 purchased Golden State Water Source: Casitas Municipal Water District Administration Department Customer Type 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Nu m b e r o f C u s t o m e r s Fiscal Year Other Wholesale Agricultural Industrial Business Residential CASITAS MUNICIPAL WATER DISTRICT RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS (118) Fiscal Year Loans Payable (1) Leases Payable Notes Payable SBITA Reimbursement Agreement Assessment Bond Payable (2) Special Tax Bonds Series A-C (2)&(3)Debt Per Capita As a Share of Personal Income 2016 1,652,804 - - - 2,780,214 89,500 - 4,522,518 5.34 9.57% 2017 1,398,725 - - - 2,702,986 73,500 44,125,399 48,300,610 56.88 98.99% 2018 1,136,525 - - - 2,625,757 56,500 43,885,662 47,704,444 56.24 94.07% 2019 865,830 - - - 2,548,529 38,500 43,600,925 47,053,784 55.67 88.45% 2020 586,414 - - - 2,471,301 19,500 57,212,099 60,289,314 71.49 105.65% 2021 297,863 - 144,021 - 2,394,073 - 56,595,673 59,431,630 70.80 95.35% 2022 - 25,078 97,670 241,313 2,316,845 - 55,999,245 58,680,151 70.46 95.22% 2023 2,636,911 381,659 251,255 468,132 2,239,616 - 55,332,818 61,310,391 73.90 94.64% 2024 2,396,878 399,271 199,319 491,677 2,162,388 - 54,596,391 60,245,924 72.91 88.46% 2025 2,148,737 483,911 136,310 316,641 2,085,160 - 53,779,964 58,950,723 71.62 82.34% Note: (1) In Fiscal Year 2023 took a loan for the Aquatic Play Structure Loan see note 10. (2) Assessment bonds and special tax bonds are not obligations of the District's operations - Mellos-Roos debt (3) Special tax Bonds are only applicable to customers who were part of the Golden State Water purchase in 2017 Source: Casitas Municipal Water District Administration Department Total 0 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Do l l a r s Fiscal Year Loans Payable (1)Leases Payable Reimbursement Agreement Assessment Bond Special Tax Bonds SBITA Notes Payable CASITAS MUNICIPAL WATER DISTRICT DEBT COVERAGE LAST TEN FISCAL YEARS (119) Fiscal Year Net Revenues (1) Operating Expenses (2) Net Available Revenues Principal (3)Interest (4)Total Coverage Ratio 2016 16,910,651 (15,125,091) 1,785,560 323,116 55,864 378,980 4.71 2017 15,758,515 (12,752,327) 3,006,188 331,306 50,989 382,295 7.86 2018 20,176,194 (17,651,671) 2,524,523 339,428 42,866 382,294 6.60 2019 19,398,037 (15,204,627) 4,193,410 347,923 34,374 382,297 10.97 2020 18,020,136 (23,707,662) (5,687,526) 356,644 25,652 382,296 -14.88 2021 24,414,286 (23,065,487) 1,348,799 365,779 16,516 382,296 3.53 2022 23,722,388 (23,814,713) (92,325) 375,091 7,205 382,296 -0.24 2023 21,630,398 (22,238,226) (607,828) 191,517 48,990 240,507 -2.53 2024 23,784,896 (19,609,647) 4,175,249 317,261 86,343 403,604 10.34 2025 32,004,070 (26,442,329) 5,561,741 325,369 78,235 403,604 13.78 Notes: (1) Net revenues exclude assessment and special tax bond revenues, interest expense on long term debt, amortization of bond insurance, state water project, and adjudication. (2) Operating expenses exclude depreciation expense (4) Includes the 2022 loan paybale see note 10. Assessment bonds and special tax bonds are not obligations of the District's operations - Mellos-Roos debt Source: Casitas Municipal Water District Administration Department Debt Service (3) Includes the Casitas Dam Project-Seismic Safety of Casitas Dam loan see note 10 & 2022 loan paybale see note 10. CASITAS MUNICIPAL WATER DISTRICT DEMOGRAPHIC AND ECONOMIC STATISTICS – COUNTY OF VENTURA LAST TEN FISCAL YEARS (120) Year Unemployment Rate Population Personal Income (thousands of dollars) Personal Income per Capita 2016 5.3% 847,646 47,265,014 55,760 2017 4.5% 849,106 48,791,042 57,462 2018 3.9% 848,179 50,711,842 59,789 2019 3.6% 845,277 53,196,126 62,933 2020 11.8% 843,371 57,067,318 67,666 2021 6.9% 839,471 62,332,380 74,252 2022 3.5% 832,871 61,627,308 73,994 2023 4.0% 829,590 64,783,900 78,091 2024 4.5% 826,322 68,102,175 1 82,416 ( 2025 5.0% 823,067 71,590,414 1 86,980 Notes: Only County data is updated annually. Therefore, the District has chose to use its data since the District believes that the County data is representative of the conditions and experience of the District. (1) Estimated using percentage change year of year from 2021 to 2022 Sources: California Department of Finance & Bureau of Economic Analysis California Labor Market Info as of June 1st 810,000 815,000 820,000 825,000 830,000 835,000 840,000 845,000 850,000 855,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Po p u l a t i o n Fiscal Year 0 20,000 40,000 60,000 80,000 100,000 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Pe r C a p i t a I n c o m e Fiscal Year CASITAS MUNICIPAL WATER DISTRICT OPERATING AND CAPACITY INDICATORS – EMPLOYEES LAST TEN FISCAL YEARS (121) Department 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Management 2 3 3 4 4 4 4 4 4 4 Safety 1 1 1 1 1 1 1 1 1 1 Administration 5 6 6 7 8 8 8 8 8 7 Engineering 5 5 5 6 6 6 6 6 6 6 Water Quality Lab 2 2 2 3 3 3 3 4 4 4 Fisheries 3 2 3 3 3 3 3 4 4 4 Electrical and Mechanical 3 3 4 4 5 6 5 5 5 5 Pipeline 4 4 6 6 6 6 6 6 6 6 Treatment 4 5 6 7 6 6 6 7 6 7 Utilities Maintainenace 2 4 5 5 5 5 5 5 5 5 Operations Maintenance & Mgmt 4 4 4 5 6 6 7 7 7 7 Conservation 3 3 3 4 4 4 3 3 3 3 Information Technology 1 1 1 1 1 2 2 2 2 2 Recreation Operations 9 11 12 12 13 12 12 12 12 11 Recreation Maintenance 4 4 4 4 4 4 4 5 4 4 Total 52 58 65 72 75 76 75 79 77 76 Note: Number of full time employees as of June 30th of fiscal year Source: Casitas Municipal Water District Administration Department Full Time Employees 0 10 20 30 40 50 60 70 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Em p l o y e e s Fiscal Year Management Administration Engineering Water Quality Lab Fisheries Electrical and Mechanical Pipeline Treatment Information Technology Recreation Operations Recreation Maintenance Utilities Maintainenace Operations Maintenance & Mgmt Conservation Safety CASITAS MUNICIPAL WATER DISTRICT OPERATING AND CAPACITY INDICATORS – OPERATIONS LAST TEN FISCAL YEARS (122) Fiscal Year Miles of Pipeline Lake Storage Capacity (AF) Lake Level at Year-End (AF) Percentage of Lake Capacity Daily System Capacity (MGD) 2015 118 254,000 122,050 48.1% 65 2016 118 254,000 100,696 39.6% 65 2017 163.4 237,761 (1)106,322 44.7% 65 2018 163.4 237,761 80,996 34.1% 65 2019 163.4 237,761 106,552 44.8% 65 2020 163.4 237,761 103,795 43.7% 65 2021 163.4 237,761 86,711 36.5% 65 2022 163.4 237,761 78,313 32.9% 65 2023 163.4 237,761 176,082 74.1% 65 2024 163.4 237,761 237,253 99.8% 65 2025 163.4 237,761 222,800 93.7% 65 AF - Acre Feet MGD - Millions of Gallons per Day (1) Lake Storage Capacity Updated in 2017 from a Bathymetric Survey Source: Casitas Municipal Water District Administration Department Other Operating and Capacity Indicators (123) This page intentionally left blank. (124) GOVERNMENT AUDITING STANDARDS REPORT (125) This page intentionally left blank. (126) INDEPENDENT AUDITORS’ REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Directors Casitas Municipal Water District Oak View, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of Casitas Municipal Water District (the District) as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise District’s basic financial statements, and have issued our report thereon dated November 21, 2025. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the District’s internal control over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we do not express an opinion on the effectiveness of the District’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected, on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. CLA (CliftonLarsonAllen LLP) is an independent network member of CLA Global. See CLAglobal.com/disclaimer.  CliftonLarsonAllen LLP  CLAconnect.com  Board of Directors Casitas Municipal Water District (127) Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the District’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Irvine, California November 21, 2025