The Padre Dam Municipal Water District (the “District”) was organized November 23, 1955, as Rio San Diego Municipal Water District pursuant to the Municipal Water District Law of 1911, Division 20 of the Water Code, as the result of an election held December 2, 1952. The name changed to Padre Dam Municipal Water District effective January 1, 1977. Santee County Water District (formed in 1956 pursuant to the County Water District Law, Division 12 of the Water Code) operated within the territory of the District. As the result of an election held on November 2, 1976, Santee County Water District dissolved and its functions and operations were assumed by the District on December 31, 1976. The communities of Alpine, Crest and Harbison Canyon (Eastern Service Area) were annexed to the District in 1961. The area within Crest Public Utility District was annexed in 1985 when that agency dissolved. The District purchases its water supply from the San Diego County Water Authority. The District sends its wastewater to City of San Diego METRO for treatment. The District produces recycled water for construction and irrigation. The District owns and operates Santee Lakes Recreation Preserve. The District is composed of two geographically distinct service areas, which are as follows: Western Service Area: Western Service Area provides retail potable water, recycled water and sewer services to the community of Santee. The Santee Lakes Recreation Preserve and the Santee Water Reclamation Facility are located within this service area. Eastern Service Area: Eastern Service Area provides retail potable water service to the communities of Alpine, Crest and Harbison Canyon.
The accompanying Schedule of Expenditures of Federal Awards (“Schedule”) includes the federal award activity of the District under programs of the federal government for the year ended June 30, 2025. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule presents only a selected portion of the operations of the District, it is not intended to and does not present the financial statements of the District.
Expenditures reported on the Schedule are reported on the full accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
The District has not elected to use the de minimis indirect rate as allowed under the Uniform Guidance (10 percent of modified total direct costs for awards issued prior to October 1, 2024 and 15 percent for awards issued or amended on or after October 1, 2024).
The District passed $29,900,000 through to the East County Advanced Water Purification Joint Powers Authority (“Authority”) during the fiscal year ended June 30, 2025. The District has entered into a joint powers agreement with the City of El Cajon and the San Diego County Sanitation District to form the Authority.
Under the terms of federal and state grants, additional audits may be requested by the grantor agencies and certain costs may be questioned as not being appropriate expenditures under the terms of the grants. Such audits could lead to a request for reimbursement to the grantor agencies.