LRAA Water Policy

Ratified by the LRAA membership May 29, 2011

  1. Definition of Terms

    1. Water Right – The right of a Lost River Property Owner and Member to have a physical connection and to draw water from the LRAA water system.
    2. Water Right Purchase Fee – A onetime fee paid by a property owner to the Lost River Airport Association for the purchase of a water right.
    3. Annual Water Fee – An annual fee paid by a water right owner to the Lost River Airport Association for maintenance and operation of the LRAA water system.
    4. Physical Water Connection – The actual plumbing connection from the LRAA water system in the street to a private property.
    5. Property Owner – The owner of a parcel of property as identified on the title of the property.
    6. Annual Water Budget – A portion of the LRAA annual budget which is dedicated to the Water System. The budget is developed by the board of trustees showing the proposed annual services and expenses, including proposed contributions to the reserve fund, and proposed annual fees. This budget is approved by the membership at the annual May meeting.
    7. Water System Reserve Fund – A savings fund specific to the water system designed for emergency repairs of the water system.
    8. Statement of Water Adequacy – When a member applies to the county for a building permit he must demonstrate that water is provided for the proposed home. A statement of water adequacy is the county form which when signed by the LRAA water manager certifies that the property has a water right with LRAA.

  2. Policies

    1. Purchasing a water right – A property owner may purchase one water right for a parcel of property. To purchase a water right the property owner must pay the water right purchase fee including any prorated remaining annual water dues.
    2. Water Rights are always associated with a specific parcel of property.
    3. Water Rights are non-transferable from property to property.
    4. Water Rights transfer between individuals – Water Rights are transferable between individuals only in the event of the sale of a property with a property right. A property owner may sell a property with its water right inclusive. The new property owner will be responsible for future annual fees.
    5. Payment of annual water fees – Annual fees are billed at the first of the year with the membership dues. Payment is due March 31st.
    6. Late payment of annual water fees – Annual Water Fees not paid by the March 31st deadline are subject to interest and disconnect. Non payment of the Annual Water Fee may result in the members water connection being disconnected from the LRAA water system. In such case all of the costs to disconnect the service will be borne by the member. The member must be in good standing including the disconnect costs before reconnecting can be considered. All costs to reconnect the water service will be borne by the member. Reconnection will be done to the water system standards in place at the time of the reconnection. Inspection will be accomplished as a new connection.
    7. Sale of a property with a water right – In the event of a sale of a property with a water right, the owner listed on the title on March 31st, the due date, is responsible for the entire annual water fee. Any proration of dues and fees will be at closing of sale or transaction. No dues or fees will be refunded by the LRAA.
    8. Return of a water right – A property owner may choose to return a water right to the LRAA.

      1. There must be no physical connection.
      2. All past membership fees and annual water fees must be current.
      3. The member must be a member in good standing.
      4. The member must request the return of the water right in writing with the property parcel specifically identified.
      5. The original water right purchase fee may be re-paid to the property owner if the property owner can document the original water right purchase payment.
      6. The LRAA will not reimburse any part of an annual water fee.

    9. Retaining a Water Right without a physical connection – A member may retain a water right on a specific parcel of property without a physical connection. A Water Right without a physical connection pays a full annual water fee each year.
    10. Water System Reserve Fund – A reserve fund for emergency system repairs shall be maintained.

      1. The target level for the Water Reserve Fund is recommended by the board of trustees and established by a vote of the membership and is stated in the financial policy.
      2. Funds from the water fund reserve may be loaned to the general fund for emergencies and visa versa. A loan from one fund to the other must be repaid by the fund which originated the debt.
      3. Reserve funds may be used only to maintain or improve existing infrastructure. Reserve funds may not be used to expand existing infrastructure without membership approval.
      4. The board may approve utilizing water system reserve funds in the event of an emergency, to restore water service. Board approval for expenditure of water system reserve monies requires a 2/3 majority vote of the board.
      5. Contribution to the Water System Reserve Fund

        1. Contributions to the water system reserve fund are made through the annual budget.
        2. No contributions from the annual budget shall be made that will grow the reserve fund beyond the target limits set.
        3. If the reserve fund is depleted then monies must be budgeted to re-build the reserve. The period to build the reserve back to 100% should be no more than 3-years.

      6. Water Right Purchase fees will contribute to the water system reserve fund.
      7. The water budget share of account interest earned will be placed into the water system reserve fund.
      8. The water system reserve fund may, at the discretion of the membership grow beyond the target limits set, from the effects of interest and water right purchases.