Long-Range Financial Plan

The 2022 Long-Range Financial Plan details the Company’s plans to realize its water system capital improvement plan over the next 10 years. The 10-year capital improvement plan prioritizes replacing nearly 6,800 linear feet of the 48” M-Line for an estimated $12 million. To generate capital while minimizing annual water delivery rate increases, the Long-Range Financial Plan, which addressed feedback received from shareholders during the review process, includes the sale of 725 common stock shares on a pro-rata basis to shareholders – 375 pro-rata shares in FY 2022/2023 and 350 pro-rata shares in FY 2025/2026 – generating approximately $11,000,000 in required capital. Once the capital is generated, construction on the project would start in FY 2026/2027 and span through FY 2027/2028.

2022/2023 Sale and Issuance of Common Stock Shares

On September 16, 2022, the Board of Directors authorized the issuance of 375 shares of common stock, and based on the interest received from shareholders, on November 18, 2022, the Board of Directors authorized issuing 375 shares of common stock according to the pro-rata share distribution based on ownership. By January 2023, management finalized and executed the Common Stock Purchase Agreements with Suburban Water Systems for 138 shares, the City of La Habra for 125 shares, and the City of Brea for 112 shares, resulting in $5,718,750 in capital proceeds for the M-Line Replacement Project.