Utilities (Enterprise Funds)

The City of Oxnard provides three utility services for its residents; water, wastewater, and environmental resources (solid waste management). These are accounted for in funds called enterprise funds, and each one operates similar to a regular business in that the costs are recovered through fees paid by the residents and businesses who use the services. Utility rates have to cover not only the ongoing cost of providing the commodities and services but also debt service (principal and interest) on municipal bonds issued to pay for long-lived infrastructure like treatment plants, pump stations, lift stations and underground piping. Furthermore, the enterprise funds must also set aside adequate reserves to replace or upgrade capital equipment and installations in emergencies, as they age, or become subject to new regulatory requirements.