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Home My WebLink AboutAgenda Packet - North Fork Water Company - 04/07/2015NORTH FORK WATER COMPANY ANNUAL SHAREHOLDERS MEETING April 7, 2015 Financial Statements & Report •Annual Financial Report –Review company’s financial position and results of operations –Instrument of financial disclosure •Independent Accountant’s Review –No Findings EXECUTIVE SUMMARY OF FINANCIAL STATEMENTS Assets Cash $ 160,494 Cash – Restricted for Capital Projects 59,804 Fixed Assets/Water Rights 3,047,177 Other Assets 21,100 Total Assets $ 3,288,575 Liabilities $ 69,927 Shareholder Equity 3,218,648 Total Liabilities & Equity $ 3,288,575 2014-15 Expenses Repairs & Maintenance $ 47,112 Property Taxes 29,411 Other General & Administrative 44,989 Depreciation 54,838 $ 176,276 2014-15 Assessments $ 193,212 Change in Shareholder Equity $ 16,936 Operating Budget To Actual Budget Actual Water Purchases - - Operating Labor $ 39,000 $ 39,061 Contract Services 27,100 39,715 Materials & Supplies 230 29 Administration 10,245 7,633 Insurance 4,050 4,863 Property , Franchise Taxes 39,000 29,411 Depreciation - - $ 119,625 $ 120,712 2014-15 Assessments ($17) $ 121,652 $ 121,652 Increase in Operating Reserve $ 2,027 $ 940 Replacement Reserve Budget To Actual Budget Actual Pipeline Replacement - SAR $ 60,000 $ 34,333 Weir 17 Gate Replacement - 1,310 $ 60,000 $ 35,643 2014-15 Assessments ($10) $ 71,560 $ 71,560 Increase in Replacement Reserve $ 11,560 $ 35,917 Beginning Reserve Balance $23,887 Ending Reserve Balance $ 59,804 Operational Challenges –Drought •Low water levels in Santa Ana River for deliveries during non-contract months •Limited water availability for Bear Valley Mutual to meet obligations during contract months –Infrastructure •Exposed pipes deteriorating due to age and vandalism •Limited replacement funding Operations and Maintenance •Operations –Monthly deliveries to 17 shareholders through 13 weirs –Total 2014-15 water available: 142,861 minors inches •94,650 from BV contract •48,211 from SAR flows –Total 2014-15 Deliveries •131,640 minors inches •To EVWD were 113,745 minors inches ( 79.6%) •Maintenance –Monthly weed/brush control –Preliminary survey work Capital Expenditures •Capital Expenditures - Completed –Replace leaking pipe from SAR crossing to NF intake –Replace broken slide gate with gate valve (weir 17) •Capital Expenditures - Proposed –Engineering study, replacement of SAR crossing and Plunge Creek siphon – Estimated Cost $30,000 –Complete survey and marking of North Fork pipeline alignment – Estimated Cost $16,000 Old pipe that has never been replaced Significant water leak supports tree growth, which threaten pipe Pipeline Crossing the Santa Ana River Repair band stolen exposing weak welds Pipes being dented by thrown rocks Plunge Creek Siphon Water Deliveries Rights Under 1885 Contract Terms MONTH ALLOTMENT (MINER’S INCHES PER DAY) ALLOTMENT PER SHARE (MINORS INCHES) FEBRUARY TO MAY 25% OF SANTA ANA RIVER FLOW JUNE 500 2.1 JULY 600 2.6 AUGUST 600 2.6 SEPTEMBER 550 2.3 OCTOBER 450 1.9 NOVEMBER 400 1.7 DECEMBER & JANUARY 25% OF SANTA ANA RIVER FLOW 2015-16 Projected Water Deliveries MONTH ESTIMATED ALLOTMENTS (MID) ESTIMATED ALLOTMENTS PER SHARE(MI) WITH SUPPLEMENTAL WATER (MID) February 219 .8 .8 March 238 .9 .9 April 230 .9 2.3 May 230 .9 2.3 June 500 2.1 2.1 July 600 2.6 2.6 August 600 2.6 2.6 September 550 2.3 2.3 October 450 1.9 1.9 November 400 1.7 1.7 December 186 .7 2.1 January 186 .7 .7 DESCRIPTION ADOPTED 2014-15 BUDGET PROPOSED 2015-16 BUDGET Operating Expenses Water Purchases (1,190 AF of SWP) $ 0 $ 150,000 Operating Labor /Equipment- EVWD 39,070 53,400 Contract Services 27,100 25,000 Legal Services 0 30,000 Materials & Supplies 230 1,000 Administration 10,000 10,000 Director Fees 175 100 Insurance 4,050 4,100 Property Taxes 39,000 30,000 Total Operating Expenses $119,625 $303,600 Capital Expenditures $60,000 $46,000 PROPOSED 2015-16 BUDGET DESCRIPTION PROPOSED 2014-15 BUDGET Proposed Funding Operating Expenses - Other $ 153,600 Operating Expenses – Water Purchases 150,000 Replacement Expenditures 46,000 Replacement Reserve Contribution 25,560 Total Proposed Funding:$ 375,160 Proposed Assessments – 7,156 Shares Operating Assessment - Other $22 per share Operating Assessment-Water Purchases (Optional) $21 per share Replacement Expenditures & Reserve (Optional) $10 per share Total Assessment: $53 per share 2015-16 ASSESSMENTS QUESTIONS?