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HomeMy WebLinkAboutAgenda Packet - North Fork Water Company - 04/07/2026 (Annual BOD)BOARD OF DIRECTORS ANNUAL MEETING 31111 Greenspot Road, Highland, CA 92346  April 7, 2026 ­ 2:00 PM AGENDA CALL TO ORDER ROLL CALL OF BOARD MEMBERS AGENDA 1.Approval of Agenda PUBLIC COMMENTS DISCUSSION AND POSSIBLE ACTION ITEMS 2.Board Re­Organization Election of Officers: President Vice President Secretary Chief Financial Officer General Manager 3.Consider Approval of April 1, 2025 Board of Directors' Organizational Meeting Minutes 4.FY 2026­27 North Fork Delivery Schedule and Operations Update 5.Consider Approval of Financial Statements for FY 2025­26 6.Consider Approval of Budget and Assessments for FY 2026­27 DIRECTORS' COMMENTS ADJOURN Pursuant to Government Code Section 54954.2(a), any request for a disability­related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above­ agendized public meeting should be directed to the North Fork Board Secretary (909)885­4900 at least 72 hours prior to said meeting. BOARD OF DIRECTORS ANNUAL MEETING31111 Greenspot Road, Highland, CA 92346 April 7, 2026 ­ 2:00 PMAGENDACALL TO ORDERROLL CALL OF BOARD MEMBERSAGENDA1.Approval of AgendaPUBLIC COMMENTSDISCUSSION AND POSSIBLE ACTION ITEMS2.Board Re­OrganizationElection of Officers:PresidentVice PresidentSecretaryChief Financial OfficerGeneral Manager3.Consider Approval of April 1, 2025 Board of Directors' Organizational Meeting Minutes4.FY 2026­27 North Fork Delivery Schedule and Operations Update 5.Consider Approval of Financial Statements for FY 2025­26 6.Consider Approval of Budget and Assessments for FY 2026­27 DIRECTORS' COMMENTS ADJOURN Pursuant to Government Code Section 54954.2(a), any request for a disability­related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above­ agendized public meeting should be directed to the North Fork Board Secretary (909)885­4900 at least 72 hours prior to said meeting. Agenda Item #3 April 7, 20261 NORTH FORK WATER COMPANY AGENDA STAFF REPORT To:Governing Board Members From:General Manager Subject:Consider Approval of April 1, 2025 Board of Directors' Organizational Meeting Minutes RECOMMENDATION: That the Board of Directors approve the April 1, 2025 Board of Directors Organizational meeting minutes as submitted. REVIEW BY OTHERS: This agenda item has been reviewed by Legal Counsel. FISCAL IMPACT: There is no fiscal impact associated with this agenda item. Recommended by: ____________________________ Michael Moore General Manager Respectfully submitted: ____________________________ Justine Hendricksen Board Secretary ATTACHMENTS: Draft April 1, 2025 Meeting Minutes Meeting Date: April 7, 2026 Agenda Item #3 Discussion Item NF Minutes 4/01/2025 sma 2 1 2 6 Draft Pending Approval President Morales called the Annual Board of Directors meeting to order at 2:07 p.m. PRESENT: James Morales Jr. Ronald Coats Phillip Goodrich David Smith ABSENT: Chris Carrillo EVWD Staff: Michael Moore Jeff Noelte Justine Hendricksen Patrick Milroy Rudy Guerrero Micah Kennedy John Drury Shayla Antrim LEGAL COUNSEL: Michele Staples (North Fork Water Company) STOCKHOLDERS: East Valley Water District GUEST(S): None A motion was made by Director Goodrich, seconded by Vice President Coats that the Board approve the April 1, 2025 agenda as submitted. The motion carried by the following: Ayes: Coats, Goodrich, Morales, Smith Noes: None Absent: Carrillo NF Minutes 4/01/2025 sma 2 1 2 6 PUBLIC COMMENTS The Board Secretary declared the public participation of the meeting open at 2:08 p.m. There being no written or verbal comments, the public participation section was closed. BOARD RE-ORGANIZATION ELECTION OF OFFICERS A motion was made by Director Goodrich, seconded by Director Smith to elect the slate of officers as follows: James Morales, Jr. be appointed Board President Ronald L. Coats be appointed Vice President Justine Hendricksen be appointed Secretary Brian Tompkins be appointed Chief Financial Officer Michael Moore be appointed General Manager The motion carried by the following: Ayes: Coats, Goodrich, Morales, Smith Noes: None Absent: Carrillo APPROVAL OF BOARD OF DIRECTORS ANNUAL MEETING MINUTES FOR APRIL 30, 2024 A motion was made by Director Smith, seconded by Vice President Coats that the Board approve the April 30, 2024 Board of Directors meeting minutes as submitted. The motion carried by the following: Ayes: Coats, Goodrich, Morales, Smith Noes: None Absent: Carrillo PROPOSED FY 2025-26 WATER DELIVERIES AND OPERATIONAL UPDATE The Operations Manager presented a proposed water delivery schedule for Fiscal Year 2025–26 and provided an operational update. He informed the Board about the recent leak on the Plunge Creek Pipeline caused by the Line Fire and reported that a quote of $310,000 from Merlin Johnson Construction was selected to replace the damaged 36- inch above-ground pipe. He also discussed recent maintenance activities, including the cleaning of the North Park intake box and the removal of tree roots from the North Fork Pipeline to improve flow capacity. He suggested developing a maintenance and inspection program for the North Fork Pipeline and noted that staff will work with NF Minutes 4/01/2025 sma 2 1 2 6 consultants to evaluate repair and replacement options, as well as assess potential pre- treatment methods for water entering the plant. FINANCIAL STATEMENTS FOR FY 2024-25 BUDGET AND ASSESSMENTS FOR 2025-26 NF Minutes 4/01/2025 sma 2 1 2 6 Absent: Carrillo DIRECTORS’ COMMENTS ADJOURN Agenda Item #4 April 7, 20261 1 8 0 1 NORTH FORK WATER COMPANY AGENDA STAFF REPORT To:Governing Board Members From:General Manager Subject:FY 2026-27 North Fork Delivery Schedule and Operations Update RECOMMENDATION: BACKGROUND / ANALYSIS: Meeting Date: April 7, 2026 Agenda Item #4 Discussion Item Agenda Item #4 April 7, 20262 1 8 0 1 The chart below shows the proposed month-by-month water delivery schedule: 2026 Delivery Schedule Month Miner’s Inch Day (MID) River Flow CFS NF Share CFS NF Miner’s Inch Miner’s Inch per Share January 2026 (Actual) February 2026 (Actual) March 2026 (Actual) April 2026 (Estimate) May 2026 (Estimate) June 2026 July 2026 August 2026 September 2026 October 2026 November 2026 December 2026 (Estimate) Pipeline and Access Repairs: The District operates and maintains the North Fork facilities on behalf of the Company and monitors the North Fork pipeline for leaks and repairs them as necessary. The North Fork Intake Box is cleaned annually for optimal operation. Agenda Item #4 April 7, 20263 1 8 0 1 REVIEW BY OTHERS: This agenda item has been reviewed by Finance and Operations Departments. FISCAL IMPACT: There is no fiscal impact associated with this agenda item. Recommended by: ____________________________ Michael Moore General Manager Respectfully submitted: ____________________________ Patrick Milroy Operations Manager ATTACHMENTS: Presentation-FY 2026-27 Water Deliveries and Operational Update FY 2026-27 WATER DELIVERIES AND OPERATIONAL UPDATE April 7, 2026 WATER DELIVERIES MONTH ALLOTMENT (MINER’S INCHES PER DAY) ALLOTMENT PER SHARE (MINER’S INCHES) January - May 25% of Santa Ana River Flow June 500 2.0 July 600 2.5 August 600 2.5 September 550 2.3 October 450 1.9 November 400 1.6 December 25% of Santa Ana River Flow 2026 WATER DELIVERIES MONTH ALLOTMENT (MINER’S INCHES PER DAY) ALLOTMENT PER SHARE (MINER’S INCHES) January (Actual)500 2.0 February (Actual)600 2.4 March (Actual)600 2.5 April (Estimate)600 2.5 May (Estimate)600 2.5 June 500 2.0 July 600 2.5 August 600 2.5 September 550 2.3 October 450 1.9 November 400 1.6 December (Estimate)25% of River Flow 2.0 PLUNGE CREEK PIPE CROSSING CUT OUT 10 FEET OF PIPE TO REPAIR LEAK PIPE REPAIR •10 Feet of New Steel Pipe Installed October 2024 •$16,800 PLUNGE CREEK REPAIRS •Permanent Repairs Were Approved in January 2025 •300 Feet of New Pipeline Was Installed and Completed in August 2025 8 PLUNGE CREEK REPAIRS •Leak on 30-inch Pipe Crossing the Santa Ana River •June 2025 9 PLUNGE CREEK REPAIRS •A Section of 30-inch Pipe Needed to Be Cut Out and Replaced 10 PLUNGE CREEK REPAIRS •New 30-inch Pipe Installed and Completed in October 2025 •Total Cost $127,400 11 PLUNGE CREEK REPAIRS NEXT STEPS •Continue to Inspect The North Fork Pipe •Assessing Pretreatment of North Fork Water Before Entering Plant 134 to Utilize Max Flows When Water Quality Is Poor Relative to Current Plant Design Agenda Item #5 April 7, 20261 1 8 0 3 NORTH FORK WATER COMPANY AGENDA STAFF REPORT To:Governing Board Members From:General Manager Subject:Consider Approval of Financial Statements for FY 2025-26 RECOMMENDATION: BACKGROUND / ANALYSIS: Statement of Financial Position •Operating Cash increased 6%, from $48,781 to $51,497. Staff aims to maintain a cash balance between $60,000 and $80,000 to provide a buffer for unexpected expenses and will work to restore the balance to that target range. •Cash - Restricted for Capital Projects decreased from $199,347 in the prior year to $166,097, primarily due to payment of an invoice as of January 31, 2026 related to the replacement of the 36” aboveground pipe at Plunge Creek. •Pipelines and Valves increased by $155,320 due to the capitalization of the new Plunge Creek asset. Statement of Activities •Legal Expenses were below budget, as the Company had initially anticipated potential litigation and budgeted accordingly. While no litigation is currently Meeting Date: April 7, 2026 Agenda Item #5 Discussion Item Agenda Item #5 April 7, 20262 1 8 0 3 expected, staff recommends maintaining the prior year budget level to account for potential legal matters involving outstanding shareholders. •Contracted Repairs and Maintenance exceeded budget by more than 700%, primarily due to the Company covering half the cost of repairing the 30” pipe leak crossing the Santa Ana River. •Professional Services decreased by 64% compared to the prior year, as surveying services related to the prior year pipeline alignment dispute were no longer required. The financial statements were reviewed by the accounting firm of Rogers, Anderson, Malody & Scott (RAMS), who had no findings as a result of their review procedures. REVIEW BY OTHERS: This agenda item has been reviewed by the Administration and Finance Departments. FISCAL IMPACT: There is no fiscal impact associated with this agenda item. Recommended by: ____________________________ Michael Moore General Manager Respectfully submitted: ____________________________ Rudy Guerrero Finance Manager ATTACHMENTS: Presentation-NF Financial Statements North Fork Financial Statements FY 2025-26 FINANCIAL STATEMENTS FY 2025-26 April 7, 2026 FINANCIAL STATEMENTS AND REPORTS •Annual Financial Report •Review Company’s Financial Position and Results of Operations •Instrument of Financial Disclosure INDEPENDENT ACCOUNTANT’S REVIEW NO FINDINGS STATEMENT OF FINANCIAL POSITION Assets Cash $ 51,497 Cash - Restricted for Capital Projects 166,097 Fixed Assets / Water Rights 3,671,182 Less: Accumulated Depreciation (1,022,850) Other Assets 13,418 TOTAL ASSETS $ 2,879,344 Liabilities $ 133,746 Shareholder Equity 2,745,598 TOTAL LIABILITIES & EQUITY $ 2,879,344 STATEMENT OF ACTIVITIES BUDGET ACTUAL Operating Labor / Equipment - EVWD $ 14,000 $ 5,843 Contract Maintenance 9,000 72,078 Legal Services 100,000 14,588 Other Professional Services 8,500 7,498 Administration 3,000 3,252 Materials & Supplies 500 1,776 Insurance 9,000 10,893 Property, Franchise Taxes 25,000 22,278 Depreciation 0 57,390 Operating Expenses $ 169,000 $ 195,596 Shareholder Assessment - Operating 169,000 168,166 Shareholder Assessment - Capital 0 0 Change In Equity - Increase $ (27,430) i Table of Contents Schedule Pa e Or anization Dat 1 Independent Accountant’s Review Report 2 - 3 Statements of Financial Positio 4 Statements of Activities 5 Statements of Chan es in Shareholders' Equit 6 Statements of Cash Flows 7 Notes to Financial Statements 8 - 11 Supplementary Information Schedule of Property, Plant and Equipment, and Accumulated Depreciatio One 12 - 13 Schedule of Shareholders Two 14 Statement of Financial Position Comments Three 15 North Fork Water Company (A California Corporation) Organization Data January 31, 2026 and 2025 1 DATE AND STATE OF INCORPORATION 1885 - California DURATION OF CHARTER Perpetual Existence NATURE OF BUSINESS Water Company Located in Highland, California DATE OF EXEMPTION LETTER September 13, 1964 OFFICERS James Morales, Jr. President Ronald Coats Vice President Brian Tompkins Chief Financial Officer Justine Hendricksen Secretary DIRECTORS David Smith Ronald Coats James Morales, Jr. Phillip Goodrich Chris Carrillo MANAGER Under Agreement with East Valley Water District 2 3 2026 2025 Current Assets Cash 51,497$ 48,781$ Cash - Restricted for Ca ital Pro ects 166,097 199,347 Pre aid Ex enses 13,418 13,583 Assessments Receivable - 230 Total Current Assets 231,012 261,941 Pro ert Plant and E ui ment Im rovements - Fencin 2,840 2,840 Pi elines and Valves 3,012,731 2,857,411 Less: Accumulated De reciation 1,022,850 965,460 Total Pro ert , Plant, and E ui ment 1,992,721 1,894,791 Other Assets Water Ri hts - Januar 31, 1952 655,611 655,611 Total Assets 2,879,344$ 2,812,343$ Current Liabilities Accounts Pa able 133,746$ 39,315$ Total Current Liabilities 133,746 39,315 Balance Januar 31 Ca ital Stock Authorized 7,200 Shares - 7,156 Issue and Outstandin at $100 Stated Value 715,600 715,600 Additional Paid-In Ca ital 406,366 418,392 Contributed Ca ital 1,267,848 1,305,694 Retained Earnin s 355,784 333,342 Total Shareholders' E uit 2,745,598 2,773,028 Total Liabilities and Shareholders' E uit 2,879,344$ 2,812,343$ See accompanying notes and Independent Accountants' Review Report. LIABILITIES AND SHAREHOLDERS' EQUITY North Fork Water Compan (A California Corporation) Statements of Financial Position January 31, 2026 and 2025 ASSETS 4 2026 2025 Revenues Water Sales -$ -$ Ex enses Re airs and Maintenance Labor and E ui men 5,843 9,046 Contracted 72,078 14,679 Administration 3,252 1,814 Accountin Fees 2,998 2,770 Other Professional Services 4,500 17,992 Le al 14,588 97,005 Materials and Su lies 1,776 321 Pro ert Taxes 21,478 22,232 Insurance 10,893 8,860 De reciation 57,390 55,837 Total Ex enses 194,796 230,556 Loss from O erations 194,796 230,556 Provision for Income Taxes State Income Taxes 800 800 Excess of Ex enses over Revenues before Contributions 195,596 231,356 Contributions Shareholder Assessments - Operating 168,166 164,588 Shareholder Assessments - Capital - 121,652 Change in Equity (27,430)$ 54,884$ See accompanying notes and Independent Accountants' Review Report. North Fork Water Compan (A California Corporation) Statements of Activities For the years ended January 31, 2026 and 2025 5 Cumulative Common Stoc Additional Contributed Excess of Total Issued an Paid-i Ca ital Revenue Ove Shareholders' Outstandin Ca ital Grant Ex enses E uit Balance, Januar 31, 2025 $ 715,600 $ 418,392 $ 1,305,694 $ 333,342 $ 2,773,028 Shareholder Assessments 168,166 168,166 Excess of Ex enses Over Revenues 195,596 195,596 Allocate De reciation 12,026 37,846 49,872 - Balance, Januar 31, 2026 $ 715,600 $ 406,366 $ 1,267,848 $ 355,784 $ 2,745,598 Cumulative Common Stoc Additional Contributed Excess of Total Issued an Paid-i Ca ital Revenue Ove Shareholders' Outstandin Ca ital Grant Ex enses E uit Balance, Januar 31, 2024 $ 715,600 $ 430,418 $ 1,343,540 $ 228,586 $ 2,718,144 Shareholder Assessments 286,240 286,240 Excess of Ex enses Over Revenues 231,356 231,356 Allocate De reciation 12,026 37,846 49,872 - Balance, January 31, 2025 $ 715,600 $ 418,392 $ 1,305,694 $ 333,342 $ 2,773,028 See accompanying notes and Independent Accountants' Review Report. January 31, 2025 January 31, 2026 North Fork Water Compan (A California Corporation) Statements of Changes in Shareholders' Equity For the years ended January 31, 2026 and 2025 6 2026 2025 42,810$ 178,242$ 800 800 43,610 179,042 168,396 286,077 168,396 286,077 155,320 - 155,320 - 30,534 107,035 248,128 141,093 217,594$ 248,128$ 195,596$ 231,356$ 57,390 55,837 165 (1,511) 94,431 (2,012) (43,610)$ (179,042)$ Cash Flows from Operating Activities Cash Paid for Services and Materials Income Taxes Paid Net Cash used by Operating Activities Cash Flows from Financing Activities Contributions from Shareholders to Pay Suppliers Net Cash Provided by Financing Activities Cash Flows from Investing Activities Acquisition and Construction of Assets Net Cash used for Investing Activities Net Increase (Decrease) in Cash Cash, Beginning of Year Cash, End of Year Reconciliation of Excess of Expenses over Revenues to Net Cash Used By Operating Activities Excess of Revenue over (under) Expenses Adjustments: Depreciation (Increase) Decrease in: Prepaid Expenses Increase (Decrease) in: Accounts Payable and Accrued Liabilities Net Cash used by Operating Activities See accompanying notes and Independent Accountants' Review Report. North Fork Water Compan (A California Corporation) Statements of Cash Flows For the years ended January 31, 2026 and 2025 7 North Fork Water Company (A California Corporation) Notes to Financial Statements January 31, 2026 and 2025 8 NOTE 1 - NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations North Fork Water Company (the Company) is a mutual water company. The Company's primary purpose is to secure surface water from the Santa Ana River and other available sources for delivery to its shareholders in accordance with its delivery schedules and rules and regulations. Basis of Accounting The financial statements are presented in accordance with Financial Accounting Standards Board (FASB) using the accrual basis of accounting. Capitalization Policy The Company’s capitalization basis is cost if assets are purchased or constructed and acquisition value if assets are contributed. Depreciation of Plant and Equipment The carrying values of plant and equipment are depreciated over the estimated useful lives of the assets using the straight-line method. Provision for Income Taxes The Company is exempt from federal income taxes under Section 501(c)(12) of the Internal Revenue Code. Therefore, no provision for federal income taxes is reflected in the financial statements. State franchise tax is computed at the current corporate rate. For the fiscal years ended January 31, 2026 and 2025 state franchise taxes were $800. Use of Estimates The preparation of financial statements in conformity with United States generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, the actual results could differ from those estimates. North Fork Water Company (A California Corporation) Notes to Financial Statements January 31, 2026 and 2025 9 NOTE 1 - NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – continued Cash and Cash Equivalents For purposes of the statement of cash flows, the North Fork Water Company considers cash and cash equivalents as short term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Cash equivalents have an original maturity date of three months or less from the date of purchase. As of January 31, 2026, the Company’s balance of funds on deposit with financial institutions did not exceed the federal depository insurance limit of $250,000. NOTE 2 - RELATED PARTY TRANSACTIONS As of January 31, 2026, East Valley Water District owned 99.93% of the outstanding shares of the Company. The Company and East Valley Water District have certain officers and all Board Directors in common. The following related party transactions occurred for the years ending January 31, 2026 and January 31, 2025: East Valley Water District paid the Company operating and capital assessments of $168,049 and $285,880, respectively. The Company paid East Valley Water District for labor, administration, and use of vehicles in the amounts of $9,095 and $10,860, respectively. NOTE 3 - DEPARTURE FROM US GAAP As noted in Note 2, East Valley Water District owns 99.93% of the Company and appoints (or approve) a controlling majority of the members of the Company’s governing board. Under the AICPA’s Audit and Accounting Guide for State and Local Governments, this characterizes the Company as a governmental entity and therefore subject to the financial reporting standards required by the Governmental Accounting Standards Board (GASB). The accompanying financial statements were prepared in accordance with the reporting requirements of the Financial Accounting Standards Board (FASB) which represents a known departure from US GAAP. North Fork Water Company (A California Corporation) Notes to Financial Statements January 31, 2026 and 2025 10 NOTE 4 - PROPERTY, PLANT, AND EQUIPMENT A summary of changes in property, plant and equipment follows: Fixed Assets Balance Balance Januar 31, 2025 0 Additions Deletions Januar 31, 2026 Distribution S ste Pi elines 2,851,372$ 155,320$ -$ 3,006,692$ Ditch Diversion Boxes 4,729 - - 4,729 Valves 1,310 - - 1,310 2,857,411 155,320 - 3,012,731 Im rovements Fencin - North Fork Intake 2,840 - - 2,840 Total Fixed Assets 2,860,251$ 155,320$ -$ 3,015,571$ Accumulated Depreciation Balance Balance January 31, 2025 Additions Deletions January 31, 2026 Distribution System Pipelines (958,142)$ (57,229)$ -$ (1,015,371)$ Ditch Diversion Boxes (3,752) (95) - (3,847) Valves (726) (66) - (792) (962,620) (57,390) - (1,020,010) Improvements Fencing - North Fork Intake (2,840) - - (2,840) Total Accumulated Depreciation (965,460)$ (57,390)$ -$ (1,022,850)$ Total Fixed Assets, Net 1,894,791$ 97,930$ -$ 1,992,721$ North Fork Water Company (A California Corporation) Notes to Financial Statements January 31, 2026 and 2025 11 NOTE 5 - WATER RIGHTS There is an agreement dated May 23, 1895, between North Fork Water Company and Bear Valley Land and Water Company (now Bear Valley Mutual Water Company) that provides for delivery of water to North Fork Water Company as follows: Month Day Inches June 500 July 600 August 600 September 550 October 450 November 400 December through May ¼ Flow of Santa Ana River The water deliveries in the period June through November may be reallocated between months, but no more than 600 day inches are to be delivered in any one month. Water rights, as summarized above, have been valued at $655,611, which is the difference between the par value of the capital stock outstanding and the value of the remaining assets at January 31, 1952. NOTE 6 - ANNUAL SHAREHOLDER ASSESSMENTS Annual shareholder operating assessments were set at $23.50 per share for the year ended January 31, 2026. No capital assessments were levied during the year. NOTE 7 - SUBSEQUENT EVENTS In the preparation of these financial statements, the Company considered subsequent events through March 25, 2026, which is the date these financial statements were issued. THIS PAGE IS LEFT BLANK INTENTIONALLY SUPPLEMENTARY INFORMATION Schedule One Page 1 of 2 January 31, 202 Date Beginning Ending Remaining Beginning Ending Acquire Balance Balance Life Years Balance Provision Balance Canal Replacements 1995 41,862$ 41,862$ 19 24,697$ $ 837 25,534$ Canals - 1/2 interest Various 67,610 67,610 67,610 -67,610 Ditch Diversion Boxes 1985 4,729 4,729 10 3,752 95 3,847 Canals - 36" Pipeline 1995 8,958 8,958 18 5,460 179 5,639 Canal Replacement (La Tourette)1997 37,511 37,511 21 20,999 750 21,749 Canal Replacement (Plunge Cree Syphon to Cram School)1999 68,937 68,937 23 35,867 1,380 37,247 Pipeline Replacement 90' of 26" Pipeline (behind Walmart)2002 9,941 9,941 25 4,776 199 4,975 Pipeline Replacement 16" Pipeline (Highland Avenue)2004 3,010 3,010 27 1,320 60 1,380 Canal Replacement 36" Pipeline - SAR to Plunge Creek Sandbox)2009 2,493,592 2,493,592 33.5 773,016 49,872 822,888 Pipeline Replacement 50' of 30" DIP - Highland at VFW Hall 2011 26,205 26,205 35 7,336 524 7,860 Pipeline Replacement 220' of 24" - SAR Xing to Turnout 2014 34,333 34,333 38 7,557 687 8,244 6" Gate Valve (Wier 17)2014 1,310 1,310 8 726 66 792 Pipeline Replacement 80' of 30" - SAR Xing at 7 Oaks Da 2017 59,413 59,413 41 9,504 1,188 10,692 Pipeline Replacement 300' of 36" - Plunge Creek Crossing 2025 -155,320 49.5 -1,553 1,553 2,857,411 3,012,731 962,620 57,390 1,020,010 Improvements: Security Fencing - NF Intake 2003 2,840 2,840 0 2,840 -2,840 Totals 2,860,251$ 3,015,571$ $ 965,460 57,390$ 1,022,850$ Construction in Progress Various -$ -$0 --- North Fork Water Company (A California Corporation) Schedule of Property, Plant and Equipment, and Accumulated Depreciation January 31, 2026 Property, Plant and Equipment Accumulated Depreciation 12 Schedule One Page 2 of 2 January 31, 2025 Date Beginning Ending Remaining Beginning Ending Acquire Balance Balance Life Years Balance Provision Balance Canal Replacements 1995 41,862$ 41,862$ 20 23,860$ $ 837 24,697$ Canals - 1/2 interest Various 67,610 67,610 67,610 -67,610 Ditch Diversion Boxes 1985 4,729 4,729 11 3,657 95 3,752 Canals - 36" Pipeline 1995 8,958 8,958 19 5,281 179 5,460 Canal Replacement (La Tourette)1997 37,511 37,511 22 20,249 750 20,999 Canal Replacement (Plunge Cree Syphon to Cram School)1999 68,937 68,937 24 34,487 1,380 35,867 Pipeline Replacement 90' of 26" Pipeline (behind Walmart)2002 9,941 9,941 26 4,577 199 4,776 Pipeline Replacement 16" Pipeline (Highland Avenue)2004 3,010 3,010 28 1,260 60 1,320 Canal Replacement 36" Pipeline - SAR to Plunge Creek Sandbox)2009 2,493,592 2,493,592 34.5 723,144 49,872 773,016 Pipeline Replacement 50' of 30" DIP - Highland at VFW Hall 2011 26,205 26,205 36 6,812 524 7,336 Pipeline Replacement 220' of 24" - SAR Xing to Turnout 2014 34,333 34,333 39 6,870 687 7,557 6" Gate Valve (Wier 17)2014 1,310 1,310 9 660 66 726 Pipeline Replacement 80' of 30" - SAR Xing at 7 Oaks Da 2017 59,413 59,413 42 8,316 1,188 9,504 2,857,411 2,857,411 906,783 55,837 962,620 Improvements: Security Fencing - NF Intake 2003 2,840 2,840 0 2,840 2,840 Totals 2,860,251$ 2,860,251$ $ 909,623 55,837$ $ 965,460 Construction in Progress Various -$ -$0 --- North Fork Water Company (A California Corporation) Schedule of Property, Plant and Equipment, and Accumulated Depreciation January 31, 2025 Property, Plant and Equipment Accumulated Depreciation 13 Schedule Two Number of Shareholder Certificate Number s Shares East Valley Water District 7,151.00 Michael & Patricia Raley 1414 5.00 Total 7,156.00 North Fork Water Company (A California Corporation) Schedule of Shareholders January 31, 2026 14 North Fork Water Company Schedule Three (A California Corporation) Statement of Financial Position Comments January 31, 2026 and 2025 15 CURRENT ASSETS Current assets consisted of the following: 2026 2025 Cash in Checking 217,594$ 248,128$ Prepaid Insurance 4,494 4,599 Prepaid Taxes 8,924 8,984 Assessments Receivable -230 Totals 231,012$ 261,941$ PROPERTY, PLANT AND EQUIPMENT A summary of property, plant and equipment, and accumulated depreciation is shown in Schedule One. The value of the one-half interest in canals was the appraised value in 1940, with subsequent additions being valued at cost. The provision for depreciation amounted to $57,390 computed at established rates using the straight-line method. CURRENT LIABILITIES Current liabilities consisted of the following: 2026 2025 Accounts Payable Contract Services 122,069$ 17,992$ Labor and Burden - 2,532 Legal - December & January 192 6,347 Landscaping 700 1,400 EVWD Insurance Reimbursement 10,785 11,044 Total Accounts Payable 133,746$ 39,315$ Agenda Item #6 April 7, 20261 1 8 0 2 NORTH FORK WATER COMPANY AGENDA STAFF REPORT To:Governing Board Members From:General Manager Subject:Consider Approval of Budget and Assessments for FY 2026-27 RECOMMENDATION: BACKGROUND / ANALYSIS: DISCUSSION Meeting Date: April 7, 2026 Agenda Item #6 Discussion Item Agenda Item #6 April 7, 20262 1 8 0 2 The Operating Budget proposed for Fiscal Year (FY) 2026-27 is shown below with prior year budget and actual numbers (excluding depreciation, a non-cash expense) for comparison: Item 2025-26 Adopted 2025-26 Actual 2026-27 Proposed TOTAL $ 169,000 $ 138,206 $ 165,000 •North Fork Pipeline Realignment - East Valley Water District recently completed a technical evaluation of long-term improvements to the North Fork Pipeline following prior blockages and repair work in the Plunge Creek crossing area. The study evaluated several alternatives and identified Alternative 1 as the Agenda Item #6 April 7, 20263 1 8 0 2 preferred approach, which would realign approximately 215 feet of pipeline with a four-foot north offset and replace the affected segment with upgraded pipe materials to improve reliability and maintenance access. As a joint owner of the pipeline, NFWC is expected to contribute 50% toward the design and construction costs for these improvements. Based on the engineering estimate for Alternative 1, and assuming construction would occur in approximately four years, staff estimates that NFWC’s 50% share of the project will be approximately $500,000 when the project is ready to begin. As of January 31, 2026 the Company has $44,027 in unencumbered cash which can be designated for this project. Staff recommends building on this amount through capital assessments over each of the next four years to accumulate NFWC’s anticipated share of the project costs. Under this approach, the necessary reserve funds will gradually be collected as additional design and cost information continues to be refined. To begin building this reserve, staff is proposing a capital assessment of $16.00 per share, which is expected to generate $114,496, or about a quarter of the additional funds needed for NFWC to meet its anticipated capital contribution when the project proceeds. REVIEW BY OTHERS: This agenda item has been reviewed by Administration, Finance, and Operations Departments. FISCAL IMPACT: Adoption of the Operating Budget as presented authorizes operating expenses of $165,000 with shareholder operating assessments of $164,588 and capital assessments of $114,496. Recommended by: ____________________________ Michael Moore General Manager Respectfully submitted: ____________________________ Rudy Guerrero Finance Manager ATTACHMENTS: Presentation-NF Budget and Assessments FY 2026-27 BUDGET AND ASSESSMENTS April 7, 2026 PROPOSED 2026-27 BUDGET DESCRIPTION PROPOSED 2026-27 BUDGET ADOPTED 2025-26 BUDGET OPERATING EXPENSES Operating Labor/Equipment - EVWD $ 6,500 $ 14,000 Contract Services 9,000 9,000 Legal Services 100,000 100,000 Materials & Supplies 100 500 Administration 3,500 3,000 Other Professional Services 8,000 8,500 Insurance 12,900 9,000 Property/Franchise Taxes 25,000 25,000 TOTAL OPERATING EXPENSES $ 165,000 $ 169,000 PROPOSED 2026-27 OPERATING ASSESSMENTS $23.00 2026-27 ASSESSMENTS DESCRIPTION PROPOSED 2026-27 BUDGET Operating Expenses $ 165,000 TOTAL PROPOSED EXPENSES $ 165,000 Proposed Funding - 7,156 Shares Operating Assessment - $23.00 Per Share $ 164,588 Operating Cash - Current Balance $48,781 412 TOTAL FUNDING $ 165,000 PROPOSED 2026-27 CAPITAL ASSESSMENT $16 CAPITAL ASSESSMENTS DESCRIPTION PROPOSED 2026-27 BUDGET Proposed Project Pipeline Realignment - Alternative 1 - 4 Ft. Offset (50% Share of Estimated $1,000,000 Project Cost)$ 500,000 Reserve for Capital Projects Beginning Balance (Cash Less Payable @ 1/31/26)$ 44,027 FY 2026-27 Capital Assessment (7,156 @ $16)114,496 Balance Collected over Next 3 Years 341,477 Projected Reserve Balance by 1/31/2030 $ 500,000