Fern Valley Water accepts 2015 – 16 audit

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 Photo by Marshall Smith

At its Dec. 16 meeting, the Fern Valley Water District Board of Directors unanimously accepted the 2015-16 audit and heard General Manager Victor Jimenez report that water supply was in good condition.

Teaman, Ramirez and Smith of Riverside performed the audit and reported that “the financial statements present fairly, in all material respects, the respective financial position of the business-type activities of the FVWD as of June 30, 2016…”

In Fiscal Year 2015-16, FVWD’s revenues dropped about $38,000 or 3 percent. Customers conserving water was the reason. FVWD customers used 30.8 million gallons during the fiscal year, which was 2.2 million less than the prior fiscal year.

Expenses were also slightly less in fiscal 2015-16. This was largely due to a small depreciation and reduced non-operating expenses.

The district’s total net position is $7.5 million, a $92,500 increase.

The largest liabilities remain pensions, other post-employment benefits (health insurance) and the Saunders Meadows bond. The latter is paid from assessments on the properties in that district.

FVWD’s 2016-17 budget includes an additional $200,000 to pay nearly two-thirds of the estimated unpaid balance. The directors expect this to reduce the annual interest costs to CAL PERS by $19,000.

“We might consider fully funding it this year,” suggested Director Richard Schnetzer. This result free more than $40,000 in future budgets.

As a result of the review of the internal controls, the board will have a purchasing policy prepared this year.

“The audit makes the district look very good,” Schnetzer said summarizing the whole report.

The board also approved a contract with architect Jim Marsh to expand its conference and break rooms area this year.

Reporting on the November water production, Jimenez said “Everything continues to run smoothly.” While more well levels decreased, the decrease was slight. Offsetting this minor decrease were large increases in the levels of other wells, such as a 5-foot rise in the level of well no. 14.

Production was up about 16 percent in November compared to 2015. Wells continued to be the source of about one-third of the district’s water.

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