Independent audit says district is in excellent position

The Pine Cove Water District’s 2012-13 financial statements “present fairly, in all material respects, the financial position … of the Pine Cove Water District as of June 30, 2013, and the respective changes in financial position and cash flows … in accordance with accounting principles …” said Terry Shea, certified public account, from the district’s audit firm, Rogers, Anderson Malody and Scott of San Bernardino.

Shea gave the glowing report at PCWD’s Oct. 9 board meeting.

“This is our highest and best assurance,” Shea said, interpreting the stilted accounting jargon. He also stressed that there were no disagreements between the firm and the district’s management over the reports. The board accepted the audit with unanimity.

PCWD’s current ratio — current assets to debt — is about 6:1, which Shea described as very good. The industry’s standard is usually twice the assets to liabilities, with three times being safe. PCWD is in an excellent position, he noted.

Regarding this year’s budget, General Manager Jerry Holldber reported that expenses for the first quarter of fiscal year 2013-14 were $228,000, about 28 percent of the year’s budget.

Revenue has totaled $134,000 or about 18 percent of the projected total. Revenue is limited to water sales during the first half of the fiscal year.

In January, the county begins to distribute property tax payments to the special districts.

The board held a closed session to discuss two possible real estate transactions.

PCWD is considering purchasing property on Franklin Drive and gave negotiating directions to Holldber.

The other issue was the potential sale of leased premises at PCWD’s Rocky Point storage tank property.

“The board authorized Jerry to negotiate for the parcel of land off of Franklin, next to the [Mountain Resource Center] and the [district] treatment plant. We also authorized him to pursue options about the tower site,” reported PCWD President Michael Esnard.

A special meeting about these negotiations was scheduled for 10 a.m. Wednesday, Oct. 16, at the office.

Pipeline installation along Highway 243 was completed. More pipe installation will continue through the winter in other areas of the district.

While Holldber reported that water production was nearly 2.8 million gallons in September, he said he had questions about the actual amount.

He will test the well meters this month and provide a report and evaluation to the board at the November meeting.