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Home My WebLink About; ; 1980-1981 Water Utility Fund Audit; 1981-06-30� i � = � � � � - �_ � A � , � r� � r � , � CITX OF CAR�,SBAD Water U�ility Fund Financia:t Statem�n�s June 30, 1931 (With A�coun�ants' Rcpor� Thereon) � _ .. -.. 4 4 �� ,. . ,�.# ° , � r� � � � �l r The Honorable Mayor and Ci�y Cnuncil City ot Carlsbad, Calit�rnia CERTIFIED PUSLICAC(;<�UNTANTS FOURTEEN CORP �i1ATE PLAZA DRIV� NEWpORT BE�L•H, CAUFORNIA9266q na��s�os�t , We have examined �he iinancial statements of thE: Water_ U�ility ; Fund of the City of Carlsbad, Cali�ornia, as of d,� for the y,ear ended June 30, 1981. Our examanation was made in accoxdance with �y,� generally accepted auditing s�an+�ards, and accordingly, included such �ests �f the accounting records and such other auditing ; procedures as we considered necessary in �.he circumstances. As more throughl.y descxibed in not�e 2 of the no�es to the � financial statements, the City has changed its methods of ��-� accoun�ing for accrued payrolT, depreciation of certaa.n :E.ixed assets not previous]_y depreciated and t�e write-o�f of ineters and services previously capital.ize3 �o conform with Statement Z of the Na�ional Council on Governmental Accounting. In our opini�on, �he aforementioned financial statements pres�nt; � �airly the financial position of the Water U�ility Fund of the City o£ Carlsbad, California at Juiie 30, 1.981, and the results of its operations and the changes in its financial position :Eor the year then ended, in contormity with genera].1y accepted accoun�ing principles which, zxcept �or thA changes wifih which we concur (as discussed in the preceeding paragraph), h�ve been applied on a �► basis consistent with that o� �he preceding year. 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CiTY OF CARLSBAD Water Utility Fund S�atement of Revenues, Expenses, and Chanqes in Retained Earnings Year ended June 30, ).981 Qperating revenues: Me�ered water sales � $1,707,757 Other charges for services 6�,g�� Total operating revenu�s 1,775,734 Operating expenses: Personal services 326,440 Offi'ce expenses 22,420 Repairs and mainter�ance 13a,Z85 Prefessional servic�s 12�:,350 Transportation Zy,g�� Tnsurance 54 , ",65 Purchased water $42, �, �39 Depreciation and amortization .�4��,�g�, Total operating expenses 1,655,756 Operating income 119,978 Non-op�rating revenues (expenses): �nterest income 221,£357 Int�rest expense and fisca3 agent fees ( 74,98�) Total non-operating revenues (expenses) 146,872 Net income 266,850 Retained earnings at beginniny af year 4,61&,854 Effect of change a.n accounting principle5 (note 2) (850,523) R��ained earnings at beginning oF year, as adjusted 3,,766,331 Retaineci earnings at end of year $4,033,181 See accompanying Notes to�Financial Statements. .4 � � : � � ; � ._ � R � � 1�► .� 1 � � � �V, � � � a� , # � � � ��1 � � � s B i y � �,� :� � � � �. _ c:I'i'Y Ux' C:AFZLS�AD Water Utility Fund Statement af Changes in Financial Positipn Year ended June 30, 198,1 Sources o� working capital: Operations Net income Items not xequiring working capxtal: Depreciation and amortization Warking capital provided by operations Uses of warkang capital: Acquisition af property, plant, an�3 equipment Decrease in long-term revenue bonds payable Net increase in other re�tricted assets Net decrease in other current liabilities payab2:e from restricted assets Total uses of working ca�ital Net increase in worY,ing capi�al Elements ot net increase (�ecrease) in unrestricted working capit�a7.: Cash and cash equivalents Accounts receivable Aecrued interest r��eivable Inventory Prepaid expenses Aacounts payable Accrued salaries Due to other funds Deposits payable Net increase in wor?:ing capital See accompanying Nates to Financial Statements. m $ 266,$50 143,481 410 , 3 3 ], 25,355 105,OJ0 102,8f6 2�,344 257,565 � i52,766 $ 172,003 63,901 (24,709) 5,775 (2,269) 24,693 (6,700) (35,628) (44,300) � 152,766 .i J � r � �-- 0 C� CITY OF CART,SBAD Water Utility Fund C� Notes to Financial Statements June 30, 1981 (1) Summary of Significant Accounting PoZicies � The tiVater Utility Fund is an enterprise fund of the Cit� of Carlsbad, California whi�h is used to account for activities necessary to provide wa�er services to the residen�s of the City inc:iuding, but not limii:ed to, opexationa, maintenance, financing and related debt service, billinc� and collection, and th� acquisition ot fixed asse�s that are �ati7.ized in providing these '1�R s er ��a. c e s. #� � I , , � , � �� t Y � �, ,� � ; ;� ,� � .� As an en�erprise �und, its operations are iinanced an�l operated in a manner similar to privat,e business enterp�ise - where t�e intent of the City Council is that the cnsts (e.xpenses, including depreciation) of providing geods and servsces to th� general pezblic on a continuing basis be financed or recover�d primarily through user changes. The accountin� policies of the City �f Carlsba.d with �egard ta this tund conform to generally accepted accoun�in.g pri.nciples as apgli.cable to governments. The folZowinc3 is a summary of the more ' significant accounting policies: (a) Measure;nent Focus The Water Utility Fund is acc�unted for on an "income determination" or "cost of services" measurement focus. Accordingly, all assets and liabi�i:ties are included on the balance sheet, and the reported fund equity provides an indication of the e��riomic net v�orth of the fund. Operatina statements for proprietary fund �ypes report increases (revenues) and decreases (expenses) in total. economrc net worth. (b) Basis of Accounting The k,asis o� accounting stipulates �he �iming of. the measurements made undes the measuxement facus used. The revenues, expenses, and transfers - and the related assets and liabilities - are recognized in �he accounts and reported in the financia.l statem�nts under the accruaL basis of accounting. Revenues are recognized �vhen �hey are earned and their expenses are recognized when tYiey are incurred. (c) Cash Equivalents Cash equivalents are stated at cost, which approximates rnar;:et. � # d , � 4 � 0 Notes to Financial Statements, Continued .+ � 3 C� v+TV �i n.Ai�LJin.IKL Water Utility Fund � (d) Inventories �nventories cUnsist of materi3ls and supplies which are valued � at cost , , � � � :� � � t � � ' } .:p ; c x � � � �� .� ! � � � `' ",�i, ;� `s (e) P�coperty, Plant and Ec�uipment Property�, plant and equipment are �tated at cas t or fair market value at the date contr.ibuted. Bepreciation has b��n provided over the estzinatea useful lives of �he assets using the straight-line method. (2) Changes in Acaauntinq �rinciples � �:E�ective July I., 1980, the City changed its method of accounting �or accr-ued payroll, depreciaticn of certain fixe� assets not prev�.ously depreciated and tne writ�-�f�° of ineters and services prev�iously capital.ized. These ch:,�nr�es were made t�o comp�y with Statement 1 of the National Counci.:1 on Governrnental Accounting. These accounting changes are as follows: xncrease (deczease.) in retaineci earnings: Accrual of wages payabl.e Servicps and meters previously capitalized and not depreciated, considered as expenses o£ prioz years Fire hyclrants not previously depreciated A � (4,339) (812,483) (33,701) �(850,523) ; , (3) Cash and Cash Equivalen�s A suinmary of cash and cash equivalents as at �?une 30� 1981 follows: Int�rest Rates Unres�ricted current a�sets; ��ji Cash Certificates of deposit Banker's accpptance and . federal agency notes � .� 12.5$ - 19� 13.5� - 18.75$ COSt � 6a,237 516,000 $69,000 $1,454,237 a m ti , . ...} � CITY OF CARI,SBAD Water Ut�.litv Fu�nd No}es to Financia]. S�atements, Continued A Interest R�tes Restricted curr.ent assets: � Ca sh Certificates of deposit Banker's acceptance and federal agency r�otes . � t :� 4 § � � , P � t A i ; t ;� ,� ; .� � � ,� �' � (4) Lnng-Term Debt 1�. summary of Revenue Bonds Payable: 1958 Waterworks Revenue Bonds, principal due in amounts ran�ing £rom $35,000 to 47,000 on July 1 of each ysax through 1988 (Interest is payable on January l and �ul,y 1 of eac:h year at varying rat�s from 4.25$ to 4.10$) IyGQ Waterwarks Revenue Bon�s princ:ipal due in amaunts ranging from $10,000 to 65,000. on Jul.y 1 of each year �hrough 1990 (tnt�rest is payab:Le on January 1 and July 1 of each year a� varying rates frnm 4.25� to 3.875�) 1970 Hlaterworks Revenue Bonds and principal due `cn amounts ranging from $55,000 to �.00, 000 on July 1 of each year tl�rough 1990 (Interest is payable on January 1 and July 1 of each year a� varying rates from 6$ to 6,9�) Total revanue bands payable Less unamortized dis�ouni: �ess current por�i.on ].2.5� - 19� 13.5� - 18.75$ Cost $ 3, 05i. 1,084,000 2�5,800 $1,322,851 �3alance as of June 30, 1981 $ 332, 000 215,000 810,000 $Z,357,000 9,995 1,347,005 105, 000 �1,242.005 � - .� � { � ID � ,�