HomeMy WebLinkAbout; ; 1981-1982 Costa Real CAFR; 1982-06-30. COMPREHENSIVE ANNUAL FINANCIAL REPORT
* OF THE
COSTA REAL MUNICIPAL WATER DISTRICT
59.50 El Camino Real
Carlsbad, California 92008
PI FQR THE FISCAL YEAR ENDED
* June 30, 1982
Prepared by the Controller
under the direction of
NORMAN M. ALMACK
DISTRICT TREASURER
COSTA REAL MUNICIPAL WATER DISTRICT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 1982
TABLE OF CONTENTS
INTRODUCTORY SECTION
PAGE
Transmittal Letter A-1
District Purposes and Powers A-4
District Governing Body A-5
District Staff A-6
San Diego County Water Authority/Metropolitan Water District A-7
FINANCIAL SECTION
Auditor's Opinion B-1
FINANCIAL STATEMENTS
Balance Sheet B-2
Statement of Revenues and Expenditures B-4
Statement of Equity, Reserves and Fund Balances B-5
Statement of Changes in Financial Position B-6
Notes to Financial Statements B-7
SUPPLEMENTARY DATA
Auditor's Letter B-15
Administrative and General, Transmission and Distribution,
and Water Treatment Expenses B-16
Improvement Districts' Balance Sheet B-17
Improvement Districts' Statement of Revenues and Expenditures B-18
Improvement Districts' Statement of Equity, Reserves and
Fund Balances B-19
Table of Contents (continued)
STATISTICAL SECTION
PAGE
Water Purchases C-1
Cost of Purchased Water C-2
Agricultural Usage C-3
Wholesale Sales C-4
Bonded Debt Service Coverage C-5
Employees and Service Connections C-6
n
INTRODUCTORY SECTION
Hi
COSTK
RE/IL
/1/1UNICIP/1L 14/ATER DISTRICT
5950 Ei Camino Real. Carisbad, California 92008 Teiepnorie '7M ; ^33-2722
Board of Directors
Costa Real Municipal Water District
5950 El Camino Real
Carlsbad, California 92008
We're pleased to present the Costa Real Municipal Water District Compre-
hensive Annual Financial Report for the Fiscal Year ended June 30, 1982.
This report was prepared by the District's Controller. Responsibility for
both the accuracy of the data presented and the completeness and fairness
of the presentation, including all disclosures, rests with the District.
We believe the data presented is accurate in all material aspects; that it
is presented in a manner designed to fairly set forth the financial po-
sition and results of operations .of the District as measured by the finan-
cial activity of its various funds.
ACCOUNTING SYSTEM
Following the principles of governmental accounting, the District maintains
two accounting operations - an Enterprise Fund which is maintained on an
accrual basis and Improvement District Funds, which are maintained on a
modified accrual basis. By far the most significant of the two is the
Enterprise Fund. Within this fund the activities of the utility operations
are recorded similar to private business enterprise.
The nature of most operations financed and accounted for through an enter-
prise fund is such that the demand for the goods and services provided
largely determines the appropriate level of revenues and expenses. Increased
demand for the goods or services causes a higher level of expenses to be
incurred, but also results in a higher level of revenues. Thus, as in com-
mercial accounting, flexible budgets typically are better for enterprise
fund planning, control, and evaluation purposes than are fixed budgets.
The Enterprise Fund of the District, like most proprietary funds, does not
adopt a fixed dollar budget. The District does prepare and present for ap-
proval of the Board a flexible budget for control of certain expenses, such
as payroll, capital improvements from operations, and for planning of cash
flows for the coming year.
J i ' - ^ , *
b'ill Iff IT >''" --'
THE REPORTING ENTITY AND ITS SERVICES
The funds related to the District included in our comprehensive financial
report are controlled solely by the District. The District was created by
a vote of the people and the first meeting and election of officers took
place on March 22, 1954.
The District was originally formed to provide for the procurement, storage,
and distribution of Colorado River water and for the use and conservation
of ground water in approximately 20,000 acres of the Carlsbad area, which
includes most of the City of Carlsbad and some unincorporated areas of San
Diego County.
The Costa Real Municipal Water District Board of Directors has the sole power
to set rates and charges for water and services. The Board may also levy
voter approved tax on all taxable property within the District to retire debt
incurred in construction of the major transmission, storage, and distribution
facilities.
GENERAL OPERATING FUNCTIONS
Fiscal Year 1981-82 finished with the District continuing its enhancement of
an already strong fiscal position. Total assets of the District exceed $13
million and total revenue for the General Fund exceeded Expenses by $655,121.
Fiscal Year 1981-82 was an excellent year for the District in terms of
earnings on investments, as the combined interest earnings exceeded $400,000.
This was a result of active monitoring of available funds combined with very
high yields in terms of interest offered by financial institutions.
The assessed valuation of property within the District exceeds $1.7 billion,
and makes the District the 6th largest in terms of assessed valuation of the
24 member agencies of the San Diego County Water Authority.
CAPITAL PROJECTS
The District completed the extension of the Tri-Agencies Pipeline into Squires
Dam and completed the interconnection at Encina during the Fiscal Year. De-
velopment within the District continues, and planning for the water facilities
to provide the necessary service is a high priority of the District.
YEAR'S OPERATIONS AND FUTURE PROSPECTS
The number of service connections served by the District continued to grow,
and plans approved and under consideration by local planning authorities in-
dicate considerable future needs.
In order to address the demands placed upon the District for facilities, the
A_0
District is contemplating a thorough review of all charges by the District
during the 1982-83 fiscal year.
INDEPENDENT AUDIT
State code requires an annual audit be made of the books and records of the
Costa Real Municipal Water District. This was accomplished this year by the
firm of Coopers & Lybrand and their unqualified opinion is included in this
report as the Financial Section.
This is the first year in which Coopers & Lybrand has been retained by tne
District for purposes of audit, and we wish to express our gratitude to the
firm for its professionalism, courtesy and promptness.
ACKNOWLEDGMENTS
We would like to express our appreciation to all members of the District staff
that participated in the preparation of this report. We would also like to
thank the members of the Board of Directors for their continued support in
the planning and implementation of the financial affairs of the Costa Real
Municipal Water District.
Sincerely,
William C. Meadows
General Manager
Thomas L. Brammell, C.P.A.
Controller
PI
TLB:fw A-3
Ill
DISTRICT PURPOSES AND POWERS
The Costa Real Municipal Water District was originally known as
the Carlsbad Municipal Water District and was formed March 22,
1954, to apply to the San Diego County Water Authority and the
California Metropolitan Water District for eligibility to receive
Colorado River Water.
The District continues today serving the needs of the citizens of
Carlsbad and may levy taxes, issue bonds and set fees and rates
necessary to continue to provide the services set forth in the
original design of the District.
The Board of Directors of the District sets rates and charges
for water. These rates are determined by the needs of the District
for operation and maintenance, principal and interest on obli-
gations, and system replacement and expansion.
A-4
DISTRICT GOVERNING BODY
The Costa Real Municipal Water District has a five member Board
of Directors, elected by Division by popu^lar vote.
The members of the Board are:
Donald A. MacLeod (term 1/1/81-1/1/85)
Mr. MacLeod is President of the Board.
Margaret J. Bonas (term 1/1/79-1/1/83, reelected to a term
of 1/1/83-1/1/87)
Mrs. Bonas is Vice President of the Board.
Allan 0. Kelly (term 1/1/79-1/1/83, reelected to a term
of 1/1/83-1/1/87)
Mr. Kelly is Assistant Secretary and Assistant Treasurer
of the Board.
Fred W. Maerkle (term 1/1/81-1/1/85)
Mr. Maerkle is Secretary of the Board
Norman M. Almack (term to 1/1/83, elected to a term of
1/1/83-1/1/87)
Mr. Almack is Treasurer of the Board.
A-5
DISTRICT STAFF
The General Manager of the District is appointed by the Board of
Directors. The General Manager appoints all other staff.
Engineering and Legal Counsel are provided to the District by
consultants, and utilized on an as-needed basis.
William C. Meadows, General Manager
Mr. Meadows joined the staff in 1980, after gaining
experience from private practice as a consultant to
special districts and employment in several special
districts.
Thomas L. Brammell, CPA-Controller
Mr. Brammell joined the staff in 1982. Mr. Brammell
is a certified public accountant and has extensive
background in government.
Kurt B. Musser, Superintendent-
Mr. Musser joined the staff in 1973, and has risen
through the various levels of field operations to
his present position.
Jack Y. Kubota, Engineer
Mr. Kubota provides the engineering services to the
District on a contractual basis. Mr. Kubota is the
local partner in the firm of Woodside/Kubota and
Associates.
Paul S. Swirsky, Legal Counsel
Mr. Swirsky provides the legal counsel to the District
on a contractual basis. Mr. Swirsky is in private
practice and is the founding partner of the firm of
Swirsky and Sauer.
A-6
SAN DIEGO COUNTY WATER AUTHORITY
METROPOLITAN WATER DISTRICT
The Costa Real Municipal Water District is a member of the San
Diego County Water Authority which is a member of the Metropolitan
Water District of Southern California.
The San Diego County Water Authority encompasses 896,726 acres and
provides the sole source of water to Costa Real. Costa Real is
one of 24 member agencies to the County Water Authority.
The Metropolitan Water District of Southern California is the
source of water to the County Water Authority. The Metropolitan
supplies a blend of Colorado River water and State Project water.
The member agencies of the County Water Authority use approxi-
mately 28 percent of Metropolitan supplies..
FINANCIAL SECTION
le
COSTA REAL MUNICIPAL WATER DISTRICT
REPORT ON EXAMINATION OF FINANCIAL STATEMENTS
For The Year Ended June 30, 1982
Coopers &Lybrand
certified public accountants
To the Board of Directors
Costa Real Municipal Water District
We have examined the balance sheet of Costa Real Municipal Water
District as of June 30, 1982, and the related statements of
revenues and expenditures, equity, reserves and fund balances
and changes in financial position for the year then ended. Our
examination was made in accordance with generally accepted
auditing standards and, accordingly, included such tests of the
accounting records and such other auditing procedures as we
considered necessary in the circumstances.
In our opinion, the financial statements referred to above
present fairly the financial position of Costa Real Municipal
Water District as of June 30, 1982, and the results of its
operations and the changes in its financial position for the
year then ended, in conformity with generally accepted account-
ing principles applied on a basis consistent with that of the
preceding year.
San Diego, California
August 26, 1982
B-1
I ff 1 • 1 B 1 • I 1 I » 1 r • fill f I i 1 • • • I • • • • • • « • » •
COSTA REAL MUNICIPAL WATER DISTRICT
BALANCE SHEET
June 30, 1982
ASSETS
General
Fund
Improvement
District
Funds
Total
(Memorandum Only)
Current assets:
Cash, principally certificates of deposit
Accounts receivable, less allowance
of $13,140
Inventories (Note 1)
Other current assets
Total current assets
Current restricted assets:
Cash, principally certificates of deposit
Restricted assets:
Cash, principally certificates of deposit
Long-term contract receivable (Note 3)
Total restricted assets
Utility plant (Notes 1 and 2)
Property and equipment, at cost, net
of accumulated depreciation
Construction in progress
Total utility plant
Other assets
$1,417,980
286,220
128,783
43,519
1 ,876,502
Total
4,214,329
224,510
4,438,839
7,740
$6,323,081
$1,310,438
294 ,140
72,381
366,521
5,469,312
5,469,312
702
$7,146,973
$1,417,980
286,220
128,783
43,519
1 ,876,502
1,310,438
294,140
72,381
366,521
9,683,641
224,510
9,908,151
8,442
$13,470,054
The accompanying notes are an integral part
of the financial statements.
B-2
till • i I i • 1 C I • I II II i I i i i I 11 > > ^ ^ II II I i II
COSTA REAL MUNICIPAL WATER DISTRICT
BALANCE SHEET
June 30, 1982
LIABILITIES AND EQUITY, RESERVES AND FUND BALANCES
General
Fund
Improvement
District
Funds
Total
(Memorandum Only)
Current liabilities (payable from
current assets):
Accounts payable
Current portion of notes payable
Accrued expenses, principally interest
Construction and customer meter deposits
Total current liabilities (payable
from current assets)
Current liabilities (payable from
restricted assets):
Current portion of bonds payable
Accrued interest and unredeemed bond coupons
Total current liabilities (payable
from restricted assets)
Long-term debt:
Bonds payable (Note 4)
Notes payable (Note 5)
Total long-term debt
Equity, reserves and fund balances:
Equity in utility plant
Reserve for sinking fund
Other reserves
Unappropriated fund balance
Total equity, reserves and
fund balances
Total
$ 392,793
253,865
47,604
140,407
834 ,669
382,897
382,897
4,073,163
1,032,352
5,105,515
$6,323,081
$ 140,000
27,458
167,458
1,453,000
1,453,000
3,849,777
294,140
743,804
638,794
5.526,515
$7,146,973
392,793
253,865
47 ,604
140,407
834,669
140 ,000
27,458
167 ,458
1,453,000
382,897
1,835,897
7,922,940
294,140
743,804
1,671,146
10,632,030
$13.470,054
The accompanying notes are an integral part
of the financial statements.
B-3
COSTA REAL MUNICIPAL WATER DISTRICT
STATEMENT OF REVENUES AND EXPENDITURES
For The Year Ended June 30, 1982
Operating revenues:
Water sales
Miscellaneous revenue
Total operating revenues
Ope?ating expenditures:
Cost of water sold
Pumping
Water treatment
Transmission and distribution
Customer accounting
Administrative and general
Reimbursement agreement
General
Fund
$2,435,201
119,800
2,555,001
1,564,232
1,537 n,4l8
241,583
73,840
402,025
90,580
Total operating expenditures 2,385,215
Net operating revenues
before deducting
depreciation 169,786
Provision for depreciation 83,236
Net operating revenues
after deducting
depreciation 86,550
Other financing sources (uses):
Property taxes 219,704
Interest earned 382,709
Lease of property 11,600
Interest on bonds and
notes payable (45,442)
Total other financing
sources (uses) 568,571
Excess of revenues and other sources
over expenditures and other uses $655,121
Improvement Total
Districts (Memorandum Only)
$2,435,201
119,800
$151,127
(151,127)
282,844
26,740
(75,565)
234,019
$82,892
2,555,001
1,564,232
1,537
11,418
241,583
73,840
402,025
90,580
2,385,215
169,786
234,363
(64,577)
5,02,548
409,449
11,600
(121,007)
802,590
$738,013
The accompanying notes are an integral part
of the financial statements.
B-4
i I I I 1 I I 1 I I f I 1 I t I I I f I I I I I 1 1 I i I 1 I I I I I i I 1
COSTA REAL MUNICIPAL WATER DISTRICT
STATEMENT OF EQUITY, RESERVES AND FUND BALANCES
June 30, 1982
Revenues:
Contributed utility plant
Excess of revenues and other
sources over expenditures
and other uses
Transfers:
Depreciation, an expense not
requiring a current outlay
of funds
Bonds redeemed
Current portion bonds payable
Sinking Fund*
Net transfers to reserves
Excess of revenues over transfers
Fund balance, beginning of year
as previously reported
Reclassification of beginning
balances to conform to current
year financial statement
presentation:
Bonds authorized - unissued
which were previously
shown as an offset to
equity
Notes payable
Prior period adjustments:
Contributed utility plant not
recorded In prior year
Expenses not recorded In
prior year
Adjusted fund balances,
beginning of year
Fund balances, end of year
General
Fund
$1,050,796
Equity in Utility Plant
Improvement Total Districts
Funds
(83,236) $ (151,127)
95,000
(875)
967.560 (57.002)
1,768,285 3,987,900
346,335
1,040,000
(49.017)
(646,209)
565,088
3,105.603 3,906.779
$4.073.163 $3.849.777
(Memorandum Reserve for
Only) Sinking Fund
$1,050,796
(234,363)
95,000
(875)
910.558
5,756,185
(299,874)
1,040,000
565,088
(49.017)
7.012.382
$7.922.940
$ 26,740
26.740
267,400
267.400
$294,140
Other
Reserves
$140,000
36,842
176.842
General
Fund
Unappropriated Fund Balance
ImprovemerTE Total
Districts
Funds
566,962
83,236 151,127
(105,000)
(140,000)
(26,740)
2,222
(1,194) (398,168)
(1,040,000)
11,532
(27,083)
699,233
293,995
$743,804 $1,032,352
674.293
$638.794
The accompanying notes are an Integral part of the financial statements.
B-5
(Memorandum
Only)
$ 655,121 $ 82,892 $ 738,013
234,363
(105,000)
(140,000)
(26,740)
2,222
738.357 (35.499) 702,858
568,156 1,747,714 (24,940) 1,722,774
301,065
(1,040,000)
11,532
(27,083)
968,288
$1.671,146
COSTA REAL MUNICIPAL WATER DISTRICT
STATEMENT OF CHANGES IN FINANCIAL POSITION
For The Year Ended June 30, 1982
(General
Fund
Improvement
Districts
Funds
Sources of working capital:
From operations:
Excess of revenues and other
sources over expenditures
and other uses
Charges to operations not
$ 655,121 $ 82,892
Increases (decreases) in conponents
of working capital:
Cash
Investments
Accounts receivable
Inventory
Other current assets
Restricted cash
Accounts payable
Current portion of notes payable
Accrued expenses
Construction and customer meter
deposits
Cerent portion of bonds payable
$ (145,164)
597,060
(54,113)
(12,400)
11,238
(170,265)
(3,354)
7,467
$102,562
611
(15,000)
$ 256,761 $ 88,173
26,292
Total
(Memorandum Only)
$ 738,013
Depreciation
Working capital provided
by operations
83,236
738,357
151,127
234,019
234,363
972,376
Cumulative effect of prior period
adjustment
Contributed utility plant
Net transfers to reserves
Collection of long-term contract
receivable
1,050,796
565,088
38,189
8,363
565,088
1,050,796
38,189
8,363
Total sources of working
capital 1,789,153 845,659 2,634,812
Uses of working capital:
Additions to utility plant
(Current maturity of long-term debt
Cumulative effect of prior
period adjustments
Addition to bond sinking fund
Increase in other assets
1,204,498
255,586
64,568
7,740
575,746
155,000
26,740
1,780,244
410,586
64,568
26,740
7,740
Total uses of working capital 1,532,392 757,486 2,289,878
Increase in working
capital $ 256,761 $ 88,173 $ 344,934
$ (145,164)
597,060
(54,113)
(12,400)
11,238
102,562
(170,265)
(3,354)
8,078
26,292
(15,000)
$ 344,934
The accompanying notes are an integral part
of the financial statements.
B-6
COSTA REAL MUNICIPAL WATER DISTRICT
NOTES TO FINANCIAL STATEMENTS
Hi
1. Summary of Significant Accounting Policies:
The accounting policies of the Costa Real Municipal
Water District (District) conform to generally accepted
accounting principles as applicable to governmental en-
tities. The accounts of the District are organized on the
basis of funds, each of which is considered a separate set
of self-balancing accounts that comprise its assets,
liabilities, equity, reserves and fund balances, revenues,
and expenditures, as appropriate. Resources are allocated
to and accounted for in individual funds based upon the
purpose for which they are to be spent and the means by
which spending activities are controlled. The District
maintains two fund types as follows:
General Fund
The General Fund is used to account for the major portion
of District operations which are financed and operated in a
manner similar to that of a private business enterprise.
The intent of the District is to establish water user rates
sufficient to provide for payment of general District
operations and maintenance expenses as well as required
annual debt service. Utilizing the full accrual basis of
accounting, revenues are recognized when they are earned
and expenses are recognized when they are incurred.
Unbilled water charges receivable are recorded at the end
of each reporting period.
Improvement District Funds
Improvement Districts are used to account for the financing
of public improvements as set forth in original bond
covenants as established by voter approval. The District
accounts for the activity related to each improvement
district's debt and construction reserves within separate
improvement district funds.
All improvement district funds utilize the modified accrual
basis of accounting. Revenues are recognized when they
become measurable and available to finance expenditures of
the current period. Expenditures are recognized when the
related liability is incurred.
Continued
B-7
COSTA REAL MUNICIPAL WATER DISTRICT
NOTES TO FINANCIAL STATEMENTS, Continued
1. Summary of Significant Accounting Policies, Continued:
Inventories
Inventories of materials are stated at weighted moving
average cost. Inventory of water is stated on a lower of
cost (last in, first out) or market basis.
Utility Plant in Service
Utility plant in service is stated at cost or, if donated
by developers, at engineeMng estimates of fair market
value. Expenditures for improvements and betterments
(including labor and overhead) are capitalized. Main-
tenance, repairs and minor improvements are expensed as
incurred. Depreciation is computed using the straight-line
method over the service lives of the respective assets.
Continued
B-8
COSTA REAL MUNICIPAL WATER DISTRICT
NOTES TO FINANCIAL STATEMENTS, Continued
2. Utility Plant:
A summary of utility plant and the related accumulated
depreciation as of June 30, 1982 follows:
(}eneral
Fund
Utility plant:
Cost of participation -
San Diego Water Authority $
Land and easements
Reservoirs and dams
Pipelines and pumping
stations
Chlorination stations
Meter and accessories
Buildings
Machinery and equipment
Office fixtures and
equipment
(Construction in progress
Less accumulated
depreciation
33,174
16,462
142,451
3,497,809
9,555
490,230
170,657
144,879
97,711
4,602,928
224,510
388,599
Improvement
Districts
Funds
$ 252,070
1,510,196
5,100,379
56,730
183,310
3,675
7,106,360
Total
(Memorandum
Only)
^ 33,174
268,532
1,652,647
8,598,188
66,285
673,540
170,657
148,554
97.711
11,709,288
224,510
4,827,438 7,106,360 11,933,798
Net utility plant $4,438,839
1,637,048
$5,469,312
2,025,647
$ 9,908,151
Continued
B-9
COSTA REAL MUNICIPAL WATER DISTRICT
NOTES TO FINANCIAL STATEMENTS, Continued
2. Utility Plant, Continued:
Depreciation is computed on the straight-line method over
the estimated lives of the respective assets as follows:
Estimated
Assets Useful Lives
Reservoirs and dams 75 years
Pipelines and pump stations 50 years
Chlorination stations 25 to 40 years
Meters and accessories 25 to 40 years
Buildings 40 years
Machinery and equipment 5 to 20 years
Office fixtures and equipment 10 years
The District has consistently taken no depreciation during
the year of acquisition of an asset and a full year's
depreciation in the year of disposition. The cost of
participation in the San Diego County Water Authority and
related land and easements are not being depreciated.
3. Long-term Contract Receivable:
On November 6, 1963, the District sold a pipeline to San
Marcos County Water District for $140,000. Payments are
due annually within 90 days of fiscal year-end, at the rate
of $1.00 per acre foot of water purchased by San Marcos
County Water District within the preceding fiscal year.
The contract contains no interest provision.
Continued
B-10
4.
i i 11 t 1 II 1 1 1 1 t 1 1 lill 1 i 1 lill lill 1 1 1
COSTA REAL MUNICIPAL WATER DISTRICT
NOTES TO FINANCIAL STATEMENTS, Continued
Long-term Debt - Bonds Payable:
Bonds payable at June 30, 1982 comprise the following individual Issues:
•
Improvement
District
1
Improvement
District 2
Series 1
Improvement
District 2
Series 2
Improvement
District 2
Series 3
Improvement
District
3
Improvement
District
4 Total
Date of Issue
Coupon Interest rate
Interest payment dates
Principal payment dates
1957 1958-Serles 1
3.85 to 4.0JI 5.0Jt
3/1 & 9/1 3/1 & 9/1
3/1 3/1
1961-Serles 2
4.5>
5/1 & 11/1
5/1
1968-Serles
5.0*
1/1 & 7/1
7/1
3 1961
4.75 & 5.0*
3/1 & 9/1
3/1
1961
3.5 & 4.0»
6/1 & 12/1
12/1
Authorized
Authorized-unissued
$1,250,000
(100.000)
$350,000 $425,000 $125,000 $1,000,000
(200,000)
$690,000 $3,840,000
(300,000)
Original issue
Redeemed as of 6/30/82
1,156,000
(830,000)
350,000
(230.000)
425,000
(225.000)
125,000
(105.000) 8oo;ooo
(197.000)
690,000
(360,000)
3,540,000
(1,947,000)
Outstanding as of 6/30/82 320,000 120,000 200,000 20,000 603,000 330,000 1,593,000
Less current portion (65,000) (15.000) (20,000) (10,000) (5,000) (25,000) (140,000)
Portion due after one year $255,000 $105^000 $180,000 $10j^000 $598^000 $305,000 $1,453,000
Minimum annual principal payments for retirement of outstanding bonds as of June 30, 1982 are as follows:
Fiscal years ending June 30, *
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
$ 65,000
70,000
70,000
70,000
45,000
$ 15,000
20,000
20,000
20,000
20,000
25,000
$ 20,000
20,000
20,000
20,000
20,000
25,000
25,000
25,000
25,000
$10,000
10,000
$ 5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
563,000
$ 25,000
30,000
30,000
30,000
30,000
35,000
35,000
35,000
40,000
40,000
$ 140,000
155,000
145,000
145 ,000
120,000
90,000
65,000
65,000
628,000
40,000
Total $320,000 $120,^000 $200^000 $20^00 $603^000 $330,000 $1,593,000
I I 1
Continued
B-11
COSTA REAL MUNICIPAL WATER DISTRICT
NOTES TO FINANCIAL STATEMENTS, Continued
4. Long-term Debt - Bonds Payable, Continued:
A sinking fund was established in conjunction with the
issuance of bonds for Improvement District No. 3. Board
Resolution No. 128 prescribes the establishment of the
sinking fund for the payment of debt as it becomes due.
5. Long-term Debt - Notes:
June 30, 1982
Note payable to bank, payable
$60,000 semi-annually plus
5- 7/8jt interest. $1.80,000
Note payable to bank, payable
$50,000 semi-annually plus
6- 1/4jt interest. 250,000
Note payable to San Marcos County
Water District, payable
$20,705 annually plus 7-1/456
interest. 165,636
Note payable collateralized by
computer, payable $1,097 monthly
including principal and discount
interest 41,126
636,762
Less principal due in one year 253,865
Total $382,897
Annual principal payments on long-term notes during the
five years after June 30, 1982 are as follows:
1983 $253,865
1984 103,865
1985 83,865
1986 20,705
1987 20,705
Continued
B-12
COSTA REAL MUNICIPAL WATER DISTRICT
NOTES TO FINANCIAL STATEMENTS, Continued
6. Employee Retirement Plan:
The District has contracted with the Public Employees'
Retirement System to provide a retirement plan for all
full-time employees. Contributions to the Plan are based
on a percentage of the employee's salary which is deter-
mined by the Public Employees' Retirement System. The
District's unfunded prior service liability is approxi-
mately $13,000 at June 30, 1982. The expense for providing
retirement benefits under this plan for the year ended June
30, 1982 was $28,751.
7. Vacation Pay and Sick Pay:
The cost of vacation and sick pay are recorded when dis-
bursed. At June 30, 1982, employees of the District had
accumulated earned vacation aggregating approximately
$9,575 for which no accrual has been made.
8. Reserves
Sinking Fund - This reserve was established in conjunction
with the issuance of bonds for Improvement District No. 3.
Board Resolution No. 128 prescribes the establishment of
the sinking fund for the payment of debt as it becomes due.
The sinking fund was funded in fiscal 1982 by proceeds from
property tax and transfers of interest from the General
Fund.
Fully Reserved Assets - The District carries the long-term
accounts receivable as an asset in the improvement district
funds and establishes corresponding reserves.
Debt Service - These reserves were established in con-
junction with the various bond issues. The reserves
are restricted to the payment of current bond service
requirements.
Construction - The original bond issues of the District
were for the purpose of construction of facilities. To
date, through various reimbursements to these construction
funds there remains $530,722 reserved for construction
purposes.
Continued
B-13
COSTA REAL MUNICIPAL WATER DISTRICT
NOTES TO FINANCIAL STATEMENTS, Continued
9. Prior Period Adjustments:
Utility plant in the amount of $565,088 was contributed in
fiscal 1981 and not recorded. Proper treatment is to
increase the utility plant account as well as the related
equity accounts. Consequently, there is no effect on
fiscal 1981 net income for the contribution.
Certain depreciation and bond interest expense were
not recorded during fiscal 1981. Had these amounts been
properly recorded, general fund excess of revenues and
other sources over expenditures and other uses would have
been reduced by $76,100 for the year ended June 30, I98I.
10. Total Columns On Statements:
Total columns on the statements are captioned "Memorandum
Only" to indicate that they are presented only to facili-
tate financial analysis. Data in these columns do not
present financial position, results of operations, or
changes in financial position in conformity with generally
accepted accounting principles, nor is such data comparable
to a consolidation. Interfund eliminations have not been
made in the aggregation of this data.
B-14
To the Board of Directors
Costa Real Municipal Water District
Our examination was made for the purpose of forming an opinion
on the basic financial statements taken as a whole. The infor-
mation on schedules one through four is presented for purposes
of additional analysis and is not a required part of the basic
financial statements. Such information has not been subjected
to the auditing procedures applied in the examination of the
basic financial statements, and, accordingly, we express no
opinion on it.
San Diego, California
August 26, 1982
B-15
Schedule 1
COSTA REAL MUNICIPAL WATER DISTRICT
ADMINISTRATIVE AND GENERAL, TRANSMISSION AND
DISTRIBUTION, AND WATER TREATMENT EXPENSES
Year Ended June 30, 1982
(Unaudited)
Administrative and general:
Salaries
Engineering and special services
Professional fees
Public information
Directors fees
Utilities, telephone and postage
Auto and maintenance
Insurance
Meetings, conventions and dues
Office supplies and expense
Bad debt expense
Loss on sale of excess inventories
Small tools and equipment maintenance
Water conservation
Programming and computer expense
Total
Transmission and distribution:
Labor and expense
Repairs and maintenance - pipelines
Engineering and special services
Meter repairs
Telemetering
Supplies
Equipment rental
New meter service
Total
$112,703
78,672
44,446
5,308
11,247
27,206
16,778
15,581
13,798
19,116
13,140
9,180
3,507
23,429
7,914
$402,025
$113,930
31,035
59,361
8,497
1,445
1,670
1,206
24,439
$241,583
Water treatment:
Chlorine
Labor and expense
Chlorine equipment and station -
maintenance
Laboratory services - testing
Total
$ 4,160
3,700
364
3,194
$11,418
B-16
C... REA_ .,NICL..._ WAT_.. _ISTR.-.^
IMPROVEMENT DISTRICTS' BALANCE SHEET
For the Year Ended June 30, 1982
(Unaudited)
.ule ^
ASSETS
Current restricted assets:
•Cash, principally certificates of deposit Restricted assets:
Cash, principally certificates of deposit
Long-term accounts receivable
Utility Plant:
Water Transmission and Distribution Facility
Less accumulated depreciation
Net utility plant
Other assets:
Unamortized bond discount
Total other assets
Total assets
LIABILITIES
Current liabilities:
Current portion of bonds payable
Accrued interest and
unredeemed bond coupons
Total current liabilities
Long-term debt, bonds payable
Total long-term debt
Equity, reserves and fund balances:
Equity in utility plant
Reserve for sinking fund
Reserves
Unappropriated fund balance
Total equity, reserves and fund balances
Total
improvement
)lstrlct #1
Improvement
District #2
Improvement
District #3 Improvement
District #4 Total
$249,825 $ 566,004 $ 356,857 $137,752 $1,310,438
72,381 294,140 294,140
72,381
322,206 566,004 650,997 137,752 1 ,'676,959
1,074,916
439.472
4,191,056
691,637
1,108,850
307,796
731,540
198,145
7,106,362
1,637,050
635,444 3,499.419
702
801.054 533.395 5,469.312
702
702 702
$957,650 $4,066,125 $1,452,051 $671,147 $7,146,973
$ 65,000 $ 45,000 $ 5,000 $ 25 ,000 $ 140,000
4,371 6,773 10,830 5,484 27,458
69,371 51,773 15,830 30,484 167,458
255,000 295,000 598,000 305,000 1,453,000
255,000 295,000 598,000 305,000 1,453,000
315,444
137,380
180,455
3,122,887
433,165
163,300
198,050
294,140
148,259
197.772
213,396
25,000
97,267
3,849,777
294,140
743,804
638,794
633,279 3,719,352 838,221 335.663 5,526,515
$957,650 $4,066,125 $1,452,051 $671,147 $7,146,973
B-17
I I I I f I I I i I I I I I I i I I I ] I I ! I I 11 I I E I I I I I
COSTA REAL MUNICIPAL WATER DISTRICT
IMPROVEMENT DISTRICTS' STATEMENT OF REVENUES AND EXPENDITURES
For the Year Ended June 30, I982
(Unaudited)
Schedule 3
Improvement Improvement Improvement Improvement
District #1 District #2 District »3 District #4
Operating expenditures:
Depreciation
Net operating loss
Other financing sources (uses):
Property taxes
Interest income
Interest
Total other financing sources (uses)
Excess of other sources over expenditures
and other uses
$20,413
(20,413)
85,085
(15,034)
70.051
$49,638
$99,175
(99,175)
51,320
(18,585)
32.735
$(66,440)
$ 21,543
(21,543)
101,319
26,740
(29,462)
98,597
$77,054
$ 9,996
(9,996)
45,120
(12,484)
32,636
$22,640
Total
$151,127
(151,127)
282,844
26,740
(75,565)
234,019
$8.2,892
B-18
COSTA REAL MUNICIPAL WATER DISTRICT
IMPROVEMENT DISTRICTS* STATEMENT OF EQUITY, RESERVES AND FUND BALANCES
For the Year Ended June 30, 1962
(Unaudited)
Schedule 4
Equity in Utility Plant
lH?)rovemen€ laftravment laproveoeni laproveaenT
Resarves
Improvenent lnprov«w»rE Ia|NX>veiBenE ImprovenanT' District »1 Dlatrict #2 Diatrict »3 District #4 Total District #1 District »2 District #3 District »4 Total
Add:
Contributed utility plant
Net reserves
Transfers - increases
(decreases):
DeiM^ciaticx) charged
to net revalues
BoiKis retired
Current portiai bonds
payable
Net transfer to reserves
Transfer to sir fund
Fund bala*^
beginmrig year as
previously reported
Reclassification of
beginning balances to
oonfom to current
year financial atatemait
presentation:
Bonds authorized -
unissued vhich were
previously abomi
as w offset to
equity
Prlcr pericxl adjustments:
Contributed utility
plant not recorded in
prior year
Expenara not recorded
in prior year
Adjusted belanoe,
June 30, 1981
Balanoe June 30, 1982
$(20,413) $ (99,175) $(21,543)
60,000 30,000 5,000
275,857
$315,444
(169) (82)
(352,853) (328,433)
565,088
3.192.231
•3.122,887
214.675
$198,050
$ (9,996)
(624)
39.587 (69.344) (16.625) (10,620)
275,857 2,979,996 543,108 188,939
$,077
224,016
$ (151,127)
95,000
(875)
(57,002)
3,987,900
3,906,779
$ 65,000 $ 45,000 $ 5,000
(8,450) 45,292
(646,209) 100,000
565,088
$213,396 $3,849,777
180,830
$237,380
388,165
$433.165
56.550 45,000 50,292
80,830 389,359 97,967
(1,194) 200,000
297,967
$348,259
$25,000 $ 140,000
36,842
25,000 176.842
568,156
298,806
Sinking Fund Unappropriated Fund Balance
Improvement Improvement Improvement Improvement Improvement
District »3 District #1 District #2 District »3 Diatrict #4
$ 26,740
26,740
267 ,400
866,962 26T,400
$25,000 $1.043.80tt $294,140
$ 49,638
20,413
(60,000)
(65,000)
8,450
(46,499)
208,741
16,240
224.981
$178,482
$(66,440) $ 77,054
99,175
(40,000)
(45,000)
(52.265)
383,369
214,036
$161,771
21,543
(5,000)
(5,000)
(6,228)
(26,740)
55,629
(169,333) (179,986)
324,624
144.638
$200,267
$22,640
9,996
(25,000)
7,636
115,638
(25,000)
90,638
$98,274
Total
$ 82,892
151,127
(105,000)
(140,000)
2,222
(26,740)
(35,499)
(24,940)
699,233
674,293
$638,794
B-19
COSTA REAL MUNICIPAL WATER DISTRICT
STATISTICAL SECTION
The following data is presented in order for the reader to get
a better understanding of the District and its operations. The
information is taken from various sources and while appropriate
efforts were taken to ensure that the material provided is as
accurate as possible, the information was not audited, and is
solely the responsibility of the District staff.
COSTA REAL MUNICIPAL WATER DISTRICT
WATER PURCHASES
(ACRE FEET)
MONTH 77-78 78-79 79-80 80-81 81-82 Average
July 1,156.4 1,250.7 1.386.0 1,350.2 1.441.6 1.317.3
August 1,113.0 1,353.2 1.373.8 1.621.6 1.660.2 1.424.4
September 969.1 1,240.5 1.467.2 1.448.0 1.509.4 1.326.8
October 1.150.5 1,216.9 1.344.6 1.303.4 1.422.4 1.287.6
November 957.3 832.2 972.1 1.105.3 1.187.6 1.010.9
December 668.1 623.0 995.7 937.0 736.0 792.0
January 376.9 488.9 593.8 770.0 518.1 549.5
February 399.4 409.5 472.5 607.1 587.3 495.2
March 428.2 582.7 512.6 594.3 633.7 550.3
April 598.1 784.1 967.3 952.5 793.5 819.1
May 1,047.7 1,127.5 891.7 1,265.2 1,134.4 1,093.3
June 1,146.6 1.253.1 1.245.3 1.353.0 1,091.2 1.217.8
Annual 10,011.3 11.162.3 12.222.6 13.307.6 12.715.4 11.883.8
The Costa Real Municipal Water District purchases all of its water from the San
Diego County Water Authority.
C-1
COSTA REAL MUNICIPAL WATER DISTRICT
COST OF PURCHASED WATER
(IN $1,000)
MONTH 77-78 78-79 79-80 80-81 81-82 Average
July 92.5 114.6 164.9 178.2 198.9 149.8
August 89.1 123.9 163.5 214.1 229.1 163.9
September 77.3 113.6 174.6 191.1 208.3 153.0
October 92.0 111.5 160.0 172.0 196.3 146.4
November 76.6 76.2 115.7 145.9 163.9 115.7
December 53.4 57.1 118.5 123.7 101.6 90.9
January 30.2 47.5 71.5 101.6 71.5 64.5
February 32.0 • 39.8 57.2 80.1 81.0 58.0
March 34.2 56.6 62.0 78.4 87.4 63.8
April 47.8 76.1 117.0 125.7 114.3 96.2
May 83.8 109.5 107.9 167.0 156.4 124.9
June 91.7 121.7 150.7 178.6 150.6 138.7
Annual 800.9 1,048.0 1,463.8 1.756.6 1,759.4 1.365.8
The total cost of purchased water to the District was up only slightly in 1981-82,
This is a reflection of the reduction in water purchased in 1981-82 of 592.2 acre
feet, a 5% decrease from 1980-81. This decrease did not offset the increase in
price of water to the District.
C-2
COSTA REAL MUNICIPAL WATER DISTRICT
AGRICULTURAL USAGE
(ACRE FEET)
m MONTH 77-78 78-79 79-80 80-81 81-82 Average
-July 528.1 497.2 508.5 434.8 449.7 483.7
IH August 374.8 578.0 608.1 658.2 701.9 584.2
September 561.6 488.4 728.8 630.5 689.8 619.9
m October 426.6 523.0 539.7 539.6 609.9 527.8
-November 397.5 227.9 387.0 484.9 461.8 391.9
-December 155.6 167.5 348.5 278.1 155.3 221.0
January 20.8 78.5 82.3 253.0 82.2 103.4
z February 29.6 59.6 52.0 125.7 131.9 79.8
March 64.4 91.9 100.4 113.9 118.2 97.8
ma April 138.4 267.4 54.0 358.4 113.2 186.3
May 308.6 403.1 60.7 345.2 322.8 288.1
m June 304.5 349.8 350.7 392.5 308.3 341.2
Annual 3.310.5 3.732.3 3.820.7 4,614.8 4.145.0 3.925.1
COSTA REAL MUNICIPAL WATER DISTRICT
WHOLESALE SALES
(ACRE FEET)
MONTH 79-80 80-81 81-82 Average
m July 577.8 630.6 634.2 614.2
August 591.1 619.8 621.5 610.8
IR September 587.8 544.5 547.1 559.8
October 474.3 460.7 482.2 472.4
November 379.5 445.3 442.5 422.5
December 400.7 359.8 330.9 363.8
-January 299.7 322.5 298.0 306.8
-February 250.3 311.0 290.9 284.1
March 295.9 317.0 331.3 314.8
April 389.2 454.3 399.6 414.4
May 433.5 541.9 467.4 481.0
-June 558.6 586.8 498.7 548.1
Annual 5.238.4 5.594.2 5.344.3 5,392.3
C-4
COSTA REAL MUNICIPAL WATER DISTRICT
BONDED DEBT SERVICE COVERAGE
LAST FIVE YEARS
(IN $1,000)
Operating Revenues
Operating Expenses
Net Operating Revenue
before Depreciation
Depreciation
Net Operating Revenue
(Loss) after Depre-
ciation
Other Revenues
Other Expenses
Net Revenues
Net Revenue Available
for Debt Service Ex-
clusive of Depreci-
ation and Interest on
Bond Debt
Annual Bond Debt Service
Coverage Factor
77-78
1.298
1.107
191
123
68
605
96
577
796
201
4.0
78-79
1.556
1.442
114
122
(8)
538
118
412
625
211
3.0
79-80
1.985
1.692
293
153
140
658
158
640
878
215
4.1
80-81
2.473
2.101
372
179
193
747
145
795
1.056
212
5.0
81-82
2.555
2.385
170
235
(65)
924
121
738
1.048
206
5.1
C-5
COSTA REAL MUNICIPAL WATER DISTRICT
EMPLOYEES AND
SERVICE CONNECTIONS
Employees
Management
Clerical
Field
Total
77-78
2.0
3.0
5.0
10.0
78-79
2.0
3.0
5.0
10.0
79-80
2.0
3.0
5.0
10.0
80-81
2.0
3.0
6.0
11.0
81-82
2.0
3.5
6.0
11.5
Metered Services
(Retail) 2500
est.
2900
est.
3050
est.
3400
est.
3438
Metered Services
per Employee
Management
Clerical
Field
1250
833
500
1450
967
580
1525
1017
610
1700
1133
567
1719
982
573
C-6