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HomeMy WebLinkAbout; ; Financial Statements; 1981-06-30COSTA REAL MUNICIPAL WATER DISTRICT FINANCIAL STATEMENTS JUNE 30, 1981 ******** HicKEY & BLUSH AN ACCOUNTANCY CORPORATION MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS HAROLD D. HICKEY, C.P.A. STANLEY A. BLUSH, JR., C.RA. HicKEY & BLUSH AN ACCOUNTANCY CORPORATION CERTIFIED PUBLIC ACCOUNTANTS 27-45 JEFFERSON STREET P. O. BOX 1132 CARLSBAD, CALIFORNIA 9200S TELEPHONE (7I4-) 434-I737 BOARD OF DIRECTORS COSTA REAL MUNICIPAL WATER DISTRICT Carlsbad, California We have examined the balance sheets- of COSTA REAL MUNICIPAL WATER DISTRICT as of June 30, 1981 and 1980 and the related statements of revenue and expense, of reserves, equity and fund balances, and of changes in financial position for the years 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 above mentioned financial statements present fairly the financial position of COSTA REAL MUNICIPAL WATER DISTRICT at June 30, 1981 and 1980 and the results of its operations and changes in financial position for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis. The supplementary data included in Schedules 1 and 2 have been subjected to the same auditing procedures, and, in our opinion, are stated fairly in all material respects when considered in conjunction with the basic financial statements taken as a whole. January 12, 1982 COSTA REAL MUNICIPAL WATER DISTRICT TABLE OF CONTENTS JUNE 30, 1981 and 1980 Accountant's Report Balance Sheets Statements of Revenue and Expense . Statements of Reserves, Equity and Fund Balances Statements of Changes in Financial Position EXHIBIT A B C D Notes to Financial Statements Administrative and General, Transmission and Distribution, and Water Treatment Expenses. Additions to Plant, Property and Equipment SCHEDULE 1 2 HicKEY & BLUSH AN ACCOUNTANCY CORPORATION • E EXHIBIT A ia r is ff 4J f ~ y COSTA REAL MUNICIPAL WATER DISTRICT BALANCE SHEETS JUNE 30, 1981 and 1980 —ASSETS CURRENT ASSETS: Cash, including time certificates of deposit and savings accounts Accounts receivable Agricultural rebates receivable Interest and other receivables Discount interest Water in storage (Note 1) Materials inventory (Note 1) Total Current Assets RESTRICTED ASSETS: Cash, including time certificates of deposit and savings accounts PLANT, PROPERTY AND EQUIPMENT, at cost (Note 2) OTHER ASSETS: Long-term contract receivable (Note 3) Unamortized bond discount Discount interest Total Other Assets TOTALS 1981 994,186 340,333 18,416 10,508 3,357 52,728 88,455 1,507,983 1,447,174 8,362,270 80,830 702 4,383 85,915 1980 605,411 208,526 15,824 37,037 2,409 44,465 91,773 1,005,445 1,292,256 8,321,190 87,678 1,053 9.636 98,367 $11.403.342 S1Q.717.258 LIABILITIES, RESERVES, EQUITY AND FUND BALANCES 1981 1980 CURRENT LIABILITIES (payable from current assets: Accounts payable Notes payable - due within one year (Note 5) Accrued expenses Construction and customer meter deposits Total Current Liabilities (payable from current assets) CURRENT LIABILITIES (payable from restricted assets): Matured bonds payable Accrued interest on bonds and unredeemed bond coupons Bonds payable - due within one year (Note 4) Total Current Liabilities (payable from restricted assets) LONG-TERM DEBT Bonds payable (Note 4) Notes payable (Note 5) Total Long-Term Debt RESERVES: Construction Long-term receivable and unamortized bond discount Total Reserves EQUITY IN PLANT, PROPERTY AND EQUIPMENT: Amount by which investment in plant, property and equipment exceeds outstanding debt incurred for construction & equipment purposes FUND BALANCES: Appropriated fund balance-sinking fund Unappropriated fund balance Total Fund Balances COMMITMENTS (Note 7) TOTALS 222,528 $ 177,653 250,511 269,493 59,537 47,188 166,699 98,003 699,275 592,337 10,000 28,069 28,123 125,000 125,000 153,069 163,123 1,598,000 1,718,000 638,483 873,369 2,236,483 2,591,369 486,624 486,624 81,532 88,731 568,156 575,355 5,756,185 5,325,328 267,400 243,400 1,722,774 1,226,346 1,990,174 1,469,746 aam $11,403,342 $10,717,258 See accompanying notes to financial statements. MICKEY & BLUSH AN ACCOUNTANCY CORPORATION 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 infonnation is taken fron 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 80-81 81-82 82-83 83-84 84-85 AVERAGE July 1,350.2 1,441.6 1,545.3 1,458.0 1,442.1 1,447.4 August 1,621.6 1,660.2 1,784.6 1,383.4 1,349.5 1,559.9 September 1,448.0 1,509.4 1,394.8 1,423.4 1,298.0 1,414.6 October 1,303.4 1,422.4 1,327.2 1,010.7 1,210.6 1,254.9 November 1,105.3 1,187.6 936.4 683.9 897.4 962.1 December 937.0 736.0 646.2 544.8 479.1 668.6 January 770.0 518.1 667.a 622.3 566.8 628.8 February 607.1 587.3 415.5 791.2 598.3 599.9 March 594.3 633.7 340.6 1,130.4 906.1 721.0 April 952.5 793.5 708.8 1,147.1 1,160.1 952.4 May 1,265.2 1,134.4 1,005.7 1,456.4 1,422.8 1,256.9 June 1,353.0 1,091.2 1,106.6 1,243.1 1,497.9 1,258.4 ANNUAL 13,307.6 12,715.4 11,878.7 12,894.7 12,828.7 12,724.9 The Costa Real Municipal Water District purchases all of its water fron the San Diego County Water Authority. C-1 COSTA REAL MUNICIPAL WATER DISTRICT COST OF PURCHASED WATER (IN $1,000) # MONTH 80-81 81-82 82-83 83-84 84-85 Average July 178 .2 198 .9 240 .3 275 .6 353 .4 249 .3 August 214 .1 229 .1 277 .5 261 .5 330 .6 262 .6 Septonnber 191 .1 208 .3 216 .9 269 .0 318 .0 240 .7 October 172 .0 196 .3 206 .4 191 .0 296 .5 212 .4 November 145 .9 163 .9 145 .6 129 .3 219 .8 160 .9 Deconber 123 .7 101 .6 100 .5 103 .0 117 .3 109 .2 January 101 .6 71 .5 103 .7 150 .6 138 .8 113 .2 February 80 .1 81 .0 64 .6 191 .5 146 .5 112 .7 March 78 .4 87 .4 53 .0 273 .6 221 .9 142 .9 Pipril 125 .7 114 .3 110 .2 277 .6 284 .2 182 .4 May 167 .0 156 .4 156 .4 352 .4 348 .5 236 .1 June 178 .6 150 .6 172 .1 300 .8 366 .9 233 .8 ANNUAL 1,756 .4 1,759 .3 1,847 .2 2,775 .9 3,142 .4 2,256 .2 4 C-2 COSTA REAL MUNICIPAL WATER DISTRICT AGRICULTORAL USAGE (ACRE FEET) # MONTH 80-81 81-82 82-83 83-84 84-85 Average July 434 .8 449. 7 849. .3 483. .0 254 .2 494 .2 August 658 .2 701. 9 692. .9 494. .5 370 .2 583 .5 September 630 .5 689. 8 526. .5 698, .4 358 .8 580 .8 October 539 .6 609. 9 661, .9 255, .5 281 .6 469 .7 November 484 .9 461. 8 128, ,5 134. .0 49 .5 251 .7 December 278 .1 155. 3 57, .6 49, .8 63 .5 120 .9 January 253 .0 82. 2 98. .2 53. .3 103 .1 118 .0 February 125 .7 131. 9 43. .0 225. .0 133 .4 131 .8 March 113 .9 118. 2 54, .8 280, .6 223 .2 158 .1 April 358 .4 131. 6 174, .1 309. .0 308 .9 256 .4 May 345 .2 286. 9 283. .3 313. .0 339 .5 313 .6 June 392 .5 308. 3 288. .3 295. .8 300 .2 317 .0 ANNUAL 4,614 .8 4,127. 5 3,858. .4 3,591. .9 2,786 .1 3,795 .7 C-3 COSTA REAL MUNICIPAL WATER DISTRICT STATEMENTS OF REVENUE AND EXPENSE YEARS ENDED JUNE 30, 1981 AND 1980 EXHIBIT B OPERATING REVENUES: Water Sales Penalty charges and miscellaneous income Administrative expense reimbursement Total Operating Revenues 1981 1980 $ 2,407,435 $ 1,939,581 22,507 43,178 2,473,120 8,865 36,255 1,984,701 OPERATING EXPENSES: Cost of water sold Pumping Water treatment Transmission and distribution Customer accounting Administrative and general Total Operating Expenses 1,569,577 1,752 11,989 143,921 46,737 326,936 1,312,415 1,977 10,669 120,245 39,697 206,664 2,100,912 1,691,667 Net Operating Revenues Before Deducting Depreciation PROVISION FOR DEPRECIATION 372,208 179,433 293,034 153,317 Net Operating Revenues After Deducting Depreciation 192,775 139,717 OTHER REVENUES: Property taxes Interest earned Lease of property Total Other Revenues OTHER EXPENSE: Interest on bonds and notes payable 496,135 238,904 12,310 747,349 940,124 145,323 459,019 193,133 6,029 658,181 7 97,898 158,291 NET REVENUES 794.801 $ 639.607 See accompanying notes to financial statements HiCKEY & BLUSH AN ACCOUNTANCY CORPORATION u EH H CQ H EH U H EH C/5 H Q H u H < W tf o u w u !Zi ffl o CD 00 EH PH H a o W ro * w tf H Q W W W P o m tf H EH 0} u C rH PQ c (U -p fd •H u o u a 0. c (U -p •H u o a -P 4J VH C C <U Q) O 0] >1 JH -H W CJ TJ OJ C (D •P fd •H U CM o S| a fd c cn 0) u C fd iH fd CQ TJ fo T3 Q) -P fd •H U CM o H C COO) o Oj H C TJ fd C O CN in o o o CN CNJ CN 00 CN o n o o CO CM in in ro > in u ca 0) tf </>• tf fo o o H H O H CQ EH < C/3 W o !z; rH o rH yD 1 00 (Tl 00 >^ uo I I I ro ro O ro ro 1 1 O a\ uo m o uo H CN o o o CN 0^ H I I H O ro 1 00 1 rH KD rH CN CN CN O rH </> I I I I I I Q Q < U 4J fd C MH c 0) fd 0 0 •H P4 p 4-> 0 Q) U >i •H P +J 4J rH U •H •P rH C CQ 0 •H •H C m •P 0 P c u CQ 0 0) TJ •H p -P c c -P P •H P rH > ,Q •H 0) •H U P4 u }H 4-» •H •P C 04 -P C 0 Q) 0 U u a EH ID O H 04 < IZi o H EH < H u w Q W Q U W fo W Q U 9 tf w CM CO «^ ro ro in 0^ uo I I H uo ro r>- ro rH UO ^ H I I ro ro I i I I O >1 fd -P p 0 EH !2! 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Q: 0 u > u z < h Z D 0 u u < z < I if) D _l m i^j >- u COSTA REAL MUNICIPAL WATER DISTRICT EXHIBIT D STATEMENT OF CHANGES IN FINANCIAL POSITION YEARS ENDED JUNE 30, 1981 AND 1980 FUNDS PROVIDED: Net revenues Items which do not use working capital: Depreciation Bond discount amortization Working Capital Provided By Operations Discount interest on loan Proceeds from loans Consumer contributions for pipelines, meters and construction Collections on long-term contract receivable TOTALS 1981 179,433 351 974,585 149,285 6,848 1980 794,801 $ 639,607 153,317 351 793,275 9,636 609,757 407,033 6,576 $ 1.130.718 $ 1.826.277 FUNDS USED: Additions to plant, property and ecjuipment - net Current installments and repayment of long-term debt Increase in reserve for construction Discount interest on loan Increase in working capital TOTALS CHANGES IN COMPONENTS OF WORKING CAPITAL: Increase (Decrease) In Current Assets: Cash Receivables Discount interest Inventory Increase (Decrease) In Current Liabilities Accounts payable Notes payable Matured bonds and unredeemed bond interest coupons Accrued expenses Deposits Increase In Working Capital $ 210,007 354,886 5,253 560,572 988,559 300,000 192,000 345,718 ^ 1.130.718 $ 1.826.277 543,693 107,870 948 4,945 657,456 44,875 (18,982) (10,054) 12,349 410,771 (14) 2,409 10,345 423,511 (78,198) 128,788 (91) 36,779 96,884 77,793 $ 560.572 $ 345.718 See accompanying notes to financial statements HicKEY & BLUSH AN ACCOUNTANCY CORPORATION COSTA REAL MUNICIPAL WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 1981 AND 1980 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: (a) The District operates and reports as an enterprise utilizing the accrual method of accounting, except uncollected property taxes are not included in the District's financial statements. (b) The inventory of water in storage is valued at the lower of cost (last-in, first-out) or market. The materials inventory is valued at the lower of cost (first-in, first-out) or market. (c) Depreciation is computed on the straight-line jnethod 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 ecjuipment 5 to 20 years Office fixtures and ecjuipment 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 - San Diego County Water Authority and the land and easements are not being depreciated. HiCKEY & BLUSH AN ACCOUNTANCY CORPORATION COSTA REAL MUNICIPAL WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 1981 AND 1980 NOTE 2. PLANT PROPERTY AND EQUIPMENT: The plant property and equipment of the District is summarized below: Work in progress Cost of participation - San Diego County Water Authority Land and easements Reservoirs and dams Pipelines and pumping stations Chlorination stations Meters and accessories Buildings Machinery and ecjuipment Office fixtures and ecjuipment Totals Less accumulated depreciation Net Plant, Property and Equipment 1981 1980 $ 1,736,318 $ 1,676,223 33,174 33,174 123,848 123,848 1,544,073 1,544,073 5,782,152 5,632,867 67,378 67,378 461,949 461,949 161,456 161,456 101,646 96,170 103,071 104,642 10,115,065 9,901,780 1,752,795 1,580,590 $ 8.362.270 $ 8-321.190 NOTE 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 preceeding fiscal year. The contract contains no interest provision. HiCKEY & BLUSH AN ACCOUNTANCY CORPORATION COSTA REAL MUNICIPAL WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 1981 AND 1980 NOTE 4. LONG-TERM DEBT - BONDS: The interest rates and terms of payment of the District's long-term general obligation bonded debt at June 30, 1981 and 1980 are as follows: 1981 1980 Improvement District No. 1, 1957 issue, interest payable semi- annually on March 1 and Septem- ber 1: Due March 1 of each year through 1987 in varying amounts and rates ranging from $55,000 to $70,000 and from 3.85% to 4% 380,000 $ 440,000 Improvement District No. 2, Series No. 1, 1958 issue, interest at 5% payable semi-annually on March 1 and September 1: Due March 1 of each year through 1988 in increasing amounts from $15,000 to $25,000 135,000 150,000 Series No. 2, 1961 issue, interest at 4.5% payable semi-annually on May 1, and November 1: Due May 1 of each year through 1991 in increasing amounts from $15,000 to $25,000 Series No. 3, 1968 issue, interest at 5% payable semi-annually on January 1 and July 1: Due July 1 of each year through 1983 at $10,000 per year 215,000 230,000 30^000 40,000 HiCKEY & BLUSH AN ACCOUNTANCY CORPORATION COSTA REAL MUNICIPAL WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 1981 AND 1980 NOTE 4. LONG-TERM DEBT - BONDS (continued) 1981 1980 Improvement District No. 3, 1961 issue, interest payable semi- annually on March 1 and September 1. Containing sinking fund recjuirements from 1980 through 1990 at increasing annual amounts from $30,000 to $52,000 providing for retirement of fixed maturities when due and redemp- tion of callable bonds on their optional maturity dates. Call pro- visions apply to bonds maturing in 1991 in increasing amounts over the life of the issue. Due March 1 of each year through 1990 at $5,000 per year, interest at 4.75% i Due March 1, 1991 at 5% Improvement District No. 4, 1961 issue, interest payable semi- annually on June 1 and December 1: Due December 1 of each year through 1990 in varying amounts and rates ranging from $25,000 to $40,000 and 3.5% to 4.5% TOTALS Principal due within one year Long-Term portion TOTALS 55,000 553,000 55,000 558,000 355,000 380,000 $ 1.723.000 $ 1.853.000 $ 125,000 $ 125,000 1,598,000 1,728,000 $ 1.723.000 $ 1.853.000 At June 30, 1981 and 1980, the District had $300,000 of authorized but unissued construction bonds. HiCKEY & BLUSH AN ACCOUNTANCY CORPORATION COSTA REAL MUNICIPAL WATER DISTRICT NOTES TO FINANCIAL STATEMENTS JUNE 30, 1981 AND 1980 NOTE 5. LONG-TERM DEBT - NOTES: 1981 1980 Note payable - Southwest Bank, unsecured, payable $60,000 semi-annually plus 5 7/8% interest, pipeline project Note payable - Southwest Bank, unsecured, payable $50,000 semi-annually plus 6 1/4% interest, interest in water transmission line Note payable - San Marcos County Water~District, unsecured, payable $20,705 annually plus 7 1/4% interest, purchase of interest in water transmission line Note payable - NCR Corporation, secured by computer, payable $1,097 monthly including principal and discount interest Less principal due in one year TOTALS $ 300,000 $ 420,000 350,000 186,340 450,000 207,045 888,994 1,142,862 250,511 269,493 $ 638.483 $ 873.369 NOTE 6. EMPLOYEE RETIREMENT PLAN: The District has contracted with the Public Employees' Retirement System to provide a retirement plan for all full-time employees. The District's unfunded prior service liability is approximately $12,000 at June 30, 1981 and approximately $10,000 at June 30, 1980. The expense for providing retirement benefits under this plan for the year ended June 30, 1981 was $23,274 and $19,960 for the year ended June 30, 1980. HiCKEY & BLUSH AN ACCOUNTANCY CORPORATION SCHEDULE 1 COSTA REAL MUNICIPAL WATER DISTRICT ADMINISTRATIVE AND GENERAL, TRANSMISSION AND DISTRIBUTION, AND WATER TREATMENT EXPENSES YEARS ENDED JUNE 30, 1981 AND 1980 Hi ADMINISTRATIVE AND GENERAL: Salaries Engineering and special services Payroll taxes and employee benefits Legal, auditing and accounting Advertising and promotion Directors fees Utilities and telephone Auto and truck expense Insurance Meetings, conventions and dues Office supplies and expense Maintenance - general plant Printing and reproduction Bond service costs Small tools and ecjuipment maintenance Water conservation Programming and computer expense TOTALS 1981 77,554 90,988 17,418 17,955 3,076 6,968 14,127 13,884 14,278 10,311 29,303 3,605 4,214 983 712 2,025 19,535 1980 57,244 52,248 15,557 19,653 397 6,700 8,744 9,362 10,879 7,844 9,475 4,545 1,768 1,153 815 280 326.936 $ 206.664 TRANSMISSION AND DISTRIBUTION: Supervision - labor and expense Payroll taxes and employee benefits Repairs and maintenance - pipelines Engineering and special services Meter repairs Telemetering Utilities Ecjuipment rental TOTALS WATER TREATMENT: Chlorine Supervision - labor and expense Payroll taxes and employee benefits Power usage Chlorine equipment and station - maintenance Laboratory services - testing TOTALS 74,535 16,574 30,749 9,317 4,274 531 865 7,076 3,293 2,526 567 2,843 943 1,817 53,720 12,036 30,863 11,455 10,829 503 839 143.921 $ 120.245 4,574 1,857 505 1,591 1,052 1,090 11.989 10.669 HiCKEY & BLUSH AN ACCOUNTANCY CORPORATION COSTA REAL MUNICIPAL WATER DISTRICT SCHEDULE 2 ADDITIONS TO PLANT, PROPERTY AND EQUIPMENT YEAR ENDED JUNE 30, 1981 Pipelines: Lot 12, Palomar Airport Business Park # 1 Lots 3, 5 and 12, portion Lot 12, Palomar Airport Business Park # 1 CT 79-15 Lot 2, Palomar Airport Business Park # 1 Lot 13, Palomar Airport Business Park # 1 Additions to on-going projects: Master Public Water System Oceanside-Carlsbad Inter-tie High Reservoir - La Costa Water main extension for Encina South Aqueduct connection Tri-Agency pipeline Alga Road transmission line Park and Ride Failsafe line Squires Dam enlargement Cathodic protection - El Camino Real Carlsbad Oaks area master plan San Marcos Couty Water District Palomar Airport wastewater reclamation project Buena Sanitation District Master plan - Public Non-potable water service File cabinets 9.8 Megabytes Disk drive Folding table Slide projector and table Overhead projector with table Tool box Storage shed Microwave oven Two-way radio Computer Disk storage cabinet Office equipment Ford 1/2 ton pickup Two IBM typewriters TOTAL 59,215 4,200 8,700 53,376 23,794 8,981 4,345 362 8,736 71 14,101 1,272 5,322 224 1,540 5,616 633 6,478 33 1,477 57 . 239 5,812 79 526 159 84 212 345 1,078 159 297 7,035 1,864 226.422 HiCKEY & BLUSH AN ACCOUNTANCY CORPORATION