July 18, 2013
Once again an independent auditor has given the Water District an unqualified clean opinion and indicated the District is financially strong.
The annual audit for Fiscal Year 2012 was presented to the Board of Directors by Allan Johnston, CPA, who conducted the detailed audit of financial statements.
Total revenue from water sales in 2012 was $18.6 million, down from $19.4 million in 2011 which was a period of severe drought and above average water demand.
Total water demand in 2012 was 8.1 billion gallons. Of that 50% was drinking water, 32% was industrial treated water and 18% was untreated or "raw" water used by industry. The District serves large industrial process plants including Sherwin Alumina, Occidental Chemical Corp., Dupont, Air Liquide, Ingleside Cogeneration and Gregory Power Partners.
The District provided 3.5 billion gallons of treated drinking water to area cities and water suppliers who serve residential and commercial customers.
The District maintains an unrestricted fund balance that will be used for future projects, any large unexpected expense and for rate smoothing. While it has been three decades since the last major hurricane hit the Water District service area, it is necessary to be prepared for the potential of major economic disruption, including reduced revenue from water sales, in the wake of a severe storm.
At the end of 2012 the District had long-term bond debt of $44.1 million including revenue bonds issues in 1998, 2006 and 2009 to fund major constructionprojects. Bond debt is paid off through future revenue from water sales.
The Water District is a "cost of service" entity, meaning that customers are charged water rates based on the total cost of operations, water purchases and debt service.
The District purchases raw water from the Nueces River and Lake Texana through contracts with the City of Corpus Christi which manages the regional surface water supply system.
