May 11, 2010
An independent auditor has given the Water District a clean opinion and indicated that good financial planning and sufficient reserves make the District very stable financially.
The annual audit for Fiscal Year 2009 was presented to the Board of Directors by Allan Johnston, CPA, who conducted the detailed audit of financial statements.
The Water District had total revenues of $19.8 million and total expenses of $18.5 million for the year. Unusually dry weather during 2009 generated larger than anticipated revenues.
At the end of the year the District had long-term bond debt of $48.3 million. Major new construction projects were started in 2009, financed with revenue bond debt to be paid off through future revenue from water sales.
An analysis included in the audit report notes that the District maintains reserves as recommended by the Texas Commission on Environmental Quality and that the overall financial condition of the District is adequate to continue operations in the event of an unexpected catastrophe.
A large portion of the District’s unrestricted fund balance is anticipated to be used for future projects, rate smoothing and any large unanticipated expense or catastrophe. While it has been three decades since the last major storm hit the Water District service area, it is necessary to be prepared for the potential of major economic disruption in the wake of a severe hurricane.
