Water Utility Enterprise Fund of The Santa Clara Valley Water District : Financial Statements For The Fiscal Year Ended June 30, 2006

2007·3.7 MB·English

by  Santa Clara Valley Water District., Maze and Associates.

WATER UTILITY ENTERPRISE FUND
OF THE
Santa Clara Valley Water District

San Jose, California

Basic Financial Staiements
For the Fiscal Year Endec June 30, 2006
WATER UTILITY ENTERPRISE FUND
OF THE
SANTA CLARA VALLEY WATER DISTRICT
Baeic Financial Staisments
For the Year Ended June 30, 2006

‘Table of Contents

independent Auditor's Report
Management's Discussion and Analysis

Basie Financial Statements:
Statement ot Net Assets

Slalersent cf Revenues, Expenses and Changes
Not Assets

‘Statement of Cast Flows .
Compining Statament af Revenues ard Expenses
Notas to Bosic Financial Statomenes

io

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2
18
14
INDEPENDEN AUDITOR'S REPORT OY

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sug 2007
Management's Discussion and Analysis,

ar ciscussion ard snalsis of the Sarta Clara Valley Water D stret's Water ify
Enle:prise Furd ‘nancia: pertomnance provides an overvew of tne Wacer Utity
Enie‘prisa Fund financia. activiias “ca (seal yer ended June $8, 228, This
jafermator is cvessrted fh conjunction wih the aucilad financia’ statements that “low
This section

The Water Utity Enterptise supolies whe esale treater water. grouncwater,-ecyclea
veer ra! surlace water lo lite resides's ol Sania Clava Ceunty. The water uty is &
separare enterprise fund othe Santa Clava Vailey Walar Distiet (D ati) that vias
fsstablishec to account for tre water tly trensactions of the D sie. Because se-vioe
needs ate d ferent inthe ronher ate! suuharn pariges of 'e eoun.y. opera.ions aad
expenditures are wracked based oa (ve relate beset ta Narth Souty are South
Gaunly ores. Lkew se, Ihe Oistricts wacer charges betwesn the tye Zoree are set
separate y

The Distal srgagad Maca @ Asseciaes Io zonducl an audi al ne Discs Water Listy
Ente-prise Fund fe~ “ne fica! year ended Jie 30, 2006. The puraose of the aveltwas
lavas ye bus easonahleness ol he slogslicns of cos: and evenuie hetweer. the 3x0
graunciiater charge zones within the Water Utlty Enterscisa Fund, 11a North Cowl
zone ane the Saurh Gourty zane.

Overview of the Financial Statements

The trercial statements presested herein include al o° the actuvitas of the Wats Litty
Enle’prise using ile iulegraled agproamn as prescaven by GASB Statement Ne. 34,

Entity-wide financist statements. The erti
firarcial picture of the Districts water Lilly Enlerprise Fynd fom the ecoxemic
rescces measurement focus Lsirg the accrual oasis of accounting. The entty-wide
Froncial Siaemenls vamprse the Stalement ot Ne: Assex and tne Stetemen: of
Changes in Net Asssts

ts present te

Tha Staismant of Nat Assats presents infa-malion on alo" ne Water UI ly Enterprise
Fune's assets and lacities, with the aifferance between the two reparted as cat asses,
Cer lis, increases co derreases ‘n net sosels may serve 35 a usehs Idcater of
\ihether the financial position o ts Distt is improvirg or deterc-aling

The Siatomant of Rovenuiss, Expenses and Changes t) Nat Assets provides information.
about the Water JSlty Enlerprice Fune's “evences and expeses an acerua basis, with
16 eashasis of maasuring ral revenues o expenses oF Ie pregrarn.

Notes to Sasic Financial Statements. The notes provide addtional intecraion “hat is
essential 10 a full undersiavding of the daca provided ‘©. Ihe evityawde financial
statements
‘Tae Water Ulli Eterp ce ie 5 fone chat ecoourts ‘e- operations ir. a manner similar to

Prue business enlerprise. Operations are secounied ‘cr in such a manner as Ip
shaw act income er fase and the funa 4 intended to 23 antirely or preéaminantly 30
sugacied from user charges.

Financial Highlights

Water Willy Boterpsise Furs Nel Assets
(Soar maura
2008

(Current and otter assets $8 133,082
Sapital assete an

Total assets 206 781
Cane lables reaTa
Long-term labities ourstancing 84.338

Totals ities isn
Not asso:
Investrien: in capiat sscets

nal ovale deb. 12468,
Resticted 21.256
Unrestictes 124540

Total rat assets

The soial net assets of che Water Ulity Entersrise Find excesded its lailties by
{5868-4 nillen. Of this arian, $124.9 sean {urs le rk aswls} mary be used
io eet the Water Lily Eniemrise Fire's ongene obligations to ctizans and
oad Lo,
Water Usiiy Entenzrise Funal’s Changes fo Not Assets
(he sin The sande

2008
Revenues:
‘Charges for serves 8
Operating grants and cart butions
Capital g'anss and contributions
Property taxes
Invostment earnings

T6382
Experses

‘Operating expenses i142

Nonoperatng snd cther expenses 88;
“Total expences Tee
Inoresse im ret azsets before transfers a3
Transare ary
Teccease ia rel assets (4a)
Net assets. beginning 501,514
Net assets, end ng 388,070

‘allusimenis fo rellect the consoldation ct
‘nternal aervize Funa actvites rela to
the erterprse funat (2.816)

Nel a

Is of business type acts tes ss

254

+ Tora revenues for the Water Uslty Enterprise Fine were $138.8 milion and total
oxponses wort $136 3 milion seeuting in a decrease of SCE isilion afler $0.5
rilion transfers,
Water Uilty Enterprise Furs nccire (Lass;
“Lessin Th. sande

Nosth South
county County

aerating Revenues:
Goundater charges:
Treated waca’ ehargas.
Suface and recycled warer charges
Total waxor cargos
Cperatiy, gianis
Total ocesaiing revenues

Osoratrg Expenses:

Source af sunphy 04118
Water tearnant 22.880
“Transmission and distioution
Raw waler 6291
Trestes water tie
Cas: of geads sold w4357
‘Acmia stative ane ge7eral 18a77
Dahl amprt cation :
Yolal eneraig expenss M094
‘Operating income ‘loss? (7.302)
Non operating income (expenses)
Proper. taxes 18.97"
Investrant ineoa's 2.088
25
2.022
Interest and fiscal agent face 14.387) 2
Open space cred raiser {ea2) 848
Net ror-czerairg income 73.483 2
Ineorne :loss} Ser

+ The Woler Usily Esterprice Fund's tolal veverues from avalar charges: were
$708.0 miio7 in fiscal yoar 2008/98. Nincty-four porcart of frase roverues, oF

$.0155 nillon were collected fom ovstome’s ‘nthe North Courty. while the
rom Souh Ceuny:

remainrg € paren, or $6.5 millon were coliect

% Cpsrating Grants 3:
Chung everiae a These geanls helped 0 Tune
wwater conservation, desalinaion, ard recyslesirec simed water procras,
+ Operatig sypenses for the forth County incLide $64.3 milion r. cost of e505,
sold, of 924 of hs to:a oper Soult Cunly, cost
cf gross Ra is 88.1 millon or 12555 o° ts ova: spsrating income,

+ Auiinisiative exeanaes aad debl amotizstian make up 18% of toial aperat nag
noone in the earth Cocrly a2d 53% of total operating income in she South
Sout

© Tes operaling inverre of $1082 rill ess ial operating axpansas of 8122.5
milion results in $12.3 milion loss ‘rom operaticas. The .oss tom Neh
County operations is 87.3 milfor. while ne loss trom South Courly oyerlions 's
Sp. milion,

emer ea

Operat onss s
vera

rogerly le and invesliranl eacrirys @° $22.4 mon

» Property taxes colloctod 1 the Nath Courty amounts to $18 mikion wale $1.3
nition was oc lected in Soutt. Counly far a totel of $13.8 millon, These are
sonipised of voler appravee abligaors for Stale Water Projec: and Zona W-1
Debt service; and the water atlfy’s aliocatad stare of che countywide 1% ad
valorem faxes

= $3.1 millon ot invesmert earnings ras.lee (row ar: average reli of 3.4 M4 ¢-
avenge balances @: $62.9 millon was allocated to the Norh County.

Income are loss tom tora income and tows experses vas a $11.2 millon incc-Te
located to Norh Ga.ity and 3 $7.2 mili toss tor South courly, iolatng $8.5 rion
incame overall
Tre fallawiag tl

So shows ts

rates “0: water soricos far scal year 2005-06:

Wedae Lit Eoternnsa Funes Rabe Summary
“Adopted 2695-06

Rate
wdvsler
felt Cau ty — Agrealral 42.96
Nort Cowtaty - Non-Aagriultura 420.00
Souh Counly~ Agrcuturs! 21.50
Souin County —son-agacuitarat atbB
Tieated Water
Cori Sere)
Non-Contact

Untreated Water

Norls Caurly ~ &grizatura 4200
North Goerty - Non-Agrie.tural 42008
Soult Gounly —agrosdurel 2:50
Sout Geuety —Nev-Agecuitura 215.00
Water Mest 175
Half Re\Goyote Madcone Sys 278
itm Cherie
Rerth Coury
Sout Courty
Rorsimed Vater
Gilroy Reclamation Factlty - Agrioutural 39.49
Gilroy Reclamation Facily - Nes-Agneutura $185.00
Capita! Assets

The Water Lilly Entersise Furd’s investment in cagital assets as o* June 30, 2026,
amounts 19 $584.8 mien {nat cf azeamylalad aapravialian. Tha inves ant in spa
assets includes land, bulkings, structures arc imacovements (which includes tho flecd
orl improverses, rmacrinery and equ'pment. Daring FY 2205006 the tos: increase
in cha YWarer Uility Enterpries Tund's invsstmant in cazital assets for the cluren: year
was $28.5 milica,

jor capita! projects ir prograss dung the current fisca year include tne folowing:

+ PWT? Trested Water Inprovernens 862.000
¥ STWGP Treated Wate” imp-ovoments —_4.260,000
PUTS sealer Walar Empraverans 2708000
Water Unity Enternvise Fund's Capital Assats
‘Netof accurate: Deprelaser)
(Geter The sande

2008
nd 3 17288
Conract waier ane sto-age rghss 55.185
Buildings
Structures and improve-nents 77033
Equipment 10,588,
202170,
8 5648°9

on oa the Water Utlty Enterprise
innate & whion begins or paga 28 af his ropo:

refs cagsal assets can be found

Dabt Adminletration

‘Ac the end of the current “scal year, the Water Utity Erterprise Fund had total debe
olrstarcing cf 362.2 milien, This Watas Uiity Erternise Find's long-ter oalgations
surstersing as of Jans 29. 2006 consisted af the falewirsy

Wotor Unity Enterprise Fund's Ouistansing Obiigations
(Deilars ia Thousands)

2008

sreral obligation bonds S30
Revane bonds 4313
Se.mitropic Bz.
Total z

fn FY 2006, $18.8 -ilisn wes pid agcinet the Sanvtrapic Water Banding de’t In oder
to guaraates our rghss ta the s:cvage facility throveh the year 2935. All other decreases
it Bbigalians were fram Bie nonral texayinent of peinepal on existing cutslenuing deal

“he rating of the District's certicstes cf partcisation series from Moody's sages ‘ram:
faa to Aaz anc fom Starderd & Poor's ffam AAA to Ade, Tho ovende horas cf the
Water Jtilty Enterprise Fund have a bond rating fram Moody's ranging from A> to 23
and [ram Slandard & Pac's from AA iy AB

‘Additicval information on zis Water Uslly Enerprise Fund's long-zerm debt car be foure
i rote 7 an gages 26-28 of h s “anor.