Tucson
Water Company - Finances
Following
instructions from the board of directors the treasurer prepares an annual
budget itemizing the past year’s income and expenses, the proposed current
year’s income and expenses, and the current bank balance. The proposed year’s budget is then discussed
and approved by the membership at the annual members meeting in May.
The
company’s operating income originates from:
1) accounts receivable (AR) – payments received from
the quarterly water bills mailed to the lot owners of Tucson Estates (36) and
the Adams County “Brighton School District 27J” (1). Water rates are reviewed
and changes are approved by the membership at the annual meeting. Rates are
separated into Domestic and Irrigation charges. Presently, domestic rates are based on a flat $35 monthly charge
per household up to a maximum of 15,000 gallons, then progressively higher
based on usage. Domestic meters are
read each month to record usage. Irrigation rates are a flat $20 per month,
year round, with no limit on usage for the homeowners while the school district
pays the same $20 flat rate plus $1.50
per 1000 gallons. Irrigation meters are not read on any homes and most
probably don’t work.
2) annual assessments – approved by members at the
annual meeting (in the history of the company there has never been an annual
assessment)
3) special assessments – approved by the board of
directors under extraordinary conditions to continue to operate the company (in
the history of the company there was one special assessment of $500 to each of
the 37 customers, in June of 2003)
4) fines, penalties, late charges,
and other fees
– may be included with, or in addition to, the quarterly water bill. In the history of the company no fine has
ever been assessed for violating water restrictions or other rules, one penalty
has been assessed to reconnect discontinued service, numerous late charges have
been assessed at 10% of the outstanding balance 60 days past due or 90 days
after the billing period, no other fees have ever been charged (e.g. repair or
replacement of meters or meter pits)
5) water tap fees – since the last water tap fee
was paid among the 36 lots of the subdivision there has been one tap fee of
~$18,000 paid by the school district for a 2” irrigation tap.
The
company’s operating expenses (accounts payable – AP) fall into seven general
categories:
1. Water Treatment and Testing
2. Domestic Operation and
Maintenance
3. Domestic System Improvements
4. Irrigation Operation and
Maintenance
5. Irrigation System Improvements
6. Administration and Office
Supplies
7. Insurance and Miscellaneous
Our
Financial Statement:
The
treasurer’s report at the annual members meeting itemizes all past and proposed
AR/AP amounts into a budget. Note: for
IRS and bookkeeping purposes all AR appear as journal credits (deposits) and
all AP as a journal debits itemized against one of the seven categories
above. If there is any outstanding
debt, repaid amounts are included in the appropriate AP category.