American Ranch Domestic Water Improvement District
Fiscal Year 2009-2010 Budget Explanation
Prepared by
IMPROVEMENT DISTRICT SERVICES, INC.
Administrators for the
American Ranch Domestic Water Improvement District
117 East Gurley Street, Suite 206, Prescott, AZ 86301
Phone: (928) 443-9484 or (800) 659-7149 / Fax: (928) 443-9486
ids@cableone.net
The following items provide an explanation of each estimated budget account.
EXPENSE
Operations and Maintenance Expense (O&M):
1. Administrative Services: This account covers the cost for services, expenses, and supplies necessary to provide daily District administrative services.
2. Reimbursed Administrative Services: This account covers the cost for administrative services charges for items that are reimbursed to the District, such as activation fees and collections.
3. Operations Service: This account covers the cost for services provided for daily routine operations and maintenance of the water facility and distribution lines. 3a covers the cost for operator’s overtime, time spent over and above the routine contract duties.
4. Attorney Services: This account covers the cost for legal services. Summary of routine services: legal advice; contract review; Board and staff assistance; research and recommendations.
5. Professional Services: This account covers the cost for the annual financial review or audit by an outside Certified Public Accountant.
6. Publishing: This account covers the District’s cost for mandatory publishing of legal notices and bid advertisements.
7. Insurance Premium: This account covers the cost for District insurance coverage, which includes director’s insurance, liability coverage, and non-owned auto coverage.
8. Elections/County Backbilling: This account represents the cost for the County’s services performed on behalf of the District such as ballot printing, mail services, and staff assistance.
9. Dues & Membership: This account represents expenses for membership and registrations, which includes registering the system with the ADEQ (AZ Dept of Environmental Quality) and ADWR (AZ Dept of Water Resources), inspections and permit renewal.
10. Office Supplies: This account represents office supplies, equipment purchases, and copy expenses for water operations and maintenance, Board of Director’s expenses and printing.
11. Postage: This account covers the cost of special mailings as directed by the Board. The sanitary and water districts typically share in the postage expenses.
12. Electricity: This account covers electricity costs for the water facility.
13. Telephone: This account includes telephone lines for the alarm systems, pumps and phone service to the facility.
14. Laboratory Analysis: This account includes laboratory analysis expense and messenger delivery service for sample analysis by outside laboratories.
15. Operating Equipment and Supply: This account covers the cost for equipment and supplies necessary for routine operation and maintenance of the water system (ie: equipment, tools, rental equipment, chemicals, testing equipment, testing supplies, pumps, motors, etc.). 15a covers the anticipated cost to program the flow meter; 15b is for an inspection of the water tank.
16. Emergency Services: This account covers the cost for unscheduled emergency maintenance and repair (i.e.: operator response, equipment and contractors).
17. Meter Installation: This account covers the cost of installing water meters and backflow devices.
18. Backflow Prevention Program: This account covers the estimated cost for a mandatory backflow prevention program.
19. Sales Tax: This account covers the sales tax paid by the District on the sale of water.
20. Contingency: This account allows for possible miscalculation in budget estimating due typically to system performance, growth and unanticipated necessary expenditures.
21. Transfer To Capital: Due to the slow development of vacant lots user fees were not sufficient to cover the District’s operation and maintenance costs so it was necessary rely on funds collected as Hook up Fees. It was the intention of the Board of Directors in 2006 to collect these funds and return them to the Hook up Fee/Capital Fund.
22. Total O&M Expense
Capital Expense:
23. Capital Scheduled Expense – Impellers: This account covers the cost of anticipated capital expenditures. In FY 08/09 it is anticipated to purchase and install impellers.
24. Capital Emergency Fund: This account covers the cost to cover the cost of capital contingency expenditures.
25. Total Capital Expenditure Budget
26. Total Expense Budget
REVENUE
Operations and Maintenance Revenue:
27. User Fee: The District collects a fee which is used for the District’s Operation and Maintenance expenditures necessary to provide proper operation, maintenance, and administration of the District and the water system. This account represents the revenue from the user fee billings.
28. Permit Fee: This account represents the revenue charged to new properties obtaining building permits.
29. Interest: This account represents the revenue from earned interest on the operations and maintenance account balance with the Yavapai County Treasurer’s office.
30. Ad Valorum Tax: This line item is the amount of ad valorem tax charged.
31. Sales Tax: This account represents the sales tax collected for the sale of water.
32. Activation/Transfer Fee: This account represents the revenue from an activation/transfer fee. This fee is a one-time fee charged to all accounts upon activation or transfer of ownership.
33. Miscellaneous Income: This account represents revenue received for miscellaneous reasons, such as refunds.
34. Total Operations and Maintenance Revenue
Capital Revenue:
35. Hookup Fees: This account represents the revenue charged to new properties for connection to the water system.
36. Transfer From O&M: Due to the slow development of vacant lots user fees were not sufficient to cover the District’s operation and maintenance costs so it was necessary rely on funds collected as Hook up Fees. It was the intention of the Board of Directors in 2006 to collect these funds and return them to the Hook up Fee/Capital Fund.
37. Interest: This account represents the revenue from earned interest on the capital account balance with the Yavapai County Treasurer’s office.
38. Total Capital Revenue
39. Total Revenue Budget
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