Board approves June financial reports; single-audit adds about $5,000

The Board of Trustees approved the district's financial reports for the period ending June 2025 and voted to accept the auditors' financial statement at its July 9 meeting. The board also reviewed a roughly $5,000 additional line item that staff said resulted from a federal single-audit requirement. Trustee (unnamed) called for the vote to approve the agenda and minutes and later asked for a motion to approve the financial report; members moved, seconded and approved the measures. The single-audit cost was described by a staff member, Stu, as a consequence of closing interim loans into long-term debt for a painting project and a booster-station project. Stu said those closings pushed the district over the federal threshold that triggers a single audit and that the additional approximately $5,000 shown in the budget is the resulting cost. The staff member also offered to answer any questions and said most budget lines are expected to end close to budget despite some over- and under-spending. Board members and staff discussed capital-reserve lines tied to specific projects and more general unallocated reserves used for cash flow. A staff member identified one outstanding balance of about $464,000: a payment for a recently paid jet-truck invoice that is being held in an account until the invoice is processed and will disappear before year end. Another staff member reported renewing a certificate of deposit at the County Federal Credit Union at roughly 3.8% (annual percentage rate reported as about 3.87%) for 12 months, citing it as the best available rate among local banks. The board heard that one additional meter was purchased this year that was not in the original capital estimate and that a new capital line had been started for that cost. After discussion, the trustees moved and approved acceptance of the auditors' financial statements. Discussion only: staff commentary about budget variances, capital reserve purposes and the new meter purchase. Direction: staff will finalize the jet-truck invoice payment and provide a final manhole repair cost breakdown next month. Formal action: board approval of the June financial report and formal acceptance of the auditors' financial statement.