Chino Valley accepts clean audit and approves groundwater extinguishment credit purchase

Chino Valley's council accepted the town's annual comprehensive financial report for the fiscal year ending June 30, 2024, and approved a groundwater extinguishment credit purchase to help meet future assured-water-supply needs.

Baker Tilly representatives told the council they issued a clean (unmodified) audit opinion and reported no instances of noncompliance or material weaknesses. The auditor summarized high-level movements: the general fund showed a fund-balance decrease of about $3.8 million largely attributable to transfers out for capital projects; the town remained well under the state's expenditure limitation; and enterprise funds had operating shortfalls in water and sewer that were partially offset by transfers.

"You did receive a clean opinion, an unmodified or unqualified audit opinion on those financial statements," the auditor stated.

Following the audit presentation, council moved to accept the annual comprehensive audited financial report and the required annual expenditure-limitation report.

On water resources, the council approved a groundwater extinguishment credit purchase agreement recommended by staff. Water consultant Mark Holmes told the council the proposed purchase is for 242.88 acre-feet of extinguishment credits at a purchase price of $58,291.20 (equivalent to $240 per acre-foot), linking the purchase to town general-plan policies that prioritize assured water supply for future development.

"At this time, the recommendation is town staff recommends approving the groundwater extinguishment credit purchase agreement with Alice E Schofield for 242.88 acre feet of extinguisher credits in the amount of $58,291.20," Holmes said.

Council approved the purchase by motion and voice vote. Staff said the acquisition is intended to support the town's strategic goals for future development in areas that will need assured water supply, such as large dry-land parcels identified in the general plan.