Hidden Valley Lake finance committee reviews audit, recommends budget tweak and several contract approvals

The Hidden Valley Lake Community Services District Finance Committee met Jan. 13, 2026, at the district office and reviewed the 2024–25 financial audit, recommended a FY 2025–26 budget adjustment, and recommended approval of multiple procurement proposals and studies affecting water and facility operations.

CPA Norman Newell of Smith and Newell CPAs presented the audit overview, describing the audit scope, the district’s financial position, internal controls and compliance with applicable laws and regulations; committee members asked questions about financial statements, fund balances and procedural improvements. The committee did not take formal action on the audit presentation.

Staff led the committee through a Budget-to-Actual review for FY 2025–26, pointing out revenue and expenditure variances, impacts to the capital improvement program (CIP), and areas of concern. After discussion the committee recommended approval of the proposed budget adjustment.

On procurement and project recommendations, the committee reviewed and recommended approval of several items: a Sierra Fire Service quote of $29,614.04 for two remote hydrant systems; Coastland’s $102,264 proposal to complete designs for the Water Storage Tank Wildfire Mitigation Project; Telstar’s $40,040 proposal to install an automatic chlorine shutoff valve at the wastewater treatment plant; and a $24,672 amendment to Bennett Engineering Services’ contract. The committee also recommended approval of quotes to purchase and install an A/C unit from Peterson Mechanical ($9,100) and Coastal Mountain Electric ($2,523).

The committee reviewed a proposal from DCCM for a Hexavalent Chromium Compliance Alternative Analysis Study priced at $95,671; staff described the study objectives and regulatory requirements and the committee recommended approval of the proposal.

Committee members reviewed the monthly financial statements and received a projects update; no action was taken on those items. No members of the public were present for comment. Committee members offered thanks to staff for the audit work, budget adjustments and field staff response during recent heavy rains.

Procedural motions recorded in the minutes include Director Gary Graves moving to approve the meeting agenda (seconded by Director Jim Freeman) and Director Jim Freeman moving to adjourn at 2:51 p.m. (seconded by Director Gary Graves); the adjournment motion carried unanimously.

The committee’s minutes record recommendations for approval on the items above; the minutes do not record formal roll-call votes on those recommendations within the Finance Committee record.