C150312 feas study - Laserfiche WebLink

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Budgets — In the fall, the District manager is required to submit to the Board of Directors a budget for the fiscal year commencing the following 7anuary 1. 'I'he operating budget includes proposed expenclitures and the means of financing them. Public hearings are conducted at the District to obtain taxpayer comments. Prior to Deceinber 3I, the budget is legally enacted by the Board. The manager is authorized to transfer budgeted amounts between Iine items of the District; hawever, any revisions that alter the total expenditures of the District must be approved by the Board of Directors. During 2006, actual ogerating expenses exceeded budgeted operating expenses. Capital Assets — Ali development costs in excess of $SQO which have a useful life of greater than one year and alI expenditures for repairs, maintenance, renewals, and betterments that materially prolong the lives of assets aze capitalized. Capital assets are recorded at cost. Depreciation is recorded on a straight-line basis over the estimateti useful lives of the assets, which range from twenty to seventy-five years. Tap Fees — Effective November 2004, the District charges a basic water #ap fee of $7,500 (for up to a three-bedroom home) to customers initially hooking up to the system. The fee increases $1,500 for each additional bedroom. Prior to November 2004, the basic water tap fee was $4,500. Cash and Cash Equivatents — Money market accounts, demand deposits and cash on hand are deemed to be cash equivalents for the purpose of the statement of cash flows. Property Taxes Receivable — Management has deter�iined that property taxes receivable are collectible and no allowance for doubtful accounts is deemed necessary. Fair Value of Financial Instruments — The District's finaneial instruments include cash and cash � equivalents, property taxes receivable, accounts payable, and bonds payable. The District estimates that the fair value of a1i financiai instruments at December 3 I, 2007 and 2006 do not differ materially from the aggregate carrying values of its financiai instruments recorded in the accompanying balance � sheet. The canying amount of these financial instruments approximates fair value because of the short maturity of these instniments. Operating Revenue and Ezpenses — Operating revenue and expenses are those that result from providing services and producing and delivering goods andtor services. It also includes all revenue and expenses not related to capital and related finaucing, noncapital financing, or investing activities. All revenue and expenses not meeting this defuution are reported as nonoperating revenue and expenses. Use of Estimates — Preparation of the District's financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial sta.tements and the reported amounts of income and expenses during the reporting period_ Actual results could differ from those estimates.