Treasurer Laurie Bennett reported to the Board on March 22 that she has arranged to have our large deposits at Pacific Western Bank moved into insured certificates of deposit under the FDIC’s CDARS or IntraFi program, as of March 23. General Manager Robert Eranio is working with Community Bank of Santa Maria to have our deposits there classified as “public funds,” which may also be insured.
The CPA’s report of its “review” (not “audit”) of FY2022 annual financial statements has been posted on Crestview’s website. The report, which has not been sent directly to shareholders in the past, contains important details, explanations, and qualifications. Responding to previous shareholder comments, the Treasurer reported that there are some “legacy assets” on the balance sheet that have been fully depreciated and, the CPA agrees, should be written off. After tax season, the CPA will prepare the appropriate journal entries.
We have reduced our water consumption so much during the rainy season that, so far, we have “banked” about 100 acre-feet more than budgeted, according to the GM’s report. For context, our average annual pumping rights are limited to 747 acre-feet. In this rainy season, total demand has averaged about 140,000 gallons per month, compared to about 1,000,000 gallons per month in the hot summer months. Irrigation use accounts for the difference.
Our conservation success is despite the fact that some shareholders have inexplicably continued irrigation during our recent heavy rains. Crestview staff have been calling some of those shareholders to point this out and to encourage them to self-monitor using Eye on Water. Since water sales are down, revenues are also down. That is not a problem, the Treasurer assured the Board, because we have plenty of cash, and the water we did not sell in the last few months will be sold later. President Frank Mezzatesta reported that he had successfully urged Eye On Water to correct an error on its reporting algorithm and gotten it to include a new leak alert feature for consumers.
Please forward this newsletter to other Crestview shareholders so they can sign up to receive future posts directly. Click on the Home tab and read earlier posts, or use the Tags word cloud or Search box to focus on a topic. Shareholders may comment below.