2016Annual Report.pdf

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A]Y]Y(IAL REPORT
OF
Capitol Water Gorporation
2626 Eldorado
Boise, ID 83704
TO THE
IDAHO PUBLIC
UTILITIES COMMISSION
FOR THE
YEAR ENDED 2016
COLES
REINSTEIN
Accounting & Consulting Dennis R. Reinstein, CPA,/ABV ASA, CVA
S. Jason Coles, MBA, CPAIPFS
Keith A. Pinkerton, MBA, CFA, ASA
Karen A. Ginnett, CPA, CFE, MST
Susan M. Langley, CPA, CFE
Board of Directors
Capitol Water Corporation
Boise,Idaho
Management is responsible the accompanying financial statements of Capitol Water Corporation, which
comprise the balance sheet as of December 31,2016 and the related statements of income and rrtained
earnings for the year then ended in the accompanying prescribed form of the Idaho Public Utilities
Commission. We have perfonned a cornpilation engagement in accordance with Staternents on Standalds
for Accounting and Review Services promulgated by the Accounting and Review Services Committee of
the AICPA. We have also compiled the supplementary schedules of revenue and expense detail, plant in
service detail, accumulated depreciation detail, capital stock detail, detail of long-term debt and system
engineering data in the prescribed form of the Idaho Public Utilities Commission. We did not audit or
rcview the financial statements nor were we required to perform any procedures to verifi the accuracy or
completeness of the information provided by management. Accordingly, we do not express an opinion, a
conclusion, nor provide any form of assurance on these financial statements.
The financial statements and supplementary information are presented in accordance with the
requirements of the Idaho Public Utilities Commission, which differ from accounting principles
generally accepted in the United States of America./n//- R^*)i'*,Quuc-
April17,2017
Member of American lnstitute of Certified Public Accountants and ldaho Society of Certified Public Accountants
coLEs REtNSTE!N, P.L.L.C.
University Plaza, 960 Broadway Ave., Suite 415, Boise, lD 83706 T 208.345.2350 F 208.344.3019
ANNUAL REPORT FOR WATER UTILITIES TO
THE IDAHO PUBLIC UTILITIES COMMISSION
FOR THE YEAR ENDING December 31,2016
COMPANY INFORMATION
1 Give full name of utility
2 Date of Organization
3 Organized under the laws of the state of
4 Address of Principal Office (number & street)
5 P.O. Box (if applicable)
6 City
7 State
8 Zip Code
9 Organization (proprietor, partnership, corp.)
10 Towns, Counties served
Capitol Water Corporation
AprilT, 1959
ldaho
2626 Eldorado
Boise
ldaho
83704
Corporation
Boise
Ada County
11 Are there any affiliated companies?No
lf yes, attach a list with names, addresses & descriptions. Explain any services
provided to the utility.
12 Contact lnformation Name Phone No.
President (Owner)
Vice President
Secretary
General Manager
Complaints or Billing
Engineering
Emergency Service
Accounting
H. Robert Price 375-0931
Bonnie Price 375-0931
H. Robert Price 375-0931
Bonnie Price 375-0931
H. Robert Price 375-0931
H. Robert Price 375-0931
Coles Reinstein PLLC 345-2350
13 Were any water systems acquired during the year or any additions/deletions made
to the service area during the year?No
lf yes, attach a list with names, addresses & descriptions. Explain any services
provided to the utility.
14 Where are the Company's books and records kept?
Street Address 2626 Eldorado
City Boise
State ldaho
83704
Rev 3/02
Zip
Page 1
NAME: Capitol Water Corporation
COMPANY INFORMATION (Cont.)
For the Year Ended December 31 2016
15 ls the system operated or maintained under a
service contract?
16 lf yes: With whom is the contract?
When does the contract expire?
What services and rates are included?
17 ls water purchased for resale through the system?
18 lf yes: Name of Organization
Name of owner or operator
Mailing Address
City
State
zip
Water Purchased
19 Has any system(s) been disapproved by the
ldaho Division of Environmental Quality?
lf yes, attach full explanation
20 Has the ldaho Division of Environmental Quality
recommended any improvements?
lf yes, attach full explanation
21 Number of Complaints received during year concerning:
Quality of Service
High Bills
Disconnection
22 Number of Customers involuntarily disconnected
23 Date customers last received a copy of the Summary
of Rules required by IDAPA 31.21.01.701?
Attach a copy of the Summary
24 Did significant additions or retirements from the
Plant Accounts occur during the year?
lf yes, attach full explanation
and an updated system map
No
No
Gallons/CCF $Amount
No
No
6
0
1
12
01-Sep-16
No
Rev 3/02 Page2
NAME: Capitol Water Corporation
ACCT #
REVENUE & EXPENSE DETAIL
For the Year Ended December 31, 2016
DESCRIPTION
1
2
3
4
5
6
7
8
4OO REVENUES
460 Unmetered Water Revenue
461.1 Metered Sales - Residential
461.2 Metered Sales - Commercial, lndustrial
462 Fire Protection Revenue
464 Other Water Sales Revenue
465 lrrigation Sales Revenue
466 Sales for Resale
400 Total Revenue (Add Lines 1 - 7)
(also enter result on Page 4, line 1)
" DEQ Fees Billed separately to customers
*" Hookup or Connection Fees Collected
***Commission Approved Su rcharges Collected
$ 570,243
136,002
703
70,1 90
56,1 1 5
54,835
63,396
92,681
20,551
17 363
22,791
16,970
2,243
8,557
8,895
(1,638)
14,921
$ 706,948
Booked to Acct #
Booked to Acct #
Booked to Acct # 460.5
I
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
601.1-6
601.7
601.8
603
604
610
615-16
618
620.1-6
620.7-8
631-34
635
636
641-42
650
656-59
660
666
667
670
675
401 OPERATING EXPENSES
Labor - Operation & Maintenance
Labor - Customer Accounts
Labor - Administrative & General
Salaries, Officers & Directors
Employee Pensions & Benefits
Purchased Water
Purchased Power & Fuel for Power
Chemicals
Materials & Supplies - Operation & Maint.
Materials & Supplies - Administrative & General
Contract Services - Professional
Contract Services - Water Testing
Contract Services - Other
Rentals - Property & Equipment
Transportation Expense
lnsurance
Advertising
Rate Case Expense (Amortization)
Regulatory Comm. Exp. (Other except taxes)
Bad Debt Expense
Miscellaneous
Total Operating Expenses (Add lines 12 - 32, also enter on Pg 4, line 2)
Rev 3/02 Page 3
$ 447,870
Name: CapitolWaterCorporation
ACCT #
For Year Ended
DESCRIPTION
INCOME STATEMENT
December 31 2016
1 Revenue (From Page 3, line 8)
2 Operating Expenses (From Page 3, line 33)
3 403 Depreciation Expense
4 406 Amortization, Utility Plant Aquisition Adj.
5 407 Amortization Exp. - Other
6 408.10 Regulatory Fees (PUC)
7 408.11 Property Taxes
8 408.12 PayrollTaxes
9A 408.13 Other Taxes (list) DEQ Fees
Vehicles
$ 447,870
89 166
1,331
28,368
14 120
778
3,511
881
$ 706 948
587 025
34
9B
9C
9D
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
409.1 0
409.11
41 0.1 0
410.11
411
412
Federal lncome Taxes
State lncome Taxes
Provision for Deferred lncome Tax - Federal
Provision for Deferred lncome Tax - State
Provision for Deferred Utility lncome Tax Credits
lnvestment Tax Credits - Utility
1
413
414
Total Expenses from operations before interest (add lines 2-15)
lncome From Utility Plant Leased to Others
Gains (Losses) From Disposition of Utility Plant
Net Operating Income (Add lines 1,17 &18less line 16)
Revenues, Merchandizing Jobbing and Contract Work
Expenses, Merchandizing, Jobbing & Contracts
lnterest & Dividend lncome
Allowance for Funds used During Construction
Miscellaneous Non-Utility lncome
Miscellaneous Non-Utility Expense
Other Taxes, Non-Utility Operations
lncome Taxes, Non-Utility Operations
Net Non-Utility lncome (Add lines 20,22,23 & 24 less lines 21 ,25,26, &27)
Gross lncome (add lines 19 & 28)
lnterest Exp. on Long-Term Debt
Other lnterest Charges
NET INCOME (Line 29 less lines 30 & 31) (Also Enter on Pg 9, Line 2)
415
416
419
420
421
426
408.20
409-20
427.3
427.5
119 923
34
119 957
1 499
Rev 3/02 Page 4
$ 1 18,458
Name
SUB
ACCT #
301
302
303
304
305
306
307
308
309
310
311
320
330
331
333
334
335
336
339
340
341
342
343
344
345
346
347
348
Capitol Water Corporation
ACCOUNT 101 PLANT IN SERVICE DETAIL
For Year Ended December 31, 2016
Balance
Beginning
of Year
Added
During
Year
Removed
During
Year
Balance
End of
Year
584
40 969
$195
145
2
$ 307 406
$1 10
1
2
3
4
5
6
7
8
I
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
DESCRIPTION
Organization
Franchises and Consents
Land & Land Rights
Structures and lmprovements
Collecting & lmpounding Reservoirs
Lake, River & Other lntakes
Wells
lnfiltration Galleries & Tunnels
Supply Mains
Power Generation Equipment
Power Pumping Equipment
Purification Systems
Distribution Reservoirs & Standpipes
Trans. & Distrib. Mains & Accessories
Services
Meters and Meter lnstallations
Hydrants
Backflow Prevention Devices
Other Plant & Misc. Equipment
Office Furniture and Equipment
Transportation Equipment
Stores Equipment
Tools, Shop and Garage Equipment
Laboratory Equipment
Power Operated Equipment
Communications Equipment
Miscellaneous Equipment
Other Tangible Property
TOTAL PLANT IN SERVICE
(Add lines 1-28)
$26
917 3
$ 119
$28
163 8
I
26 174
928
107
$338 $ teg
$
$1
584
969
195
070
$30
1
$
$307
$2
291
23 731
3 7
0
3 7
$ 291
23 731
8
27 0
952
119 3
$
29 5
244 915
26 537
107
$3 78 697
1501 1
5
5
$
928
$
$
$
$
7$
Enter beginning & end of year totals on Pg 7, Line 1
$636
$ 19,240
$688
875$
$ 34.943
608$
817$
$ 81.697
363$
Rev 3/02 Page 5
Name: Capitol Water Corporation
ACCUMULATED DEPRECIATION ACCOUNT 108.1 DETAIL
For Year Ended December 31,2016
Depreciation
Rate
Yo
Balance
Beginning
of Year
Balance
End of
Year
lncrease
SUB
ACCT #
or
DESCRIPTION Decrease
1
2
3
4
5
6
7
8
I
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
304
305
306
307
308
309
310
311
320
330
331
333
334
335
336
339
340
341
342
343
344
345
346
347
348
Structures and lmprovements
Collecting & lmpounding Reservoirs
Lake, River & Other lntakes
Wells
lnfiltration Galleries & Tunnels
Supply Mains
Power Generation Equipment
Power Pumping Equipment
Purification Systems
Distribution Reservoirs & Standpipes
Trans. & Distrib. Mains & Accessories
Services
Meters and Meter lnstallations
Hydrants
Backflow Prevention Devices
Other Plant & Misc. Equipment
Office Furniture and Equipment
Transportation Equipment
Stores Equipment
Tools, Shop and Garage Equipment
Laboratory Equipment
Power Operated Equ ipment
Communications Equipment
Miscellaneous Equipment
Other Tangible Property
TOTALS (Add Lines 1 - 25)
18
3
313
256
$131
034
$176
62
$055
$
$
105
701
$942
$
80
2 1 116 2 550 166
Enter beginning & end year totals on 7, Line 7
$ 115,572 $ t 18,990
2,435$2,438$
$ 215,085 $ 224.398
$ 1.041.802 $ 1.062.058
638$$769
$ 174.471 $ 183.505
$ 21,333 $ 21,509
831$769$
$ 1 1,966 $ 13,021
s 604.077$ 573,623
$ 91.902 $ 95,338
$ 25,1 18 $ 26.223
$ 162,978 $ 172,679
$ 22.692 $ 23,634
625$705$
107$107$
Rev 3/02 Page 6
Name: Capitol Water Corporation
BALANCE SHEET
For Year Ended December 31, 2016
ASSETS Balance
Beginning
of Year
Balance
End of
Year
lncrease
or
ACCT #DESCRIPTION
1
2
3
4
5
6
7
8
I
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
101
102
103
105
114
Utility Plant in Service (From Pg 5, Line 29)
Utility Plant Leased to Others
Plant Held for Future Use
Construction Work in Progress
Utility Plant Aquisition Adjustment
Subtotal (Add Lines 1 - 5)
Accumulated Depreciation (From Pg 6, Line 26)
Accum. Depr. - Utility Plant Lease to Others
Accum. Depr. - Property Held for Future Use
Accum. Amort. - Utility Plant in Service
Accum. Amort. - Utility Plant Lease to Others
Accumulated Amortization - Aquisition Adj.
Net Utility Plant (Line 6 less lines 7 - 12)
lnvestment in Subsidiaries
Other lnvestments
Total lnvestments (Add lines 14 & 15)
Cash
Short Term lnvestments
Accts/Notes Receivable - Customers
Other Receivables
Receivables from Associated Companies
Materials & Supplies lnventory
Prepaid Expenses
Unbilled (Accrued) Utility Revenue
Provision for Uncollectable Accounts
TotalCurrent (Add lines 17 -24less line 25)
Unamortized Debt Discount & Expense
Preliminary Survey & lnvestigation Charges
Deferred Rate Case Expenses
Other Deferred Charges
Total Assets (Add lines 13, 16 & 26 - 30)
3 338 867
$3 8 830 $1 867
108.1
108.2
108.3
110.1
110.2
115
2 1 116 166
$
$
$ 877 714 $50 701
123
125 $764 $
764 1
131
135
141
142
145
151
162
173
143
$204 $131
$004 $
$
143
330 190
$
$1 681 $
181
183
184
186
$
$
$ 1,124,159 $ 1,152,454 $ 28,295
3,478,697
$ 3,478,697
$ 2.550.282
$ 928,415
60,763
$ 60,763
59,073
92,755
5,928
5.520
$ 163,276
Rev 3/02 Page 7
Name: Capitol Water Corporation
BALANCE SHEET
For Year Ended December 31 2016
LIABILITIES & CAPITAL
DESCRIPTION
Common Stock
Preferred Stock
Miscellaneous Capital Accounts
Appropriated Retained Earnings
Unappropriated Retained Earnings
Reacquired Capital Stock
Proprietary Capital
Total Equity Capital (Add Lines 1-5+7 less line 6)
Bonds
Advances from Associated Companies
Other Long - Term Debt
Accounts Payable
Notes Payable
Accounts Payable - Associated Companies
Customer Deposits (Refundable)
Accrued Other Taxes Payable
Accrued lncome Taxes Payable
Accrued Taxes - Non-Utility
Accrued Debt, lnterest & Dividends Payable
Misc. Current & Accrued Liabilities
Unamortized Debt Premium
Advances for Construction
Other Deferred Liabilities
Accumulated lnvestment Tax Credits - Utility
Accum. lnvestment Tax Credits - Non-Utility
Operating Reserves
Contributions in Aid of Construction
Accum. Amort. of Contrib. in Aid of Const. **
Accumulated Deferred lncome Taxes
Total Liabilities (Add lines 9 - 29
LIAB & CAPITAL ( Add lines 8 & 30)
** Only if Commission Approved
Balance
Beginning
of Year
Balance
End of
Year
lncrease
or
Decrease
1 201-3
2 204-6
3 207-13
4 214
5 215
6 216
7 218
8
9 221-2
10 223
11 224
12 231
13 232
14 233
15 235
16 236.11
17 236.12
18 236.2
19 23740
20 241
21 251
22 252
23 253
24 255.1
25 255.2
26 261-5
27 271
28 272
29 281-3
30
31 TOTAL
ACCT #
$ 10 000
$200
8 570
$ 911 770
000
$785
27 908
11 280
14 106
21 389
$ 1,124,159
$
$
$
$
$
$
568
568
2
40 000
727
$
o$
$
$
$
$
$
$
$
882
572
10,000
29,200
899.1 38
$ 938,338
5.000
4,179
s 40.000
26,446
(1 8,1 65)
139,346
160,882
(143,572\
$ 214,116
$ 1,152,454
Rev 3/02 Page 8
Name: Capitol Water Corporation
1 Retained Earnings Balance @ Beginning of Year
2 Amount Added from Current Year lncome (From Pg 4, Line 32)
3 Other Credits to Account
4 Dividends Paid or Appropriated
5 Other Distributions of Retained Earnings
6 Retained Earnings Balance @ End of Year
CAPITAL STOCK DETAIL
7 Description (Class, Par Value etc.)
Common Stock
DETAIL OF LONG-TERM DEBT
STATEMENT OF RETAINED EARNINGS
For Year Ended December 31, 2016
No. Shares
Authorized
2s0
$ 872,570
1 18,458
(84,584)
(7,306)
$ 899,138
No. Shares
Outstand
lnterest
Paid
Dividends
Paid
lnterest
Accrued
84 584.00
8 Descri
Advances for Construction
Debentures
Note- R. Price
Note- B hiil
Note- B of A
lnterest
Rate
Year-end
Balance
100
N/A None
1Oo/o 5,000.00 500.00
9o/o 40,000.00
7.87o/o 0.00 0.00
7.25o/o 0.00 0.00
Rev 3/02 Page 9
Name: Capitol Water Corooration
SYSTEM ENGINEERING DATA
For Year Ended December 31 2016
1 Provide an updated system map if significant changes have been made to the system during the year
2 Water Supply Type of
Treatment:
(None, Chlorine
Pu ation or location
Well#1
Well#2 - i
Well#3
Well#4
Well#5 - redrilled in2002
Well#6
Well#7
Rated
Capacity
Total
Capacity
000's
Gal.
Fluoride
Filter etc.
Usable
Capacity
000's
Gal.
Annual
Production
Type of
Reservoir
(Elevated,Pres-
u
Pressurized Steel
Water
Supply
Source
(Well, Spring,
Construction
(Wood, Steel
Gal Surface Wt
Well
Well
Well
Well
Well
Well
Well
3 System Storage
Sto Des or Location
Well#1
Well#2
Well#3
Well#4
Well#5
Well#6
Well#7
(Duplicate form and attach if necessary. Asterisk facilities added this year.)
350 Phosohate
450 None
350 Phosphate
2000 Phosphate
1500 None
1 500 ASR
1 500 Phosphate
1 500
Rev 3/02 Page 10
Name: CapitolWaterCorporation
4 Pump information for ALL system pumps, including wells and boosters.
SYSTEM ENG!NEERING DATA
(continued)
For Year Ended December 31, 2016
Rated
Capacity
5
Designation or Location Horse
Power&of Pum
Well#1
Well#2- in
Well#3
Well#4
Well#5
Well#6
Well#7
** Submit pump curves unless previously provided or unavailable. Asterisk facilities added this year.
Attach additional sheets if inadequate space is available on this page.
lf Wells are metered:
What was the total amount pumped this year?
What was the total amount pumped during peak month?
What was the total amount pumped on the peak day?
Discharge
Pressure
Energy
Used
This Year
731,463,000
100 035 000
4,631,000
6 lf customers are metered, what was the total amount sold in peak month?N/A
7 Was your system designed to supply fire flows?
lf Yes: What is current system rating?
Yes
lncluded
8 How many times were meters read this year?
During which months?
How many additional customers could be served with no system improvements
except a service line and meter?
How many of those potential additions are vacant lots?
10 Are backbone plant additions anticipated during the coming year?
lf Yes, attach an explanation of projects and anticipated costs!
11 ln what year do you anticipate that the system capacity (supply, storage or distribution)
will have to be expanded?
Daily
Jan to Dec
I
Unknown
Unknown
No
PSI
30 350 70
25
100 350 70
200 2000 60
150 1 500 75
150 1 500 70
150 1 500 75
Rev 3/02 Page 1 1
Unknown
Name: Capitol Water Corporation
SYSTEM ENGINEERING DATA
(continued)
ForYear Ended December 31,2016
FEET OF MAINS
1 Pipe
Size
10"
2"
6"
8"
12"
314"
1"
1112
Metered:
Residential
Commercial
lndustrial
Flat Rate:
Residential
Commercial
lndustrial
ln Use
Beginning
Of Year
lnstalled
During
Year
Abandoned
During
Year
ln Use
End of
Year
Last
Year
600
9667
600
7 966
2 740
874
765
380
193
918
290
ll4 23 740
76 874
42 765
2 380
59 193
4 918
290
CUSTOMER STATISTIGS
Number of Customers Thousands of Gallons Sold
This
Year
Last
Year
This
Year
2
2A
28
2C
3
3A
3B
3C
1
0
0
244
261
21
174
2897
5
6
7
4 Private Fire Protection
Public Fire Protection
Street Sprinkling
Municipal, Other
8 Other Water Utilities
261
2438
0
0
21
174
2894 0 0
Rev 3/02
TOTALS (Add lines 2 through 8)
Page 12
CERTIFICATE
State of ldaho
Countv of
SS
WE, the unders ++
an
of
utility, on our oath do severally say that the foregoing report has been prepared under our direction,
from the original books, papers and records of said utility; that we have carefully examined same, and
declare the same to be a correct statement of the business and affairs of said utility for the period
covered by the report in respect to each and every matter and thing therin set forth, to the best of our
knowledge, information and belief.
(Chief Officer)
(Officer in Charge of Accounts)
Subscribed and Sworn to Before Me
4 n\1
PUBLIC
My Commission Expires
Rev 3/02 Page 13
gdUexcel/jnelson/anulrpts^/vtrannualrpt