GM’s Corner: A look at IVGID’s finances
December 20, 2017
Last week, the Incline Village General Improvement District's Board of Trustees reviewed IVGID's annual Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30.
While most everyone is familiar with the district's budget document, which authorizes the spending of money, the CAFR describes what was actually spent and the status of assets and liabilities at the end of the fiscal year.
All of the documents included in the CAFR comply with accounting requirements promulgated by the Government Accounting Standards Board (GASB), and are reviewed by an outside auditing firm.
The auditor verifies the proper design and execution of our transactions. Internal controls and protocols are tested. Financial amounts are tested along with how they are presented. We've met every standard that both the regulatory agencies and any potential bondholder would require of us.
The district's auditor, EideBailly, issued an unmodified opinion on the CAFR. An unqualified (i.e. unmodified/clean) opinion, which is the best audit report that can be issued, states that the financial statements are fairly presented in conformity with generally, accepted accounting principles.
The auditor also prepared a "Report on Compliance and Internal Control" in relation to the audit of the basic financial statements. The auditors reported no material weaknesses in our controls.
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What does the CAFR demonstrate regarding the overall financial condition of the district?
It demonstrates that IVGID continues to be the envy of public agencies across Nevada with our ever increasing net position, readily available cash, low debt ratio and no unfunded pension and medical liabilities.
Over the past five years:
Our 2017 expenses have increased almost entirely due to increased activity at our venues, yet remaining at an average of 2.5 percent per year.
Our utility revenues have increased to ensure adequate cash flow to not only fund annual operations, but to also fund future capital improvement needs especially the effluent pipeline project.
Our user fee revenues have been otherwise stable, while favorable weather conditions have made for two successful ski seasons in a row following a record low visitor count in 2015.
Our governmental revenues (property tax and combined taxes) are not currently subject to property tax litigation refunds and have shown a steady increase over the entire period.
Our bonded indebtedness has dropped from $1,829 to $952 per capita.
Our recreation fee cost to the property owners has remained flat over the entire period.
Since 2009, our cash position has remained stable while our net investment in capital assets has increased from $80.2 million to $110.5 million.
Our unrestricted cash of $29 million is nearly 330 percent greater than our total outstanding indebtedness of $8.6 million
Since 2008, our outstanding indebtedness has dropped from $27.2 million to $8.6 million.
Our outstanding indebtedness is only 1.1 percent of our statutory debt capacity.
Our ratio of debt service to total expenditures has dropped to 5.5 percent.
A significant non-utility bonded debt will be retired by 2018.
Despite this track record of exceptional financial performance, we refuse to rest on our laurels and we will continue to endeavor to provide quality service to all of our customers at the lowest cost possible.
In addition, we will continue to excel in financial and capital planning in the most transparent, inclusive manner possible.
If you would like to review the CAFR in more detail it is available on the Financial Transparency section of our website.
"GM's Corner" is a recurring column from IVGID General Manager Steve Pinkerton, who discusses issues and offers updates regarding various district matters. He may be reached for comment at firstname.lastname@example.org