The Harris Galveston Subsidence District conducts its financial business using the governmental fund system. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Harris-Galveston Subsidence District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the District are governmental funds. The District has no proprietary funds.
BUDGETS
The Harris Galveston Subsidence District is required to adopt an annual budget before the commencement of a new fiscal year, which begins on January 1st and ends on the following December 31st. The budget development schedule is generally a six-month process from June through November and includes the following steps: goal setting, formulation of section budgets, review of proposed budget by General Manager, Finance Committee review of proposed budget, final board review and adoption, monthly budget review and amendments (as necessary).
2024 Operating Budget
The 2024 budget supports three programmatic areas: General Operations, Water Conservation, and Science & Research. The General Fund, with estimated expenses of $4.80 million, is supported by revenues primarily generated through the assessment of permit and application fees. The District’s Permit Fee rate will stay the same at $26 per million gallons which was effective on January 1, 2023. The Water Conservation Program includes three primary efforts including the H2O Lab! school education program, the Water Conservation Grant Program, and the Water My Yard outdoor irrigation campaign supported by fees of $38.00 per sponsorship. The Science & Research program is supported by revenues generated primarily through the Disincentive Permit Fee with projects guided by the District’s Science and Research Strategic Plan. The District’s Disincentive Permit Fee rate will increase to $11.86 on January 1, 2024. To see the District Fee Schedule, go to page 7 (Table 4) of the 2024 HGSD Operating Budget.
Annual Audit and Financial Report
The Harris-Galveston Subsidence District is required by statute to conduct an independent annual audit to verify the financial condition of the District. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the District’s financial statements.