HomeMy WebLinkAboutBUDGET & FINANCE AGENDA 11-14-11Central
Sanitary District
REGULAR MEETING OF THE
CENTRAL CONTRA COSTA
SANITARY DISTRICT
BUDGET AND FINANCE COMMITTEE
Chair Nejedly
Member Hockett
Monday, November 14, 2011
3:00 p.m.
Executive Conference Room
5019 Imhoff Place
Martinez, California
INFORMATION FOR THE PUBLIC
ADDRESSING THE COMMITTEE ON AN ITEM ON THE AGENDA
BOARD OF DIRECTORS:
BARBARA D HOCKETT
President
JAMES NEIEDLY
President Pro Tenn
MICHAEL R AICGILL
MARIO AI HENESINI
DAVID R WILLIAMS
PHONE: (925) 228 -9500
FAX: (925) 676 -7211
x- mv.centralsan.org
Anyone wishing to address the Committee on an item listed on the agenda will be heard when the
Committee Chair calls for comments from the audience. The Chair may specify the number of minutes
each person will be permitted to speak based on the number of persons wishing to speak and the time
available. After the public has commented, the item is closed to further public comment and brought to the
Committee for discussion. There is no further comment permitted from the audience unless invited by the
Committee.
ADDRESSING THE COMMITTEE ON AN ITEM NOT ON THE AGENDA
In accordance with state law, the Committee is prohibited from discussing items not calendared on the
agenda. You may address the Committee on any items not listed on the agenda, and which are within their
jurisdiction, under PUBLIC COMMENTS. Matters brought up which are not on the agenda may be
referred to staff for action or calendared on a future agenda.
AGENDA REPORTS
Supporting materials on Committee agenda items are available for public review at the Reception Desk,
5019 Imhoff Place, Martinez. Reports or information relating to agenda items distributed within 72 hours
of the meeting to a majority of the Committee are also available for public inspection at the Reception
Desk. During the meeting. information and supporting materials are available in the Conference Room.
AMERICANS WITH DISABILITIES ACT
In accordance with the Americans With Disabilities Act and state law, it is the policy of the Central Contra
Costa Sanitary District to offer its public meetings in a manner that is readily accessible to everyone,
including those with disabilities. If you are disabled and require special accommodations to participate,
please contact the Secretary of the District at least 48 hours in advance of the meeting at (925) 229 -7303.
Budget and Finance Committee
November 14, 2011
Page 2
1. Call Meeting to Order
2. Public Comments
3. Old Business
*a. Review response to a question that arose during review of the expenditure
report regarding smog certifications performed by Future Ford of Concord
Staff Recommendation: Review staff's response and provide
direction if needed.
4. Risk Management
*a. Review Loss Control Report and discuss outstanding claims
Staff Recommendation: Review the report, discuss outstanding
claims and provide direction if needed.
*b. Review proposed revisions to the General Manager's claims - handling
authority
Staff Recommendation: Review proposed revisions and recommend
Board approval.
*5. Receive six -month update on installment payment plans
Staff Recommendation: Receive the update.
*6. Review draft Comprehensive Annual Financial Report (CAFR)
Staff Recommendation: Review and recommend Board approval.
7. Expenditures
a. Review Expenditures (Item 4.b. in Board Binder)
Staff Recommendation: Review and recommend Board approval.
8. Reports and Announcements
9. Suggestions for future agenda items
10. Adjournment
* Attachment
3.a.
Central Contra Costa Sanitary District
November 10, 2011
TO: BOARD BUDGET AND FINANCE COMMITTEE
FROM: RANDALL MUSGRAVES, DIRECTOR OF ADMINISTRATION /AMA
DEBBIE RATCLIFF, CONTROLLER
SUBJECT: October 31, 2011 COMMITTEE MEETING
There was one outstanding question from the last Board Budget and Finance
Committee meeting which required additional staff research. The question and answer
is provided below:
1. 187328 Future Ford of Concord — Why is the District using Future Ford of
Concord to provide smog testing?
The District used to use North Main Tow for smog testing, however the smog
mechanic left and they now sub - contract the service. The price increased to $85
per smog test. Staff asked the County who they use and they recommended
Future Ford of Concord. The cost of a smog test is $65.
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41-
Central Contra Costa Sanitary District
November 8, 2011
TO: Budget and Finance Committee
VIA: James Kelly, General ManagergyzA
FROM: Randall Musgraves, Director of Administration
Shari Deutsch, Safety & Risk Management Administrator Ap
SUBJECT: 1) Delegating Authority to General Manager to Deny Administrative
Claims
2) Increasing General Manager's Claims Settlement Authority
Introduction: At a recent Capital Projects Committee meeting staff was asked to
review the General Manager's authority for approving capital projects and
change orders and to return with recommendations for increasing those
amounts. While meeting to discuss this issue, staff also reviewed the General
Manager's authority regarding third party claims administration and settlement.
Since the General Manager's authority for the administration and settling of third
party claims against the District affects the Budget and Finance Committee, staff
is bringing these items forward for discussion now so that any committee
recommendations can be incorporated into the forthcoming resolution addressing
the General Manager's authority.
The first part of this memo discusses the current claims administration process
and recommends changes to the General Manager's authority in that area. The
second part of this memo discusses the General Manager's current settlement
authority and recommends changes accordingly. Finally, we recommend the
changes to the current language delineating the General Manager's authority for
handling third party claims.
CLAIMS ADMINISTRATION
Background: The District must act on administrative claims (third party claims
filed under Government Code section 910 et. seq.) within 45 days. Acting on a
claim may include accepting and paying the claim, negotiating a settlement for a
different amount than initially claimed, rejecting a claim as untimely or
insufficient, or denying the claim outright. If the Board takes action within that 45
days and the claimant is not satisfied with the outcome (usually a denial) the
claimant has six months from the date of that action to pursue further legal action
against the District. If the Board takes no action within the allotted 45 days, the
claim is deemed denied but the claimant will have 2 years in which to pursue
further legal action against the District.
The Board has delegated authority to the General Manager to accept and settle
administrative claims up to $25,000 with the provision that any claims settled
above $10,000 be reported to the Board.
In most situations, a meritorious claim can be adjusted and resolved within the
allotted 45 days but this is not always the case. In order to preserve the shorter
statute of limitations for filing further legal actions against the District (six months
vs. 2 years), District Counsel recommends either resolving or denying all
administrative claims by the 45th day.
Current Process: Upon receipt of a claim, staff initiates an investigation to
ascertain whether or not the claim has merit, whether or not the damages are
reasonable, and whether or not the District is responsible for the loss. If staff
determines that the claim should be paid and the damages claimed are within the
General Manager's limit of authority we can usually pay the claim and close the
file well before the 45 days has elapsed.
However, if a claim was found to be without merit, staff does not currently have
the authority to deny it. Staff prepares a position paper recommending denial of
the claim and the Board accepts or rejects staff's recommendation. There is
usually two weeks between preparation of the position paper and subsequent
Board action.
This effectively reduces staff's window of investigation and evaluation by 1/3 on
the type of claims that may warrant more than usual scrutiny. In some cases,
this window is even shorter. We once received a claim in mid -July. There were
no Board meetings in August but the first meeting in September was beyond the
45th day. In order to preserve the statute the Board had to take action by the end
of July. This left staff with less than one week to investigate and recommend
denial of the claim.
It is important to remember that denying an administrative claim does not
preclude further negotiation or resolution with the claimant. A formal denial starts
the clock on the six -month statute of limitations, but does not prevent the District
from reaching resolution with the claimant after the denial has been issued.
Proposed Changes to Process: We recommend that the Board delegate to the
General Manager the authority to reject claims as recommended by staff. This
will allow staff the greatest possible time to investigate and evaluate claims and
will also ensure that the statute of limitations is kept at six months, regardless of
the Board schedule.
Upon receipt of this delegated authority, we recommend that denied claims be
reported to the Budget & Finance Committee as part of staff's regular loss control
report. Currently all claims are reported to the Budget & Finance Committee as
they are received and active cases are reviewed at each committee meeting.
Once the General Manager is authorized to deny claims, any denials issued
would be reported at the next Budget & Finance Committee meeting.
CLAIMS SETTLEMENT AUTHORITY
The General Manager currently has authority to settle administrative claims up to
$25,000 and report any claims settlements above $10,000 to the Board via the
Budget and Finance Committee. However, staff currently reports all claims to the
Budget and Finance Committee upon receipt and reviews all open claims with
the Committee during its regular loss control report. As a result, the Committee
provides direction and feedback to staff on all third party claims, regardless of
amount.
Since staff will be recommending an increase in the General Manager's authority
to approve capital projects from $50,000 to $100,000, we recommend a
concurrent increase in the General Manager's authority to settle claims from
$25,000 to $50,000 and an increase in the reporting threshold from $10,000 to
$25,000. Because our current practice ensures that the Budget and Finance
Committee is advised of all claims and the Committee provides input on all
claims, implementation of these recommendations will not reduce the
Committee's involvement in the claims handling process.
Recommended Changes to General Manager's Authority:
1. Rename Section 6 from "Claims Settlement Authority" to "Claims Handling
Authority"
2. Add the following as paragraph A to Section 6:
The Board delegates to the General Manager the authority to act on its
behalf pursuant to Government Code sections 910, et seq. to reject,
return as insufficient, or return as untimely any claims against it, and to
provide any notices authorized under those statutes on behalf of the
District.
3. Make the current text of section 6 paragraph B.
4. Replace reporting threshold of $10,000 with $25,000 and replace claims
settlement authority of $25,000 to $50,000.
5
Central Contra Costa Sanitary District
November 10, 2011
TO: BUDGET AND FINANCE COMMITTEE
VIA: JAMES M. KELLY, GENERAL MANAGER -
ANN FARRELL, DEPUTY GENERAL MAN GER +�
JARRED MIYAMOTO- MILLS, ENV'L. SERVICES DIVISION MANAGER
w
FROM: EARLENE MILLIER, ENGINEERING ASSISTANT III A
SUBJECT: UPDATE ON INSTALLMENT PAYMENT OF CAPACITY FEES
Staff provides a periodic update to the Budget and Finance Committee on installment
payment arrangements for capacity fees. This memo provides the updated status for
each installment payment agreement:
Wizzbanqz Burgers in Danville — Connection fees were approximately $10,800. The
business owners made a down payment of $7,200, and regular monthly payments on a
one -year agreement since August 2010. The business owners paid off their capacity
fees ahead of schedule, in June 2011. The owners have said their business is doing
well and they are considering opening a second location.
Senro Sushi in San Ramon — Connection fees were approximately $31,800. The
business owners proposed a two year agreement for paying the fees. Because the
amount was substantial, staff asked for Board authorization to execute an agreement,
and the Board authorized the agreement in March, 2011. The business owners made a
substantial down payment and signed an installment payment agreement to make
monthly payments for two years. The owners have been making timely payments of
$1,200 per month.
2 Berrybrook Hollow, Orinda_(Residential) -- Staff discovered during a routine review of
District records that the capacity fees for this single family residence had not been paid
when the property was connected to the sanitary sewer. The property owner, Mr. Don
Horn, who was also the contractor for the project, was contacted and he offered to
make installment payments starting in October 2011 and ending in February, 2012.
Staff informed the Budget & Finance Committee of these arrangements on October 3,
2011. Mr. Horn's first payment was due on October 15, and he made the payment
before the due date.
Monsoon Masala in Pleasant Hill -- At a delinquency hearing on June 16, 2011, the
Board directed staff to negotiate a new installment payment plan for the remaining
Budget and Finance Committee
Page 2 of 2
November 10, 2011
capacity fees due, spreading the payments out over a 12 -year period, the equivalent of
a Capacity Use Agreement for the remaining fees. Monthly payments resumed under
the new payment plan in July 2011, and the business owners have made regular
monthly payments since then.
19 Cobblestone Court, San Ramon (Residential) -- When the City of San Ramon
requested comments on a variance application for the second living unit on this
property, staff discovered that the capacity fees had not been paid when the property
was connected to the sanitary sewer. The second living unit had been built without a
building permit, and the property owner was seeking to legalize the unit in response to
action from San Ramon Code Enforcement. Staff requested that payment of the
District's fees be made a condition of granting the variance and contacted the property
owner, Ms. Nancy Neto. The property owner agreed to an installment payment plan
that would conclude by June 2012 since that is when delinquencies would next be
considered by the Board. The first payment of $724.50 is due on November 15, 2011.
Staff continues to monitor receipt of payments on the above agreements closely and will
report to the Budget and Finance Committee again in May, 2012.
EM:sdh
� .61
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i
Central Contra Costa Sanitary District
5019 Imhoff Place, Martinez, CA 94553
Comprehensive
Annual Financial Report
CENTRAL CONTRA COSTA SANITARY DISTRICT
MARTINEZ, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2011
Prepared By:
Finance & Accounting Division
CENTRAL CONTRA COSTA SANITARY DISTRICT
Comprehensive Annual Financial Report
Table of Contents
For the Year Ended June 30, 2011
INTRODUCTORY SECTION:
Letter of Transmittal ................................................................ ............................... i
Boardof Directors ................................................................. ............................... vii
MissionStatement .................................... ............................... ...........................viii
OrganizationChart .................................................................. .............................ix
Mapof Service Area .............................................................. ............................... x
Certificate of Achievement ...................................................... ..............................A
FINANCIAL SECTION:
Independent Auditors' Report ................................................ ............................... 1
Management's Discussion and Analysis ................................ ...............................
3
Basic Financial Statements
LastNine Fiscal Years ........................................................ ............................S
Statementof Net Assets ............................................. ...............................
9
Statement of Revenues, Expenses and Changes in Net Assets .............
10
Statement of Cash Flows .......................................... ...............................
11
Notes to Financial Statements — The accompanying notes are an
Last Ten Fiscal Years ......................................................... ............................S
integral part of the basic financial statements ..... .............................12-33
Sewer Service Charge - List of Ten Largest Customers -
Supplementary Information
Last Nine Fiscal Years ... .................................................................................
Combining Schedule of Statement of Net Assets ..... ...............................
34
Combining Schedule of Statement of Revenues, Expenses and
LastTen Fiscal Years ......................................................... ............................S
Changes in Net Assets ........................................... ...............................
35
Schedule of Running Expenses - Comparison of Budget and Actual
Last Ten Fiscal Years ......................................................... ............................S
Expenses by Department ........................................ ...............................
36
Running Expense - Schedule of Supplemental Net Assets Analysis .......
37
STATISTICAL SECTION (Unaudited):
Changes in Net Assets and Statement of Net Assets -
LastNine Fiscal Years ........................................................ ............................S
-1
Revenue by Type - Last Ten Fiscal Years ............................. ............................S
-2
Operating Expenses by Type - Last Ten Fiscal Years ........... ............................S
-3
Major Revenue Base and Rates - Historical and Current Fees -
Last Ten Fiscal Years ......................................................... ............................S
-4
Sewer Service Charge - List of Ten Largest Customers -
Last Nine Fiscal Years ... .................................................................................
S -5
Assessed and Estimated Actual Valuation of Taxable Property -
LastTen Fiscal Years ......................................................... ............................S
-6
Property Tax and Sewer Service Charge Fees Levied and Collected -
Last Ten Fiscal Years ......................................................... ............................S
-6
Summary of Debt Service - Type, Debt Service Coverage, Debt Ratio -
Last Ten Fiscal Years ......................................................... ............................S -7
Demographic and Economic Data - Population Served -
Last Ten Calendar Years .................................................... ............................S -8
List of Ten Largest Employers in Contra Costa County -
Last Year and Nine Years Ago ........................................... ............................S -8
Demographic and Economic Statistics - Contra Costa County -
Last Ten Fiscal Years ......................................................... ............................S -9
Full -time Equivalent Employees by Department - Last Ten Fiscal Years ........S -10
Number of Retirees and Surviving Spouses - Last Ten Fiscal Years ..............S -10
Capital Asset and Operating Statistics - Last Ten Calendar or Fiscal Years ...S -11
Miscellaneous Statistics ........................................................ ...........................S -11
(THIS PAGE INTENTIONALLY LEFT BLANK)
Armi
Central Contra Costa Sanitary District
Introductory
Section
November 13, 2011
Central Contra Costa Sanitary District Ratepayers and
The Honorable Board of Directors,
Martinez, California:
State law requires that every general- purpose local government publish within six
months of the close of each fiscal year a complete set of audited financial statements.
This report is published to fulfill that requirement for the fiscal year ended June 30,
2011.
Management of Central Contra Costa Sanitary District assumes full responsibility for the
completeness and reliability of the information in these financial statements, based upon
a comprehensive system of internal controls that is established for this purpose.
Because the cost of internal control should not exceed anticipated benefits, the
objective is to provide reasonable, rather than absolute, assurance that the financial
statements are free of any material misstatements.
Cropper Accountancy Corporation has issued an unqualified ( "clean ") opinion on the
Central Contra Costa Sanitary District's financial statements for the year ended June
30, 2011. The independent auditor's report is located at the front of the financial section
of this report.
Management's Discussion and Analysis report (MD &A) immediately follows the
independent auditor's report and provides a narrative introduction, overview, and
analysis of the basic financial statements. The MD&A complements this letter of
transmittal and should be read in conjunction with it.
PROFILE OF THE GOVERNMENT
History and Services Provided
The District was established in 1946 under the Sanitary District Act of 1923 and is
located about 30 miles east of San Francisco. The District builds, operates and
maintains the facilities required to collect and process wastewater for approximately
322,000 residents of Danville, Lafayette, Martinez, Moraga, Orinda, Pleasant Hill, San
Ramon, Walnut Creek and some of the unincorporated communities within Central
Contra Costa County. The District also treats wastewater for 133,000 residents of the
Cities of Concord and Clayton under a 1974 contract with the City of Concord.
The District is committed to protecting the public health and preserving the environment
while minimizing facility and operating costs. The District has approximately 1,500
miles of sewer pipeline, ranging in size from 6 inches to 120 inches in diameter, and 17
sewage - pumping stations in the District's sewage collection system. The District is the
sole provider of wastewater service within the District limits (see map of service area).
Residents make up the largest segment of the District's customer base representing
approximately 80% of the Sewer Service Charge revenue. The District's treatment
capacity has grown from 4.5 million gallons per day (mgd) initiated in 1948 to 53.8 mgd
currently. Bonds, state grants, federal grants, and pay -as- you -go resources of the
District have financed expansions.
The District also provides an alternative source of water for irrigation by producing high
quality recycled water. Recycled water can safely be used on freeway landscaping,
street medians, golf courses, athletic fields, parks, playgrounds, schoolyards and multi-
family residential common areas.
In addition to its wastewater responsibility, the District also teamed with Mountain View
Sanitary District and other local governments to build and operate the first permanent
Household Hazardous Waste (HHW) Collection Facility in Contra Costa County. The
HHW Collection Facility is located adjacent to the District's wastewater treatment plant
and seeks to keep pollutants out of the sewer system, making this facility an important
part of our Pollution Prevention Program.
Organization, Accounting and Budgetary Controls
A 5- member Board of Directors governs the District. Board members are elected on a
non - partisan basis and serve a four -year term. The Board appoints the General
Manager, who in accordance with policies established by the Board of Directors,
manages District affairs. The District employs 245 regular employees organized in four
departments led by Department Directors responsible for their budgets and expenses.
The four departments are: Administrative, Engineering, Operations, and Collection
Systems.
The District by law uses an enterprise fund to account for the operations of the District,
which is run in a manner similar to private industry. The District currently has one
enterprise fund which is comprised of four internal sub - funds:
• Running Expense - accounts for the general operations of the District.
Substantially all operating revenues and expenses are accounted for in this fund
(also referred to as Operations & Maintenance or O &M).
• Sewer Construction - accounts for non - operating revenues that are to be used for
acquisition or construction of plant, property, and equipment (also referred to as the
Capital Fund).
• Self- Insurance - accounts for interest earnings on cash balances in this sub -fund
and cash allocations from other funds, as well as costs of insurance premiums and
claims not covered by the District's insurance policies.
Debt Service — accounts for activity associated with the payment of the District's
long term bonds and loans.
Each year, the Board adopts the following four budgets: Operations and Maintenance,
Capital Improvement and Sewer Construction, Self- Insurance, and Debt - Service. The
Board Finance Committee reviews disbursements prior to each regular Board meeting,
and disbursements are then approved by the full Board. Monthly financial statements
are issued to management and the Board. A detailed mid -year and annual budget
analysis are prepared and presented to the Board. District management is accountable
for variances and adhering to budget constraints. The District also has several
documented financial policies that are reviewed and updated as appropriate.
ASSESSING THE DISTRICT'S ECONOMIC CONDITION
Local Economy and Outlook
According to the Legislative Analyst's Office (LAO), the current economic situation and
outlook for California in the near future are generally similar to the nation as a whole.
The current consensus is that the state and national economies will continue to recover
slowly and sluggishly in 2012 and in the coming years. The slow recovery according to
the LAO results from a combination of excess inventories of residential and commercial
real estate, severely depressed economic confidence for both individuals and
businesses, and for many consumers, a considerably weakened financial capacity to
spend and invest. Consumers are attempting to restore their personal finances amidst
the weak labor markets and diminished housing wealth. Credit remains very tight,
further constraining the amount of economic growth. While businesses have been
spending more recently to address equipment, software and other needs they deferred
during the recession, they remain reluctant to hire. The construction industry remains
flat, with few immediate prospects due to the massive fall in residential and commercial
real estate markets. The Federal Reserve continues to take actions to stimulate the
economy, but with interest rates already at historically low levels, its ability to achieve
much is limited. Employment, personal income, output, and housing permit growth,
among other measures are projected to be weak by historical standards during the
recovery and inflation is expected to be low.
The downturn in the housing sector and new construction have decreased the District's
number of new sewer service connections and developer fee revenues. The District's
primary operating revenues are sewer service charge from District customers and the
City of Concord. The District also receives a portion of the one - percent property tax
levied by the Contra Costa County. The District is fortunate to participate in the
California's alternative method of apportionment called the Teeter Plan. Under the
Teeter plan the County advances the full amount of property tax and other levies to the
District based on the tax levy rather than the actual tax collections by the County. The
County assumes the risk of delinquencies and in turn retains the penalties and accrued
interest.
The District has an excellent reputation in all areas of public service, which include
finance, collection, treatment, training, safety, technology, capital projects, construction
and customer service. The Central Contra Costa Sanitary District has balanced
revenue sources, adequate reserves, and a moderate debt obligation. CCCSD reviews
its rate and other charges annually. The District can increase its sewer service charge
rates when needed to make up revenue shortfalls by providing public notice to all
customers, holding a Public Hearing, and obtaining approval by the Board of Directors.
The District is also able to obtain bond financing, as needed, due to the District's AAA
bond rating. The District anticipates that it will continue to meet its mission and goals,
continue to provide excellent customer service and reasonable rates to its customers,
and meet compliance requirements given the current economic conditions.
Long Term Financial Planning
District management analyzes and updates their strategic plan annually, with the four
main goals being: providing exceptional customer service, maintaining full regulatory
compliance, maintaining responsible rates, and continuing to be a high performance
organization. Strategies to achieve each of the goals are developed, as well as metrics
to evaluate success. The District performs a 10 -year long -term cash flow forecast each
year shortly before the budget process begins. The main economic factors considered
in long range forecasting are: the impact of state legislation and mandates, regulatory
compliance, GASB requirements, negotiated salary increases and employee benefits
including significant increases in retirement and health care costs, energy costs and
interpreting the energy market, housing growth, and infrastructure renewal and
replacement needs. The District has a significant amount of unfunded actuarial liability
for both pension and other post employment costs (OPEB) and various options for
managing these liabilities are explored in the financial planning process.
Relevant Financial Policies
Investment Policy: The District's investment policies for District assets and GASB 45
Trust are reviewed and approved annually by the Board of Directors in accordance with
District investment policy. Section 53646 of the California Government Code governs
our investment practices, and is reviewed annually by staff, legal counsel and the
Board. No required changes were necessary. The Board receives monthly financial
statements that include District investment performance. Since 2008, the GASB 45
Trust investments are in a moderate investment strategy fund. The Board Budget and
Finance Committee review GASB 45 Trust monthly financial statements to monitor the
District's investment strategy in the current volatile economy.
Internal Audit Program: In addition to the annual external independent audit, the District
contracted with an additional auditing firm to perform an internal audit. The purpose of
this audit is to test internal controls and to receive recommendations to improve our
operations. This year the Household Hazardous Waste (HHW) operation and billing
mechanisms was reviewed. A recommendation was made to stop collecting cash from
our small business program customers to strengthen cash receipt internal controls.
iv
Major Initiatives
The District's vision is to be a high - performance organization that provides exceptional
customer service and full regulatory compliance at responsible rates. Full regulatory
compliance is provided through exceptional operation of our collection system and
treatment facilities, as well as through continued investment in our infrastructure. Our
current capital plan has an emphasis on renovation, particularly in the collection system,
in order to improve service, and fix deteriorating pipes and pumping stations before they
can contribute to a sewer system overflow. Both at the state and federal level,
regulations addressing sewer system overflows and public notification have become
increasingly stringent over the last several years. Collection system operations will be
enhanced by the construction of a new administration /crew /warehouse building, which
is designed to be LEED certified and will incorporate many green design features.
LEED represents "Leadership in Energy and Environmental Design," which is
administered by the U.S. Green Building Council. The former facilities had reached an
age and condition where significant rehabilitation, upgrading, and replacements were
needed. Furthermore, the collection systems operations staff had increased to meet
District growth and increasing regulatory demands and additional space was needed. , It
was determined that replacing several antiquated buildings on the existing site with a
new state -of -the art facility was the best long term solution. The District has sold bonds
to finance building the new facility which is scheduled to be completed in late 2011.
Our capital plan is also addressing treatment plant reliability through design and
construction of three recently completed projects. The Standby Power Facility
Improvements project will provide new engine generators to ensure that adequate
power is available to run the plant in the event of a utility power outage. A second
project, the Wet - Weather Bypass Improvement project, will ensure that extreme wet
weather flows that overwhelm the capacity of the plant outfall and holding ponds can be
discharged to Walnut Creek. A third project, the Solids Handling Improvements project,
will ensure that sludge can be hauled to proper disposal in the event of a failure of our
incineration system. These projects are supplemented by a number of treatment plant
renovation projects to replace aging piping and other plant infrastructure.
The District has received Platinum and Gold awards from the National Association of
Clean Water Agencies (NACWA) for thirteen straight years in recognition of 100 percent
compliance with our National Pollutant Discharge Elimination System (NPDES) permit.
It has also reduced the number of sanitary sewer overflows by more than 68% in the
past 8 years by improved sewer cleaning and the sewer rehabilitation program.
AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association of the United States and Canada
(GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to
the Central Contra Costa Sanitary District for its comprehensive annual financial report
for the fiscal year ended June 30, 2010. This was the eleventh consecutive year that the
District has achieved this prestigious award. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our
current comprehensive annual financial report continues to meet the program's
requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
This report could not have been accomplished without the dedication and commitment
provided by District staff. I would like to express my appreciation to the following
employees who assisted in its preparation:
• The Finance and Accounting staff who compiled the information contained in this
document with a special thanks to Thea Vassallo, Accountant, and Colette Curtis -
Brown, Finance Administrator.
• The Reproduction and Graphics Team who creatively and professionally prepared
this finished document.
• Engineering and Operations staff who provided much of the statistical information
included in this document.
• The District's Board of Directors and Management Team for their support in
preparing this document as well as their day -to -day support in conducting the
financial operations of the District in a prudent and responsible manner.
Respectfully submitted,
Deborah Ratcliff
Controller
Vi
CENTRAL CONTRA COSTA SANITARY DISTRICT
BOARD OF DIRECTORS
June 30, 2011
Barbara D. Hockett ............ ............................... President
James A. Nejedly ............................... President Pro -Tem
Michael R. McGill ....................... .........................Member
Mario M. Menesini ..................... .........................Member
David R. Williams ....................... .........................Member
Vii
0021 -10/08
11 Central Contra Costa Sanitary District
OUR MISSION
To protect the public health and the
environment by:
• Collecting and treating wastewater
• Recycling high quality water
• Promoting pollution prevention
It OUR 'VISION
Be a high performance organization
that provides exceptional customer
service and full regulatory compliance
at responsible rates.
OUR VALUES
We will achieve our goals by valuing:
• Each other
• Ethics and integrity
• A healthy and safe environment
• Community relationships
• The meeting of commitments
• All aspects of diversity
viii
CENTRAL CONTRA COSTA SANITARY DISTRICT
Organization Chart - Composite
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Central Contra Costa
Sanitary District, California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2010
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
v - r
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STATES
A"
CkVAM ! a President
Executive Director
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(THIS PAGE INTENTIONALLY LEFT BLANK)
W1
Central Contra Costa Sanitary District
Financial
Section
CERTIFIED PUBLIC ACCOUNTANTS
office location n7aAing ad rase
2700 Ygnacio Valley Rd, Ste 230 2977 Ygnacio Valley Rd, PMB 460 Wln✓W.ciopperaccountancycon7
Walnut Creek, CA 94598 Walnut Creek, CA 94598
(925) 932 -3860 tel
(925) 476 -9930 efax
INDEPENDENT AUDITORS' REPORT
Board of Directors
Central Contra Costa Sanitary District
Martinez, California
We have audited the accompanying financial statements of the Central Contra Costa Sanitary District as of
and for the year ended June 30, 2011, as listed in the table of contents. These financial statements are the
responsibility of the District's management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audits in accordance with auditing standards generally accepted in the United States of
America and the State Controller's Audit Requirements for California Special -Districts. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Central Contra Costa Sanitary District as of June 30, 2011, and the changes in
financial position and cash flows thereof for the year then ended, in conformity with accounting principles
generally accepted in the United States of America, as well as accounting systems prescribed by the
California State Controller's office for Special Districts.
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis and budgetary comparison information be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is required by
the Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, or historical
context. We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which consisted of
inquiries of management's responses to our responses to our inquiries, the basic financial statements, and
other knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide assurance.
professional. personalize8. service.
`1
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise Central Contra Costa Sanitary District's financial statements as a whole. The introductory
section, Management's Discussion and Analysis, budgetary comparison information, supplementary
information on pages 34 — 37, and statistical section are presented for purposes of additional analysis and
are not a required part of the financial statements. Management's Discussion and Analysis and the
budgetary comparison information are the responsibility of management and were derived from and relate
directly to the underlying accounting and other records used to prepare the financial statements. The
information has been subjected to the auditing procedures applied in the audit of the financial statements
and certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the information is fairly stated in all material
respects in relation to the financial statements as a whole.
Walnut Creek, CA
September 30, 2011
2
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CROPPER ACCOUNTANCY CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
This section of the District's annual financial report presents an analysis of the District's financial
performance dining the fiscal year ended June 30, 2011. This information is presented in conjunction
with the audited financial statements, which follow this report.
FINANCIAL HIGHLIGHTS
The District's 2010 -11 financial highlights are listed below. These results are discussed in more detail
later in the report.
• The District's total ending net assets increased by $1.3 million or 0.22% in 2010 -11 when
compared to fiscal year 2009 -10; when comparing 2010 -11 to 2008 -09, net assets have increased
by $11.1 million or 1.82 %. This is mainly due to capital project asset additions.
* Total revenues in 2010 -11 increased by $0.2 million or 0.33% when compared to 2009 -10; when
comparing 2010 -11 to 2008 -09, total revenue has increased by $5.0 million or 7.26 %. Although
there was no Sewer Sei vice Charge (SSC) rate increase in 2009 -10 and 2010 -11, a larger portion
of the internal SSG allocation was shifted from Capital Contributions to Operating Revenue.
• Total 2010 -11 expenses increased by $2.0 million or 2.55% compared to 2009 -10; when
comparing 2010 -11 to 2008 -09, total expenses increased by $2.6 million or 3.28%. This is
mainly due to higher cost of labor and benefits.
• Capital Contributions were significantly lower in 2010 -11 compared to 2009 -10 and 2008 -09.
Capital Contributions decreased by $6.6 million or - 42.29% comparing 2010 -11 to 2009 -10.
When comparing 2010 -11 to 2008 -09, Capital Contributions decreased by $11.1 million or
- 55.10010. This is mainly due to the volatile housing market that resulted in lower connection fees
along with a smaller SSC revenue allocation to Capital Customer Contributions.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report includes the management's discussion and analysis report, the independent auditor's
report and the basic financial statements of the District. The financial statements also include notes that
explain information in the financial statements in more detail.
REQUIRED FINANCIAL STATEMENTS
The Financial Statements of the District report information utilizing methods similar to those used by
private sector companies. These statements offer short and long -term financial information about its
activities.
3
• Statement of Net .Assets — reports the District's current financial resources (short-term
spendable resources) with capital assets and long -term obligations
• Statement of Revenues, Expenses and Changes in Net Assets — reports the District's operating
and non- operating revenues by major source along with operating and non- operating expenses
and capital contributions
• Statement of Cash Flaws — reports the District's cash flows from operating activities, non -
capital financing activities, capital and related financing activities, and investing activities
STATEMENT OF NET ASSETS
The following table shows the condensed statement of net assets of the Central Contra Costa Sanitary
District for the past three years:
Condensed Statement of
Net Assets Fiscal Year Fiscal Year Fiscal Year
2010 -2011 2009 -2010 2008 -2009
Current Assets
$ 80,407,120
$ 77,968,736
$ 73,083,764
Capital Assets
593,461,791
586,785,155
578,889,989
Other Non - current Assets
12,456,011
27,196,507
5,361,834
Total Assets
686,324,922
691,950,398
657,335,587
Current Liabilities
10,682,746
11,255,377
15,098,030
Non- Current Liabilities
52,844,305
59,243,809
30,557,514
Total Liabilities
63,527,051
70,499,186
45,655,544
Invested in Capital Assets,
Net of Related Debt
541,613,208
531,324,187
552,165,498
Restricted - Debt Service
4,612,103
4,565,970
3,163,956
Unrestricted
76,572,560
85,561,055
56,350,589
Total Net Assets
$ 622,797,871
$ 621,451,212
$ 611,680,043
The total net assets of tine District increased from $611.7 million in 2008 -09 to $621.5 million in 2009-
10 and to $622.8 million in 2010 -11. The increase in net assets over the 3 -year period totals $11.1
million and is the result of both net income and capital contributions; $9.8 million in 2009 -10 and $1.3
million in 2010 -11 (shown in the next table).
By far the largest portion of the District's net assets (86.9% percent) reflects its investment in capital
assets (e.g. land, buildings, machinery, equipment, intangible assets, and sewer line infrastructure), less
any related debt used to acquire those assets that is still outstanding. The District uses these capital
assets to provide services to its ratepayers; consequently, these assets are not available for future
spending. Although the District's investment in its capital assets is reported net of debt, it should be
noted that the funds needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities. There is currently $4.6 million restricted
for debt service and is higher than in 2008 -09 due to the District refinancing current debt in addition to
raising $30 million in new bond proceeds in 2009 -10. The remaining balance of $76.6 million in
unrestricted net assets may be used to meet the District's ongoing obligations to its ratepayers and
creditors. These unrestricted net assets may also be used for payment of long -term unfunded liabilities.
4
REVIEW OF REVENUES EXPENSES AND CHANGES IN NET ASSETS
The table below shows the condensed statement of revenues, expenses, and changes in net assets for the
Central Contra Costa Sanitary District for the past 3 years:
Condensed Statement of Revenues,
Expenses, and Changes in Net Assets Fiscal Year Fiscal Year Fiscal Year
2010 -2011 2009 -2010 2008 -2009
Sewer Service Charges SSC
$ 58,320,822
$ 57,357,188
$ 51,843,311
Other Service Charges and Miscellaneous
1,575,738
1,474,898
1,540,833
Total Operating Revenue
59,896,560
58,832,086
53,384,144
Prope Tax
12,213,624
12,260,123
12,539,375
Permit & Inspection Fees
895,825
776,348
1,093,756
Interest and All Other
673,990
1,568,235
1,672,618
Total Non-Operating Revenues
13,783,439
14,604,706
15,305,749
Total Revenues
73,679,999
73,436,792
68,689,893
Total Labor and Benefits
41,705,131
39,986,763
39,440,034
Chemicals & Utilities
5,664,360
6,268,343
7,414,467
Repairs and Maintenance
2,972,395
2,868,675
3,057,540
Professional, Legal and Outside Services
2,425,612
2,129,552
2,832,001
Materials & Supplies
1,944,767
1,705,649
1,954,288
Hauling and Disposal
944,394
939,960
880,589
Self - Insurance Expense
1,003,115
746,612
958,906
All Other
1,575,905
1,223,191
1,437,429
Depreciation Expense
20,580,061
20,969,429
19,417,941
Total Operating Expenses
78,815,740
76,838,174
77,393,195
Non-Operating Expense - Interest Expense
2,585,112
2,539,383
1,421,686
Total Expenses
81,400,852
79,377,557
78,814,881
Income Before Capital Contributions
7,720,853
5,940,765
10,124,988
Customer Contributions SSC
5,018,092
6,793,040
13,938,421
Contributed Sewer Lines
533,616
1,840,259
1 ' 231,022
Capital Contributions - Connection Fees
3,515,804
7 078 635
5,025,4014
Total Capital Contributions
9,067,512
15,711,934
20,194,936
Change in Net Assets
1,346,659
9,771,169
10,069,948
Beginning Net Assets
621,451,212
611,680,043
601,610,095
Ending Net Assets
$ 622,797,871
$ 621,451,212
$ 611,680,043
In 2010 -11, operating revenues increased by $1.1 million or 1.81 %; however, non- operating revenue
decreased by $0.8 million or -5.62% when comparing 2010 -11 to 2009 -10. The change in total revenue
resulted in a small increase of $0.2 million or .33% when comparing 2010 -11 to 2009 -10. Comparing
2010 -11 to 2008 -09, total revenue has increased by $5.0 million or 7.26°/x, mainly due to the internal
SSC allocation. There was no SSC rate increase in 2010 -11 and 2009 -10; each year a portion of SSC
revenue is shifted from Capital Contributions to Operating Revenue to cover Operating Expenses.
Property Tax revenue has basically remained flat for the 3 -year period due to small growth to the tax
base, in spite of the sub prime mortgage crisis and recession. Permit and inspection fees have decreased
in the 3 -year period reflecting the slower housing market. Interest and all other revenue continue to drop,
mainly due to lower investment rates on District investments.
5
In 2010 -11, total expenses increased by $2.0 mullion or 2.55% compared to 2009 -10. Comparing 2010-
11 to 2008 -09, total expenses were $2.6 million or 3.28% higher. Increases are mainly due to higher
labor and benefit costs offset by planned cost savings and lower chemical and utility costs. Labor costs
increased due to cost -of- living adjustments, merit increases, filling of vacant positions, and increased
employee benefit costs. Depreciation expense increased due to new capital additions. Non- Operating
Expense is mainly driven by debt service interest expense. Total income before capital contributions
went from -$10.1 million in 2008 -09 to -$6.0 million im 2009 -10 and then increased to $ -7.7 million in
2010 -11.
Capital contributions in 2010 -11 were $9.1 mullion compared to $15.7 million in 2009 -10 and $20.2
million in 2008 -09. This was mainly due to less contributed sewer lines and connection fees due to the
construction and housing slowdown, except for one large complex connection that was delayed but then
paid early in 2009 -10. The total change in net assets decreased by $8.7 million or - 86.63% when
comparing 2010 -11 to 2008 -09.
CAPITAL ASSETS
Capital assets include the District's entire major infrastructure including wastewater treatment facilities,
sewers, land, buildings, pumping stations, vehicles, intangible assets and furniture and equipment
exceeding our capitalization policy limit of $5,000, net of depreciation. As of June 30, 2011, the
District's investment in capital assets totaled $593.5 million, which is an increase of $6.7 million or
1.14% over the capital asset balance of $586.8 million at June 30, 2010. Capital Assets increased by
$14.6 million or 2.52% comparing 2010 -11 to 2008 -09. A comparison of the District's capital assets
over the past 3 fiscal years is presented below:
Capital Assets
Fiscal Year Fiscal Year Fiscal Year
2010 -2011 2009 -2010 2008 -2009
Land
$ 17,114,720
$ 17,114,720
$ 17,114,720
Sewage Collection System
290,317,724
286,351,576
273,333,617
Contributed Sewer Lines
149,110,351
148,580,734
146,757,520
Outfall Sewers
8,518,443
8,518,443
8,518,443
Sewage Treatment Plant
287,537,513
275,413,411
268,399,708
Recycled Water Infrastructure
12,300,131
12,281,480
11,936,662
Pumping Stations
54,412,730
53,750,940
52,404,387
Buildings
31,317,466
21,206,981
19,997,044
Intangible Assets
2,058,921
1,806,272
1,521,424
Furniture & Equipment
13,243,330
13,756,662
14,523,054
Motor Vehicles
6,038,527
5,759,209
5,983,539
Constriction In Progress
22,632,142
26,735,297
24,645,390
Subtotal
894,601,998
871,275,725
845,135,508
Less Accumulated Depreciation
301,140,207
284,490,570
266,245,519
Total Capital Assets net ofdepreciation)
$ 593,461,791
$ 586,785,155
$ 578,889,989
G
The major reasons for the increase in capital assets, net of depreciation, of $6.7 million from 2009-10 to
2010 -11 and $14.6 million from 2008-09 to 2010 -11, are as follows:
• Treatment plant infrastructure renovations, upgrades, equipment, and improvements 'increased by
$12.1 million comparing 2010-11 to 2009 -10 and $19.1 million comparing 2010-11 to 2008-09.
• Buildings increased by $10.1 million comparing 2010-11 to 2009-10 and $11.3 million
comparing 2010-11 to 2008-09. This mainly reflects the Walnut Creek Collection System
Operations new building construction (90% of the cost), along with improvements to the
Household Hazardous Waste Facility and other smaller structures.
Sewer pipe ongoing renovations, pumping station improvements, and contributed sewer lines
increased by $5.2 million comparing 2010-11 to 2009 -10 and $21.3 million comparing 2010 -11
to 2008-09.
• All other asset categories, including construction in progress, decreased by $4.1 million
comparing 2010-11 to 2009-10 and $2.3 million comparing 2010-11 to 2008-09.
• Capital Asset increases are offset by an increased subtraction of accumulated depreciation of
$16.6 million comparing 2010-11 to 2009-10 and $34.9 million comparing 2010-11 to 2008-09
due to our increasing capital asset investment and its associated depreciation expense.
See Note 4 in the audited financial statements.
The District has the following outstanding debt as of June 30, 2011:
Revenue Bonds
Water Reclamation Loan
Total
$ 50,665,000
1,183,583
$ 51,848,583
See Note 6 in the audited financial statements.
ECONOMIC AND OTHER FACTORS
The Federal and State of California economies have failed to recover fully from the 2008 recession. The
housing market is still volatile, which impacts user fees. Changes in the state budget have a significant
impact on the District. Federal and State economic challenges will continue into the future and will
have a trickle-down effect on local governments. Some potential impacts may be:
• Continuation of the slow recovery and associated impacts
• Employee Memorandum of Understanding contract negotiations; current contracts end as of
April 17, 2012
• Increased cost of employee benefits, mainly pension costs and healthcare
• Current and future legislation impacting public employee pensions
• Other Post- Employment benefit required contributions based on actuarial analyses using
lower interest rates
• Possibility of continued reduced new connections and connection fees
• Regulatory requirements becoming more stringent, causing the District to spend more on
compliance, both for operations and maintenance costs and capital projects
• Continued low interest rates negatively impact interest earnings
In addition to making efforts to reduce spending and improve process efficiencies, the District has the
ability to raise the Sewer Service Charge to meet our long -term commitments. The District has a
Standard and Poors AAA rating, and can obtain bond financing if necessary.
FINANCIAL CONTACT
The financial report is designed to provide our customers and creditors with a general overview of the
District's finances and to demonstrate the District's accountability for the money it receives. If you
have questions about this report or need additional financial information, contact: Controller, Central
Contra Costa Sanitary District, 5419 Imhoff Place, Martinez, CA 94553.
N
FINANCIAL STATEMENTS
CENTRAL CONTRA COSTA SANITARY DISTRICT
Statement of Net Assets
June 30, 2011
2011
ASSETS
Current Assets
Cash and cash equivalents $ 48,081,743
Short term investments 14,992,660
Accounts receivable, net 13,746,665
Interest receivable 61,841
Parts and supplies 1,842,468
Prepaid expenses 1,681,743
Total Current Assets 80,407,120
Noncurrent Assets
4,519,541
Restricted cash and equivalents
3,440,592
Restricted investments
5,318,908
Land, property, plant and equipment, net
570,829,649
Construction in progress
22,632,142
Contractual and Alhambra Valley assessment districts receivable
2,425,078
OPEB asset (obligation)
916,736
Revenue bond issuance costs, net
354,697
Total Noncurrent Assets
605,917,802
Total Assets
686,324,922
LIABIL=S
Current Liabilities
Accounts payable and accrued expenses
4,519,541
Interest payable
800,397
Current portion of refunding revenue bonds
3,465,000
Current portion of water reclamation loan contract
156,345
Current portion of accrued compensated absences
515,000
Liability for uninsured claims
1,000,000
Refundable deposits
226,463
Total Current Liabilities
10,682,746
Noncurrent Liabilities
Revenue bonds, net of current portion 47,200,000
Accrued compensated absences, net of current portion 4,617,067
Water reclamation loan contract, net of current portion 1,027,238
Total Noncurrent Liabilities 52,844,305
Total Liabilities 63,527,051
NET ASSETS
Invested in capital assets, net of related debt 541,613,208
Restricted for debt service 4,612,103
Unrestricted 76,572,560
Total Net Assets $ 622,797,871
The accompanying notes are an integral part of the financial statements
9
CENTRAL CONTRA COSTA SANITARY DISTRICT
Statement of Revenues, Expenses, and Changes in Net Assets
Year Ended .Tune 30, 2011
2011
OPERATING REVENUE
Sewer service charges (SSC) S 49,095,870
Service charges - City of Concord 9,224,952
Other service charges 913,017
Miscellaneous charges 662,721
Total operating revenue 59,896,560
OPERATING EXPENSES
Sewage collection and pumping stations 11,468,189
Sewage treatment 21,360,065
Engineering 6,855,745
Administrative and general 18,551,680
Depreciation 20,580,061
Total operating expenses 78,815,740
OPERATING LOSS (18,919,180)
NON - OPERATING REVENUES (EXPENSES)
Taxes
12,213,624
Pennit and inspection fees
895,825
Interest earnings
673,990
Interest expense
(2,061,903)
Allowance for doubtful accounts
-
Other income (expense)
(523,209)
Total non- operating revenues (expenses)
11,198,327
Income before contributions and transfers (7,720,853)
City of Concord contributions to capital costs 3,216,190
Customer contributions to capital cost (SSC) 1,801,902
Contributed sewer lines 533,616
Capital contributions - connection fees 3,515,804
CHANGE IN NET ASSETS
Total Net Assets - Begmnmg
Total Net Assets - Ending
1,346,659
621,451,212
S 622,797,871
The accompanying notes are an integral part of the financial statements
10
CENTRAL CONTRA COSTA SANITARY DISTRICT
Statement of Cash Flaws
Year Ended June 30, 2011
The accompanying notes arc an integral part of the financial statements
11
2011
Cash Flows From Operating Activities:
Receipts from customers and users
$ 60,640,501
Payments to suppliers
(107,076,188)
Payments to employees and related benefits
45,076,530
Net cash used in operating activities
(1,359,157)
Cash Flows From Noncapital Financing Activities;
Receipt of taxes
12,213,624
hispection(pemnit fees and other non - operating income
372,615
Interest paid on reimbursements payable
-
Net cash provided by non capital and related financing activities
12,586,239
Cash Flows From Capital And Related Financing Activities:
Capital contributions
5,551,708
Connection fees
3,515,804
Acquisition and construction of capital assets
(28,417,102)
Proceeds fiom bond issuance
-
Principal paid on bonds
(3,592,680)
Interest paid on bonds
(2,110,106)
Net cash provided by (used in) capital and related financing activities
(25,052,376)
Cash Flows From Investing Activities
Purchases of short term investments
(3,492,320)
Interest received
704,524
Net cash provided by (used in) investing activities
(2,787,796)
Net increase (decrease) in dash and cash equivalents
(16,613,090)
Cash and cash equivalents, July 1
68,135,425
Cash and Cash equivalents, June 30
$ 51,522,335
Reconciliation of operating loss to net cash provided
(used) by operating activities
Operating gain (loss)
(18,919,180)
Adjustments to reconcile operating income to net cash used
in operating activities;
Depreciation expense
20,580,061
Net book value on capital assets retired
1,160,405
Allowance for doubtful accounts
-
(Increase) decrease in:
Accounts receivable
743,941
Parts and supplies
(109,156)
Prepaid expenses
(586,946)
Increase (decrease) in:
Accounts payable and accrued expenses
(458,666)
Refundable deposits
(17,222)
Liability for uninsured claims
-
OPEB obligation
(3,159,777)
Accrued compensated absences
(592,617)
Net cash provided by (used in) operating activities
$ (1,359,157)
Noncash investing, capital, and financing activities
Contributions of capital assets
$ 533,616
End of Period:
Unrestricted cash and equivalents
$ 48,081,743
Restricted cash and equivalents
3,440,592
$ 51,522,335
The accompanying notes arc an integral part of the financial statements
11
NDTES TO THE FINANCIAL STATEMENTS
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 30, 2011
1. DESCRIPTION OF DISTRICT AND SUMV IARY OF SIGNIFICANT ACCOUNTING
POLICIES
Reporting? Entity
The Central Contra Costa Sanitary District, a special district and a public entity established under the
Sanitary District Act of 1923, provides sewer service for the incorporated and unincorporated areas
under its jurisdiction. A Board of Directors comprised of five elected members governs the District.
As required by accounting principles generally accepted in the United States of America, these basic
financial statements present the financial statements of Central Contra Costa Sanitary District and its
component unit. The component unit discussed in the following paragraph is blended in the
District's reporting entity because of the significance of its operational or financial relationship with
the District_
Blended Component Emit — Component units are legally separate organizations for which the District
is financially accountable. Component units may also include organizations that are fiscally
dependent on the District, in that the District approves their budget, the issuance of their debt or the
levying of their taxes. In addition, component units are other legally separate organizations for
which the District is not financially accountable but the nature and significance of the organization's
relationship with the District is such that exclusion would cause the District's financial statements to
be misleading or incomplete. For financial reporting purposes, the component unit discussed below
is reported in the District's financial statements because of the significance of its relationship with
the District. The component unit, although a legally separate entity, is reported in the financial
statements using the blended presentation method as if it were part of the District's operations
because the Governing Board of the component unit is essentially the same as of governing board of
the District and because its purpose is to finance facilities to be used for the direct benefit of the
District. The Central Contra Costa Sanitary District Facilities Financing Authority was organized
solely for the purpose of providing financial assistance to the District. The authority does this by
acquiring, constructing, improving and financing various facilities, land and equipment purchases,
and by leasing or selling certain facilities, land and equipment for the use, benefit and enjoyment of
the public served by the District. The Corporation has no members and the Board of Directors of the
Corporation consists of the same persons who are serving as the Board of Directors of the District.
There are no separate basic financial statements prepared for the Corporation.
Basis of Accountina
The District's financial statements are prepared on the accrual basis of accounting. The District
applies all applicable GASB pronouncements for certain accounting and financial reporting
guidance. In December of 2010, GASB issued GASBS No. 62, Codification of Accounting and
Financial Reporting Guidance Contained in Pre- November 30, 1989 FASB and AICPA
Pronouncements. This statement incorporates pronouncements issued on or before November 30,
1989 into GASB authoritative literature. This includes pronouncements by the Financial Accounting
Standards Board (FASB), Accounting Principles Board Opinions (APB), and the Accounting
Research Bulletins of the American Institute of Certified Public Accountants' ( AICPA) Committee
on Accounting Procedure, unless those pronouncements conflict with or contradict with GASB
pronouncements.
12
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 30, 2011
1. DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)
The District is a proprietary entity, it uses an enterprise fund format to report its activities for
financial statement purposes. Enterprise funds are used to account for operations that are financed
and operated in a manner similar to private business enterprises, where the intent of the governing
body is that the cost and expenses, including depreciation, of providing goods or services to its
customers be financed or recovered primarily through user charges; or where the governing body has
decided that periodic determination of revenues earned, expense incurred, and net income is
appropriate for capital maintenance, public policy, management control, accountability, or other
purposes.
Enterprise funds are used to account for activities similar to those in the private sector, where the
proper matching of revenues and costs is important and the full accrual basis of accounting is
required. With this measurement focus, all assets and liabilities of the enterprise are recorded on its
statement of net assets, all revenues are recognized when earned and all expenses, including
depreciation, are recognized when incurred.
Enterprise fluids distinguish operating revenues and expenses from non - operating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods
in connection with an enterprise fund's principal ongoing operations. The principal operating
revenues of the District are charges to customers for services. Operating expenses for the District
include the costs of sales and services, administrative expenses, and depreciation on capital assets.
All revenues and expenses not meeting this definition are reported as non - operating revenues and
expenses.
For internal operating purposes, the District's Board of Directors has established four separate sub -
funds, each of which includes a separate self - balancing set of accounts and a separate Board
approved budget for revenues and expenses. These sub -fiwds are combined into the single
enterprise fund presented in the accompanying financial statements. The nature and purpose of these
sub -fiinds are as follows:
Running Expense
Running expense accounts for the general operations of the District. Substantially all operating
revenues and expenses are accounted for in this sub -fund.
Seiver Construction
Sewer construction accounts for non - operating revenues, which are to be used for acquisition or
construction of plant, property and equipment.
Self Insurance
Self insurance accounts for interest earnings on cash balances in this sub -fund and cash
allocations from other sub - funds, as well as for costs of insurance premiums and claims not
covered by the District's insurance coverage.
13
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 30, 2011
1. DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)
Debt Service
Debt service accounts for activity associated with the payment of the District's long term bonds
and loans.
That portion of the District's net assets which is allocable to each of these sub - fiends has been shown
separately in the accompanying supplementary information to the financial statements.
The District's Board of Directors adopts annual budgets on a basis consistent with accounting
principles generally accepted in the United States of America.
Investments
Investments held at June 30, 2011, with original maturities greater than one year, are stated at fair
value. Fair value is estimated based on quoted market prices at year -end. All investments not
required to be reported at fair value are stated at cost or amortized cost.
Prepaids
Certain payments to vendors reflect costs applicable to fiiture accounting periods and are recorded as
prepaid items in the financial statements.
Bank Escrow Deposit
An escrow agreement was formed between the District and the National Park Service for the Right
of Way through the John Muir National Historic Site, in lieu of issuing a performance bond. The
current Right of Way Permit is 10 years, but is renewable and must remain in effect so long as there
is sewerage running through the area; therefore, it is unlikely that the escrow fiends will ever be
released to the District. These funds are listed as restricted cash in the financial statements. See note
2.
Parts and Supplies
Parts and supplies are valued at average cost and are used primarily for internal purposes.
Proverty. Plant. and Eauinment
Purchased capital assets are stated at historical cost. Capital assets contributed to the District are
stated at estimated fair value at the time of contribution. The capitalization threshold for capital
assets is $5,000. Expenditures which materially increase the value or life of capital assets are
capitalized and depreciated over the remaining useful life of the asset. The term depreciation
includes amortization of intangible assets.
14
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 30, 2011
1. DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)
Depreciation of exhaustible capital assets has been provided using the straight -line method as
follows:
Years
Sewage Collection Facilities 75
Intangible Assets 75
Sewage Treatment Plant and Pumping Plants 40
Buildings 50
Furniture and Equipment 5-15
Motor Vehicles 6-15
Defined Contribution Retirement Plans
District employees may defer a portion of their compensation under a District sponsored Deferred
Compensation Plan created in accordance with Internal Revenue Code Section 457. Under this Plan,
participants are not taxed on the deferred portion of their compensation until it is distributed to them;
distributions may be made only at termination, retirement, death, or in an emergency as defined by
the Plan. The District does not snake contributions to the plan.
The plan's 457 assets are held in trust for the exclusive benefit of the participants and are not
included in the District's financial statements.
The District also contributes to a money purchase plan created in accordance with Internal Revenue
Code section 401(x). Contributions to the plan are made in accordance with a memorandum of
understanding stating that in lieu of snaking payments to Social Security, the District contributes to
the 401(a) Plan an amount equal to that which would have been contributed to Social Security on
behalf of its employees as long as the District is not required to participate in Social Security. The
assets are held in trust and are not recorded on the books of the District. The District contributed
$1,527,289 to the plan during the year ended June 30, 2011.
Reclassifications
Certain items in the prior year financial statements have been reclassified to snatch their presentation
in the current year financial statements.
Provga Taxes
Property tax revenue is recognized in the fiscal year for which the tax is levied. The County of
Contra Costa levies, bills and collects property taxes for the District; all material amounts are
collected by June 30.
15
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 34, 2011
1. DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)
General County taxes collected are the same as the amount levied since the County participates in
California's alternative method of apportionment called the Teeter Plan.. The Teeter Plan as
provided in Section 4701 at seq. of the State of Revenue and Taxation Code establishes a mechanism
for the county to advance the full amount of property tax and other levies to taxing agencies based
on the tax levy, rather than on the basis of actual tax collections. Although this system is a simpler
method to administer, the County assumes the risk of delinquencies. The County in return retains
the penalties and accrued interest thereon.
Secured Property tax bills are mailed once a year, during the month of October on the current
secured tax roll, to the owner of the property as of the lien date (January 1). Payments can be made
in two installments, and are due on November 1 and February 1. Delinquent accounts are assessed a
penalty of 10 percent. Accounts which remain unpaid on June 30 are charged an additional 1 V2
percent per month. Unsecured property tax is due on July 1 and becomes delinquent on August 31.
The penalty percentage rates are the same as secured property tax.
Compensated Absences
The liability for vested vacation, compensatory time, and sick pay is recorded as an expense when
earned. District employees have a vested interest in 100 percent of accrued vacation time and 85
percent of accrued sick time for employees hired before May 1, 1985. Employees hired after May 1,
1985 have a vested interest in up to 40 percent of their sick time, based upon length of employment
with the District.
In fiscal 2011, accrued compensated absences decreased from $5,724,684 to $5,132,067, or by
$592,617. The current portion of the liability to be used within the next year was estimated by
management to be approximately $515,000 at June 30, 2011. The change of $592,617 during fiscal
2011 consists of increases of $486,841 and decreases of $1,079,458.
Statement of Cash Flows
For purposes of the statement of cash flows, all highly liquid investments, including restricted assets,
with maturities of three months or less when purchased, are considered to be cash equivalents.
Included therein are petty cash, bank accounts, and the State of California Local Agency Investment
Fund (LAIF). Restricted assets are debt service amounts maintained by fiduciaries and not available
for general expenses.
Use of Estimates
The preparation of 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 disclosures of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
16
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 30, 2011
1. DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)
New Accounting Pronouncements
In March of 2009, GASB issued GASBS No. 54, Fund Balance Reporting and Governmental Fund
Type Definitions. This Statement will improve financial reporting by providing fund balance
categories and classifications that will be more easily understood. Elimination of the reserved
component of fiend balance in favor of a restricted classification will enhance the consistency
between information reported in the government -wide statements and information in the
governmental fiend financial statements and avoid confiision about the relationship between reserved
fiend balance and restricted net assets. The fund balance classification approach in this Statement
will require governments to classify amounts consistently, regardless of the fund type or column in
which they are presented.
As a result, an amount cannot be classified as restricted in one fimd but unrestricted in another. The
firnd balance disclosures will give users information necessary to understand the processes under
which constraints are imposed upon the use of resources and how those constraints may be modified or
eliminated. The clarifications of the governmental fined type definitions will reduce uncertainty about
which resources can or should be reported in the respective fimd types. The provisions of the
Statement are effective for fiscal years beginning after June 30, 2011. The District is classified as an
Enterprise Fund and not a Governmental Fund Type. As such, this standard will not have an effect on
the financial statements of the District.
In December of 2009, GASB issued GASES No. 57, OPEB Measurements by Agent Employers and
Agent Multiple- Employer Plans. This Statement amends Statement No. 45, Accounting and
Financial Reporting by Employers for Postemployment Benefits Other 77ian Pensions, to permit an
agent employer that has an individual- employer OPEB plan with fewer than 100 total plan members
to use the alternative measurement method; at its option, regardless of the number of total plan
members in the agent multiple - employer OPEB plan in which it participates. Consistent with this
change to the employer- reporting requirements, this Statement also amends a Statement No. 43,
Financial Reporting for Posternploynzent Benefit Plans Other 7han Pension Plans, requirement that
a defined benefit OPEB plan obtain an actuarial valuation. The amendment permits the requirement
to be satisfied for an agent multiple- employer OPEB plan by reporting an aggregation of results of
actuarial valuations of the individual - employer OPEB plans or measurements resulting from use of
the alternative measurement method for individual- employer OPEB plans that are eligible. The
District is required to implement the provisions of the Statement for the year ended June 30, 2012
(effective for periods beginning after June 15, 2011). This Statement will not result in a change in
current practice, since the District does not use the alternative measurement method.
In November of 2010, GASB issued GASBS No. 60, Accounting and Financial Reporting for Service
Concession Arrangements. The objective of this Statement is to improve financial reporting by
addressing issues related to service concession arrangements (SCAs), which are a type of public -
private or public - public partnership.
17
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 34, 2011
1. DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)
New Accounting Pronouncements (continued)
As used in this Statement, an SCA is an arrangement between a transferor (a government) and an
operator (governmental or nongovernmental entity) in which (1) the transferor conveys to an operator
the right and related obligation to provide services through the use of infrastructure or another public
asset (a "facility') in exchange for significant consideration and (2) the operator collects and is
compensated by fees from third parties. The District is required to implement the provisions of this
Statement for the year ended June 30, 2013 (effective for periods beginning after December 15, 2011).
The District has no known SCRs that would require disclosure or have a material effect on the
financial statements of the District.
In November of 2010, GASB issued GASBS No. 61; The Financial Reporting Entity: annibus. This
Statement amends Statements No. 14 and 34, to modify certain requirements for inclusion of
component units in the financial reporting entity. For organizations that previously were required to be
included as component units by meeting the fiscal dependency criterion, a financial benefit or burden
relationship also would need to be present between the primary government and that organization for it
to be included in the reporting entity as a component unit. Further, for organizations that do not meet
the financial accountability criteria for inclusion as component units but that, nevertheless, should be
included because the primary government's management determines that it would be misleading to
exclude them, this Statement clarifies the manner in which that determination should be made and the
types of relationships that generally should be considered in making the determination.
This Statement also amends the criteria for reporting component units as if they were part of the
primary government (that is, blending) in certain circumstances and clarifies the reporting of equity
interests in legally separate organizations. It requires a primary government to report its equity interest
in a component unit as an asset. The District is required to implement the provisions of this Statement
for the year ended. June 30, 2013 (effective for periods beginning after June 15, 2012). This Statement
will not result in a change in current practice, or have a material effect on the financial statements of
the District.
hi December of 2010, GASB issued GASBS No. 62, Codification of Accounting and Financial
Reporting Guidance Contained in Pre - November 34, 1989 FASB and AIM Pronouncements. The
objective of this Statement is to incorporate into the GASB's authoritative literature certain accounting
and financial repotting guidance that is included in the following pronouncements issued on or before
November 30, 1989, which does not conflict with or contradict GASB pronouncements:
1. Financial Accounting Standards Board (FASB) Statements and Interpretations
2. Accounting Principles Board Opinions
3. Accounting Research Bulletins of the American Institute of Certified Public Accountants'
(AICPA) Committee on Accounting Procedure
18
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 30, 2011
1. DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)
New Accounting? Pronouncements (continued)
This Statement also supersedes Statement No. 20, Accounting and Financial Reporting for Proprietary
Funds and Other Governmental Entities That Use Proprietary Fund Accounting, thereby eliminating the
election provided in paragraph 7 of that Statement for enterprise funds and business -type activities to apply
post- November 30, 1989 FASB Statements and Interpretations that do not conflict with or contradict
GASB pronouncements. However, those entities can continue to apply, as other accounting literature, post -
November 30, 1989 FASB pronouncements that do not conflict with or contradict GASB pronouncements,
including this Statement. The District is required to implement the provisions of this Statement for the year
ended June 30, 2013 (effective for periods beginning after December 15, 2011). This Statement will not
result in a change in current practice, or have a material effect on the financial statements of the District.
In June of 2011, GASB issued GASBS No. 63, Financial Reporting and Deferred Ouy7ows of Resources,
Deferred Inflous of Resources, and Net Position. This Statement provides financial reporting guidance for
deferred outflows of resources and deferred inflows of resources. Concepts Statement No. 4, Elements of
Financial Statements, introduced and defined those elements as a consumption of net assets by the
government that is applicable to a future reporting period, and an acquisition of net assets by the
government that is applicable to a future reporting period, respectively. Previous financial reporting
standards do not include guidance for reporting those financial statement elements, which are distinct from
assets and liabilities.
Concepts Statement 4 also identifies net position as the residual of all other elements presented in a
statement of financial position. This Statement amends the net asset reporting requirements in Statement
No. 34, Basic Financial Statements —and Management's Discussion and Analysis —for State and Local
Governments, and other pronouncements by incorporating deferred outflows of resources and deferred
inflows of resources into the definitions of the required components of the residual measure and by
renaming that measure as net position, rather than net assets. The District is required to implement the
provisions of this Statement for the year ended June 30, 2013 (effective for periods beginning after
December 15, 2011). This Statement should not result in a change in current practice, or have a material
effect on the financial statements of the District.
In June of 2011, GASB issued GASBS No. 64, Derivative Instruments: Application of Hedge Accounting
Termination Provisions. This Statement amends Statement No. 53, Accounting and Financial Reportingfor
Derivatne Instruments. Some governments have entered into interest rate swap agreements and commodity
swap agreements in which a swap counterparty, or the swap counterparty's credit support provider,
commits or experiences either an act of default or a termination event as both are described in the swap
agreement. Many of those governments have replaced their swap counterparty, or swap counterparty's
credit support providers, either by amending existing swap agreements or by entering into new swap
agreements. When these swap agreements have been reported as hedging instruments, questions have
arisen regarding the application of the termination of hedge accounting provisions in Statement No. 53,
Accounting and Financial Reporting for Derivative Instruments. Those provisions require a government to
cease hedge accounting upon the termination of the hedging derivative instrument, resulting in the
immediate recognition of the deferred outflows of resources or deferred inflows of resources as a
component of investment income.
19
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 30, 2011
1. DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)
New Accounting Pronouncements (continued)
The objective of this Statement is to clarify whether an effective hedging relationship continues after
the replacement of a swap counteiparty or a swap counterparty's credit support provider. This
Statement sets forth criteria that establish when the effective hedging relationship continues and hedge
accounting should continue to be applied.. The District is required to implement the provisions of this
Statement for the year ended June 30, 2012 (effective for periods beginning after June 15, 2011). This
Statement will not result in a change in current practice, or have a material effect on the financial
statements of the District.
2. CASH AND CASH EQUIVALENTS
Summary of Cash and Investments
Investments as of June 30 are classified in the accompanying financial statements as follows:
Cash and cash equivalents
Short term investments
Restricted cash and investments
Total Cash and Investments
* Includes $100,000 bank escrow deposit - see note 1.
Policies and Practices
$ 48,081,743
14,992,660
8,759,500
$ 71,833,903
The District is authorized under California Government Code to make direct investments in local
agency bonds, notes, or warrants within the State; U.S. Treasury instruments, registered State
warrants or treasury notes; securities of the U.S. Government, or its agencies; commercial paper;
certificates of deposit placed with commercial banks and/or savings and loan companies; and
certificates of participation. State code and the District's investment policy prohibit the District
from investing in investments with a rating of less than A or equivalent. District policy limits
investments in commercial paper to prime quality with corporate assets over $500,000,000.
20
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 30, 2011
2. CASH AND CASH EQUIVALENTS (continued)
General Authorizations
Limitations as they relate to interest rate risk, credit risk, and concentration of credit risk are
indicated in the schedules below:
Authorized Investment Type
U.S. Treasury Obligations
Banker's Acceptance
Commercial Paper (1)
Collateralized Certificates of Deposit (2)
County Pooled Investment Funds
Local Agency Investment Fund (LAIF)
(1) Prime quality; limited to corporations with assets over $500,000,000
(2) Prior approval of the Board of Directors must be obtained to acquire maturities beyond one year
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of
an investment; generally, the longer the maturity of an investment, the greater the sensitivity of its
fair value to changes in market interest rates. It is the District's policy to manage exposure to
interest rate risk by purchasing a combination of shorter term and longer term investments and by
timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to
maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
District policy is that investment maturities do not exceed one year, with the exception of Treasury
Notes or Local Agency Investment Fund, however investments can be held longer with Board
approval.
The District's investments at year end with the exception of the U.S Treasuries and Commercial
Paper below are held in external investment pools which are liquid investments.
Information about the sensitivity of the fair values of the District's investments to market interest
rate fluctuation is provided by the following schedule that shows the distribution of the District's
investment by maturity:
Investment Tune Fair Value Ma
Commercial Paper $ 4,997,068 07125111
Commercial Paper 4,997,166 07125111
Treasury Bills 4,998,426 10120/11
Total 14,992,660
21
District
California State Limits
Policy
Maxininin
Maximum
Maximum
maximum
Remaining
Percentage
Investment
Percentage
Maturity
Of Portfolio
In One Issuer
of Portfolio
5 years
None
None
100%
180
40%
30%
15%
270
25%
10%
15%
5 yens
30%
None
15%
N/A
None
None
100%
N/A
None
None
1000/0
(1) Prime quality; limited to corporations with assets over $500,000,000
(2) Prior approval of the Board of Directors must be obtained to acquire maturities beyond one year
Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of
an investment; generally, the longer the maturity of an investment, the greater the sensitivity of its
fair value to changes in market interest rates. It is the District's policy to manage exposure to
interest rate risk by purchasing a combination of shorter term and longer term investments and by
timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to
maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
District policy is that investment maturities do not exceed one year, with the exception of Treasury
Notes or Local Agency Investment Fund, however investments can be held longer with Board
approval.
The District's investments at year end with the exception of the U.S Treasuries and Commercial
Paper below are held in external investment pools which are liquid investments.
Information about the sensitivity of the fair values of the District's investments to market interest
rate fluctuation is provided by the following schedule that shows the distribution of the District's
investment by maturity:
Investment Tune Fair Value Ma
Commercial Paper $ 4,997,068 07125111
Commercial Paper 4,997,166 07125111
Treasury Bills 4,998,426 10120/11
Total 14,992,660
21
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 30, 2011
2. CASH AND CASH EQUIVALENTS (continued)
Credit Risk
Credit risk is the risk that an issue of an investment will not fulfill its obligation to the holder of the
investment. This is measured by the assignment of a rating by a nationally recognized statistical
rating organization. Presented below is the minimum rating required by the California Government
Code, the District's investment policy, and the actual rating as of the year -end for each investment
type.
Not
minimum Rewired Rating at Year -End
Fair Legal To Be
Investment Tye Value Rating Rated Aaa Unrated
Cash $ 4,370,278 N/A $ 4,370,278 $ - $ -
Money Markets 5,523,965 Aaa - 5,523,965 -
Commercial Paper 9,994 „234 Aaa 9,994,234 -
Treasuries 4,998,426 Aaa - 4,998,426 -
State Investment Pool 46.947,000 N/A 46.947,000
Total $ 71.833.903 4 370 278 20.516.625 46.947.000
Concentration of Credit Risk
The investment policy of the District contains the limitation that no more that 15% of the District's
investment portfolio will be invested in a single issuer. During the current fiscal year the District
invested 65% of its monies in the State Investment Pool (LAIF) which is not limited by the
California Government Code or District Investment Policy.
Investments in County Treasury — The District is considered to be a voluntary participant in an
external investment pool. The fair value of the District's investment in the pool is reported in the
accounting financial statements at amounts based upon the District's pro -rata share of the fair value
provided by the County Treasurer for the entire portfolio (in relation to amortized cost of that
portfolio). The balance available for withdrawal is based on the accounting records maintained by
the County Treasurer, which is recorded on the amortized cost basis.
Investment in the State Investment Pool — The District is a voluntary participant in the Local Agency
Investment Fund (LAIF) that is regulated by California government code Section 16429 under the
oversight of the Treasurer of the State of California. The fair value of the District's investment in
the pool is reported in the accompanying financial statement at amounts based upon the District's
pro -rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the
amortized cost of that portfolio). The balance available for withdrawal is based on the accounting
records maintained by LAIF, which is recorded on the amortized cost basis.
22
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 30, 2011
2. CASH AND CASH EQUIVALENTS (continued)
Custodial Credit Risk — Investments
Custodial risk for investments is the risk that, in the event of the failure of the counterparty (e.g. the
broker-dealer) to a transaction, a governinent will not be able to recover the value of its investment
or collateral securities that are in the possession of another party. The California Government Code
does not contain legal or policy requirements that would limit the exposure to custodial credit risk.
The District's policy is to use the services of the Treasurer's Office of the County of Contra Costa,
which will transact the District's investment decisions in compliance with the requirements of the
District's policy. The County Treasurer's Office will execute the District's investments through
such broker-dealers and financial institutions as are approved by the County Treasurer, and through
the State Treasurer's Office for investment in the Local Agency Investment Fund.
3. ACCOUNTS RECEIVABLE
At June 30, 2011, accounts receivable are comprised of the following:
City of Concord (see Note 8) $ 12,441,142
Household Hazardous Waste Partners 791,533
Proposition IA loan 985,916
All other 513,990
Total Accounts Receivable 14,732,581
Allowance for Doubtful Accounts (985,916)
Net Accounts Receivable S 13,746,665
Proposition IA Loan Receivable
Under the provisions of Proposition IA, and as part of the 2009-10 budget package passed by the
California state legislature on July 28, 2009, the State of California borrowed 8% of the amount of
property tax revenue, including those property taxes associated with the supplemental property tax
apportioned to special districts. The state is required to repay this borrowing, plus interest, by June
30, 2013. After repayment of this initial borrowing, the California legislature may consider only one
additional borrowing within a ten-year period. The amount of this borrowing pertaining to the
District was $ 985,916.
The borrowing by the State of California was recognized as a receivable in the accompanying
financial statements, with an equal amount set up as an allowance for doubtful accounts. In the
Statement of Net Assets and Statement of Revenues., Expenses and Changes in Net Assets, the tax
revenues were recognized in the fiscal year for which they were levied (fiscal year 2010).
Due to the current economic climate, and the current budget difficulties of the State of California,
District management has decided to reserve the entire Proposition IA loan of $985,916. This
amount is tracked as a loan receivable on the books, with a corresponding contra account on the
Statement of Net Assets, which effectively eliminates the receivable. The Statement of Revenues,
Expenses, and Changes in Net Assets also includes the property tax revenue connected to the
receivable. The revenue is offset by the provision for losses.
23
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 30, 2011
4. LAND, PROPERTY, PLANT AND EQUIPMENT, AND CONSTRUCTION IN PROGRESS
Property, plant and equipment, and construction in progress are summarized below for the year
ended June 30, 2011:
24
Balance
Beginning
Transfer
Balance
of Year
Additions
Retirements
from CIP
End of Year
At Cost
Capital assets not being depreciated
Land
$ 17,114,720
$ -
$ -
$ -
$ 17,114,720
Construction in progress
26,735,296
27,576,766
-
(31,679,920}
22,632,142
Total nondepreciated assets
43,850,016
27,576,766
-
(31,679,920)
39,746,862
Capital assets being depreciated
Sewage collection system
286,351,576
-
(7,500)
3,973,648
290,317,724
Contributed sewer lines
148,580,734
533,617
(4,000)
-
149,110,351
Outfall sewers
8,518,443
-
-
-
8,518,443
Sewage treatment plant
275 ,413,411
-
(1,000,000)
13,124,102
287,537,513
Recycled water infrastructure
12,281,480
-
-
18,651
12,300,131
Pumping stations
53,750,940
-
(250,000)
911,790
54,412,730
Buildings
21,206,981
-
(2,471,408)
12,581,893
31,317,466
Intangibles
1,806,272
-
-
252,649
2,058,921
Furniture and equipment
13,756,662
-
(1,330,519)
817,187
13,243,330
Motor vehicles
5,759,209
306,720
(27,402)
-
6,038,527
Total depreciated assets
827,425,708
840,337
(5,090,829)
31,679,920
854,855,136
Less Accumulated depreciation
Sewage collection system
41,065.360
3,890,436
(7,500)
-
44,948,296
Contributed sewer lines
45,117,562
1,997,540
(4,000)
-
47,111,102
Outfall sewers
2,653,619
113,353
-
-
2,766,972
Sewage treatment plant
153,113,414
9,686,994
(1,000,000)
-
161,800,408
Recycled water infrastructure
4,354,327
494,208
-
-
4,848,535
Pumping stations
18,079,813
2,161,492
(250,000)
-
19,991,305
Buildings
6,565,186
777,616
(1,311,125)
-
6,031,677
Intangibles
32,327
25,768
-
-
58,095
Furniture and equipment
9,987,708
1,118,038
(1,330,397)
-
9,775,349
Motor vehicles
3,521,254
314,616
(27,402)
-
3,808,468
Total accumulated depreciation
284,490,570
20,580,061
(3,930,424)
-
301,140,207
Total capital assets being
depreciated net
542,935,138
(19,739,724)
(1,160,405)
31,679,920
553,714,929
Capital assets, net
$ 586,785,154
$ 7,837,042
$ (1,160,405)
$ -
$ 593,461,791
24
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 30, 2011
5. ASSESSMENT DISTRICTS
The District established the Contractual Assessment District (CAD) program to help homeowners
finance the cost of connecting to the District. The construction costs associated with the project
within the program are capitalized and depreciated. Individual homeowners are assessed an amount
equal to their share of the construction costs and connection fee. The assessments plus interest are
generally payable over 10 years. At year -end, the CAD receivable balance was $606,964.
The District also established the Alhambra Valley Assessment District (AVAD) to provide services
to residents in the Alhambra Valley in Martinez. Residents have the choice to pay cash or finance
the construction costs and connection fees. At year -end the AVAD receivable balance was
$1,818,114.
The total receivable balance for the CAD and AVAD is $2,425,078, and is shown as a non - current
asset on the Statement of Net Assets.
6. LONG -TERM DEBT
2009 Wastewater Revenue Certificates of Participation
On November 12, 2009 and December 3, 2009 the District issued two Certificates of Participation
(COP).
The 2009 Wastewater Revenue Certificates of Participation, Series A and Series B were issued for
$19,635,000 and $34,490,000, respectively. The Series A COP are federally taxable `Build America
Bonds" which have a direct 35% interest rate subsidy from the Federal Government. Yields on this
series range from 3.45% to 3.78% net of the subsidy. The Series B COP are tax exempt bonds that
were used to refiuid the 1998 and 2002 bond issues and raise an additional $30 million in new
proceeds with yields ranging from .4% to 3.79 %.
The two bonds total $54,125,000, and are secured by a pledge of revenue. Principal payments begin
annually on September 1, 2010 with semi - annual payments due on September 1 and March 1 of each
year. Both bonds will be filly amortized as of September 1, 2029. The ref u ded portion of the
original bonds will be paid off based on the original amortization schedule.
Sumnlary
Tlie changes in the District's long -term obligations during the year consisted of the following:
Balance Balance Due in
July 1, 2010 Deductions Additions June 30, 2011 One Year
Revenue bonds $ 54,125,000 $ 3,460,000 $ - $ 50,665,000 $ 3,465,000
Water Reclamation Loan 1,335,968 152,385 1,183,583 156,345
55.460968
1-2112M $ S 51.848.583 3- 621.345
25
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 30, 2011
6. LONG -TERM DEBT (continued)
Debt Service Requirements
In 2009, the District issued Certificates of Participation (COP), which retired the 2002 and 1998
debt. The 2009 Revenue COP debt service requirements are as follows:
Fiscal Year
Ending June 30,
2012
2013
2014
2015
2016
2017-2021
2022 —2026
2027— 2030
Total
Amount representing
interest
Principal outstanding
Short -term portion of
revenue bonds
Long-term portion of
revenue bonds
Series A
Series B
Ending June 30,
Series A
2012
Debt Service
Debt Service
Gross
35 % Tax
Net
Requirement
Requirement
Total
Subsidy
Total
$ 1,190,840
$ 4,559,850
$ 5,750,690
$ (416,794)
$ 5,333,896
1,190,840
4,586,625
5,777,465
(416,794)
5,360,671
1,190,840
4,571,683
5.762,523
(416,794)
5,345,729
1,190,840
4,565,467
5,756,307
(416,794)
5,339,513
1,190,840
2,811,033
4,001,873
(416,794)
3,585,079
7,527,880
12,461,878
19,989,758
(2,058,793)
17,930,965.
13,223,527
3,665,721
16,889,248
(1,437,405)
15,451,843
9,661,148
95,719
9,756,867
(345,404)
9,411,463
36,366,755
37,317,976
73,684,731
(5,925,572)
67,759,159
(16,731,755)
(6,287,976)
(23,019,731)
-
(23,019,731)
19,635,000
31,030,000
50,665,000
(5,925,572)
44,739,428
-
(3,465,000)
(3,465,000)
416,794
(3,048,206)
$ 19,635,000
$ 27,565,000
$ 47,200,000
$(5,5081778)
$ 41,691,222
Water Reclamation Loan Contract
The District has entered into a contract with the State of California State Water Resources Control
Board (the Board), which advanced the District $2,916,872 for design and construction costs for
projects related to recycled water treatment programs.
The District must repay advances from the Board over a 20 -year period beginning March 31, 1999,
with an interest rate of 2.60%. Debt service requirements are as follows:
Fiscal Year
Debt Service
Ending June 30,
Requirements
2012
$ 187,119
2013
187,119
2014
187,119
2015
187,119
2016
187,119
2017-2018
374,240
Total
1,309,835
Amount representing interest
(126,252)
1,183,583
Less: Current portion of Water Reclamation Loan Contract
(156,345)
Long term portion of Water Reclamation Loan Contract $ 1,027,238
26
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 30, 2011
6. LONG -TERM DEBT (continued)
Local Improvement District Bonds
Within the District's boundaries, there exist several Improvement Districts, which were formed for
the sole purpose of financing sewer system improvements. The District has no oversight
responsibility for these Districts and is not liable for repayment of any bonds issued to finance
these local improvement districts. Contra Costa County acts as the agent for the property owners
in these districts in collecting assessments, forwarding collections to bondholders, and initiating
foreclosure procedures, if appropriate. The outstanding balance on these bonds was $30,000 at June
30, 2011.
7. RISK MANAGEMENT
The District is exposed to various risks of loss related to torts: theft of, damage to, and destruction of
assets; errors and omissions; injuries to employees; and natural disaster. The District joined with
other entities to form the California Sanitation Risk Management Authority (CSRMA), a public
entity risk pool currently operating as a common risk management and insurance program for the
member entities. The purpose of CSRMA is to spread the adverse effects of losses among the
member entities and to purchase excess insurance as a group, thereby reducing its cost. Through
CSRMA, the District purchases property insurance and workers' compensation insurance.
Insurance Coverage
The District's insurance coverage is as follows:
Self Insured
Deductible Per
Type of Insurance Coverage
Insurer
Limits
Occurrence
All-Risk Property
Fire
Public Entity Property Insurance
Program (PEPIP)
$528,621,210
$ 250,000
Boiler & Machinery
PEPIP
$ 50,000 to
(Shared Limits per Occurrence)
$100,000,000
$ 250,000
Crime
Travelers
$
1,000,000
$ 25,000
Liability
Errors and Omissions
Insurance Company of the State of
Pennsylvania ( Chartis)
$
15,000,000
$ 1,000,000
Employment Practices Liability
Chartis
$
15,500,000
$ 1,000,000
Employment Practices Liability
Admiral Insurance Company
$
1 „000,000
$ 15,000
General Liability
Chartis
$
15 „500,000
$ 1,000,000
Auto Liability
Chartis
$
15,500,000
$ 1,000,000
Pollution (General Aggregate)
Chartis Specialty insurance Co.
$
5,000,000
$ 5,000
General Liability (Occurrence)
Pollution (Legal Liability
Chartis Specialty Insurance Co.
Aggregate)
$
10,000,000
$ 50,000
Fiduciary Liability
RLI Insurance Company
$
1,000,000
-
Workers' Compensation
CSRMA
$
500,000
-
Excess Workers' Compensation
Safety National Casualty
Corporation
Statutory
$ 750,000
27
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 30, 2011
7. RISK MANAGEMENT (continued)
Liability for Uninsured Claims
The Governmental Accounting Standards Board (GASB) requires state and local governments to
record their liability for uninsured claims in their financial statements.
The District's uninsured claims activity and exposure relates primarily to its general and automobile
liability program The District records its estimated liability for uninsured claims in this area based
on the results of periodic actuarial evaluations. The actuarial evaluations are typically performed
every two years. For intervening years, the liability for uninsured claims is reviewed for adequacy
based on claims activity during the intervening period.
For the fiscal years ended June 30, 2011, 2010, and 2009, settlements have not exceeded insurance
coverage. Changes in the District's estimated liability for uninsured claims for fiscal years 2011,
2010, and 2009 are summarized as follows:
Beginning balance
Provisions for claims incurred in the current year
and changes in the liability for uninsured —
claims incurred in prior years
Claims and claim adjustment expenses paid
Ending balance
KAMM ' I DKQJ I wall DEK610 �!
2011 2010 2009
$1,000,000 $ 750,000 $ 629,820
240,844 295,348 286,220
(240,844) (45,348) (166,040)
$1,000,000 $1,000,000 $ 750,000
In 1974, the District and the City of Concord (the City) entered into a cost - sharing agreement under
which the District became responsible for providing sewage treatment facilities and services to the
City. Under this agreement, the City pays a service charge for its share of operating, maintenance
and administrative costs and makes a contribution for its share of facilities capital costs expended.
Service charges and contributions to capital costs from the City totaled $9,224,952 and $3,216,190
respectively, for the year ended June 30, 2011, for a total of $12,441,142.
28
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 30, 2011
9. PENSION PLAN
Plan Description
Substantially all District full -time employees are required to participate in the Contra Costa County
Employees' Retirement Association (CCCERA), a cost- sharing multiple- employer public employee
defined benefit retirement plan (Plan), governed by the County Employee's Retirement Law of
1937, as amended. The latest available actuarial and financial information for the Plan is for the
year ended December 31, 2010. The Contra Costa Employees' Retirement Association issues a
publicly available financial report that includes financial statements and supplemental information of
the Plan. That report is available by writing to Contra Costa County Employees' Retirement
Association, 1355 Willow Way, Suite 221, Concord, CA 94520 -5728 or by calling (925) 521 -3960.
The Plan provides for retirement, disability, and death and survivor benefits. Annual cost of living
(COL) adjustments to retirement allowances can be granted by the Retirement Board as provided by
State statutes. Retirement benefits are based on age, length of service and final average salary.
Subject to vested status, employees can withdraw contributions plus interest credited, or leave them
as a deferred retirement when they terminate, or transfer to a reciprocal retirement system
Plan Contribution Requirement
The Plan requires employees to pay a portion of the basic retirement benefit and a portion of future
COL costs. However, the District has paid the employee's basic contributions in accordance with
the Memorandum of Understanding (MOU). Employees must pay the COLA portion of the
employee rate. The contribution requirement and payment from the District for the plan years ended
June 30, 2011, 2010 and 2009 was as follows:
2011
2010 2009
Covered payroll for fiscal years ended June 30
$ 24,709,477
$ 25,080,233
$ 24,202,098
Employer required contributions to pension
8,950,938
8,804,127
9,084,809
Employee (COLA) required contributions to pension
930,648
939,388
913,027
Total required contributions
$ 9,881,586
$ 9,743,515
$ 9,997,836
Percentage of payroll
40%
39%
41%
The District pension plan covered 245 participants during the year.
M
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended dune 30, 2011
10. POST EMPLOYMENT HEALTH CARE BENEFITS
Plan Description
The District's defined benefit post employment healthcare plan, (DPHP), provides medical benefits
to eligible retired District employees and beneficiaries. DPHP is part of the Public Agency portion
of the Public Agency Retirement System (PARS), an agent multiple - employer plan administered by
PARS, which acts as a common investment and administrative agent for participating public
employees within the State of California. A menu of benefit provisions as well as other
requirements is established by the State statute with the Public Employees' Retirement Law. DPHP
selects optional benefit provisions from the benefit menu by contract with PARS and adopts those
benefits through District resolution. PARS issues a separate Comprehensive Annual Financial
Report. Copies of the PARS annual financial report may be obtained from PARS, 4350 Von
Kalman Ave., Suite 100, Newport Beach, CA 92660; by calling 1(800) 540 -6369; or by emaling
info@,pars.org.
Funding Policy
Statement No. 45 sets rules for computing the employer's expense for retiree benefits other than
pension, called OPEBs. The expense, called the annual OPEB Cost (AOC), is determined similarly
to pensions. The annual required contribution (ARC) of the employer, represents a level of funding
that, if paid on an ongoing basis, is projected to cover normal annual costs each year and amortize
any unfunded actuarial liabilities (or fiurding excess) over a period not to exceed 30 years. When an
agency contributes more than the ARC, there is a net OPEB asset; when the contribution is less, a
net OPEB obligation results. There is a net OPEB asset of $916,736 and $746,931 as of June 30,
2011 and 2010, respectively.
Because of the volatility of the investment market, the District Board voted to make monthly
installments into the OPEB Trust to take advantage of dollar- cost - averaging.
Annual OPEB Cost
For 2011, the District's annual OPEB cost (expense) was equal to the ARC of $6,976,364. The
District contributed $7,146,169; $3,571,141 for retiree health care premiums and $3,575,028 to the
PARS trust. The following table shows the components of the District's annual OPEB costs for the
years 2011 and 2010, the amount actually contributed to the plan, and changes in the District's net
OPEB obligation:
30
2011
2010
Net OPEB Obligation (Asset) — Beginning of Year
$ (746,931)
$1,611,622
Annual Required Contribution
6,976,364
6,976,364
Contributions Made:
Health care premiums paid
(3,571,141)
(2,614,917)
Contributions to PARS trust
(3,575,028)
(6,720,000)
Net OPEB Obligation (Asset) — End of Year
$ (916,736)
$ (746,931)
30
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 30, 2011
10. POST EMPLOYMENT HEALTH CARE BENEFITS (continued)
The District's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and
the OPEB obligation for 2011 and the preceding year are presented below:
Annual
OPEB
Cost
Fiscal Year (AOC)
Annual
Percentage
Employer
of AOC
Contribution
Contributed
Current
Year AOC Net OPEB
Obligation Obligation
(Asset) (Asset)
June 30, 2011
$6,976,364
$ 7,146,169 102%
$ (169,805)
$ (916,736)
June 30, 2010
$6,976,364
$ 9,334,917 134%
$(2,358,553)
$ (746,931)
June 30, 2009
$6,224,478
$ 4,612,856 74%
$ 1,611,622
$ 1,611,622
Funding Status and Funding Progress
The funded status of the plan as of July 1, 2009 was as follows:
Ism-nt �r-4
Per PARS, actuarial assets as of June 30, 2011, including trust contributions and interest, total
$18,077,303 ($9,305,798 at June 30, 2010). Actuarial valuations of an ongoing plan involve
estimates of the value of reported amounts and assumptions about the probability of occurrence of
events far into the future. Examples include assumptions about future employment, mortality, and
the healthcare cost trend. The funded status of the plan and the annual required contributions of the
employer are subject to continual revision, as actual results are compared with past expectations and
new estimates are made about the future. The schedule of funding progress, presented as required
supplementary information, presents multiyear trend information that shows whether the actuarial
value of the plan assets is increasing or decreasing over time, relative to the actuarial liabilities for
benefits.
31
Cost Method
(Underfunded)
Actuarial
Actuarial
Actuarial
UAAL as
Actuarial
Valuation.
Accrued
Accrued
Funding
Covered Payroll
a % of
Valuation
of Assets
Liability
Liability
Ratio
(Active Plan
Covered
Date
(A)
(B)
(A -B) UAAL
(A/13)
Members)
Payroll
June 30, 2009
$ 2,341,251
$ 68,769,305
$ (66,428,054)
3.40%
$ 25,080,233
265%
June 30, 2007
$ 2,341,251
$ 68,447,956
$ (66,106,705)
3.42%
$ 22,648,230
292%
Per PARS, actuarial assets as of June 30, 2011, including trust contributions and interest, total
$18,077,303 ($9,305,798 at June 30, 2010). Actuarial valuations of an ongoing plan involve
estimates of the value of reported amounts and assumptions about the probability of occurrence of
events far into the future. Examples include assumptions about future employment, mortality, and
the healthcare cost trend. The funded status of the plan and the annual required contributions of the
employer are subject to continual revision, as actual results are compared with past expectations and
new estimates are made about the future. The schedule of funding progress, presented as required
supplementary information, presents multiyear trend information that shows whether the actuarial
value of the plan assets is increasing or decreasing over time, relative to the actuarial liabilities for
benefits.
31
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 30, 2011
10. POST EMPLOYMENT HEALTH CARE BENEFITS (continued)
Actuarial Methods and Assumptions
Projections for benefits for financial reporting purposes are based on the substantive plan (the plan
as understood by the employer and plan members) and include the types of benefits provided at the
time of each valuation as well as the historical pattern of sharing benefit costs between the employer
and plait members. The actuarial methods and assumptions used include techniques that are
designed to reduce short -term volatility in actuarial accrued liabilities and actuarial value of assets,
consistent with the long -term perspective of the calculations.
In August 2011, the District had an additional actuarial valuation prepared as of July 1, 2010. This
additional valuation was not required at the time, but was prepared in order to begin a completion
schedule that allows the District to have data available for future budget cycles, in this case for the
2011 — 2012 and 2012 — 2013 fiscal years. The ARC in 2011 — 2012 and 2012 — 2013 will increase
to $8.3 million per year. The next actuarial valuation is scheduled to be performed by December 31,
2012 to be applied to the 2013 — 2014 fiscal year.
The following is a summary of the actuarial assumptions and methods:
Valuation Date
Actuarial Cost Method
Amortization Method
Average Remaining Period
Actuarial Assumiptioris:
Investment Rate of Return
Inflation
Financial Statements
July 1, 2009
Entry Age Normal. Cost Method
Level Dollar /Closed
30 Years as of the Valuation Date
8%
Medical — 9% grading to 5% in 2017
Medicare Part B — 5%
Dental — 5%
The District has deposited monies to the PARS trust in excess of the actuarial determined annual
required contribution (ARC), therefore, under the provisions of GASB 45, the District has an OPEB
asset of $916,736 for reporting purposes.
The provision for the GASB 45 OPEB obligation is an asset of $916,736 at June 30, 2011. The
actuarial determined liability, which is being paid over the next 30 years, is $68,769,305 at July 1,
2009, of which, $18,077,303 (or 26 %) has been funded.
32
CENTRAL CONTRA COSTA SANITARY DISTRICT
Notes to Financial Statements
Year Ended June 30, 2011
11. LEASE COMMITMENTS
The District leases various facilities and equipment under operating leases. Following is a summary
of operating lease commitments as of June 30, 2011:
Fiscal Year Office
Endin
Equ i ment
Facilities
Total
2012
$ 229,097
$ 55,200
$ 284,297
2013
249,924
56,784
306,708
2014
249,924
58,416
308,340
2015
249,924
2,400
252,324
Thereafter
270,751
4,800
275,551
Total
$ 1,249,620
$ 177,600
$ 1,427,220
Total rental expense for the fiscal year ended June 30, 2011 was $428,877.
12. COMMITMENTS AND CONTINGENCIES
Commitments and contingencies, undeterminable in amount, include normal recurring pending
claims and litigation. In the opinion of management, based upon discussion with legal counsel, there
is no pending litigation which is likely to have a material adverse effect on the financial position of
the District.
Claims and losses are recorded when they are reasonably probable of being incurred and the amount
is estimable. Insurance proceeds and settlements are recorded when received.
The District has purchase commitments relating to construction projects at June 30, 2011 of
$12,088,330.
13. SUBSEQUENT EVENTS
Management has evaluated subsequent events through September 30, 2011, the date on which the
financial statements were available to be issued.
33
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S UPPL EME N TA R Y I NF O R MA TIO N
CENTRAL CONTRA COSTA SANITARY DISTRICT
Combining Schedule of Net Assets
for the Year Ended June 30, 2011
ASSETS
Current Assets
Cash and cash equivalents
Short term investments
Accounts receivable, net of allowance for
Sewer Construction Fund of $985,916
Interest receivable
Due from other sub - fiends
Parts and supplies
Prepaid expenses
Total Current Assets
Noncurrent Assets
Restricted cash and equivalents
Restricted investments
Land, property, plant and equipment, net
Construction in progress
Contractual assessment district and Alhambra
Valley Assessment District receivable
OPEB liability- medical insurance premiums
Revenue bond issuance costs
net of amortization
LIABILTTiES
Current Liabilities
Accounts payable and accrued expenses
Due to other sub -fiords
Interest payable
Current portion of refunding water revenue bonds
Current portion of water reclamation
loan contract
Liability for uninsured claims
Accrued compensated absences
Refundable deposits
Total Current Liabilities
Running Sewer Self Debt
Expense construction Insurance Service Elimination Total
$ 1,092,529
S 42,223,914
$ 4,653,835
$ 111,465
$ $ 48,081,743
-
14,992,660
-
-
- 14,992,660
10,389,742
3,356,923
-
-
- 13,746,665
-
56,669
5,172
-
- 61,841
106,590,755
79,679,343
2,030,784
56,547,633
(244,848,515) -
1,842,468
-
-
-
- 1,842,468
1,681,743
-
-
-
- 1,681,743
121,597,237
140,309,509
6,689,791
56,659,098
(244,848,515) 80,407,120
100,000
3,247,000
-
93,592
- 3,440,592
-
-
-
5,318,908
5,318,908
570,829,649
-
-
-
- 570,829,649
22,632,142
-
-
-
- 22,632,142
- 2,425,078 - - - 2,425,078
916,736 - - - - 916,736
- - - 354,697 - 354,697
716,075,764 145,981,587 6,689,791 62,426,295 (244,848,515) 686,324,922
2,288,397 2,127,862 103,282 - - 4,519,541
116,159,583 117,067 „317 1,844,300 9,777,315 (244,848,515) -
- - - 800,397 - 800,397
3,465,000 - 3,465,000
- - - 156,345 - 156,345
- - 1,000,000 - - 1,000,000
515,000 - - - - 515,000
134,425 92,038 - - 226,463
119,097,405 119,287,217 2,947,582 14,199,057 (244,8481515) 10,682,746
NONCURRENT LIABII.=S
Revenue bonds, net of current portion
- -
- 47,200,000
- 47,200,000
Accrued compensated absences
4,617,067 -
- -
- 4,617,067
Water reclamation loan contract
net of currant portion
- -
- 1,027,238
- 1,027,238
Total Liabilities
123,714,472 119,287,217
2,947,582 62,426,295
(244,848,515) 63,527,051
NET ASSETS
Invested in capital assets, net of related debt
593,461,791 -
- (51,848,583)
- 541,613,208
Restricted for debt service
- -
- 4,612,103
- 4,612,103
Unrestricted
(1,100,499) 26,694,370
3,742,209 47,236,480
- 76,572,560
Total Net Assets
S 592,361,292 $ 26,694,370
73 S -
$ - $ 622,797,871
The accompanying notes are an integral part of the financial statements
34
CENTRAL CONTRA COSTA SANITARY DISTRICT
Combining Schedule of Revenues, Expenses and Changes in Net Assets
for the Year Ended June 30, 2011
Operating Revenues
Sewer Service Charges (SSC)
Service charges - City of Concord
Other service charges
Miscellaneous charges
Total operating revenues
Operating Expenses
Sewage collection and pumping stations
Sewage treatment
Enguneerng
Administrative and general
Depreciation
Total operating expenses
Operating Loss
Non - Operating Revenues (Expenses):
Taxes
Permit and inspection fees
Interest earnings
Interest expense
Allowance for doubtful accounts
Other income (expense)
Total non - operating revenues (expenses)
Income (loss) before contributions and
transfers
Running
Sewer
Self
Debt
Customer contributions to capital cost (SSC)
-
Expense
Construction
insurance
Service
Elimination
Total
Capital contributions - connection fees
-
3,515,804 - -
- 3,515,804
Transfers
28,005,448
$ 49,095,870
$ -
$ -
$ -
$ -
$ 49,095,870
9,224,952
-
-
-
-
9,224,952
913,017
-
-
-
-
913,017
662,721
-
-
-
-
662,721
59,896,560
-
-
-
-
59,896,560
11,468,189
-
-
-
-
11,468,189
21,360,065
-
-
-
-
21,360,065
6,855,745
-
-
-
-
6,855,745
18,432,629
-
1,003,115
-
(884,064)
18,551,680
20,580,061
-
-
-
-
20,580,061
78,696,689
-
1,003,115
-
(884,064)
78,815,740
(18,800,129)
-
(1,003,115)
-
884,064
(18,919,180)
-
6,759,618
-
5,454,006
-
12,213,624
715,121
180,704
-
-
-
895,825
131,677
298,159
23,873
220,281
-
673,990
-
-
-
(2,061,903)
-
(2,061,903)
(563,557)
40,348
884,064
-
(884,064)
(523,209)
283,241
7,278,829
907,937
3,612,384
(884,064)
11,198,327
(18,516,888)
7,278,829
(95,178)
3,612,384
-
(7,720,853)
City of Concord contributions to capital costs
-
31216,190 - -
- 3,216,190
Customer contributions to capital cost (SSC)
-
1,801,902 - -
- 1,801,902
Contributed sewer lines
533,616
- - -
- 533,616
Capital contributions - connection fees
-
3,515,804 - -
- 3,515,804
Transfers
28,005,448
(24,393,064) (3,612,384)
- -
Change in Net Assets
10,022,176
(8,580,339) (95,178) -
- 1,346,659
Total Net Assets - Beginning
582,339,116
35,274,709 3,837,387 -
- 621,451,212
Total Net Assets - Ending
$ 592,361,292
$ 26,694,370 $ 3,742,209 $ - $
- $ 622,797,871
The accompanying notes are an integral part of the financial statements
35
CENTRAL CONTRA COSTA SANITARY DISTRICT
Schedule of Running Expenses
Comparison of Budget and Actual Expenses by Department
June 30, 2011
Directors' Fees and Expense
66,100
-
-
Sewage
-
66,100
109,595
Variance
Chemicals
-
-
Sewage
Treatment
Pumping
1,508,510
1,771,000
Favorable
Utilities
Administration
Engineering
Collection
Plant
Stations
Total
Budget
(Unfavorable)
Salaries and Wages
$ 4,853,590
$ 5,305,647
$ 4,194,970
$ 7,952,133
$1,019,575
$ 23,325,915
$ 24,837,689
$ 1,511,774
Employee Benefits
10,161,726
3,269,759
2,671,852
5,008,556
638,722
21,750,615
23,142,293
1,391,678
Less Capitalized Overhead and Benefits
(33,303)
3,180,265
12,657}
(140,176}
(4,998)
(3,371,399}
(3,654,256)
(282,857}
Total Salaries and Benefits
14,982,013
5,395,141
6,854,165
12,820,513
1,653,299
41,705,131
44,325,726
2,620,595
Directors' Fees and Expense
66,100
-
-
-
66,100
109,595
43,495
Chemicals
-
-
-
1,112,138
396,372
1,508,510
1,771,000
262,490
Utilities
142,152
60,225
54,580
3,389,243
509,650
4,155,850
4,630,000
474,150
Repairs and Maintenance
3001,861
95,781
615,502
1,735,199
224,052
2,972,395
3,494,786
522,391
Hauling and Disposal
-
508,736
47,748
369,978
17,932
944,394
1,033,461
89,067
Professional and Legal Services
365,801
82,871
8,293
40,961
-
497,926
500,160
2,234
Outside Services
954,670
367,801
87,169
442,489
75,560
1,927,689
2,139,600
211,911
Materials and Supplies
164,188
181,739
729,517
834,620
34,703
1,944,767
1,939,725
(5,042)
Self Insurance
850,000
-
-
-
-
850,000
850,000
-
Other
605,844
163,451
132,517
614,924
27,130
1,543,866
2,171,668
627,802
$18,432,629
$6,855,745
$8,529,491
$21,360,065
$2,938,698
$58,116,628
$$62j65
$ 4,849,093
The accompanying notes are an integral part of the financial statements
36
CENTRAL CONTRA COSTA SANITARY DISTRICT
Running Expense
Schedule of Supplemental Net Assets Analysis
June 30, 2011
Prior Year Balance
2010 - 2011 Revenue
2010 - 2011 Expense
Add Back Depreciation Expense
Net Assets Attributed to General Operations
All Other Net Assets
Running Expense Net Assets
$ 7,855,585
$ 60,743,358
(79,260,246)
20, 580,061 2,063,173
9,918,758
582,442,534
$ 592,361,292
The accompanying notes are an integral Part of the financial statements
37
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I
Central Contra Costa Sanitary District
Statistical
Section
Central Contra Costa Sanitary District
28,095,636
27,989,401
29,875,340
34,678,665
37,312,472
39,440,034
39,986,763
41,705,131
5,735,379
Changes in Net Assets and Statement of Net Assets
6,801,750
7,646,866
8,759,490
8,952,840
9,368,755
7,973,992
7,609,127
2,084,830
Last Nine Fiscal Years
2,350,387
2,850,825
2,298,712
2,613,658
2,832,001
2,129,552
2,425,615
3,557,171
3,871,749
Changes in Net Assets
2002 -2003
2003 -2004
2004 -2005
2005 -2006
2006 -2007
2007 -2008
2008 -2009
2009 -2010
2010 -2011
Operating Revenues:
(180,716)
(215,004)
90,876
(688,859)
119,051
14,527,871
15,186,594
16,041,555
16,354,488
Sewer Service Charges (SSC)
31,967,101
33,935,899
32,282,806
37,781,774
35,057,668
40,207,157
43,087,454
48,692,520
49,095,870
City of Concord
6,321,452
6,609,602
6,603,000
7,383,011
9,043,215
8,206,860
8,755,857
8,664,668
9,224,952
Other Service Charges
633,037
648,617
672,887
755,827
793,395
869,589
872,978
824,022
913,017
Miscellaneous Charges
506,812
560,454
612,851
517,741
863,843
595,980
667,855
650,876
662,721
Total Operating Revenue
39,428,402
41,754,572
40,171,544
46,438,353
45,758,121
49,879,586
53,384,144
58,832,086
59,896,560
Operating Expenses:
Salaries & Benefits
Chemicals, Utilities & Supplies
Professional & Outside Services
Hauling, Disposal, Repairs & Maintenance
Self- Insurance (net of transfers)
Depreciation
All Other
Total Operating Expenses
Operating Loss
Non - Operating Revenues (Expenses):
Property Taxes *
Connection & Other Fees
Interest Income
Interest Expense
All Other *
Total Non- Operating
Income Before Contributions and Transfers
Customer Contributions"
Contributed Sewer Lines
Capital Contributions - Connection Fees
CHANGE IN NET ASSETS
Total Net Assets - Beginning
Total Net Assets - Ending
24,919,820
28,095,636
27,989,401
29,875,340
34,678,665
37,312,472
39,440,034
39,986,763
41,705,131
5,735,379
5,808,070
6,801,750
7,646,866
8,759,490
8,952,840
9,368,755
7,973,992
7,609,127
2,084,830
2,282,408
2,350,387
2,850,825
2,298,712
2,613,658
2,832,001
2,129,552
2,425,615
3,557,171
3,871,749
3,716,176
3,826,165
4,105,082
3,863,555
3,938,129
3,808,635
3,916,789
407,007
464,702
1,189,693
629,513
(180,716)
(215,004)
90,876
(688,859)
119,051
14,527,871
15,186,594
16,041,555
16,354,488
17,714,714
18,615,747
19,417,941
20,969,429
20,580,061
1,243,345
1,267,809
1,437,272
1,330,946
2,144,082
2,378,941
2,305,459
2,658,662
2,459,966
52,475,423
56,976,968
59,526,234
62,514,143
69,520,029
73,522,209
77,393,195
76,838,174
78,815,740
(13,047,021)
(15,222,396)
(19,354,690)
(16,075,790)
(23,761,908)
(23,642,623)
(24,009,051)
(18,006,088)
(18,919,180)
8,801,230
8,919,327
4,010,380
4,836,301
11,762,731
12,254,168
12,539,375
12,260,123
12,213,624
1,479,870
2,936,298
4,265,620
2,062,216
1,615,308
1,335,160
1,093,756
776,348
895,825
925,509
831,215
1,519,192
2,465,985
3,257,773
2,527,621
1,033,095
570,024
673,990
(1,153,349)
(1,101,115)
(1,775,857)
(1,694,304)
(1,609,104)
(1,518,142)
(1,421,686)
(1,553,467)
(2,061,903)
1,076,654
1,467,877
1,109,716
1,096,401
1,316,383
1,243,817
639,523
12,295
(523,209)
11,129,914
13,053,602
9,129,051
8,766,599
16,343,091
15,842,624
13,884,063
12,065,323
11,198,327
(1,917,107)
(2,168,794)
(10,225,639)
(7,309,191)
(7,418,817)
(7,799,999)
(10,124,988)
(5,940,765)
(7,720,853)
7,833,641
10,187,725
14,716,585
9,862,620
15,945,915
14,970,637
13,938,421
6,793,040
5,018,092
7,818,537
4,410,808
5,530,848
3,044,945
3,521,704
1,444,420
1,231,022
1,840,259
533,616
5,530,064
6,585,984
10,728,717
10,496,898
8,917,658
9,259,160
5,025,493
7,078,635
3,515,804
19,265,135
19,015,723
20,750,511
16,095,272
20,966,460
17,874,218
10,069,948
9,771,169
1,346,659
487,642,776
506,907,911
525,923,634
546,674,145
562,769,417
583,735,877
601,610,095
611,680,043
621,451,212
506,907,911
525,923,634
546,674,145
562,769,417
583,735,877
601,610,095
611,680,043
621,451,212
622,797,871
Statement of Net Assets
2002 -2003
2003 -2004
2004 -2005
2005 -2006
2006 -2007
2007 -2008
2008 -2009
2009 -2010
2010 -2011
Investments in Capital Assets, Net of Related Debt
443,350,151
453,251,761
469,375,715
486,098,303
513,580,658
531,119,639
552,165,498
531,324,187
541,613,208
Restricted for Debt Service
4,484,542
3,035,944
3,118,704
3,647,257
3,216,163
3,185,416
3,163,956
4,565,970
4,612,103
Unrestricted
59,073,218
69,635,929
74,179,726
73,023,857
66,939,056
67,305,040
56,350,589
85,561,055
76,572,560
Total Net Assets
506,907,911
525,923,634
546,674,145
562,769,417
583,735,877
601,610,095
611,680,043
621,451,212
622,797,871
* Includes Prop 1A loan receivable revenue and offset of $985,916. The revenue is offset by the provision for losses categorized in other.
"
Classification reclassed 2010 -11, prior years reclassed for consistency. Previously included in Non -Operating. Includes capital cost contributions from the City of Concord and customer contributions (SSC).
The District implemented GASB 34 in the 2002 -2003 fiscal year, one year earlier than required.
Source: Central Contra Costa Sanitary District Audited Financial Statements
S -1
$100,000,000
Sewer Service
Charges*
$90,000,000
- -- -
$60,000,000
All
Other
$70,000,000
2001 -2002
$ 31,228,855 $
5,897,008
$ 617,768
$60,000,000
$
38,252,547
2002 -2003
31,967,101
10 $50,000,000
633,037
506,812
1,076,654
39,428,402
0
33,935,899
6,609,602
648,617
560,454
p $40,000,000
41,754,572
2004 -2005
32,282,806
6,603,000
$30,000,000
612,851
1,109,716
40,171,544
2005 -2006
$20,000,000
7,383,011
755,827
517,741
1,096,401
$10,000,000
2006 -2007
35,057,668
9,043,215
793,395
$-
1,316,383
45,758,121
2007 -2008
40,207,157
Central Contra Costa Sanitary District
Revenue By Type
Last Ten Fiscal Years
2001 -2002 2002 -2003 2003 -2004 2004 -2005 2005 -2006 2006 -2007 2007 -2008 2008 -2009 2009 -2010 2010 -2011
Fiscal Year
❑Operating Revenue ❑Non- Operating Revenue
Operating Revenue
Fiscal
Year
Sewer Service
Charges*
City of
Concord
Other Service
Charges
Miscellaneous
Charges
All
Other
Total
Operating
2001 -2002
$ 31,228,855 $
5,897,008
$ 617,768
$ 508,916
$
38,252,547
2002 -2003
31,967,101
6,321,452
633,037
506,812
1,076,654
39,428,402
2003 -2004
33,935,899
6,609,602
648,617
560,454
1,467,877
41,754,572
2004 -2005
32,282,806
6,603,000
672,887
612,851
1,109,716
40,171,544
2005 -2006
37,781,774
7,383,011
755,827
517,741
1,096,401
46,438,353
2006 -2007
35,057,668
9,043,215
793,395
863,843
1,316,383
45,758,121
2007 -2008
40,207,157
8,206,860
869,589
595,980
1,243,817
49,879,586
2008 -2009
43,087,454
8,755,857
872,978
667,855
639,523
53,384,144
2009 -2010
48,692,520
8,664,668
824,022
650,876
998,211
58,832,086
2010 -2011
49,095,870
9,224,952
913,017
662,721
-
59,896,560
Non - Operating Revenue
Fiscal
Year
Property
Taxes *1
Customer
Contributions *2
Connections
& Other Fees *3
Interest
All
Other
Total Non - Operating
& Contributions
2001 -2002 $
7,551,581
$ 19,006,658
$ 5,385,527 $
1,498,751 $
1,032,527
$ 34,475,044
2002 -2003
8,801,230
15,652,178
7,009,934
925,509
1,076,654
33,465,505
2003 -2004
8,919,327
14,598,533
9,522,282
831,215
1,467,877
35,339,234
2004 -2005
4,010,380
20,247,433
14,994,337
1,519,192
1,109,716
41,881,058
2005 -2006
4,836,301
12,907,565
12,559,114
2,465,985
1,096,401
33,865,366
2006 -2007
11,762,731
19,467,619
10,532,966
3,257,773
1,316,383
46,337,472
2007 -2008
12,254,168
16,415,057
10,594,320
2,527,621
1,243,817
43,034,983
2008 -2009
12,539,375
15,169,443
6,119,249
1,033,095
639,523
35,500,685
2009 -2010
12,260,123
8,633,299
7,854,983
570,024
998,211
30,316,640
2010 -2011
12,213,624
5,551,708
4,411,629
673,990
-
22,850,951
* Sewer Service Charge (SSC) represents the Running Expense Fund portion of SSC County collections along with District direct billings and counter collections.
*1 2009 -2010 property taxes includes Prop 1A loan receivable revenue of $985,916.
*2 Customer Contributions include the portion of SSC that is allocated to Sewer Construction Fund, City of Concord reimbursement of capital costs, and developer
contributed sewer lines beginning in 2000 -2001, due to changes in GASB 33 reporting requirements.
*3 Includes connection fees, non - operating permit, inspection, and other fees.
Source: Central Contra Costa Sanitary District Audited Financial Statements 8 -2
N
m
0
0
$80,000,000
$75,000,000
$70,000,000
$65,000,000
$60,000,000
$55,000,000
$50,000,000
$45,000,000
$40,000,000
$35,000,000
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
2001 -2002
Central Contra Costa Sanitary District
Operating Expenses by Type
Last Ten Fiscal Years
2002 -2003 2003 -2004
2004 -2005 2005 -2006
Fiscal Year
2006 -2007
2007 -2008 2008 -2009 2009 -2010 2010 -2011
❑ Salaries and Benefits ❑ Chemicals, Utilities & Supplies ❑ Professional & Outside Services
Hauling, Disposal, Repairs & Maintenance Self- Insurance ❑ Depreciation
Li All Other
OPERATING EXPENSES
Fiscal
Year
Salaries
and Benefits
Chemicals, Utilities
& Supplies
Professional &
Outside Services
Hauling, Disposal,
Repairs & Maintenance
Self- Insurance
Depreciation
All
Other
Total Operating
Expenses
2001 -2002
$ 22,848,114
$ 7,009,868
$ 2,110,886
$ 3,476,325
$ 677,159
$ 13,833,124
$ 745,605
$ 50,701,081
2002 -2003
24,919,820
5,735,379
2,084,830
3,557,171
632,007
14,527,871
1,018,345
52,475,423
2003 -2004
28,095,636
5,808,070
2,282,408
3,871,749
689,702
15,186,594
1,042,809
56,976,968
2004 -2005
27,989,401
6,801,750
2,350,387
3,716,176
1,189,693
16,041,555
1,437,272
59,526,234
2005 -2006
29,875,340
7,646,866
2,850,825
3,826,165
879,513
16,354,488
1,080,946
62,514,143
2006 -2007
34,678,665
8,759,490
2,298,712
4,105,082
519,284
17,714,714
1,444,082
69,520,029
2007 -2008
37,312,472
8,952,840
2,613,658
3,863,555
916,639
18,615,747
1,247,298
73,522,209
2008 -2009
39,440,034
9,368,755
2,832,001
3,938,129
958,906
19,417,941
1,437,429
77,393,195
2009 -2010
39,986,763
7,973,992
2,129,552
3,808,635
746,612
20,969,429
1,223,191
76,838,174
2010 -2011
41,705,131
7,609,127
2,425,615
3,916,789
1,003,115
20,580,061
1,575,902
78,815,740
* 2009 -2010 non - operating expenses includes Prop 1A loan receivable revenue offset of $985,916.
Source: Central Contra Costa Sanitary District Audited Financial Statements
S -3
Non - Operating
Expenses *
$ 1,202,782
1,153,349
1,101,115
1,775,857
1,694,304
1,609,104
1,518,142
1,421,686
2,539,383
2,585,112
Informational - not graphed
$350
$300
$250
U
(n $200
m
$150
Q
$100
$50
$0
Central Contra Costa Sanitary District
Major Revenue Base and Rates
Historical and Current Fees
Last Ten Fiscal Years
2001 -2002 2002 -2003 2003 -2004 2004 -2005
Fiscal Year
2001 -2002
2002 -2003
2003 -2004
2004 -2005
2005 -2006
2006 -2007
2007 -2008
2008 -2009
2009 -2010
2010 -2011
2005 -2006 2006 -2007 2007 -2008 2008 -2009 2009 -2010
Fiscal Year
Operations ■ Capital
2010 -2011
Annual Sewer Service Charge *1
Facility
Capacity Fee *2
Pump
Zone Fee *3
Operations Capital Total
$204 $20 $224
$3,360
$710
207 41 248
3,360
710
218 54 272
3,983
988
204 76 280
3,983
988
234 46 280
4,150
1,331
213 76 289
4,263
1,404
242 58 300
4,524
1,466
260 51 311
4,923
1,586
292 19 311
5,298
1,651
300 11 311
5,451
1,641
*1 All residential accounts pay a flat annual sewer service charge shown above per household. The charge for commercial users consists of an annual
rate based on a measured volume of water usage per 100 cubic feet (HCF).
*2 New users who are connected to the Wastewater System are charged Capital Improvement Fees called Facility Capacity Fees. Fee is per connection.
*3 New customers in areas where wastewater pumping stations are needed to reach the District's gravity fed sewers are charged a Pump Zone Fee.
Fee is per connection.
Source: Central Contra Costa Sanitary District Environmental Services Division
S -4
Customer
City of Concord*
Contra Costa County General Services
First Walnut Creek Mutual
Park Regency Apartments
Second Walnut Creek Mutual Apts
Sun Valley Mall
Archstone/Treat Commons Apartments
St. Mary's College Contract
Willows Shopping Center
Canyon Point Condominiums
Bay Landing Apartments
Muirland @ Windemere Apartments
Reflections San Ramon Apartments
Kaiser Foundation Hospital
John Muir Health
Total
Customer
City of Concord*
Contra Costa County General Services
Park Regency Apartments
Sun Valley Mall
Branch Creek Vista Apartments
Bay Landing Apartments
Archstone Apartments
Muirland @ Windemere Apartments
Kaiser Foundation Hospital
St. Mary's College Contract
John Muir Health
Chevron Offices & Office Park
Willows Shopping Center
Central Contra Costa Sanitary District
Sewer Service Charge
List Of Ten Largest Customers
Nine Fiscal Years
2002-2003
2003-2004
2004-2005
Percentage of
2005-2006
2006 -2007
Operating
Percentage of
Revenue
Percentage of
Revenue
Percentage of
Rank
Percentage
of
1
Percentage
of
Operating
16.40%
Operating
Operating
0.64%
Operating
Operating
0.60%
Operating
Operating
0.54%
Operating
Operating
0.52%
Operating
Revenue
Rank
Revenue
Revenue
Rank
Revenue
Revenue
Rank
Revenue
Revenue
Rank
Revenue
Revenue
Rank
Revenue
$ 6,321,452
1
16.03%
$ 6,609,602
1
15.83%
$ 6,603,000
1
16.44%
$ 7,383,011
1
15.90%
$ 9,043,215
1
19.76%
222,619
2
0.56%
250,442
3
0.60%
294,670
2
0.73%
295,173
2
0.64%
322,351
2
0.70%
206,246
3
0.52%
258,400
2
0.62%
266,000
3
0.66%
295,120
3
0.64%
-
-
197,408
4
0.50%
242,624
4
0.58%
249,760
4
0.62%
249,760
4
0.54%
257,788
3
0.56%
158,224
5
0.40%
204,000
5
0.49%
210,000
5
0.52%
210,000
5
0.45%
-
-
138,993
6
0.35%
145,169
6
0.35%
158,077
6
0.39%
169,916
6
0.37%
176,293
4
0.39%
126,480
7
0.32%
138,720
7
0.33%
142,800
7
0.36%
142,800
7
0.31%
101,150
9 -10
0.22%
106,497
8
0.27%
97,670
10
0.23%
-
-
117,119
10
0.25%
127,355
6
0.28%
103,321
9
0.26%
111,822
9
0.27%
120,459
9
0.30%
-
-
128,303
5
0.28%
86,304
10
0.22%
-
-
-
-
-
-
-
-
-
-
-
-
104,040
8
0.23%
-
-
-
-
-
-
101,150
9 -10
0.22%
134,912
8
0.32%
139,062
8
0.35%
139,062
8
0.30%
-
-
-
-
100,976
10
0.25%
126,904
9
0.27%
-
-
-
-
-
-
-
-
-
-
121,613
7
0.27%
$ 7,667,544
19.45%
$ 8,193,361
19.62%
$ 8,284,804
20.62%
$ 9,128,865
19.66%
$10,483,258
22.91%
2007
-2008
2008
-2009
2009 -2010
2010
-2011
165,561 5 0.28%
Total $10,021,683 20.09% $10,509,209 19.69% $10,201,900 17.34% $10,644,179 17.77%
Contract with the City of Concord to treat and dispose of wastewater for Concord and Clayton.
The District implemented GASB 34 in the 2002 -2003 fiscal year, one year earlier than required.
Source: Central Contra Costa Sanitary District Environmental Services Division
S -5
Percentage of
Percentage of
Operating
Operating
Operating
Operating
Revenue
Rank
Revenue
Revenue
Rank
Revenue
$ 8,206,860
1
16.45%
$ 8,755,857
1
16.40%
316,854
3
0.64%
320,866
3
0.60%
267,600
4
0.54%
277,412
4
0.52%
183,380
6
0.37%
190,734
5
0.36%
120,000
8
0.24%
124,400
8
0.23%
108,000
10
0.22%
111,960
10
0.21%
118,809
9
0.24%
112,727
9
0.21%
136,016
7
0.27%
126,222
6
0.24%
223,775
5
0.45%
125,292
7
0.23%
340,389
2
0.68%
363,739
2
0.68%
165,561 5 0.28%
Total $10,021,683 20.09% $10,509,209 19.69% $10,201,900 17.34% $10,644,179 17.77%
Contract with the City of Concord to treat and dispose of wastewater for Concord and Clayton.
The District implemented GASB 34 in the 2002 -2003 fiscal year, one year earlier than required.
Source: Central Contra Costa Sanitary District Environmental Services Division
S -5
Percentage of
Percentage of
Operating
Operating
Operating
Operating
Revenue
Rank
Revenue
Revenue
Rank
Revenue
$ 8,664,668
1
14.73%
$ 9,224,952
1
15.40%
305,880
2
0.52%
292,384
2
0.49%
277,412
3
0.47%
277,412
3
0.46%
197,566
4
0.34%
193,957
4
0.32%
124,400
7
0.21%
124,400
5
0.21%
111,960
8
0.19%
111,960
6
0.19%
108,850
9 -10
0.19%
108,850
7 -8
0.18%
108,850
9 -10
0.19%
108,850
7 -8
0.18%
136,753
6
0.23%
102,893
9
0.17%
-
-
98,521
10
0.16%
165,561 5 0.28%
Total $10,021,683 20.09% $10,509,209 19.69% $10,201,900 17.34% $10,644,179 17.77%
Contract with the City of Concord to treat and dispose of wastewater for Concord and Clayton.
The District implemented GASB 34 in the 2002 -2003 fiscal year, one year earlier than required.
Source: Central Contra Costa Sanitary District Environmental Services Division
S -5
Central Contra Costa Sanitary District
Assessed and Estimated Actual Valuation of Taxable Property
Last Ten Fiscal Years
Fiscal Year Local Secured
Unsecured
Total
% Change
2001 -2002
$ 40,166,666,299
$ 1,375,049,056
$ 41,541,715,355
5.8%
2002 -2003
43,172,880,129
1,434,598,034
44,607,478,163
7.4%
2003 -2004
46,821,339,668
1,446,650,234
48,267,989,902
8.2%
2004 -2005
50,577,841,843
1,416,240,351
51,994,082,194
7.7%
2005 -2006
55,586,311,888
1,463,536,750
57,049,848,638
9.7%
2006 -2007
61,409,513,246
1,533,076,135
62,942,589,381
10.3%
2007 -2008
66,416,736,187
1,583,187,663
67,999,923,850
8.0%
2008 -2009
68,888,723,534
1,738,606,038
70,627,329,572
3.9%
2009 -2010
68,640,287,188
1,723,710,536
70,363,997,724
-0.4%
2010 -2011
67,889,370,916
1,647,537,385
69,536,908,301
-1.2%
Fiscal Year
Property Tax and Sewer Service Charge Fees Levied and Collected
Last Ten Fiscal Years
Property Tax*
Levied & Collected
Sewer Service Charges*
% Change Levied & Collected % Change
2001 -2002
$ 7,901,161
9.3%
$ 33,650,005
15.0%
2002 -2003
8,460,674
7.1%
37,479,440
11.4%
2003 -2004
9,013,484
6.5%
41,499,031
10.7%
2004 -2005
4,027,427
-55.3%
43,327,756
4.4%
2005 -2006
4,856,758
20.6%
44,261,318
2.2%
2006 -2007
11,860,961
144.2%
46,694,671
5.5%
2007 -2008
12,092,637
2.0%
48,883,932
4.7%
2008 -2009
12,492,502
3.3%
50,743,258
3.8%
2009 -2010
11,253,233 **
-9.9%
50,896,210
0.3%
2010 -2011
12,171,725
8.2%
50,196,629
-1.4%
* General County taxes collected are the same as the amount levied since the County participates in California's alternative method of
apportionment called the Teeter Plan. The Teeter Plan as provided in Section 4701 et seq. of the State Revenue and Taxation Code,
establishes a mechanism for the County to advance the full amount of property tax and other levies to taxing agencies based on the
tax levy, rather than on the basis of actual tax collections. Although this system is a simpler method to administer, the County assu-
mes the risk of delinquencies. The County in return retains the penalties and accrued interest thereon.
*" Actual amount received from the County. Net of Prop 1A loan to state of $985,916.
Source: Contra Costa County Auditor - Controller's Office
S -6
Central Contra Costa Sanitary District
Summary Of Debt Service
Last Ten Fiscal Years
Debt Service Paid Each Fiscal Year
$5,000,000 - --
$4,500,000
$4,000,000
$3,500,000 -
y $3,000,000
o $2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0 - - -- --
ry�ry `LD�^� ry�p ryooy rLOp6 `LOp'1 ry�0 rLOp9 ryO,p rye,,
rye, ry�ry ry�� ry�A ry�0 `L Ri^ "P P,3 IPN"
® Revenue Bonds (2009, 2002 & 1998) ■ Water Reclamation Loan
Outstanding Debt Each Fiscal Year
In 2009, the District issued Bonds which retired the 2002 and 1998 bond
$60,000,000
I debt and gained $30 million in net proceeds dedicated to fund Capital Improvements.
$45,000,000
m
c $30,000,000
c
$15,000,000
$0
ry�,ryooti ry�ryryoa� a�A ry h ry�y ry�b � rye^ spa ��0 le 100
Note: Details regarding the District's outstanding debt can be found in the notes to the financial statements.
•1 Net Revenue = Operating Revenue less Total Operating Expenses less Depreciation plus Non - Operating Revenue & Contributions.
'2 This ratio must be above 1.00 to meet the Debt Rate Covenant (Net Revenue/Total Debt Service).
`3 Adjusted Net Revenue = Net Revenue less Capital Improvement Fees (Connection Fees) and City of Concord Capital Charges.
`4 This ratio must be above 1.25 to meet the Debt Rate Covenant (Adjusted Net Revenuelrotal Debt Service).
Source: Central Contra Costa Sanitary District Audited Financial Statements and Internal Accounting Records
S -7
Debt Restrictions:
Revenue Pledge & Covenant: The District pledges
Property Tax Revenue along with its ability to raise Sewer
Service Charge (SSC) rates. Debt Coverage requirements
are discussed in the footnotes to the left.
Summa By Type Of Debt
Revenue Bonds 2009, 2002 & 1998
..
Total Debt Service Annual Ex ense
• • =
•
•
Fiscal
Total
Total
Total
Revenue
• .
Year
Principal Interest Debt Service
Principal
Interest
Debt Service
Principal Interest Debt Service
Bonds
•
•
2001 -2002
$ 1,285,000
$ 993,407
$ 2,278,407
$ 120,952
$ 66,167
$ 187,119
$ 1,405,952
$ 1,059,574
$ 2,465,526
$ 38,645,000
$ 2,423,939
$ 41,068,939
2002 -2003
1,330,000
1,435,811
2,765,811
124,097
63,022
187,119
1,454,097
1,498,833
2,952,930
37,315,000
21299,842
39,614,842
2003 -2004
1,375,000
1,583,739
2,958,739
127,323
59,796
187,119
1,502,323
1,643,535
3,145,858
35,940,000
2,172,519
38,112,519
2004 -2005
1,995,000
1,719,372
3,714,372
130,634
56,485
187,119
2,125,634
1,775,857
3,901,491
33,945,000
2,041,885
35,986,885
2005 -2006
2,060,000
1,641,215
3,701,215
134,030
53,089
187,119
2,194,030
1,694,304
3,888,334
31,885,000
1,907,855
33,792,855
2006 -2007
2,135,000
1,559,500
3,694,500
137,515
49,604
187,119
2,272,515
1,609,104
3,881,619
29,750,000
1,770,340
31,520,340
2007 -2008
2,210,000
1,472,113
3,682,113
141,090
46,029
187,119
2,351,090
1,518,142
3,869,232
27,540,000
1,629,250
29,169,250
2008 -2009
2,300,000
1,379,326
3,679,326
144,759
42,360
187,119
2,444,759
1,421,686
3,866,445
25,240,000
1,484,491
26,724,491
2009 -2010
2,390,000
1,514,871
3,904,871
148,523
38,596
187,119
2,538,523
1,553,467
4,091,990
54,125,000
1,335,968
55,460,968
2010 -2011
3,460,000
1 2,027,168
1 5,487,168
1 152,385
1 34,734
1 187,119
1 3,612,385
1 2,061,903
1 5,674,288
1 50,665,000
1,183,583
1 51,848,583
Debt Service
Covera ge Summary
Debt Ratios
Total
Total Operating
Non - Operating
Debt Service
Capital
Debt Service
Annual Debt
Annual Debt
Total Debt
Fiscal
Debt
Operating
Expenses less
Revenue &
Net
Coverage
Improvement
Adjusted Net
Coverage
Service to
Service per
Outstanding
Year
Service
Revenue
Depreciation
Contributions
Revenue `1
(Net Revenue) `2
Fees /Concord
Revenue•3
(Adj. Net Revenue)`4
Operating Ex p.
Customer
Per Customer
2001 -2002
2,465,526
38,252,547
36,867,957
34,475,044
35,859,634
14.54
5,753,738
30,105,896
12.21
6.69%
16.11
268.30
2002 -2003
2,952,930
39,428,402
37,947,552
33,465,505
34,946,355
11.83
7,023,589
27,922,766
9.46
7.78%
19.12
256.54
2003 -2004
3,145,858
41,754,572
41,790,374
35,339,234
35,303,432
11.22
8,370,344
26,933,088
8.56
7.53%
20.21
244.83
2004 -2005
3,901,491
40,171,544
43,484,679
41,881,058
38,567,923
9.89
13,351,448
25,216,475
6.46
8.97%
24.65
227.41
2005 -2006
3,688,334
46,438,353
46,159,655
33,865,366
34,144,064
8.78
12,931,577
21,212,487
5.46
8.42%
24.08
209.29
2006 -2007
3,881,619
45,758,121
51,805,315
46,337,472
40,290,278
10.38
12,353,170
27,937,108
7.20
7.49%
23.58
191.51
2007 -2008
3,869,232
49,879,586
54,906,462
43,034,983
38,008,107
9.82
14,595,433
23,412,674
6.05
7.05%
23.29
175.56
2008 -2009
3,866,445
53,384,144
57,975,254
35,500,685
30,909,575
7.99
10,511,351
20,398,224
5.28
6.67%
23.33
161.26
2009 -2010
4,091,990
58,832,086
55,868,745
30,316,640
33,279,981
8.13
10,707,584
22,572,397
5.52
7.32%
24.47
331.68
2010 -2011
5,674,288
59,896,560
1 58,235,679
1 22,850,951
1 24,511,832
1 4.32
6,731,994
1 17,779,838
1 3.13
1 9.74%1
34.67
1 316.81
Note: Details regarding the District's outstanding debt can be found in the notes to the financial statements.
•1 Net Revenue = Operating Revenue less Total Operating Expenses less Depreciation plus Non - Operating Revenue & Contributions.
'2 This ratio must be above 1.00 to meet the Debt Rate Covenant (Net Revenue/Total Debt Service).
`3 Adjusted Net Revenue = Net Revenue less Capital Improvement Fees (Connection Fees) and City of Concord Capital Charges.
`4 This ratio must be above 1.25 to meet the Debt Rate Covenant (Adjusted Net Revenuelrotal Debt Service).
Source: Central Contra Costa Sanitary District Audited Financial Statements and Internal Accounting Records
S -7
Debt Restrictions:
Revenue Pledge & Covenant: The District pledges
Property Tax Revenue along with its ability to raise Sewer
Service Charge (SSC) rates. Debt Coverage requirements
are discussed in the footnotes to the left.
As Of January 1
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Central Contra Costa Sanitary District
Demographic and Economic Data
Population Served
Last Ten Calendar Years
Inside District
Boundaries
293,080
302,675
303,980
308,428
309,600
314,400
317,340
322,200
326,600
321,800
Source: Central Contra Costa Sanitary District Environmental Services Division
Employers
Concord/
Clavton
134,920
135,900
135,845
135,780
135,400
134,300
134,560
134,000
135,400
133,600
Total
Served
428,000
438,575
439,825
444,208
445,000
448,700
451,900
456,200
462,000
455,400
List of Ten Largest Employers in Contra Costa County
Last Year and Nine Years Ago
Chevron Corporation
Kaiser Foundation Hospital
John Muir Medical Center
Bio -Rad Laboratories
John Muir /Mt. Diablo Medical Center
24 Hour Fitness
Doctors Medical Center
USS Posco Industries
Contra Costa Newspapers, Inc.
Bank of the West
Kaiser Permanente
Aetna Health Services
All Others
2000
Estimated
6
% of Total County
Employees
Rank
Employment
3,500
2
0.7%
2,300
3
0.5%
1,900
4
0.4%
1,500 5 0.3%
1,000
6
0.2%
975
7
0.2%
900
8
0.2%
700
9
0.1%
5,000
1
1.0%
600
10
0.1%
464,025
482,400
96.3%
100.0%
Change
0.4%
2.5%
0.3%
1.0%
0.2%
0.8%
0.7%
1.0%
2.2%
-0.2%
41I1I'11
Estimated
% of Total County
Employees
Rank
Employment
4,700
1
1.0%
2,300
2
0.5%
1,900
3
0.4%
1,700
4
0.4%
1,500
5
0.3%
1,300
6
0.3%
1,000
7
0.2%
975
8
0.2%
900
9
0.2%
800
10
0.2%
456,725
473,800
Source: County of Contra Costa, California, Comprehensive Annual Financial Report for 6/30/10, Statistical Section, excludes government employers
2010 and 2001 data not available. S -8
96.4%
100.0%
Central Contra Costa Sanitary District
Demographic and Economic Statistics
Contra Costa County
Last Ten Fiscal Years
Fiscal Year
Per Capita
Average Annual
Ended
Personal
Personal
Unemployment
June 30
Population*
Income*
Income*
Rate **
2001
971,487
44,599,837,000
45,909
4.1%
2002
980,446
44,709,373,000
45,601
5.7%
2003
987,662
45,775,727,000
46,348
6.1%
2004
992,747
48,923,798,000
49,281
5.4%
2005
999,271
51,534,263,000
51,572
4.9%
2006
1,001,303
55,318,933,000
55,247
4.3%
2007
1,010,542
58,043,926,000
57,438
4.7%
2008
1,025,464
59,711,162,000
58,228
6.1%
2009
1,041,274
59,043,740,000
56,703
10.2%
2010
N/A
N/A
N/A
11.2%
N/A - Information not available at this time.
* U.S. Department of Commerce, Bureau of Economic Analysis, 2001 -2008 updated, estimates as of April 2011.
** State of California, Employment Development Department (EDD), annual calendar figure. Years 2008 -2009 revised.
S -9
Central Contra Costa Sanitary District
Full -time Equivalent Employees by Department
Last Ten Fiscal Years
Full -time Equivalent Employees as of June 30
Department
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Administration
42
43
42
43
42
42
45
45
45
44
Engineering
67
70
71
76
73
75
76
80
76
75
Operations
Collection Systems
42
44
45
46
49
50
50
52
47
44
Plant
81
82
82
81
88
83
77
82
78
74
Pumping Station
7
8
9
9
9
10
11
10
10
8
Operations Total
130
134
136
136
146
143
138
144
135
126
District Total
247
261
245
259
269
256
239
255
249
260
Number of Retirees and Surviving Spouses as of June 30
Last Ten Fiscal Years
District Total 156 159 163 167 167 177 178 187 201 215
S -10
Central Contra Costa Sanitary District
Capital Asset and Operating Statistics
Last Ten Calendar or Fiscal Years
Treatment Plant
Treatment Plant Permitted Capacity
Average Dry Weather Flow (ADWF)
Wastewater Treated per day
Sludge to Furnace (Dry)*1
Ash to Reuse Site (Wet)•2
Year
2001
2002
Millions of Gallons per Day (mgd)
2003 2004 2005 2006
2007
2008
2009
2010
Calendar
45.0
53.8
53.8
53.8
53.8
53.8
53.8
53.8
53.8
53.8
Calendar
38.4
39.4
40.0
40.6
41.4
41.6
38.6
36.6
32.5
38.9
Calendar
42.1
43.1
42.9
44.7
48.0
50.4
41.2
41.0
37.0
40.6
Tons per Year
1.6 mgd
1.5 mgd
Calendar
20
20
21
23
24
30
30
Fiscal
16,881
16,318
16,053
16,727
15,841
15,341
15,340
15,212
15,299
15,056
Fiscal
5,226
5,235
5,384
5,397
5,074
4,418
4,418
4,177
4,082
3,814
`1 In the multi -hearth furnace, the wet sludge is converted to dry ash. Water is added to the dry ash as it is loaded into trucks (ratio of 60 percent ash to 40 percent water) to prevent the ash from blowing out of the truck during transport.
'2 Wet sludge, which at 22 to 28 percent solids, is pumped to the multiple -hearth furnace for incineration. The table above shows the dry tons per year of sludge to the furnace, excluding the 72 to 78 percent water in the wet sludge.
Collection Systems /Pumping Stations /Outfall Sewers
Pipeline Miles
Number of pumping stations
Recycled Water
Recycled Water Produced per day
Number of Recycled Water Customers
Household Hazardous Waste (HHW) - Inception 1997/1998
Residential Participation (Number of cars)
Percentage of Households in Service Area
Operating Cost per Car
Pounds of HHW per Car
Miscellaneous Statistics
Governing Body:
Governmental Structure:
Staff:
Authority:
Services:
Type Of Treatment:
Service Area:
Total Population Served:
Sewer Service Charge:
Other Data
Calendar
1,400
1,400
1,400
1,400
1,500
1,500
1,500
1,500
1,500
1,500
Calendar
21
22
20
21
17
17
17
17
17
16
Calendar
1.5 mgd
1.5 mgd
1.4 mgd
1.5 mgd
1.5 mgd
1.6 mgd
1.6 mgd
1.5 mgd
1.6 mgd
1.5 mgd
Calendar
20
20
21
23
24
30
30
31
30
33
Fiscal
17,308
19,219
22,359
23,061
22,872
23,992
26,447
28,270
29,347
29,441
Fiscal
9.3%
10.5%
12.1%
12.3%
12.1%
12.3%
13.6%
14.4%
15.0%
15.6%
Fiscal
$ 67
$ 66
$ 62
$ 58
$ 60
$ 64
$ 61
$ 76
$ 76 $
82
Fiscal
77
72
71
64
65
80
71
67
65
68
Elected 5- Member Board of Directors
Established in 1946 under the Sanitary District Act of 1923
245 full -time equivalent employees
California Health and Safety Code Section 4700 et. Seq.
Wastewater collection, treatment, and disposal
Household Hazardous Waste Facility
Recycled Water
Discharge - Secondary; Reclamation - Tertiary
143 square miles
455,400
$311 annually per residential equivalent unit
Source: Central Contra Costa Sanitary District records. S-11