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HomeMy WebLinkAbout06.a.1) Financial Analysis re possible funding alternatives for UAAL1 2012 1 Contra Costa County Employees' Retirement Association UAAL FINANCING ANALYSIS *"wo� �ftk i _ o .o o0 3.66? 04 �tl 1 .946.49 2_339.93 63.30 21 14 112 92 �a x) PN� Please see accompanying report. �� S Central Contra Costa Sanitary District March 9, 2012 TO: BOARD OF DIRECTORS VIA: JAMES M. KELLY, GENERAL MANAGER ANN FARRELL, WENERAL MAN GER /DIRECTOR OF ENGINEERING FROM: LL M. MUSGRAVES, DIRECTOR OF ADMINISTRATION BBIE RATCLIFF, CONTROLLER COLETTE CURTIS- BROWN, FINANCE ADMINISTRATOR. SUBJECT: CONTRA COSTA COUNTY EMPLOYEES' RETIREMENT ASSOCIATION ( CCCERA) UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAAL) FINANCIAL ANALYSIS The Board of Directors directed staff to evaluate approaches to determine the most cost effective approach to funding the District's retirement UAAL. There are three basic ways to fund the UAAL. 1) Have CCCERA finance at the 7.75% assumed rate of return 2) Raise rates and pay cash in excess of the annual UAAL requirement 3) Debt finance all or a portion of the UAAL Staff analyzed several scenarios for each method. In summary, the analysis confirmed what we hypothesized. The more and the sooner the District can pay on the UAAL in excess of the annual requirement, the more savings accrue from reduced interest expense. Cash payments generated from raising rates create the greatest savings. Debt financing using Revenue Bonds at 3.25% saves more interest expense than Pension Obligation Bonds at 4.86% and more than at the 7.75 %, CCCERA's Discount Rate. After analyzing the impact on interest rates, Sewer Service Charge (rates), availability of debt financing, and future regulatory requirements that may create a need for bonding capacity, staff has concluded that a hybrid of raising rates over the next three years and debt financing up to $75 million using Revenue Bonds yields the best balance of raising Sewer Service Charge rates and preserving bonding capacity for future needs. UAAL Financing Analysis March 9, 2012 Page 2 of 2 The attached report analyzes the following options to fund the retirement UAAL. Fund the UAAL based upon CCCERA's adopted amortization schedule and interest rate of 7.75 %. 2. Significantly increase the Sewer Service Charge and pay off the UAAL with cash thereby saving all interest expense. 3. Debt Finance the entire UAAL using Revenue and /or Pension Obligation Bonds and increase the Sewer Service Charge to pay off the principal and interest thereby saving interest expense as compared to the 7.75% charged by CCCERA. 4. Debt Finance a portion of the UAAL using Revenue and /or Pension Obligation Bonds and increase the Sewer Service Charge to pay off the remainder of the UAAL thereby saving interest expense as compared to the 7.75% charged by CCCERA. Staff analysis has documented'that significant savings are possible by prepaying the UAAL to avoid or reduce the 7.75% interest charged by CCCERA. However, there is a concern that the District has limited control over the funds once payments are made to CCCERA. This raises a number of questions, such as: Can we require that CCCERA sequester our funds such that they are credited only to the District? What happens in the future if we become overfunded due to possible changes to our benefit structure? Therefore, staff is recommending a two -step process as follows: Request a written agreement from CCCERA identifying the payoff method for the UAAL and the rules and procedures for early payment. Receive confirmation that CCCERA will remain de- pooled, allowing monies paid by the District to CCCERA be credited only to the District's payoff of the UAAL. Obtain clarification on how future over or under funding with CCCERA will be addressed. If all of these questions can be answered and an appropriate agreement crafted to protect the District's interests, then consider proceeding to step two. 2. If the Board receives a favorable response from CCCERA, conduct additional analysis and discussions to determine whether to proceed with prepaying the UAAL and to select the optimum approach. It is recommended that this step take place after the new finance manager has been selected so that person is intimately involved in the analysis and decision making regarding this important issue. EXECUTIVE SUMMARY The Board of Directors directed staff to develop a financial analysis to determine the most cost effective approach to funding the District's retirement UAAL. This document includes a higher level summary, followed by a more detailed analysis. The subject matter is complex. Staff will attend the Budget and Finance Committee meeting on March 12" to provide a detailed discussion and present an overview to the full Board on March 15'h. ESTIMATED UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAAL) The District's UAAL is currently approximately $100 million and is projected to increase to approximately $122.8 million due to past asset market value loss. A $120 million UAAL is used in this report, as shown below in Table 1, along with years amortized, CCCERA's assumed rate, and the estimated annual payment for each year. Fiscal Year Table 1 / Executive Summary Current and Projected CCCERA UAAL Years UAAL Amortized 2009-10 $ 36,483,000 2010-11 $ 3,296,000 2011 -12 $ 31,239,235 2012-13 $ 28,823,145 2013 -14 (estimated) $ 20,158,620 Total Projected 2014 -15 UAAL $120,000,000 INVESTMENT RATE OF RETURN $12,361,776 The Board is well aware of CCCERA's target rate of return at 7.75 %, equal to CaIPERS. The assumed rate of return has been recently criticized. Many financial professionals and economists believe it should be reduced to 4 -6 %. In the Actuarial Evaluation report as of December 31, 2010 Segal Company staff reported that the ten year average for Market Value Investment Return was 4.48 %, for Actuarial Value Investment Return was 4.99% and for Valuation Value Investment Return it was 5.61 %, see Attachment C. In addition, Milliman, CCCERA's Investment Advisor, reports that the ten year rate of return on investments for CCCERA has been 5.7 %, see Attachment D. Staff requested Bartel and Associates to apply the impact of a 5% and a 6% return on investments on the District's UAAL; this resulted in an UAAL increase from $122.8 million to approximately $166 million and $159 million respectively. Accordingly, this report assumes a minimum of $120 million UAAL for the District to consider paying off. Assumed Rate Annual Payment 13 7.75% $4,225,172 17 7.75% $ 329,777 18 7.75% $3,040,093 18 7.75% $2,804,968 18 7.75% $1,961,766 $12,361,776 The Board is well aware of CCCERA's target rate of return at 7.75 %, equal to CaIPERS. The assumed rate of return has been recently criticized. Many financial professionals and economists believe it should be reduced to 4 -6 %. In the Actuarial Evaluation report as of December 31, 2010 Segal Company staff reported that the ten year average for Market Value Investment Return was 4.48 %, for Actuarial Value Investment Return was 4.99% and for Valuation Value Investment Return it was 5.61 %, see Attachment C. In addition, Milliman, CCCERA's Investment Advisor, reports that the ten year rate of return on investments for CCCERA has been 5.7 %, see Attachment D. Staff requested Bartel and Associates to apply the impact of a 5% and a 6% return on investments on the District's UAAL; this resulted in an UAAL increase from $122.8 million to approximately $166 million and $159 million respectively. Accordingly, this report assumes a minimum of $120 million UAAL for the District to consider paying off. Executive Summary Page 2 of 9 It should also be noted that if CCCERA reduces its assumed rate of return, it will result in an increase in the normal cost for the employee and employer share. SCENARIOS There are three basic ways to fund the UAAL: 1) have CCCERA finance at their assumed 7.75 rate of return, 2) raise rates and pay cash in excess of the UAAL requirement, and 3) and /or debt financing. To assist the Board in determining the best financing method, staff developed several scenarios for cash, debt financing and combinations of both. Staff originally developed two scenarios to increase the sewer service charge an additional $10 and $20 dollars above the increase to pay CCCERA given the amortization periods and interest expense at 7.75 %. After the scenarios were developed the Budget and Finance Committee asked for scenarios at the $40 -$60 level. The following page and Attachment E is a summary of the options staff developed for the financial analysis and Board review. If the District chose to pay the CCCERA UAAL over the amortized life of the liability, the payments would be at the CCCERA rate of return rate of 7.75 %. If the District raised rates and paid the UAAL off sooner, it would in effect lower the interest rate paid, and realize a savings over what would have been paid to CCCERA otherwise. If the District sold Revenue Bonds and /or Pension Obligation Bonds at a lower interest rate, then savings would be realized also. Staff analyzed cash scenarios (1A -2B), Revenue Bonds versus Pension Obligation Bonds (3A -4C), Revenue Bonds Plus Cash (5A- C,7A -C, 9A -C), and Revenue Bonds Plus Pension Obligation Bonds (6A -C, 8A- C,10A -C). As previously noted, additional Cash scenarios are presented in the body of the report. The debt financing scenarios have three scenarios for length of term for 15 years, 20 years and 30 years. Staff recommends a 15 year term since the CCCERA amortization period is 18 years. CCCERA Payment Schedule at 7.75% Interest Base Line Scenarios 1 A and 1 B - Staff developed the Base Line Scenarios, 1A and 1B for $100 million and $120 million UAAL, respectively. The scenarios simply pay CCCERA the annual UAAL portion of the District's total contributions over the life of the liability. The unfunded liability was divided by the years left to pay off the unfunded liability (Years Amortized), thus yielding an annual payment for the multiple unfunded liabilities, see Table 2 for $120 million. This option incorporates the CCCERA 7.75% rate of return. UAAL FINANCIAL ANALYSIS SUMMARY SCENARIOS ANALYZED Scenario 1A Scenario 1 B Base Line Base Line Scenario 2A Scenario 26 S10 SSChq Increase $20 SSCh9 Increase Cash Payments $100 million S120 million $120 million $120 million Pension Obligation Bonds Pension Obligation Bonds Revenue Bonds S 120 million 5120 million S 120 million Revenue Bonds Financing Term Length 21 years 21 years 15 Years 13 Years Interest Rate 7.75% 7.75% 20 years 30 Years Average Annual Debt Payment $7,892,598 S9,574,112 $11,284,294 $11,672,295 Total Cost $165,744,550 S201,056,351 $169,264,405 $151,739,834 Savin s Compared to Scenario 1B I Base Scenario Base Scenario 1 $31,791,946 1 S49,316,517 Scenario 3A Scenario 3B Scenario 3C Rev Bonds Rev Bonds Rev Bonds Scenario 4A Scenario 4B Scenario 4C PO Bond PO Bond PO Bond Cash Payments $45 Million $45 Million $45 Million Pension Obligation Bonds S 120 million 5120 million S 120 million Revenue Bonds $120 million $120 million 120 million $75 Million $75 Million $75 Million Financing Term Length 15 years 20 years 30 Years 15 years 20 years 30 years Interest Rate 3.28% 3.89% 4.50% 4 86', 5.63% 6.06% Average Annual Debt Service $11,719,083 $10,081,563 $8,709,827 $13,150,507 $11,855,586 $10,576,144 Total Cost (Debt & Cash Payments) $172,400,739 $198,718,808 $257,665,717 $193,458,577 $233,686,777 $312,877,599 Savin s Compared to Scenario 18 I 528.655.612 S2.337,543 (S56,609.366) I S7,597,774 (S32.630,426) ($111.821.248) Scenario 5A Scenario 5B Scenario 5B Rev Bonds+ Cash Rev Bonds + Cash Rev Bonds + Cash Scenario 6A Scenario 6B Scenario 66 Rev + PO Bonds Rev + PO Bonds Rev + PO Bonds Cash Payments $45 Million $45 Million $45 Million Pension Obligation Bonds $45 million $45 million $45 million Revenue Bonds $75 Million $75 Million $75 Million $75 Million $75 Million $75 Million Financing Tenn Length -Bonds 15 years 20 years 30 years 15 years 20 years 30 years Interest Rate 3.20% 3.84% 4.59% 4.6891./ 3.20% 5.51% / 3.84% 6.18 °i� / 4.59% Average Annual Debt Service $7,400,964 $6,401,167 $5,710,271 $12,421,303 $11,018,465 $9,980,346 Average Annual Cash Payment $8,725,030 $8,725,030 $8,725,030 Financing Term Length -Cash 6 Years 6 Years 6 Years Total Cost (Debt & Cash Payments) $160,280,908 5177,706,367 $221,279,021 $181,144,008 $215,778,279 $295,251,890 Savin s Com ared to Scenario 1 B $40,775,443 $23.349.984 ($20.222.670) 1 519.912.343 iS14.721.928i I (S94.195.539) Scenario 7A Scenario 7B Scenario 7C Rev Bonds + Cash Rev Bonds + Cash Rev Bonds + Cash Scenario 8A Scenario 8B Scenario 8C Rev + PO Bonds Rev + PO Bonds Rev + PO Bonds Cash Payments $35 Million $35 Million $35 Million Pension Obligation Bonds ti35 Million $35 Million $35 Million Revenue Bonds $85 Million $85 Million $85 Million $85 Million $85 Million $85 Million Financing Term Length 15 Years 20 Years 30 Years 15 years 20 years 30 years Interest Rate 3.12% 3.82% 4.56% 4.71 °. / 3.12% 5.56% / 3.82% 6.19 °l. / 4.56% Average Annual Debt Service $8,324,011 $7,201,136 $6,385,085 $12,273,316 $10,861,690 $9,748,238 Average Annual Cash Payment $7,846,563 $7,846,563 $7,846,563 Financing Tenn Length -Cash 5 Years 5 Years 5 Years Total Cost (Debt & Cash Payments) $160,624,637 $180,255,066 $228,124,916 $178,985,850 $212,708,093 $288,385,367 Savin s Compared to Scenario 1B S40,431,714 $20.801.285 1 (S27,068.565) $22.070,501 1 (S 11,651,742) 1 ($87.329.016) Scenario 9A Scenario 9B Scenario 9C Rev Bonds + Cash Rev Bonds + Cash Rev Bonds + Cash Scenario 10A Scenario 10B Scenario10C Rev + PO Bonds Rev + PO Bonds Rev + PO Bonds Cash Payments $30 Million $30 Million $30 Million Pension Obligation Bonds $30 Million $30 Million $30 Million Revenue Bonds $90 Million $90 Million $90 Million $90 Million $90 Million $90 Million Financing Term Length 15 years 20 years 30 years 15 years 20 years 30 years Interest Rate 3.12% 3.81% 4.59% 4.73% / 3.12% 5.60% /3.81% ° 6.19/0/4.59/0 Average Annual Debt Service $8,804,687 $7,600,951 $6,718,430 $12,218,595 $10,783,287 $9,603,989 Average Annual Cash Payment $6,595,579 $6,595,579 $6,595,579 Financing Term Length -Cash 5 Years 5 Years 5 Years Total Cost (Debt & Cash Payments) $166,379,583 $186,829,849 $231,731,458 $178,187,841 $211,172,706 $284,118,006 Savin s Compared to Scenario 1 B S34.676.768 I S14,226.502 I (S30,675.107) S22.868,510 510,116.355) 1 (S83.061.655) Executive Summary Page 3 of 9 The total cost to the District to pay the UAAL annually for $100 million is $165,744,545 and for $120 million is $201,056,339, at CCCERA's Discount Rate of 7.75 %. See Attachment F and G for the respective detail calculations. Table 3 displays the annual UAAL payment, amortized as displayed in Table 1. The total cost to the District is $201,056,339 as seen at the bottom of the "UAAL Total Payment" column. Table 2 / Executive Summary Base Line — CCCERA Annual Payments for $120 Million UAAL Fiscal Year 2009 -2010 UAAL 2010 -2011 UAAL Increase 2011 -2012 UAAL Increase 2012 -2013 UAAL Increase — 2013 -2014 UAAL Increase UAAL Total Payment 2012 -13 S4,225,172 _ _ S1,961,766 S4.225,172 2013 -14 $4,225,172 $329,777 $4,554,949 2014 -15 $4,225,172 $329,777 53,040,093 $7,595,042 2015 -16 $4,225,172 $329,777 53,040,093 $2,.804,968 $10,400,010 2016 -17 $4,225,172 $329,777 $3.040,093 $2,804,968 $12,361,776 $12,361,776 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 _ $1,961,766 2018 -19 $4,225,172 $329,777 $3.040,093 $2,804,968 $1,961,766 $12.361,776 2019 -20 $4,225,172 $329,777 S3,040,093 $2,804,968 $1,961,766 $12,361,776 2020 -21 $4,225,172 $329,777 S3,040,093 $2.804,968 $1,961,766 $12,361,776 2021 -22 $4,225,172 $329,777 $3,040,093 S2,804,968 $1,961,766 $12,361,776 2022 -23 $4,225,172 S329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 2023 -24 S4,225,172 $329.777 $3,040,093 $2,804,968 S1,961,766 $12,361,776 2024 -25 S4,225,174 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,778 2025 -26 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 2026 -27 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 2027 -28 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 2028 -29 $329,777 $3.040,093 $2,804,968 $1,961,766 $8,136,604 2029 -30 $329,784 S3,040,093 52,804,968 $1,961,766 $8,136,611 2030 -31 S3,040,093 S2,804,968 $1,961,766 $7,806,827 2031 -32 $3,040,093 $2,804,968 51,961,766 $7,806,827 2032 -33 $2,804,961 $1,961,766 $4,766,727 2033 -34 $1,961,772 $1,961,772 $54,927,238 $5,606,216 $54,721,674 550,489,417 $35,311,794 $201,056,339 This table is a simplified calculation and assumes CCCERA meets the 7.75% interest target each year. Depending on how the economy goes, interest expense could increase or decrease. Raise rates and pay cash in excess of the UAAL requirement Table 3 presents the results of paying the UAAL off quicker by raising the Sewer Service Charge (SSC) and applying the increase to payoff the UAAL in less time. The table Executive Summary Page 4 of 9 shows the SSC increases that would be required to payoff the CCCERA UAAL financed baseline, and for SSC increases of $10 through $60 starting in FY 2013 -2014. In fiscal year 2016 -2017, highlighted in blue, the maximum Sewer Service Charge is reached at a rate of $424.32, a $53.32 increase. Put another way, the District's rate will need to increase, as shown below, by a maximum of $53.32 just to pay CCCERA the amortized UAAL increase at 7.75% interest. Any cash payments to accelerate the payoff of the UAAL will need to be on top of the $53.32 increase. Table 3 / Executive Summary Sewer Service Charge Increases Analysis Base +S10 +$20 +$30 +$40 +$50 +$60 Fiscal Line Sewer Sewer Sewer Sewer Sewer Sewer Year $120.00 Service Service Service Service Service Service Million Charge Char a Charge Charge Charge Charge 2012 -13 $371.00 $371.00 $371.00 $371.00 $371.00 $371.00 $371.00 2013 -14 $377.18 $387.18 $397.18 $407.18 $417.18 $427.18 $437.18 2014 -15 $396.03 $406.03 $416.03 $426.03 $436.03 $446.03 $456.03 2015 -16 $413.23 $423.23 $433.23 $443.23 $453.23 $463.23 $473.23 2016 -17 $424.32 $434.32 $444.32 $454.32 $464.32 $474.32 $484.32 2017 -18 $423.33 $433.33 $443.33 $453.33 $463.33 $473.33 $483.33 2018 -19 $422.47 $432.47 $442.47 $452.47 $462.47 $472.47 $482.47 2019 -20 $421.96 $431.96 $441.96 $451.96 $461.96 $471.96 $433.71 2020 -21 $421.45 $431.45 $441.45 $451.45 $461.45 $393.87 $433.62 2021 -22 $420.95 $430.95 $440.95 $450.95 $376.75 $393.78 $433.53 2022 -23 $420.46 $430.46 $440.46 $388.16 $376.67 $393.70 $433.45 2023 -24 $419.97 $429.97 $431.46 $388.08 $376.59 $393.62 $433.37 2024 -25 $419.48 $429.48 $431.38 $388.00 $376.51 $393.54 $433.29 2025 -26 $395.14 $405.14 $431.30 $387.92 $376.43 $393.46 $433.21 2026 -27 $394.80 $381.94 $431.22 $387.84 $376.35 $393.38 $433.13 2027 -28 $394.47 $349.01 $431.14 $387.76 $376.27 $393.30 $433.05 2028 -29 $394.14 $348.94 $431.07 $387.69 $376.20 $393.23 $432.98 2029 -30 $393.82 $348.86 $430.99 $387.62 $376.12 $393.15 $432.90 2030 -31 $391.68 $348.79 $430.92 $387.54 $376.05 $393.08 $432.83 2031 -32 $391.38 $348.72 $430.85 $387.47 $375.98 $393.01 $432.76 2032 -33 $374.56 $348.65 $430.78 $387.40 $375.91 $392.94 $432.69 2033 -34 $359.19 $348.58 $430.71 $387.33 $375.84 $392.87 $432.62 Maximum Increase $53.32 $63.32 573.32 S83.32 $93.32 5103.32 $113.32 Table 4 shows that the more cash can be spent to pay off the UAAL the faster it occurs and the greater the savings. Rates increase significantly in the four years after 2012- 2013. They peak in fiscal year 2016 -2017, highlighted in blue. The rates then decrease and level off as the UAAL is paid off, highlighted in red, and only the Normal Costs remain. Executive Summary Page 5 of 9 Table 4 / Executive Summary Sewer Service Charge Increases Estimated Savings SSC Base Line + $10 Base Line + $20 Base Line + $30 Base Line + $40 Base Line + $50 Base Line + $60 Debt financing Estimated Savinas $ 49,041,934 $ 75,386,958 $ 93,367,598 $107,756,514 $117,216,281 $124,326,250 There is a balance to be struck between level Sewer Service Charge rates, interest expense and total cost. Debt financing could allow the District to strike the balance and smooth the rate at a lower interest cost. Table 5 illustrates the potential interest expense savings for $120,000,000 of bonds, sold and to be paid off over fifteen years at various interest rates. At 4% interest, which may be achievable in this market, the District could save over $45 million or over $3 million per year. Staff analyzed the cost of debt financing using Revenue Bonds (tax- exempt) versus Pension Obligation Bonds (taxable). There is a greater opportunity for savings if the District obtains Revenue Bonds over Pension Obligation Bonds. Revenue Bonds would be used to fund capital projects and are backed by the District with the pledge to complete a specified list of capital projects equaling or exceeding the $75 million within three years. The Federal government has passed arbitrage laws requiring the borrower to complete the project within three years. This prohibits governmental agencies from debt financing and investing at a higher interest rate and thereby making a profit. The Sewer Service Charge funds that would have paid for capital projects would be redirected to pay for the bond payments and pay down the UAAL. Table 6 demonstrates the potential savings. Table 5 / Executive Summary Interest Cost to Payoff $120M over 20 Years Interest Rate Total Interest Average Annual Cost Debt Service 7.75% $87,095,000 $13,805,000 6.00% $65,330,000 $12,355,000 5.00% $53,415,000 $11,560,000 4.00% $41,895,000 $10,795,000 3.00% $30,780,000 $10,050,000 Staff analyzed the cost of debt financing using Revenue Bonds (tax- exempt) versus Pension Obligation Bonds (taxable). There is a greater opportunity for savings if the District obtains Revenue Bonds over Pension Obligation Bonds. Revenue Bonds would be used to fund capital projects and are backed by the District with the pledge to complete a specified list of capital projects equaling or exceeding the $75 million within three years. The Federal government has passed arbitrage laws requiring the borrower to complete the project within three years. This prohibits governmental agencies from debt financing and investing at a higher interest rate and thereby making a profit. The Sewer Service Charge funds that would have paid for capital projects would be redirected to pay for the bond payments and pay down the UAAL. Table 6 demonstrates the potential savings. Executive Summary Page 6 of 9 Table 6 / Executive Summary Debt Cost for Revenue Bonds versus Pension Obligation Bonds $120 Million Revenue Bonds Pension Obligation Bonds Difference Average Annual Difference 15 Years $172,400,739 $193,458,577 $ 21,057,838 $ 1,403,856 20 Years $198,718,808 $233,686,777 $ 34,967,969 $ 1,748,398 30 Years $257,665,717 $312,877,599 $ 55,211,882 $ 1,840,396 Staff also analyzed multiple debt financing scenarios listed in the summary. Staff concluded that debt financing $75 million for 15 years could be a cost effective option. Revenue Bonds S75 Million (Scenario 5) $85 Million (Scenario 7) $90 Million (Scenario 9) Table 7 / Executive Summary Revenue Bonds over Three Time Periods 15 Years Scenario A S160,280,908 $160,624,616 $166,379,583 FINANCIAL ANALYSIS SUMMARY 20 Years Scenario B $177,706,367 $180,255,066 $186,829,849 30 Years Scenario C $221,279,021 $228,124,916 $231,731,458 As can be seen by the Table 8 and the yellow highlighted columns, the more of the debt that can be paid with cash and the sooner, the more savings will occur. The most cost effective Scenario is 213, paying the UAAL off with cash raised from significantly increased rates. The negative to the scenario is the significantly increased rates. A better compromise would be to debt finance for $75 million using Revenue Bonds and raise rates to pay off the UAAL early and pay the new debt payments. This scenario borrows the least amount keeping the District's options for more debt financing in the future if mandated by regulatory agencies and requirements. The blue line indicates the end of fifteen (15) years of debt service payments. If the Board implemented three consecutive $60 Sewer Service Charge increases, at least half of the rate increase could be used for paying off the unfunded liabilities. This would place the District in a better future financial position to react to regulatory required process improvements or changes and capital projects needed for renewal and replacement of existing infrastructure or a catastrophic event. Executive Summary Page 7 of 9 Table 8 / Executive Summary Financing Summary Fiscal $120 Million $75 Million S75 Million $75 Million $75/$45 S85/S35 Year Base Line $10 $30 $60 Million Million Fiscal 5120 Million Swr Svc Chg Swr Svc Chg Swr Svc Chg Rev Bonds/ Rev Bonds/ Year Base Line PO Bonds Po Bonds Scenario 1B Scenario 5A Scenario 5A Scenario 5A Scenario 6A Scenario 8A 2012 -13 $371.00 $371.00 $371.00 $371.00 $371.00 $371.00 2013 -14 $373.55 $383.55 $403.55 $433.55 $373.55 $373.55 2014 -15 $392.37 $356.61 $376.61 $406.61 $798.42 $858.66 2015 -16 $408.67 $432.31 $452.31 S422.31 $452.99 $458.52 2016 -17 $419.43 $462.08 $460.27 S421.12 $463.48 $468.97 2017 -18 $418.56 $449.70 $377.80 $377.80 $462.35 $440.17 2018 -19 $418.03 $388.19 $388.19 $388.19 $438.54 $394.28 2019 -20 $417.52 $387.83 $387.83 S387.83 $388.51 $393.91 2020 -21 $417.01 $387.49 $387.49 $387.49 $388.17 $393.54 2021 -22 $416.51 $387.12 $387.12 $387.12 $387.84 $393.17 2022 -23 $416.02 $387.87 $387.87 $387.87 $387.51 $392.81 2023 -24 $415.53 $387.53 $387.53 $387.53 $387.18 $392.45 2024 -25 $415.04 $387.20 $387.20 $387.20 $386.86 $392.10 2025 -26 $390.70 $386.86 $386.86 $386.86 $386.54 $391.75 2026 -27 $390.36 $386.58 $386.58 $386.58 $386.23 $391.41 2027 -28 $390.03 $393.17 $393.17 $393.17 $385.92 $391.07 2028 -29 $389.70 $392.82 $392.82 $392.82 $385.61 $390.74 2029 -30 $389.37 $392.48 $392.48 $392.48 $368.27 $371.25 2030 -31 $387.24 $344.35 $344.35 $344.35 $344.35 $344.35 2031 -32 $386.94 $344.28 $344.28 $344.28 $344.28 $344.28 2032 -33 $370.11 $344.21 $344.21 $344.21 $344.21 $344.21 2033 -34 $354.74 $344.14 $344.14 $344.14 $344.14 $344.14 High $419.43 $462.08 $460.27 $421.12 $463.48 $468.97 Low $354.74 $344.14 $344.14 $344.14 $344.14 $344.14 Average $397.66 $386.24 $385.62 $385.21 $408.00 $410.74 Cost $201,056,339 $156,132,932 $153,637,328 1 $151,981,420 $160,280,908 $160,624,637 Savings $0 $44,923,407 $47,419,011 $49,074,919 $40,775,431 $40,431,702 POLICY ISSUES At the Budget and Finance Committee meeting on February 27, 2012, a discussion occurred regarding the desirability to raise rates significantly upfront to place the District in a better financial position. The concept of a $120 rate increase versus a three -year $60 rate increase was also discussed. It seemed that there was a greater comfort with a three -year $60 rate increase. Staff has done a preliminary analysis that shows adopting three $60 rate increases for fiscal years 2013 -2014, 2014 -2015 and 2015 -2016 could benefit the District. The strategy could be to pay off the retirement UAAL by the end fiscal year 2016 -2017, with thirteen years of debt service payments of approximately $7.5 million, begin increased funding to pay off the GASB 45 Trust actuarial calculated liability of approximately $70 million with half ($30) of the $60 rate while adequately funding the Executive Summary Page 8 of 9 Operational (O &M) and Capital costs with the other half ($30). Paying for the unfunded liabilities could be accomplished by a combination of cash and bond funding. The Board has the following options to fund the retirement UAAL. Fund the UAAL based upon CCCERA's adopted amortization schedule and interest rate of 7.75 %. 2. Significantly increase the Sewer Service Charge and pay off the UAAL with cash thereby saving all interest expense. 3. Debt Finance the entire UAAL using Revenue and /or Pension Obligation Bonds and increase the Sewer Service Charge to pay off the principal and interest thereby saving interest expense as compared to the 7.75% charged by CCCERA. 4. Debt Finance a portion of the UAAL using Revenue and /or Pension Obligation Bonds and increase the Sewer Service Charge to pay off the remainder of the UAAL thereby saving interest expense as compared to the 7.75% charged by CCCERA. The Board could debt finance the entire $120 million UAAL at this time because the rates are very low. The District could sell $75 million or $85 million of Revenue Bonds now for three years of capital project and return to the market in three years and pursue the remaining $45 million using Revenue Bonds at possibly a lower rate then Pension Obligation Bonds. The answer to this question lies with what the Board believes interest rates will be three years from now and how much the Board chooses to raise rates. RECOMMENDATION Staff analysis has documented that significant savings are possible by prepaying the UAAL to avoid or reduce the 7.75% interest charged by CCCERA. However, there is a concern that the District has limited control over the funds once payments are made to CCCERA. This raises a number of questions, such as: Can we require that CCCERA sequester our funds such that they are credited only to the District? What happens in the future if we become overfunded due to possible changes to our benefit structure? Therefore, staff is recommending a two -step process as follows: Request a written agreement from CCCERA identifying the payoff method for the UAAL and the rules and procedures for early payment. Receive confirmation that CCCERA will remain de- pooled, allowing monies paid by the District to CCCERA be credited only to the District's payoff of the UAAL. Obtain clarification on how future over or under funding with CCCERA will be addressed. If all of these questions can be answered and an appropriate agreement crafted to protect the District's interests, then consider proceeding to step two. 2. If the Board receives a favorable response from CCCERA, conduct additional analysis and discussions to determine whether to proceed with prepaying the Executive Summary Page 9 of 9 UAAL and to select the optimum approach. It is recommended that this step take place after the new finance manager has been selected so that person is intimately involved in the analysis and decision making regarding this important issue. UAAL FINANCING REPORT INTRODUCTION The Board of Directors, at the request of Board Member McGill, directed staff to develop a financial analysis to determine the most cost effective approach to funding the District's retirement UAAL. To perform the financial analysis, staff analyzed several scenarios, see next page. Staff analyzed paying off the UAAL to CCCERA over the amortized 18 years at 7.75% interest, various cash payment options raising the sewer service charge substantially, and debt financing using Revenue Bonds and Pension Obligation Bonds. Staff also analyzed the impact of the scenarios on the sewer service charge or rate, debt service costs, and annual payment, including the current District debt payments. The entire picture was analyzed to provide the Board the ability to select the best option for the District, balancing rate increases, outstanding debt and future regulatory requirements. This financial analysis only focuses on the financing of the UAAL. It does not look at District revenues and expenses, other than debt service. Therefore, it is an isolated analysis to assist the Board in determining how best to pay down or off the retirement UAAL. It is done in this manner to simplify the analysis, presentation and discussion. It does not attempt to address rates from a total District perspective, only from the impact of paying off the UAAL. Several scenarios have been developed for evaluation. A summary of the scenarios follows and is also behind the Attachment E tab. In addition, the Budget and Finance Committee, during the discussion of the Ten Year Financial Plan, asked for additional scenarios focused on significant rate increases to pay off the UAAL more quickly, thereby reducing interest expense. Those scenarios were developed after staff had prepared the additional $10 and $20 rate increase scenarios. The District has experienced a significant increase to the District's Unfunded Actuarial Accrued Liability (UAAL) from the Contra Costa County Employee's Retirement Association (CCCERA) in recent years. Table 1 Central Contra Costa Sanitary District UAAL amounts over time CCCERA FY UAAL Increase December 31, 2011 $120,000,000 S 20,158,620 December 31, 2010 $ 99,841,380 $ 28,823,145 December 31, 2009 $ 71,018,235 $ 31,239,235 December 31, 2008 S 39,779,000 5 3,296,000 December 31, 2007 $ 36,483,000 $ (6,538,000) December 31, 2006 $ 43,021,000 $ 2,544,000 December 31, 2005 $ 40,477,000 $ 4,084,000 December 31, 2004 $ 36,393,000 $ 6,014,000 December 31, 2003 $ 30,379,000 $ 3,068,000 December 31, 2002 $ 27,311,000 $ 5,586,428 December 31, 2001 $ 21,724,572 $ 21,724,572 CCCSD FY 2013 -2014 Estimate 2012 -2013 2011 -2012 2010 -2011 2009 -2010 2008 -2009 2007 -2008 2006 -2007 2005 -2006 2004 -2005 2003 -2004 UAAL Financing Report March 9, 2012 Page 2 of 22 The increases are primarily due to the significant market value loss ($1.8 billion) of CCCERA investments in 2008, de- pooling adding another $31.5 million to the District's UAAL, and to a minor degree demographic assumption changes. The amortization payments used in this report were calculated by staff and are calculated at a level dollar amount. This is different from the level percentage of pay methodology used by CCCERA. CCCERA amortizes the unfunded liability at level percent of payroll using 4.25% payroll growth. CCCERA's Actuary, Segal Company, will adjust to actual demographics, assumptions and history in the Experience Study, performed every three years. The analysis assumes a normal refinancing of a 7.75% debt. Money may be borrowed at a lower interest rate and given to CCCERA to invest. If CCCERA earns exactly 7.75% then the analysis is correct. If CCCERA earns more than 7.75% then the analysis understates savings. If CCCERA earns less than 7.75% then the analysis overstates savings. The refinancing will be cost neutral if CCCERA earns exactly the interest on the bond debt service. However, it is difficult to assume the exact interest rate the District would pay for debt financing from a competitive bid. The concept that borrowing at a lesser interest rate than 7.75% yields a savings assumes CCCERA meets the target. The spreadsheet compares the total savings in different scenarios. It does not take into account the value of time. Future gains /losses and assumption changes will impact the unfunded liability. It is possible that CCCERA could lower the 7.75% discount rate and increase the liability. Staff is not aware that the lowering of the Discount rate is being discussed by the CCCERA Board at this time. The District Board should be aware that even if the unfunded liability is paid off today it does not mean the District's UAAL will stay at zero forever. It will increase or decrease due to actuarial gains /losses and demographic assumption changes. The District's current (fiscal year 2011 -2012) unfunded liability is approximately $100 million. If the District issues a $120 million in bonds, we are not sure whether CCCERA will accept an amount that is greater than current amount. The District may have to hold approximately $20 million while CCCERA updates the UAAL calculation for the next year. Staff recommends requesting a written agreement from CCCERA identifying how paying off the UAAL will work, the rules and procedures for early payment, and that CCCERA will remain de- pooled, allowing monies paid by the District to CCCERA be credited only to the District's payoff of the UAAL. How CCCERA would handle future over or under funding must also be addressed. The analysis and discussion of rate impact and increases are again from the perspective of addressing the additional sewer service charge increases to pay off the UAAL Financing Report March 9, 2012 Page 3 of 22 $120 million UAAL only, using fiscal year 2012 -2013 as the base. It is assumed that the District has raised rates sufficiently to pay for the current CCCERA annual payments. This includes the portion for the Normal Cost and a portion for the UAAL. In theory the Districts payments to CCCERA would go down due to the reduction in interest costs from paying the UAAL off. The annual contribution would be the Normal Cost offset by the elimination of the UAAL ($0) and the additional annual debt service payments. However, CCCERA contribution rates are developed by CCCERA based on payroll. Keep in mind that the Board adopted a $30 rate increase for fiscal years 2011 -2012 and 2012 -2013. All estimates of rate increases are in addition to the $341 rate for fiscal year 2011 -2012 and the $371 rate for fiscal year 2012 -2013. CCCERA has adopted a five year smoothing practice using the Market Stabilization Account. The purpose of adopting an "Asset Smoothing" policy and Market Stabilization Account is to (1) track market value of assets over time, (2) smooth out fluctuations in market values by letting gains and losses offset each other, and (3) produce a smoother pattern of contributions by reducing volatility. The five year smoothing recognizes 1 /5th of the market value assets and defers the rest, gains or losses. The Market Stabilization Account also recognizes 1 /5th of the market value assets from the four previous years. By realizing market gains and losses over a five year period, large annual adjustments to contribution rates are reduced or "smoothed ". ESTIMATED UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAAL) The first step of the financial analysis is to estimate the amount the District would need to pay CCCERA if the entire current UAAL amount was to be paid off. The District received the calculated amount of $99,841,380, see Attachment A. This represents the District's current total UAAL in today's dollars. Staff had advised the Board that there is one more year of the five year smoothing for a significant loss of interest income due to the 2008 market drop. Taking that fifth year into consideration, it appeared to staff that the total UAAL for the next eighteen years (18) would be approximately $120 million. Staff developed a payment schedule by fiscal year for the UAAL, see Attachment B. Table 2 Fiscal Year UAAL Years Amortized Assumed Rate Annual Payment 2010-11 $ 36,483,000 13 7.75% $4,225,172 2011 -12 $ 3,296,000 17 7.75% $ 329,777 2012-13 $ 31,239,235 18 7.75% $3,040,093 2013-14 $ 28,823,145 18 7.75% $2,804,968 2014 -15 (estimated) $ 20,158,620 18 7.75% $1,961,766 Total Projected 2014 -15 UAAL 120,000,000 $12,361,776 The District's Retirement Auditor, Bartel Associates, were requested to review staff's work and provide the total expected UAAL. They used a different method involving the UAAL Financing Report March 9, 2012 Page 4 of 22 receipt of additional material from Segal Company, CCCERA's Actuary. Their estimate is $122.8 million based upon the following assumptions. If the $120 million was paid annually based upon the layered years of the liability at 7.75% annually, the District would pay $201,056,339. See Attachment B for the detailed calculation. The 122.8 million unfunded liability includes Gains /losses recognized as of 12/31/10 Estimated investment gains /losses in 2011 Deferred investment gains /losses through 2016 No other gains and losses The 2011 investment gains /losses are estimated based on Actual investment return from January 2011 to June 2011 (6.3 %) Estimated -5.25% from July 2011 and December 2011. The -5.25% is estimated based on negative 7% investment return from July to September and a 1.9% (= 1.0775^0.25) investment return from October to December. Per advice from Segal staff, Bartel Associates used 3.3% for the District's share of gains /losses. The 3.3% is based on the ratio of the District's asset to the total CCCERA asset. The UAAL level of $120 million is used for the financial analysis. INVESTMENT RATE OF RETURN The Board is well aware of CCCERA's target rate of return at 7.75 %, equal to CalPERS. The assumed rate of return has been recently criticized. Many financial professionals and economists believe it should be reduced to 4 -6 %. In the Actuarial Evaluation report as of December 31, 2010 Segal Company staff reported that the ten year average for Market Value Investment Return was 4.48 %, for Actuarial Value Investment Return was 4.99% and for Valuation Value Investment Return it was 5.61 %, see Attachment C. In addition, Milliman, CCCERA's Investment Advisor, reports that the ten year rate of return on investments for CCCERA has been 5.7 %, see Attachment D. Staff requested Bartel and Associates to apply the impact of a 5% and a 6% return on investments resulting in an increase from $122.8 million to approximately $166 million and $159 million respectively. This provides a minimum of $120 million and a maximum of $166 million. It is very difficult to project the UAAL for approximately twenty years due to the multiple changes that can occur affecting the UAAL. Examples of some changes include, demographic: divorce, marriage, age, hire into the system; life expectancy: death, and financial: cost -of- living adjustments, and return on investments. The District will certainly have a surplus or deficit of funds which would be applied to any outstanding UAAL or the normal contribution payment. UAAL Financing Report March 9, 2012 Page 5 of 22 The CCCERA investment rate of return of 7.75% is assumed for the financial analysis. The District may consider increasing the sewer service charge in the future if the return on investment performs below the assumed 7.75% rather than debt finance the maximurn at this time. SCENARIOS There are three basic ways to fund the UAAL: 1) have CCCERA finance at their assumed 7.75 rate of return, 2) raise rates and pay cash in excess of the UAAL requirement, and 3) and /or debt financing. The following page and Attachment E is a summary of the options staff developed for the financial analysis and Board review. If the District chose to pay the CCCERA UAAL over the amortized life of the liability, the payments would be at the CCCERA rate of return rate of 7.75 %. If the District sold Revenue Bonds and /or Pension Obligation Bonds at a lower interest rate, then savings would be realized. Staff analyzed cash scenarios (1A-2B), Revenue Bonds versus Pension Obligation Bonds (3A -4C), Revenue Bonds Plus Cash (5A- C,7A -C, 9A -C), and Revenue Bonds Plus Pension Obligation Bonds (6A -C, 8A- C, 10A -C). As previously noted, additional Cash scenarios are presented in the body of the report. The debt financing scenarios have three scenarios for length of term for 15 years, 20 years and 30 years. Staff is recommending a 15 year term since the CCCERA amortization period is 18 years. The following table was developed to illustrate potential interest expense savings for $120,000,000 of bonds, sold and to be paid off over fifteen years, at various interest rates. As can be seen by the example, significant savings could be realized if CCCERA was able to meet or exceed the target return on investment of 7.75 %. Table 3 Interest Rate Total Interest Average Annual Cost Debt Service 7.75% $87,095,000 $13,805,000 6.00% $65,330,000 $12,355,000 5.00% $53,415,000 $11,560,000 4.00% $41,895,000 $10,795,000 3.00% $30,780,000 $10,050,000 As shown above, the difference in interest payments between 4% and 7.75% over 15 years would be $45,200,000. Therefore, debt financing is more cost effective over paying CCCERA at their amortization periods given the ability for the District to obtain debt at approximately 4% versus CCCERA's interest rate of 7.75 %. UAAL FINANCIAL ANALYSIS SUMMARY SCENARIOS ANALYZED Scenario 1A Scenario 16 Base Line Base Line Scenario 2A Scenario 2B S10 SSChg Increase S20 SSChg Increase Cash Payments $100 million $120 million $120 million $120 million Pension Obligation Bonds Pension Obligation Bonds Revenue Bonds $120 million 5120 million $120 millr)i Revenue Bonds Financing Tenn Length 21 years 21 years 15 Years 13 Years Interest Rate 7.75% 7.75% 20 years 30 Years Average Annual Debt Payment $7,892,598 $9,574,112 $11,284,294 $11,672,295 Total Cost $165,744,550 $201,056,351 $169,264,405 $151,739,834 Savin s Com ared to Scenario 1B Base Scenario I Base Scenario 531,791,946 S49.316.517 Scenario 3A Scenario 3B Scenario 3C Rev Bonds Rev Bonds Rev Bonds Scenario 4A Scenario 4B Scenario 4C PO Bond PO Bond PO Bond Cash Payments $45 Million i $45 Million $45 Million Pension Obligation Bonds $120 million 5120 million $120 millr)i Revenue Bonds $120 million $120 million 120 million $75 Million $75 Million $75 Million Financing Term Length 15 years 20 years 30 Years 15 years 20 years 30 years Interest Rate 3.28% 3.89% 4.50% 4.86% 5.63% 6.06% Average Annual Debt Service $11,719,083 $10,081,563 $8,709,827 $13,150,507 $11,855,586 $10,576,144 Total Cost (Debt & Cash Payments) $172,400,739 $198,718,808 $257,665,717 $193,458,577 $233,686,777 $312,877,599 Savin s Compared to Scenario 1 B S28.655,612 I S2.337.543 (S56.609.366) S7.597.774 I (532.630.426) I (Si 11,82.1,248) Scenario 5A Scenario 5B Scenario 5B Rev Bonds+ Cash Rev Bonds + Cash Rev Bonds + Cash Scenario 6A Scenario 61B Scenario 6B Rev + PO Bonds Rev + PO Bonds Rev + PO Bonds Cash Payments $45 Million i $45 Million $45 Million Pension Obligation Bonds $45 million $45 million $45 million Revenue Bonds $75 Million $75 Million $75 Million $75 Million $75 Million $75 Million Financing Term Length -Bonds 15 years 20 years 30 years 15 years 20 years 30 years Interest Rate 3.20% 3.84% 4.59% 4.68% / 3.20% 5.51% / 3.84% 6.18% /4.59% Average Annual Debt Service $7,400,964 $6,401,167 $5,710,271 $12,421,303 $11,018,465 $9,980,346 Average Annual Cash Payment $8,725,030 $8,725,030 $8,725,030 Financing Term Length -Cash 6 Years 6 Years 6 Years Total Cost (Debt & Cash Payments) $160,280,908 $177,706,367 $221,279,021 $181,144,008 $215,778,279 $295,251,890 Savin s Compared to Scenario 1 B S40.775.443 I 523.349.984 I (S20.222.670) S19.912.343 1 X14,721.928) 1 ($94.195.539) Scenario 7A Scenario 7B Scenario 7C Rev Bonds + Cash Rev Bonds + Cash Rev Bonds + Cash Scenario 8A Scenario 8B Scenario 8C Rev + PO Bonds Rev + PO Bonds Rev + PO Bonds Cash Payments $35 Million $35 Million $35 Million Pension Obligation Bonds S35 Million S35 Million $35 Million Revenue Bonds $85 Million $85 Million $85 Million $85 Million $85 Million $85 Million Financing Term Length 15 Years 20 Years 30 Years 15 years 20 years 30 years Interest Rate 3.12% 3.82% 4.56% 4.71% / 3.12% 5.56% / 3.82% 6.19% /4.56% Average Annual Debt Service $8,324,011 $7,201,136 $6,385,085 $12,273,316 $10,861,690 $9,748,238 Average Annual Cash Payment $7,846,563 $7,846,563 $7,846,563 Financing Term Length -Cash 5 Years 5 Years 5 Years Total Cost (Debt & Cash Payments) $160,624,637 $180,255,066 $228,124,916 $178,985,850 $212,708,093 $288,385,367 Savin s Compared to Scenario 18 I 540.431,714 $20,801,285 (S27.068.565) 522.070.501 S11.651.742) 1 ($87,329,01(: Scenario 9A Scenario 9B Scenario 9C Rev Bonds + Cash Rev Bonds + Cash Rev Bonds + Cash Scenario 10A Scenario 10B Scenariol OC Rev + PO Bonds Rev + PO Bonds Rev + PO Bonds Cash Payments $30 Million $30 Million $30 Million Pension Obligation Bonds $30 Million 53u (vlilhur I Sau Million Revenue Bonds $90 Million $90 Million $90 Million $90 Million $90 Million $90 Million Financing Term Length 15 years 20 years 30 years 15 years 20 years 30 years Interest Rate 3.12% 3.81% 4.59% 4.73% / 3.12% 5.60% / 3.81% 6.19%/4.59% Average Annual Debt Service $8,804,687 $7,600,951 $6,718,430 $12,218,595 $10,783,287 $9,603,989 Average Annual Cash Payment $6,595,579 $6,595,579 $6,595,579 Financing Term Length -Cash 5 Years 5 Years 5 Years Total Cost (Debt & Cash Payments) $166,379,583 $186,829,849 $231,731,458 $178,187,841 $211,172,706 $284,118,006 Savin s Compared to Scenario 1B S34.676.768 I S14.226,502 1 (S30.675.107 ) S22.868,510 1 �S10.116,355) (S83,061.655) UAAL Financing Report March 9, 2012 Page 6 of 22 CCCERA Payment Schedule at 7.75% Interest Base Line Scenarios 1 A and 1 B — Staff developed the Base Line Scenarios, 1A and 1 B for $100 million and $120 million UAAL, respectively. The scenarios simply pay CCCERA the annual UAAL portion of the District's total contributions over the life of the liability. The unfunded liability was divided by the years left to pay off the unfunded liability (Years Amortized), thus yielding an annual payment for the multiple unfunded liabilities, see Table 4. This option incorporates the CCCERA 7.75% guaranteed rate of return. The total cost to the District to pay the UAAL annually for $100 million is $165,744,545 and for $120 million is $201,056,339, with no debt financing. See Attachment F and G for the respective detail calculations. Table 4 displays the annual UAAL payment, amortized as displayed in Table 2. Add up the annual payments over 18 years at 7.75% interest and the total cost to the District is $201,056,3390 as seen at the bottom of the "UAAL Total Payment" column. UAAL Financing Report March 9, 2012 Page 7 of 22 Table 4 BASE LINE - CCCERA ANNUAL PAYMENTS <$120 Million> Fiscal Year 2009 -2010 UAAL 2010 -2011 UAAL Increase 2011 -2012 UAAL Increase 2012 -2013 UAAL Increase 2013 -2014 UAAL Increase UAAL Total Payment 2012 -13 $4,225,172 S4.225.172 2013 -14 $4,225,172 $329,777 S4,554,949 2014 -15 $4,225,172 5329,777 $3,040,093 S7,595,042 2015 -16 $4,225.172 $329,777 $3,040,093 $2,804,968 $10,400,010 2016 -17 $4,225,172 5329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 2018 -19 $4,225.172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 2019 -20 $4,225,172 S329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 2020 -21 $4,225,172 5329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 2021 -22 $4,225,172 5329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 2022 -23 $4,225,172 S329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 2023 -24 $4,225,172 5329,777 $3,040.093 $2,804,968 S1,961,766 $12,361,776 2024 -25 $4,225,174 $329,777 S3,040.093 $2,804,968 51,961,766 $12,361,778 2025 -26 5329,777 $3,040,093 $2,804,968 $1,961,766 $8,136.604 2026 -27 $329,777 $3,040,093 $2.804,968 51,961,766 $8,136,604 2027 -28 $329,777 $3,040.093 $2,804,968 $1,961,766 $8,136,604 2028 -29 5329,777 $3,040,093 $2,804,968 $1,961,766 $8.136,604 2029 -30 $329,784 $3,040,093 $2,804,968 51,961,766 $8,136,611 2030 -31 $3,040,093 S2,804,968 $1,961,766 $7.806,827 2031 -32 $3,040,093 S2,804,968 $1,961,766 $7,806,827 2032 -33 $2,804,961 $1,961,766 $4,766,727 2033 -34 $1,961.772 $1,961,772 $54,927,238 $5,606,216 $54,721.674 $50,489,417 $35,311,794 $201,056,339 The following table, Table 5, identifies the sewer service charge needed to pay the Base Line UAAL payments. Again, the Base Line is the UAAL payment schedule the District would be required to pay CCCERA for the UAAL portion based upon the amortization period and the 7.75% interest rate, as shown above. If no debt financing was obtained, then cash payments equivalent to the Base Line would be required. Note that of the $371 Sewer Service Charge for fiscal year 2012 -2013, $25.76 is the current amount applied to the UAAL and $39.40 is the Normal cost, totaling $65.16. Normal Cost - The annual contribution rate that, if paid annually from a member's first year of membership through the year of retirement, would accumulate to the amount necessary to fully fund the member's retirement - related benefits. Accumulation includes annual crediting of interest at the assumed investment earning rate. The contribution rate is expressed as a level percentage of the member's compensation. The increase in the UAAL portion is a direct result of the increased UAAL amortized as shown in Table 4 above. Table 5 also shows the $30 rate increase in fiscal year 2012- 2013. UAAL Financing Report March 9, 2012 Page 8 of 22 In fiscal year 2016 -2017, highlighted in blue, the maximum Sewer Service Charge is reached at a rate of $424.32, a $53.32 increase. Put another way, the District's rate will need to increase, as shown below, to a maximum of $53.32 just to pay CCCERA the amortized UAAL increase at 7.75% interest. Any cash payments to accelerate the payoff of the UAL will need to be on top of the $53.32 increase. This is why debt financing is attractive plus the ability to borrow at a lower rate than CCCERA's 7.75 %. Debt financing allows the District to smooth the rate at a lower interest cost. Table 5 BASE LINE - CCCERA ANNUAL PAYMENTS <$120 Million> Fiscal Year UAAL Total Pa men t Sewer Svc Charge UAAL Normal Cost Sewer Svc Charge Normal Sewer Svc Charge UAAL + Normal Sewer Svc Charge Total 2012 -13 $4,225,172 $6,500,214 S39.40 $65.16 5371.00 2013 -14 $4,554,949 $27.61 $7,260,159 $43.74 $71.34 $377.18 2014 -15 $7,595,042 $45.75 $7,420,783 $44.44 $90.19 $396.03 2015 -16 $10,400,010 $62.28 $7,578,256 $45.11 $107.38 $413.23 2016 -17 $12,361,776 $73.58 $7,586,928 $44.89 $118.48 $424.32 2017 -18 $12,361,776 $73.15 $7,538,870 $44.35 $117.49 $423.33 2018 -19 $12,361,776 $72.72 $7,509,585 $43.92 $116.63 $422.47 2019 -20 $12,361,776 $72.29 $7,538,149 $43.83 $116.12 $421.96 2020 -21 $12,361,776 $71.87 $7,566,856 $43.74 $115.61 $421.45 2021 -22 $12,361,776 $71.46 $7,595,707 $43.65 $11 5.11 $420.95 2022 -23 $12,361,776 $71.04 $7,624,701 $43.57 $114.61 $420.46 2023 -24 $12,361,776 $70.64 $7,653,675 $43.49 $114.13 $419.97 2024 -25 $12,361,778 $70.24 $7,682,759 $43.41 $113.64 $419.48 2025 -26 $8,136,604 $45.97 $7,711,953 $43.33 $89.30 $395.14 2026 -27 $8,136,604 $45.71 $7,741,259 $43.25 $88.96 $394.80 2027 -28 $8,136,604 $45.46 $7,770,676 $43.17 $88.63 $394.47 2028 -29 $8,136,604 $45.20 $7,800,204 $43.10 $88.30 $394.14 2029 -30 $8,136,611 $44.95 $7,829,845 $43.02 $87.97 $393.82 2030 -31 $7,806,827 $42.89 $7,859,598 $42.95 $85.84 $391.68 2031 -32 $7,806,827 $42.66 $7,889,465 $42.88 $85.54 $391.38 2032 -33 $4,766,727 $25.91 $7,919,445 $42.81 $68.71 $374.56 2033 -34 $1,961,772 $10_.60 $7,949,539 $42.74 $53.34_ $359.19 $201,056,339 Raise rates and paV cash in excess of the UAAL requirement The District could raise rates to pay the CCCERA UAAL off in less time. This would have the benefit of minimizing interest costs. However, rates would be significantly increased. Staff analyzed the impact of raising the sewer service charge in increments of $10 over the Base Line which is the calculated CCCERA payment for $120 million UAAL. Attachment H displays the impact to rates for an incremental $10 above the Base Line payment to pay the UAAL in a reduced span of time. UAAL Financing Report March 9, 2012 Page 9 of 22 Table 6 identifies the sewer service charge amount needed to pay the UAAL off earlier than the required eighteen years for each scenario. CCCERA modified their amortization policy in 2009 to a rolling 18 -year amortization period of new unfunded liabilities. This is why the Base Line scenario has amortization periods of thirteen, seventeen and three new years of eighteen amortization periods, see Table 4 for actual amortization periods. The rates displayed include the Base Line payment, as displayed in Attachment G for $122 million UAAL, plus the additional amount ($10 -$60). The Board's adoption of the $30 rate increases in fiscal year 2012 -2013 is included in the rates. Again, the analysis is just focusing on what the additional rate increases above the current Base Line would be given each scenario to pay off the UAAL. The fiscal year in which the UAAL is paid off is indicated in red. After the bleu highlighted UAAL payoff, only the Normal Cost is the portion left to pay. Again, please note that the Sewer Service Charge peaks in fiscal year 2016 -2017, highlighted in blue. Table 6 Base +S10 +S20 +S30 +$40 +$50 +S60 Fiscal Line Sewer Sewer Sewer Sewer Sewer Sewer Year S120.00 Service Service Service Service Service Service Million Change Change Change Change Change Change J 2012 -13 $371.00 $371.00 $371.00 $371.00 $371.00 $371.00 $371.00 2013 -14 $377.18 $387.18 $397.18 $407.18 $417.18 $427.18 $437.18 2014 -15 $396.03 $406.03 $416.03 $426.03 $436.03 $446.03 $456.03 2015 -16 $413.23 $423.23 $433.23 $443.23 $453.23 $463.23 $473.23 2016 -17 $424.32 $434.32 $444.32 $454.32 $464.32 $474.32 $484.32 2017 -18 $423.33 $433.33 $443.33 $453.33 $463.33 $473.33 $483.33 2018 -19 $422.47 $432.47 $442.47 $452.47 $462.47 $472.47 $482.47 2019 -20 $421.96 $431.96 $441.96 $451.96 $461.96 $471.96 $433.71 2020 -21 $421.45 $431.45 $441.45 $451.45 $461.45 $393.87 $433.62 2021 -22 $420.95 $430.95 $440.95 $450.95 $376.75 $393.78 $433.53 2022 -23 $420.46 $430.46 $440.46 $388.16 $376.67 $393.70 $433.45 2023 -24 $419.97 $429.97 $431.46 $388.08 $376.59 $393.62 $433.37 2024 -25 $419.48 $429.48 $431.38 $388.00 $376.51 $393.54 $433.29 2025 -26 $395.14 $405.14 $431.30 $387.92 $376.43 $393.46 $433.21 2026 -27 $394.80 $381.94 $431.22 $387.84 $376.35 $393.38 $433.13 2027 -28 $394.47 $349.01 $431.14 $387.76 $376.27 $393.30 $433.05 2028 -29 $394.14 $348.94 $431.07 $387.69 $376.20 $393.23 $432.98 2029 -30 $393.82 $348.86 $430.99 $387.62 $376.12 $393.15 $432.90 2030 -31 $391.68 $348.79 $430.92 $387.54 $376.05 $393.08 $432.83 2031 -32 $391.38 $348.72 $430.85 $387.47 $375.98 $393.01 $432.76 2032 -33 $374.56 $348.65 $430.78 $387.40 $375.91 $392.94 $432.69 2033 -34 S359. 19 $348.58 $430.71 $387.33 $375.84 $392.87 $432.62 Maximum Rate Increase $53.32 S63.32 S73.32 $83.32 S93.32 $103.32 $113.32 UAAL Financing Report March 9, 2012 Page 10 of 22 Table 7, below, displays the annual change needed to the Sewer Service Charge to pay the UAAL and Normal Costs comprising the District's contributions. The fiscal year in which the UAAL is paid off is indicated in red. The Board has already authorized a $30 rate increase in fiscal years 2011 -2012 and 2012 -2013. The rate increases from $341 to $371. The following four fiscal years show the increases needed, highlighted in blue, for each cash scenario. Again, Table 6, bottom row, shows the maximum rate increase needed to pay off the UAAL under each scenario. Table 7 Fiscal Year Base Line $120.00 Million +S10 Sewer Service Charge +S20 Sewer Service Char a +S30 Sewer Service Charge +S40 Sewer Service Charge +S50 Sewer Service Charge +S60 Sewer Service Charge 2012 -13 $371.00 $371.00 $371.00 $371.00 $371.00 $371.00 $371.00 2013 -14 $6.18 $16.18 $26.18 $36.18 $46.18 $56.18 $66.18 2014 -15 $18.85 $18.85 $18.85 $18.85 $18.85 $18.85 $18.85 2015 -16 $17.20 $17.20 $17.20 $17.20 $17.20 $17.20 $17.20 2016 -17 $11.09 $11.09 $11.09 $11.09 $11.09 $11.09 $11.09 2017 -18 -$0.98 -$0.98 -$0.98 -$0.98 -$0.98 -$0.98 -$0.98 2018 -19 -$0.86 -$0.86 -$0.86 -$0.86 -$0.86 -$0.86 -$0.86 2019 -20 -$0.51 -$0.51 -$0.51 -$0.51 -$0.51 -$0.51 - $48.77 2020 -21 -$0.51 -$0.51 -$0.51 -$0.51 -$0.51 - $78.09 -$0.09 2021 -22 -$0.50 -$0.50 -$0.50 -$0.50 _$M.70 -$0.09 -$0.09 2022 -23 -$0.49 -$0.49 -$0.49 - $62.79 -$0.08 -$0.08 -$0.08 2023 -24 40.49 -$0.49 SJ.i)0 -$0.08 -$0.08 -$0.08 -$0.08 2024 -25 -$0.48 -$0.48 -$0.08 -$0.08 -$0.08 -$0.08 -$0.08 2025 -26 - $24.35 - $24.35 -$0.08 -$0.08 -$0.08 -$0.08 -$0.08 2026 -27 -$0.34 - $23.20 -$0.08 -$0.08 -$0.08 -$0.08 -$0.08 2027 -28 -$0.33 - $32.92 -$0.08 -$0.08 -$0.08 -$0.08 -$0.08 2028 -29 -$0.33 -$0.08 -$0.08 -$0.08 -$0.08 -$0.08 -$0.08 2029 -30 -$0.32 -$0.07 -$0.07 -$0.07 -$0.07 -$0.07 -$0.07 2030 -31 -$2.13 -$0.07 -$0.07 -$0.07 -$0.07 -$0.07 -$0.07 2031 -32 -$0.31 -$0.07 -$0.07 -$0.07 -$0.07 -$0.07 -$0.07 2032 -33 - $16.82 -$0.07 -$0.07 -$0.07 -$0.07 -$0.07 -$0.07 2033 -34 - $15.37 -$0.07 -$0.07 -$0.07 -$0.07 -$0.07 -$0.07 The detailed calculations are found in Attachment H. As previously discussed, it is interesting to note that it takes an additional four years to ramp the rates up and then equilibrium is reached until the UAAL is paid off. The payments then shift to the Normal Costs only. The shift corresponds to the numbers highlighted in red in Tables 6 and 7. If the Board chose to pay the UAAL based on CCCERA's amortization schedule and interest rate, the sewer service charge would increase in four years by $53.04 above the $25.76 paid in fiscal year 2012 -2013, totaling $78.80. Each scenario increases the four year increase and total by $10.00. UAAL Financing Report March 9, 2012 Page 11 of 22 Scenarios 2A and 26 were developed to analyze the impact of increasing the Sewer Service Charge $10 and $20 dollars, respectively, with the full amount of revenue used to pay down the UAAL. These scenarios were developed prior to the Budget and Finance Committee's request to see the impact of significant increase(s) in the next (after 2012 -2013) one to three years. Interestingly, the UAAL could be paid off ten years sooner than Scenarios 1 A and 1 B at a total cost of $125,669,381 with a one -time $20 rate increase or seven years sooner at a total cost of $152,014,405 with a one -time $10 rate increase. The increased Sewer Service Charge revenue would be added to the annual payment to pay off the UAAL is shown in Options 1 A and 1 B. The detailed calculations are found on Attachment I. Debt financing The other method of funding is debt financing all of the $122 million or a portion the remaining UAAL. The District has used Mr. Tom Lockard of Stone and Youngberg in the past 20+ years for District debt financing. The District has a long standing practice and relationship with Mr. Lockard to assist in financial analysis and obtaining debt financing. Mr. Lockard provided initial data and analysis regarding debt financing with Revenue Bonds and Pension Obligation Bonds, the two types of bonds available to the District for debt financing, as of November 21, 2011. Specific data was needed and obtained to perform the evaluation and analysis. Scenarios for debt financing the entire $122 million for 15, 20 and 30 years using Revenue Bonds (Scenarios 3A -3C) and using Pension Obligation Bonds (Scenarios 4A -4C) were developed by Mr. Lockard. It became quickly evident that debt financing with Revenue Bonds, non - taxable bonds, is significantly less expensive than Pension Obligation Bonds due to the difference in interest rates of 3.12% - 3.91% for non- taxable or Revenue Bonds compared to 4.64% - 5.65% for taxable or Pension Obligation Bonds. These rates were obtained at the beginning of December 2011 and reflect the market conditions at that time. However, the current market is very attractive for Taxable Bonds. Usually there is a greater difference between non - taxable and taxable bonds in interest rates than the market is currently experiencing. It also became clear that debt financing over 15 years would save significantly more in interest expense than 20 or 30 years. The current market is very competitive for selling District bonds. This is good for the District and will provide to ability to debt finance the UAAL at a much lower rate than the 7.75% required by CCCERA. If the District decides to pursue debt financing Mr. Lockard is recommending a competitive sale for the Revenue Bonds and the Pension Obligation Bonds if both or either bonds are used to fund the UAAL. The interest rates and costs provide a comparative perspective in assisting staff and the Board to analyze and decide on the best course of action. The actual interest rates and UAAL Financing Report March 9, 2012 Page 12 of 22 costs will be determined at the time of the competitive sale and will guarantee the District the lowest cost and best rates. Revenue Bonds versus Pension Obligation Bonds Scenario 3 displays the total cost for debt financing the full $120 million over fifteen, twenty and thirty year duration of time with Revenue Bonds. Scenario 4 displays the total cost for debt financing the full $120 million over fifteen, twenty and thirty year duration of time with Pension Obligation Bonds. Attachment D provides a summary of the options. $120 Million Revenue Bonds Pension Obligation Bonds Difference Average Annual Difference 15 Years $172,400,739 $193,458,577 $ 21,057,838 $ 1,403,856 Table 8 20 Years $198,718,808 $233,686,777 $ 34,967,969 $ 1,748,398 30 Years $257,665,717 $312,877,599 $ 55,211,882 $ 1,840,396 There is a limitation regarding the dollar amount of Revenue Bonds the District can sell. Mr. Lockard proposed a creative option to maximize on cost savings by using three years of capital projects to seek Revenue Bond financing for, thereby freeing up the equal amount of cash to fund the UAAL. Revenue bonds must be tied to a capital project and due to federal arbitrage rules, must be built within three years. The District has contracted with Jones Hall, Mr. Chick Adams, for Bond Counsel services. Mr. Adams confirmed the legality of Mr. Lockard's proposal. This UAAL Financing Analysis was purposefully delayed in order to allow the Engineering Department to develop the 2012 -2013 Capital Improvement Plan (CIP) and update the projects to determine the amount of non - taxable debt financing. On December 15, 2011 the Board of Directors received the CIP presentation and agreed to the proposed Ten -Year Capital Improvement Program. The following is the proposed project costs for the next three fiscal years. (2012 -2013, 2013 -2014, 2014 - 2015). Table 9 Fiscal Year Project Cost 2012 -2013 $32,343,000 2013 -2014 $29,280,000 2014 -2015 $25,572,000 Total $87,195,000 UAAL Financing Report March 9, 2012 Page 13 of 22 Debt Financing: $75/$45 Million and $85/$35 Million Revenue /Pension Obligation Bonds Staff requested Mr. Lockard to develop the actual debt payment structure for the two scenarios of $75/$45 million, Attachment L, and $85/$35 million, Attachment M, Revenue Bonds /Pension Obligation Bonds. Scenario 6A Rev + PO Bonds $45 million $75 Million 15 years 4.68% / 3.20% $12,421,303 $181,144,008 $19,912,343 Current Debt Service Payment Schedule Scenario 8A Rev + PO Bonds $35 Million $85 Million 15 years 4.71% / 3.12% $12,273,316 $178,985,850 $22,070,501 The District's current Debt Service payments are displayed below. Over the next four years, the sewer service charge will be approximately $34 of the $371 annual rate. The following nine years the rate drops to approximately $20 of the total sewer service charge. UAAL Financing Report March 9, 2012 Page 14 of 22 Table 10 Current Debt Service and Loan Pa ment Schedule Fiscal Year Recycled Water Loan 2009 Bonds Series A & B $5,380,000 Total Debt Service $5,567,000 Sewer Service _ Charge $33.95 2012 -13 $187,000 2013 -14 $187,000 $5,365,000 $5,552,000 533.65 2014 -15 $187,000 $5,359,000 $5,546,000 $33.41 2015 -16 $187,000 $1,891,000 $2,078,000 $12.44 2016 -17 $187,000 $3,595,000 $3,782,000 $22.51 2017 -18 $187,000 $3,623,000 $3,810,000 S22.54 2018 -19 $3,603,000 $3,603,000 $21.19 2019 -20 $3,601,000 $3,601,000 $21.06 2020 -21 $3,608,000 $3,608,000 $20.98 2021 -22 $3,597,000 S3,597,000 $20.79 2022 -23 $3,593,500 $3,593,500 $20.65 2023 -24 $3,584,000 $3,584,000 $20.48 2024 -25 $1,205,000 $1,205,000 $6.85 2025 -26 $2,382,102 $2,382,102 $13.46 2026 -27 $2,380,000 $2,380,000 $13.37 2027 -28 $2,374,000 $2,374,000 513.26 2028 -29 SO $0.00 2029 -30 2030 -31 2031 -32 2032 -33 2033 -34 Hybrid of debt financing and raising rates For purposes of this analysis, options of $75 million, $85 million and $90 million of Revenue Bonds, with the remaining amount paid by the District using cash, were evaluated. Again, Attachment D summarizes the various options and provides key information as well as total cost while Attachment J provides the detailed calculations for each scenario. Attachment K is a summary of the various debt financing options for Revenue Bonds and Pension Obligation Bonds developed by Tom Lockard. It provides interest rates, total debt service and average annual debt service numbers for term lengths of fifteen, twenty, and thirty years. Revenue Bonds 15 Years Scenario A Table 11 20 Years Scenario B $75 Million (Scenario 5) $160,280,908 $177,706,367 $85 Million (Scenario 7) $160,624,616 $180,255,066 $90 Million (Scenario 9) $166,379,583 $186,829,849 30 Years Scenario C $221,279,021 $228,124,916 $231,731,458 UAAL Financing Report March 9, 2012 Page 15 of 22 Debt financing $75 million using Revenue Bonds over fifteen years is the most desirable scenario, balancing rate, cost and outstanding debt, and would save the District a projected $40.4 million. Debt financing over fifteen years reduces the length of outstanding debt and provides the District with greater flexibility if EPA requirements force additional debt financing. It also pays the debt off in fifteen years compared to eighteen years as the amortization period for CCCERA UAAL. The $87,195,000 Capital Projects Program or budget should yield $75 million of projects available for debt financing using Revenue Bonds. Scenarios 6, 8 and 10 are also presented for Board consideration. The concept is simply to debt finance the $120 million UAAL using as much of Revenue Bonds as possible, because Revenue Bonds have a lower interest rate, and augment the balance using cash (Scenarios 5, 7, and 9) or Pension Obligation Bonds (Scenarios 6, 8, and 10). There is a Board policy issue. The Board could debt finance the entire $120 million UAAL at this time because the rates are very low. The District could sell $75 million or $85 million of Revenue Bonds now for three years of capital project and return to the market in three years and pursue the remaining $45 or $35 million using Revenue Bonds at possibly a lower rate then Pension Obligation Bonds. The answer to this question lies with where the Board believes interest rates will be three years from now. Attachment J displays the Sewer Service Charge rate impact for all options reviewed. The rate impact for $75 million/ $35 million and $85 million / $35 million in Revenue /Pension Obligation Bonds is displayed below. There are two components that comprise the District's CCCERA contributions; one for normal costs and one for the unfunded liability, UAAL. The table below displays the impact on the sewer service charge to pay the normal cost and the debt financed UAAL. The District currently pays $39.64, displayed in red, of the $371 annual Sewer Service Charge for Normal Cost of the retirement system to the employer. This will increase to an average of $43.84 or a ten and one half percent (10 %) increase over the next twenty years. The table below shows the actual Sewer Service Charge by fiscal year needed to pay Normal Cost. The UAAL impact is added to the Normal Cost. If the District paid the $120 million UAAL over the life of the liability then the following UAAL Sewer Service Charge impact would be realized. The table below displays the Sewer Service Charge impact from the increased UAAL by fiscal year. The District will pay $25.76, displayed in red, of the $371 annual Sewer Service Charge for the UAAL component of the retirement system cost to the employer. This will increase to an average of $53.39 or a 107% increase over the next eighteen years. The table below also shows the actual Sewer Service Charge by fiscal year needed to pay the UAAL component. Please note that the Sewer Service Charge increases substantially from fiscal year 2015 -2016 through fiscal year 2018 -2019 and then levels off at approximately $42 for the next ten years. Also note that the Sewer Service Charge goes to a high of $528.40. UAAL Financing Report March 9, 2012 Page 16 of 22 Please note that fiscal years 2011 -2012 and 2012 -2013 adds $30 to the sewer service charge already approved by the Board of Directors. $311 + $30 = $341.00 for 2011- 2012 and $341.00 + $30 = $371.00 for 2012 -2013. Table 12 $75 Million Revenue Bonds @ 15 Years plus $45 Million Cash Payments Fiscal Year Sewer Service Charge Impact Sewer Service Charge Adj _ _ CCCERA Normal Cost Sewer Service Charge Impact Sewer Service Charge Adj Sewer Service Charge Total Ad Sewer Service Charge Total Impact Sewer Service Charge Total 2012 -2013 S25.76 $6,500,214.00 S39.64 $65.40 S371.00 2013 -2014 $27.61 $1.84 $7,260,159.00 $44.00 $4.37 $6.21 $71.61 $407.21 2014 -2015 $27.61 $0.00 $7,420,783.00 $44.70 $0.70 $0.70 $72.31 $437.91 2015 -2016 $106.59 $78.99 $7,578,256.00 $45.38 $0.68 579.66 $151.97 $517.57 2016 -2017 $117.64 $11.04 $7,586,928.00 $45.16 -$0.22 $10.82 $162.80 S528.40 2017 -2018 $116.94 -$0.70 $7,538,870.00 $44.61 -$0.55 -$1.25 $161.55 $527.15 2018 -2019 $93.22 - $23.72 $7,509,585.00 $44.17 -$0.43 - $24.15 $137.39 $503.00 2019 -2020 $43.28 - $49.94 $7,538,149.00 $44.08 -$0.09 - $50.03 $87.36 $452.96 2020 -2021 $43.03 1 -$0.25 $7,566,856.00 $43.99 -$0.09 -$0.34 $87.02 $452.62 2021 -2022 $42.78 -$0.25 $7,595,707.00 $43.91 -S0.09 -$0.34 $86.69 $452.29 2022 -2023 $42.53 -$0.25 $7,624,701.00 $43.82 -$0.09 -$0.33 $86.35 $451.96 2023 -2024 $42.29 -$0.24 $7,653,674.86 $43.74 -$0.08 -$0.33 $86.03 $451.63 2024 -2025 $42.05 -$0.24 $7,682,758.83 $43.65 -$0.08 -$0.32 $85.70 $451.30 2025 -2026 $41.81 -$0.24 $7,711,953.31 $43.57 -$0.08 -$0.32 $85.38 $450.99 2026 -2027 S41.58 -$0.23 $7,741,258.73 $43.49 -$0.08 -$0.32 $85.07 $450.67 2027 -2028 $41.35 -$0.23 $7,770,675.52 $43.41 -$0.08 -$0.31 $84.76 $450.36 2028 -2029 $41.12 - $0.23 $7,800,204.08 $43.33 -$0.08 -$0.31 $84.45 $450.05 2029 -2030 $23.85 - $17.26 $7,829,844.86 $43.26 -$0.08 - $17.34 $67.11 $432.71 2030 -2031 $0.00 - $23.85 $7,859,598.27 $43.18 -$0.07 - $23.93 $43.18 $408.79 2031 -2032 50.00 $0.00 $7,889,464.74 $43.11 -$0.07 -$0.07 $43.11 $408.71 2032 -2033 $0.00 $0.00 $7,919,444.71 $43.04 -$0.07 -$0.07 1 $43.04 $408.64 2033 - 2034 $0.00 $0.00 $7,949,538.60 $42.97 -$0.07 -$0.07 1 $42.97 $408.57 The fiscal year 2012 -2013 sewer service charge of $371 would be adjusted by fiscal year as displayed above in the last column. The numbers displayed represent amortized payments calculated at the level dollar. The actual rates are presented at the end of the report and reflect actual debt financing and payment schedules. The same comments can be made for the $85 Million scenario as the $75 million scenario. UAAL Financing Report March 9, 2012 Page 17 of 22 Table 13 $85 Million Revenue Bonds @ 15 Years plus $35 Million Cash Payments Fiscal Year Sewer Service Charge Impact Sewer Service Charge Ad' CCCERA Sewer Normal Service Cost Charge Impact Sewer Service Charge Adj Sewer Sewer i Service Service Charge Charge Total Ad- Total Impact Sewer Service Charge Total 2012 -2013 S25.76 $6,500,214.00 S39.64 S65.40 S371.00 2013 -2014 $27.61 $1.84 $7,260,159.00 S44.00 $4.37 $6.21 $71.61 $407.21 2014 -2015 $27.61 $0.00 $7,420,783.00 $44.70 $0.70 $0.70 $72.31 $437.91 2015 -2016 $112.12 $84.51 $7,578,256.00 $45.38 $0.68 $85.19 $157.50 $523.10 2016 -2017 $123.13 S11.01 S7,586,928.00 $45.16 -50.22 $10.79 $168.29 $533.89 2017 -2018 $94.76 - $28.37 $7,538,870.00 $44.61 -$0.55 - $28.92 $139.37 $504.97 2018 -2019 $48.96 - $45.80 $7,509,585.00 $44.17 -$0.43 - $46.23 $93.14 $458.74 2019 -2020 $48.68 -$0.29 $7,538,149.00 $44.08 -$0.09 -$0.38 $92.76 $458.36 2020 -2021 $48.40 -$0.28 $7,566,856.00 $43.99 -$0.09 -$0.37 $92.39 $457.99 2021 -2022 $48.12 -$0.28 $7,595,707.00 $43.91 -$0.09 -S0.37 $92.02 $457.62 2022 -2023 $47.84 -$0.28 $7,624,701.00 $43.82 -$0.09 -$0.36 $91.66 $457.26 2023 -2024 $47.57 -$0.27 $7,653,674.86 $43.74 -$0.08 -$0.36 $91.30 $456.90 2024 -2025 $47.30 -$0.27 $7,682,758.83 $43.65 -$0.08 -S0.35 $90.95 $456.55 2025 -2026 $47.03 -$0.27 $7,711,953.31 $43.57 -$0.08 -$0.35 $90.60 $456.20 2026 -2027 $46.76 -$0.26 $7,741,258.73 $43.49 -$0.08 -$0.34 $90.25 $455.86 2027 -2028 $46.50 -S0.26 $7,770,675.52 $43.41 -$0.08 -$0.34 $89.91 $455.52 2028 -2029 $46.24 -50.26 $7,800,204.08 $43.33 -$0.08 -$0.34 $89.58 $455.18 2029 -2030 $26.83 - $19.42 $7,829,844.86 $43.26 -$0.08 - $19.49 $70.09 S435.69 2030 -2031 $0.00 - $26.83 $7,859,598.27 $43.18 -50.07 - $26.90 $43.18 $408.79 2031 -2032 $0.00 $0.00 $7,889,464.74 $43.11 -50.07 -$0.07 $43.11 S408.71 2032 -2033 $0.00 50.00 $7,919,444.71 $43.04 -S0.07 -$0.07 $43.04 $408.64 2033 -2034 $0.00 $0.00 $7,949,538.60 542.97 -$0.07 -$0.07 $42.97 $408.57 The numbers displayed represent amortized payments calculated at the level dollar. The actual rates are presented at the end of the report and reflect actual debt financing and payment schedules. As previously stated, staff requested Mr. Lockard to develop the actual debt payment structure for the two scenarios of $75/$45 million and $85/$35 million Revenue Bonds /Pension Obligation Bonds. Using the numbers for the Revenue Bond costs, the following table displays the bond payment, total debt service cost and rate impact. The blue line indicates the end of the 15 year financing. The Sewer Service Charge displayed in Tables 14 and 15 is for the debt payment, borrowing $75 million only, and does not reflect the Normal Cost Portion UAAL Financing Report March 9, 2012 Page 18 of 22 Table 14 $75 Million Revenue Bonds @ 15 Years plus $45 Million Cash Payments Fiscal Year 2012 -13 Bond Payment Sewer Service Charge Impact Sewer Service Charge Ad' Sewer Service Charge Total $371.00 $2,277,582 $13.89 $12.88 2013 -14 $5,485,800 $33.25 $19.36 $390.36 2014 -15 $5,474,000 $32.98 -$0.27 $390.09 2015 -16 $7,287,750 $43.64 $10.66 $400.75 2016 -17 $7,284,950 $43.36 -$0.28 $400.48 2017 -18 $7,283,400 $43.10 -$0.27 $400.21 2018 -19 $7,277,800 $42.81 -$0.29 $399.92 2019 -20 $7,465,200 $43.66 $0.85 $400.77 2020 -21 $7,462,600 $43.39 -$0.27 $400.50 2021 -22 $7,462,000 $43.13 -$0.25 $400.25 2022 -23 $7,458,000 $42.86 -$0.27 $399.97 2023 -24 $7,463,500 $42.65 -$0.21 $399.76 2024 -25 $8,699,500 $49.43 $6.78 $406.54 2025 -26 $8,698,750 $49.15 -$0.28 $406.26 2026 -27 $8,699,250 $48.87 -$0.27 $405.98 $105,780,082 Table 15 $85 Million Revenue Bonds @ 15 Years plus $35 Million Cash Payments Fiscal Year Bond Payment Sewer Service Charge Impact Sewer Service Charge Adj_ Sewer Service Charge Total 2012 -13 $2,112,571 $12.88 $371.00 2013 -14 $6,616,550 $40.10 $27.22 $398.22 2014 -15 $6,601,650 $39.77 -$0.33 $397.89 2015 -16 $8,415,450 $50.39 $10.62 $408.51 2016 -17 $8,412,100 $50.07 -$0.32 $408.19 2017 -18 $8,409,400 $49.76 -$0.31 $407.88 2018 -19 $8,404,800 $49.44 -$0.32 $407.56 2019 -20 $8,592,000 $50.25 $0.81 $408.36 2020 -21 $8,588,000 $49.93 -$0.32 $408.05 2021 -22 $8,584,800 $49.62 -$0.31 $407.74 2022 -23 $8,587,000 $49.35 -$0.27 $407.47 2023 -24 $8,588,250 $49.08 -$0.27 $407.19 2024 -25 $9,828,000 $55.84 $6.77 $413.96 2025 -26 $9,828,500 $55.53 -$0.31 $413.65 2026 -27 $9,822,750 $55.18 -$0.34 $413.30 $121,391,821 UAAL Financing Report March 9, 2012 Page 19 of 22 POLICY ISSUES At the Budget and Finance Committee meeting on February 27, 2012, a discussion occurred regarding the desirability to raise rates significantly upfront to place the District in a better financial position. The concept of a $120 rate increase versus a three -year $60 rate increase was also discussed. It seemed that there was a greater comfort with a three -year $60 rate increase. Staff has done a preliminary analysis that shows adopting three $60 rate increases for fiscal years 2013 -2014, 2014 -2015 and 2015- 2016 would benefit the District. The strategy could be to pay off the retirement UAAL by the end fiscal year 2016 -2017, with thirteen years of debt service payments of approximately $7.5 million, begin increased funding to pay off the GASB 45 Trust actuarial calculated liability of approximately $70 million with half ($30) of the $60 rate while adequately funding the Operational (O &M) and Capital costs with the other half ($30). Paying for the unfunded liabilities could be accomplished by a combination of cash and bond funding. The Board has the following options to fund the retirement UAAL. Fund the UAAL based upon CCCERA's adopted amortization schedule and interest rate of 7.75 %. 2. Significantly increase the Sewer Service Charge and pay off the UAAL with cash thereby saving all interest expense. 3. Debt Finance the entire UAAL using Revenue and /or Pension Obligation Bonds and increase the Sewer Service Charge to pay off the principal and interest thereby saving interest expense as compared to the 7.75% charged by CCCERA. 4. Debt Finance a portion of the UAAL using Revenue and /or Pension Obligation Bonds and increase the Sewer Service Charge to pay off the remainder of the UAAL thereby saving interest expense as compared to the 7.75% charged by CCCERA. The Board could debt finance the entire $120 million UAAL at this time because the rates are very low. The District could sell $75 million or $85 million of Revenue Bonds now for three years of capital project and return to the market in three years and pursue the remaining $45 million using Revenue Bonds at possibly a lower rate then Pension Obligation Bonds. The answer to this question lies with what the Board believes interest rates will be three years from now and how much the Board chooses to raise rates. FINANCIAL ANALYSIS SUMMARY Table 16 provides a summary of the financial analysis to assist the Board in making a decision regarding the financing of the retirement District's UAAL. UAAL Financing Report March 9, 2012 Page 20 of 22 As can be seen by the table and the yellow highlighted columns, the more of the debt that can be paid with cash and the sooner, the more savings will occur. The most cost effective Scenario is 2B, paying the UAAL off with cash raised from significantly increased rates. The negative to the scenario is the significantly increased rates. A better compromise would be to debt finance for $75 million using Revenue Bonds and raise rates to pay off the UAAL early and pay the new debt payments. This scenario borrows the least amount keeping the District's options for more debt financing in the future if mandated by regulatory agencies and requirements. The detailed calculations for the $75 million Revenue Bond debt with a $10, $30, and $60 rate increase is found in Attachment N. The blue line indicates the end of fifteen (15) years of debt service payments. Table 16 Fiscal $120 Million $75 Million $75 Million $75 Million $75/$45 $85/$35 Year Base Line $10 $30 $60 Million Million Swr Svc Chg Swr Svc Chg Swr Svc Chg Rev Bonds/ Rev Bonds/ PO Bonds PO Bonds ;;,;si 1.00 2012 -13 $371.00 $371.00 $371.00 S371.00 3; 1 00 2013 -14 $373.55 $383.55 $403.55 $433.55 $373.55 $373.55 2014 -15 $392.37 $356.61 $376.61 $406.61 $798.42 $858.66 2015 -16 $408.67 $432.31 $452.31 $422.31 $452.99 $458.52 2016 -17 $419.43 $462.08 $460.27 S421.12 $463.48 $468.97 2017 -18 $418.56 $449.70 $377.80 $377.80 $462.35 $440.17 2018 -19 $418.03 $388.19 $388.19 S388.19 $438.54 $394.28 2019 -20 $417.52 $387.83 $387.83 $387.83 $388.51 $393.91 2020 -21 $417.01 $387.49 $387.49 5387.49 $388.17 $393.54 2021 -22 $416.51 $387.12 $387.12 $387.12 $387.84 $393.17 2022 -23 $416.02 $387.87 $387.87 $387.87 $387.51 $392.81 2023 -24 $415.53 $387.53 $387.53 $387.53 $387.18 $392.45 2024 -25 $415.04 $387.20 $387.20 $387.20 $386.86 $392.10 2025 -26 $390.70 $386.86 $386.86 $386.86 $386.54 $391.75 2026 -27 $390.36 $386.58 $386.58 $386.58 $386.23 $391.41 2027 -28 $390.03 $393.17 $393.17 $393.17 $385.92 $391.07 2028 -29 $389.70 $392.82 $392.82 $392.82 $385.61 $390.74 2029 -30 $389.37 $392.48 $392.48 $392.48 $368.27 $371.25 2030 -31 $387.24 $344.35 $344.35 $344.35 $344.35 $344.35 2031 -32 $386.94 $344.28 $344.28 $344.28 $344.28 $344.28 2032 -33 $370.11 $344.21 $344.21 $344.21 $344.21 $344.21 2033 -34 $354.74 $344.14 $344.14 S344.14 $344.14 $344.14 High $419.43 $462.08 $460.27 $421.12 $463.48 $468.97 Low $354.74 $344.14 S344.14 $344.14 $344.14 $344.14 Average $397.66 $386.24 $385.62 $385.21 $408.00 $410.74 Cost $201,056,339 $156,132,932 $153,637,328 $151,981,420 $160,280,908 $160,624,637 Savings $0 1 $44,923,407 $47,419,011 $49,074,919 $40,775,431 $40,431,702 UAAL Financing Report March 9, 2012 Page 21 of 22 If the Board implemented three consecutive $60 Sewer Service Charge increases, at least half of the rate increase could be used for paying off the unfunded liabilities. This would place the District in a better future financial position to react to regulatory required process improvements or changes and capital projects needed for renewal and replacement of existing infrastructure or a catastrophic event. FUTURE CONSIDERATION Based on staff's preliminary financial analysis, it appears the District could be out of all debt and fully funded all liabilities in fifteen years, by fiscal year 2027 -2028. In addition, significant funding would be provided to fund capital infrastructure renewal and replacement decreasing the need to further debt finance. Staff is unable to evaluate future funding for major modifications from future regulatory requirements. Current Fiscal Year 2011 -2012 UAAL Payoff 2016 -2017 Compensated Absences Fully Funded 2022 -2023 GASB 45 Trust Fully Funded 2023 -2024 District Existing Debt Payoff 2027 -2028 UAAL Debt Payoff 2029 -2030 RECOMMENDATION Staff analysis has documented that significant savings are possible by prepaying the UAAL to avoid or reduce the 7.75% interest charged by CCCERA. However, there is a concern that the District has limited control over the funds once payments are made to CCCERA. This raises a number of questions, such as: Can we require that CCCERA sequester our funds such that they are credited only to the District? What happens in the future if we become overfunded due to possible changes to our benefit structure? Therefore, staff is recommending a two -step process as follows: Request a written agreement from CCCERA identifying the payoff method for the UAAL and the rules and procedures for early payment. Receive confirmation that CCCERA will remain de- pooled, allowing monies paid by the District to CCCERA be credited only to the District's payoff of the UAAL. Obtain clarification on how future over or under funding with CCCERA will be addressed. If all of these questions can be answered and an appropriate agreement crafted to protect the District's interests, then consider proceeding to step two. 2. If the Board receives a favorable response from CCCERA, conduct additional analysis and discussions to determine whether to proceed with prepaying the UAAL and to select the optimum approach. It is recommended that this step take place after the new finance manager has been selected so that person is UAAL Financing Report March 9, 2012 Page 22 of 22 intimately involved in the analysis and decision making regarding this important issue. V 'rSEGAL THE SEGAL COMPANY 100 Montgomery Street Suite 500 San Francisco. CA 94104 -4309 T 415,263 8260 F 415 263.8290 www segalco.com October 5, 2011 Ms. Marilyn Leedom Chief Executive Officer Contra Costa County Employees' Retirement Association 1355 Willow Way, Suite 221 Concord, CA 94520 Attachment A John IN, Mcmroe ASA, S1AAA. EA VIce P esldent 8 Aienxlate %1ilUY+Y Imnn- aegflisdoalm 03111 Re: Allocation of December 31, 2010 Valuation Results for CCCSD Dear Marilyn: As requested, the following provides an allocation of the Unfunded Actuarial Accrued Liability (UAAL), Actuarial Accrued Liability (AAL) and the Valuation Value of Assets (VVA) as of December 31, 2010 for Central Contra Costa Sanitary District ( CCCSD). We have also included CCCSD's funded ratio on a VVA basis. Since the depooling action taken by the Board effective December 31, 2009, CCCSD is now in their own cost group and has their UAAL determined separately in the valuation. Based on the results in the December 31, 2010 actuarial valuation, we have prepared the breakdown of the UAAL, AAL, VVA and funded ratio for CCCSD below. Al. enefits, Compensation and HR Consulting Offices throughout the United States and Canada AFounding Member of the Multinational Group of Actuaries and Consultants, a global affiliation of independent firms Unfunded Actuarial Actuarial Valuation Accrued Accrued Value of Assets Liability Funded Ratio Employer Liability (AAL) (VVA) (UAAL) (VVA Basis) Central Contra Costa $278,290,000 S 178,449,000 $99,841,000 64.1% Sanitary District Al. enefits, Compensation and HR Consulting Offices throughout the United States and Canada AFounding Member of the Multinational Group of Actuaries and Consultants, a global affiliation of independent firms Ms. Marilyn Leedom October 5, 2011 Page 2 All of the above calculations are based on the December 31, 2010 actuarial valuation results including the participant data and actuarial assumptions on which that valuation was based. That valuation and these calculations were completed under the supervision of John Monroe, ASA, MAAA, Enrolled Actuary. I am a member of the American Academy of Actuaries and I meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion herein. Please let us know if you have any questions. Sincerely, FO- mem� John Monroe CZI /gxk cc: Rick Koehler 5155967v 1 /05337.001 CENTRAL CONTRA COSTA SANITARY DISTRICT UNFUNDED ACTUARIAL ACCRUED LIABILITY (UAAL) ANNUAL PAYMENT SCHEDULE Fiscal Year 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 Total Projected 2013 -14 UAAL UAAL $ 36,483.000 $ 3,296.000 $ 31,239.235 $ 28,823.145 $ 20.158.620 S 120.000.000 Years Amortized 13 17 18 18 18 Assurned Rate 7.75% 7.75% 7.75% 7.75% 7.75% Annual Payment $4,225,172 $329,777 $3,040,093 $2.804,968 $1,961,766 S12.361,777 Fiscal Year 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 Total UAAL UAAL Increase UAAL Increase UAAL Increase UAAL Increase 2010 -11 $4,225.172 S4.225.172 2011 -12 $4,225,172 5329.777 S4.554.950 2012 -13 $4,225,172 $329.777 S3.040.093 $7.595,043 2013 -14 54,225,172 $329,777 $3.040.093 S2.804.968 510.400,010 2014 -15 S4.225,172 $329,777 $3,040.093 52.804.968 $1,961,766 S12,361,777 2015 -16 S4.225,172 $329.777 $3.040,093 S2.804,968 S1,961,766 $12,361,777 2016 -17 $4.225.172 5329.777 $3.040.093 S2,804,968 S1,961.766 S12.361.777 2017 -18 $4,225.172 $329,777 $3.040.093 S2.804.968 S1.961.766 $12.361,777 2018 -19 54,225,172 $329,777 $3,040,093 $2,804.968 S1.961,766 $12.361,777 2019 -20 $4,225,172 $329,777 $3.040,093 52,804,968 $1.961,766 $12,361,777 2020 -21 $4,225,172 $329,777 $3,040.093 S2,804.968 51,961,766 S12,361,777 2021 -22 $4,225,172 5329,777 $3,040,093 $2.804,968 S1.961,766 $12.361.777 2022 -23 S4.225,172 $329.777 $3.040,093 52,804.968 $1,961.766 S12.361,777 2023 -24 S329,777 $3,040,093 $2,804,968 $1.961,766 S8.136.604 2024 -25 $329,777 $3,040.093 $2,804,968 S1.961,766 $8.136.604 2025 -26 $329.777 $3,040,093 $2,804.968 S1,961,766 $8,136.604 2026 -27 5329,777 $3.040,093 $2,804.968 S1.961.766 $8.136.604 2027 -28 S329.777 $3,040,093 $2,804,968 S1,961.766 $8.136.604 2028 -29 53,040,093 $2,804,968 S1.961.766 $7,806.827 2029 -30 $3.040,093 $2,804.968 $1,961,766 $7.806,827 2030 -31 52,804.968 S1.961,766 $4,766,734 2030 -31 S1.961,766 $1.961,766 Total S54.927.238 $5.606,216 S54.721.674 S50,489,417 $35.311.794 $201,056.340 Attachment C Contra Costa County Employees' Retirement Association Actuarial Valuation and Review as of December 31, 2010 Copyright 0 2011 THE SEGAL GROUP, INC., THE PARENT OF THE SEGAL COMPANY ALL RIGHTS RESERVED SECTION 2: Valuation Results for the Contra Costa County Employees' Retirement Association Because actuarial planning is long term, it is useful to see how the assumed investment rate of return has followed actual experience over time. The chart below shows the rates of return on an actuarial, valuation and market value basis for the last ten years. CHART 12 Based upon recommendations previously adopted by the Board, we have maintained the assumed rate of return of 7.75 %. Investment Return - Market Value, Actuarial Value, and Valuation Value: 2001 - 2010 Note: Each year's yield is weighted by the average asset value in that year. -�-'SEGAL Market Value Investment Actuarial Value Valuation Value Return Investment Return Investment Return Year Ended Percent Percent Percent December 31 Amount of Assets Amount of Assets Amount of Assets 2001 $(121,804,662) (4.23 %) $278,746,528 9.73% $186,188,249 7.92% 2002 (274,820,794) (10.28 %) 93,144,770 3.05% 227,080,187 8.53% 2003 599,528,120 23.44% 83,420,012 2.52% 244,215,190 7.41% 2004 406,427,237 12.27% 136,674,234 3.85% 135,741,405 3.84% 2005 331,400,271 8.71% 216,618,073 5.74% 215,737,484 5.74% 2006 603,899,378 14.23% 353,776,306 8.63% 352,838,472 8.64% 2007 294,694,885 6.03% 522,206,583 11.63% 521,211,436 11.64% 2008 (1,477,705,765) (28.35 %) 238,397,117 4.73% 237,402,129 4.72% 2009 736,956,891 19.68% 18,226,933 0.34% 17,021,116 0.32% 2010 594,637,090 13.35% 95,918,913 1.82% 94,835,030 1.80% Total $1,693,212,651 $2,037,129,469 $2,232,270,698 Five -Year Average Return 3.34% 5.06% 5.06% Ten -Year Average Return 4.48% 4.99% 5.61% Note: Each year's yield is weighted by the average asset value in that year. -�-'SEGAL Z t s i s s s Attachment D t� AV Investment _;0 * Using time- weighted rate of return based on the market rate of return. ** Global Equity Manager hired in September 2010. * ** Global Fixed Income Manager hired in December 2007. CURRENT ANNUALIZED YEAR 3 YEAR 5 YEAR 10 YEAR DOMESTIC EQUITY 17.80% -1.30% 3.10% 2.10% Benchmarks: S &P 500 15.10% -2.90% 2.30% 1.40% Russell 2000 26.90% 2.20% 4.50% 6.30% Russell 3000 16.90% -2.00% 2.70% 2.20% INTERNATIONAL EQUITY 8.30% -9.30% 1.80% 4.30% Benchmarks: MSCI SAFE Index 8.20% -6.60% 2.90% 3.90% MSCI ACWI ex -US 11.60% -4.60% 5.30% 6.00% GLOBAL EQUITY ** - _ Benchmarks: MSCI World Index 12.70% -4.20% 3.10% 2.90% DomESTIc FIXED INCOME 10.60% 6.20% 6.40% 6.60% Benchmarks: Barclays Aggregate 6.50% 5.90% 5.80% 5.80% Barclays Universal 7.20% 6.00% 5.90% 6.00% Merrill Lynch HY 1I 15.20% 10.20% 8.90% 8.60% T Bills 0.10% 0.80% 2.40% 2.40% GLOBAL FIXED INCOME * ** 8.80% 6.50% - Benchmark: Barclays Global Aggregate 5.50% 5.80% 6.70% - REAL ESTATE 21.00% -7.50% 0.50% 9.20% Benchmarks: NCREIF Property Index 13.10% -4.20% 3.50% 7.40% Wilshire REIT 28.60% 0.20% 2.40% 10.50% ALi'ERNATIVE INVESTMENTS 10.50% 3.50% 11.10% 6.20% S &P 500 + 400 bps 19.60% 1.10% 6.40% 5.50% TOTAL FUND 14.00% 0.70% 4.80% 5.70% CPI + 400 bps 5.60% 5.50% 6.30% 6.90% * Using time- weighted rate of return based on the market rate of return. ** Global Equity Manager hired in September 2010. * ** Global Fixed Income Manager hired in December 2007. UAAL FINANCIAL ANALYSIS SUMMARY SCENARIOS ANALYZED Scenario 1A Scenario 1 B Base Line Base Line Scenario 2A Scenario 2B $10SSChq Increase $20 SSChg Increase Cash Payments $100 million $120 million $120 million $120 million Pension Obligation Bonds Pension Obligation Bonds Revenue Bonds $120 million $120 million $120 million Revenue Bonds Financing Term Length 21 years 21 years 15 Years 13 Years Interest Rate 7.75°% 7.75% 20 years 30 Years Average Annual Debt Payment $7,892,598 $9,574,112 $11,284,294 $11,672,295 Total Cost $165,744,550 $201,056,351 $169,264,405 $151,739,834 Savin s Compared to Scenario 1 B Base Scenario I Base Scenario $31,791,946 549,316,517 Scenario 3A Scenario 3B Scenario 3C Rev Bonds Rev Bonds Rev Bonds Scenario 4A Scenario 4B Scenario 4C PO Bond PO Bond PO Bond Cash Payments $45 Million $45 Million $45 Million Pension Obligation Bonds $120 million $120 million $120 million Revenue Bonds $120 million $120 million 120 million $75 Million $75 Million $75 Million Financing Term Length 15 years 20 years 30 Years 15 years 20 years 30 years Interest Rate 3.28°% 3.89°% 4.50°% 4.86°% 5.63°% 6.06°% Average Annual Debt Service $11,719,083 $10,081,563 $8,709,827 $13,150,507 $11,855,586 $10,576,144 Total Cost (Debt & Cash Payments) $172,400,739 $198,718,808 $257,665,717 $193,458,577 $233,686,777 $312,877,599 Savin s Compared to Scenario 16 1 $28,655,612 $2,337,543 (S56.609,366) $7,597,774 (S32,630,426) 1 ($111,821,248) Scenario 5A Scenario 5B Scenario 5B Rev Bonds+ Cash Rev Bonds + Cash Rev Bonds + Cash Scenario 6A Scenario 6B Scenario 6B Rev+ PO Bonds Rev+ PO Bonds Rev+ PO Bonds Cash Payments $45 Million $45 Million $45 Million Pension Obligation Bonds $45 million $45 million $45 million Revenue Bonds $75 Million $75 Million $75 Million $75 Million $75 Million $75 Million Financing Term Length -Bonds 15 years 20 years 30 years 15 years 20 years 30 years Interest Rate 3.20°% 3.84% 4.59°% 4.68% / 3.20°% 5.51% / 3.84°% 6.18°% / 4.59°% Average Annual Debt Service $7,400,964 $6,401,167 $5,710,271 $12,421,303 $11,018,465 $9,980,346 Average Annual Cash Payment $8,725,030 $8,725,030 $8,725,030 Financing Term Length -Cash 6 Years 6 Years 6 Years Total Cost (Debt & Cash Payments) $160,280,908 $177,706,367 $221,279,021 $181,144,008 $215,778,279 $295,251,890 Savin s Com ared to Scenario 1 B 1 $40,775,443 $23,349,984 (S20.222,670) $19,912,343 1 (S14,721,W,9) 1 (S94,195,539) Scenario 7A Scenario 7B Scenario 7C Rev Bonds + Cash Rev Bonds + Cash Rev Bonds + Cash Scenario 8A Scenario 86 Scenario 8C Rev+ PO Bonds Rev+ PO Bonds Rev + PO Bonds Cash Payments $35 Million $35 Million $35 Million Pension Obligation Bonds $35 Million $35 Million $35 Million Revenue Bonds $85 Million $85 Million $85 Million $85 Million $85 Million $85 Million Financing Term Length 15 Years 20 Years 30 Years 15 years 20 years 30 years Interest Rate 3.12°% 3.82°% 4.56°% 4.71% / 3.12°% 5.56°% / 3.82% 6.19°% / 4.56°% Average Annual Debt Service $8,324,011 $7,201,136 $6,385,085 $12,273,316 $10,861,690 $9,748,238 Average Annual Cash Payment $7,846,563 $7,846,563 $7,846,563 Financing Term Length -Cash 5 Years 5 Years 5 Years Total Cost (Debt & Cash Payments) $160,624,637 $180,255,066 $228,124,916 $178,985,850 $212,708,093 $288,385,367 Savin s Compared to Scenario 1 B 1 $40,431,714 $20,801,285 (S27,068,565) $22,070,501 1 (S 11,651.742) $87,329,016) Scenario 9A Scenario 9B Scenario 9C Rev Bonds + Cash Rev Bonds + Cash Rev Bonds + Cash Scenario 10A Scenario 10B Scenario10C Rev+ PO Bonds Rev+ PO Bonds Rev+ PO Bonds Cash Payments $30 Million $30 Million $30 Million Pension Obligation Bonds $30 Million $30 Million $30 Million Revenue Bonds $90 Million $90 Million $90 Million $90 Million $90 Million $90 Million Financing Term Length 15 years 20 years 30 years 15 years 20 years 30 years Interest Rate 3.12°% 3.81% 4.59°% 4.73°% / 3.12% 5.60% / 3.81% 6.19°% / 4.59°% Average Annual Debt Service $8,804,687 $7,600,951 $6,718,430 $12,218,595 $10,783,287 $9,603,989 Average Annual Cash Payment $6,595,579 $6,595,579 $6,595,579 Financing Term Length -Cash 5 Years 5 Years 5 Years Total Cost (Debt & Cash Payments) $166,379,583 $186,829,849 $231,731,458 $178,187,841 $211,172,706 $284,118,006 Savin s Compared to Scenario 1B 1 $34,676,768 $14,226,502 ($30.675,107) $22,868,510 (S 10, 116,355) 1 (S83.061,655) Central Contra Costa Sanitary District UAAL Financing Analysis $100 Million Fiscal Year UAAL Years Amortized Assumed Rate Annual Payment 2010 -11 $ 36,483,000 13 7.75% $4,225,172 2011 -12 $ 3,296,000 17 7.75% $329,777 2012 -13 $ 31,239,235 18 7.75% $3,040,093 2013 -14 $ 28,823,145 18 7.75% $2,804,968 Total Projected 2014 -15 UAAL $ 99,841,380 $3,040,093 $10,400,010 Financing Table $ 99,841,380 $ 36,483,000 $ 3,296,000 $ 31,239,235 $ 28,823,145 $ 99,841,380 Fiscal Year 2009 -10 UAAL 2010 -11 UAAL Increase 2011 -12 UAAL Increase 2012 -13 UAAL Increase 2010 -11 $4,225,172 $4,225,172 2011 -12 $4,225,172 $329,777 $4,554,950 2012 -13 $4,225,172 $329,777 $3,040,093 $7,595,043 2013 -14 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 2014 -15 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 2015 -16 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 2016 -17 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 2018 -19 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 2019 -20 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 2020 -21 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 2021 -22 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 2022 -23 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 2023 -24 $329,777 $3,040,093 $2,804,968 $6,174,838 2024 -25 $329,777 $3,040,093 $2,804,968 $6,174,838 2025 -26 $329,777 $3,040,093 $2,804,968 $6,174,838 2026 -27 $329,777 $3,040,093 $2,804,968 $6,174,838 2027 -28 $329,777 $3,040,093 $2,804,968 $6,174,838 2028 -29 $3,040,093 $2,804,968 $5,845,061 2029 -30 $3,040,093 $2,804,968 $5,845,061 2030 -31 $2,804,968 $2,804,968 2031 -32 $0 Total $54,927,238 $5,606,216 $54,721,674 $50,489,417 $165,744,545 Central Contra Costa Sanitary District UAAL Financing Analysis $120 Million Fiscal Year UAAL $329,777 Years Amortized Assumed Rate Annual Payment $12,361,777 2018 -19 2010 -11 $ 36,483,000 13 7.75% $4,225,172 2019 -20 $4,225,172 2011 -12 $ 3,296,000 17 7.75% $329,777 $4,225,172 $329,777 2012 -13 $ 31,239,235 18 7.75% $3,040,093 $329,777 $3,040,093 2013 -14 $ 28,823,145 18 7.75% $2,804,968 $3,040,093 $2,804,968 2014 -21 (@ 5% interest) $ 20,158,620 18 7.75% $1,961,766 $2,804,968 $1,961,766 Total Projected 2014 -15 UAAL $ 120,000,000 $329,777 $3,040,093 $12,361,777 $1,961,766 $8,136,604 2025 -26 $329,777 Financing Table $ 99,841,380 $8,136,604 2026 -27 $329,777 $3,040,093 $2,804,968 $ 36,483,000 $ 3,296,000 $ 31,239,235 $ 28,823,145 $ 20,158,620 $ 120,000,000 Fiscal Year 2009 -10 UAAL 2010-11 UAAL Increase 2011 -12 UAAL Increase 2012 -13 UAAL Increase 2013 -14 UAAL Increase $2,804,968 2010 -11 $7,806,827 $4,225,172 $3,040,093 $2,804,968 $4,225,172 2011 -12 2030 -31 $4,225,172 $329,777 $2,804,968 $1,961,766 $4,554,950 2012 -13 $4,225,172 $329,777 $3,040,093 $1,961,766 $1,961,766 $7,595,043 2013 -14 $5,606,216 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 2014 -15 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,777 2015 -16 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,777 2016 -17 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,777 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,777 2018 -19 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,777 2019 -20 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,777 2020 -21 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,777 2021 -22 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,777 2022 -23 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,777 2023 -24 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 2024 -25 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 2025 -26 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 2026 -27 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 2027 -28 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 2028 -29 $3,040,093 $2,804,968 $1,961,766 $7,806,827 2029 -30 $3,040,093 $2,804,968 $1,961,766 $7,806,827 2030 -31 $2,804,968 $1,961,766 $4,766,734 2031 -32 $1,961,766 $1,961,766 Total $54,927,238 $5,606,216 $54,721,674 $50,489,417 $35,311,794 $201,056,340 Central Contra Costa Sanitary District Cash Scenario Sewer Service Charge Impact Analysis BASE LINE - CCCERA ANNUAL PAYMENTS <S120 Million> Fiscal UAAL UAAL SSC Ending UAAL Normal I Normal SSC SSC Year I Payment -Payment Contribution Balance Portion I Cost Portion Ch ($7,595,042) 2012 -13 ($4.225,172) S32.257,828 S34.757,810 S25.76 S6,500.214 539.40 5371.00 2013 -14 ($4,554,949) 533,498,861 $36,095.022 $27.61 $7.260.159 S43.74 S4.34 $377.18 2014 -15 ($7,595,042) S59,739,215 $64.369,005 $45.75 S7,420,783 S44.44 $0.70 $396.03 2015 -16 ($10,400.010) $82.792.140 $89,208,530 $62.28 S7,578.256 S45.11 $0.67 $413.23 2016 -17 ($12,361,776) S97,005,374 $104,523,291 $73.58 S7,586,928 S44.89 -$0.22 S424.32 2017 -18 ($12,361,776) $92.161,515 $99.304,032 S73.15 S7,538.870 S44.35 -$0.55 $423.33 2018 -19 ($12.361,776) $86,942,256 $93,680,281 $72.72 S7.509,585 S43.92 -$0.43 $422.47 2019 -20 ($12,361,776) $81,318,505 $87.620,689 $72.29 S7,538,149 S43.83 -$0.09 $421.96 2020 -21 ($12,361,776) S75.258.913 $81.091,479 $71.87 57,566,856 S43.74 -$0.09 $421.45 2021 -22 ($12,361,776) S68.729,703 $74.056,255 S71.46 57,595,707 $43.65 -$0.09 $420.95 2022 -23 ($12,361,776) $61.694,479 566.475,801 $71.04 S7,624,701 S43.57 -S0.08 $420.46 2023 -24 ($12,361,776) S54,114,025 $58,307,862 S70.64 $7,653,675 543.49 -$0.08 $419.97 2024 -25 ($12,361,778) 545,946.084 $49.506,906 $70.24 $7,682,759 S43.41 -$0.08 $419.48 2025 -26 ($8,136,604) S41,370,302 $44,576.500 $45.97 $7,711,953 S43.33 -$0.08 $395.14 2026 -27 ($8,136,604) S36,439.896 $39,263,988 $45.71 $7.741,259 S43.25 -$0.08 $394.80 2027 -28 ($8.136.604) $31.127,384 S31539,756 $45.46 $7,770,676 $43.17 -$0.08 $394.47 2028 -29 ($8,136.604) $25,403.152 $27,371,897 $45.20 $7,800,204 S43.10 -$0.08 $394.14 2029 -30 ($8,136,611) $19,235,286 S20,726,020 $44.95 $77829,845 $43.02 -$0.07 $393.82 2030 -31 ($7,806.827) $12,919,193 S13,920,431 $42.89 $7.859,598 542.95 -$0.07 $391.68 2031 -32 ($7,806,827) S6,113,604 56.587,408 $42.66 $7,889.465 542.88 -$0.07 $391.38 2032 -33 ($4,766,727) $1,820,681 $1,961,784 S25.91 $7,919,445 542.81 -$0.07 $374.56 2033 -34 ($1,961,784) $0 SO $10.60 $7,949,539 $42.74 -$0.07 $359.19 ($201.056.351) Central Contra Costa Sanitary District Cash Scenario Sewer Service Charge Impact Analysis + $10 SEWER SERVICE CHARGE Fiscal UAAL UAAL SSC Ending UAAL Normal Normal I SSC SSC Year I Payment - Payment I Contribution Balance Portion I Cost Portion Chg $387.18 2012 -13 (S4,225,172) $32,257,828 S34.757,810 525.76 S6,500,214 =, 5371.00 2013 -14 ($4.554.949) $33.498.861 - $1,650,000 $34,317.147 $37.61 S7,260.159 $43.74 $4.34 $387.18 2014 -15 ($7,595.042) $57,961,340 - $1,660,000 $60,664,694 $55.75 S7,420.783 $44.44 $0.70 $406.03 2015 -16 ($10,400,010) $79,087,829 - $1,670,000 $83,417.711 $72.28 S7.578,256 S45.11 S0.67 $423.23 2016 -17 ($12,361.776) S91,214,555 - $1,680,000 $96.473,483 $83.58 S7,586,928 S44.89 -50.22 S434.32 2017 -18 ($12,361,776) S84,111,707 - $1,690,000 $88,809,389 $83.15 S7,538,870 S44.35 -$0.55 S433.33 2018 -19 ($12,361,776) $76,447,613 - $1,700,000 $80,540.553 $82.72 S7,509,585 S43.92 -$0.43 S432.47 2019 -20 ($12,361.776) $68,178,777 - $1,710,000 $71,620,108 $82.29 S7,538,149 S43.83 -$0.09 S431.96 2020 -21 ($12.361376) S59,258,332 - $1,720,000 $61,997,552 $81.87 S7,566,856 S43.74 -$0.09 $431.45 2021 -22 ($12,361,776) S49,635,776 - $1.730,000 $51,618,474 $81.46 S7,595.707 S43.65 -S0.09 $430.95 2022 -23 ($12,361,776) $39,256,698 - $1,740,000 $40.424,242 $81.04 $7,624.701 S43.57 -S0.08 $430.46 2023 -24 ($12,361.776) S28,062,466 - $1,750,000 528.351.682 $80.64 $7,653,675 S43.49 -$0.08 $429.97 2024 -25 ($12,361,778) $15,989,904 - $1,760,000 S15.332,722 $80.24 S7,682,759 S43.41 -S0.08 $429.48 2025 -26 ($8.136.604) $7.196,118 - $1,770.000 $5,846,642 $55.97 57,711.953 S43.33 -$0.08 $405.14 2026 -27 ($5.846,642) $0 50 $32.85 S7,741.259 S43.25 -$0.08 $381.94 2027 -28 $0 $0 50.00 S7,770,676 543.17 -$0.08 $349.01 2028 -29 $0 $0 S7,800,204 S43.10 -S0.08 $348.94 2029 -30 $0 $0 $7,829,845 S43.02 -$0.07 $348.86 2030 -31 $0 $0 S77859,598 S42.95 -$0.07 $348.79 2031 -32 $0 $0 S7.889,465 $42.88 -$0.07 $348.72 2032 -33 $0 $0 $7,919,445 S42.81 -$0.07 $348.65 2033 -34 $0 $0 $71949,539 $42.74 -$0.07 $348.58 ($152.014,405) - $17,250.000 (S49,041,946) Central Contra Costa Sanitary District Cash Scenario Sewer Service Charge Impact Analysis + S20 ANNUAL INCREASE SEWER SERVICE CHARGE Fiscal UAAL UAAL SSC Ending UAAL Normal I Normal SSC SSC Year I Payment - Payment I Contribution Balance Portion I Cost Portion Chg - S3.360,000 2012 -13 S 6. t , -) $32.257.828 S39AC 2013 -14 ($4,554,949) S33,498,861 - $3,3001000 2014 -15 ($7.595,042) S56,183,465 - $3,320,000 2015 -16 ($10,400,010) $75,383,519 - S3,340.000 2016 -17 ($12,361,776) S85,423,736 - S3.360,000 2017 -18 ($12,361,776) $76.061.899 - S3,380,000 2018 -19 ($12,361,776) S65,952,970 -$3,400,000 2019 -20 ($12,361,776) $55,039,050 - S3,420.000 2020 -21 ($12,361,776) 543,257,750 - S37440,000 2021 -22 ($12,361,776) S30,541,850 - S3,460,000 2022 -23 ($12.361,776) 516,818,917 - S3.480.000 2023 -24 ($12,361,776) $2,010,907 - S2,010,907 2024 -25 $91.87 SO S43.74 2025 -26 S441.45 SO $91.46 2026 -27 S43.65 SO $440.95 2027 -28 $91.04 SO S43.57 2028 -29 $440.46 SO $82.13 2029 -30 $43.49 SO $431.46 2030 -31 $0 $43.41 2031 -32 $431.38 SO 2032 -33 543.33 SO $431.30 2033 -34 SO $43.25 ($125.669,381) - $25,950,907 (S75,386,970) $34,757,810 l: S6.500,214 S39AC 5 .' . $32.539.272 $47.61 S7,260,159 $43.74 $4.34 $397.18 $56.960,384 $65.75 $7,420.783 $44.44 $0.70 $416.03 $77,626,892 $82.28 S7,578,256 $45.11 $0.67 $433.23 $88.423.675 $93.58 S77586,928 S44.89 -$0.22 $444.32 $78,314,746 $93.15 $7,538,870 S44.35 -$0.55 $443.33 $67,400,826 $92.72 $7,509.585 S43.92 -$0.43 $442.47 555.619,526 $92.29 $7,538,149 $43.83 -$0.09 $441.96 $42.903,626 $91.87 $7,566,856 S43.74 -$0.09 S441.45 $29,180,693 $91.46 $7,595,707 S43.65 -$0.09 $440.95 $14.372.683 $91.04 $7,624,701 S43.57 -$0.08 $440.46 $0 $82.13 $7.653,675 $43.49 -$0.08 $431.46 $0 $7,682,759 $43.41 -$0.08 $431.38 $0 $7,711,953 543.33 -$0.08 $431.30 $0 $7,741,259 $43.25 -$0.08 $431.22 $0 $7,770,676 S43.17 -$0.08 $431.14 $0 $7,800,204 $43.10 -$0.08 $431.07 $0 $7.829.845 $43.02 -$0.07 $430.99 $0 S7.859,598 542.95 -S0.07 $430.92 SO $7.889,465 $42.88 -$0.07 $430.85 SO $7,919,445 $42.81 -S0.07 5430.78 SO 57,949,539 $42.74 -$0.07 $430.71 Central Contra Costa Sanitary District Cash Scenario Sewer Service Charge Impact Analysis + S30 ANNUAL INCREASE SEWER SERVICE CHARGE Fiscal UAAL UAAL SSC Ending UAAL Normal Normal I SSC SSC Year Payment - Payment Contribution Balance Portion Cost Portion Ch g $407.18 2012 -13 S -.,«5. ` 12; S32.257,828 534.757.810 S25.76 56,500,214 539.40 = 2371.00 2013 -14 ($4,554,949) S33.498,861 - $4.950,000 $30,761,397 $57.61 S7,260.159 S43.74 $4.34 $407.18 2014 -15 ($7,595,042) $54,405.590 - $4,980.000 $53,256.074 $75.75 S7,420,783 S44.44 $0.70 $426.03 2015 -16 ($10,400,010) S71,679,209 - S5,010,000 $71,836,072 $92.28 S7,578.256 S45.11 50.67 $443.23 2016 -17 ($12,361,776) 579,632,916 - S5,040.000 $80,373,867 $103.58 S7.586,928 S44.89 -$0.22 $454.32 2017 -18 ($12,361,776) S68,012,091 - S5,070,000 $67.820.103 $103.15 S7,538,870 S44.35 -$0.55 $453.33 2018 -19 ($12,361,776) $55,458,327 - S5,100,000 $54,261,098 $102.72 57,509,585 $43.92 -$0.43 $452.47 2019 -20 ($12,361,776) $41,899,322 - $5,130,000 $39,618,944 $102.29 S7.538,149 $43.83 -$0.09 $451.96 2020 -21 ($12.361,776) S27,257,168 - S5,160,000 $23.809,699 $101.87 $7,566,856 $43.74 -50.09 $451.45 2021 -22 ($12,361,776) S11.447.923 - S5,190,000 $6,742,912 $101.46 $7,595,707 S43.65 -$0.09 $450.95 2022 -23 ($6,742,912) SO $0 $38.75 $7,624.701 $43.57 -$0.08 $388.16 2023 -24 $0 SO $0 $7.653,675 S43.49 -$0.08 $388.08 2024 -25 SO $0 $77682,759 $43.41 -$0.08 $388.00 2025 -26 SO $0 S7.711,953 543.33 -$0.08 $387.92 2026 -27 SO $0 $7.741,259 543.25 -$0.08 $387.84 2027 -28 SO $0 57.770.676 $43.17 -$0.08 $387.76 2028 -29 $0 $0 S7,800.204 543.10 -$0.08 $387.69 2029 -30 SO $0 57.829,845 $43.02 -$0.07 $387.62 2030 -31 SO $0 57.859,598 S42.95 -$0.07 $387.54 2031 -32 SO $0 S7,889,465 S42.88 -$0.07 $387.47 2032 -33 $0 $0 $7,919,445 $42.81 -$0.07 $387.40 2033 -34 $0 $0 $7.949,539 $42.74 -$0.07 $387.33 ($107.688,741) - $30.690.000 (S93,367,610) Central Contra Costa Sanitary District Cash Scenario Sewer Service Charge Impact Analysis + S40 ANNUAL INCREASE SEWER SERVICE CHARGE Fiscal UAAL UAAL SSC Ending UAAL Normal I Normal SSC SSC Year I Payment - Payment I Contribution Balance Portion I Cost Portion Chg $417.18 2012 -13 iS4.225,172) S32.257.828 S34.757.810 525 7C? S6,500.214 539.4;. S371.00 2013 -14 ($4,554.949) $33,498,861 - S6,600.000 $28,983,522 S67.61 $7.260.159 $43.74 $4.34 $417.18 2014 -15 ($7,595,042) $52,627.715 - 56,640,000 $49,551,763 $85.75 $7.420,783 S44.44 $0.70 S436.03 2015 -16 ($10,400,010) $67,974.898 - S6,680,000 S66.045,253 $102.28 $7.578,256 $45.11 50.67 S453.23 2016 -17 ($12,361,776) $73,842.097 - $6.720,000 S72,324,059 $113.58 S7.586,928 $44.89 -$0.22 $464.32 2017 -18 ($12.361.776) $59,962,283 - S6,760,000 S57,325,460 $113.15 57,538,870 $44.35 -$0.55 S463.33 2018 -19 ($12,361,776) $44,963,684 - $6,800,000 S41,121,370 $112.72 57.509,585 S43.92 -$0.43 5462.47 2019 -20 ($12,361,776) $28,759,594 - $6,840,000 S23,618,362 $112.29 S7,538.149 $43.83 -50.09 S461.96 2020 -21 (S12,361,776) $11,256,586 - 56.880,000 $4,715,772 $111.87 57,566.856 $43.74 -S0.09 S461.45 2021 -22 ($4,715,772) SO $0 $27.26 $7,595,707 S43.65 -50.09 5376.75 2022 -23 $0 SO $0 $7,624,701 $43.57 -50.08 $376.67 2023 -24 SO $0 $7,653.675 $43.49 -50.08 $376.59 2024 -25 SO $0 $7,682.759 $43.41 -$0.08 $376.51 2025 -26 SO $0 S7,711,953 $43.33 -S0.08 $376.43 2026 -27 $0 $0 S7,741.259 $43.25 -S0.08 $376.35 2027 -28 $0 $0 S7,770,676 $43.17 -50.08 S376.27 2028 -29 $0 $0 S7,800,204 $43.10 -S0.08 S376.20 2029 -30 $0 $0 $7,829.845 $43.02 -S0.07 S376.12 2030 -31 $0 $0 $7,859,598 $42.95 -S0.07 $376.05 2031 -32 $0 $0 $7,889.465 $42.88 -S0.07 S375.98 2032 -33 $0 $0 $7,919,445 $42.81 -S0.07 S375.91 2033 -34 $0 $0 $7,949,539 $42.74 -50.07 S375.84 ($93.299.825) - S34,000,000 (S107,756,526) Central Contra Costa Sanitary District Cash Scenario Sewer Service Charge Impact Analysis + S50 ANNUAL INCREASE SEWER SERVICE CHARGE Fiscal UAAL UAAL SSC Ending UAAL Normal Normal SSC SSC Year I Payment -Payment Contribution Balance Portion I Cost Portion Ch 5427.18 2012 -13 ($4,225,172) $32,257.828 S34,757,810 325.76 S6.500,214 __ S3% .0 2013 -14 ($4,554,949) $33,498.861 - S8,250,000 $27,205,647 $77.61 $7,260,159 $43.74 $4.34 5427.18 2014 -15 ($7.595.042) $50,849,840 - 58,300,000 $45,847,453 595.75 57,420,783 $44.44 $0.70 $446.03 2015 -16 ($10,400,010) $64,270.588 - $8.350,000 560,254,434 $112.28 57,578,256 $45.11 $0.67 $463.23 2016 -17 ($12,361,776) $68,051,278 - $8,400,000 S64,274,252 $123.58 S7,586.928 $44.89 -$0.22 $474.32 2017 -18 (S12,361,776) $51,912.476 - 58,450,000 546,830,817 $123.15 $7.538.870 $44.35 -$0.55 $473.33 2018 -19 (512,361,776) $34,469,041 - S8,500,000 S27,981,642 $122.72 S7.509,585 S43.92 -$0.43 $472.47 2019 -20 (512,361,776) $15,619,866 - $8,550,000 $7,617,781 $122.29 S7,538.149 $43.83 -$0.09 $471.96 2020 -21 ($7,617,781) 50 $0 S44.29 S7.566,856 $43.74 -$0.09 $393.87 2021 -22 $0 $0 $0 S7,595.707 S43.65 -S0.09 $393.78 2022 -23 $0 $0 S7.624,701 $43.57 -S0.08 $393.70 2023 -24 $0 $0 S7,653,675 $43.49 -S0.08 $393.62 2024 -25 $0 $0 $7.682.759 $43.41 -50.08 $393.54 2025 -26 $0 $0 $7,711,953 543.33 -S0.08 $393.46 2026 -27 $0 $0 $7.741,259 $43.25 -S0.08 $393.38 2027 -28 $0 $0 $7,770.676 $43.17 -50.08 $393.30 2028 -29 $0 $0 S7,800,204 $43.10 -$0.08 $393.23 2029 -30 $0 $0 $7.829.845 $43.02 -S0.07 $393.15 2030 -31 $0 $0 $7.859,598 $42.95 -50.07 $393.08 2031 -32 $0 $0 S7,889,465 $42.88 -50.07 $393.01 2032 -33 $0 $0 S7.919,445 $42.81 -S0.07 5392.94 2033 -34 $0 $0 $7,949,539 $42.74 -S0.07 S392.87 ($83.840,058) - S33.900.000 (S117,216,293) Central Contra Costa Sanitary District Cash Scenario Sewer Service Charge Impact Analysis + S60 ANNUAL INCREASE SEWER SERVICE CHARGE Fiscal UAAL UAAL SSC Ending UAAL Normal Normal SSC SSC Year Payment - Payment Contribution Balance Portion Cost Portion Ch S437.18 2012 -13 4,225,17L) SJ2.251,828 S34.757.81 0 -,25.;b Jb,SUU,L14 z,, - - J3li.uu 2013 -14 ($4,554,949) S33,498,861 - S9,900,000 S25,427,772 S87.61 $7,260,159 $43.74 $4.34 S437.18 2014 -15 ($7,595,042) S49,071.965 - S9,960,000 $42,143,143 $105.75 $7,420.783 $44.44 $0.70 S456.03 2015 -16 (510,400,010) S60.566,278 - $10,020,000 $54.463,614 S122.28 $7.578,256 $45.11 $0.67 $473.23 2016 -17 ($12,361.776) S62,260.458 -$10,080,000 556.224.444 $133.58 $7,586.928 $44.89 -$0.22 $484.32 2017 -18 ($12.361,776) $43,862,668 - $10.140,000 536,336,174 S133.15 $7,538,870 $44.35 -$0.55 $483.33 2018 -19 ($12,361,776) $23,974,398 - $10,200.000 514.841.914 $132.72 $7,509,585 $43.92 -$0.43 $482.47 2019 -20 ($12.361,776) $2,480,138 - $2,008,851 S507,812 S84.04 $7,538,149 $43.83 -$0.09 S433.71 2020 -21 ($507,812) $0 $0 $7,566.856 $43.74 -S0.09 S433.62 2021 -22 $0 SO $0 S7,595,707 S43.65 -$0.09 S433.53 2022 -23 SO $0 $7,624.701 S43.57 -S0.08 S433.45 2023 -24 SO $0 57,653.675 S43.49 -S0.08 S433.37 2024 -25 $0 $0 $7,682,759 $43.41 -S0.08 S433.29 2025 -26 SO $0 S7,711.953 S43.33 -50.08 $433.21 2026 -27 $0 $0 S7,741,259 S43.25 -50.08 $433.13 2027 -28 $0 $0 S7,770,676 S43.17 -50.08 $433.05 2028 -29 $0 $0 S7,800.204 S43.10 -S0.08 $432.98 2029 -30 $0 $0 $7,829,845 S43.02 -S0.07 $432.90 2030 -31 $0 $0 S7,859,598 S42.95 -S0.07 $432.83 2031 -32 $0 $0 S7.889,465 S42.88 -$0.07 S432.76 2032 -33 $0 $0 $7,919,445 S42.81 -S0.07 $432.69 2033 -34 $0 $0 $7,949,539 $42.74 -S0.07 S432.62 (576.730,089) - $32,428,851 ($124,326,262) Central Contra Costa Sanitary District Cash Scenario Sewer Service Charge Impact Analysis BASE LINE - CCCERA ANNUAL PAYMENTS <$120 Million> scal Year pplied to 2009 - 2010 UAAL 2010- 2011 UAAL Increase 2011- 2012 UAAL Increase 2012- 2013 UAAL Increase 2013 -2014 I UAAL Increase Total Payment Payment UAAL Balance UAAL Increase UAAL Adi Balance UAAL Payment UAAL Less Payment SSC Contribution UAAL Less SSC Less SSC Interest Ending Balance 2012 -13 $4,225,172 $4,225,172 $30,379,000 $6,104,000 $36,483,000 ($4,225,172) $32,257,828 $32,257,828 $2,499,982 S34,757,810 2013 -14 $4,225,172 $329,777 $4,554,949 $34,757,810 $3,296,000 $38,053,810 ($4,554,949) $33,498,861 $33,498,861 $2,596,162 $36,095,022 2014 -15 $4,225,172 $329,777 $3,040,093 $7,595,042 $36,095,022 $31,239,235 $67,334,257 ($7,595,042) $59,739,215 $59,739,215 $4,629,789 $64,369,005 2015 -16 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 $64,369,005 $28,823,145 $93,192,150 ($10,400,010) $82,792,140 $82,792,140 $6,416,391 $89,208,530 2016 -17 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $89,208,530 $20,158,620 $109,367,150 ($12,361,776) $97,005,374 $97,005,374 $7,517,917 $104,523,291 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $104,523,291 $0 $104,523,291 ($12,361,776) $92,161,515 $92,161,515 $7,142,517 $99,304,032 2018 -19 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $99,304,032 $0 $99,304,032 ($12,361,776) $86,942,256 $86,942,256 $6,738,025 $93,680,281 2019 -20 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $93,680,281 $0 $93,680,281 ($12,361,776) $81,318,505 $81,318,505 $6,302,184 $87,620,689 2020 -21 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $87,620,689 $0 $87,620,689 ($12,361,776) $75,258,913 $75,258,913 $5,832,566 $81,091,479 2021 -22 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $81,091,479 $0 $81,091,479 ($12,361,776) $68,729,703 $68,729,703 $5,326,552 $74,056,255 2022 -23 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $74,056,255 $0 $74,056,255 ($12,361,776) $61,694,479 $61,694,479 $4,781,322 $66,475,801 2023 -24 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $66,475,801 $0 $66,475,801 ($12,361,776) $54,114,025 $54,114,025 $4,193,837 $58,307,862 2024 -25 $4,225,174 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,778 $58,307,862 $0 $58,307,862 ($12,361,778) $45,946,084 $45,946,084 $3,560,822 $49,506,906 2025 -26 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $49,506,906 $0 $49,506,906 ($8,136,604) $41,370,302 $41,370,302 $3,206,198 $44,576,500 2026 -27 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $44,576,500 $0 $44,576,500 ($8,136,604) $36,439,896 $36,439,896 $2,824,092 $39,263,988 2027 -28 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $39,263,988 $0 $39,263,988 ($8,136,604) $31,127,384 $31,127,384 $2,412,372 $33,539,756 2028 -29 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $33,539,756 $0 $33,539,756 ($8,136,604) $25,403,152 $25,403,152 $1,968,744 $27,371,897 2029 730 $329,784 $3,040,093 $2,804,968 $1,961,766 $8,136,611 $27,371,897 $0 $27,371,897 ($8,136,611) $19,235,286 $19,235,286 $1,490,735 $20,726,020 2030 -31 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $20,726,020 $0 $20,726,020 ($7,806,827) $12,919,193 $12,919,193 $1,001,237 $13,920,431 2031 -32 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $13,920,431 $0 $13,920,431 ($7,806,827) $6,113,604 $6,113,604 $473,804 $6,587,408 2032 -33 $2,804,961 $1,961,766 $4,766,727 $6,587,408 $0 $6,587,408 ($4,766,727) $1,820,681 $1,820,681 $141,103 $1,961,784 2033 -34 $1,961,772 $1,961,772 $1,961,784 $0 $1,961,784 ($1,961,784) $0 $0 $0 $0 $54,927,238 $5,606,216 $54,721,674 $50,489,417 $35,311,794 $201,056,339 $89,621,000 ($201,056,351) $81,056,351 Central Contra Costa Sanitary District Cash Scenario Sewer Service Charge Impact Analysis + $10 SEWER SERVICE CHARGE ssccal Year .pplied to 2009 -2010 UAAL 2010 -2011 UAAL Increase 2011 -2012 UAAL Increase 2012 -2013 UAAL Increase I 2013 -2014 UAAL Increase Total Payment Payment UAAL Balance UAAL Increase I ,UAAL Ad- Balance I UAAL Pa nt I UAAL Less Payment I SSC Contribution I UAAL Less SSC Less SSC I Interest I Ending Balance 2012 -13 $4,225,172 $4,225,172 $30,379,000 $6,104,000 $36,483,000 ($4,225,172) $32,257,828 $32,257,828 $2,499,982 S34,757,810 2013 -14 $4,225,172 $329,777 $4,554,949 $34,757,810 $3,296,000 $38,053,810 ($4,554,949) $33,498,861 - $1,650,000 $31,848,861 $2,468,287 $34,317,147 2014 -15 $4,225,172 $329,777 $3,040,093 $7,595,042 $34,317,147 $31,239,235 $65,556,382 ($7,595,042) $57,961,340 - $1,660,000 $56,301,340 $4,363,354 $60,664,694 2015 -16 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 $60,664,694 $28,823,145 $89,487,839 ($10,400,010) $79,087,829 - $1,670,000 $77,417,829 $5,999,882 $83,417,711 2016 -17 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $83,417,711 $20,158,620 $103,576,331 ($12,361,776) $91,214,555 - $1,680,000 $89,534,555 $6,938,928 $96,473,483 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $96,473,483 $0 $96,473,483 ($12,361,776) $84,111,707 - $1,690,000 $82,421,707 $6,387,682 $88,809,389 2018 -19 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $88,809,389 $0 $88,809,389 ($12,361,776) $76,447,613 - $1,700,000 $74,747,613 $5,792,940 $80,540,553 2019 -20 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $80,540,553 $0 $80,540,553 ($12,361,776) $68,178,777 - $1,710,000 $66,468,777 $5,151,330 $71,620,108 2020 -21 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $71,620,108 $0 $71,620,108 ($12,361,776) $59,258,332 - $1,720,000 $57,538,332 $4,459,221 $61,997,552 2021 -22 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $61,997,552 $0 $61,997,552 ($12,361,776) $49,635,776 - $1,730,000 $47,905,776 $3,712,698 $51,618,474 2022 -23 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $51,618,474 $0 $51,618,474 ($12,361,776) $39,256,698 - $1,740,000 $37,516,698 $2,907,544 $40,424,242 2023 -24 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $40,424,242 $0 $40,424,242 ($12,361,776) $28,062,466 - $1,750,000 $26,312,466 $2,039,216 $28,351,682 2024 -25 $4,225,174 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,778 $28,351,682 $0 $28,351,682 ($12,361,778) $15,989,904 - $1,760,000 $14,229,904 $1,102,818 $15,332,722 2025 -26 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $15,332,722 $0 $15,332,722 ($8,136,604) $7,196,118 - $1,770,000 $5,426,118 $420,524 $5,846,642 2026 -27 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $5,846,642 $0 $5,846,642 ($5,846,642) $0 $0 $0 $0 2027 -28 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2028 -29 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2029 -30 $329,784 $3,040,093 $2,804,968 $1,961,766 $8,136,611 $0 $0 $0 $0 $0 $0 $0 2030 -31 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $1 $0 $0 $0 $0 $0 $0 2031 -32 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 $0 $0 $0 $0 $0 $0 2032 -33 $2,804,961 $1,961,766 $4,766,727 $0 $0 $0 $0 $0 $0 $0 2033 -34 $1,961,772 $1,961,772 $0 $0 $0 $0 $0 $0 $0 $54,927,238 $5,606,216 $54,721,674 $50,489,417 $35,311,794 $201,056,339 $89,621,000 ($152,014,405) - $17,250,000 $54,244,405 Central Contra Costa Sanitary District Cash Scenario Sewer Service Charge Impact Analysis + $20 ANNUAL INCREASE SEWER SERVICE CHARGE Year ��UAL ( UAL 2c0eaI AAL Increase U I MAIL Increase crI I UAAL Increase To Payment I Balance ( Increa se I UAAL Adj Balance I UAAL Pymet I Less Payment I Contribution I Less SSC I riding I Balance 2012 -13 $4,225,172 $4,225,172 $30,379,000 $6,104,000 $36,483,000 ($4,225,172) $32,257,828 $32,257,828 $2,499,982 $34,757,810 2013 -14 $4,225,172 $329,777 $4,554,949 $34,757,810 $3,296,000 $38,053,810 ($4,554,949) $33,498,861 - $3,300,000 $30,198,861 $2,340,412 $32,539,272 2014 -15 $4,225,172 $329,777 $3,040,093 $7,595,042 $32,539,272 $31,239,235 $63,778,507 ($7,595,042) $56,183,465 - $3,320,000 $52,863,465 $4,096,919 $56,960,384 2015 -16 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 $56,960,384 $28,823,145 $85,783,529 ($10,400,010) $75,383,519 - $3,340,000 $72,043,519 $5,583,373 $77,626,892 2016 -17 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $77,626,892 $20,158,620 $97,785,512 ($12,361,776) $85,423,736 - $3,360,000 $82,063,736 $6,359,940 $88,423,675 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $88,423,675 $0 $88,423,675 ($12,361,776) $76,061,899 - $3,380,000 $72,681,899 $5,632,847 $78,314,746 2018 -19 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $78,314,746 $0 $78,314,746 ($12,361,776) $65,952,970 - $3,400,000 $62,552,970 $4,847,855 $67,400,826 2019 -20 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $67,400,826 $0 $67,400,826 ($12,361,776) $55,039,050 - $3,420,000 $51,619,050 $4,000,476 $55,619,526 2020 -21 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $55,619,526 $0 $55,619,526 ($12,361,776) $43,257,750 - $3,440,000 $39,817,750 $3,085,876 $42,903,626 2021 -22 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $42,903,626 $0 $42,903,626 ($12,361,776) $30,541,850 - $3,460,000 $27,081,850 $2,098,843 $29,180,693 2022 -23 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $29,180,693 $0 $29,180,693 ($12,361,776) $16,818,917 - $3,480,000 $13,338,917 $1,033,766 $14,372,683 2023 -24 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $14,372,683 $0 $14,372,683 ($12,361,776) $2,010,907 - $2,010,907 $0 $0 $0 2024 -25 $4,225,174 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,778 $0 $0 $0 $0 $0 $0 $0 2025 -26 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2026 -27 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2027 -28 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2028 -29 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2029 -30 $329,784 $3,040,093 $2,804,968 $1,961,766 $8,136,611 $0 $0 $0 $0 $0 $0 $0 2030 -31 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 $0 $0 $0 $0 $0 $0 2031 -32 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 $0 $0 $0 $0 $0 $0 2032 -33 $2,804,961 $1,961,766 $4,766,727 $0 $0 $0 $0 $0 $0 $0 2033 -34 $1.961.772 $1.961.772 $0 $0 $0 $0 $0 $0 $0 Central Contra Costa Sanitary District Cash Scenario Sewer Service Charge Impact Analysis + $30 ANNUAL INCREASE SEWER SERVICE CHARGE Fiscal Year Applied to 2009- 2010 UAAL 2010- 2011 UAAL Increase 2011- 2012 UAAL Increase 2012 -2013 UAAL Increase 2013 -2014 UAAL Increase Total Pa t Payment UAAL Balance UAAL Increase UAAL Adj Balance UAAL Payment UAAL Less Payment SSC Contribution UAAL Less SSC Less SSC Interest Ending g Balance 2012 -13 $4,225,172 $4,225,172 $30,379,000 $6,104,000 $36,483,000 ($4,225,172) $32,257,828 $32,257,828 $2,499,982 $34,757,810 2013 -14 $4,225,172 $329,777 $4,554,949 $34,757,810 $3,296,000 $38,053,810 ($4,554,949) $33,498,861 - $4,950,000 $28,548,861 $2,212,537 $30,761,397 2014 -15 $4,225,172 $329,777 $3,040,093 $7,595,042 $30,761,397 $31,239,235 $62,000,632 ($7,595,042) $54,405,590 - $4,980,000 $49,425,590 $3,830,483 $53,256,074 2015 -16 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 $53,256,074 $28,823,145 $82,079,219 ($10,400,010) $71,679,209 - $5,010,000 $66,669,209 $5,166,864 $71,836,072 2016 -17 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $71,836,072 $20,158,620 $91,994,692 ($12,361,776) $79,632,916 - $5,040,000 $74,592,916 $5,780,951 $80,373,867 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $80,373,867 $0 $80,373,867 ($12,361,776) $68,012,091 - $5,070,000 $62,942,091 $4,878,012 $67,820,103 2018 -19 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $67,820,103 $0 $67,820,103 ($12,361,776) $55,458,327 - $5,100,000 $50,358,327 $3,902,770 $54,261,098 2019 -20 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $54,261,098 $0 $54,261,098 ($12,361,776) $41,899,322 - $5,130,000 $36,769,322 $2,849,622 $39,618,944 2020 -21 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $39,618,944 $0 $39,618,944 ($12,361,776) $27,257,168 - $5,160,000 $22,097,168 $1,712,531 $23,809,699 2021 -22 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $23,809,699 $0 $23,809,699 ($12,361,776) $11,447,923 - $5,190,000 $6,257,923 $484,989 $6,742,912 2022 -23 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $6,742,912 $0 $6,742,912 ($6,742,912) $0 $0 $0 $0 2023 -24 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 $0 $0 $0 $0 $0 $0 $0 2024 -25 $4,225,174 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,778 $0 $0 $0 $0 $0 $0 $0 2025 -26 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2026 -27 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2027 -28 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2028 -29 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2029 -30 $329,784 $3,040,093 $2,804,968 $1,961,766 $8,136,611 $0 $0 $0 $0 $0 $0 $0 2030 -31 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 $0 $0 $0 $0 $0 $0 2031 -32 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 $0 $0 $0 $0 $0 $0 2032 -33 $2,804,961 $1,961,766 $4,766,727 $0 $0 $0 $0 $0 $0 $0 2033 -34 $1,961,772 $1,961,772 $0 $0 $0 $0 $0 $0 $0 $54,927,238 $5,606,216 $54,721,674 $50,489,417 $35,311,794 $201,056,339 $89,621,000 ($107,688,741) - $30,690,000 $33,318,741 Central Contra Costa Sanitary District Cash Scenario Sewer Service Charge Impact Analysis + $40 ANNUAL INCREASE SEWER SERVICE CHARGE iscal Year 2009- 2010 2010- 2011 2011- 2012 2012-2013 2013 -2014 Total Payment UAAL UAAL UAAL UAAL UAAL SSC UAAL Less SSC Interest Endin 9 applied to UAAL UAAL Increase UAAL Increase UAAL Increase UAAL Increase Payment Balance Increase Adj Balance Payment Less Payment Contribution Less SSC Balance 2012 -13 $4,225,172 $4,225,172 $30,379,000 $6,104,000 $36,483,000 ($4,225,172) $32,257,828 $32,257,828 $2,499,982 $34,757,810 2013 -14 $4,225,172 $329,777 $4,554,949 $34,757,810 $3,296,000 $38,053,810 ($4,554,949) $33,498,861 - $6,600,000 $26,898,861 $2,084,662 $28,983,522 2014 -15 $4,225,172 $329,777 $3,040,093 $7,595,042 $28,983,522 $31,239,235 $60,222,757 ($7,595,042) $52,627,715 - $6,640,000 $45,987,715 $3,564,048 $49,551,763 2015 -16 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 $49,551,763 $28,823,145 $78,374,908 ($10,400,010) $67,974,898 - $6,680,000 $61,294,898 $4,750,355 $66,045,253 2016 -17 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $66,045,253 $20,158,620 $86,203,873 ($12,361,776) $73,842,097 - $6,720,000 $67,122,097 $5,201,963 $72,324,059 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $72,324,059 $0 $72,324,059 ($12,361,776) $59,962,283 - $6,760,000 $53,202,283 $4,123,177 $57,325,460 2018 -19 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $57,325,460 $0 $57,325,460 ($12,361,776) $44,963,684 - $6,800,000 $38,163,684 $2,957,686 $41,121,370 2019 -20 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $41,121,370 $0 $41,121,370 ($12,361,776) $28,759,594 - $6,840,000 $21,919,594 $1,698,769 $23,618,362 2020 -21 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $23,618,362 $0 $23,618,362 ($12,361,776) $11,256,586 - $6,880,000 $4,376,586 $339,185 $4,715,772 2021 -22 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $4,715,772 $0 $4,715,772 ($4,715,772) $0 $0 $0 $0 2022 -23 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 $0 $0 $0 $0 $0 $0 $0 2023 -24 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 $0 $0 $0 $0 $0 $0 2024 -25 $4,225,174 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,778 $0 $0 $0 $0 $0 $0 $0 2025 -26 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2026 -27 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2027 -28 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2028 -29 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2029 -30 $329,784 $3,040,093 $2,804,968 $1,961,766 $8,136,611 $0 $0 $0 $0 $0 $0 $0 2030 -31 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 $0 $0 $0 $0 $0 $0 2031 -32 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 $0 $0 $0 $0 $0 $0 2032 -33 $2,804,961 $1,961,766 $4,766,727 $0 $0 $0 $0 $0 $0 $0 2033 -34 $1,961,772 $1,961,772 $0 $0 $0 $0 $0 $0 $0 $54,927,238 $5,606,216 $54,721,674 $50,489,417 $35,311,794 $201,056,339 $89,621,000 ($93,299,825) - $34,000,000 $27,219,825 Savings Compared to Baseline ($107,756;526) Central Contra Costa Sanitary District Cash Scenario Sewer Service Charge Impact Analysis + $50 ANNUAL INCREASE SEWER SERVICE CHARGE f Fmcal 2009 -2010 To Payment UAAL UB- UAAIL Less Interest Applied I I UAAL/ocrease I UAAL Increase I UAAL Increase I UAAL ncrcrease I Payment I Balance I ncrease I Adj Balance I Payment I Less Payment I Contribution I Less SSCSCI I Balance 2012 -13 $4,225,172 $4,225,172 $30,379,000 $6,104,000 $36,483,000 ($4,225,172) $32,257,828 $32,257,828 $2,499,982 $34,757,810 2013 -14 $4,225,172 $329,777 $4,554,949 $34,757,810 $3,296,000 $38,053,810 ($4,554,949) $33,498,861 - $8,250,000 $25,248,861 $1,956,787 $27,205,647 2014 -15 $4,225,172 $329,777 $3,040,093 $7,595,042 $27,205,647 $31,239,235 $58,444,882 ($7,595,042) $50,849,840 - $8,300,000 $42,549,840 $3,297,613 $45,847,453 2015 -16 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 $45,847,453 $28,823,145 $74,670,598 ($10,400,010) $64,270,588 - $8,350,000 $55,920,588 $4,333,846 $60,254,434 2016 -17 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $60,254,434 $20,158,620 $80,413,054 ($12,361,776) $68,051,278 - $8,400,000 $59,651,278 $4,622,974 $64,274,252 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $64,274,252 $0 $64,274,252 ($12,361,776) $51,912,476 - $8,450,000 $43,462,476 $3,368,342 $46,830,817 2018 -19 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $46,830,817 $0 $46,830,817 ($12,361,776) $34,469,041 - $8,500,000 $25,969,041 $2,012,601 $27,981,642 2019 -20 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $27,981,642 $0 $27,981,642 ($12,361,776) $15,619,866 - $8,550,000 $7,069,866 $547,915 $7,617,781 2020 -21 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $7,617,781 $0 $7,617,781 ($7,617,781) $0 $0 $0 $0 2021 -22 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 $0 $0 $0 $0 $0 $0 $0 2022 -23 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 $0 $0 $0 $0 $0 $0 2023 -24 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 $0 $0 $0 $0 $0 $0 2024 -25 $4,225,174 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,778 $0 $0 $0 $0 $0 $0 $0 2025 -26 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2026 -27 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2027 -28 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2028 -29 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2029 -30 $329,784 $3,040,093 $2,804,968 $1,961,766 $8,136,611 $0 $0 $0 $0 $0 $0 $0 2030 -31 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 $0 $0 $0 $0 $0 $0 2031 -32 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 $0 $0 $0 $0 $0 $0 2032 -33 $2,804,961 $1,961,766 $4,766,727 $0 $0 $0 $0 $0 $0 $0 2033 -34 $1.961,772 $1,961.772 $0 $0 $0 $0 $0 $0 $0 Savings Compared to Baseline Central Contra Costa Sanitary District Cash Scenario Sewer Service Charge Impact Analysis + $60 ANNUAL INCREASE SEWER SERVICE CHARGE 2012 -13 $4,225,172 $4,225,172 $30,379,000 $6,104,000 $36,483,000 ($4,225,172) $32,257,828 $32,257,828 $2,499,982 $34,757,810 2013 -14 $4,225,172 $329,777 $4,554,949 $34,757,810 $3,296,000 $38,053,810 ($4,554,949) $33,498,861 - $9,900,000 $23,598,861 $1,828,912 $25,427,772 2014 -15 $4,225,172 $329,777 $3,040,093 $7,595,042 $25,427,772 $31,239,235 $56,667,007 ($7,595,042) $49,071,965 - $9,960,000 $39,111,965 $3,031,177 $42,143,143 2015 -16 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 $42,143,143 $28,823,145 $70,966,288 ($10,400,010) $60,566,278 - $10,020,000 $50,546,278 $3,917,337 $54,463,614 2016 -17 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $54,463,614 $20,158,620 $74,622,234 ($12,361,776) $62,260,458 - $10,080,000 $52,180,458 $4,043,986 $56,224,444 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $56,224,444 $0 $56,224,444 ($12,361,776) $43,862,668 - $10,140,000 $33,722,668 $2,613,507 $36,336,174 2018 -19 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $36,336,174 $0 $36,336,174 ($12,361,776) $23,974,398 - $10,200,000 $13,774,398 $1,067,516 $14,841,914 2019 -20 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $14,841,914 $0 $14,841,914 ($12,361,776) $2,480,138 - $2,008,851 $471,287 $36,525 $507,812 2020 -21 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $507,812 $0 $507,812 ($507,812) $0 $0 $0 $0 2021 -22 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 $0 $0 $0 $0 $0 $0 $0 2022 -23 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 $0 $0 $0 $0 $0 $0 2023 -24 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 $0 $0 $0 $0 $0 $0 2024 -25 $4,225,174 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,778 $0 $0 $0 $0 $0 $0 $0 2025 -26 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2026 -27 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2027 -28 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2028 -29 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 $0 $0 $0 $0 $0 $0 2029 -30 $329,784 $3,040,093 $2,804,968 $1,961,766 $8,136,611 $0 $0 $0 $0 $0 $0 $0 2030 -31 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 $0 $0 $0 $0 $0 $0 2031 -32 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 $0 $0 $0 $0 $0 $0 2032 -33 $2,804,961 $1,961,766 $4,766,727 $0 $0 $0 $0 $0 $0 $0 2033 -34 $1,961,772 $1,961,772 $0 $0 $0 $0 $0 $0 $0 $54,927,238 $5,606,216 $54,721,674 $50,489,417 $35,311,794 $201,056,339 $89,621,000 ($76,730,089) - $32,428,851 $19,038,940 Savings Compared to Baseline ($124,326,262) BASELINE - CCCERA ANNUAL PAYMENTS <$100 Million> Calendar Year Applied to 12009 -10 UAAL 2010 -11 UAAL Increase 2011 -12 UAAL Increase 2012 -13 UAAL Increase 2013 -14 UAAL Increase Total Payment UAAL Balance UAAL Increase Adj UAAL Balance UAAL Payment UAAL Less Payment SSC Contribution UAAL Less SSC Interest Ending Balance 2010 2012 -13 $4,225,172 $4,225,172 $30,379,000 6,104,000 36,483,000 (4,225,172) $32,257,828 $32,257,828 2,499,982 34,757,810 2011 2013 -14 $4,225,172 $329,777 $4,554,949 $34,757,810 3,296,000 38,053,810 (4,554,949) $33,498,861 $33,498,861 2,596,162 36,095,022 2012 2014 -15 $4,225,172 $329,777 $3,040,093 $7,595,042 $36,095,022 31,239,235 67,334,257 (7,595,042) $59,739,215 $59,739,215 4,629,789 64,369,005 2013 2015 -16 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 $64,369,005 28,823,145 93,192,150 (10,400,010) $82,792,140 $82,792,140 6,416,391 89,208,530 2014 2016 -17 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 $89,208,530 0 89,208,530 (10,400,010) $78,808,520 $78,808,520 6,107,660 84,916,181 2015 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 $84,916,181 0 84,916,181 (10,400,010) $74,516,171 $74,516,171 5,775,003 80,291,174 2016 2018 -19 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 $80,291,174 0 80,291,174 (10,400,010) $69,891,164 $69,891,164 5,416,565 75,307,729 2017 2019 -20 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 $75,307,729 0 75,307,729 (10,400,010) $64,907,719 $64,907,719 5,030,348 69,938,067 2018 2020 -21 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 $69,938,067 0 69,938,067 (10,400,010) $59,538,057 $59,538,057 4,614,199 64,152,257 2019 2021 -22 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 $64,152,257 0 64,152,257 (10,400,010) $53,752,247 $53,752,247 4,165,799 57,918,046 2020 2022 -23 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 $57,918,046 0 57,918,046 (10,400,010) $47,518,036 $47,518,036 3,682,648 51,200,684 2021 2023 -24 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,4.00,010 $51,200,684 0 51,200,684 (10,400,010) $40,800,674 $40,800,674 3,162,052 43,962,726 2022 2024 -25 $4,225,174 $329,777 $3,040,093 $2,804,968 $10,400,012 $43,962,726 0 43,962,726 (10,400,012) $33,562,714 $33,562,714 2,601,110 36,163,824 2023 2025 -26 $329,777 $3,040,093 $2,804,968 $6,174,838 $36,163,824 0 36,163,824 (6,174,838) $29,988,986 $29,988,986 2,324,146 32,313,133 2024 2026 -27 $329,777 $3,040,093 $2,804,968 $6,174,838 $32,313,133 0 32,313,133 (6,174,838) $26,138,295 $26,138,295 2,025,718 28,164,013 2025 2027 -28 $329,777 $3,040,093 $2,804,968 $6,174,838 $28,164,013 0 28,164,013 (6,174,838) $21,989,175 $21,989,175 1,704,161 23,693,336 2026 2028 -29 $329,777 $3,040,093 $2,804,968 $6,174,838 $23,693,336 0 23,693,336 (6,174,838) $17,518,498 $17,518,498 1,357,684 18,876,181 2027 2029 -30 $329,784 $3,040,093 $2,804,968 $6,174,845 $18,876,181 0 18,876,181 (6,174,845) $12,701,336 $12,701,336 984,354 13,685,690 2028 2030 -31 $3,040,093 $2,804,968 $5,845,061 $13,685,690 0 13,685,690 (5,845,061) $7,840,629 $7,840,629 607,649 8,448,277 2029 2031 -32 $3,040,093 $2,804,968 $5,845,061 $8,448,277 0 8,448,277 (5,845,061) $2,603,216 $2,603,216 201,749 2,804,966 2030 2032 -33 $2,804,966 $2,804,966 $2,804,966 0 2,804,966 (2,804,966) (0) (0) (0) (0) 2031 2033 -34 $0 ($0) 0 (0) (0) 0 0 0 0 Total $54,927,238 $5,606,216 $54,721,674 $50,489,422 $0 $165,744,550 $69,462,380 ($165,744,550) $65,903,170 2/22/2012 BASE LINE - CCCERA ANNUAL PAYMENTS <$120 Million> Calendar Year Applied to 2009 -10 UAAL 2010 -11 UAAL Increase 2011 -12 UAAL Increase 2012 -13 UAAL Increase 2013 -14 UAAL Increase Total Payment UAAL Balance UAAL Increase Adj UAAL Balance UAAL Payment UAAL Less Payment SSC Contribution - UAAL Less SSC Interest Ending Balance 2010 2012 -13 $4,225,172 $4,225,172 $30,379,000 6,104,000 36,483,000 (4,225,172) $32,257,828 $32,257,828 2,499,982 34,757,810 2011 2013 -14 $4,225,172 $329,777 $4,554,949 $34,757,810 3,296,000 38,053,810 (4,554,949) $33,498,861 $33,498,861 2,596,162 36,095,022 2012 2014 -15 $4,225,172 $329,777 $3,040,093 $7,595,042 $36,095,022 31,239,235 67,334,257 (7,595,042) $59,739,215 $59,739,215 4,629,789 64,369,005 2013 2015 -16 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 $64,369,005 28,823,145 93,192,150 (10,400,010) $82,792,140 $82,792,140 6,416,391 89,208,530 2014 2016 -17 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $89,208,530 20,158,620 109,367,150 (12,361,776) $97,005,374 $97,005,374 7,517,917 104,523,291 2015 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $104,523,291 0 104,523,291 (12,361,776) $92,161,515 $92,161,515 7,142,517 99,304,032 2016 2018 -19 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $99,304,032 0 99,304,032 (12,361,776) $86,942,256 $86,942,256 6,738,025 93,680,281 2017 2019 -20 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $93,680,281 0 93,680,281 (12,361,776) $81,318,505 $81,318,505 6,302,184 87,620,689 2018 2020 -21 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $87,620,689 0 87,620,689 (12,361,776) $75,258,913 $75,258,913 5,832,566 81,091,479 2019 2021 -22 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $81,091,479 0 81,091,479 (12,361,776) $68,729,703 $68,729,703 5,326,552 74,056,255 2020 2022 -23 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $74,056,255 0 74,056,255 (12,361,776) $61,694,479 $61,694,479 4,781,322 66,475,801 2021 2023 -24 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $66,475,801 0 66,475,801 (12,361,776) $54,114,025 $54,114,025 4,193,837 58,307,862 2022 2024 -25 $4,225,174 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,778 $58,307,862 0 58,307,862 (12,361,778) $45,946,084 $45,946,084 3,560,822 49,506,906 2023 2025 -26 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $49,506,906 0 49,506,906 (8,136,604) $41,370,302 $41,370,302 3,206,198 44,576,500 2024 2026 -27 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $44,576,500 0 44,576,500 (8,136,604) $36,439,896 $36,439,896 2,824,092 39,263,988 2025 2027 -28 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $39,263,988 0 39,263,988 (8,136,604) $31,127,384 $31,127,384 2,412,372 33,539,756 2026 2028 -29 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $33,539,756 0 33,539,756 (8,136,604) $25,403,152 $25,403,152 1,968,744 27,371,897 2027 2029 -30 $329,784 $3,040,093 $2,804,968 $1,961,766 $8,136,611 $27,371,897 0 27,371,897 (8,136,611) $19,235,286 $19,235,286 1,490,735 20,726,020 2028 2030 -31 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $20,726,020 0 20,726,020 (7,806,827) $12,919,193 $12,919,193 1,001,237 13,920,431 2029 2031 -32 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $13,920,431 0 13,920,431 (7,806,827) $6,113,604 $6,113,604 473,804 6,587,408 2030 2032 -33 $2,804,961 $1,961,766 $4,766,727 $6,587,408 0 6,587,408 (4,766,727) $1,820,681 $1,820,681 141,103 1,961,784 2031 2033 -34 $1,961,772 $1,961,772 $1,961,784 0 1,961,784 (1,961,784) ($0) ($0) ($0) ($0) Total $54,927,238 $5,606,216 $54,721,674 $50,489,417 $35,311,794 $201,056,339 $89,621,000 ($201,056.351) $81,056,351 2/22/2012 $75 Million Revenue Bonds @ 15 Years plus $45 Million Cash Payments Actuarial Fiscal Year Calendar Year Applied to 12009 -10 UAAL 2010 -11 UAAL Increase 2011 -12 UAAL Increase 2012 -13 UAAL Increase 2013 -14 UAAL Increase Total Payment UAAL Balance UAAL Increase 2010 2012 -13 $4,225,172 (4,554,949) 67,334,257 (75,000,000) ($7,665,743) $4,225,172 $30,379,000 6,104,000 2011 2013 -14 $4,225,172 $329,777 787,656 10,950,953 (7,400,964) $4,554,949 $34,757,810 3,296,000 2012 2014 -15 $4,225,172 $329,777 $3,040,093 20,200,751 (12,361,776) $7,595,042 $36,095,022 31,239,235 2013 2015 -16 $4,225,172 $329,777 $3,040,093 $2,804,968 (0) $10,400,010 ($8,259,838) 28,823,145 2014 2016 -17 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $10,950,953 20,158,620 2015 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $20,200,751 0 2016 2018 -19 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $8,446,496 0 2017 2019 -20 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 ($0) 0 2018 2020 -21 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 2019 2021 -22 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 2020 2022 -23 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 2021 2023 -24 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 2022 2024 -25 $4,225,174 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,778 $0 0 2023 2025 -26 $0 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 2024 2026 -27 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 2025 2027 -28 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 2026 2028 -29 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 2027 2029 -30 $329,784 $3,040,093 $2,804,968 $1,961,766 $8,136,611 $0 0 2028 2030 -31 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 0 2029 2031 -32 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 0 2030 2032 -33 $2,804,961 $1,961,766 $4,766,727 $0 0 2031 2033 -34 $1,961,772 $1,961,772 $0 0 Total $54.927.238 $5.606.216 $54.721.674 $50.489.417 $35.311.794 $201.056.339 PR9 R21 000 36,483,000 (4,225,172) $32,257,828 2,499,982 34,757,810 (4,225,172) 38,053,810 (4,554,949) $33,498,861 2,596,162 36,095,022 (4,554,949) 67,334,257 (75,000,000) ($7,665,743) (594,095) (8,259,838) (75,000,000) 20,563,307 (10,400,010) $10,163,297 787,656 10,950,953 (7,400,964) (17,800,974) 31,109,573 (12,361,776) $18,747,797 1,452,954 20,200,751 (7,400,964) (19,762,740) 20,200,751 (12,361,776) $7,838,975 607,521 8,446,496 (7,400,964) (19,762,740) 8,446,496 (8,446,496) ($0) (0) (0) (7,400,964) (15,847,460) 0 0 $0 $0 $0 (7,400,964) (7,400,964) 0 0 $0 $0 $0 (7,400,964) (7,400,964) 0 0 $0 $0 $0 (7,400,964) (7,400,964) 0 0 $0 $0 $0 (7,400,964) (7,400,964) 0 0 $0 $0 $0 (7,400,964) (7,400,964) 0 0 $0 $0 $0 (7,400,964) (7,400,964) 0 0 $0 $0 $0 (7,400,964) (7,400,964) 0 0 $0 $0 $0 (7,400,964) (7,400,964) 0 0 $0 $0 $0 (7,400,964) (7,400,964) 0 0 $0 $0 $0 (7,400,964) (7,400,964) 0 0 $0 $0 $0 (4,317,233) (4,317,233) 0 0 $0 $0 $0 0 0 0 $0 $0 $0 0 0 0 $0 $0 $0 0 0 0 $0 $0 $0 0 Total Debt Service (107,930,729) Less Initial Principal 75,000,000 Total UAAL & Debt ($160,280,908) Savings Compared to Baseline ($40,775,443) 2/22/2012 $75 Million Revenue Bonds @ 20 Years plus $45 Million Cash Payments Actuarial Fiscal Year Calendar Year Applied to 12009 -10 UAAL 2010 -11 UAAL Increase 2011 -12 UAAL Increase 2012 -13 UAAL Increase 2013 -14 UAAL Increase Total Payment UAAL Balance UAAL Increase Adj UAAL Balance UAAL Payment UAAL Less Payment Interest Ending Balance Cost of Debt Total Annual Expense 2010 2012 -13 $4,225,172 $4,225,172 $30,379,000 6,104,000 36,483,000 (4,225,172) $32,257,828 2,499,982 34,757,810 (4,225,172) 2011 2013 -14 $4,225,172 $329,777 $4,554,949 $34,757,810 3,296,000 38,053,810 (4,554,949) $33,498,861 2,596,162 36,095,022 (4,554,949) 2012 2014 -15 $4,225,172 $329,777 $3,040,093 $7,595,042 $36,095,022 31,239,235 67,334,257 (75,000,000) ($7,665,743) (594,095) (8,259,838) (75,000,000) 2013 2015 -16 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 ($8,259,838) 28,823,145 20,563,307 (10,400,010) $10,163,297 787,656 10,950,953 (6,401,167) (16,801,177) 2014 2016 -17 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $10,950,953 20,158,620 31,109,573 (12,361,776) $18,747,797 1,452,954 20,200,751 (6,401,167) (18,762,943) 2015 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $20,200,751 0 20,200,751 (12,361,776) $7,838,975 607,521 8,446,496 (6,401,167) (18,762,943) 2016 2018 -19 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $8,446,496 0 8,446,496 (8,446,496) $0 0 0 (6,401,167) (14,847,663) 2017 2019 -20 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (6,401,167) (6,401,167) 2018 2020 -21 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (6,401,167) (6,401,167) 2019 2021 -22 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (6,401,167) (6,401,167) 2020 2022 -23 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (6,401,167) (6,401,167) 2021 2023 -24 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (6,401,167) (6,401,167) 2022 2024 -25 $4,225,174 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,778 $0 0 0 0 $0 0 0 (6,401,167) (6,401,167) 2023 2025 -26 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (6,401,167) (6,401,167) 2024 2026 -27 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (6,401,167) (6,401,167) 2025 2027 -28 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (6,401,167) (6,401,167) 2026 2028 -29 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (6,401,167) (6,401,167) 2027 2029 -30 $329,784 $3,040,093 $2,804,968 $1,961,766 $8,136,611 $0 0 0 0 $0 0 0 (6,401,167) (6,401,167) 2028 2030 -31 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 0 0 0 $0 0 0 (6,401,167) (6,401,167) 2029 2031 -32 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 0 0 0 $0 0 0 (6,401,167) (6,401,167) 2030 2032 -33 $2,804,961 $1,961,766 $4,766,727 $0 0 0 0 $0 0 0 (6,401,167) (6,401,167) 2031 2033 -34 $1,961,772 $1,961,772 $0 0 0 0 $0 0 0 (10,135,182) (10,135,182) Total $54,927,238 $5,606,216 $54,721,674 $50,489,417 $35,311,794 $201,056,339 $89,621,000 ($127,350,179) $7,350,179 (125,356,188) (252,706,367) Total Debt Service (125,356,188) Less Initial Principal 75,000,000 Total UAAL 8 Debt ($177,706,367) Savings Compared to Baseline ($23.349,984) 2/22/2012 $75 Million Revenue Bonds @ 30 Years plus $45 Million Cash Payments Actuarial Fiscal Year Calendar Year Applied to 12009 -10 UAAL 2010 -11 UAAL Increase 2011 -12 UAAL Increase 2012 -13 UAAL Increase 2013 -14 UAAL Increase Total Payment UAAL Balance UAAL Increase Adj UAAL Balance UAAL Payment UAAL Less Payment Interest Ending Balance Cost of Debt Total Annual Expense 2010 2012 -13 $4,225,172 $4,225,172 $30,379,000 6,104,000 36,483,000 (4,225,172) $32,257,828 2,499,982 34,757,810 (4,225,172) 2011 2013 -14 $4,225,172 $329,777 $4,554,949 $34,757,810 3,296,000 38,053,810 (4,554,949) $33,498,861 2,596,162 36,095,022 (4,554,949) 2012 2014 -15 $4,225,172 $329,777 $3,040,093 $7,595,042 $36,095,022 31,239,235 67,334,257 (75,000,000) ($7,665,743) (594,095) (8,259,838) (75,000,000) 2013 2015 -16 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 ($8,259,838) 28,823,145 20,563,307 (10,400,010) $10,163,297 787,656 10,950,953 (5,710,271) (16,110,281) 2014 2016 -17 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $10,950,953 20,158,620 31,109,573 (12,361,776) $18,747,797 1,452,954 20,200,751 (5,710,271) (18,072,047) 2015 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $20,200,751 0 20,200,751 (12,361,776) $7,838,975 607,521 8,446,496 (5,710,271) (18,072,047) 2016 2018 -19 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $8,446,496 0 8,446,496 (8,446,496) (0) (0) (0) (5,710,271) (14,156,767) 2017 2019 -20 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 ($0) 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2018 2020 -21 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2019 2021 -22 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2020 2022 -23 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2021 2023 -24 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2022 2024 -25 $4,225,174 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,778 $0 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2023 2025 -26 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2024 2026 -27 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2025 2027 -28 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 .$0 0 0 (5,710,271) (5,710,271) 2026 2028 -29 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2027 2029 -30 $329,784 $3,040,093 $2,804,968 $1,961,766 $8,136,611 $0 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2028 2030 -31 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2029 2031 -32 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2030 2032 -33 $2,804,961 $1,961,766 $4,766,727 $0 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2031 2033 -34 $1,961,766 $1,961,766 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2032 2034 -35 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2033 2035 -36 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2034 2036 -37 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2035 2037 -38 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2036 2038 -39 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2037 2039 -40 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2038 2040 -41 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2039 2041 -42 0 0 0 $0 0 0 (5,710,271) (5,710,271) 2040 2042 -43 0 0 0 $0 0 0 (14,751,525) (14,751,525) Total $54,927,238 $5,606,216 $54,721,674 $50,489,417 $35,311,788 $201,056,333 $89,621,000 ($127,350,179) $7,350,179 (168,928,842) (296,279,021) Total Debt Service (168,928,842) Less Initial Principal 75,000,000 Total UAAL & Debt ($221,279,021) Savings Compared to Baseline $20,222,670 2/22/2012 $85 Million Revenue Bonds @ 15 Years plus $35 Million Cash Payments Actuarial Fiscal Year Calendar Year Applied to 12009 -10 UAAL 2010 -11 UAAL Increase 2011 -12 UAAL Increase 2012 -13 UAAL Increase 2013 -14 UAAL Increase Total Payment UAAL Balance UAAL Increase Adl UAAL Balance UAAL Payment UAAL Less Payment Interest Ending Balance Cost of Debt Total Annual Expense 2010 2012 -13 $4,225,172 $4,225,172 $30,379,000 6,104,000 36,483,000 (4,225,172) $32,257,828 2,499,982 34,757,810 (4,225,172) 2011 2013.14 $4,225,172 $329,777 $4,554,949 $34,757,810 3,296,000 38,053,810 (4,554,949) $33,498,861 2,596,162 36,095,022 (4,554,949) 2012 2014 -15 $4,225,172 $329,777 $3,040,093 $7,595,042 $36,095,022 31,239,235 67,334,257 (85,000,000) ($17,665,743) (1,369,095) (19,034,838) (85,000,000) 2013 2015 -16 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 ($19,034,838) 28,823,145 9,788,307 (10,400,010) ($611,703) (47,407) (659,110) (8,324,011) (18,724,021) 2014 2016 -17 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 ($659,110) 20,158,620 19,499,510 (12,361,776) $7,137,734 553,174 7,690,909 (8,324,011) (20,685,787) 2015 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $7,690,909 0 7,690,909 (7,690,909) ($0) 0 0 (8,324,011) (16,014,920) 2016 2018 -19 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (8,324,011) (8,324,011) 2017 2019 -20 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (8,324,011) (8,324,011) 2018 2020 -21 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (8,324,011) (8,324,011) 2019 2021 -22 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (8,324,011) (8,324,011) 2020 2022 -23 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (8,324,011) (8,324,011) 2021 2023 -24 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (8,324,011) (8,324,011) 2022 2024 -25 $4,225,174 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,778 $0 0 0 0 $0 0 0 (8,324,011) (8,324,011) 2023 2025 -26 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (8,324,011) (8,324,011) 2024 2026 -27 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (8,324,011) (8,324,011) 2025 2027 -28 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (8,324,011) (8,324,011) 2026 2028 -29 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (8,324,011) (8,324,011) 2027 2029 -30 $329,784 $3,040,093 $2,804,968 $1,961,766 $8,136,611 $0 0 0 0 $0 0 0 (4,855,667) (4,855,667) 2028 2030 -31 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 0 0 0 $0 0 0 0 2029 2031 -32 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 0 0 0 $0 0 0 0 2030 2032 -33 $2,804,961 $1,961,766 $4,766,727 $0 0 0 0 $0 0 0 0 2031 2033 -34 on $1,961,772 $1,961,772 $0 0 0 0 $0 0 0 0 Total $54,927,238 $5,606,216 $54,721,674 $50,489,417 $35,311,794 $201,056,339 $89,621,000 ($124,232,816) $4,232,816 (121,391,821) (245,624,637) Total Debt Service (121,391,821) Less Initial Principal 85,000,000 Total UAAL & Debt ($160,624.637) Savings Compared to Baseline (S40.431.714) 2/22/2012 $85 Million Revenue Bonds @ 20 Years plus $35 Million Cash Payments Actuarial Fiscal Year Calendar Year Applied to 12009 -10 UAAL 2010 -11 UAAL Increase 2011 -12 UAAL Increase 2012 -13 UAAL Increase 2013 -14 UAAL Increase Total Payment UAAL Balance UAAL Increase Adj UAAL Balance UAAL Payment UAAL Less Payment Interest Ending Balance Cost of Debt Total Annual Expense 2010 2012 -13 $4,225,172 $4,225,172 $30,379,000 6,104,000 36,483,000 (4,225,172) $32,257,828 2,499,982 34,757,810 (4,225,172) 2011 2013 -14 $4,225,172 $329,777 $4,554,949 $34,757,810 3,296,000 38,053,810 (4,554,949) $33,498,861 2,596,162 36,095,022 (4,554,949) 2012 2014 -15 $4,225,172 $329,777 $3,040,093 $7,595,042 $36,095,022 31,239,235 67,334,257 (85,000,000) ($17,665,743) (1,369,095) (19,034,838) (85,000,000) 2013 2015 -16 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 ($19,034,838) 28,823,145 9,788,307 (10,400,010) ($611,703) (47,407) (659,110) (7,201,136) (17,601,146) 2014 2016 -17 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 ($659,110) 20,158,620 19,499,510 (12,361,776) $7,137,734 553,174 7,690,909 (7,201,136) (19,562,912) 2015 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $7,690,909 0 7,690,909 (7,690,909) ($0) 0 0 (7,201,136) (14,892,045) 2016 2018 -19 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 0 0 0 0 $0 0 0 (7,201,136) (7,201,136) 2017 2019 -20 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 0 0 0 0 $0 0 0 (7,201,136) (7,201,136) 2018 2020 -21 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 0 0 0 0 $0 0 0 (7,201,136) (7,201,136) 2019 2021 -22 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (7,201,136) (7,201,136) 2020 2022 -23 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (7,201,136) (7,201,136) 2021 2023 -24 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (7,201,136) (7,201,136) 2022 2024 -25 $4,225,174 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,778 $0 0 0 0 $0 0 0 (7,201,136) (7,201,136) 2023 2025 -26 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (7,201,136) (7,201,136) 2024 2026 -27 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (7,201,136) (7,201,136) 2025 2027 -28 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (7,201,136) (7,201,136) 2026 2028 -29 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (7,201,136) (7,201,136) 2027 2029 -30 $329,784 $3,040,093 $2,804,968 $1,961,766 $8,136,611 $0 0 0 0 $0 0 0 (7,201,136) (7,201,136) 2028 2030 -31 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 0 0 0 $0 0 0 (7,201,136) (7,201,136) 2029 2031 -32 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 0 0 0 $0 0 0 (7,201,136) (7,201,136) 2030 2032 -33 $2,804,961 $1,961,766 $4,766,727 $0 0 0 0 $0 0 0 (7,201,136) (7,201,136) 2031 2033 -34 on $1,961,772 $1,961,772 $0 0 0 0 $0 0 0 (11,401,802) (11,401,802) Total $54,927,238 $5,606,216 $54,721,674 $50,489,417 $35,311,794 $201,056,339 $89,621,000 ($124,232,816) $4,232,816 (141,022,250) (265,255,066) Total Debt Service (141,022,250) Less Initial Principal 85,000,000 Total UAAL & Debt ($180,255,066) Savings Compared to Baseline ($20,801,285) 2/22/2012 $85 Million Revenue Bonds @ 30 Years plus $35 Million Cash Payments Actuarial Fiscal Year Calendar Year Applied to 2009 -10 UAAL 2010 -11 UAAL Increase 2011 -12 UAAL Increasi Balance Cost of Debt Total Annual 2010 2012 -13 $4,225,172 $4,225,172 $30,379,000 6,104,000 36,483,000 (4,225,172) $32,257,828 2,499,982 34,757,810 (4,225,172) 2011 2013 -14 $4,225,172 $329,777 $4,554,949 $34,757,810 3,296,000 38,053,810 (4,554,949) $33,498,861 2,596,162 36,095,022 (4,554,949) 2012 2014 -15 $4,225,172 $329,777 $3,040,093 $7,595,042 $36,095,022 31,239,235 67,334,257 (85,000,000) ($17,665,743) (1,369,095) (19,034,838) (85,000,000) 2013 2015 -16 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 ($19,034,838) 28,823,145 9,788,307 (10,400,010) ($611,703) (47,407) (659,110) (6,385,085) (16,785,095) 2014 2016 -17 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 ($659,110) 20,158,620 19,499,510 (12,361,776) $7,137,734 553,174 7,690,909 (6,385,085) (18,746,861) 2015 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $7,690,909 0 7,690,909 (7,690,909) ($0) (0) (0) (6,385,085) (14,075,994) 2016 2018 -19 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 0 0 0 0 ($0) (0) 0 (6,385,085) (6,385,085) 2017 2019 -20 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 0 0 0 0 ($0) (0) 0 (6,385,085) (6,385,085) 2018 2020 -21 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 0 0 0 $0 0 0 (6,385,085) (6,385,085) 2019 2021 -22 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 $0 0 0 (6,385,085) (6,385,085) 2020 2022 -23 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 $0 0 0 (6,385,085) (6,385,085) 2021 2023 -24 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 $0 0 0 (6,385,085) (6,385,085) 2022 2024 -25 $4,225,174 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,778 $0 0 0 $0 0 0 (6,385,085) (6,385,085) 2023 2025 -26 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 $0 0 0 (6,385,085) (6,385,085) 2024 2026 -27 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 $0 0 0 (6,385,085) (6,385,085) 2025 2027 -28 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 $0 0 0 (6,385,085) (6,385,085) 2026 2028 -29 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 $0 0 0 (6,385,085) (6,385,085) 2027 2029 -30 $329,784 $3,040,093 $2,804,968 $1,961,766 $8,136,611 $0 0 0 $0 0 0 (6,385,085) (6,385,085) 2028 2030 -31 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 0 0 $0 0 0 (6,385,085) (6,385,085) 2029 2031 -32 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 0 0 $0 0 0 (6,385,085) (6,385,085) 2030 2032 -33 $2,804,961 $1,961,766 $4,766,727 $0 0 0 $0 0 0 (6,385,085) (6,385,085) 2031 2033 -34 $0 0 0 $0 0 0 (6,385,085) (6,385,085) 2032 2034 -35 0 $0 0 0 (6,385,085) (6,385,085) 2033 2035 -36 0 $0 0 0 (6,385,085) (6,385,085) 2034 2036 -37 0 $0 0 0 (6,385,085) (6,385,085) 2035 2037 -38 0 $0 0 0 (6,385,085) (6,385,085) 2036 2038 -39 0 $0 0 0 (6,385,085) (6,385,085) 2037 2039 -40 0 $0 0 0 (6,385,085) (6,385,085) 2038 2040 -41 0 $0 0 0 (6,385,085) (6,385,085) 2039 2041 -42 0 $0 0 0 (6,385,085) (6,385,085) 2040 2042 -43 0 $0 0 0 (16,494,805) (16,494,805) Total $54,927,238 $5,606,216 $54,721,674 $50,489,417 $33,350,022 $199,094,567 $89,621,000 ($124,232,816) $4,232,816 (188,892,100) (313,124,916) Total Debt Service (188,892,100) Less Initial Principal 85,000,000 Total UAAL 8 Debt ($228,124,916) Savings Compared to Baseline $27,068,565 2/22/2012 $90 Million Revenue Bonds @ 15 Years plus $30 Million Cash Payments Actuarial Fiscal Year Calendar Year Applied to 12009 -10 UAAL 2010 -11 UAAL Increase 2011 -12 UAAL Increase 2012 -13 UAAL Increase 2013 -14 UAAL Increase Total Payment UAAL Balance UAAL Increase Adj UAAL Balance UAAL Payment UAAL Less Payment Interest Ending Balance Cost of Debt Total Annual Expense 2010 2012 -13 $4,225,172 $4,225,172 $30,379,000 6,104,000 36,483,000 (4,225,172) $32,257,828 2,499,982 34,757,810 (4,225,172) 2011 2013 -14 $4,225,172 $329,777 $4,554,949 $34,757,810 3,296,000 38,053,810 (4,554,949) $33,498,861 2,596,162 36,095,022 (4,554,949) 2012 2014 -15 $4,225,172 $329,777 $3,040,093 $7,595,042 $36,095,022 31,239,235 67,334,257 (90,000,000) ($22,665,743) (1,756,595) (24,422,338) (90,000,000) 2013 2015 -16 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 ($24,422,338) 28,823,145 4,400,807 (10,400,010) ($5,999,203) (464,938) (6,464,141) (8,804,687) (19,204,697) 2014 2016 -17 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 ($6,464,141) 20,158,620 13,694,479 (12,361,776) $1,332,703 103,284 1,435,988 (8,804,687) (21,166,463) 2015 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $1,435,988 0 1,435,988 (1,435,988) ($0) 0 0 (8,804,687) (10,240,675) 2016 2018 -19 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (8,804,687) (8,804,687) 2017 2019 -20 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (8,804,687) (8,804,687) 2018 2020 -21 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (8,804,687) (8,804,687) 2019 2021 -22 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (8,804,687) (8,804,687) 2020 2022 -23 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (8,804,687) (8,804,687) 2021 2023 -24 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (8,804,687) (8,804,687) 2022 2024 -25 $4,225,174 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,778 $0 0 0 0 $0 0 0 (8,804,687) (8,804,687) 2023 2025 -26 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (8,804,687) (8,804,687) 2024 2026 -27 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (8,804,687) (8,804,687) 2025 2027 -28 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (8,804,687) (8,804,687) 2026 2028 -29 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (8,804,687) (8,804,687) 2027 2029 -30 $329,784 $3,040,093 $2,804,968 $1,961,766 $8,136,611 $0 0 0 0 $0 0 0 (5,136,070) (5,136,070) 2028 2030 -31 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 0 0 0 $0 0 0 0 2029 2031 -32 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 0 0 0 $0 0 0 0 2030 2032 -33 $2,804,961 $1,961,766 $4,766,727 $0 0 0 0 $0 0 0 0 2031 2033 -34 on $1,961,772 $1,961,772 $0 0 0 0 $0 0 0 0 Total $54,927,238 $5,606,216 $54,721,674 $50,489,417 $35,311,794 $201,056,339 $89,621,000 ($122,977,895) $2,977,895 (128,401,688) (251,379,583) Total Debt Service (128,401,688) Less Initial Principal 85,000,000 Total UAAL & Debt ($166,379,583) Savings Compared to Baseline ($34,676,768) 2/22/2012 $90 Million Revenue Bonds @ 20 Years plus $30 Million Cash Payments Actuarial Fiscal Year Calendar Year Applied to 12009 -10 UAAL 2010 -11 UAAL Increase 2011 -12 UAAL Increase 2012 -13 UAAL Increase 2013 -14 UAAL Increase Total Payment UAAL Balance UAAL Increase Adj UAAL Balance UAAL Payment UAAL Less Payment Interest Ending Balance Cost of Debt Total Annual Expense 2010 2012 -13 $4,225,172 $4,225,172 $30,379,000 6,104,000 36,483,000 (4,225,172) $32,257,828 2,499,982 34,757,810 (4,225,172) 2011 2013 -14 $4,225,172 $329,777 $4,554,949 $34,757,810 3,296,000 38,053,810 (4,554,949) $33,498,861 2,596,162 36,095,022 (4,554,949) 2012 2014 -15 $4,225,172 $329,777 $3,040,093 $7,595,042 $36,095,022 31,239,235 67,334,257 (90,000,000) ($22,665,743) (1,756,595) (24,422,338) (90,000,000) 2013 2015 -16 $4,225,172 $329,777 $3,040,093 $2,804,968 $10,400,010 ($24,422,338) 28,823,145 4,400,807 (10,400,010) ($5,999,203) (464,938) (6,464,141) (7,600,951) (18,000,961) 2014 2016 -17 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 ($6,464,141) 20,158,620 13,694,479 (12,361,776) $1,332,703 103,284 1,435,988 (7,600,951) (19,962,727) 2015 2017 -18 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $1,435,988 0 1,435,988 (1,435,988) ($0) (0) (0) (7,600,951) (9,036,939) 2016 2018 -19 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 0 0 0 0 $0 0 0 (7,600,951) (7,600,951) 2017 2019 -20 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 0 0 0 0 $0 0 0 (7,600,951) (7,600,951) 2018 2020 -21 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 0 0 0 0 $0 0 0 (7,600,951) (7,600,951) 2019 2021 -22 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (7,600,951) (7,600,951) 2020 2022 -23 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (7,600,951) (7,600,951) 2021 2023 -24 $4,225,172 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 0 $0 0 0 (7,600,951) (7,600,951) 2022 2024 -25 $4,225,174 $329,777 $3,040,093 $2,804,968 $1,961,766 $12,361,778 $0 0 0 0 $0 0 0 (7,600,951) (7,600,951) 2023 2025 -26 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (7,600,951) (7,600,951) 2024 2026 -27 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (7,600,951) (7,600,951) 2025 2027 -28 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (7,600,951) (7,600,951) 2026 2028 -29 $329,777 $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 0 $0 0 0 (7,600,951) (7,600,951) 2027 2029 -30 $329,784 $3,040,093 $2,804,968 $1,961,766 $8,136,611 $0 0 0 0 $0 0 0 (7,600,951) (7,600,951) 2028 2030 -31 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 0 0 0 $0 0 0 (7,600,951) (7,600,951) 2029 2031 -32 $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 0 0 0 $0 0 0 (7,600,951) (7,600,951) 2030 2032 -33 $2,804,961 $1,961,766 $4,766,727 $0 0 0 0 $0 0 0 (7,600,951) (7,600,951) 2031 2033 -34 on $1,961,772 $1,961,772 $0 0 0 0 $0 0 0 (12,034,836) (12,034,836) Total $54,927,238 $5,606,216 $54,721,674 $50,489,417 $35,311,794 $201,056,339 $89,621,000 ($122,977,895) $2,977,895 (148,851,954) (271,829,849) Total Debt Service (148,851,954) Less Initial Principal 85,000,000 Total UAAL & Debt ($186,829,849) Savings Compared to Baseline ($14,226,502) 2/22/2012 $90 Million Revenue Bonds @ 30 Years plus $30 Million Cash Payments Actuarial Fiscal Year Calendar Year Applied to 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 Total 2012 -13 2013 -14 2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 2019 -20 2020 -21 2021 -22 2022 -23 2023 -24 2024 -25 2025 -26 2026 -27 2027 -28 2028 -29 2029 -30 2030 -31 2031 -32 2032 -33 2033 -34 2034 -35 2035 -36 2036 -37 2037 -38 2038 -39 2039 -40 2040 -41 2041 -42 2042 -43 IAAL 2010 -11 UAAL Incree $4,225,172 $4,225,172 $4,225,172 $4,225,172 $4,225,172 $4,225,172 $4,225,172 $4,225,172 $4,225,172 $4,225,172 $4,225,172 $4,225,172 $4,225,174 $329,777 $329,777 $329,777 $329,777 $329,777 $329,777 $329,777 $329,777 $329,777 $329,777 $329,777 $329,777 $329,777 $329,777 $329,777 $329,777 $329,784 2011 -12 UAAL Increase 2012 -13 UAAL Increase 2013 -14 UAAL Increase Total Payment UAAL Balance UAAL Increase Adj UAAL Balance UAAL Payment UAAL Less Payment Interest Ending Balance Cost of Debt Total Annual Expense $4,225,172 $30,379,000 6,104,000 36,483,000 (4,225,172) $32,257,828 2,499,982 34,757,810 (4,225,172) $4,554,949 $34,757,810 3,296,000 38,053,810 (4,554,949) $33,498,861 2,596,162 36,095,022 (4,554,949) $3,040,093 $7,595,042 $36,095,022 31,239,235 67,334,257 (90,000,000) ($22,665,743) (1,756,595) (24,422,338) (90,000,000) $3,040,093 $2,804,968 $10,400,010 ($24,422,338) 28,823,145 4,400,807 (10,400,010) ($5,999,203) (464,938) (6,464,141) (6,718,430) (17,118,440) $3,040,093 $2,804,968 $1,961,766 $12,361,776 ($6,464,141) 20,158,620 13,694,479 (12,361,776) $1,332,703 103,284 1,435,988 (6,718,430) (19,080,206) $3,040,093 $2,804,968 $1,961,766 $12,361,776 $1,435,988 0 1,435,988 (1,435,988) ($0) 0 0 (6,718,430) (8,154,418) $3,040,093 $2,804,968 $1,961,766 $12,361,776 0 0 0 $0 0 0 (6,718,430) (6,718,430) $3,040,093 $2,804,968 $1,961,766 $12,361,776 0 0 0 $0 0 0 (6,718,430) (6,718,430) $3,040,093 $2,804,968 $1,961,766 $12,361,776 0 0 0 $0 0 0 (6,718,430) (6,718,430) $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 $0 0 0 (6,718,430) (6,718,430) $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 $0 0 0 (6,718,430) (6,718,430) $3,040,093 $2,804,968 $1,961,766 $12,361,776 $0 0 0 $0 0 0 (6,718,430) (6,718,430) $3,040,093 $2,804,968 $1,961,766 $12,361,778 $0 0 0 $0 0 0 (6,718,430) (6,718,430) $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 $0 0 0 (6,718,430) (6,718,430) $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 $0 0 0 (6,718,430) (6,718,430) $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 $0 0 0 (6,718,430) (6,718,430) $3,040,093 $2,804,968 $1,961,766 $8,136,604 $0 0 0 $0 0 0 (6,718,430) (6,718,430) $3,040,093 $2,804,968 $1,961,766 $8,136,611 $0 0 0 $0 0 0 (6,718,430) (6,718,430) $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 0 0 $0 0 0 (6,718,430) (6,718,430) $3,040,093 $2,804,968 $1,961,766 $7,806,827 $0 0 0 $0 0 0 (6,718,430) (6,718,430) $2,804,961 $1,961,766 $4,766,727 $0 0 0 $0 0 0 (6,718,430) (6,718,430) $0 0 0 $0 0 0 (6,718,430) (6,718,430) 0 $0 0 0 (6,718,430) (6,718,430) 0 $0 0 0 (6,718,430) (6,718,430) 0 $0 0 0 (6,718,430) (6,718,430) 0 $0 0 0 (6,718,430) (6,718,430) 0 $0 0 0 (6,718,430) (6,718,430) 0 $0 0 0 (6,718,430) (6,718,430) 0 $0 0 0 (6,718,430) (6,718,430) 0 $0 0 0 (6,718,430) (6,718,430) 0 $0 0 0 (17.355.953) (17.355.953) 721,674 $50,489,417 199.094, 567 Total Debt Service (198,753,563) Less Initial Principal 90,000,000 Total UAAL 8 Debt ($231,731,458) Savings Compared to Baseline ($231,731,458) 2/22/2012 Central Contra Costa Sanitary District Sewer Service Charge Impact Analysis BASE LINE - CCCERA ANNUAL PAYMENTS <S100 Million> Fiscal Year UAAL Payment Ending RUE's Swr Svc Swr Svc CCCERA Swr Svc Swr Svc Swr Svc Sewer Svc Sewer Svc Applied to Payment Balance 165,000 Ch Impact Ch Adj Normal Cost Chg Impact Chg Adj Chg Total Adj Chg Total Impact Ch Total 2012 -1 d (4,22b,1 12) d4, /b /,bl U 164,000 525.76 $6,500,214 S39.6-4 S65.40 S65.40 $371.00 2013 -14 (4,554,949) 36,095,022 165,000 $27.61 $1.84 $7,260,159 $44.00 $4.37 $6.21 $71.61 $377.21 2014 -15 (7,595,042) 64,369,005 166,000 $45.75 $18.15 $7,420,783 $44.70 $0.70 $18.85 $90.46 $396.06 2015 -16 (10,400,010) 89,208,530 167,000 $62.28 $16.52 $7,578,256 $45.38 $0.68 $17.20 $107.65 $413.26 2016 -17 (10,400,010) 84,916,181 168,000 $61.90 -$0.37 $7,586,928 $45.16 -$0.22 -$0.59 $107.07 $412.67 2017 -18 (10,400,010) 80,291,174 169,000 $61.54 -$0.37 $7,538,870 $44.61 -$0.55 -$0.92 $106.15 $411.75 2018 -19 (10,400,010) 75,307,729 170,000 $61.18 -$0.36 $7,509,585 $44.17 -$0.43 -$0.80 $105.35 $410.95 2019 -20 (10,400,010) 69,938,067 171,000 $60.82 -$0.36 $7,538,149 $44.08 -$0.09 -$0.45 $104.90 $410.50 2020 -21 (10,400,010) 64,152,257 172,000 $60.47 -$0.35 $7,566,856 $43.99 -$0.09 -$0.44 $104.46 $410.06 2021 -22 (10,400,010) 57,918,046 173,000 $60.12 -$0.35 $7,595,707 $43.91 -$0.09 -$0.44 $104.02 $409.62 2022 -23 (10,400,010) 51,200,684 174,000 $59.77 -$0.35 $7,624,701 $43.82 -$0.09 -$0.43 $103.59 $409.19 2023 -24 (10,400,010) 43,962,726 175,000 $59.43 -$0.34 $7,653,675 $43.74 -$0.08 -$0.43 $103.16 $408.77 2024 -25 (10,400,012) 36,163,824 176,000 $59.09 -$0.34 $7,682,759 $43.65 -$0.08 -$0.42 $102.74 $408.34 2025 -26 (6,174,838) 32,313,133 177,000 $34.89 - $24.20 $7,711,953 $43.57 -$0.08 - $24.29 $78.46 $384.06 2026 -27 (6,174,838) 28,164,013 178,000 $34.69 -$0.20 $7,741,259 $43.49 -$0.08 -$0.28 $78.18 $383.78 2027 -28 (6,174,838) 23,693,336 179,000 $34.50 -$0.19 $7,770,676 $43.41 -$0.08 -$0.27 $77.91 $383.51 2028 -29 (6,174,838) 18,876,181 180,000 $34.30 -$0.19 $7,800,204 $43.33 -$0.08 -$0.27 $77.64 $383.24 2029 -30 (6,174,845) 13,685,690 181,000 $34.12 -$0.19 $7,829,845 $43.26 -$0.08 -$0.27 $77.37 $382.98 2030 -31 (5,845,061) 8,448,277 182,000 $32.12 -$2.00 $7,859,598 $43.18 -$0.07 -$2.07 $75.30 $380.90 2031 -32 (5,845,061) 2,804,966 183,000 $31.94 -$0.18 $7,889,465 $43.11 -$0.07 -$0.25 $75.05 $380.65 2032 -33 (2,804,966) 0 184,000 $15.24 - $16.70 $7,919,445 $43.04 -$0.07 - $16.77 $58.28 $363.89 2033 -34 185,000 $0.00 - $15.24 $7,949,539 $42.97 -$0.07 - $15.31 $42.97 $348.57 (5165,744,550) Central Contra Costa Sanitary District Sewer Service Charge Impact Analysis BASE LINE - CCCERA ANNUAL PAYMENTS <S120 Million> Fiscal Year UAAL Payment Ending RUE's Swr Svc Swr Svc CCCERA Swr Svc Swr Svc S�vr Svc Sewer Svc Sewer Svc Applied to Payment Balance 165,000 Ch Impact Ch Adj Normal Cost Ch Impact Ch Adj Chg Total Adj Chg Total Impact Chg Total 2012 -13 (4,225,172) 34,757,810 164,000 $25.76 $6,500,214 S39.64 565.40 $65.40 5371.00 2013 -14 (4,554,949) 36,095,022 165,000 $27.61 $1.84 $7,260,159 $44.00 $4.37 $6.21 $71.61 $377.21 2014 -15 (7,595,042) 64,369,005 166,000 $45.75 $18.15 $7,420,783 $44.70 $0.70 $18.85 $90.46 $396.06 2015 -16 (10,400,010) 89,208,530 167,000 $62.28 $16.52 $7,578,256 $45.38 $0.68 $17.20 $107.65 $413.26 2016 -17 (12,361,776) 104,523,291 168,000 $73.58 $11.31 $7,586,928 $45.16 -$0.22 $11.09 $118.74 $424.34 2017 -18 (12,361,776) 99,304,032 169,000 $73.15 -$0.44 $7,538,870 $44.61 -$0.55 -$0.99 $117.76 $423.36 2018 -19 (12,361,776) 93,680,281 170,000 $72.72 -$0.43 $7,509,585 $44.17 -$0.43 -$0.86 $116.89 $422.49 2019 -20 (12,361,776) 87,620,689 171,000 $72.29 -$0.43 $7,538,149 $44.08 -$0.09 -$0.52 $116.37 $421.98 2020 -21 (12,361,776) 81,091,479 172,000 $71.87 -$0.42 $7,566.856 $43.99 -$0.09 -$0.51 $115.86 $421.47 2021 -22 (12,361,776) 74,056,255 173,000 $71.46 -$0.42 $7,595,707 $43.91 -$0.09 -$0.50 $115.36 $420.96 2022 -23 (12,361,776) 66,475,801 174,000 $71.04 -$0.41 $7,624,701 $43.82 -$0.09 -$0.50 $114.86 $420.47 2023 -24 (12,361,776) 58,307,862 175,000 $70.64 -$0.41 $7,653,675 $43.74 -$0.08 -$0.49 $114.37 $419.98 2024 -25 (12,361,778) 49,506,906 176,000 $70.24 -$0.40 $7,682,759 $43.65 -$0.08 -$0.48 $113.89 $419.49 2025 -26 (8,136,604) 44,576,500 177,000 $45.97 - $24.27 $7,711,953 $43.57 -$0.08 - $24.35 $89.54 $395.14 2026 -27 (8,136,604) 39,263,988 178,000 $45.71 -$0.26 $7,741,259 $43.49 -$0.08 -$0.34 $89.20 $394.80 2027 -28 (8,136,604) 33,539,756 179,000 $45.46 -$0.26 $7,770,676 $43.41 -$0.08 -$0.33 $88.87 $394.47 2028 -29 (8,136,604) 27,371,897 180,000 $45.20 -$0.25 $7,800,204 $43.33 -$0.08 -$0.33 $88.54 $394.14 2029 -30 (8,136,611) 20,726,020 181,000 $44.95 -$0.25 $7,829,845 $43.26 -$0.08 -$0.33 $88.21 $393.81 2030 -31 (7,806,827) 13,920,431 182,000 $42.89 -$2.06 $7,859,598 $43.18 -$0.07 -$2.13 $86.08 $391.68 2031 -32 (7,806,827) 6,587,408 183,000 $42.66 -$0.23 $7,889,465 $43.11 -$0.07 -$0.31 $85.77 $391.37 2032 -33 (4,766,727) 1,961,784 184,000 $25.91 - $16.75 $7,919,445 $43.04 -$0.07 - $16.83 $68.95 $374.55 2033 -34 (1,961,784) 0 185,000 $10.60 - $15.30 $7,949,539 $42.97 -$0.07 - $15.37 $53.57 $359.18 (S201,056,351) Central Contra Costa Sanitary District Sewer Service Charge Impact Analysis S10 SEWER SERVICE CHARGE Fiscal Year UAAL Payment SSC Ending UAAL Total RUE's Swr Svc Swr Svc CCCERA Swr Svc Swr Svc Swr Svc Sewer Svc Sewer Svc Applied to Payment Contribution Balance Payment Chg Impact Chg Adi Normal Cost Chg Impact Chg Adj Chg Total Adj Chg Total Impact Chg Total 2012 -13 (4,225.172) 34,757,810 (4,225,172) 164,000 S25.76 $6,500,214 S39.64 $65.40 S371.00 2013 -14 (4,554,949) ($1,650,1100) 34,317,147 (6,204,949) 165,000 $37.61 $11.84 $7,260,159 $44.00 $4.37 $16.21 $81.61 $387.21 2014 -15 (7,595,042) ($1,660,000) 60,664,694 (9,255,042) 166,000 $55.75 $18.15 $7,420,783 $44.70 $0.70 $18.85 $100.46, $406.06 2015 -16 (10,400,010) ($1,670,000) 83,417,711 (12,070,010) 167,000 $72.28 $16.52 $7,578,256 $45.38 $0.68 $17.20 $117.65 $423.26 2016 -17 (12.361,776) ($1,680,000) 96,473,483 (14,041,776) 168,000 $83.58 $11.31 $7,586,928 $45.16 -$0.22 $11.09 $128.74 $434.34 2017 -18 (12,361,776) ($1,690,000) 88,809,389 (14,051,776) 169,000 $83.15 -$0.44 $7,538,870 $44.61 -$0.55 -$0.99 $127.76 $433.36 2018 -19 (12,361,776) ($1,700,000) 80,540,553 (14,061,776) 170,000 $82.72 -$0.43 $7,509,585 $44.17 -$0.43 -$0.86 $126.89 $432.49 2019 -20 (12,361,776) ($1,710,000) 71,620,108 (14,071,776) 171,000 $82.29 -$0.43 $7,538,149 $44.08 -$0.09 -$0.52 $126.37 $431.98 2020 -21 (12,361,776) ($1,720,000) 61,997,552 (14,081,776) 172,000 $81.87 -$0.42 $7,566,856 $43.99 -$0.09 -$0.51 $125.86 $431.47 2021 -22 (12,361,776) ($1,730,000) 51,618,474 (14,091,776) 173,000 $81.46 -$0.42 $7,595,707 $43.91 -$0.09 -$0.50 $125.36 $430.96 2022 -23 (12,361,776) ($1,740,000) 40,424,242 (14,101,776) 174,000 $81.04 -$0.41 $7,624,701 $43.82 -$0.09 -$0.50 $124.86 $430.47 2023 -24 (12,361,776) ($1,750,000) 28,351,682 (14,111,776) 175,000 $80.64 -$0.41 $7,653,675 $43.74 -$0.08 -$0.49 $124.37 $429.98 2024 -25 (12,361,778) ($1,760,000) 15,332,722 (14,121,778) 176,000 $80.24 -$0.40 $7,682,759 $43.65 -$0.08 -$0.48 $123.89 $429.49 2025 -26 (8,136,604) ($1,770,000) 5,846,642 (9,906,604) 177,000 $55.97 - $24.27 $7,711,953 $43.57 -$0.08 - $24.35 $99.54 $405.14 2026 -27 (5,846,642) ($0) (5,846,642) 178,000 $32.85 - $23.12 $7,741,259 $43.49 -$0.08 - $23.20 $76.34 $381.94 2027 -28 ($0) 0 179,000 $0.00 - $32.85 $7,770,676 $43.41 -$0.08 - $32.92 $43.41 $349.01 2028 -29 ($0) 0 180,000 $0.00 $0.00 $7,800,204 $43.33 -$0.08 -$0.08 $43.33 $348.94 2029 -30 ($1) 0 181,000 $0.00 $0.00 $7,829,845 $43.26 -$0.08 -$0.08 $43.26 $348.86 2030 -31 ($1) 0 182,000 $0.00 $0.00 $7,859,598 $43.18 -$0.07 -$0.07 $43.18 $348.79 2031 -32 ($1) 0 183,000 $0.00 $0.00 $7,889,465 $43.11 -$0.07 -$0.07 $43.11 $348.71 2032 -33 ($1) 0 184,000 $0.00 $0.00 $7,919,445 $43.04 -$0.07 -$0.07 $43.04 $348.64 2033 -34 ($1) 0 185,000 $0.00 $0.00 $7,949,539 $42.97 -$0.07 -$0.07 $42.97 $348.57 ($152.014.405) ($17,250,000) (5174,244,405) Central Contra Costa Sanitary District Sewer Service Charge Impact Analysis $20 ANNUAL INCREASE SEWER SERVICE CHARGE Fiscal Year UAAL Payment Y SSC Ending 9 UAAL Total RUE's Swr Svc Swr Svc CCCERA Swr Svc Swr Svc Swr Svc Sewer Svc Sewer Svc Applied to Payment Contribution Balance Payment Chg Impact Chg Adj Normal Cost I Chg Impact Chg Adj Chg Total Adj Chg Total Impact) Chg Total 2012 -13 (4,225,172) 34,757,810 (4,225,172) 164,000 S25.76 $6.500.214 S39.64 S65.40 S371.00 2013 -14 (4,554,949) ($3,300,000) 32,539,272 (7,854,949) 165,000 $47.61 $21.84 $7,260,159 $44.00 $4.37 $26.21 $91.61 $397.21 2014 -15 (7,595,042) ($3,320,000) 56.960,384 (10,915,042) 166,000 $65.75 $18.15 $7,420,783 $44.70 $0.70 $18.85 $110.46 $416.06 2015 -16 (10,400,010) ($3,340,000) 77,626,892 (13,740,010) 167,000 $82.28 $16.52 $7,578,256 $45.38 $0.68 $17.20 $127.65 $433.26 2016 -17 (12,361,776) ($3,360,000) 88,423,675 (15,721,776) 168,000 $93.58 $11.31 $7,586,928 $45.16 -$0.22 $11.09 $138.74 $444.34 2017 -18 (12,361,776) ($3,380,000) 78,314,746 (15,741,776) 169,000 $93.15 -$0.44 $7,538,870 $44.61 -$0.55 -$0.99 $137.76 $443.36 2018 -19 (12,361,776) ($3,400,000) 67,400,826 (15,761,776) 170,000 $92.72 -$0.43 $7,509,585 $44.17 -$0.43 -$0.86 $136.89 $442.49 2019 -20 (12,361,776) ($3,420,000) 55,619,526 (15,781,776) 171,000 $92.29 -$0.43 $7,538,149 $44.08 -$0.09 -$0.52 $136.37 $441.98 2020 -21 (12,361,776) ($3,440,000) 42,903,626 (15,801,776) 172,000 $91.87 -$0.42 $7,566,856 $43.99 -$0.09 -$0.51 $135.86 $441.47 2021 -22 (12,361,776) ($3,460,000) 29,180,693 (15,821,776) 173,000 $91.46 -$0.42 $7,595,707 $43.91 -$0.09 -$0.50 $135.36 $440.96 2022 -23 (12,361,776) ($3,480,000) 14,372,683 (15,841,776) 174,000 $91.04 -$0.41 $7,624,701 $43.82 -$0.09 -$0.50 $134.86 $440.47 2023 -24 (12,361,776) ($2,010,907) ( ) (14,372,683) 175,000 $82.13 -$8.92 $7,653,675 $43.74 -$0.08 -$9.00 $125.86 $431.47 2024 -25 0 0 0 176,000 $0.00 - $82.13 $7,682,759 $43.65 -$0.08 - $82.21 $43.65 $349.25 2025 -26 0 0 177,000 $0.00 $0.00 $7,711,953 $43.57 -$0.08 -$0.08 $43.57 $349.17 2026 -27 0 0 178,000 $0.00 $0.00 $7,741,259 $43.49 -$0.08 -$0.08 $43.49 $349.09 2027 -28 0 0 179,000 $0.00 $0.00 $7,770,676 $43.41 -$0.08 -$0.08 $43.41 $349.01 2028 -29 0 0 180,000 $0.00 $0.00 $7,800,204 $43.33 -$0.08 -$0.08 $43.33 $348.94 2029 -30 0 0 181,000 $0.00 $0.00 $7,829,845 $43.26 -$0.08 -$0.08 $43.26 $348.86 2030 -31 0 0 182,000 $0.00 $0.00 $7,859,598 $43.18 -$0.07 -$0.07 $43.18 $348.79 2031 -32 0 0 183,000 $0.00 $0.00 $7,889,465 $43.11 -$0.07 -$0.07 $43.11 $348.71 2032 -33 0 0 184,000 $0.00 $0.00 $7,919,445 $43.04 -$0.07 -$0.07 $43.04 $348.64 2033 -34 0 0 185,000 $0.00 $0.00 $7,949,539 $42.97 -$0.07 -$0.07 $42.97 $348.57 ($125,669.381) ($25,950.907) ($161,580,288) Central Contra Costa Sanitary District Sewer Service Charge Impact Analysis $75 Million Revenue Bonds @ 15 Years plus $45 Million Cash Pavments Fiscal Year UAAL UAAL BOND UAAL & DEBT RUE's Swr Svc Swr Svc CCCERA Swr Svc Swr Svc Swr Svc Sewer Svc Sewer Svc Applied to Payment Less Payment Payment PAYMENTS Ch Impact I Chq Ad' I Normal Cost I Chg Impact I Chg Ad' I Chg Total Ad" I Chg Total Impact I Chg Total 2012 -13 (4,225,172) $32,257,828 (4,225,172) 164,000 $25.76 $6,500,214 $39.64 $65.40 S371.00 2013 -14 (4,554,949) $33,498,861 (4,554,949) 165,000 $27.61 $1.84 $7,260,159 $44.00 $4.37 $6.21 $71.61 $377.21 2014 -15 (75,000,000) ($7,665,743) (75,000,000) 166,000 $27.61 $0.00 $7,420,783 $44.70 $0.70 $0.70 $72.31 $377.91 2015 -16 (10.400,010) $10,163,297 ($7,400,964) (17,800,974) 167,000 $106.59 $78.99 $7,578,256 $45.38 $0.68 $79.66 $151.97 $457.57 2016 -17 (12,361,776) $18,747,797 ($7,400,964) (19,762,740) 168,000 $117.64 $11.04 $7,586,928 $45.16 -$0.22 $10.82 $162.80 $468.40 2017 -18 (12,361,776) $7,838,975 ($7,400,964) (19,762,740) 169,000 $116.94 -$0.70 $7,538,870 $44.61 -$0.55 -$1.25 $161.55 $467.15 2018 -19 (8,446,496) ($0) ($7,400,964) (15,847,460) 170,000 $93.22 - $23.72 $7,509,585 $44.17 -$0.43 - $24.15 $137.39 $443.00 2019 -20 $0 ($7,400,964) (7,400,964) 171,000 $43.28 - $49.94 $7,538,149 $44.08 -$0.09 - $50.03 $87.36 $392.96 2020 -21 $0 ($7,400,964) (7,400,964) 172,000 $43.03 -$0.25 $7,566,856 $43.99 -$0.09 -$0.34 $87.02 $392.62 2021 -22 $0 ($7,400,964) (7,400,964) 173,000 $42.78 -$0.25 $7,595,707 $43.91 -$0.09 -$0.34 $86.69 $392.29 2022 -23 $0 ($7,400,964) (7,400,964) 174,000 $42.53 -$0.25 $7,624,701 $43.82 -$0.09 -$0.33 $86.35 $391.96 2023 -24 $0 ($7,400,964) (7,400,964) 175,000 $42.29 -$0.24 $7,653,675 $43.74 -$0.08 -$0.33 $86.03 $391.63 2024 -25 $0 ($7,400,964) (7,400,964) 176,000 $42.05 -$0.24 $7,682,759 $43.65 -$0.08 -$0.32 $85.70 $391.30 2025 -26 $0 ($7,400,964) (7,400,964) 177,000 $41.81 -$0.24 $7,711,953 $43.57 -$0.08 -$0.32 $85.38 $390.99 2026 -27 $0 ($7,400,964) (7,400,964) 178,000 $41.58 -$0.23 $7,741,259 $43.49 -$0.08 -$0.32 $85.07 $390.67 2027 -28 $0 ($7,400,964) (7,400,964) 179,000 $41.35 -$0.23 $7,770,676 $43.41 -$0.08 -$0.31 $84.76 $390.36 2028 -29 $0 ($7,400,964) (7,400,964) 180,000 $41.12 -$0.23 $7,800,204 $43.33 -$0.08 -$0.31 $84.45 $390.05 2029 -30 $0 ($4,317,233) (4,317,233) 181,000 $23.85 - $17.26 $7,829,845 $43.26 -$0.08 - $17.34 $67.11 $372.71 2030 -31 $0 0 182,000 $0.00 - $23.85 $7,859,598 $43.18 -$0.07 - $23.93 $43.18 $348.79 2031 -32 $0 0 183,000 $0.00 $0.00 $7,889,465 $43.11 -$0.07 -$0.07 $43.11 $348.71 2032 -33 $0 0 184,000 $0.00 $0.00 $7,919,445 $43.04 -$0.07 -$0.07 $43.04 $348.64 2033 -34 $0 0 185,000 $0.00 $0.00 $7,949,539 $42.97 -$0.07 -$0.07 $42.97 $348.57 ($127,350,179) (107,930,729) (235,280,908) Central Contra Costa Sanitary District Sewer Service Charge Impact Analysis $75 Million Revenue Bonds @ 20 Years plus $45 Million Cash Payments Fiscal Year UAAL UAAL BOND UAAL & DEBT RUE's Swr Svc Swr Svc CCCERA Swr Svc Swr Svc Swr Svc Sewer Svc Sewer Svc Applied to Payment Less Payment Payment PAYMENTS 165,000 Ch Impact Ch Ad' Normal Cost Ch Impact Ch Ad' Ch Total Ad' Ch Total Im ct Cho Total LUIZ -16 (4,225,172) $32,257,828 (4.225,172) 164,000 $25.76 $6,500,214 $39.64 $65.40 S371.00 2013 -14 (4,554,949) $33,498,861 (4,554,949) 165,000 $27.61 $1.84 $7,260,159 $44.00 $4.37 $6.21 $71.61 $377.21 2014 -15 (75,000,000) ($7,665,743) (75,000,000) 166,000 $27.61 $0.00 $7,420,783 $44.70 $0.70 $0.70 $72.31 $377.91 2015 -16 (10,400,010) $10,163,297 ($6,401,167) (16,801,177) 167,000 $100.61 $73.00 $7,578,256 $45.38 $0.68 $73.68 $145.98 $451.59 2016 -17 (12,361,776) $18,747,797 ($6,401,167) (18,762,943) 168,000 $111.68 $11.08 $7,586,928 $45.16 -$0.22 $10.86 $156.84 $462.45 2017 -18 (12,361,776) $7,838,975 ($6,401,167) (18,762,943) 169,000 $111.02 -$0.66 $7,538,870 $44.61 -$0.55 -$1.21 $155.63 $461.23 2018 -19 (8,446,496) ($0) ($6,401,167) (14,847,663) 170,000 $87.34 - $23.68 $7,509,585 $44.17 -$0.43 - $24.12 $131.51 $437.11 2019 -20 ($0) ($6,401,167) (6,401,167) 171,000 $37.43 - $49.91 $7,538,149 $44.08 -$0.09 - $50.00 $81.52 $387.12 2020 -21 $0 ($6,401,167) (6,401,167) 172,000 $37.22 -$0.22 $7,566,856 $43.99 -$0.09 -$0.31 $81.21 $386.81 2021 -22 $0 ($6,401,167) (6,401,167) 173,000 $37.00 -$0.22 $7,595,707 $43.91 -$0.09 -$0.30 $80.91 $386.51 2022 -23 $0 ($6,401,167) (6,401,167) 174,000 $36.79 -$0.21 $7,624,701 $43.82 -$0.09 -$0.30 $80.61 $386.21 2023 -24 $0 ($6,401,167) (6,401,167) 175,000 $36.58 -$0.21 $7,653,675 $43.74 -$0.08 -$0.30 $80.31 $385.91 2024 -25 $0 ($6,401,167) (6,401,167) 176,000 $36.37 -$0.21 $7,682,759 $43.65 -$0.08 -$0.29 $80.02 $385.62 2025 -26 $0 ($6,401,167) (6,401,167) 177,000 $36.16 -$0.21 $7,711,953 $43.57 -$0.08 -$0.29 $79.74 $385.34 2026 -27 $0 ($6,401,167) (6,401,167) 178,000 $35.96 -$0.20 $7,741,259 $43.49 -$0.08 -$0.28 $79.45 $385.05 2027 -28 $0 ($6.401,167) (6,401,167) 179,000 $35.76 -$0.20 $7,770,676 $43.41 -$0.08 -$0.28 $79.17 $384.77 2028 -29 $0 ($6,401,167) (6,401,167) 180,000 $35.56 -$0.20 $7,800,204 $43.33 -$0.08 -$0.28 $78.90 $384.50 2029 -30 $0 ($6,401,167) (6,401,167) 181,000 $35.37 -$0.20 $7,829,845 $43.26 -$0.08 -$0.27 $78.62 $384.23 2030 -31 $0 ($6,401,167) (6,401,167) 182,000 $35.17 -$0.19 $7,859,598 $43.18 -$0.07 -$0.27 $78.36 $383.96 2031 -32 $0 ($6,401,167) (6,401,167) 183,000 $34.98 -$0.19 $7,889,465 $43.11 -$0.07 -$0.26 $78.09 $383.69 2032 -33 $0 ($6,401,167) (6,401,167) 184,000 $34.79 -$0.19 $7,919,445 $43.04 -$0.07 -$0.26 $77.83 $383.43 2033 -34 $0 ($10,135,182) (10,135,182) 185,000 $54.78 $20.00 $7,949,539 $42.97 -$0.07 $19.93 $97.76 $403.36 ($127,350,179) ($125,356,188) (252,706,367) Central Contra Costa Sanitary District Sewer Service Charge Impact Analysis $75 Million Revenue Bonds @ 30 Years plus $45 Million Cash Payments Fiscal Year UAAL UAAL BOND UAAL &DEBT RUE's Swr Svc Swr Svc CCCERA Swr Svc Swr Svc Swr Svc Sewer Svc Sewer Svc Applied to Payment Less Payment Payment PAYMENTS 165,000 Ch Im act Chg Adj Normal Cost Ch Im act Chg Adj Ch Total Adj Ch Total Im act Ch Total 2012 -13 (4,225,172) $32.257,828 (4,225,172) 164,000 S25.76 $6,500,214 $39.64 S65.40 S371.00 2013 -14 (4,554,949) $33,498,861 (4,554,949) 165,000 $27.61 $1.84 $7,260,159 $44.00 $4.37 $6.21 $71.61 $377.21 2014 -15 (75,000,000) ($7,665,743) (75,000,000) 166,000 $27.61 $0.00 $7,420,783 $44.70 $0.70 $0.70 $72.31 $377.91 2015 -16 (10,400,010) $10,163,297 ($5,710,271) (16,110,281) 167,000 $96.47 $68.86 $7,578,256 $45.38 $0.68 $69.54 $141.85 $447.45 2016 -17 (12,361,776) $18,747,797 ($5,710,271) (18,072,047) 168,000 $107.57 $11.10 $7,586,928 $45.16 -$0.22 $10.88 $152.73 $458.33 2017 -18 (12,361,776) $7,838,975 ($5,710,271) (18,072,047) 169,000 $106.94 -$0.64 $7,538,870 $44.61 -$0.55 -$1.19 $151.54 $457.15 2018 -19 (8,446,496) ($0) ($5,710,271) (14,156,767) 170,000 $83.28 - $23.66 $7,509,585 $44.17 -$0.43 - $24.09 $127.45 $433.05 2019 -20 ($0) ($5,710,271) (5,710,271) 171,000 $33.39 - $49.88 $7,538,149 $44.08 -$0.09 - $49.97 $77.48 $383.08 2020 -21 $0 ($5,710,271) (5,710,271) 172,000 $33.20 -$0.19 $7,566,856 $43.99 -$0.09 -$0.28 $77.19 $382.79 2021 -22 $0 ($5,710,271) (5,710,271) 173,000 $33.01 -$0.19 $7,595,707 $43.91 -$0.09 -$0.28 $76.91 $382.51 2022 -23 $0 ($5,710,271) (5,710,271) 174,000 $32.82 -$0.19 $7,624,701 $43.82 -$0.09 -$0.28 $76.64 $382.24 2023 -24 $0 ($5,710,271) (5,710,271) 175,000 $32.63 -$0.19 $7,653,675 $43.74 -$0.08 -$0.27 $76.37 $381.97 2024 -25 $0 ($5,710,271) (5,710,271) 176,000 $32.44 -$0.19 $7,682,759 $43.65 -$0.08 -$0.27 $76.10 $381.70 2025 -26 $0 ($5,710,271) (5,710,271) 177,000 $32.26 -$0.18 $7,711,953 $43.57 -$0.08 -$0.26 $75.83 $381.43 2026 -27 $0 ($5,710,271) (5,710,271) 178,000 $32.08 -$0.18 $7,741,259 $43.49 -$0.08 -$0.26 $75.57 $381.17 2027 -28 $0 ($5,710,271) (5,710,271) 179,000 $31.90 -$0.18 $7,770,676 $43.41 -$0.08 -$0.26 $75.31 $380.91 2028 -29 $0 ($5,710,271) (5,710,271) 180,000 $31.72 -$0.18 $7,800,204 $43.33 -$0.08 -$0.25 $75.06 $380.66 2029 -30 $0 ($5,710,271) (5,710,271) 181,000 $31.55 -$0.18 $7,829,845 $43.26 -$0.08 -$0.25 $74.81 $380.41 2030 -31 $0 ($5,710,271) (5,710,271) 182,000 $31.38 -$0.17 $7,859,598 $43.18 -$0.07 -$0.25 $74.56 $380.16 2031 -32 $0 ($5,710,271) (5,710,271) 183,000 $31.20 -$0.17 $7,889,465 $43.11 -$0.07 -$0.24 $74.32 $379.92 2032 -33 $0 ($5,710,271) (5,710,271) 184,000 $31.03 -$0.17 $7,919,445 $43.04 -$0.07 -$0.24 $74.07 $379.68 2033 -34 ($5,710,271) (5,710,271) 185,000 $30.87 -$0.17 $7,949,539 $42.97 -$0.07 -$0.24 $73.84 $379.44 2034 -35 ($5,710,271) (5,710,271) 186,000 $30.70 -$0.17 $7,979,747 $42.90 -$0.07 -$0.23 $73.60 $379.20 2035 -36 ($5,710,271) (5,710,271) 187,000 $30.54 -$0.16 $8,010,070 $42.83 -$0.07 -$0.23 $73.37 $378.97 2036 -37 ($5,710,271) (5,710,271) 188,000 $30.37 -$0.16 $8,040,508 $42.77 -$0.07 -$0.23 $73.14 $378.74 2037 -38 ($5,710,271) (5,710,271) 189,000 $30.21 -$0.16 $8,071,062 $42.70 -$0.06 -$0.23 $72.92 $378.52 2038 -39 ($5,710,271) (5,710,271) 190,000 $30.05 -$0.16 $8,101,732 $42.64 -$0.06 -$0.22 $72.69 $378.30 2039 -40 ($5,710,271) (5,710,271) 191.000 $29.90 -$0.16 $8,132,519 $42.58 -$0.06 -$0.22 $72.48 $378.08 2040 -41 ($5,710,271) (5,710,271) 192,000 $29.74 -$0.16 $8,163,422 $42.52 -$0.06 -$0.22 $72.26 $377.86 2041 -42 ($5,710,271) (5,710,271) 193,000 $29.59 -$0.15 $8,194,443 $42.46 -$0.06 -$0.21 $72.05 $377.65 2042 -43 ($14,751,525) (14,751,525) 194,000 $76.04 $46.45 $8,225.582 $42.40 -$0.06 $46.39 $118.44 $424.04 ($127,350,179) ($168,928,842) (296,279,021) Central Contra Costa Sanitary District Sewer Service Charge Impact Analysis S85 Million Revenue Bonds @ 15 Years plus $35 Million Cash Payments Fiscal Year UAAL UAAL BOND UAAL & DEBT RUE`s Swr Svc I Swr Svc CCCERA Swr Svc Swr Svc Swr Svc Sewer Svc Sewer Svc A Applied to Payment m Less Pa ent Payment PAYMENTS 165,000 Ch Impact Ch Adj Normal Cost Ch Impact Ch Adj Chq Total Adj Chg Total Impact I Chg Total 2012 -13 (4,215,1 12) $32,25/,828 (4,225,172) 164,000 S25.76 $6,500,214 $39.64 S65.40 S371.00 2013 -14 (4,554,949) $33,498,861 (4,554,949) 165,000 $27.61 $1.84 $7,260,159 $44.00 $4.37 $6.21 $71.61 $377.21 2014 -15 (85,000,000) ($17,665.743) (85,000,000) 166,000 $27.61 $0.00 $7,420,783 $44.70 $0.70 $0.70 $72.31 $377.91 2015 -16 (10,400,010) ($611,703) ($8,324,011) (18,724,021) 167,000 $112.12 $84.51 $7,578,256 $45.38 $0.68 $85.19 $157.50 $463.10 2016 -17 (12,361,776) $7,137,734 ($8,324,011) (20,685,787) 168,000 $123.13 $11.01 $7,586,928 $45.16 -$0.22 $10.79 $168.29 $473.89 2017 -18 (7,690,909) ($0) ($8,324,011) (16,014,920) 169,000 $94.76 - $28.37 $7,538,870 $44.61 -$0.55 - $28.92 $139.37 $444.97 2018 -19 0 $0 ($8,324,011) (8,324,011) 170,000 $48.96 - $45.80 $7,509,585 $44.17 -$0.43 - $46.23 $93.14 $398.74 2019 -20 0 $0 ($8,324,011) (8,324,011) 171,000 $48.68 -$0.29 $7,538,149 $44.08 -$0.09 -$0.38 $92.76 $398.36 2020 -21 $0 ($8,324,011) (8,324,011) 172,000 $48.40 -$0.28 $7,566,856 $43.99 -$0.09 -$0.37 $92.39 $397.99 2021 -22 $0 ($8,324,011) (8,324,011) 173,000 $48.12 -$0.28 $7,595,707 $43.91 -$0.09 -$0.37 $92.02 $397.62 2022 -23 $0 ($8,324,011) (8,324,011) 174,000 $47.84 -$0.28 $7,624,701 $43.82 -$0.09 -$0.36 $91.66 $397.26 2023 -24 $0 ($8,324,011) (8,324,011) 175,000 $47.57 -$0.27 $7,653,675 $43.74 -$0.08 -$0.36 $91.30 $396.90 2024 -25 $0 ($8,324,011) (8,324,011) 176,000 $47.30 -$0.27 $7,682,759 $43.65 -$0.08 -$0.35 $90.95 $396.55 2025 -26 $0 ($8,324,011) (8,324,011) 177,000 $47.03 -$0.27 $7,711,953 $43.57 -$0.08 -$0.35 $90.60 $396.20 2026 -27 $0 ($8,324,011) (8,324,011) 178.000 $46.76 -$0.26 $7,741,259 $43.49 -$0.08 -$0.34 $90.25 $395.86 2027 -28 $0 ($8,324,011) (8,324,011) 179,000 $46.50 -$0.26 $7,770,676 $43.41 -$0.08 -$0.34 $89.91 $395.52 2028 -29 $0 ($8,324,011) (8,324,011) 180,000 $46.24 -$0.26 $7,800,204 $43.33 -$0.08 -$0.34 $89.58 $395.18 2029 -30 $0 ($4,855,667) (4,855,667) 181,000 $26.83 - $19.42 $7,829,845 $43.26 -$0.08 - $19.49 $70.09 $375.69 2030 -31 $0 0 182,000 $0.00 - $26.83 $7,859,598 $43.18 -$0.07 - $26.90 $43.18 $348.79 2031 -32 $0 0 183,000 $0.00 $0.00 $7,889,465 $43.11 -$0.07 -$0.07 $43.11 $348.71 2032 -33 $0 0 184,000 $0.00 $0.00 $7,919,445 $43.04 -$0.07 -$0.07 $43.04 $348.64 2033 -34 $0 0 185,000 $0.00 $0.00 $7,949,539 $42.97 -$0.07 -$0.07 $42.97 $348.57 (5124,232,816) (5121,391,821) (245,624,637) Central Contra Costa Sanitary District Sewer Service Charge Impact Analysis $85 Million Revenue Bonds @ 20 Years plus $35 Million Cash Payments Fiscal Year UAAL UAAL BOND UAAL & DEBT I RUE's Swr Svc Swr Svc I CCCERA I Swr Svc I Swr Svc Swr Svc Sewer Svc Sewer Svc Applied to Payment Less Payment Payment PAYMENTS 165,000 Chg Impact Chq Adj Normal Cost I Chq Impact I Chg Adj I Chg Total Adj I Chq Total Im act Chg Total 2012 -13 (4,225,1 /2) $32,257,828 (4,225,172) 164,000 - 525.76 $6,500,214 S39.64 S13.87 S371.00 2013 -14 (4,554,949) $33,498,861 (4,554,949) 165,000 - $27.61 -$1.84 $7,260,159 $44.00 $4.37 $2.52 $16.40 $373.52 2014 -15 (85,000,000) ($17,665,743) (85,000,000) 166,000 - $27.61 $0.00 $7,420,783 $44.70 $0.70 $0.70 $17.10 $374.23 2015 -16 (10,400,010) ($611,703) ($7,201,136) (17,601,146) 167,000 - $105.40 - $77.79 $7,578,256 $45.38 $0.68 - $77.12 - $60.02 $297.11 2016 -17 (12,361,776) $7,137,734 ($7,201,136) (19,562,912) 168,000 - $116.45 - $11.05 $7,586,928 $45.16 -$0.22 - $11.27 - $71.29 $285.84 2017 -18 (7,690,909) ($0) ($7,201,136) (14,892,045) 169,000 - $88.12 $28.33 $7,538,870 $44.61 -$0.55 $27.78 - $43.51 $313.62 2018 -19 ($0) ($7,201,136) (7,201,136) 170,000 $42.36 $130.48 $7,509,585 $44.17 -$0.43 $130.04 $86.53 $443.66 2019 -20 ($0) ($7,201,136) (7,201,136) 171,000 $42.11 -$0.25 $7,538,149 $44.08 -$0.09 -$0.34 $86.19 $443.32 2020 -21 $0 ($7,201,136) (7,201,136) 172,000 $41.87 -$0.24 $7,566,856 $43.99 -$0.09 -$0.33 $85.86 $442.99 2021 -22 $0 ($7,201,136) (7,201,136) 173,000 $41.63 -$0.24 $7,595,707 $43.91 -$0.09 -$0.33 $85.53 $442.66 2022 -23 $0 ($7,201,136) (7,201,136) 174.000 $41.39 -$0.24 $7,624,701 $43.82 -$0.09 -$0.32 $85.21 $442.33 2023 -24 $0 ($7,201,136) (7,201,136) 175,000 $41.15 -$0.24 $7,653,675 $43.74 -$0.08 $0.32 $84.88 $442.01 2024 -25 $0 ($7,201,136) (7,201,136) 176,000 $40.92 -$0.23 $7,682,759 $43.65 -$0.08 -$0.32 $84.57 $441.70 2025 -26 $0 ($7,201,136) (7,201,136) 177,000 $40.68 -$0.23 $7,711,953 $43.57 -$0.08 -$0.31 $84.25 $441.38 2026 -27 $0 ($7,201,136) (7,201,136) 178,000 $40.46 -$0.23 $7,741,259 $43.49 -$0.08 -$0.31 $83.95 $441.07 2027 -28 $0 ($7,201,136) (7,201,136) 179,000 $40.23 -$0.23 $7,770,676 $43.41 -$0.08 -$0.30 $83.64 $440.77 2028 -29 $0 ($7,201,136) (7,201,136) 180.000 $40.01 -$0.22 $7,800,204 $43.33 -$0.08 -$0.30 $83.34 $440.47 2029 -30 $0 ($7,201,136) (7,201,136) 181,000 $39.79 -$0.22 $7,829,845 $43.26 -$0.08 -$0.30 $83.04 $440.17 2030 -31 $0 ($7,201,136) (7,201,136) 182,000 $39.57 -$0.22 $7,859,598 $43.18 -$0.07 -$0.29 $82.75 $439.88 2031 -32 $0 ($7,201,136) (7,201,136) 183,000 $39.35 -$0.22 $7,889,465 $43.11 -$0.07 -$0.29 $82.46 $439.59 2032 -33 $0 ($7,201,136) (7,201,136) 184,000 $39.14 -$0.21 $7,919.445 $43.04 -$0.07 -$0.29 $82.18 $439.30 2033 -34 $0 ($11,401,802) (11,401,802) 185,000 $61.63 $22.49 $7,949,539 $42.97 -$0.07 $22.42 $104.60 $461.73 ($124,232,816) ($141,022,250) (265.255.066) Central Contra Costa Sanitary District Sewer Service Charge Impact Analysis $85 Million Revenue Bonds @ 30 Years plus $35 Million Cash Payments Fiscal Year UAAL UAAL BOND UAAL & DEBT RUE's Swr Svc Swr Svc S6,500,214 Swr Svc Swr Svc Swr Svc Sewer Svc Sewer Svc Applied to Payment Less-Payment Payment PAYMENTS (4,554,949) I Ch Im act Chg Adj 1-CCCERA Normal Cost Ch Impact Chg Adj Chg Total Adj Chg Total Impactl Impact Chg Total 2012 -13 (4.225.172) $32,257,828 (4.225,172) 164,000 $25.76 S6,500,214 539.64 565.40 S371.00 2013 -14 (4,554,949) $33,498,861 (4,554,949) 165,000 $27.61 $1.84 $7,260,159 $44.00 $4.37 $6.21 S71.61 $377.21 2014 -15 (85,000,000) ($17,665,743) (85,000,000) 166,000 $27.61 $0.00 $7,420,783 $44.70 $0.70 $0.70 $72.31 $377.91 2015 -16 (10,400,010) ($611,703) ($6,385,085) (16,785,095) 167,000 $100.51 $72.90 $7,578,256 $45.38 $0.68 $73.58 $145.89 $451.49 2016 -17 (12,361,776) $7,137,734 ($6,385,085) (18,746,861) 168,000 $111.59 $11.08 $7,586,928 $45.16 -$0.22 $10.86 $156.75 $462.35 2017 -18 (7,690,909) ($0) ($6,385,085) (14,075,994) 169,000 $83.29 - $28.30 $7,538,870 $44.61 -$0.55 - $28.85 $127.90 $433.50 2018 -19 ($0) ($6,385,085) (6,385,085) 170,000 $37.56 - $45.73 $7,509,585 $44.17 -$0.43 - $46.17 $81.73 $387.33 2019 -20 ($0) ($6,385,085) (6,385,085) 171,000 $37.34 -$0.22 $7,538,149 $44.08 -$0.09 -$0.31 $81.42 $387.02 2020 -21 $0 ($6,385,085) (6,385,085) 172,000 $37.12 -$0.22 $7,566.856 $43.99 -$0.09 -$0.31 $81.12 $386.72 2021 -22 $0 ($6,385,085) (6.385.085) 173,000 $36.91 -$0.21 $7,595,707 $43.91 -$0.09 -$0.30 $80.81 $386.42 2022 -23 $0 ($6,385,085) (6,385,085) 174,000 $36.70 -$0.21 $7,624,701 $43.82 -$0.09 -$0.30 $80.52 $386.12 2023 -24 $0 ($6,385,085) (6,385,085) 175,000 $36.49 -$0.21 $7,653,675 $43.74 -$0.08 $0.29 $80.22 $385.82 2024 -25 $0 ($6,385,085) (6,385,085) 176.000 $36.28 -$0.21 $7,682,759 $43.65 -$0.08 -$0.29 $79.93 $385.53 2025 -26 $0 ($6,385,085) (6,385,085) 177,000 $36.07 -$0.20 $7,711,953 $43.57 -$0.08 -$0.29 $79.64 $385.25 2026 -27 $0 ($6,385,085) (6,385,085) 178,000 $35.87 -$0.20 $7,741,259 $43.49 -$0.08 -$0.28 $79.36 $384.96 2027 -28 $0 ($6,385,085) (6,385,085) 179,000 $35.67 -$0.20 $7,770,676 $43.41 -$0.08 -$0.28 $79.08 $384.68 2028 -29 $0 ($6,385,085) (6,385,085) 180,000 $35.47 -$0.20 $7,800,204 $43.33 -$0.08 -$0.28 $78.81 $384.41 2029 -30 $0 ($6,385.085) (6,385,085) 181,000 $35.28 -$0.20 $7,829,845 $43.26 -$0.08 -$0.27 $78.54 $384.14 2030 -31 $0 ($6,385,085) (6,385,085) 182,000 $35.08 -$0.19 $7,859,598 $43.18 -$0.07 -$0.27 $78.27 $383.87 2031 -32 $0 ($6,385,085) (6,385,085) 183,000 $34.89 -$0.19 $7,889,465 $43.11 -$0.07 -$0.26 $78.00 $383.60 2032 -33 $0 ($6,385,085) (6,385,085) 184,000 $34.70 -$0.19 $7,919,445 $43.04 -$0.07 -$0.26 $77.74 $383.34 2033 -34 $0 ($6,385,085) (6,385,085) 185,000 $34.51 -$0.19 $7,949,539 $42.97 -$0.07 $0.26 $77.48 $383.09 2034 -35 ($6,385,085) (6,385,085) 186,000 $34.33 -$0.19 $7,979,747 $42.90 -$0.07 -$0.25 $77.23 $382.83 2035 -36 ($6,385,085) (6,385,085) 187,000 $34.14 -$0.18 $8,010,070 $42.83 -$0.07 -$0.25 $76.98 $382.58 2036 -37 ($6,385,085) (6,385,085) 188,000 $33.96 -$0.18 $8,040,508 $42.77 -$0.07 -$0.25 $76.73 $382.33 2037 -38 ($6,385,085) (6,385,085) 189,000 $33.78 -$0.18 $8,071,062 $42.70 -$0.06 -$0.24 $76.49 $382.09 2038 -39 ($6,385,085) (6,385,085) 190,000 $33.61 -$0.18 $8,101,732 $42.64 -$0.06 -$0.24 $76.25 $381.85 2039 -40 ($6,385,085) (6,385,085) 191,000 $33.43 -$0.18 $8,132,519 $42.58 -$0.06 -$0.24 $76.01 $381.61 2040 -41 ($6.385,085) (6,385,085) 192,000 $33.26 -$0.17 $8,163,422 $42.52 -$0.06 -$0.23 $75.77 $381.37 2041 -42 ($6,385,085) (6.385,085) 193,000 $33.08 -$0.17 $8,194,443 $42.46 -$0.06 -$0.23 $75.54 $381.14 2042 -43 ($16,494,805) (16,494,805) 194,000 $85.02 $51.94 $8,225,582 $42.40 -$0.06 $51.88 $127.42 $433.03 ($124,232,816) ($188,892,100) (313,124,916) Central Contra Costa Sanitary District Sewer Service Charge Impact Analysis S90 Million Revenue Bonds @ 15 Years plus 530 Million Cash Pavments Fiscal Year UAAL UAAL BOND UAAL & DEBT F RUE's Swr Svc Swr Svc CCCERA Swr Svc Swr Svc Swr Svc Sewer Svc Sewer Svc Applied to Payment Less Pa ment Payment PAYMENTS Ch Impac t Chg Adj Normal Cost Chg Impact I Chg Adi I Chg Total Adi I Chg Total Impactl Chg Total eu IG- 13 k4,LLJ. 1 /Z) �3z,ZOi,uza (4,225,172) 164,000 - 525.16 56,500,214 539.64 S13.87 S371.00 2013 -14 (4.554,949) $33,498,861 (4,554,949) 165,000 - $27.61 -$1.84 $7,260,159 $44.00 $4.37 $2.52 $16.40 $373.52 2014 -15 (90,000,000) ($22,665,743) (90,000,000) 166,000 - $27.61 $0.00 $7,420,783 $44.70 $0.70 $0.70 $17.10 $374.23 2015 -16 (10,400,010) ($5,999,203) ($8,804,687) (19,204,697) 167,000 - $115.00 - $87.39 $7,578,256 $45.38 $0.68 - $86.72 - $69.62 $287.51 2016 -17 (12,361,776) $1,332,703 ($8,804,687) (21,166,463) 168,000 - $125.99 - $10.99 $7,586,928 $45.16 -$0.22 - $11.21 - $80.83 $276.30 2017 -18 (1,435,988) 0 ($8,804,687) (10,240,675) 169,000 $60.60 $186.59 $7,538,870 $44.61 -$0.55 $186.03 $105.20 $462.33 2018 -19 0 0 ($8,804,687) (8,804,687) 170,000 $51.79 -$8.80 $7,509,585 $44.17 -$0.43 -$9.24 $95.97 $453.09 2019 -20 0 ($8,804,687) (8,804,687) 171,000 $51.49 -$0.30 $7,538,149 $44.08 -$0.09 -$0.39 $95.57 $452.70 2020 -21 $0 ($8,804.687) (8,804,687) 172,000 $51.19 -$0.30 $7,566,856 $43.99 -$0.09 -$0.39 $95.18 $452.31 2021 -22 $0 ($8,804,687) (8,804,687) 173,000 $50.89 -$0.30 $7,595.707 $43.91 -$0.09 -$0.38 $94.80 $451.93 2022 -23 $0 ($8,804,687) (8,804,687) 174,000 $50.60 -$0.29 $7,624,701 $43.82 -$0.09 -$0.38 $94.42 $451.55 2023 -24 $0 ($8,804,687) (8,804,687) 175,000 $50.31 -$0.29 $7,653,675 $43.74 -$0.08 -$0.37 $94.05 $451.18 2024 -25 $0 ($8,804,687) (8,804,687) 176,000 $50.03 -$0.29 $7,682,759 $43.65 -$0.08 -$0.37 $93.68 $450.81 2025 -26 $0 ($8,804,687) (8,804,687) 177,000 $49.74 -$0.28 $7,711,953 $43.57 -$0.08 -$0.36 $93.31 $450.44 2026 -27 $0 ($8,804.687) (8,804,687) 178,000 $49.46 -$0.28 $7,741,259 $43.49 -$0.08 -$0.36 $92.95 $450.08 2027 -28 $0 ($8,804,687) (8,804,687) 179,000 $49.19 -$0.28 $7,770,676 $43.41 -$0.08 -$0.35 $92.60 $449.73 2028 -29 $0 ($8,804.687) (8,804,687) 180,000 $48.91 -$0.27 $7,800,204 $43.33 -$0.08 -$0.35 $92.25 $449.38 2029 -30 $0 ($5,136,070) (5,136,070) 181,000 $28.38 - $20.54 $7,829,845 $43.26 -$0.08 - $20.61 $71.63 $428.76 2030 -31 $0 0 182,000 $0.00 - $28.38 $7,859,598 $43.18 -$0.07 - $28.45 $43.18 $400.31 2031 -32 $0 0 183,000 $0.00 $0.00 $7,889,465 $43.11 -$0.07 -$0.07 $43.11 $400.24 2032 -33 $0 0 184,000 $0.00 $0.00 $7,919,445 $43.04 -$0.07 -$0.07 $43.04 $400.17 2033 -34 $0 0 185,000 $0.00 $0.00 $7,949,539 $42.97 -$0.07 -$0.07 $42.97 $400.10 ($122,977,895) ($128,401,688) (251,379,583) Central Contra Costa Sanitary District Sewer Service Charge Impact Analysis $90 Million Revenue Bonds @ 20 Years plus $30 Million Cash Payments Fiscal Year UAAL UAAL BOND UAAL & DEBT RUE's Swr Svc Swr Svc CCCERA Swr Svc Swr Svc Swr Svc Sewer Svc Sewer Svc Applied to Payment Less Pa ment Payment PAYMENTS Ch Impact Ch Ad' Normal Cost C h9 Impact Chq Adjj Chjg Total Adj Chq Total Impactl Impact Chg Total 2012 -13 .. - I72) $32,257,828 (4,225,172) 164,000 - $25.76 $6,500,214 $39.64 $13.87 $371.00 2013 -14 (4,554,949) $33,498,861 (4,554,949) 165,000 - $27.61 -$1.84 $7,260,159 $44.00 $4.37 $2.52 $16.40 $373.52 2014 -15 (90,000,000) ($22,665,743) (90,000,000) 166,000 - $27.61 $0.00 $7,420,783 $44.70 $0.70 $0.70 $17.10 $374.23 2015 -16 (10,400,010) ($5,999,203) ($7,600,951) (18,000,961) 167,000 - $107.79 - $80.18 $7,578,256 $45.38 $0.68 - $79.51 - $62.41 $294.72 2016 -17 (12,361,776) $1,332,703 ($7,600,951) (19,962,727) 168,000 - $118.83 - $11.04 $7,586,928 $45.16 -$0.22 - $11.25 - $73.67 $283.46 2017 -18 (1,435,988) 0 ($7,600,951) (9,036,939) 169,000 $53.47 $172.30 $7,538,870 $44.61 -$0.55 $171.75 $98.08 $455.21 2018 -19 0 ($7,600,951) (7,600,951) 170,000 $44.71 -$8.76 $7,509,585 $44.17 -$0.43 -$9.20 $88.89 $446.01 2019 -20 0 ($7,600,951) (7,600,951) 171,000 $44.45 -$0.26 $7,538,149 $44.08 -$0.09 -$0.35 $88.53 $445.66 2020 -21 $0 ($7,600,951) (7,600,951) 172,000 $44.19 -$0.26 $7,566,856 $43.99 -$0.09 -$0.35 $88.18 $445.31 2021 -22 $0 ($7,600,951) (7,600,951) 173,000 $43.94 -$0.26 $7,595,707 $43.91 -$0.09 -$0.34 $87.84 $444.97 2022 -23 $0 ($7,600,951) (7,600,951) 174,000 $43.68 -$0.25 $7,624,701 $43.82 -$0.09 -$0.34 $87.50 $444.63 2023 -24 $0 ($7,600,951) (7,600,951) 175,000 $43.43 -$0.25 $7,653,675 $43.74 -$0.08 -$0.33 $87.17 $444.30 2024 -25 $0 ($7,600,951) (7,600,951) 176,000 $43.19 -$0.25 $7,682,759 $43.65 -$0.08 -$0.33 $86.84 $443.97 2025 -26 $0 ($7,600,951) (7,600,951) 177,000 $42.94 -$0.24 $7,711,953 $43.57 -$0.08 -$0.33 $86.51 $443.64 2026 -27 $0 ($7,600,951) (7,600,951) 178,000 $42.70 -$0.24 $7,741,259 $43.49 -$0.08 -$0.32 $86.19 $443.32 2027 -28 $0 ($7,600,951) (7,600,951) 179,000 $42.46 -$0.24 $7,770,676 $43.41 -$0.08 -$0.32 $85.88 $443.00 2028 -29 $0 ($7,600,951) (7,600,951) 180,000 $42.23 -$0.24 $7,800,204 $43.33 -$0.08 -$0.31 $85.56 $442.69 2029 -30 $0 ($7,600,951) (7,600,951) 181,000 $41.99 -$0.23 $7,829,845 $43.26 -$0.08 -$0.31 $85.25 $442.38 2030 -31 $0 ($7,600,951) (7,600,951) 182,000 $41.76 -$0.23 $7,859,598 $43.18 -$0.07 -$0.30 $84.95 $442.08 2031 -32 $0 ($7,600,951) (7,600,951) 183,000 $41.54 -$0.23 $7,889,465 $43.11 -$0.07 -$0.30 $84.65 $441.77 2032 -33 $0 ($7,600,951) (7,600,951) 184,000 $41.31 -$0.23 $7,919,445 $43.04 -$0.07 -$0.30 $84.35 $441.48 2033 -34 $0 ($12,034,836) (12,034,836) 185,000 $65.05 $23.74 $7,949,539 $42.97 -$0.07 $23.67 $108.02 $465.15 ($122,977,895) ($148,851,954) (271,829,849) Central Contra Costa Sanitary District Sewer Service Charge Impact Analysis S90 Million Revenue Bonds @ 30 Years plus $30 Million Cash Payments Fiscal Year UAAL I UAAL FLess BOND UAAL & DEBT I RUE's Swr Svc Swr Svc CCCERA Swr Svc Swr Svc Swr Svc Sewer Svc Sewer Svc Applied to Payment Payment Payment PAYMENTS 165.000 Chg Impact I Chq Adj Normal Cost Chq Im act Chg Adj Ch Total Adj jChq Total Impactl Impact Chq Total 2012 -13 (4,225,172) S32,257,828 (4,225,172) 164,000 525.76 $6,500,214 S39.64 565.40 S371.00 2013 -14 (4,554,949) $33,498,861 (4,554,949) 165.000 $27.61 $1.84 $7,260,159 $44.00 $4.37 $6.21 $71.61 $377.21 2014 -15 (90,000,000) ($22,665,743) (90,000,000) 166,000 $27.61 $0.00 $7,420,783 $44.70 $0.70 $0.70 $72.31 $377.91 2015 -16 (10,400,010) ($5,999,203) ($6,718,430) (17,118,440) 167,000 $102.51 $74.90 $7,578,256 $45.38 $0.68 $75.58 $147.88 $453.49 2016 -17 (12,361,776) $1,332,703 ($6,718,430) (19,080,206) 168,000 $113.57 $11.07 $7,586,928 $45.16 -$0.22 $10.85 $158.73 $464.33 2017 -18 (1,435,988) 0.00 ($6,718,430) (8,154,418) 169,000 $48.25 - $65.32 $7,538,870 $44.61 -$0.55 - $65.87 $92.86 $398.46 2018 -19 0 ($6,718,430) (6,718,430) 170,000 $39.52 -$8.73 $7,509,585 $44.17 -$0.43 -$9.17 $83.69 $389.30 2019 -20 0 ($6,718,430) (6,718,430) 171,000 $39.29 -$0.23 $7,538,149 $44.08 -$0.09 -$0.32 $83.37 $388.97 2020 -21 0 ($6,718,430) (6,718,430) 172,000 $39.06 -$0.23 $7,566,856 $43.99 -$0.09 -$0.32 $83.05 $388.66 2021 -22 0 ($6,718,430) (6,718,430) 173,000 $38.83 -$0.23 $7,595,707 $43.91 -$0.09 -$0.31 $82.74 $388.34 2022 -23 0 ($6,718,430) (6,718,430) 174,000 $38.61 -$0.22 $7,624,701 $43.82 -$0.09 -$0.31 $82.43 $388.03 2023 -24 0 ($6,718,430) (6,718,430) 175,000 $38.39 -$0.22 $7,653,675 $43.74 -$0.08 -$0.31 $82.13 $387.73 2024 -25 0 ($6,718,430) (6,718,430) 176,000 $38.17 -$0.22 $7,682,759 $43.65 -$0.08 -$0.30 $81.82 $387.43 2025 -26 0 ($6,718,430) (6,718,430) 177,000 $37.96 -$0.22 $7,711,953 $43.57 -$0.08 -$0.30 $81.53 $387.13 2026 -27 0 ($6,718,430) (6,718,430) 178,000 $37.74 -$0.21 $7,741,259 $43.49 -$0.08 -$0.29 $81.23 $386.84 2027 -28 0 ($6,718,430) (6,718,430) 179,000 $37.53 -$0.21 $7,770,676 $43.41 -$0.08 -$0.29 $80.94 $386.55 2028 -29 0 ($6,718,430) (6,718,430) 180,000 $37.32 -$0.21 $7,800,204 $43.33 -$0.08 -$0.29 $80.66 $386.26 2029 -30 0 ($6,718,430) (6,718,430) 181,000 $37.12 -$0.21 $7,829,845 $43.26 -$0.08 -$0.28 $80.38 $385.98 2030 -31 0 ($6,718,430) (6,718,430) 182,000 $36.91 -$0.20 $7,859,598 $43.18 -$0.07 -$0.28 $80.10 $385.70 2031 -32 0 ($6,718,430) (6,718,430) 183,000 $36.71 -$0.20 $7,889,465 $43.11 -$0.07 -$0.27 $79.82 $385.43 2032 -33 0 ($6,718,430) (6,718,430) 184,000 $36.51 -$0.20 $7,919,445 $43.04 -$0.07 -$0.27 $79.55 $385.15 2033 -34 0 ($6,718,430) (6,718,430) 185,000 $36.32 -$0.20 $7,949,539 $42.97 -$0.07 -$0.27 $79.29 $384.89 2034 -35 ($6,718,430) (6,718,430) 186,000 $36.12 -$0.20 $7,979,747 $42.90 -$0.07 -$0.26 $79.02 $384.62 2035 -36 ($6,718,430) (6,718,430) 187,000 $35.93 -$0.19 $8,010,070 $42.83 -$0.07 -$0.26 $78.76 $384.36 2036 -37 ($6,718,430) (6,718,430) 188,000 $35.74 -$0.19 $8.040,508 $42.77 -$0.07 -$0.26 $78.50 $384.11 2037 -38 ($6,718,430) (6,718,430) 189,000 $35.55 -$0.19 $8,071,062 $42.70 -$0.06 -$0.25 $78.25 $383.85 2038 -39 ($6,718,430) (6,718,430) 190,000 $35.36 -$0.19 $8,101,732 $42.64 -$0.06 -$0.25 $78.00 $383.60 2039 -40 ($6,718,430) (6,718,430) 191,000 $35.18 -$0.19 $8,132,519 $42.58 -$0.06 -$0.25 $77.75 $383.35 2040 -41 ($6,718,430) (6,718,430) 192,000 $34.99 -$0.18 $8,163,422 $42.52 -$0.06 -$0.24 $77.51 $383.11 2041 -42 ($6,718,430) (6,718,430) 193,000 $34.81 -$0.18 $8,194,443 $42.46 -$0.06 -$0.24 $77.27 $382.87 2042 -43 ($17,355,953) (17,355,953) 194,000 $89.46 $54.65 $8,225,582 $42.40 - $0.06 $54.59 $131.86 $437.46 ($122,977,895) ($198,753,563) (321,731,458) Central Contra Costa Sanitary District 2012 Financing Alternatives Pension Obligation Bonds vs. Revenue Bonds Bond Statistics Alternative 1 Tax - Status Tax - Exempt Financing Term Length 15 years Principal Amount $75,590,000 Estimated True Interest Cost �'� 3.20% Total Debt Service $107,930,729 Average Annual Debt Service $7,400,964 Alternative 1 $75 Million Net Proceeds Alternative 2 Taxable 15 years $84,305,000 4.64% $120,069,213 $8,233,317 Alternative 3 Tax - Exempt 20 years $75,520,000 3.84% $125,356,188 $6,401,167 $85 Million Net Proceeds Alternative 2 Alternative 3 Tax - Status Tax- Exempt Taxable Tax - Exempt Financing Term Length 15 years 15 years 20 years Principal Amount $85,245,000 $95,520,000 $85,520,000 Estimated True Interest Cost (1) 3.12% 4.64% 3.82% Total Debt Service $121,391,821 $135,693,314 $141,022,250 Average Annual Debt Service $8,324,011 $9,304,684 $7,201,136 Alternative 1 Tax - Status Tax - Exempt Financing Term Length 15 years Principal Amount $90,270,000 Estimated True Interest Cost �'� 3.12% Total Debt Service $128,401,688 Average Annual Debt Service $8,804,687 (1) Based on interest rates as of November 22, 2011. $90 Million Net Proceeds Alternative 2 Alternative 3 Taxable 15 years $101,125,000 4.63% $143,504,769 $9,840,327 Tax - Exempt 20 years $90,520,000 3.81% $148,851,954 $7,600,951 Alternative 4 Taxable 20 years $84,305,000 5.42% $145,654,271 $7,437,665 Alternative 4 Taxable 20 years $95,520,000 5.41% $163,875,590 $8,368,115 Alternative 4 Taxable 20 years $101,125,000 5.40% $172,985,250 $8,833,289 Central Contra Costa Sanitary District 2012 Financing Alternatives Pension Obligation Bonds (1) Based on interest rates as of November 22, 2011. $30 Million Net Proceeds Bond Statistics Alternative 1 Alternative 2 Alternative 3 Tax - Status Taxable Taxable Taxable Financing Term Length 15 years 20 years 30 years Principal Amount $33,860,000 $33,860,000 $33,860,000 Estimated True Interest Cost (1) 4.73% 5.60% 6.19% Total Debt Service $49,786,153 $62,320,752 $85,364,443 Average Annual Debt Service $3,413,908 $3,182,336 $2,885,559 $35 Million Net Proceeds Alternative 1 Alternative 2 Alternative 3 Tax - Status Taxable Taxable Taxable Financing Term Length 15 years 20 years 30 years Principal Amount $39,465,000 $39,465,000 $39,465,000 Estimated True Interest Cost (1) 4.71% 5.56% 6.19% Total Debt Service $57,594,029 $71,685,843 $99,493,267 Average Annual Debt Service $3,949,305 $3,660,554 $3,363,153 $40 Million Net Proceeds Alternative 1 Alternative 2 Alternative 3 Tax- Status Taxable Taxable Taxable Financing Term Length 15 years 20 years 30 years Principal Amount $45,070,000 $45,070,000 $45,070,000 Estimated True Interest Cost 4.69% 5.53% 6.19% Total Debt Service $65,403,574 $81,053,643 $113,039,855 Average Annual Debt Service $4,484,817 $4,138,909 $3,821,066 $45 Million Net Proceeds Alternative 1 Alternative 2 Alternative 3 Tax- Status Taxable Taxable Taxable Financing Term Length 15 years 20 years 30 years Principal Amount $50,675,000 $50,675,000 $50,675,000 Estimated True Interest Cost (1) 4.68% 5.51% 6.18% Total Debt Service $73,213,279 $90,422,091 $126,323,048 Average Annual Debt Service $5,020,339 $4,617,298 $4,270,075 (1) Based on interest rates as of November 22, 2011. Bond Statistics Tax - Status Financing Term Length Principal Amount Estimated True Interest Cost Total Debt Service Average Annual Debt Service Tax - Status Financing Term Length Principal Amount Estimated True Interest Cost Total Debt Service Average Annual Debt Service Central Contra Costa Sanitary District 2012 Financing Alternatives Pension Obligation Bonds vs. Revenue Bonds Alternative 1 Tax - Exempt 15 years $101,690,000 3.29% $144,450,506 $9,819,143 Alternative 1 Tax - Exempt 15 years $121,875,000 3.28% $172,400,739 $11,719,083 (1) Based on interest rates as of October 21, 2011. $100 Million Net Proceeds Alternative 2 Taxable 15 years $112,335,000 4.87% $161,922,220 $11,006,797 Alternative 3 Tax - Exempt 20 years $101,680,000 3.91% $166,927,207 $8,468,686 $120 Million Net Proceeds Alternative 2 Taxable 15 years $134,755,000 4.86% $193,458,577 $13,150,507 Alternative 3 Tax - Exempt 20 years $121,905,000 3.89% $198,718,808 $10,081,563 Alternative 4 Taxable 20 years $112,335,000 5.65% $196,411,399 $9,964,502 Alternative 4 Taxable 20 years $134,755,000 5.63% $233,686,777 $11,855,586 Attachment L o Central Contra Costa Sanitary District Outstanding and Estimated Debt Service Coverage $30 ($120 Million Net Proceeds - 15 Year Financing) $45 mm Taxable and $75mm Tax Exempt $25 2010 Net Revenue: -$24 million $20 $15 1�1I() $011..I.III CJ N_ M n 2 [� 00 T O — N r It v'; �__ t— x M � v O� O N N N N N N N N N N M M M M M M M M M M c}' O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O N N N N N ■ Outstanding DS 13 15 -Year Tax - Exempt ■ 15 -Year Taxable SOURCES AND USES OF FUNDS Central Contra Costa Sanitary District 2012 Revenue Bonds Tax - Exempt and Taxable Aa1 /AAA Interest Rates as of 11 -22 -11 $120 Million Net Proceeds 15 -Year Financing Term Length --------------------------------- --------------------------------- Dated Date 02/01/2012 Delivery Date 02/01/2012 Sources: Bond Proceeds: Par Amount 125,465,000.00 Premium 9,205,809.85 134,670,809.85 Uses: Project Fund Deposits: Project Fund 120,000,000.00 Other Fund Deposits: Debt Service Reserve Fund 13,467,080.99 Delivery Date Expenses: Cost of Issuance 200,000.00 Underwriter's Discount 1,003,720.00 1,203,720.00 Other Uses of Funds: Rounding - To COI Account 8.86 134,670,809.85 Notes: 1. Assumes tax - exempt Aal /AAA interest rates as of November 22, 2011. 2. Cash- funded debt service reserve fund. 3. Cost of Issuance and Underwriter's Discount estimated at $200K and 0.8 %, respectively. Jan 26, 2012 1:47 pm Prepared by Stone & Youngberg (Finance 6.022 Central Contra Costa San Dis 2 ... :PENSION- 45 -75) Page 1 BOND SUMMARY STATISTICS Central Contra Costa Sanitary District 2012 Revenue Bonds Tax - Exempt and Taxable Aal /AAA Interest Rates as of 11 -22 -11 $120 Million Net Proceeds 15 -Year Financing Term Length Dated Date 02/01/2012 Delivery Date 02/01/2012 First Coupon 09/01/2012 Last Maturity 09/01/2026 Arbitrage Yield 3.464720% True Interest Cost (TIC) 3.643709% Net Interest Cost (NIC) 3.836265% All -In TIC 3.664062% Average Coupon 4.559373% Average Life (years) 9.041 Duration of Issue (years) 7.493 Par Amount 125,465,000.00 Bond Proceeds 134,670,809.85 Total Interest 51,716,193.67 Net Interest 43,514,103.82 Total Debt Service 177,181,193.67 Maximum Annual Debt Service 13,695,457.00 Average Annual Debt Service 12,149,567.57 Underwriter's Fees (per $1000) Average Takedown Other Fee 8.000000 Total Underwriter's Discount 8.000000 Bid Price 106.537353 Par Bond Component Value Average Price Coupon Average Life Taxable 47,050,000.00 100.000 4.560% 9.039 Serial Bond 78,415,000.00 111.740 4.559% 9.041 125,465,000.00 9.041 Jan 26, 2012 1:47 pm Prepared by Stone & Youngberg (Finance 6.022 Central Contra Costa San Dis 2 ... :PENSION- 45_75) Page 2 Par Value • Accrued Interest • Premium (Discount) - Underwriter's Discount - Cost of Issuance Expense - Other Amounts Target Value Target Date Yield BOND SUMMARY STATISTICS Central Contra Costa Sanitary District 2012 Revenue Bonds --------------------------------- - --------------------------------- Tax- Exempt and Taxable Aal /AAA Interest Rates as of 11 -22 -11 $120 Million Net Proceeds 15 -Year Financing Term Length TIC 125,465,000.00 9,205,809.85 - 1,003,720.00 133,667,089.85 02/01 /2012 3.643709% All -In TIC 125,465,000.00 9,205,809.85 - 1,003,720.00 - 200,000.00 133,467,089.85 02/01/2012 3.664062% Arbitrage Yield 125,465,000.00 9,205,809.85 134,670,809.85 02/01/2012 3.464720% Jan 26, 2012 1:47 pm Prepared by Stone & Youngberg (Finance 6.022 Central Contra Costa San Dis 2 ... :PENSION- 45 -75) Page 3 BOND PRICING Central Contra Costa Sanitary District 2012 Revenue Bonds Tax - Exempt and Taxable Aal /AAA Interest Rates as of 11 -22 -11 $120 Million Net Proceeds 15 -Year Financing Term Length Maturity 260,000 1.860% 1.860% 100.000 Yield to Bond Component Date Amount Rate Yield Price Maturity Serial Bond: 2.550% 100.000 09/01/2015 2,745,000 2.760% 09/01/2012 445,000 2.000% 0.300% 100.989 3.160% 09/01/2013 3,285,000 2.000% 0.520% 102.330 100.000 09/01/2014 3,335,000 3.000% 0.750% 105.745 09/01/2019 09/01/2015 4,560,000 3.000% 1.080% 106.730 3,325,000 09/01/2016 4,695,000 3.000% 1.340% 107.354 4.440% 09/01/2017 4,830,000 4.000% 1.640% 112.541 4.640% 09/01/2018 5,015,000 4.000% 1.960% 112.540 100.000 09/01/2019 5,330,000 4.000% 2.320% 111.619 09/01/2025 09/01/2020 5,545,000 4.000% 2.610% 110.625 4,880,000 09/01/2021 5,780,000 4.000% 2.820% 109.846 09/01/2022 6,000,000 5.000% 2.980% 118.217 09/01/2023 6,300,000 5.000% 3.160% 116.439 C 3.282% 09/01/2024 7,385,000 5.000% 3.330% 114.790 C 3.534% 09/01/2025 7,760,000 5.000% 3.470% 113.452 C 3.728% 09/01/2026 8,150,000 5.000% 3.590% 112.321 C 3.885% 78,415,000 Taxable: 09/01/2012 260,000 1.860% 1.860% 100.000 09/01/2013 1,960,000 2.260% 2.260% 100.000 09/01/2014 2,010,000 2.550% 2.550% 100.000 09/01/2015 2,745,000 2.760% 2.760% 100.000 09/01/2016 2,820,000 3.160% 3.160% 100.000 09/01/2017 2,910,000 3.420% 3.420% 100.000 09/01/2018 3,015,000 3.770% 3.770% 100.000 09/01/2019 3,200,000 3.940% 3.940% 100.000 09/01/2020 3,325,000 4.190% 4.190% 100.000 09/01/2021 3,450,000 4.440% 4.440% 100.000 09/01/2022 3,610,000 4.640% 4.640% 100.000 09/01/2023 3,785,000 4.840% 4.840% 100.000 09/01/2024 4,430,000 4.990% 4.990% 100.000 09/01/2025 4,650,000 5.090% 5.090% 100.000 09/01/2026 4,880,000 5.190% 5.190% 100.000 47,050,000 125,465,000 Jan 26, 2012 1:47 pm Prepared by Stone & Youngberg (Finance 6.022 Central Contra Costa San Dis 2 ... :PENSION- 45_75) Page 4 BOND PRICING Central Contra Costa Sanitary District 2012 Revenue Bonds Tax - Exempt and Taxable Aal /AAA Interest Rates as of 11 -22 -11 $120 Million Net Proceeds 15 -Year Financing Term Length --------------------------------- --------------------------------- Dated Date Delivery Date First Coupon Par Amount Premium Production Underwriter's Discount Purchase Price Accrued Interest Net Proceeds 02/01/2012 02/01 /2012 09/01/2012 125,465,000.00 9,205,809.85 134,670,809.85 107.337353% - 1,003,720.00 - 0.800000% 133,667,089.85 106.537353% 133,667,089.85 Jan 26, 2012 1:47 pm Prepared by Stone & Youngberg (Finance 6.022 Central Contra Costa San Dis 2 ... :PENSION-45-75) Page 5 DETAILED BOND DEBT SERVICE Central Contra Costa Sanitary District 2012 Revenue Bonds --------------------------------- --------------------------------- Tax- Exempt and Taxable Aal /AAA Interest Rates as of 11 -22 -11 $120 Million Net Proceeds 15 -Year Financing Term Length --------------------------------- --------------------------------- Dated Date 02/01/2012 Delivery Date 02/01/2012 Serial Bond (EXEMPT) Period Ending Principal Coupon Interest Debt Service 09/01/2012 445,000 2.000% 1,920,362.50 2,365,362.50 09/01/2013 3,285,000 2.000% 3,283,150.00 6,568,150.00 09/01/2014 3,335,000 3.000% 3,217,450.00 6,552,450.00 09/01/2015 4,560,000 3.000% 3,117,400.00 7,677,400.00 09/01/2016 4,695,000 3.000% 2,980,600.00 7,675,600.00 09/01/2017 4,830,000 4.000% 2,839,750.00 7,669,750.00 09/01/2018 5,015,000 4.000% 2,646,550.00 7,661,550.00 09/01/2019 5,330,000 4.000% 2,445,950.00 7,775,950.00 09/01/2020 5,545,000 4.000% 2,232,750.00 7,777,750.00 09/01/2021 5,780,000 4.000% 2,010,950.00 7,790,950.00 09/01/2022 6,000,000 5.000% 1,779,750.00 7,779,750.00 09/01/2023 6,300,000 5.000% 1,479,750.00 7,779,750.00 09/01/2024 7,385,000 5.000% 1,164,750.00 8,549,750.00 09/01/2025 7,760,000 5.000% 795,500.00 8,555,500.00 09/01/2026 8,150,000 5.000% 407,500.00 8,557,500.00 78,415,000 32,322,162.50 110,737,162.50 Jan 26, 2012 1:47 pm Prepared by Stone & Youngberg (Finance 6.022 Central Contra Costa San Dis 2 ... :PENSION- 45_75) Page 6 DETAILED BOND DEBT SERVICE Central Contra Costa Sanitary District 2012 Revenue Bonds --------------------------------- --------------------------------- Tax- Exempt and Taxable Aal /AAA Interest Rates as of 11 -22 -11 $120 Million Net Proceeds 15 -Year Financing Term Length Dated Date 02/01/2012 Delivery Date 02/01/2012 Taxable (TAX) Period Ending Principal Coupon Interest Debt Service 09/01/2012 260,000 1.860% 1,142,597.17 1,402,597.17 09/01/2013 1,960,000 2.260% 1,953,902.00 3,913,902.00 09/01/2014 2,010,000 2.550% 1,909,606.00 3,919,606.00 09/01/2015 2,745,000 2.760% 1,858,351.00 4,603,351.00 09/01/2016 2,820,000 3.160% 1,782,589.00 4,602,589.00 09/01/2017 2,910,000 3.420% 1,693,477.00 4,603,477.00 09/01/2018 3,015,000 3.770% 1,593,955.00 4,608,955.00 09/01/2019 3,200,000 3.940% 1,480,289.50 4,680,289.50 09/01/2020 3,325,000 4.190% 1,354,209.50 4,679,209.50 09/01/2021 3,450,000 4.440% 1,214,892.00 4,664,892.00 09/01/2022 3,610,000 4.640% 1,061,712.00 4,671,712.00 09/01/2023 3,785,000 4.840% 894,208.00 4,679,208.00 09/01/2024 4,430,000 4.990% 711,014.00 5,141,014.00 09/01/2025 4,650,000 5.090% 489,957.00 5,139,957.00 09/01/2026. 4,880,000 5.190% 253,272.00 5,133,272.00 47,050,000 19,394,031.17 66,444,031.17 Jan 26, 2012 1:47 pm Prepared by Stone & Youngberg (Finance 6.022 Central Contra Costa San Dis 2 ... :PENSION- 45 -75) Page 7 AGGREGATE DEBT SERVICE Central Contra Costa Sanitary District 2012 Revenue Bonds Tax - Exempt and Taxable Aal /AAA Interest Rates as of 11 -22 -11 $120 Million Net Proceeds 15 -Year Financing Term Length --------------------------------- --------------------------------- 2012 Revenue Water Period Bonds (15 year Reclamation Aggregate Ending term) Loan 2009A DS 2009B DS Debt Service 09/01/2012 3,767,959.67 187,119 774,046.00 4,676,750 9,405,874.67 09/01/2013 10,482,052.00 187,119 774,046.00 4,683,600 16,126,817.00 09/01/2014 10,472,056.00 187,119 774,046.00 4,694,300 16,127,521.00 09/01/2015 12,280,751.00 187,119 774,046.00 2,884,700 16,126,616.00 09/01/2016 12,278,189.00 187,119 774,046.00 2,886,300 16,125,654.00 09/01/2017 12,273,227.00 187,119 774,046.00 2,889,300 16,123,692.00 09/01/2018 12,270,505.00 187,119 774,046.00 2,892,150 16,123,820.00 09/01/2019 12,456,239.50 774,046.00 2,892,950 16,123,235.50 09/01/2020 12,456,959.50 2,434,046.00 1,234,750 16,125,755.50 09/01/2021 12,455,842.00 2,432,938.00 1,238,750 16,127,530.00 09/01/2022 12,451,462.00 2,433,298.88 1,240,250 16,125,010.88 09/01/2023 12,458,958.00 2,429,842.62 1,239,000 16,127,800.62 09/01/2024 13,690,764.00 2,433,048.62 16,123,812.62 09/01/2025 13,695,457.00 2,432,468.38 16,127,925.38 09/01/2026 13,690,772.00 2,433,382.74 16,124,154.74 09/01/2027 2,430,678.24 2,430,678.24 09/01/2028 2,429,354.88 2,429,354.88 09/01/2029 2,429,199.74 2,429,199.74 177,181,193.67 1,309,833 30,510,626.10 33,452,800 242,454,452.77 Jan 26, 2012 1:47 pm Prepared by Stone & Youngberg (Finance 6.022 Central Contra Costa San Dis 2 ... :PENSION-45-75) Page 8 BOND SOLUTION 125,465,000 177,181,194 57,984,026 235,165,220 359,377,800 124,212,580 Jan 26, 2012 1:47 pm Prepared by Stone & Youngberg (Finance 6.022 Central Contra Costa San Dis 2012:PENSION- 45 -75) Page 9 Central Contra Costa Sanitary District 2012 Revenue Bonds --------------------------------- Tax- Exempt and Taxable Aal /AAA Interest Rates as of 11 -22 -11 $120 Million Net Proceeds --------------------------------- 15 -Year Financing Term Length Period Proposed Proposed Existing Total Adj Revenue Unused Debt Sery Ending Principal Debt Service Debt Service Debt Service Constraints Revenues Coverage 09/01/2012 705,000 3,767,960 5,637,915 9,405,875 23,958,520 14,552,645 254.71868% 09/01/2013 5,245,000 10,482,052 5,644,765 16,126,817 23,958,520 7,831,703 148.56323% 09/01/2014 5,345,000 10,472,056 5,655,465 16,127,521 23,958,520 7,830,999 148.55674% 09/01/2015 7,305,000 12,280,751 3,845,865 16,126,616 23,958,520 7,831,904 148.56508% 09/01/2016 7,515,000 12,278,189 3,847,465 16,125,654 23,958,520 7,832,866 148.57394% 09/01/2017 7,740,000 12,273,227 3,850,465 16,123,692 23,958,520 7,834,828 148.59202% 09/01/2018 8,030,000 12,270,505 3,853,315 16,123,820 23,958,520 7,834,700 148.59084% 09/01/2019 8,530,000 12,456,240 3,666,996 16,123,236 23,958,520 7,835,285 148.59623% 09/01/2020 8,870,000 12,456,960 3,668,796 16,125,756 23,958,520 7,832,765 148.57301% 09/01/2021 9,230,000 12,455,842 3,671,688 16,127,530 23,958,520 7,830,990 148.55666% 09/01/2022 9,610,000 12,451,462 3,673,549 16,125,011 23,958,520 7,833,509 148.57987% 09/01/2023 10,085,000 12,458,958 3,668,843 16,127,801 23,958,520 7,830,719 148.55417% 09/01/2024 11,815,000 13,690,764 2,433,049 16,123,813 23,958,520 7,834,707 148.59091% 09/01/2025 12,410,000 13,695,457 2,432,468 16,127,925 23,958,520 7,830,595 148.55302% 09/01/2026 13,030,000 13,690,772 2,433,383 16,124,155 23,958,520 7,834,365 148.58776% 125,465,000 177,181,194 57,984,026 235,165,220 359,377,800 124,212,580 Jan 26, 2012 1:47 pm Prepared by Stone & Youngberg (Finance 6.022 Central Contra Costa San Dis 2012:PENSION- 45 -75) Page 9 C 0 $30 $25 $20 $15 $10 $0 Central Contra Costa Sanitary District Outstanding and Estimated Debt Service Coverage Attachment M Tr �� I- 00 a O N M 't - O I- 00 Q, O w ON �0 � Cq O O O O O O O O O O O O O O O O O O O O O O O O O O O O tt N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N ■ Outstanding DS ■ 15 -Year Tax - Exempt ■ 15 -Year Taxable SOURCES AND USES OF FUNDS Central Contra Costa Sanitary District 2012 Revenue Bonds Tax - Exempt and Taxable Aal /AAA Interest Rates as of 11 -22 -11 $120 Million Net Proceeds 15 -Year Financing Term Length Dated Date 02/01/2012 Delivery Date 02/01/2012 Sources: Bond Proceeds: Par Amount 124,320,000.00 Premium 10,343,235.65 134,663,235.65 Uses: Project Fund Deposits: Project Fund 120,000,000.00 Other Fund Deposits: Debt Service Reserve Fund 13,466,323.57 Delivery Date Expenses: Cost of Issuance 200,000.00 Underwriter's Discount 994,560.00 1,194,560.00 Other Uses of Funds: Rounding - To COI Account 2,352.08 134,663,235.65 Notes: 1. Assumes tax - exempt Aal /AAA interest rates as of November 22, 2011. 2. Cash - funded debt service reserve fund. 3. Cost of Issuance and Underwriter's Discount estimated at $200K and 0.8%, respectively. Jan 26, 2012 1:49 pm Prepared by Stone & Youngberg (Finance 6.022 Central Contra Costa San Dis 2 ... :PENSION-35_85) Page 1 BOND SUMMARY STATISTICS Central Contra Costa Sanitary District 2012 Revenue Bonds --------------------------------- --------------------------------- Tax- Exempt and Taxable Aal /AAA Interest Rates as of 11 -22 -11 $120 Million Net Proceeds 15 -Year Financing Term Length --------------------------------- --------------------------------- Dated Date 02/01/2012 Delivery Date 02/01/2012 First Coupon 09/01/2012 Last Maturity 09/01/2026 Arbitrage Yield 3.324078% True Interest Cost (TIC) 3.520517% Net Interest Cost (NIC) 3.728485% All -In TIC 3.540791% Average Coupon 4.559689% Average Life (years) 9.047 Duration of Issue (years) 7.518 Par Amount 124,320,000.00 Bond Proceeds 134,663,235.65 Total Interest 51,283,505.17 Net Interest 41,934,829.52 Total Debt Service 175,603,505.17 Maximum Annual Debt Service 13,583,663.00 Average Annual Debt Service 12,041,383.21 Underwriter's Fees (per $1000) Average Takedown Other Fee 8.000000 Total Underwriter's Discount 8.000000 Bid Price 107.519848 Par Bond Component Value Price Average Coupon Average Life Taxable 36,270,000.00 100.000 4.561% 9.045 Serial Bond 88,050,000.00 111.747 4.559% 9.048 124,320,000.00 9.047 Jan 26, 2012 1:49 pm Prepared by Stone & Youngberg (Finance 6.022 Central Contra Costa San Dis 2 ... :PENSION- 35_85) Page 2 Par Value • Accrued Interest • Premium (Discount) - Underwriter's Discount - Cost of Issuance Expense - Other Amounts Target Value Target Date Yield BOND SUMMARY STATISTICS Central Contra Costa Sanitary District 2012 Revenue Bonds Tax - Exempt and Taxable Aal /AAA Interest Rates as of 11 -22 -11 $120 Million Net Proceeds 15 -Year Financing Term Length --------------------------------- --------------------------------- All -In Arbitrage TIC TIC Yield 124,320,000.00 10,343,235.65 - 994,560.00 133,668,675.65 02/01/2012 3.520517% 124,320,000.00 10,343,235.65 - 994,560.00 - 200,000.00 133,468,675.65 02/01/2012 3.540791% 124,320,000.00 10,343,235.65 134,663,235.65 02/01/2012 3.324078% Jan 26, 2012 1:49 pm Prepared by Stone & Youngberg (Finance 6.022 Central Contra Costa San Dis 2 ... :PENSION- 35_85) Page 3 BOND PRICING Central Contra Costa Sanitary District 2012 Revenue Bonds Tax - Exempt and Taxable Aal /AAA Interest Rates as of 11 -22 -11 $120 Million Net Proceeds 15 -Year Financing Term Length Maturity Bond Component Date Amount Rate Yield Price Yield to Maturity Serial Bond: 09/01/2012 475,000 2.000% 0.300% 100.989 09/01/2013 3,665,000 2.000% 0.520% 102.330 09/01/2014 3,730,000 3.000% 0.750% 105.745 09/01/2015 5,125,000 3.000% 1.080% 106.730 09/01/2016 5,275,000 3.000% 1.340% 107.354 09/01/2017 5,420,000 4.000% 1.640% 112.541 09/01/2018 5,635,000 4.000% 1.960% 112.540 09/01/2019 5,995,000 4.000% 2.320% 111.619 09/01/2020 6,235,000 4.000% 2.610% 110.625 09/01/2021 6,490,000 4.000% 2.820% 109.846 09/01/2022 6,740,000 5.000% 2.980% 118.217 09/01/2023 7,080,000 5.000% 3.160% 116.439 C 3.282% 09/01/2024 8,305,000 5.000% 3.330% 114.790 C 3.534% 09/01/2025 8,720,000 5.000% 3.470% 113.452 C 3.728% 09/01/2026 9,160,000 5.000% 3.590% 112.321 C 3.885% 88,050,000 Taxable: 09/01/2012 195,000 1.860% 1.860% 100.000 09/01/2013 1,510,000 2.260% 2.260% 100.000 09/01/2014 1,545,000 2.550% 2.550% 100.000 09/01/2015 2,110,000 2.760% 2.760% 100.000 09/01/2016 2,170,000 3.160% 3.160% 100.000 09/01/2017 2,250,000 3.420% 3.420% 100.000 09/01/2018 2,325,000 3.770% 3.770% 100.000 09/01/2019 2,465,000 3.940% 3.940% 100.000 09/01/2020 2,560,000 4.190% 4.190% 100.000 09/01/2021 2,660,000 4.440% 4.440% 100.000 09/01/2022 2,785,000 4.640% 4.640% 100.000 09/01/2023 2,915,000 4.840% 4.840% 100.000 09/01/2024 3,420,000 4.990% 4.990% 100.000 09/01/2025 3,590,000 5.090% 5.090% 100.000 09/01/2026 3,770,000 5.190% 5.190% 100.000 36,270,000 124,320,000 Jan 26, 2012 1:49 pm Prepared by Stone & Youngberg (Finance 6.022 Central Contra Costa San Dis 2 ... :PENSION- 35_85) Page 4 BOND PRICING Central Contra Costa Sanitary District 2012 Revenue Bonds --------------------------------- --------------------------------- Tax- Exempt and Taxable Aal /AAA Interest Rates as of 11 -22 -11 $120 Million Net Proceeds 15 -Year Financing Term Length --------------------------------- --------------------------------- Dated Date Delivery Date First Coupon Par Amount Premium Production Underwriter's Discount Purchase Price Accrued Interest Net Proceeds 02/01/2012 02/01/2012 09/01/2012 124,320,000.00 10,343,235.65 134,663,235.65 108.319848% - 994,560.00 - 0.800000% 133,668,675.65 107.519848% 133,668,675.65 Jan 26, 2012 1:49 pm Prepared by Stone & Youngberg (Finance 6.022 Central Contra Costa San Dis 2 ... :PENSION- 35_85) Page 5 DETAILED BOND DEBT SERVICE Central Contra Costa Sanitary District 2012 Revenue Bonds Tax - Exempt and Taxable Aal /AAA Interest Rates as of 11 -22 -11 $120 Million Net Proceeds 15 -Year Financing Term Length Dated Date 02/01/2012 Delivery Date 02/01/2012 Serial Bond (EXEMPT) Period Ending Principal Coupon Interest Debt Service 09/01/2012 475,000 2.000% 2,157,137.50 2,632,137.50 09/01/2013 3,665,000 2.000% 3,688,450.00 7,353,450.00 09/01/2014 3,730,000 3.000% 3,615,150.00 7,345,150.00 09/01/2015 5,125,000 3.000% 3,503,250.00 8,628,250.00 09/01/2016 5,275,000 3.000% 3,349,500.00 8,624,500.00 09/01/2017 5,420,000 4.000% 3,191,250.00 8,611,250.00 09/01/2018 5,635,000 4.000% 2,974,450.00 8,609,450.00 09/01/2019 5,995,000 4.000% 2,749,050.00 8,744,050.00 09/01/2020 6,235,000 4.000% 2,509,250.00 8,744,250.00 09/01/2021 6,490,000 4.000% 2,259,850.00 8,749,850.00 09/01/2022 6,740,000 5.000% 2,000,250.00 8,740,250.00 09/01/2023 7,080,000 5.000% 1,663,250.00 8,743,250.00 09/01/2024 8,305,000 5.000% 1,309,250.00 9,614,250.00 09/01/2025 8,720,000 5.000% 894,000.00 9,614,000.00 09/01/2026 9,160,000 5.000% 458,000.00 9,618,000.00 88,050,000 36,322,087.50 124,372,087.50 Jan 26, 2012 1:49 pm Prepared by Stone & Youngberg (Finance 6.022 Central Contra Costa San Dis 2 ... :PENSION- 35_85) Page 6 DETAILED BOND DEBT SERVICE Central Contra Costa Sanitary District 2012 Revenue Bonds --------------------------------- Tax - Exempt and Taxable Aal /AAA Interest Rates as of 11 -22 -11 $120 Million Net Proceeds 15 -Year Financing Term Length Dated Date 02/01/2012 Delivery Date 02/01/2012 Taxable (TAX) Period Ending Principal Coupon Interest Debt Service 09/01/2012 195,000 1.860% 881,073.67 1,076,073.67 09/01/2013 1,510,000 2.260% 1,506,785.00 3,016,785.00 09/01/2014 1,545,000 2.550% 1,472,659.00 3,017,659.00 09/01/2015 2,110,000 2.760% 1,433,261.50 3,543,261.50 09/01/2016 2,170,000 3.160% 1,375,025.50 3,545,025.50 09/01/2017 2,250,000 3.420% 1,306,453.50 3,556,453.50 09/01/2018 2,325,000 3.770% 1,229,503.50 3,554,503.50 09/01/2019 2,465,000 3.940% 1,141,851.00 3,606,851.00 09/01/2020 2,560,000 4.190% 1,044,730.00 3,604,730.00 09/01/2021 2,660,000 4.440% 937,466.00 3,597,466.00 09/01/2022 2,785,000 4.640% 819,362.00 3,604,362.00 09/01/2023 2,915,000 4.840% 690,138.00 3,605,138.00 09/01/2024 3,420,000 4.990% 549,052.00 3,969,052.00 09/01/2025 3,590,000 5.090% 378,394.00 3,968,394.00 09/01/2026 3,770,000 5.190% 195,663.00 3,965,663.00 36,270,000 14,961,417.67 51,231,417.67 Jan 26, 2012 1:49 pm Prepared by Stone & Youngberg (Finance 6.022 Central Contra Costa San Dis 2 ... :PENSION- 35_85) Page 7 AGGREGATE DEBT SERVICE Jan 26, 2012 1:49 pm Prepared by Stone & Youngberg (Finance 6.022 Central Contra Costa San Dis 2 ... :PENSION-35-85) Page 8 Central Contra Costa Sanitary District 2012 Revenue Bonds --------------------------------- Tax- Exempt and Taxable Aal /AAA Interest Rates as of 11 -22 -11 $120 Million Net Proceeds --------------------------------- --------------------------------- 15 -Year Financing Term Length 2012 Revenue Water Period Bonds (15 year Reclamation Aggregate Ending term) Loan 2009A DS 2009B DS Debt Service 09/01 /2012 3,708,211.17 187,119 774,046.00 4,676,750 9,346,126.17 09/01/2013 10,370,235.00 187,119 774,046.00 4,683,600 16,015,000.00 09/01/2014 10,362,809.00 187,119 774,046.00 4,694,300 16,018,274.00 09/01/2015 12,171,511.50 187,119 774,046.00 2,884,700 16,017,376.50 09/01/2016 12,169,525.50 187,119 774,046.00 2,886,300 16,016,990.50 09/01/2017 12,167,703.50 187,119 774,046.00 2,889,300 16,018,168.50 09/01/2018 12,163,953.50 187,119 774,046.00 2,892,150 16,017,268.50 09/01/2019 12,350,901.00 774,046.00 2,892,950 16,017,897.00 09/01/2020 12,348,980.00 2,434,046.00 1,234,750 16,017,776.00 09/01/2021 12,347,316.00 2,432,938.00 1,238,750 16,019,004.00 09/01/2022 12,344,612.00 2,433,298.88 1,240,250 16,018,160.88 09/01/2023 12,348,388.00 2,429,842.62 1,239,000 16,017,230.62 09/01/2024 13,583,302.00 2,433,048.62 16,016,350.62 09/01/2025 13,582,394.00 2,432,468.38 16,014,862.38 09/01/2026 13,583,663.00 2,433,382.74 16,017,045.74 09/01/2027 2,430,678.24 2,430,678.24 09/01/2028 2,429,354.88 2,429,354.88 09/01/2029 2,429,199.74 2,429,199.74 175,603,505.17 1,309,833 30,510,626.10 33,452,800 240,876,764.27 Jan 26, 2012 1:49 pm Prepared by Stone & Youngberg (Finance 6.022 Central Contra Costa San Dis 2 ... :PENSION-35-85) Page 8 BOND SOLUTION Central Contra Costa Sanitary District 2012 Revenue Bonds --------------------------------- --------------------------------- Tax- Exempt and Taxable Aal /AAA Interest Rates as of 11 -22 -11 $120 Million Net Proceeds 15 -Year Financing Term Length --------------------------------- --------------------------------- Period Proposed Proposed Existing Total Adj Revenue Unused Debt Sery Ending Principal Debt Service Debt Service Debt Service Constraints Revenues Coverage 09/01/2012 670,000 3,708,211 5,637,915 9,346,126 23,958,520 14,612,394 256.34706% 09/01/2013 5,175,000 10,370,235 5,644,765 16,015,000 23,958,520 7,943,520 149.60050% 09/01/2014 5,275,000 10,362,809 5,655,465 16,018,274 23,958,520 7,940,246 149.56992% 09/01/2015 7,235,000 12,171,512 3,845,865 16,017,377 23,958,520 7,941,144 149.57830% 09/01/2016 7,445,000 12,169,526 3,847,465 16,016,991 23,958,520 7,941,530 149.58191% 09/01/2017 7,670,000 12,167,704 3,850,465 16,018,169 23,958,520 7,940,352 149.57091% 09/01/2018 7,960,000 12,163,954 3,853,315 16,017,269 23,958,520 7,941,252 149.57931% 09/01/2019 8,460,000 12,350,901 3,666,996 16,017,897 23,958,520 7,940,623 .149.57344% 09/01/2020 8,795,000 12,348,980 3,668,796 16,017,776 23,958,520 7,940,744 149.57457% 09/01/2021 9,150,000 12,347,316 3,671,688 16,019,004 23,958,520 7,939,516 149.56311% 09/01/2022 9,525,000 12,344,612 3,673,549 16,018,161 23,958,520 7,940,359 149.57098% 09/01/2023 9,995,000 12,348,388 3,668,843 16,017,231 23,958,520 7,941,289 149.57967% 09/01/2024 11,725,000 13,583,302 2,433,049 16,016,351 23,958,520 7,942,169 149.58788% 09/01/2025 12,310,000 13,582,394 2,432,468 16,014,862 23,958,520 7,943,658 149.60179% 09/01/2026 12,930,000 13,583,663 2,433,383 16,017,046 23,958,520 7,941,474 149.58139% 124,320,000 175,603,505 57,984,026 233,587,531 359,377,800 125,790,269 Jan 26, 2012 1:49 pm Prepared by Stone & Youngberg (Finance 6.022 Central Contra Costa San Dis 2012:PENSION- 35 -85) Page 9 S75 Million Revenue Bonds C? 15 Years plus $45 Million Cash Payments +S10 Rate Increase Fiscal Year Applied to )Total Payment UAAL Balance UAAL Increase Adi UAAL Balance UAAL Payment UAAL Less Payment SSC Contribution UAAL less SSC Interest Ending Balance Cost of Debt Total Annual Expense RUES Swr Svc Chq Impact Swr Svc Chq Chq Swr Svc Chg 2012 -13 $4,225,172 $30,379,000 6,104,000 36,483,000 (4,225,172) $32,257,828 $32,257,828 2.499,982 34,757,810 (4,225,172) 164,000 $25.76 $371.00 2013 -14 $4,554,949 $34,757,810 3,296.000 38,053,810 (4.554,949) $33,498,861 ($1,650,000) $31,848,861 2,468,287 34,317,147 (6.204,949) 165.000 $37.61 $11.84 $382.84 2014 -15 $7,595,042 $34,317,147 31,239,235 65,556,382 (75,000,000) (59.443,618) (51,660,000) ($11,103,618) (860.530) (11.964 148) (1,660,000) 166,000 $10.00 (S:�7(,1) $355.24 2015 -16 $10,400,010 ($11,964,148) 28.823,145 16,858,997 (10,400,010) 56,458,987 ($1.670.000) $4,788.987 371,146 5,160,133 ($2,277,582) (14,347,592) 167,000 $85.91 $75.91 $431.15 2016 -17 $12,361.776 $5,160,133 20.158.620 25,318,753 (12,361,776) $12,956,977 (S1,680,000) $11,276,977 873,966 12.150,943 ($5.485.800) (19.527,576) 168.000 $116.24 $30.32 $461.47 2017.18 $12,361,776 512,150,943 0 12,150,943 (12.150,943) $0 $0 $0 0 0 ($5,474,000) (17,624,943) 169,000 $104.29 ($11.95) $449.53 2018 -19 $12,361,776 $0 0 0 $0 $0 $0 0 0 ($7,287.750) (7,287.750) 170,000 $42.87 ($61.42) $388.11 2019 -20 $12,361,776 $0 0 0 0 $0 $0 $0 0 0 ($7284'950) (7,284,950) 171.000 $42.60 ($0.27) $387.84 2020 -21 $12.361,776 $0 0 0 0 $0 $0 $0 0 0 ($7.283.400) (7,283,400) 172,000 $42.35 ($0.26) 5387.58 2021 -22 $12,361,776 $0 0 0 0 $0 $0 50 0 0 ($7,277,800) (7,277,800) 173,000 $42.07 ($0.28) $387.30 2022 -23 $12,361,776 $0 0 0 0 $0 $0 $0 0 0 ($7,465,200) (7,465.200) 174,000 $42.90 $0.84 $388.14 2023 -24 $12,361,776 $0 0 0 0 $0 $0 50 0 0 (57.462.600) (7,462.600) 175.000 $42.64 ($0.26) $387.88 2024 -25 $12,361,778 50 0 0 0 $0 $0 $0 0 0 ($7,462,000) (7,462,000) 176,000 $42.40 ($0.25) $387.63 2025 -26 $8.136.604 $0 0 0 0 $0 50 $0 0 0 ($7,458,000) (7,458,000) 177,000 $42.14 ($0.26) $387.37 2026 -27 $8,136,604 $0 0 0 0 $0 $0 $0 0 0 ($7,463,500) (7,463,500) 178.000 $41.93 (5011) $387.17 2027 -28 $8,136,604 $0 0 0 0 $0 $0 5o 0 0 ($8.699,500) (8.699,500) 179,000 $48.60 $6.67 $393.84 2028 -29 $8,136.604 $0 0 0 0 $0 $0 $0 0 0 ($8.698.750) (8,698,750) 180.000 $48.33 ($0.27) $393.56 2029 -30 $8,136,611 50 0 0 0 $0 SO 50 0 0 ($8.699.250) (8,699,250) 181,000 $48.06 ($0.26) 5393.30 2030 -31 $7,806,827 $0 0 0 0 $0 $0 50 0 0 0 182,000 $0.00 ($4806) $345.24 2031 -32 $7,806,827 $0 0 0 0 $0 $0 $0 0 0 0 183,000 $0.00 $0.00 $345.24 2032.33 $4,766,727 $0 0 0 0 $0 $0 50 0 0 0 184,000 $0.00 $0.00 $345.24 2033 -34 $1,961.772 $0 0 0 0 $0 $0 $0 0 0 0 185,000 $0.00 $0.00 $345.24 $201.056.339 $89.621.000 (S 118.692,850) ($1.680.000) $5.352.850 (105.780.082) (156,132,932) 186,000 Total Savings (S44.923A 19) $75 Million Revenue Bonds @ 15 Years plus $45 Million Cash Payments +$30 Rate Increase Fiscal Year _ Applied to (Total Payment UAAL Balance UAAL Increase Adl UAAL Balance UAAL Payment UAAL Less Payment SSC Contribution UAAL less SSC Interest Ending Balance Cost of Debt Total Annual Expense RUE's Swr Svc Chg Impact Swr Svc Chg Chq Swr Svc Chg 2012 -13 $4,225.172 $30,379,000 6,104,000 36,483,000 (4,225,172) $32,257,828 $32,257,828 2,499.982 34,757,810 (4.225,172) 164,000 525.76 5371.00 2013 -14 $4,554,949 $34,757,810 3,296,000 38,053,810 (4,554,949) $33,498,861 ($4,950,000) $28,548,861 2,212,537 30,761,397 (9,504,949) 165,000 $57.61 $31.84 $402.84 2014 -15 $7.595,042 $30,761,397 31,239,235 62,000,632 (75,000,000) ($12,999,368) ($4,980,000) ($17,979,368) (1,393.401) (19,372,769) (4,980,000) 166.000 $30.00 ($27.61) $375.24 2015 -16 510,400,010 ($19,372.769) 28,823,145 9,450,376 (10,400,010) (5949,634) ($5.010.000) (55.959,634) (461,872) (6,421,505) ($2,277,582) (17,687,592) 167,000 $105.91 $75.91 $451.15 2016 -17 $12,361,776 (S6.421,505) 20.158.620 13,737,115 (12,361,776) $1,375,339 ($1,375.339) (SO) (0) (0) ($5.485,800) (19.222,915) 168,000 $114.42 $8.51 S459.66 2017 -18 $12,361,776 (SO) 0 (0) 0 ($0) $0 (SO) (0) (0) ($5,474,000) (5,474,000) 169,000 $32.39 ($82.03) $377.63 2018 -19 512,361,776 (SO) 0 (G1 ($0) $0 ($0) (0) (0) ($7,287,750) (7,287,750) 170,000 542.87 $10.48 $388.11 2019 -20 $12,361,776 $0 0 0 0 $0 50 $0 0 0 ($7,284,950) (7,284.950) 171,000 $42.60 ($027) $387.84 2020 -21 $12.361,776 $0 0 0 0 $0 SO $0 0 0 ($7,283,400) (7,283,400) 172,000 $42.35 ($0.26) $387.58 2021 -22 $12,361,776 $0 0 0 0 $0 50 $0 0 0 ($7,277,800) (7,277,800) 173,000 $42.07 ($0.28) $387.30 2022 -23 $12,361,776 $0 0 0 0 SO $0 SO 0 0 ($7,465,200) (7,465,200) 174,000 $42.90 $0.84 $388.14 2023 -24 $12.361,776 50 0 0 0 SO SO $0 0 0 ($7,462,600) (7.462.600) 175,000 $42.64 ($0.26) $387.88 2024 -25 512,361,778 $0 0 0 0 $0 $0 50 0 0 ($7,462,000) (7,462,000) 176,000 $42.40 ($015) $387.63 2025 -26 $8,136,604 $0 0 0 0 $0 $0 $0 0 0 (57,458.000) (7,458.000) 177,000 $42.14 ($0.26) $387.37 2026 -27 $8,136,604 $0 0 0 0 $0 $0 50 0 0 ($7,463,500) (7,463.500) 178,000 $41.93 ($0.21) $387.17 2027.28 58,136.604 $0 0 0 0 $0 $0 $0 0 0 ($8,699,500) (8,699,500) 179,000 $48.60 $6.67 $393.84 2028 -29 S8.136.604 $0 0 0 0 $0 $0 $0 0 0 ($8,698.750) (8,698,750) 180,000 548.33 ($0.27) $393.56 2029 -30 $8,136,611 $0 0 0 0 50 $0 $0 0 0 (58.699,250) (8,699,250) 181,000 548.06 ($026) $393.30 2030 -31 57,806.827 $0 0 0 0 s0 $0 SO 0 0 0 182,000 $0.00 ($4806) $345.24 2031 -32 $7,806,827 $0 0 0 0 SO $0 $0 0 0 0 183,000 $0.00 50.00 $345.24 2032 -33 54,766,727 $0 0 0 0 $0 $0 $0 0 0 0 184,000 $0.00 $0.00 $345.24 2033 -34 $1,961,772 $0 0 0 0 SO $0 $0 0 0 0 185,000 50.00 $0.00 $345.24 5201.056.339 $89.621,000 (5106.541,907) 3'.31 ±i $2.857,246 (105.780.082) (153.637.328) 186.000 Total Savings ($47,419.023) $75 Million Revenue Bonds @ 15 Years plus $45 Million Cash Payments +$60 Rate Increase Fiscal Year Applied to ITotal Payment UAAL Balance UAAL Increase Ad1 UAAL Balance UAAL Payment UAAL Less Payment SSC Contribution UAAL less SSC Interest Ending Balance Cost of Debt Total Annual Expense RUE's Swr Svc Chg Impact Swr Svc Chg Chg Swr Svc Chg 2012 -13 $4,225,172 $30,379,000 6.104,000 36,483,000 (4,225,172) $32,257,828 $32,257,828 2.499,982 34,757,810 (4,225.172) 164,000 $25.76 $25.76 $371.00 2013 -14 $4,554,949 $34,757,810 3,296,000 38,053,810 (4.554,949) $33,498,861 ($9.9()0,W0) $23,598,861 1,828,912 25,427,772 (14,454,949) 165,000 $87.61 $61.84 $432.84 2014 -15 $7,595,042 $25,427,772 31,239,235 56,667,007 (75,000,000) ($18,332,993) ($9.960,000) ($28,292,993) (2,192,707) (30,485,700) (9,960.000) 166.000 $60.00 $147.61 $580.45 2015.16 $10.400.010 ($30,485.700) 28.823.145 (1,662,555) (10.400,010) ($12,062,565) $0 ($12.062.565) (934,849) (12,997,413) ($2,277,582) (12,677,592) 167,000 $75.91 $15.91 $596.36 2016 -17 $12,361,776 ($12.997,413) 20,158,620 7,161,207 (7,161,207) ($0) $0 ($0) (0) (0) ($5,485,800) (12,647.007) 168.000 $75.28 $151.19 $747.56 2017 -18 $12,361,776 (SO) 0 (0) 0 ($0) $0 ($0) (0) (0) ($5.474,000) (5,474,000) 169,000 $32.39 $107.67 $855.23 2018.19 $12.361,776 $0 0 0 0 $0 $0 $0 0 0 ($7,287.750) (7,287,750) 170,000 $42.87 $10.48 $865.70 2019 -20 $12.361,776 $0 0 0 0 $0 $0 $0 0 0 ($7,284,950) (7,284,950) 171.000 $42.60 $85.47 $951.18 2020.21 $12,361,776 $0 0 0 0 $0 $0 $0 0 0 ($7,283,400) (7,283,400) 172,000 $42.35 $84.95 $1,036.12 2021 -22 $12,361,776 $0 0 0 0 $0 $0 $0 0 0 ($7.277,800) (7.277,800) 173,000 $42.07 $84.41 $1,120.54 2022.23 $12,361,776 $0 0 0 0 $0 $0 $0 0 0 ($7,465,200) (7,465,200) 174,000 $42.90 $0.84 $1,121.37 2023 -24 $12,361,776 $0 0 0 0 $0 $0 $0 0 0 ($7,462,600) (7,462,600) 175.000 $42.64 $85.55 $1,206.92 2024 -25 $12,361,778 $0 0 0 0 $0 $0 SO 0 0 ($7,462,000) (7,462,000) 176,000 $42.40 $85.04 $1,291.96 2025 -26 $8,136,604 $0 0 0 0 $0 $0 $0 0 0 ($7,458.000) (7.458,000) 177,000 $42.14 $84.53 $1,376.49 2026.27 $8,136.604 $0 0 0 0 $0 $0 $0 0 0 ($7,463,500) (7,463,500) 178,000 $41.93 $84.07 $1,460.56 2027 -28 $8,136,604 $0 0 0 0 $0 SO $0 0 0 ($8,699,500) (8,699,500) 179.000 $48.60 $6.67 $1,467.23 2028 -29 $8,136.604 $0 0 0 0 $0 $0 $0 0 0 ($8,698,750) (8,698,750) 180.000 $48.33 $96.93 $1,564.16 2029 -30 $8,136,611 SO 0 0 0 $0 $0 $0 0 0 ($8,699,250) (8,699,250) 181,000 548.06 $96.39 $1,660.54 2030 -31 $7,806,827 SO 0 0 0 $0 SO $0 0 0 0 182,000 $0.00 $48.06 $1,708.61 2031 -32 $7,806.827 SO 0 0 0 $0 SO SO 0 0 0 183,000 $0.00 $0.00 $1,708.61 2032 -33 $4,766,727 $0 0 0 0 $0 SO $0 0 0 0 184,000 $0.00 $0.00 $1,708.61 2033.34 $1,961.772 SO 0 0 0 $0 $0 $0 0 0 0 185,000 $0.00 $0.00 $1,708.61 $201,056,339 $89.621.000 (5101,341,338) $0 $1,2.01,338 (105,780.082) (151,981,420) 186,000 Total Savings ($49.074,931) SECTION 2: Valuation Results for the Contra Costa County Employees' Retirement Association D. RECOMMENDED CONTRIBUTION Employer contributions consist of two components: Normal Cost The annual contribution rate that, if paid annually from a member's first year of membership through the year of retirement, would accumulate to the amount necessary to fully fund the member's retirement- related benefits. Accumulation includes annual crediting of interest at the assumed investment earning rate. The contribution rate is expressed as a level percentage of the member's compensation. Contribution to the Uttfiruded Actuarial Accrued Liabilio) (UAAL) The annual contribution rate that, if paid annually over the UAAL amortization period, would accumulate to the amount necessary to fiilly fund the UAAL. Accumulation includes annual crediting of interest at the assumed investment earning rate. The contribution (or rate credit in the case of a negative UAAL ) is calculated to remain as a level percentage of fiuture active member payroll (including payroll for new members as they enter the Association) assuming a constant number of active members. In order to remain as a level percentage of payroll, amortization payments (credits) are scheduled to increase at the combined annual inflation and "across the board" salary increase rate of 4.25% along with expected payroll. The remaining balance of the December 31, 2007 UAAL is being amortized over a 12 -year declining period as of December 31, 2010. Any change in the UAAL that arises at each valuation after December 31, 2007 is amortized over its own separate declining 18- year period. Employer Conlrihulion Rates The current employer contribution rates are shown in Charts 14 -A for members with membership dates before January 1, 2011 and 14 -B for members with membership dates oil or alter January 1, 2011. The recommended employer contributions are provided on Charts 15 -A for members with membership dates before January 1, 2011 and 15 -B for members with membership dates on or after January 1, 2011. County contribution rates also include the Superior Court. The demographics of members with membership dates on or after January 1, 2011 are assumed to be the same as for the members included in the December 31, 2009 and 2010 valuations, respectively. la SEGAL � SECTION 2: Valuation Results for the Contra Costa County Employees' Retirement Association The amortization cost for the UAAL for members with membership dates before January 1, 2011 has been expressed as a percentage of total future payroll, including members with membership dates on or after January I, 2011. This has been done in order to continue the open group level percent of payroll amortization methodology for the UAAL associated with members with membership dates before January 1, 2011. It is also consistent with the methodology applied when Safety Tier C was implemented. Member Conli-rbutions Articles 6 and 6.8 of the 1937 Act define the methodology to be used in the calculation of member basic contribution rates for General and Safety members, respectively. The basic contribution rate is determined as that percentage of compensation which if paid annually from a member's first year of membership through the prescribed retirement age would accumulate to the amount necessary to find a prescribed annuity. The annuity is equal to: > 1/120 of one year Final Average Salary per year of service at age 55 for General Tier 1 and Tier 3 Non - enhanced members > 1 /100 of one year Final Average Salary per year of service at age 50 for Safety Tier A Non - enhanced members > 1/120 of one year Final Average Salary per year of service at age 60 for General Tier I and Tier 3 Enhanced members > I /100 of one year Final Average Salary per year of service at age 50 for Safety Tier A Enhanced > 1/100 of three year Final Average Salary per year of service at age 50 for Safety Tier C Enhanced members Member contributions are accumulated at an annual interest rate adopted annually by the Board. The County is now paying 50% of the members' basic contributions on a nonrefimdable basis. For illustration purposes only, the rates shown in Charts 14 and 15 include the 50% employer subvention of members' basic contributions for all employers (except for Safety Districts). Districts pay varying portions, up to 100 %, of the members' basic contributions on a nonrefundable basis. Members also pay 50% 15 '*SEGAL SECTION 2: Valuation Results for the Contra Costa County Employees' Retirement Association of the cost -of- living benefit. For most Safety Tier A employers, Safety members also subvert a portion of the employer rate, currently up to 9% of compensation (depending on their MOU). This is not reflected in Charts 14 and 15. The age specific contribution rates are provided in Appendix A for members with membership dates before January I, 2011 and Appendix B for members with membership dates on or after January 1, 2011. For determining the cost of the basic benefit (i.e. non -COLA component), the cost of this pay element is currently recognized in the valuation as an employer only cost and does not affect member contribution rates. The terminal pay assumptions are only used in establishing cost -of- living member contributions. Cost Sharing A djustinents Starting with the December 31, 2009 Actuarial Valuation, the Board took action to depool CCCERA's assets, liabilities and normal cost by employer when determining employer contribution rates. The Board action included a review of experienceback to December 31, 2002. This did not involve recalculation of any employer rates prior to December 31, 2009. However, it did involve reflecting the separate experience of the employers in each individual cost group back from December 3 I, 2002 through December 31, 2009. The cost groups are detailed on pages 18 and 19. In addition, the Board action called for a discontinuation of certain cost sharing adjustments for both member and employer contribution rates for General Tier I and Safety Tier A. Even under the depooting stricture, there are a few remaining cost sharing arrangements. Here is a summary of the cost sharing arrangements: > Smaller employers (less than 50 active members) will be pooled with the applicable County tier. Safety members from the East Contra Costa Fire Protection District will be pooled with Safety members of file Contra Costa County Fire Protection District. > Due to a statutory requirement, the Superior Court will continue to be pooled with the County regardless of how many members the Court has. > UAAL costs are pooled between Cost Group #I and Cost Group #2 which represent General County and Small Districts for Tiers 1 and 3. UAAL costs are also pooled for Cost Groups #7 and #9 which are Safety County. Tiers A and C. -"�SEGAL 16 SECTION 2: Valuation Results for the Contra Costa County Employees' Retirement Association 01lierAdjustments Other adjustments made in the determination of rates are as follows: > Adjustments are made to some UAAL amounts for the County, the Contra Costa County Fire Protection District (CCCFPD) and the Moraga- Orinda Fire District ( Moraga) to account for Pension Obligation Bonds (POBs) and any other special contributions that they previously made. These adjustments serve to reduce the UAAL contribution rate for these employers. The outstanding balance of these adjustments as of December 31, 2010 is as follows: County,General Moraga General CCCFPD Safety Basic $239,247,742 $421,323 $68,672,752 COL $191,711,619 $244,531 $52,372,916 '�T' SEGAL 17