HomeMy WebLinkAboutBUDGET AND FINANCE AGENDA 10-29-12Jl Central Contra Costa Sanitary District Protecting public health and the environment 5019 Imhoff Place, Martinez, CA 94553 -4392 SPECIAL MEETING OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT BUDGET AND FINANCE COMMITTEE Chair McGill Member Nejedly Monday, October 29, 2012 3:00 p.m. Executive Conference Room 5019 Imhoff Place Martinez, California INFORMATION FOR THE PUBLIC ADDRESSING THE COMMITTEE ON AN ITEM ON THE AGENDA BOARD OF DIRECTORS: JAMES A. NEJEDLY President DAVID R. WILLIAMS President Pro Tem BARBARA D. HOCKETT MICHAEL R. MCGILL MARIO M. MENESINI PHONE: (925) 228 -9500 FAX: (925) 676 -7211 www.centralsan.org Anyone wishing to address the Committee on an item listed on the agenda will be heard when the Committee Chair calls for comments from the audience. The Chair may specify the number of minutes each person will be permitted to speak based on the number of persons wishing to speak and the time available. After the public has commented, the item is closed to further public comment and brought to the Committee for discussion. There is no further comment permitted from the audience unless invited by the Committee. ADDRESSING THE COMMITTEE ON AN ITEM NOT ON THE AGENDA In accordance with state law, the Committee is prohibited from discussing items not calendared on the agenda. You may address the Committee on any items not listed on the agenda, and which are within their jurisdiction, under PUBLIC COMMENTS. Matters brought up which are not on the agenda may be referred to staff for action or calendared on a future agenda. AGENDA REPORTS Supporting materials on Committee agenda items are available for public review at the Reception Desk, 5019 Imhoff Place, Martinez. Reports or information relating to agenda items distributed within 72 hours of the meeting to a majority of the Committee are also available for public inspection at the Reception Desk. During the meeting, information and supporting materials are available in the Conference Room. AMERICANS WITH DISABILITIES ACT In accordance with the Americans With Disabilities Act and state law, it is the policy of the Central Contra Costa Sanitary District to offer its public meetings in a manner that is readily accessible to everyone, including those with disabilities. If you are disabled and require special accommodations to participate, please contact the Secretary of the District at least 48 hours in advance of the meeting at (925) 229 -7303. Budget and Finance Committee October 29, 2012 Page 2 1. Call Meeting to Order 2. Public Comments *3. Status Update on Considerations for Bond Funding Pension Unfunded Actuarial Accrued Liability (UAAL) Staff Recommendation: Receive update and provide input to staff. 4. Risk Management *a. Review Loss Control Report and discuss outstanding claims Staff Recommendation: Review the report, discuss outstanding claims and provide direction if needed. S. Review September 2012 Financial Statements and Investment Reports (Item 4.c. in Board Binder) Staff Recommendation: Review and recommend Board approval. 6. Expenditures a. Review Expenditures (Item 4.b. in Board Binder) Staff Recommendation: Review and recommend Board approval. *b. Review Legal Expenditure Summary Staff Recommendation: Review Legal Expenditure Summary. 7. Reports and Announcements 8. Suggestions for future agenda items 9. Adjournment * Attachment FIELDMAN I ROLAPP ?j & ASSOCIATES • MEMORANDUM To: Ann Farrell, General Manager Thea Vassallo, Finance Director Todd Smithey, Finance Manager Central Contra Costa Sanitary District From: Thomas M. DeMars, Managing Principal Daniel L. Wiles, Principal and General Counsel Danny Jasper, Associate Re: Management of Pension Liabilities and Impact on District Cash Balances and Financing Capacity Date: October _, 2012 Facts The Central Contra Costa Sanitary District (the "District ") provides a defined benefit retirement plan for its employees. The District is a member of the Contra Costa County Employees Retirement Association ( "CCCERA ") and pays annual pension costs to CCCERA consisting of both a Normal Cost, relating to the actuarial cost of future pension benefits allocated to the then current fiscal year ( "Normal Cost "), and an amortization of its unfunded accrued actuarial liability ( "UAAL "). Under the most recent valuation of CCCERA by Segal as of December 31, 2011, the actuarial value of assets allocated to the District was $181,915,145 and the UAAL was valued at $109,168,803.' The asset pool at CCCERA serves as the mechanism to accumulate funds to satisfy the District's current and future pension obligations. A major factor in the District's cost of employee pensions is amount CCCERA earns on funds deposited in the asset pool. Under CCCERA's actuarial assumptions, funds invested with CCCERA earn an assumed rate of 7.75 %, the actuarial rate of return on invested assets is smoothed over a 5 year period, actuarial gains and losses are amortized over an 18 year period and the District's payroll is assumed to grow at 4.25% each year. The five year smoothing means that for any year, the actual earnings rate is included with the rates of the four previous years to determine the actuarial earnings rate — the rate applied to determine the actuarial value of assets.2 That actuarial value is compared with the value of assets had the earnings rate been the assumed 7.75% rate and the resulting gain or loss is amortized over a period of 18 years. The amortization is calculated to result in a level percentage of payroll, assuming that payrolls grow at 4.25% from year to year. Existing UAAL. The existing UAAL is being amortized over an 18 year term under a formula that results in a level percent of payroll (again assuming that payroll grows at 4.25% each year). The formula assumes that assets held by CCCERA grow at 7.75 %. The UAAL is measured against an assumption that the assets of a fully funded plan would have grown at 7.75% each 1The actual growth in the District's payroll has been lower than the 4.25% assumption, leading to an expectation that UAAL will increase again as of the December 31. 2012 valuation. z Note: when return of CCCERA is discussed in the context of impact on cost the reference generally is to actuarial return after the effect of CCCERA's smoothing. 1 FIELDMAN I ROLAPP -= & ASSOCIATES MEMORANDUM year. Consequently, to the extent that assets are not deposited or do not grow, the UAAL would increase by 7.75 %. This increase is offset by the growth in the actuarial value of assets held by CCCERA. During the recent years, the District's UAAL has expanded significantly. There are three major and independent causes for that growth: (i) actuarial gains and losses based on actual market performance of the CCCERA asset pool; (ii) changes in assumptions (for example, the assumed earnings rate on CCCERA assets was reduced, resulting in an actuarial cost); and (iii) depooling in which the actual attributes of the employee population for each member (or group of members) of CCCERA were applied directly and solely to that specific group (for example, with regard to the District, the very high level of terminal pay for retiring employees of the District relative to other participants in CCCERA was applied directly and solely to the costs of the District). The table below indicates the breakdown of the District's UAAL from the Segal valuation of CCCERA as of December 31, 2011: Date Event Amount Years Left 12/31/2007 Amortization Restart $ 33,338,142 11 12/31/2008 Actuarial Loss 3,664,806 15 12/31/2009 Actuarial Loss 10,071,912 16 12/31/2009 Assumption Change 1,993,825 16 12/31/2009 Depooling Implementation 19,945,450 16 12/31/2010 Actuarial Loss 18,167,454 17 12/31/2010 Assumption Change 11,472,679 17 12/31/2011 Actuarial Loss 10,514,535 18 Total UAAL Balance (as of 12/11) $ 109,168,803 Each of these elements of UAAL is charged to the District based on an amortization of the loss or charge over the remaining years. When the amortization of each element is added on a yearly basis, the result is the anticipated total UAAL amortization cost to the District. That cost is estimated below: Fiscal Year UAAL Amortization Fiscal Year IJAAL Amortization 2012 -2013 $ 9,397,107 2021 -2022 $ 13, 667,174 2013 -2014 9,796,484 2022-2023 14, 248, 030 2014 -2015 10, 212, 835 2023 -2024 9,233,703 2015 -2016 10, 646, 881 2024 -2025 9,626,136 2016 -2017 11,099,373 2025 -2026 10,035,247 2017 -2018 11,571,095 2026 -2027 10,461,745 2018 -2019 12,062,866 2027 -2028 10,337,415 2019 -2020 12, 575, 538 2028 -2029 5,845,715 2020 -2021 13,109,999 2029 -2030 1,546,523 $ 185, 473, 866 2 S FIELDMAN I ROLAPP & ASSOCIN ES MEMORANDUM This means that the District's estimated out of pocket cost to satisfy the UAAL as of December 31, 2011, will be $185,473,866 over the remaining 18 years. The existing schedule of payments on the UAAL represents a repayment of the District's liability. If no other actuarial gains or losses are incurred (a highly unlikely scenario), the District's entire UAAL would be completely repaid by FY 29 -30. However, that repayment has an assumed cost rate (comparable to interest) at 7.75 %. The actual cost to the District over time is impacted by a variety of factors with one of the most important being the annual actuarial earnings rates, after application of the smoothing assumption, over the term for repayment of each element of the UAAL amortization. Impact of Earnings or Losses on UAAL. In addition to the existing UAAL amortization, each year, as the asset pool at CCCERA is valued, a new actuarial gain or loss is applied to the District's UAAL.' This gain or loss is determined, in large part, by a comparison of the smoothed rate of return, the actuarial rate, to the assumed rate of return. This difference is applied to develop a percentage of payroll that the District must pay to CCCERA (in addition to and separate from its Normal Cost). In addition to differences in earnings rates, if and when the actual payroll amount varies from the assumed payroll level, this is also factored into the cost (or gain) that is reconciled with the District each year. The gain or loss adds an additional layer on to the UAAL amortization, which can increase the annual UAAL amortization cost (for a loss or a charge) or decrease the UAAL amortization cost (for a gain or a prepayment). With the actuarial gains and losses driven largely by the difference between assumed and actual earnings on invested assets, the earnings history assumes importance. The earnings history of CCCERA over the past 18 years demonstrates the variability of earnings. The table below includes the actual market earnings rate for the calendar year and the actuarial earnings rate based on the 5 year smoothing. Year 1994 Market -1.96% Actuarial 3.16% Year 2003 Market 23.44% Actuarial 2.52% 1995 26.75% 11.28516 2004 12.27% 3.85% 1996 15.09% 13.29% 2005 8.71% 5.74% 1997 20.69% 16.145'o 2006 14.23% 8.63% 1998 14.53% 17.845/6 2007 6.03% 11.63% 1999 15.169/o 17.485/6 2008 - 28.35% 4.73% 2000 0.79% 13.75% 2009 19.68% 0.34% 2001 -4.23% 9.73% 2010 13.35% 1.82% 2002 - 10.28% 3.05% 2011 1.76% 2.78% Note: Red numbers indicate returns below 4.00% CCCERA has calculated its investment returns in the most recent valuation as follows: Market Value Investment Actuarial Value Investment Return Return Five Year Return 1.02% 4.01% Ten Year Return 4.77% 4.41% The amortization period of the District's UAAL is 18 years. Since one of the options for the District is to refinance all or part of the UAAL over a period matching its current amortization, an estimate of CCCERA's returns over that period would be useful, although not definitive. Since CCCERA does not provide such a return, we have developed a simplified estimate by taking a 3 Moreover, the payments or prepayments made by the District are applied to the UAAL. 3 FIELDMAN I ROLAPP & ASSOCIATES basic $100,000 investment as of December 31, Market Value and an Actuarial Value basis. CCCERA's Assumed Rate of Return. t MEMORANDUM 1993 and applying the rates of return on a As a test of our formula, we also applied Over the 19 year period from December 31, 1993 to December 31, 2011 a $100,000 investment with CCCERA would yield an average 7.306% on a market value basis and an average 8.063% on an actuarial value basis. 1993 $100,000.00 $100,000.00 $100,000.00 1994 -1.96% 3.16% $98,040.00 $103,160.00 $107,750.00 1995 26.75% 11.28% $124,265.70 $114,796.45 $116,100.63 1996 15.09% 13.29% $143,017.39 $130,052.90 $125,098.42 1997 20.69% 16.14% $172,607.69 $151,043.43 $134,793.55 1998 14.53% 17.84% $197,687.59 $177,989.58 $145,240.05 1999 15.16% 17.48% $227,657.03 $209,102.16 $156,496.16 2000 0.79% 13.75% $229,455.52 $237,853.71 $168,624.61 2001 -4.23% 9.73% $219,749.55 $260,996.87 $181,693.01 2002 - 10.28% 3.05% $197,159.30 $268,957.28 $195,774.22 2003 23.44% 2.52% $243,373.44 $275,735.00 $210,946.73 2004 12.27% 3.85% $273,235.36 $286,350.80 $227,295.10 2005 8.71% 5.74% $297,034.16 $302,787.34 $244,910.47 2006 14.23% 8.63% $339,302.12 $328,917.88 $263,891.03 2007 6.03% 11.63% $359,762.04 $367,171.03 $284,342.58 2008 - 28.35% 4.73% $257,769.50 $384,538.22 $306,379.13 2009 19.68% 0.34% $308,498.54 $385,845.65 $330,123.52 2010 13.35% 1.82% $349,683.09 $392,868.04 $355,708.09 2011 1.76% 2.78% $355,837.51 $403,789.77 $383,275.46 Avg. Return 7.3065to 8.0635'o 7.750% The variability in returns becomes more evident when the results for the 18 year period are broken into shorter periods of consecutive years. This is illustrated in a series of return calculations assuming a 1993 investment with the average return calculated at the end of each year from 2000 to 2011: 4 a FIELDMAN I ROLAPP & ASSOCIATES MEMORANDUM Return 1993 -2000 12.597% 13.177% Return 1993 -2001 10.342% 12.740% Return 1993 -2002 7.834946 11.620% Return 1993 -2003 9.302% 10.675% Return 1993 -2004 9.568% 10.036% Return 1993 -2005 9.497% 9.672% Return 1993 -2006 9.854% 9.591% Return 1993 -2007 9.576% 9.736% Return 1993 -2008 6.516% 9.395% Return 1993 -2009 7.295% 8.806% Return 1993 -2010 7.642% 8.382% Return 1993 -2011 7.306% 8.063% If the returns are calculated from each of the prior 17 years to the end of 2011, the overall return picture, both on a market and actuarial basis shows more variability. Moreover, the impact of a specific year with poor performance is very high, both on a market and an actuarial basis. Return 1994 -2011 7.878% 8.358% Return 1995 -2011 6.796% 8.178% Return 1996 -2011 6.265% 7.846% Return 1997 -2011 5.303% 7.276% Return 1998 -2011 4.625% 6.504% Return 1999 -2011 3.792% 5.637% Return 2000 -2011 4.069% 4.929% Return 2001 -2011 4.938% 4.460% Return 2002 -2011 6.7819,o 4.618% Return 2003 -2011 4.863% 4.884% Return 2004 -2011 3.846% 5.032% Return 2005 -2011 3.056% 4.915% Return 2006 -2011 0.9569/o 4.187% Return 2007 -2011 - 0.2749/o 2.405% Return 2008 -2011 11.346546 1.642% Return 2009 -2011 7.399% 2.299% Return 2010 -2011 1.760% 2.780% The years noted in red are below a level of 4.15 %, the anticipated cost of a refinancing of UAAL. District Intentions Regarding UAAL. The District's current policy intention is to prefund a portion of the UAAL through annual cash payments. A total of $75 million is planned to be prepayed in the amounts of $10 million in each of the FYs 15 -16 through 20 -21 followed by a $15 million prepayment in FY 21 -22. These prepayments would be made from the District's current and future cash balances and would be reflected in one or both of: (i) the District's rates and (ii) the District's cash balance. The District's current 10 year plan anticipates increases in SSC rates to fund the cash requirements of the District's operations, including the prepayments. 5 FIELDMAN I ROLAPP & ASSOCIATES MEMORANDUM As a local government, the District can refinance its obligations through the public debt markets by the issuance of bonds. The refinance of UAAL is no exception and other governments have refinanced pension obligations through the issuance of pension obligation bonds ( "POBs "). POBs are long term bonds (generally equal to the amortization period of the UAAL) issued on a taxable basis to provide funds to repay the UAAL. This effectively replaces all or part of the UAAL with an obligation to the bondholders. Issue The District has retained Fieldman, Rolapp & Associates to develop a qualitative and quantitative review of the options being considered by the District for repaying or refinancing all or part of the UAAL. The goal of our review is to provide the District's Board and Staff with context for the evaluation of its potential options. The District has three options for dealing with its UAAL, which it can adopt in whole or combination: (i) continue the current amortization for all or part of the existing UAAL; (ii) apply cash prepayments to reduce all or part of the existing UAAL; and (iii) issue POBs to refinance all or part of the existing UAAL. The impact of any combination of options to the District is evaluated primarily by reference to (i) the District's cash position; (ii) the coverage on the District's outstanding debt (including any POB debt); and (iii) the level of Sewer Service Charges ( "SSC ") necessary to maintain both its cash position and debt service coverage commensurate with the District's credit ratings. As described below, we have developed a specific cash flow and bond coverage model (the "Analysis Model ") to compare the different options. With regard to the SSC levels, the District has applied its rate model (the "Rate Model ") with inputs based on the repayment or refinancing option or mix being examined. Discussion Economic, Actuarial and Policy Factors. In developing the retirement costs to be paid by the District, CCCERA applies an actuarial model that considers the demographics of the District's employees. Factors include, but are not limited to, entry age, retirement age, salary increases, terminal pay (the base for calculation of retirement benefits), mortality, inflation, payroll growth, asset mix, real returns on asset classes, correlation between asset classes, market and actuarial return on assets, smoothing periods for returns and amortization periods for liabilities. While many of these factors are deterministic and can be estimated with confidence, other factors such as returns on assets and inflation occur in a more random fashion. The five year smoothing of returns is a reaction to the random nature of returns and serves to reduce volatility in payments required from the District. UAAL, as an outstanding liability of the District, has a legal status similar to the District's other obligations. In fact, in the legal sense as an "obligation imposed by law," a POB is simply a refinancing of an outstanding existing obligation. The three options the District has are the same as it would have with any debt: (i) prepay the debt with cash, (ii) refinance the debt (assuming that more desirable terms are available) or (iii) continue with the current terms. 4 The District has a policy of maintaining Funds Required in the amount of: (i) 32% of the succeeding year's operations and maintenance expenses; plus (ii) 30% of the succeeding year's capital costs: plus (iii) 100% of debt service. (: FIELDMAN I ROLAPP & ASSOC INITS MEMORANDUM Our quantitative analysis is based on the idea that the ultimate preferred option for the District can be any mix of three options specified above. In developing a preferred option, the District must evaluate the cash requirements of prepayment, the cost and the possible gain of refinancing UAAL through a POB and the SSC levels required to implement the preferred option. In addition, the District needs to evaluate its perspective on the likely actuarial returns to be realized by CCCERA on funds invested in the asset pool, the risk entailed in refinancing a portion of the UAAL through POB issuances, and the willingness of the District's stakeholders to absorb the rate increases required by each option. Our initial modeling work reveals that the selection of any meaningful combination of either cash prepayments or the use of POBs will require some SSC increases to maintain the District's cash balances at the Funds Required level. As a part of the development of its 10 Year Plan, the District has applied its Rate Model to develop a set of anticipated future revenues reflecting increases in the SSC rates. Our Analysis Model uses those revenues as an input and determines the impact of: (i) the existing UAAL amortization; (ii) various combinations of annual prepayments of UAAL and (iii) different sizes of POB and related UAAL repayment. The District has not revised its projected rates based on our analysis and would only need to do so as it realizes any specific benefits from either prepayment or POB issuance that cause its actual benefits costs to vary from its projections. The District's Current Policy — Negotiate to Lower the District's Pension Liabilities. The District's current intentions with regard to UAAL have two facets. First, the District intends to work in its ongoing negotiations to reduce the pension liabilities of the District. The primary goal of negotiations is to reduce cost imposed on the District by the Normal Cost for employees. Like many other public bodies, the District is negotiating to have employees accept a greater share of the "employee contribution." The result of those negotiations does not directly affect the District's UAAL, which is entirely the responsibility of the District. However, as pension reform progresses, it is possible that the field and scope of negotiations can broaden to include the actual levels of future retirement benefits for current employees. In that case, successful negotiations could decrease the District's UAAL. The District's Current Policy — Future Prepayment of UAAL. The second District intention is fund prepayments of UAAL on the following schedule: FY Prepayment Amount 2015 -16 $10,000,000 2016 -17 $10,000,000 2017 -18 $10,000,000 2018 -19 $10,000,000 2019 -20 $10,000,000 2020 -21 $10,000,000 2021 -22 $15,000,000 s Both Fieldman and District Staff have prepared a number of analyses which attempt to estimate the impact of differing economic circumstances on the District's UAAL and UAAL amortization. While we believe that each has merit in providing a rough estimation, none of these analyses are based directly on actuarial calculations, leaving them with a potential for significant error in the magnitude of the impact of changing assumptions. 7 FIELDMAN I ROLAPP & ASSOUIJES MEMORANDUM We assume that the prepayment within any fiscal year occurs at the beginning of the fiscal year. CCCERA has indicated that for either a prepayment or the deposit of proceeds of POB the impact on remaining UAAL amortization will be realized immediately.6 Therefore, a deposit made on July 1 serves to reduce the UAAL amortization of that fiscal year and the following 17 fiscal years. Possible POB Issuance. As noted above, the District is considering the issuance of POBs to fund some portion of its UAAL. The proceeds of the POB would be paid to CCCERA and invested in its asset pool as a prepayment of a portion of the District's UAAL. The fundamental rationale behind POB issuance is the replacement of a repayment stream calculated on a 7.75% cost basis — that is the assumed growth if the assets were invested — with a payment stream based on a lower taxable interest rate over a similar term. Like the existing UAAL amortization, the repayment of a POB is calculated to consider a growth in the District's payroll. Under the Internal Revenue Code of 1986 and its regulations, interest on POBs must be includable in gross income for federal income tax. Taxable debt obligations are priced on a spread to a US Treasury Security of a comparable maturity. The District's potential underwriting firm, Prager & Co., LLC, has provided spreads for the individual maturities of a bond issue that result in bond yields from 1.19% to 4.56 %. Based on those rates and the estimated costs of issuing POBs, the all in true interest cost of a POB issue, including all of the costs of issuance, can be estimated at approximately 4.15 %. Impact of a POB on District Costs. The impact of a POB on District costs has two facets: long term and short term. Over the long term, the issuance of POBs is premised on an expectation that the invested funds will earn more than the cost of the debt. In the discussion on CCCERA's past returns we noted the variability in the market and actuarial returns over the past 18 years and the impacts of individual positive and negative years. With an estimated cost of POBs of 4.15% per year, the actual market and actuarial rates of return have been both above and below that number, depending on the time horizon selected. While past rates have tended to be above 4.15 %, there is no assurance that future returns will exceed that level. The fundamental estimated savings from a POB issue are based on the assumption that the pension fund meets its assumption for earnings on invested assets. The savings are calculated as a cash flow difference between the debt service and the cash flow of the UAAL amortization being refinanced. The debt service includes all costs of the financing. Moreover, the net present value is calculated using a discount rate equal to the cost of the POBs. For purposes of analysis, we have agreed with the District to construct 6 scenarios of POB issuance, each expected to occur as of July 1, 2013. If the assumed earnings rate is achieved, the savings to the District from each of these scenarios can be estimated as follows: 6 Based on our discussions with CCCERA, we have assumed that a prepayment of UAAL has an impact on UAAL amortization similar to an actuarial gain as of the same date. The gain is amortized over an 18 year term in a fashion that would have a uniform reduction in the percentage of payroll paid by the District if the payroll grew at a rate of 4.25% each year. H FIELDMAN I ROLAPP & ASSOCIATES MEMORANDUM $30 million $ 11,290,005 $ 7,313,461 $40 million $ 15,476,520 $ 10,037,540 $50 million $ 19,663,516 $ 12,761,551 $75 million $ 30,132,833 $ 19,572,441 Entire UAAL $ 44,438,043 $ 28,879,907 Changing rates of return will alter these savings from the estimates. If the rate of return exceeds the POB cost, as with the assumed 7.75% earnings rate, the District gains from the issuance of POBs. If the rate of return is less than the POB cost, the District has incurred additional cost through the issuance of POBs. We also know that if the ultimate cumulative weighted actuarial earnings rate on CCCERA's assets was 4.15 %, the true interest cost of the POBs including all costs of issuance, the District would realize no net savings. The first section of risk to the District from a POB is the risk that the cumulative weighted actuarial rate over the term of the POB will be less than 7.75% but above 4.15 %. This reduces the anticipated savings but does not result in a cost. We note that the 5 year and 10 year actuarial returns of CCCERA, 5.06% and 4.99% respectively, exceed the anticipated cost of the POBs. However, that past performance does not assure future returns. We can do some very rough approximations of the magnitude of the impact of different overall earnings rates based on the two fixed data points we know. By making a straight line interpolation between the savings at 7.75% return and the non savings at 4.15% return we can estimate the following: If the rate of earnings was a uniform 5.00% over the life of the POB the savings results would decrease to: $30 million $ 2,665,696 $ 1,726,789 $40 million $ 3,654,178 $ 2,369,975 $50 million $ 4,642,775 $ 3,013,144 $75 million $ 7,114,697 $ 4,621,271 Entire UAAL $ 10,492,316 $ 6,818,867 The more serious risk is that the actuarial earnings rate over the 18 year term is less than the all in true interest cost of the POB. This result would mean that the District actually increased its retirement costs by issuing a POB as compared with a no POB strategy over the term.' A further reduction to 3.00% (about the current rate for a 30 year US Treasury security) and well below the 4.15% cost of the POB would result in estimated costs as follows: 7 Estimates of both the magnitude of those increases and the probability of their occurrence are within the professional competence of an actuarial consultant. FIELDMAN I ROLAPP & ASSOCIATES MEMORANDUM • • 1l Irt��7l• 3.' Y. Y. 7�71tFJ- �►[a�J[:��c7iliflLiC� $30 million $ (470,417) $ (304,728) $40 million $ (644,855) $ (418,231) $50 million $ (819,313) $ (531,731) $75 million $ (1,255,535) $ (815,518) Entire UAAL $ (1,851,585) $ (1,203,329) The estimates provided above are very rough and not done through an actuarial calculation. In a fuller evaluation of the additional costs, there are two primary questions. The first is the magnitude or size of additional costs that might be incurred due to impact of future market returns. The second is the probability of such a return given the investment pattern and history of CCCERA. While we provided a linear estimation, actually the factors are both deterministic and random and the relationship between factors is described by complex functions not resolvable in a spreadsheet analysis. Resolution of these issues with a degree of reliability would require a stochastic analysis by an actuarial consultant. With or without such an analysis, it is clear that in the decision to issue POBs, the District assumes additional risk based on the future performance of the financial markets." As we noted above, there are also short term impacts of issuing POBs. From the point of view of the District, regardless of the actual earnings of CCCERA, for the initial years, the annual total cost of the debt service on the POBs and the remaining UAAL amortization will be lower than the original UAAL amortization. Even if the actuarial return fails to match the assumption, the impact is muted for the first few years through the smoothing of returns. Smoothing moderates the volatility of the District's costs related to changes in earnings rates. Thus for the initial years of POB, the District will face lower payments to CCCERA on its UAAL than would have been the case without a POB. The impact can lessen over time as economic circumstances change. Tradeoffs Between Prepayment and Refinancing. The choice between a prepayment and dealing with the UAAL through an extended payment method (through either a POB or continuing the existing amortization) concerns the tradeoff between the focused demand on cash from a prepayment and the more gradual demand on cash through an extended payment. Our initial analysis with the Analysis Model is to compare the District's planned prepayment policy with a series of options of offsetting part or all of those prepayments with a POB issued as of July 1, 2013. It is important to note that the Analysis Model includes a specific calculation of the impact on the District's UAAL amortization resulting from both annual prepayments and the issuance of POBs. The treatment of the impact on UAAL is more specific than the generalized estimate contained in the District's current 10 Year Plan, resulting in some variance in cash balances — primarily in a positive direction for the District. Base Case Analysis. We have developed a Base Case model based on the District's current policy of making prepayments in FYs 15 -16 to 21 -22 ($75 million) and not including any POB 8 We note that in the funding of its pension system through CCCERA, the District already has incurred exposure to the markets in that its long term pension costs varies inversely with the performance of the markets. 10 FIELDMAN I ROLAPP & ASSOCIATES MEMORANDUM issuance. The complete statement of results of that analysis is contained in the spreadsheet attached as "Exhibit 1 — Base Case ". The District's fund balance decreases through FY 14 -15, reaching a low of $39,583,712. With the first prepayment, the fund balances begin to improve markedly, reaching $85,203,681 in FY 21 -22.9 The table below provides a summary of the projected cash balances and debt service coverage rates from the Base Case and implementing the planned SSC increases.10 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019- 2020 2020 -2021 2021 -2022 Beginning Balance $44,138,989 $38,405,967 $39,583.712 $43.593,720 $45,233,855 $53,211,164 $63,68g,738 $65.526,897 $75,562.680 Revenues After O &M and Debi Service 23,986.179 27,652.437 31.067,801 37.854.924 43,546.521 49.521,246 62,606.506 68, 257,205 73.144,987 Draws for CUP - 29.719,200 - 26.474,692 - 27,057.793 - 36,214.789 35,569. 212 39,043,672 - 60,768.347 - 59.221.422 - 63,503,986 Ending Balance $38.405. 967 $39 ,583.712 $43, 593,720 $45,233,955 $53.211.164 $63,689,738 $65,526.897 $75. 562.680 $85,203,681 Debt Service Coverage 5.32 5.99 15.95 11.01 12.43 14.74 1839 19.92 2133 Debt Service Coverage including POB 532 5.99 15.95 11.01 12.43 14.74 18.39 19.92 213:4 The Base Case results in some growth in cash balances and coverage of debt service through the term. Commensurate with increases in SSC rates, revenues increase markedly over the 9 yearterm. The prepayments involved in the Base Case result in a significantly faster repayment of UAAL than the current schedule of UAAL amortization. With no additional UAAL (a relatively unlikely case), by the time the District begins prepayments in FY 15 -16, the UAAL would be projected to be down to $81,883,290. The prepayments through FY 21 -22 would deal with $65 million of that amount and the current amortization would deal with much of the remainder. With no prepayments, the UAAL balance would be estimated to be $27,808,900 by the end of FY 21 -22. Alternate 1 - $30 million of UAAL refinanced. In addition to the Base Case, we developed a series of alternate scenarios that each provide for replacement of part or all of the prepayment with a POB issue. It is important to note that for each alternate scenario, the results assume that the earnings on the funds at CCCERA meet the assumed earnings rate. As noted above, failure to meet the assumption will result in increasing UAAL and UAAL amortization and will decrease the projected cash balances. As the size of the projected POB increases, the impact of the additional losses from market conditions will increase. Alternate 1 is a POB refinancing $30 million of UAAL and the elimination of the first 3 prepayments in FY 15 -16 through 17 -18. The result is a POB issuance in early 2013 for $30 million of the UAAL followed by $45 million of UAAL prepayments in FY 18 -19 through FY 21- 22. The full spreadsheet estimate is contained in "Exhibit B — Alternate 1: $30 Million POB and $45 Million Prepayments." The table below provides a summary of the projected cash balances and debt service coverage rates from Alternative 1. 9 Note that the fund balance estimates differ from the 10 Year Plan as the impact on UAAL amortization from prepayment is greater than the general estimate of 2% contained in the 10 Year Plan. We further note that District staff have told us that the 2% figure is known to understate what they believe is approximately 2.8% of impact from each $10 million prepayment. The cumulative impact on fund balance by FY 20 -21 is approximately $11 million. 10 With regard to the claim of the District's bonds on revenues, we have assumed that prepayments of UAAL have a junior priority and are not part of the general operations and maintenance expenses. 11 FIELDMAN 1 ROLAPP & ASSOCIATES 2013 -2014 2014.2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 Beginning Balance $44.118,989 $38,710,375 $40,221.488 $53,467.186 $63,617,082 Revenues- After O &M and Debt Service 24,290,586 27.985.805 40.303,491 46,364.684 51.100,955 Draws for CIP - 29.719,200 - 26,474,692 - 27,057.793 - 36.214,789 - 35,569.212 Ending Balance $38.710.375 $40,221,488 $53,467,186 $63.617,082 $79,348,825 Debt Service Coverage 5.71 6.39 21.36 13.81 15.03 DeM Service Coverage including POB 4.27 4.74 10.88 8.92 9.61 $79,348,825 47.616,623 - 39,043,672 $87.921,776 MEMORANDUM 2019 -2020 2021 -2021 2021 -2022 $87.921.776 ,$87.787.928 $95,786,734 60.634,499 66.220.118 71.040,316 - 60,768,347 - 58,221.422 -63, 5034986 $87, 787.928 $95,786.734 $103323.064 14.83 18.48 20.01 21.43 9.18 11.28 12.06 12.73 The largest change is the removal of the 3 years of $10 million payments. The POB spreads the cash impact over a number of years, many of them beyond the horizon of the current plan. Since this Alternate analysis does not adjust revenues or SSC rates, the ending cash balance reflects a combination of the projected savings on the POB issue and cash flow savings by refraining from the prepayment of UAAL in the first 3 fiscal years. By FY 14 -15, the balance is about $640 thousand higher than in the Base Case. When the prepayments are removed, the difference between the Base Case and Alternate 1 is more pronounced. The final cash balance in FY 21 -22 is increased from a projected $85,203,681 to a projected $103,323,064. It is important to note that a significant portion of the difference in fund balance is NOT cost savings, but cost deferral. By converting the prepayment of $30 million of UAAL to a debt obligation, much of the cost is deferred to the period from FY 22 -23 through FY 30 -31. While variations in the actuarial earnings rate could put upward pressure on the UAAL amortization cost, the impact would be felt in the years after FY21 -22 since the total cost of a rate equal to the POB rate over the entire 18 year term is projected to be approximately $13 million. The additional revenue bonds issued to refinance the UAAL reduce the overall debt service coverage, but the coverage continues to be far above the level required to maintain the District's ratings. Alternate 2 - $40 million of UAAL refinanced. This alternate increases the POB by another $10 million to repay a total of $40 million and eliminates the prepayment in FY 18 -19, leaving the last 3 intended UAAL prepayments. The full spreadsheet is contained in "Exhibit C - Alternate 2: $40 Million POB and $35 Million Prepayments." A summary of the fund balance performance is below: Beginning Balance Revenues After O &M and Debt Service Draw., for CIP Ending Balance Debt Service Coverage Deht Service Coverage including POB 2013.2014 2014 -2015 2015.2116 2016 -2017 2017 -2018 2018- 21119 2019 -2020 20211.21121 2021 -2022 $44.13&989 $38. 829.348 $40,468,977 $53.855,458 $64,155,834 24,409,559 28.114.321 40,444.274 46. 515,164 51.463,690 - 29.719.200 -26. 474.692 - 27.057.793 - 36114,789 - 35,569,212 S38.829348 $40.468.977 $53,855,458 $64.155.834 $80,050.312 5.84 6.53 2174 14.02 15.25 4,04 4.47 9.55 8.13 8.74 $80,050,312 $97,671,575 $96,969,301 $104.380.397 56,664.934 60.066,074 65.632,518 70,430.838 - 39.043,672 - 60,768.347 - 58121.422 - 63,503,986 $97.671,575 $96,969.301 $104.380,397 $111.307.250 17.54 18.53 20.06 21.49 9.66 10.04 10,72 11.17 The replacement of an additional $10 million of prepayment from FY 18 -19 with additional POB proceeds results in a projected increase in cash balance over Alternate 1. As would be expected, the bulk impact is realized in FY 18 -19 when the prepayment is not made. The cumulative impact of the POB and the change in repayment is approximately $8 million by FY 21 -22. The impact on debt service coverage is minimal from 12.73 to 11.27 times debt service. Both coverage amounts are significantly higher than would be required to maintain the District's current ratings. 12 • = FIELDMAN ' ROLAPP & ASSOCIATES MEMORANDUM Alternate 3 - $50 million of UAAL refinanced. This alternate adds an additional $10 million to the POB and eliminates the prepayment in FY 19 -20. Under this alternate, the POB in 2013 is now funding $50 million of UAAL and the prepayments satisfy $25 million of the UAAL. The full spreadsheet is contained in "Exhibit D - Alternate 3: $50 Million POB and $25 Million Prepayments." A summary of the resulting fund balances is below: 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019- 2020 2020 -2021 2021 -2022 Beginning Balance $44, 138,989 $38,948,379 $40,716.581 $54,238,902 $64,689,928 $80,747312 $98,541,946 $106,902.225 $113,757,896 Revenues After O &M and Debt Service 24.518,590 28,242.894 40,580,114 46,665,814 51,626,596 56,838.306 69,128.626 65,077.093 69,860.010 Draws Ihr CIP - 29.719,200 - 26,474,692 - 27.057,793 - 36.214.789 - 35.569.212 - 39,043,672 - 60,768,347 - 58,221,422 - 63.503.986 Ending Balance $38,948,379 $40.716,581 $54,238,902 $64.689,928 $80,747312 $98,541,946 $106. 902.225 $113,757,896 $120,113.920 Debt Scrvice Coverage 5.97 6.67 22.12 14.24 15.48 17.79 21.25 20.12 21.55 Debt Service Coverage including PDB 3.84 4.23 8.54 7,48 8.03 8.83 1036 9.65 10.13 The replacement of the FY 19 -20 repayment with a higher POB results in a higher fund balance in FY 21 -22 by approximately $8.8 million. Debt service coverage is again reduced marginally, but continues to be within the limits for a AAA rated credit. Alternate 4 - $75 million of UAAL refinanced. This alternate replaces all prepayments with a single POB issue of $75 million in 2013. The full spreadsheet is contained in "Exhibit E - Alternate 4: $75 Million POB." A summary of the resulting fund balances is below: 2013 -2014 2014 -2015 2015.2016 2016 -2017 2017 -2018 2018 -2019 2019- 2020 2020 -2021 2021 -2022 Beginning Balance $44,138,989 $39.248.433 $41338,006 S55.209,866 $66,034.730 $82,491,652 $100,719.696 $109,546,064 $125,775,094 Revenues After O &M and Debt Service 24,828,644 28.564.265 40.929.653 47,039.653 52,026,134 57271,716 69,594.716 74,450.452 82.952,097 Dram, for CIP - 29.719.200 - 26,474,692 - 27.057.793 - 36214.789 - 35,569.212 - 39.043,672 - 60,768,347 - 58,221,422 -63, 503,986 Ending Balance $39,248.433 $41,338,006 $55,209,866 $66,034,730 $82.491,652 $100.719,696 $109,546,064 $125.775,094 $145,223206 Debt Service Coverage 6.30 7.01 23.07 14.78 16.04 18.41 21.89 2325 25.74 Debt Service Coverage including POB 3.45 3.77 6.85 6.10 6.73 732 8.53 8.88 9.60 By eliminating the final prepayments, this Alternate results in very large cash balances in the out years of the projection. As noted above, a large amount of the difference relates to the deferral of UAAL payments as compared with the prepayment policy. The issuance of a $75 million POB puts some minor pressure on Debt Service Coverage on an overall basis, however, the coverage level does not endanger the District's ratings. Alternate 5 - Refinancing of Entire UAAL. This alternate (which we do NOT recommend) would completely refinance the District's UAAL. By issuing the maximum POB, the District would incur the greatest level of volatility and exposure to future market return risk. Moreover, the obligation to bondholders has none of the "flexibility" that obligations to CCCERA might entail. The spreadsheet with the complete projection is contained in "Exhibit F - Alternate 5: Refinancing of Entire UAAL." A summary of the cash balance impact in the 9 year term of the plan is contained below: 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2021) 20211 -2021 2021 -2022 Beginning Balance $44. 138.989 $39.658,739 $42.19L583 $56, 538,965 $67.875,113 $84.887.770 $103,7116.914 $113.167.080 $130. 075,628 Revenues After O &M and Debt Service 25,238.950 29.1107,536 41.405,175 47,550,936 52.581.869 57.862.816 70,228.513 75,129.970 83,680,556 Draws for CIP - 29,719,200 - 26,474,692 - 27.057,793 - 36.214.789 - 35.569,212 - 39.043.672 - 60,768347 - 58,221,422 - 63,503.986 Ending Balance $39,658.739 ,$42.191.583 $56.538,965 $67,875.113 $84.887.770 $103.706,914 $113.167.080 $130.075.628 $150.252.198 Debt Service Coverage 6.75 7.47 2436 15.53 16.81 19.26 22.78 24.17 26.70 Debt Service Coverage including POB 3.07 3.33 5.49 5.26 5.59 6.02 6.96 722 7.76 13 FIELDMAN I ROLAPP & ASSOCIATES MEMORANDUM This alternate provides the District with increased cash flow over the term. The primary difference between the last two alternates is the effect of the estimated POB. This alternate has the largest impact on Debt Service Coverage, but does not place the District's ratings at risk. The full issue would use much of the District's debt capacity for the refinancing of UAAL and limit the District's ability to finance other improvements. Alternate 6 — Refinance $30 million of UAAL and Continue Planned Prepayments. This Alternate continues the current anticipated policy of prepayment and adds the refinancing of most of the current outstanding UAAL through a $30 million POB financing in 2013. It represents the most aggressive stance to dealing with the District's UAAL, without the assumption of the degree of risk entailed in a refinancing of the entire UAAL. The complete spreadsheet for this alternate is contained in Exhibit G — Alternate 6: $30 Million POB and $75 Million Prepayments. 2013 -2014 2014 -2015 2015 -2016 21116.2017 2017 -2018 2018 -2019 2019- 2020 2020 -2021 2021 -2022 Beginning Balance $44,178,989 $:38,7111,775 $40. 221, 488 $4A ,592.078 $46, 622,566 $55,022,718 $65,960,485 $68,291,957 $78,860,859 Revenues After O &M and Debt Service 24.290,586 27.985,805 71,428. 787 38,245,276 43,969.364 49.981,439 0.099.9 19 68.790.324 73.719,641 Draws for CIP - 29,719,200 - 26.474,692 - 27,057.793 - 36.214.789 -35, 569,212 - 39.043.672 - 60,768347 - 58,221,422 -63. 503,986 Ending Balance $38,710,375 .$40.221.488 $44.592,078 $46.622,566 $55,022,718 $65,960,485 $68.291.957 $78.860,859 $89.076.514 Debt Service Coverage 5.71 639 17.09 11.66 17.10 15.49 19.16 20.72 22.18 Debt Service Coverage including 11013 417 4.74 8.70 7,57 838 9.59 11.70 12.49 11.17 This alternate is most comparable with the Base Case. The impact of the POB serves to enhance cash flow during the 9 year period by approximately $3.8 million. Again, this assumes that the CCCERA actuarial assumption for return is met. As with all POB scenarios, the actual cash flow and realization of savings depends on the performance of CCCERA's asset pool. Alternates 5 and 6 involve the refinancing or repayment of all of the District's UAAL to CCCERA. Options that involve this measure of modification of the UAAL should be considered carefully since the District is intending to negotiate for reductions in pension benefits and corresponding UAAL. Such a prepayment and refinancing strategy could either impair the District's negotiation position or result in overpayment of UAAL." The issuance of POBs tends to improve the cash flow of the District and smooth the impact of prepayment of UAAL, particularly in the 9 year time horizon. The cost impact of the POB solutions is felt to a larger degree in the fiscal years after FY 21 -22 as the POB debt service continues to be payable after the impact of the prepayment is felt. Summary of Fund Balance Results. The results of the Base Case and the 6 Alternates demonstrate the relationship between the projected impact of the mix of POBs and prepayments on the District's fund balance position. 11 We note that based on the District's rate of payroll growth alone, CCCERA has informally estimated that the District's UAAL will grow on December 31, 2012 by approximately $12 million. 14 FIELDMAN I ROLAPP & ASSOCIATES MEMORANDUM Fund Balance Projections 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 Base Case: $75 Million of Prepayments $38.405967 $39.583.712 $43.593.720 $45.233.855 $53211.164 $63.688.738 $65.526.897 $75.562680 $85.03.681 Alternate 1: $30 Million POB and $45 Million Prepayments $38.710.375 $40.221.488 $53.467.186 $63.617.082 $79.348.825 $87921.776 $87.787.928 $95.786.734 $103.323.064 Alternate 2: $40 Million POB and $35 Million Prepayments $38.829.348 $40.468977 $53.855.458 $64.155.834 $80.050.312 $97.671.575 $96969.301 $104.380.397 $111.307.250 Alternate 3: $50 Million POB and $25 Million Prepayments $38948.379 $40.716.581 $54.238902 $64.689928 $80.747.312 $98.541.946 $106902225 $113.757.896 $120.113920 Alternate 4: $75 Million POB $39.248.433 $41.338.006 $55.209.866 $66.034.730 $82491.652 $100.719.696 $109.546.064 $125.775.094 $145.223206 Alternate 5: Refinance Entire UAAL $39.658.739 $42191.583 $56.538965 $67.875.113 $84.887.770 $103.706914 $113.167.080 $130.075.628 $150.252198 Alternate 6: $30 Million POB and $75 Million Prepayments $38.710.375 $40221.488 $44.592.078 $46.622.566 $55.022.718 $65960.485 $68291.957 $78.860.859 $89.076.514 The Base Case results in healthy fund balances (estimates are about $11 million higher than District estimates). The substitution of prepayments with POBs increases cash flow during the 9 year period. However, we note that the substitution is more in the line of a deferral of payment rather than a reduction. Ultimately, the District will pay additional debt service in the later fiscal years after FY 21 -22. Impact on Rates. None of the Alternate analyses above include modification of the SSC rates in response to the increase in cash balances. It is clear that part of the value of a POB as compared to a prepayment could be to allow the District to moderate the increases in SSC rates through FY 21 -22. However, it is important to note that the longer run impact of the POB will be less dramatic. In the period after FY 21 -22, the POB would require additional funds to sustain the increasing debt service payments on the POB. Under the prepayment scenario, the UAAL that is prepaid does not continue to add to future costs. It would require significant reductions in the actuarial earnings rate for the POB debt service to be equal to or greater than the UAAL amortization that it displaces. The choice of the use of a POB over a prepayment is a policy decision. A large determinant is the ability of the District to absorb the level of SSC increases proposed. The use of a POB could allow a deferral of some of the expense. Policy (Suitability) Factors in Issuing POBs. There is no single best answer for all entities — the optimal choice depends on the willingness of the Board to assume the risks involved, the expectations of the Board with regard to future market returns, the flexibility of the District's cash flow, and the willingness of the District's customers to absorb rate increases. As noted above, the long term value of the POB and the long term risk revolves around future market performance and its impact on the actuarial value of the assets held by CCCERA. The initial question is whether the Board believes that assuming these risks is prudent and consistent with the District operations. As context, we provide two notes: first, some of this risk is already inherent in the pension funding structure through CCCERA — the District assumes the risk of the asset pool's performance; second, the Board has adopted a Moderate investment allocation with regard to its GASB 45 OPEB obligations. The Board should consider the issuance of POBs and the amount of POBs that might be issued are consistent with its outlook on investing. In addition, the obligation to CCCERA, while an obligation of the District, is not a bonded indebtedness, but a "softer" obligation not subjecting the District to legal remedies if left unpaid. Moreover, once paid to CCCERA, amounts will not be refunded even if pension liabilities decrease dramatically through negotiation or economic changes. The most direct guidance on that risk comes from the Government Finance Officers Association in their Advisory — 15 FIELDMAN I ROLAPP & ASSOCIATES MEMORANDUM Evaluating the Use of Pension Obligation Bonds which states "governments issuing pension obligation bonds must be aware of the risks involved with these instruments and have the ability to manage these risks." While it is clear that the use of a POB would provide short term cash flow relief and, depending on the market returns, achieve long term cost reductions, it is also clear that volatile market conditions could impose additional costs on the District. To the extent that the District experiences additional costs, they are likely to be realized in the later years — after FY 21 -22. The magnitude of those costs are highly dependent on random factors. A second question involves the impact of using bonded indebtedness to refinance UAAL. With regard to the District's overall debt service coverage and debt capacity, the amounts of POBs contemplated impose a relatively small burden on the District's debt capacity. The coverage of debt service even under a complete refinancing of the District's UAAL would continue to be in the range of 3.0 times debt service in the initial year. However, by using bonded indebtedness, the District would lose the potential flexibility it has with regard to retirement costs and with regard to the potential financing of its capital improvements. The obligation would be fixed in amount and owed to disinterested third parties. The Board must also understand that even a refinancing of the entire UAAL at present would not eliminate the reappearance of unfunded liabilities. As noted above, the UAAL is determined by a set of factors. Moreover, since the District's payroll does not tend to grow at 4.25 %, the District tends to incur additional UAAL each year (although that could be offset by investment gains in more favorable long term market conditions). Recommendation We believe that the use of a POB for a portion of the District's UAAL can be a prudent strategy. It provides a short term cash flow benefit and likely would allow the District to postpone required increases in SSC rates. Under a conservative approach, the District could decide to apply cash flow savings from a POB to prepay some of the remaining unpaid UAAL. The actual decision to use a POB entails the assumption of a degree of equity market risk and is founded on an expectation that the equity markets will outperform the fixed income markets over the long run. The suitability of a POB issuance depends on the risk tolerance of the Board and the level of return the Board might anticipate on CCCERA's asset pool, particularly the actuarial return. The Board must weigh whether the issuance of a POB involves a type of risk that is consistent with the Board's perspective on general market risks, including how it handles market risks in other contexts, such as with its OPEB trust. We do believe that there is a direct and inverse relationship between the size of a possible POB and the amount of UAAL prepaid by the District. We would not recommend that the District implement a UAAL strategy that results in a payment of more than the current and reasonably projected UAAL level. Nor would we recommend a strategy that prepays all of the District's UAAL through a debt offering. In our experience, the level of volatility encompassed in that strategy is usually beyond the risk tolerance of government entities. s FIELDMAN I ROLAPP & ASSOCIATES MEMORANDUM The Alternates discussed above demonstrate that a combination of prepayments and POBs can reduce the cash requirements of the District over the next nine years as compared with a strategy based solely on prepayments. However, we note that the POB structure would continue to require debt service payments over the 18 year term that are not required under the prepayment structure. 17 Exhibit A - Base Case Spreadsheet FIELDMAN I a P Central Contra Costa Sanitary District Actual and Projected Results including Debt Issuance Analysis Project ed 3. 2011-2012 2012 -2013 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 Operating Revenues (n Sewer Service Charges $49,094,000 $56,436,099 $60,338,185 $61,956,252 $71,878,124 $73,578,674 $74,616,991 $78,069,126 $79,836,877 $81,273,510 $87,672,180 Service Charges City ofConcord $9,960,554 $10,920,955 $11,898,945 $12,475,141 $14,377,813 $14,810,281 $15,294,459 $16,675,681 $17,251,253 $17,882,458 $19,157,787 Permrt/Inspection/RightofWay fees $939,000 $927,000 $954,810 $983,454 $1,012,958 $1,043,347 $1,074,647 $1,106,886 $1,140,093 $1,174,296 $1,209,525 Lease Rental Income $731,000 $752,930 $775,518 $798,783 $822,747 $847,429 $872,852 $899,038 $926,009 $953,789 $982,403 Homehold Hazardous Waster Reimbursement $800,000 $824,000 $848,720 $874,182 $900,407 $927,419 $955,242 $983,899 $1,013,416 $1,043,819 $1,075,133 Storm water/Pollution Prevention Pretieatinent $234,000 $241,020 $248,251 $255,698 $263,369 $271,270 $279,408 $287,790 $296,424 $305,317 $314,476 Interest Income $115,000 $55,016 $80,180 $139,145 $188,811 $245,471 $303,355 $359,285 $426,327 $568,982 $574,614 Recycled Water Income $300,000 $257,500 $265,225 $273,182 $281,377 $289,819 $298,513 $307,468 $316,693 $326,193 $335,979 Miscellaneous Income $15,000 $15,450 $15,914 $16,391 $16,883 $17,389 $17,911 $18,448 $19,002 $19,572 $20,159 Total $62,188,554 $70,429,970 $75,425,747 $77,772,228 $89,742,488 $92,031,099 $93,713,379 $98,707,623 $101,226,093 $103,547,936 $111,342,256 M ainteuance and Operation Costs 'a) Salary & Wages $23,803,234 $24 ,671,523 $25,373,243 $26,146,226 $26,965,434 $27,740,143 $28,650,245 $29,598,282 $30,617,835 $31,689,460 $32,798,591 Capilalized Admen Overhead ($3,015,088) ($3,122,291) ($3,434,521) ($3,537,556) ($3,643,683) ($3,752,993) ($3,865,583) ($3,981,551) ($4,100,997) ($4,224,027) ($4,350,748) Directors Fees& Expenses $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 Chemicals $1,546,000 $1,623,300 $1,704,465 $1,789,688 $1,879,173 $1,973,131 $2,071,788 $2,175,377 $2,284,146 $2,398,353 $2,518,271 Utilities $4,451,485 $4,672,209 $5,503,914 $5,777,147 $6,063,983 $6,365,100 $6,681,210 $9,123,713 $9,577,623 $10,054,161 $10,554,455 Repairs & Maintenance $3,504,761 $3,867,404 $3,983,426 $4,102,929 $4,226,017 $4,352,797 $4,483,381 $4,617,882 $4,756,419 $4,899,111 $5,046,085 Hauling & Disposal $1,023,250 $1,061,448 $1,101,166 $1,142,470 $1,185,426 $1,230,105 $1,276,580 $1,324,928 $1,375,229 $1,427,567 $1,482,029 Professional& Legal S ervices $587,660 $605,290 $623,448 $642,152 $661,417 $681,259 $701,697 $722,748 $744,430 $766,763 $789,766 Outside S ervices $3,001,950 $3,092,009 $3,184,769 $3,280,312 $3,378,721 $3,480,083 $3,584,485 $3,692,020 $3,802,780 $3,916,864 $4,034,370 Self- 1-.e Expense $850,000 $850,000 $850,000 $900,000 $900,000 $950,000 $950,000 $950,000 $1,000,000 $1,000,000 $1,000,000 Materials & Supplies $1,831,819 $1,886,774 $1,943,377 $2,001,678 $2,061,728 $2,123,580 $2,187,288 $2,252,906 $2,320,494 $2,390,108 $2,461,812 Other Expense $1,772,831 $2,212,266 $1,892,384 $2,335,405 $2,019,218 $2,466,044 $2,153,775 $2,604,639 $2,296,528 $2,751,674 $2,447,974 Retaement- Norrml Cost' $6,194,330 $4,507,825 $6,931,828 $7,702,284 $7,866,965 $7,945,206 $8,098,301 $8,257,391 $8,444,678 $8,645,924 $8,850,206 Retuemert -UAAL* $3,905,670 $9,397,107 $9,796,484 $10,212,835 $10,646,881 $11,099,373 $11,571,095 $12,062,866 $12,575,538 $13,109,999 $13,667,174 Reduchonm UAAL Armrt from all payments ($724,892) ($1,480,592) ($2,268,409) ($3,089,708) ($3,945,912) ($4,838,505) ($6,131,478) Vacancy Factor of4% ($1,172,394) ($1,302,157) ($1,368,233) ($1,811,531) ($1,851,266) ($1,896,316) ($1,942,483) ($1,992,250) ($2,041,167) ($2,300,568) Addtional Conlrbution to CCCERA UAAL $10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 $15,000,000 Other Benefits $15,125,200 $15,404,907 $15,825,619 $16,290,702 $16,774,431 $17,237,081 $17,738,504 $18,241,812 $18,786,026 $19,273,253 $19,996,824 Total $64,773,102 $69,747,376 $74,167,446 $77,608,038 $88,639,286 $90,749,051 $92,308,042 $96,800,823 $98,732,567 $101,409,538 $108,054,762 Operating Income ($2,584,548) $682,594 $1,258,302 $164,189 $1,103,202 $1,282,049 $1,405,337 $1,906,799 $2,493,526 $2,138,398 $3,287,495 Non Operating Revenue 131 Sewer Service Charge $6,534,000 $4,429,578 $7,088,912 $12,093,065 $9,193,714 $14,344,466 $20,272,653 $23,902,221 $29,331,374 $35,206,844 $36,235,478 Property Tax Revenue $12,000,000 $13,061,000 $12,000,000 $12,000,000 $12,120,000 $12,241,200 $12,486,024 $12,860,605 $13,246,423 $13,643,816 $14,053,130 Capacity Fee Revenue $4,372,000 $4,416,800 $4,463,200 $4,604,800 $5,949,000 $6,069,000 $6,177,000 $6,320,000 $6,508,000 $6,748,000 $6,900,000 Pump Zone Revenue $565,312 $637,200 $565,920 $564,120 $714,840 $716,280 $740,160 $530,250 $147,700 $144,600 $140,000 Concord CapilalRevenue $3,253,383 $3,832,553 $3,147,642 $2,637,665 $2,753,611 $5,411,923 $4,489,593 $5,383,209 $11,677,636 $10,670,281 $12,395,625 Bond Reserve Interest $21,336 $40,004 $53,339 $80,009 $72,398 $90,498 $108,597 $126,697 $144,796 $180,995 $180,995 AOOther $1,040,969 $936,877 $960,863 $1,054,588 $1,239,036 $1,481,508 $1,677,158 $2,094,465 $2,658,051 $3,132,271 $3,549,265 Total Non Operating Revenues $27,787,000 $27,354,012 $28,279,876 $33,034,247 $32,042,599 $40,354,875 $45,951,184 $51,217,447 $63,713,980 $69,726,807 $73,454,493 Net Revenues before Debt Service $25,202,452 $28,036,606 $29,538,178 $33,198,437 $33,145,801 $41,636,924 $47,356,521 $53,124,246 $66,207,506 $71,865,205 $76,741,987 DS from 10 year plan(Net Debt Service) $5,541,000 $5,567,000 $5,552,000 $5,546,000 $2,078,000 $3,782,000 $3,810,000 $3,603,000 $3,601,000 $3,608,000 $3,597,000 Debt Service Coverage 4.47x 497x 5.32x 599x 1595x 11A1x 12.43x 14.74x 18.39x 19.92x 21.33x POB Debt Service - - - - - - - - - - - DSCoverageincludingPOBDebtService 5.32x 599x 1595x ILOlx 12.43x 14.74x 18.39x 1992x 21.33x 21 -22 2011 -2012 2012 -2013 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 Cash and Investments Beginning Balance( °) $61,999,931 $54 ,012,383 $44,138,989 $38,405,967 $39,583,712 $43,593,720 $45,233,855 $53,211,164 $63,688,738 $65,526,897 $75,562,680 Net Revenues After Debt Service $19,661,452 $22, 469, 606 $23, 986,178 $27, 652, 437 $31, 067, 801 $37 ,854,924 $43,546,521 $49,521,246 $62,606,506 $68,257,205 $73,144,987 Draws for CIP 131 ($27,649,000) ($32,343,000) ($29,719,200) ($26,474,692) ($27,057,793) ($36,214,789) ($35,569,212) ($39,043,672) ($60,768,347) ($58,221,422) ($63,503,986) Results Ending Balance $54,012,383 $44 ,138,989 $38,405,967 $39,583,712 $43,593,720 $45,233,855 $53,211,164 $63,688,738 $65,526,897 $75,562,680 $85,203,681 Exhibit B - Alternate 1: $30 Million POB and $45 Million Prepayments 18 FIELDMliN I ROLAPaP Central Contra Costa Sanitary District Actual and Projected Results including Debt Issuance Analysis 2011 -2012 2012 -2013 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 Operating Revenues rrt Sewer Service Charges $49,094,000 $56,436,099 $60,338,185 $61,956,252 $71,878,124 $73,578,674 $74,616,991 $78,069,126 $79,836,877 $81,273,510 $87,672,180 Service Charges City of Concord $9,960,554 $10,920,955 $11,898,945 $12,475,141 $14,377,813 $14,810,281 $15,294,459 $16,675,681 $17,251253 $17,882,458 $19,157,787 Penmit,7nspection/ Right ofWayfees $939,000 $927,000 $954,810 $983,454 $1,012,958 $1,043,347 $1,074,647 $1,106,886 $1,140,093 $1,174,296 $1,209,525 Lease Rental Income $731,000 $752,930 $775,518 $798,783 $822,747 $847,429 $872,852 $899,038 $926,009 $953,789 $982,403 Household Hazardous Waster Reimbursem ®t $800,000 $824,000 $848,720 $874,182 $900,407 $927,419 $955,242 $983,899 $1,013,416 $1,043,819 $1,075,133 Storm water/Pollution PreventionTretreahneot $234,000 $241,020 $248,251 $255,698 $263,369 $271,270 $279,408 $287,790 $296,424 $305,317 $314,476 Iuterost Income $115,000 $55,016 $80,180 $139,145 $188,811 $245,471 $303,355 $359285 $426,327 $568,982 $574,614 Recycled Water Income $300,000 $257,500 $265,225 $273,182 $281,377 $289,819 $298,513 $307,468 $316,693 $326,193 $335,979 Mscelaneous Income $15,000 $15,450 $15,914 $16,391 $16,883 $17,389 $17,911 $18,448 $19,002 $19,572 $20,159 Total $62,188,554 $70,429,970 $75,425,747 $77,772,228 $89,742,488 $92,031,099 $93,713,379 $98,707,623 $101,226,093 $103,547,936 $111,342,256 Maintemace and Operation Costs (z) $1,870,268 $1,933,731 $2,002,869 $2,073,546 $2,145,771 $2,217,587 $2,298,273 $2,377,109 $2,459,259 Salary& Wages $23,803,234 $24,671,523 $25,373,243 $26,146,226 $26,965,434 $27,740,143 $28,650,245 $29,598282 $30,617,835 $31,689,460 $32,798,591 Capitalized Admin Overhead ($3,015,088) ($3,122,291) ($3,434,521) ($3,537,556) ($3,643,683) ($3,752,993) ($3,865,583) ($3,981,551) ($4,100,997) ($4,224,027) ($4,350,748) Directors, Fees & Expenses $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 Chemicals $1,546,000 $1,623,300 $1,704,465 $1,789,688 $1,879,173 $1,973,131 $2,071,788 $2,175,377 $2,284,146 $2,398,353 $2,518,271 Utilities $4,451,485 $4,672209 $5,503,914 $5,777,147 $6,063,983 $6,365,100 $6,681,210 $9,123,713 $9,577,623 $10,054,161 $10,554,455 Repairs & Maintenance $3,504,761 $3,867,404 $3,983,426 $4,102,929 $4226,017 $4,352,797 $4,483,381 $4,617,882 $4,756,419 $4,899,111 $5,046,085 Hauling & Disposal $1,023250 $1,061,448 $1,101,166 $1,142,470 $1,185,426 $1230,105 $1,276,580 $1,324,928 $1,375229 $1,427,567 $1,482,029 Professional &Legal Services $587,660 $605290 $623,448 $642,152 $661,417 $681,259 $701,697 $722,748 $744,430 $766,763 $789,766 Outside Services $3,001,950 $3,092,009 $3,184,769 $3280,312 $3,378,721 $3,480,083 $3,584,485 $3,692,020 $3,802,780 $3,916,864 $4,034,370 Self- Insurance Expense $850,000 $850,000 $850,000 $900,000 $900,000 $950,000 $950,000 $950,000 $1,000,000 $1,000,000 $1,000,000 Materials & Supplies $1,831,819 $1,886,774 $1,943,377 $2,001,678 $2,061,728 $2,123,580 $2,187,288 $2,252,906 $2,320,494 $2,390,108 $2,461,812 Other Expense $1.772.831 $2,212,266 $1,892,384 $2,335,405 $2,019,218 $2,466,044 $2,153,775 $2,604,639 $2,296,528 $2,751,674 $2,447,974 Rethernent- Normal Cost' $6,194,330 $4,507,825 $6,931,828 $7,702,284 $7,866,965 $7,945,206 $8,098,301 $8,257,391 $8,444,678 $8,645,924 $8,850,206 Rethernent -UAAL' $3,905,670 $9,397,107 $9,796,484 $10212,835 $10,646,881 $11,099,373 $11,571,095 $12,062,866 $12,575,538 $13,109,999 $13,667,174 Reduction in UAAL Amort from a0 payments ($2,174,675) ($2,267,099) ($2,363,451) ($2,463,898) ($2,568,614) ($3,402,672) ($4,272,178) ($5,178,637) ($6,486,066) Vacancy Factor of4% ($1,172,394) ($1,302,157) ($1,368,233) ($1,411,531) ($1,451,266) ($1,496,316) ($1,942,483) ($1,992,250) ($2,041,167) ($2,300,568) Additional Conhnbuton to CCCERAUAAL $10,000,000 $10,000,000 $10,000,000 $15,000,000 Other Benefds $15,125,200 $15,404,907 $15,825,619 $16,290,702 $16,774,431 $17,237,081 $17,738,504 $18,241,812 $18,786,026 $19,273,253 $19,996,824 Total $64,773,102 $69,747,376 $71,992,771 $75,340,939 $77,400,727 $80,165,745 $82,407,837 $96,487,859 $98,406,301 $101,069,406 $107,700,174 Operating Income ($2,584,548) $682,594 $3,432,977 $2,431,288 $121341,761 $11,865,355 $11,305,542 $2,219,763 $2,819,792 $2,478,530 $3,642,083 Son Operating Revenue `9 $1,870,268 $1,933,731 $2,002,869 $2,073,546 $2,145,771 $2,217,587 $2,298,273 $2,377,109 $2,459,259 Sewer Service Cbarge $6,534,000 $4,429,578 $7,088,912 $12,093,065 $9,193,714 $14,344,466 $20,272,653 $23,902221 $29,331,374 $35,206,844 $36,235,478 Property Tax Revenue $12,000,000 $13,061,000 $12,000,000 $12,000,000 $12,120,000 $12241,200 $12,486,024 $12,860,605 $13,246,423 $13,643,816 $14,053,130 Capacity Fee Revenue $4,372,000 $4,416,800 $4,463,200 $4,604,800 $5,949,000 $6,069,000 $6,177,000 $6,320,000 $6,508,000 $6,748,000 $6,900,000 Pump Zone Revenue $565,312 $637200 $565,920 $564,120 $714,840 $716,280 $740,160 $530250 $147,700 $144,600 $140,000 Concord Capital Revenue $3,253,383 $3,832,553 $3,147,642 $2,637,665 $2,753,611 $5,411,923 $4,489,593 $5,383209 $11,677,636 $10,670281 $12,395,625 Bond Reserve Interest $21,336 $40,004 $53,339 $80,009 $72,398 $90,498 $108,597 $126,697 $144,796 $180,995 $180,995 All Other $1,040,969 $936,877 $960,863 $1,054,588 $1239,036 $1,481,508 $1,677,158 $2,094,465 $2,658,051 $3,132,271 $3,549,265 Total Non Operating Reveaues $27,787,000 $27,354,012 $28279,876 $33,034,247 $32,042,599 $40,354,875 $45,951,184 $51,217,447 $63,713,980 $69,726,807 $73,454,493 Net Reveaues before Debt Service $25,202,452 $28,036,606 $31,712,853 $35,465,536 $44,384,360 $52220,230 $57,256,726 $53,437,210 $66,533,772 $72,205,337 $77,096,575 DS from 10 year plau(Net Debt Service) $5,541,000 $5,567,000 $5,552,000 $5,546,000 $2,078,000 $3,782,000 $3,810,000 $3,603,000 $3,601,000 $3,608,000 $3,597,000 Debt Service Coverage 4A7x 4971 5.711 6.391 21.361 13.811 15.03x 14.831 18A8x 20.011 21.431 PUB Debt Service $1,870,268 $1,933,731 $2,002,869 $2,073,546 $2,145,771 $2,217,587 $2,298,273 $2,377,109 $2,459,259 DS Coverage including POB Debt Service 4.271 4.741 10.881 8.921 9.61x 9.181 11.28x 12.061 12.731 21 -22 2011 -2012 2012 -2013 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 Cash and Investmeats Beginning Balance rot $61,999,931 $54,012,383 $44,138,989 $38,710,375 $40,221,488 $53,467,186 $63,617,082 $79,348,825 $87,921,776 $87,787,928 $95,786,734 Net Revenues After O &M and Debt Service $19,661,452 $22,469,606 $24,290,586 $27 ,985,805 $401303,491 $461364,684 $51,300,955 $47,616,623 $60,634,499 $66,220,228 $71,040,316 Draws for CD' (5' ($27,649,000) ($32,343,000) ($29,719,200) ($26,474,692) ($27,057,793) ($36,214,789) ($35,569,212) ($39,043,672) ($60768,347) ($58,221,422) ($63,503,986) Ending Balance $54,012,383 $44,138,989 $38,710,375 $40221,488 $53,467,186 $63,617,082 $79,348,825 $87,921,776 $87,787,928 $95,786,734 $103,323,064 Exhibit C — Alternate 2: $40 Million POB and $35 Million Prepayments 20 FIELDMliN I ROLAPaP Central Contra Costa Sanitary District Actual and Projected Results including Debt Issuance Analysis 2011 -2012 2012 -2013 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 Operating Revenues rrt Sewer Service Charges $49,094,000 $56,436,099 $60,338,185 $61,956,252 $71,878,124 $73,578,674 $74,616,991 $78,069,126 $79,836,877 $81,273,510 $87,672,180 Service Charges City of Concord $9,960,554 $10,920,955 $11,898,945 $12,475,141 $14,377,813 $14,810,281 $15,294,459 $16,675,681 $17,251253 $17,882,458 $19,157,787 Penmit,7nspection/ Right ofWayfees $939,000 $927,000 $954,810 $983,454 $1,012,958 $1,043,347 $1,074,647 $1,106,886 $1,140,093 $1,174,296 $1,209,525 Lease Rental Income $731,000 $752,930 $775,518 $798,783 $822,747 $847,429 $872,852 $899,038 $926,009 $953,789 $982,403 Household Hazardous Waster Reimbursem ®t $800,000 $824,000 $848,720 $874,182 $900,407 $927,419 $955,242 $983,899 $1,013,416 $1,043,819 $1,075,133 Storm water/Pollution PreventionTretreahneot $234,000 $241,020 $248,251 $255,698 $263,369 $271,270 $279,408 $287,790 $296,424 $305,317 $314,476 Iuterost Income $115,000 $55,016 $80,180 $139,145 $188,811 $245,471 $303,355 $359285 $426,327 $568,982 $574,614 Recycled Water Income $300,000 $257,500 $265,225 $273,182 $281,377 $289,819 $298,513 $307,468 $316,693 $326,193 $335,979 Mscelaneous Income $15,000 $15,450 $15,914 $16,391 $16,883 $17,389 $17,911 $18,448 $19,002 $19,572 $20,159 Total $62,188,554 $70,429,970 $75,425,747 $77,772,228 $89,742,488 $92,031,099 $93,713,379 $98,707,623 $101,226,093 $103,547,936 $111,342,256 Maintemace and Operation Costs (z) $2,476,186 $2,560,914 $2,649,902 $2,744,364 $2,839,239 $2,936,976 $3,041,525 $3,147,077 $3,258,741 Salary& Wages $23,803,234 $24,671,523 $25,373,243 $26,146,226 $26,965,434 $27,740,143 $28,650,245 $29,598282 $30,617,835 $31,689,460 $32,798,591 Capitalized Admin Overhead ($3,015,088) ($3,122,291) ($3,434,521) ($3,537,556) ($3,643,683) ($3,752,993) ($3,865,583) ($3,981,551) ($4,100,997) ($4,224,027) ($4,350,748) Directors, Fees & Expenses $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 Chemicals $1,546,000 $1,623,300 $1,704,465 $1,789,688 $1,879,173 $1,973,131 $2,071,788 $2,175,377 $2,284,146 $2,398,353 $2,518,271 Utilities $4,451,485 $4,672209 $5,503,914 $5,777,147 $6,063,983 $6,365,100 $6,681,210 $9,123,713 $9,577,623 $10,054,161 $10,554,455 Repairs & Maintenance $3,504,761 $3,867,404 $3,983,426 $4,102,929 $4226,017 $4,352,797 $4,483,381 $4,617,882 $4,756,419 $4,899,111 $5,046,085 Hauling & Disposal $1,023250 $1,061,448 $1,101,166 $1,142,470 $1,185,426 $1230,105 $1,276,580 $1,324,928 $1,375229 $1,427,567 $1,482,029 Professional &Legal Services $587,660 $605290 $623,448 $642,152 $661,417 $681,259 $701,697 $722,748 $744,430 $766,763 $789,766 Outside Services $3,001,950 $3,092,009 $3,184,769 $3280,312 $3,378,721 $3,480,083 $3,584,485 $3,692,020 $3,802,780 $3,916,864 $4,034,370 Self- Insurance Expense $850,000 $850,000 $850,000 $900,000 $900,000 $950,000 $950,000 $950,000 $1,000,000 $1,000,000 $1,000,000 Materials & Supplies $1,831,819 $1,886,774 $1,943,377 $2,001,678 $2,061,728 $2,123,580 $2,187,288 $2,252,906 $2,320,494 $2,390,108 $2,461,812 Other Expense $1.772.831 $2,212,266 $1,892,384 $2,335,405 $2,019,218 $2,466,044 $2,153,775 $2,604,639 $2,296,528 $2,751,674 $2,447,974 Rethernent- Normal Cost' $6,194,330 $4,507,825 $6,931,828 $7,702,284 $7,866,965 $7,945,206 $8,098,301 $8,257,391 $8,444,678 $8,645,924 $8,850,206 Rethernent -UAAL' $3,905,670 $9,397,107 $9,796,484 $10212,835 $10,646,881 $11,099,373 $11,571,095 $12,062,866 $12,575,538 $13,109,999 $13,667,174 Reduction in UAAL Amort from a0 payments ($2,899,566) ($3,022,798) ($3,151,267) ($3,285,196) ($3,424,817) ($3,570,372) ($4,447,005) ($5,360,895) ($6,676,070) Vacancy Factor of4% ($1,172,394) ($1,302,157) ($1,368,233) ($1,411,531) ($1,451,266) ($1,496,316) ($1,542,483) ($1,992,250) ($2,041,167) ($2,300,568) Additional Conhnbuton to CCCERAUAAL $10,000,000 $10,000,000 $15,000,000 Other Benefds $15,125,200 $15,404,907 $15,825,619 $16,290,702 $16,774,431 $17,237,081 $17,738,504 $18,241,812 $18,786,026 $19,273,253 $19,996,824 Total $64,773,102 $69,747,376 $71267,880 $74,585,240 $76,612,911 $79,344,447 $81,551,634 $86,720,159 $98,231,474 $100,887,148 $107,510,170 Operating Income ($2,584,548) $682,594 $4,157,868 $3,186,987 $13,129,577 $12,686,653 $12,161,745 $11,987,463 $2,994,619 $2,660,788 $3,832,087 Son Operating Revenue `9 $2,476,186 $2,560,914 $2,649,902 $2,744,364 $2,839,239 $2,936,976 $3,041,525 $3,147,077 $3,258,741 Sewer Service Cbarge $6,534,000 $4,429,578 $7,088,912 $12,093,065 $9,193,714 $14,344,466 $20,272,653 $23,902221 $29,331,374 $35,206,844 $36,235,478 Property Tax Revenue $12,000,000 $13,061,000 $12,000,000 $12,000,000 $12,120,000 $12241,200 $12,486,024 $12,860,605 $13,246,423 $13,643,816 $14,053,130 Capacity Fee Revenue $4,372,000 $4,416,800 $4,463,200 $4,604,800 $5,949,000 $6,069,000 $6,177,000 $6,320,000 $6,508,000 $6,748,000 $6,900,000 Pump Zone Revenue $565,312 $637200 $565,920 $564,120 $714,840 $716,280 $740,160 $530250 $147,700 $144,600 $140,000 Concord Capital Revenue $3,253,383 $3,832,553 $3,147,642 $2,637,665 $2,753,611 $5,411,923 $4,489,593 $5,383209 $11,677,636 $10,670281 $12,395,625 Bond Reserve Interest $21,336 $40,004 $53,339 $80,009 $72,398 $90,498 $108,597 $126,697 $144,796 $180,995 $180,995 All Other $1,040,969 $936,877 $960,863 $1,054,588 $1239,036 $1,481,508 $1,677,158 $2,094,465 $2,658,051 $3,132,271 $3,549,265 Total Non Operating Reveaues $27,787,000 $27,354,012 $28279,876 $33,034,247 $32,042,599 $40,354,875 $45,951,184 $51,217,447 $63,713,980 $69,726,807 $73,454,493 Net Reveaues before Debt Service $25,202,452 $28,036,606 $32,437,744 $36,221,235 $45,172,176 $53,041,528 $58,112,929 $63,204,910 $66,708,599 $72,387,595 $77,286,579 DS from 10 year plau(Net Debt Service) $5,541,000 $5,567,000 $5,552,000 $5,546,000 $2,078,000 $3,782,000 $3,810,000 $3,603,000 $3,601,000 $3,608,000 $3,597,000 Debt Service Coverage 4A7x 4971 5.841 6.531 21.741 14.021 15.25x 17.541 18.531 20.061 21.491 PUB Debt Service $2,476,186 $2,560,914 $2,649,902 $2,744,364 $2,839,239 $2,936,976 $3,041,525 $3,147,077 $3,258,741 DS Coverage including POB Debt Service 4.041 4.471 9.551 8.131 8.741 9.661 10.041 10.721 11.271 21 -22 2011 -2012 2012 -2013 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 Cash and Investmeats Beginning Balance rot $61,999,931 $54,012,383 $44,138,989 $38,829,348 $40,468,977 $53,855,458 $64,155,834 $80,050,312 $97,671,575 $96,969,301 $104,380,397 Net Revenues After O &M and Debt Service $19,661,452 $22,469,606 $24,409,559 $28,114,321 $40,444,274 $46,515,164 $51,463,690 $56,664,934 $60,066,074 $65,632,518 $70,430,838 Draws for CD' (5' ($27,649,000) ($32,343,000) ($29,719,200) ($26,474,692) ($27,057,793) ($36,214,789) ($35,569,212) ($39,043,672) ($60768,347) ($58,221,422) ($63,503,986) Ending Balance $54,012,383 $44,138,989 $38,829,348 $40,468,977 $53,855,458 $64,155,834 $80,050,312 $97,671,575 $96,969,301 $104,380,397 $111,307,250 21 Exhibit D — Alternate 3: $50 Million POB and $25 Million Prepayments 22 FIELDMliN I ROLAPaP Central Contra Costa Sanitary District Actual and Projected Results including Debt Issuance Analysis 2011 -2012 2012 -2013 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 Operating Revenues rrt Sewer Service Charges $49,094,000 $56,436,099 $60,338,185 $61,956,252 $71,878,124 $73,578,674 $74,616,991 $78,069,126 $79,836,877 $81,273,510 $87,672,180 Service Charges City of Concord $9,960,554 $10,920,955 $11,898,945 $12,475,141 $14,377,813 $14,810,281 $15,294,459 $16,675,681 $17,251253 $17,882,458 $19,157,787 Penmit,7nspection/ Right ofWayfees $939,000 $927,000 $954,810 $983,454 $1,012,958 $1,043,347 $1,074,647 $1,106,886 $1,140,093 $1,174,296 $1,209,525 Lease Rental Income $731,000 $752,930 $775,518 $798,783 $822,747 $847,429 $872,852 $899,038 $926,009 $953,789 $982,403 Household Hazardous Waster Reimbursem ®t $800,000 $824,000 $848,720 $874,182 $900,407 $927,419 $955,242 $983,899 $1,013,416 $1,043,819 $1,075,133 Storm water/Pollution PreventionTretreahneot $234,000 $241,020 $248,251 $255,698 $263,369 $271,270 $279,408 $287,790 $296,424 $305,317 $314,476 Iuterost Income $115,000 $55,016 $80,180 $139,145 $188,811 $245,471 $303,355 $359285 $426,327 $568,982 $574,614 Recycled Water Income $300,000 $257,500 $265,225 $273,182 $281,377 $289,819 $298,513 $307,468 $316,693 $326,193 $335,979 Mscelaneous Income $15,000 $15,450 $15,914 $16,391 $16,883 $17,389 $17,911 $18,448 $19,002 $19,572 $20,159 Total $62,188,554 $70,429,970 $75,425,747 $77,772,228 $89,742,488 $92,031,099 $93,713,379 $98,707,623 $101,226,093 $103,547,936 $111,342,256 Maintemace and Operation Costs (z) $3,082,047 $3,188,040 $3,301,878 $3,415,012 $3,532,536 $3,656,195 $3,784,607 $3,916,875 $4,053,053 Salary& Wages $23,803,234 $24,671,523 $25,373,243 $26,146,226 $26,965,434 $27,740,143 $28,650,245 $29,598282 $30,617,835 $31,689,460 $32,798,591 Capitalized Admin Overhead ($3,015,088) ($3,122,291) ($3,434,521) ($3,537,556) ($3,643,683) ($3,752,993) ($3,865,583) ($3,981,551) ($4,100,997) ($4,224,027) ($4,350,748) Directors, Fees & Expenses $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 Chemicals $1,546,000 $1,623,300 $1,704,465 $1,789,688 $1,879,173 $1,973,131 $2,071,788 $2,175,377 $2,284,146 $2,398,353 $2,518,271 Utilities $4,451,485 $4,672209 $5,503,914 $5,777,147 $6,063,983 $6,365,100 $6,681,210 $9,123,713 $9,577,623 $10,054,161 $10,554,455 Repairs & Maintenance $3,504,761 $3,867,404 $3,983,426 $4,102,929 $4226,017 $4,352,797 $4,483,381 $4,617,882 $4,756,419 $4,899,111 $5,046,085 Hauling & Disposal $1,023250 $1,061,448 $1,101,166 $1,142,470 $1,185,426 $1230,105 $1,276,580 $1,324,928 $1,375229 $1,427,567 $1,482,029 Professional &Legal Services $587,660 $605290 $623,448 $642,152 $661,417 $681,259 $701,697 $722,748 $744,430 $766,763 $789,766 Outside Services $3,001,950 $3,092,009 $3,184,769 $3280,312 $3,378,721 $3,480,083 $3,584,485 $3,692,020 $3,802,780 $3,916,864 $4,034,370 Self- Insurance Expense $850,000 $850,000 $850,000 $900,000 $900,000 $950,000 $950,000 $950,000 $1,000,000 $1,000,000 $1,000,000 Materials & Supplies $1,831,819 $1,886,774 $1,943,377 $2,001,678 $2,061,728 $2,123,580 $2,187,288 $2,252,906 $2,320,494 $2,390,108 $2,461,812 Other Expense $1.772.831 $2,212,266 $1,892,384 $2,335,405 $2,019,218 $2,466,044 $2,153,775 $2,604,639 $2,296,528 $2,751,674 $2,447,974 Rethernent- Normal Cost' $6,194,330 $4,507,825 $6,931,828 $7,702,284 $7,866,965 $7,945,206 $8,098,301 $8,257,391 $8,444,678 $8,645,924 $8,850,206 Rethernent -UAAL' $3,905,670 $9,397,107 $9,796,484 $10212,835 $10,646,881 $11,099,373 $11,571,095 $12,062,866 $12,575,538 $13,109,999 $13,667,174 Reduction in UAAL Amort from a0 payments ($3,624,458) ($3,778,497) ($3,939,083) ($4,106,494) ($4,281,020) ($4,462,963) ($4,652,639) ($5,575,268) ($6,899,554) Vacancy Factor of4% ($1,172,394) ($1,302,157) ($1,368,233) ($1,411,531) ($1,451,266) ($1,496,316) ($1,542,483) ($1,592,250) ($2,041,167) ($2,300,568) Additional Conhnbuton to CCCERAUAAL $10,000,000 $15,000,000 Other Benefds $15,125,200 $15,404,907 $15,825,619 $16,290,702 $16,774,431 $17,237,081 $17,738,504 $18,241,812 $18,786,026 $19,273,253 $19,996,824 Total $64,773,102 $69,747,376 $70,542,988 $73,829,541 $75,825,095 $78,523,149 $80,695,431 $85,827,568 $88,425,840 $100,672,775 $107,286,686 Operating Income ($2,584,548) $682,594 $4,882,760 $3,942,686 $13,917,393 $13,507,951 $13,017,948 $12,880,054 $12,800,253 $2,875,161 $4,055,571 Son Operating Revenue `9 $3,082,047 $3,188,040 $3,301,878 $3,415,012 $3,532,536 $3,656,195 $3,784,607 $3,916,875 $4,053,053 Sewer Service Cbarge $6,534,000 $4,429,578 $7,088,912 $12,093,065 $9,193,714 $14,344,466 $20,272,653 $23,902221 $29,331,374 $35,206,844 $36,235,478 Property Tax Revenue $12,000,000 $13,061,000 $12,000,000 $12,000,000 $12,120,000 $12241,200 $12,486,024 $12,860,605 $13,246,423 $13,643,816 $14,053,130 Capacity Fee Revenue $4,372,000 $4,416,800 $4,463,200 $4,604,800 $5,949,000 $6,069,000 $6,177,000 $6,320,000 $6,508,000 $6,748,000 $6,900,000 Pump Zone Revenue $565,312 $637200 $565,920 $564,120 $714,840 $716,280 $740,160 $530250 $147,700 $144,600 $140,000 Concord Capital Revenue $3,253,383 $3,832,553 $3,147,642 $2,637,665 $2,753,611 $5,411,923 $4,489,593 $5,383209 $11,677,636 $10,670281 $12,395,625 Bond Reserve Interest $21,336 $40,004 $53,339 $80,009 $72,398 $90,498 $108,597 $126,697 $144,796 $180,995 $180,995 All Other $1,040,969 $936,877 $960,863 $1,054,588 $1239,036 $1,481,508 $1,677,158 $2,094,465 $2,658,051 $3,132,271 $3,549,265 Total Non Operating Reveaues $27,787,000 $27,354,012 $28279,876 $33,034,247 $32,042,599 $40,354,875 $45,951,184 $51,217,447 $63,713,980 $69,726,807 $73,454,493 Net Reveaues before Debt Service $25,202,452 $28,036,606 $33,162,636 $36,976,934 $45,959,992 $53,862,826 $58,969,132 $64,097,501 $76,514233 $72,601,968 $77,510,063 DS from 10 year plau(Net Debt Service) $5,541,000 $5,567,000 $5,552,000 $5,546,000 $2,078,000 $3,782,000 $3,810,000 $3,603,000 $3,601,000 $3,608,000 $3,597,000 Debt Service Coverage 4A7x 4971 5.971 6.671 22.121 14.241 15.481 17.791 21151 20.121 21.551 PUB Debt Service $3,082,047 $3,188,040 $3,301,878 $3,415,012 $3,532,536 $3,656,195 $3,784,607 $3,916,875 $4,053,053 DS Coverage including POB Debt Service 3.841 4.231 8.541 7.481 8.03x 8.831 1036x 9.651 10.131 21 -22 2011 -2012 2012 -2013 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 Cash and Investmeats Beginning Balance rot $61,999,931 $54,012,383 $44,138,989 $38,948,379 $40,716,581 $54,238,902 $64,689,928 $80,747,312 $98,541,946 $106,902,225 $113,757,896 Net Revenues After O &M and Debt Service $19,661,452 $22,469,606 $24,528,590 $ 28,242,894 $40,580114 $46,665,814 $51,626,596 $56,8381306 $69,128,626 $65,077,093 $69,860,010 Draws for CD' (5' ($27,649,000) ($32,343,000) ($29,719,200) ($26,474,692) ($27,057,793) ($36,214,789) ($35,569,212) ($39,043,672) ($60768,347) ($58,221,422) ($63,503,986) Ending Balance $54,012,383 $44,138,989 $38,948,379 $40,716,581 $54238,902 $64,689,928 $80,747,312 $98,541,946 $106,902225 $113,757,896 $120,113,920 23 Exhibit E — Alternate 4: $75 Million POB 24 FIELDMAN I ROLAPP �nasoc -twres Central Contra Costa Sanitary District Actual and Projected Results including Debt Issuance Analysis Projected 2011 -2012 2012 -2013 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 Operating Revenues "' Sewer Service Charges $49,094,000 $56,436,099 $60,338,185 $61,956,252 $71,878,124 $73,578,674 $74,616,991 $78,069,126 $79,836,877 $81,273,510 $87,672,180 Service Charges City ofConcord $9,960,554 $10,920,955 $11,898,945 $12,475,141 $14,377,813 $14,810,281 $15,294,459 $16,675,681 $17,251253 $17,882,458 $19,157,787 Permi/luspectun/ Right ofWayfees $939,000 $927,000 $954,810 $983,454 $1,012,958 $1,043,347 $1,074,647 $1,106,886 $1,140,093 $1,174,296 $1,209,525 Lease Rental Iucome $731,000 $752,930 $775,518 $798,783 $822,747 $847,429 $872,852 $899,038 $926,009 $953,789 $982,403 Household Hazardous Waster Rehnbassement $800,000 $824,000 $848,720 $874,182 $900,407 $927,419 $955,242 $983,899 $1,013,416 $1,043,819 $1,075,133 Storm water/Poffirbon Prevenbon/Pretreannent $234,000 $241,020 $248,251 $255,698 $263,369 $271,270 $279,408 $287,790 $296,424 $305,317 $314,476 Interest Income $115,000 $55,016 $80,180 $139,145 $188,811 $245,471 $303,355 $359285 $426,327 $568,982 $574,614 Recycled Water Income $300,000 $257,500 $265,225 $273,182 $281,377 $289,819 $298,513 $307,468 $316,693 $326,193 $335,979 Misce➢aneom Income $15,000 $15,450 $15,914 $16,391 $16,883 $17,389 $17,911 $18,448 $19,002 $19,572 $20,159 Total $62,188,554 $70,429,970 $75,425,747 $77,772,228 $89,742,488 $92,031,099 $93,713,379 $98,707,623 $101,226,093 $103,547,936 $111,342,256 Maintenance and Operation Costs (z) $5,541,000 $5,567,000 $5,552,000 $5,546,000 $2,078,000 $3,782,000 $3,810,000 $3,603,000 $3,601,000 $3,608,000 $3,597,000 Salary &Wages $23,803234 $24,671,523 $25,373,243 $26,146,226 $26,965,434 $27,740,143 $28,650,245 $29,598282 $30,617,835 $31,689,460 $32,798,591 Capitalized Admen Overhead ($3,015,088) ($3,122,291) ($3,434,521) ($3,537,556) ($3,643,683) ($3,752,993) ($3,865,583) ($3,981,551) ($4,100,997) ($4,224,027) ($4,350,748) Directors Fees & Expenses $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 Chemicals $1,546,000 $1,623,300 $1,704,465 $1,789,688 $1,879,173 $1,973,131 $2,071,788 $2,175,377 $2,284,146 $2,398,353 $2,518,271 Utilities $4,451,485 $4,672209 $5,503,914 $5,777,147 $6,063,983 $6,365,100 $6,681,210 $9,123,713 $9,577,623 $10,054,161 $10,554,455 Repairs &Maintenance $3,504,761 $3,867,404 $3,983,426 $4,102,929 $4,226,017 $4,352,797 $4,483,381 $4,617,882 $4,756,419 $4,899,111 $5,046,085 Barring &Disposal $1,023250 $1,061,448 $1,101,166 $1,142,470 $1,185,426 $1230,105 $1,276,580 $1,324,928 $1,375229 $1,427,567 $1,482,029 Professional & Legal Services $587,660 $605290 $623,448 $642,152 $661,417 $681,259 $701,697 $722,748 $744,430 $766,763 $789,766 Outside Services $3,001,950 $3,092,009 $3,184,769 $3280,312 $3,378,721 $3,480,083 $3,584,485 $3,692,020 $3,802,780 $3,916,864 $4,034,370 Selr- Insurance Expense $850,000 $850,000 $850,000 $900,000 $900,000 $950,000 $950,000 $950,000 $1,000,000 $1,000,000 $1,000,000 Materials & Supplies $1,831,819 $1,886,774 $1,943,377 $2,001,678 $2,061,728 $2,123,580 $2,187,288 $2,252,906 $2,320,494 $2,390,108 $2,461,812 Other Expense $1,772,831 $2,212,266 $1,892,384 $2,335,405 $2,019,218 $2,466,044 $2,153,775 $2,604,639 $2,296,528 $2,751,674 $2,447,974 Rely -ent- Normal Cost' $6,194,330 $4,507,825 $6,931,828 $7,702,284 $7,866,965 $7,945,206 $8,098,301 $8,257,391 $8,444,678 $8,645,924 $8,850,206 Retirement -UAAL- $3,905,670 $9,397,107 $9,796,484 $10,212,835 $10,646,881 $11,099,373 $11,571,095 $12,062,866 $12,575,538 $13,109,999 $13,667,174 Reductions UAAL Amort Snm all payments ($5,436,687) ($5,667,746) ($5,908,625) ($6,159,742) ($6,421,531) ($6,694,446) ($6,978,960) ($7,275,566) ($7,584,778) Vacancy Factor of4% ($1,172,394) ($1,302,157) ($1,368,233) ($1,411,531) ($1,451,266) ($1,496,316) ($1,542,483) ($1,592,250) ($1,641,167) ($1,700,568) Additional Connibution to CCCERA - OtherBenefIIS $15,125,200 $15,404,907 $15,825,619 $16290,702 $16,774,431 $17,237,081 $17,738,504 $18,241,812 $18,786,026 $19,273,253 $19,996,824 Total $64,773,102 $69,747,376 $68,730,759 $71,940,292 $73,855,553 $76,469,901 $78,554,920 $83,596,085 $86,099,519 $89,372,477 $92,201,462 Operating Income ($2,584,548) $682,594 $6,694 ,989 $5,831,935 $15,886,935 $15,561,199 $15,158,459 $15,111,537 $15,126,574 $14,175,459 $19,140,795 Non Operating Revenue (a) Sewer Service Charge $6,534,000 $4,429,578 $7,088,912 $12,093,065 $9,193,714 $14,344,466 $20,272,653 $23,902221 $29,331,374 $35,206,844 $36,235,478 Property Tax Revenue $12,000,000 $13,061,000 $12,000,000 $12,000,000 $12,120,000 $12241,200 $12,486,024 $12,860,605 $13,246,423 $13,643,816 $14,053,130 Capacity Fee Revenue $4,372,000 $4,416,800 $4,463,200 $4,604,800 $5,949,000 $6,069,000 $6,177,000 $6,320,000 $6,508,000 $6,748,000 $6,900,000 Pump Zone Revenue $565,312 $637,200 $565,920 $564,120 $714,840 $716,280 $740,160 $530250 $147,700 $144,600 $140,000 Concord Capital Revenue $3,253,383 $3,832,553 $3,147,642 $2,637,665 $2,753,611 $5,411,923 $4,489,593 $5,383209 $11,677,636 $10,670281 $12,395,625 Bond Reserve Interest $21,336 $40,004 $53,339 $80,009 $72,398 $90,498 $108,597 $126,697 $144,796 $180,995 $180,995 All Other $1,040,969 $936,877 $960,863 $1,054,588 $1239,036 $1,481,508 $1,677,158 $2,094,465 $2,658,051 $3,132,271 $3,549,265 Total Non Operating Revenues $27,787,000 $27,354,012 $28279,876 $33,034,247 $32,042,599 $40,354,875 $45,951,184 $51,217,447 $63,713,980 $69,726,807 $73,454,493 Net Revenues before Debt Service $25,202,452 $28,036,606 $34,974,865 $38,866,183 $47,929,534 $55,916,074 $61,109,643 $66,328,984 $78,840,554 $83,902266 $92,595,287 DS from 10 year plan(Net Debt Service) $5,541,000 $5,567,000 $5,552,000 $5,546,000 $2,078,000 $3,782,000 $3,810,000 $3,603,000 $3,601,000 $3,608,000 $3,597,000 Debt Service Coverage 4A7x 497x 6.30x 7.01x 23.07x 14.78x 16.04x MAU 21.89x 23.25x 25.74x POB Debt Service - - $4,594,221 $4,755,918 $4,921,881 $5,094,421 $5,273,509 $5,454,269 $5,644,838 $5,843,814 $6,046,190 DS Coverage including POB Debt Service 3.45x 3.77x 6.85x 6.30x 6.73x 732x 8.53x 8.88x 9.60x Cash and Investments Beginning Balance (4) 2011 -2012 $61,999,931 2012 -2013 $54,012,383 20132014 $44,138,989 21 -22 2014 -2015 $39,248,433 2015 -2016 $41,338,006 2016 -2017 $55,209,866 2017 -2018 $66,034,730 2018 -2019 $82,491,652 2019 -2020 $100,719,696 2020 -2021 $109,546,064 2021 -2022 $125,775,094 Net Revenues After O &M and Debt Service $19,661,452 $22,469,606 $24,828,644 $28,564,265 S40 ,929,653 $47,039,653 $52,026,134 $57,271,716 $69,594,716 $74,450,452 $82 ,952,097 Drous for CD' (5) ($27,649,000) ($32,343,000) ($29,719,200) ($26,474,692) ($27,057,793) ($36,214,789) ($35,569,212) ($39,043,672) ($60,768,347) ($58,221,422) ($63,503,986) Ending Balance $54,012,383 $44,138,989 $39248,433 $41,338,006 $55209,866 $66,034,730 $82,491,652 $100,719,696 $109,546,064 $125,775,094 $145,223,206 25 Exhibit F - Alternate 5: Refinance Entire UAAL FIELDMAN i ROANPP Central Contra Costa Sanitary District Actual and Projected Results including Debt Issuance Analysis 2011 -2012 2012 -2013 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 Operating Revenues "' $9,397,107 $9,796,484 $10212,835 $10,646,881 $11,099,373 $11,571,095 $12,062,866 $12,575,538 $13,109,999 $13,667,1741 Reductions UAAL Amon from all payments Sewer Service Charges $49,094,000 $56,436,099 $60,338,185 $61,956,252 $71,878,124 $73,578,674 $74,616,991 $78,069,126 $79,836,877 $81,273,510 $87,672,180 Service Charges City ofConcord $9,960,554 $10,920,955 $11,898,945 $12,475,141 $14,377,813 $14,810,281 $15,294,459 $16,675,681 $17,251253 $17,882,458 $19,157,787 Permi/Inspectun/ Right ofWayfees $939,000 $927,000 $954,810 $983,454 $1,012,958 $1,043,347 $1,074,647 $1,106,886 $1,140,093 $1,174,296 $1,209,525 Lease Rental Income $731,000 $752,930 $775,518 $798,783 $822,747 $847,429 $872,852 $899,038 $926,009 $953,789 $982,403 Household Hazardous Waster Rennbmsement $800,000 $824,000 $848,720 $874,182 $900,407 $927,419 $955,242 $983,899 $1,013,416 $1,043,819 $1,075,133 Strom water/PolWtion Prevenbon/Pretreabnent $234,000 $241,020 $248,251 $255,698 $263,369 $271,270 $279,408 $287,790 $296,424 $305,317 $314,476 Interest Income $115,000 $55,016 $80,180 $139,145 $188,811 $245,471 $303,355 $359285 $426,327 $568,982 $574,614 Recycled Water Income $300,000 $257,500 $265,225 $273,182 $281,377 $289,819 $298,513 $307,468 $316,693 $326,193 $335,979 Miscellaneous Income $15,000 $15,450 $15,914 $16,391 $16,883 $17,389 $17,911 $18,448 $19,002 $19,572 $20,159 Total $62,188,554 $70,429,970 $75,425,747 $77,772,228 $89,742,488 $92,031,099 $93,713,379 $98,707,623 $101,226,093 $103,547,936 $111,342,256 Maintenance and Operation Costs (z) $9,397,107 $9,796,484 $10212,835 $10,646,881 $11,099,373 $11,571,095 $12,062,866 $12,575,538 $13,109,999 $13,667,1741 Reductions UAAL Amon from all payments Salary &Wages $23,803234 $24,671,523 $25,373,243 $26,146,226 $26,965,434 $27,740,143 $28,650,245 $29,598282 $30,617,835 $31,689,460 $32,798,591 Capitalized Admu Overhead ($3,015,088) ($3,122,291) ($3,434,521) ($3,537,556) ($3,643,683) ($3,752,993) ($3,865,583) ($3,981,551) ($4,100,997) ($4,224,027) ($4,350,748) Diectors Fees & Expenses $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 Chenacals $1,546,000 $1,623,300 $1,704,465 $1,789,688 $1,879,173 $1,973,131 $2,071,788 $2,175,377 $2,284,146 $2,398,353 $2,518,271 Uti ies $4,451,485 $4,672209 $5,503,914 $5,777,147 $6,063,983 $6,365,100 $6,681,210 $9,123,713 $9,577,623 $10,054,161 $10,554,455 Repairs &Maintenance $3,504,761 $3,867,404 $3,983,426 $4,102,929 $4,226,017 $4,352,797 $4,483,381 $4,617,882 $4,756,419 $4,899,111 $5,046,085 Hauling & Disposal $1,023,250 $1,061,448 $1,101,166 $1,142,470 $1,185,426 $1230,105 $1,276,580 $1,324,928 $1,375229 $1,427,567 $1,482,029 Professional & Legal Services $587,660 $605290 $623,448 $642,152 $661,417 $681,259 $701,697 $722,748 $744,430 $766,763 $789,766 Outside Services $3,001,950 $3,092,009 $3,184,769 $3280,312 $3,378,721 $3,480,083 $3,584,485 $3,692,020 $3,802,780 $3,916,864 $4,034,370 Self Insurance Expense $850,000 $850,000 $850,000 $900,000 $900,000 $950,000 $950,000 $950,000 $1,000,000 $1,000,000 $1,000,000 Materials & Supplies $1,831,819 $1,886,774 $1,943,377 $2,001,678 $2,061,728 $2,123,580 $2,187,288 $2,252,906 $2,320,494 $2,390,108 $2,461,812 Rel,-- t -UAAL' $3,905,670 $9,397,107 $9,796,484 $10212,835 $10,646,881 $11,099,373 $11,571,095 $12,062,866 $12,575,538 $13,109,999 $13,667,1741 Reductions UAAL Amon from all payments Sewer Service Charge ($7,913,554) ($8,249,880) ($8,600,500) ($8,966,021) ($9,347,077) ($9,744,328) ($10,158,462) ($10,590,197) ($11,040,280) Vacancy Factor oft% ($1,172,394) ($1,302,157) ($1,368,233) ($1,411,531) ($1,451,266) ($1,496,316) ($1,542,483) ($1,592,250) ($1,641,167) ($1,700,568) Additional Confibution to CCCERA UAAL $13,643,816 $14,053,130 Capacity Fee Revenue $4,372,000 $4,416,800 $4,463,200 $4,604,800 $5,949,000 $6,069,000 $6,177,000 Other Benefits $15,125200 $15,404,907 $15,825,619 $16290,702 $16,774,431 $17237,081 $17,738,504 $18,241,812 $18,786,026 $19,273253 $19,996,824 Total $64,773,102 $69,747,376 $66253,892 $69,358,158 $71,163,678 $73,663,622 $75,629,374 $80,546203 $82,920,017 $86,057,846 $88,745,960 Operating Income ($2,584,548) $682,594 $9,171,856 $8,414,069 $18,578,810 $18 ,367,478 $18,084,005 $18,161,419 $18,306,076 $17,490,090 $22,596,297 Non Operating Revenue" $5,541,000 $5,567,000 $5,552,000 $5,546,000 $2,078,000 $3,782,000 $3,810,000 $3,603,000 $3,601,000 $3,608,000 $3,597,000 Sewer Service Charge $6,534,000 $4,429,578 $7,088,912 $12,093,065 $9,193,714 $14,344,466 $20,272,653 $23,902221 $29,331,374 $35,206,844 $36,235,478 Property Tax Revenue $12,000,000 $13,061,000 $12,000,000 $12,000,000 $12,120,000 $12241,200 $12,486,024 $12,860,605 $13,246,423 $13,643,816 $14,053,130 Capacity Fee Revenue $4,372,000 $4,416,800 $4,463,200 $4,604,800 $5,949,000 $6,069,000 $6,177,000 $6,320,000 $6,508,000 $6,748,000 $6,900,000 Pimp Zone Revenue $565,312 $637200 $565,920 $564,120 $714,840 $716,280 $740,160 $530250 $147,700 $144,600 $140,000 Concord Capital Revmue $3,253,383 $3,832,553 $3,147,642 $2,637,665 $2,753,611 $5,411,923 $4,489,593 $5,383209 $11,677,636 $10,670281 $12,395,625 Bond Reserve Interest $21,336 $40,004 $53,339 $80,009 $72,398 $90,498 $108,597 $126,697 $144,796 $180,995 $180,995 All Other $1,040,969 $936,877 $960,863 $1,054,588 $1239,036 $1,481,508 $1,677,158 $2,094,465 $2,658,051 $3,132,271 $3,549,265 Total Non Operating Revenues $27,787,000 $27,354,012 $28279,876 $33,034,247 $32,042,599 $40,354,875 $45,951,184 $51,217,447 $63,713,980 $69,726,807 $73,454,493 Net Revenues before Debt Service $25,202,452 $28,036,606 $37,451,732 $41,448,317 $50,621,409 $58,722,353 $64,035,189 $69,378,866 $82,020,056 $87,216,897 $96,050,789 DS from 10 year plan(Net Debt Service) $5,541,000 $5,567,000 $5,552,000 $5,546,000 $2,078,000 $3,782,000 $3,810,000 $3,603,000 $3,601,000 $3,608,000 $3,597,000 Debt Service Coverage 4d7x 4.97s: 6.75x 7.47x 24.36s: 15.53s: 16.81s: 19.26s: 22.78s: 24.17s: 26.70x POB Debt Service $6,660,783 $6,894,781 $7,138,234 $7,389,417 $7,643,320 $7,913,050 $8,190,543 $8,478,927 $8,773,233 DS Coverage including POB Debt Service 3.07x 3.33s: 5.49s: 5.26s: 5.59s: 6.02s: 6.96s: 7.22s: 7.76x Cash and Investments Beginning Balance let 2011 -2012 $61,999,931 2012 -2013 $54,012,383 2013 -2014 $44,138,989 21 -22 2014 -2015 $39,658,739 2015 -2016 $42,191,583 2016 -2017 $56,538,965 2017 -2018 $67,875,113 2018 -2019 $84,887,770 2019 -2020 $103,706,914 2020 -2021 $113,167,080 2021 -2022 $130,075,628 Net Revenues After O &M and Debt Service $19,661,452 $22,469,606 $25,238,950 $29,007,536 $41,105,175 547 ,550,936 $52,581,869 $57,862,816 $70,228 ,513 $75,129,970 $83,680,556 Draws for CIP(5' ($27,649,000) ($32,343,000) ($29,719,200) ($26,474,692) ($27,057,793) ($36,214,789) ($35,569,212) ($39,043,672) ($60,768,347) ($58,221,422) ($63,503,986) Ending Balance $54,012,383 $44,138,989 $39,658,739 $42,191,583 $56,538,965 $67,875,113 $84,887,770 $103,706,914 $113,167,080 $130,075,628 $150,252,198 26 Exhibit G - $30 Million POB and $75 Million of Prepayments 27 FIELDMAN I ROLAPP �nasoc -twres Central Contra Costa Sanitary District Actual and Projected Results including Debt Issuance Analysis Projected 2011 -2012 2012 -2013 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 Operating Revenues "' Sewer Service Charges $49,094,000 $56,436,099 $60,338,185 $61,956,252 $71,878,124 $73,578,674 $74,616,991 $78,069,126 $79,836,877 $81,273,510 $87,672,180 Service Charges City ofConcord $9,960,554 $10,920,955 $11,898,945 $12,475,141 $14,377,813 $14,810,281 $15,294,459 $16,675,681 $17,251253 $17,882,458 $19,157,787 PenniUluspectun/ Right ofWayfees $939,000 $927,000 $954,810 $983,454 $1,012,958 $1,043,347 $1,074,647 $1,106,886 $1,140,093 $1,174,296 $1,209,525 Lease Rental Iucome $731,000 $752,930 $775,518 $798,783 $822,747 $847,429 $872,852 $899,038 $926,009 $953,789 $982,403 Household Hazardous Waster Retnbassement $800,000 $824,000 $848,720 $874,182 $900,407 $927,419 $955,242 $983,899 $1,013,416 $1,043,819 $1,075,133 Storm water/Poffirbon Prevenbon/Pretreannent $234,000 $241,020 $248,251 $255,698 $263,369 $271,270 $279,408 $287,790 $296,424 $305,317 $314,476 Interest Income $115,000 $55,016 $80,180 $139,145 $188,811 $245,471 $303,355 $359285 $426,327 $568,982 $574,614 Recycled Water Income $300,000 $257,500 $265,225 $273,182 $281,377 $289,819 $298,513 $307,468 $316,693 $326,193 $335,979 Misce➢aneom Income $15,000 $15,450 $15,914 $16,391 $16,883 $17,389 $17,911 $18,448 $19,002 $19,572 $20,159 Total $62,188,554 $70,429,970 $75,425,747 $77,772,228 $89,742,488 $92,031,099 $93,713,379 $98,707,623 $101,226,093 $103,547,936 $111,342,256 Maintenance and Operation Costs (z) $5,541,000 $5,567,000 $5,552,000 $5,546,000 $2,078,000 $3,782,000 $3,810,000 $3,603,000 $3,601,000 $3,608,000 $3,597,000 Salary &Wages $23,803234 $24,671,523 $25,373,243 $26,146,226 $26,965,434 $27,740,143 $28,650,245 $29,598282 $30,617,835 $31,689,460 $32,798,591 Capitalized Admen Overhead ($3,015,088) ($3,122,291) ($3,434,521) ($3,537,556) ($3,643,683) ($3,752,993) ($3,865,583) ($3,981,551) ($4,100,997) ($4,224,027) ($4,350,748) Directors Fees & Expenses $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 $190,000 Chemicals $1,546,000 $1,623,300 $1,704,465 $1,789,688 $1,879,173 $1,973,131 $2,071,788 $2,175,377 $2,284,146 $2,398,353 $2,518,271 Utilities $4,451,485 $4,672209 $5,503,914 $5,777,147 $6,063,983 $6,365,100 $6,681,210 $9,123,713 $9,577,623 $10,054,161 $10,554,455 Repairs &Maintenance $3,504,761 $3,867,404 $3,983,426 $4,102,929 $4,226,017 $4,352,797 $4,483,381 $4,617,882 $4,756,419 $4,899,111 $5,046,085 Barring &Disposal $1,023250 $1,061,448 $1,101,166 $1,142,470 $1,185,426 $1230,105 $1,276,580 $1,324,928 $1,375229 $1,427,567 $1,482,029 Professional & Legal Services $587,660 $605290 $623,448 $642,152 $661,417 $681,259 $701,697 $722,748 $744,430 $766,763 $789,766 Outside Services $3,001,950 $3,092,009 $3,184,769 $3280,312 $3,378,721 $3,480,083 $3,584,485 $3,692,020 $3,802,780 $3,916,864 $4,034,370 Selr- Insurance Expense $850,000 $850,000 $850,000 $900,000 $900,000 $950,000 $950,000 $950,000 $1,000,000 $1,000,000 $1,000,000 Materials & Supplies $1,831,819 $1,886,774 $1,943,377 $2,001,678 $2,061,728 $2,123,580 $2,187,288 $2,252,906 $2,320,494 $2,390,108 $2,461,812 Other Expense $1,772,831 $2,212,266 $1,892,384 $2,335,405 $2,019,218 $2,466,044 $2,153,775 $2,604,639 $2,296,528 $2,751,674 $2,447,974 Rely -ent- Normal Cost' $6,194,330 $4,507,825 $6,931,828 $7,702,284 $7,866,965 $7,945,206 $8,098,301 $8,257,391 $8,444,678 $8,645,924 $8,850,206 Retirement -UAAL- $3,905,670 $9,397,107 $9,796,484 $10,212,835 $10,646,881 $11,099,373 $11,571,095 $12,062,866 $12,575,538 $13,109,999 $13,667,174 Reductions UAAL Amort Snm all payments ($2,174,675) ($2,267,099) ($3,088,343) ($3,944,490) ($4,837,023) ($5,767,488) ($6,737,498) ($7,748,733) ($9,165,391) Vacancy Factor of4% ($1,172,394) ($1,302,157) ($1,368,233) ($1,811,531) ($1,851,266) ($1,896,316) ($1,942,483) ($1,992,250) ($2,041,167) ($2,300,568) Addtional Conhibution to CCCERA UAAL $10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 $10,000,000 $15,000,000 Other Benefts $15,125,200 $15,404,907 $15,825,619 $16290,702 $16,774,431 $17237,081 $17,738,504 $18,241,812 $18,786,026 $19,273,253 $19,996,824 Total $64,773,102 $69,747,376 $71,992,771 $75,340,939 $86275,835 $88285,153 $89,739,428 $94,123,043 $95,940,981 $98,499,310 $105,020,849 Operating Income ($2,584,548) $682,594 $3,132,977 $2,431,288 $3,166,653 $3,745,947 $3,973,951 $4,584 ,579 $5,285,112 $5,048,626 $6,321,408 Non Operating Revenue (a) Sewer Service Charge $6,534,000 $4,429,578 $7,088,912 $12,093,065 $9,193,714 $14,344,466 $20,272,653 $23,902221 $29,331,374 $35,206,844 $36,235,478 Property Tax Revenue $12,000,000 $13,061,000 $12,000,000 $12,000,000 $12,120,000 $12241,200 $12,486,024 $12,860,605 $13,246,423 $13,643,816 $14,053,130 Capacity Fee Revenue $4,372,000 $4,416,800 $4,463,200 $4,604,800 $5,949,000 $6,069,000 $6,177,000 $6,320,000 $6,508,000 $6,748,000 $6,900,000 Pump Zone Revenue $565,312 $637,200 $565,920 $564,120 $714,840 $716,280 $740,160 $530250 $147,700 $144,600 $140,000 Concord Capital Revenue $3,253,383 $3,832,553 $3,147,642 $2,637,665 $2,753,611 $5,411,923 $4,489,593 $5,383209 $11,677,636 $10,670281 $12,395,625 Bond Reserve Interest $21,336 $40,004 $53,339 $80,009 $72,398 $90,498 $108,597 $126,697 $144,796 $180,995 $180,995 All Other $1,040,969 $936,877 $960,863 $1,054,588 $1239,036 $1,481,508 $1,677,158 $2,094,465 $2,658,051 $3,132,271 $3,549,265 Total Non Operating Revenues $27,787,000 $27,354,012 $28279,876 $33,034,247 $32,042,599 $40,354,875 $45,951,184 $51,217,447 $63,713,980 $69,726,807 $73,454,493 Net Revenues before Debt Service $25,202,452 $28,036,606 $31,712,853 $35,465,536 $35,509,252 $44,100,822 $49,925,135 $55,802,026 $68,999,092 $74,775,433 $79,775,900 DS from 10 year plan(Net Debt Service) $5,541,000 $5,567,000 $5,552,000 $5,546,000 $2,078,000 $3,782,000 $3,810,000 $3,603,000 $3,601,000 $3,608,000 $3,597,000 Debt Service Coverage 4A7x 497x 5.71x 6.39x 17.09x 11.66x 13.10a 15A9x 19.16x 20.72x 22.18x POB Debt Service - - $1,870,268 $1,933,731 $2,002,869 $2,073,546 $2,145,771 $2,217,587 $2,298,273 $2,377,109 $2,459,259 DS Coverage including POB Debt Service 4.27x 4.74x 8.70x 7.53x 8.38x 9.59x 11.70x 12A9x 13.17x Cash and Investments Beginning Balance (4) 2011 -2012 $61,999,931 2012 -2013 $54,012,383 2013 -2014 $44,138,989 21 -22 2014 -2015 $38,710,375 2015 -2016 $40,221,488 2016 -2017 $44,592,078 2017 -2018 $46,622,566 2018 -2019 $55,022,718 2019 -2020 $65,960,485 2020 -2021 $68,291,957 2021 -2022 $78,860,859 Net Revenues After O &M and Debt Service $19,661,452 $22,469,606 $24,290,586 $27 ,985,805 $31,128,383 $38,245,276 $43,969,364 $49,981,439 $63,099,819 $68,790 ,324 $73,719,641 Drous for CD' (5) ($27,649,000) ($32,343,000) ($29,719,200) ($26,474,692) ($27,057,793) ($36,214,789) ($35,569,212) ($39,043,672) ($60,768,347) ($58,221,422) ($63,503,986) Ending Balance $54,012,383 $44,138,989 $38,710,375 $40221,488 $44,592,078 $46,622,566 $55,022,718 $65,960,485 $68,291,957 $78,860,859 $89,076,514 28 CCCSD 2012 -13 Loss Control Report New Incident Prior Fiscal Year Incident Ongoing Incident Litigated Matter OVERFLOWS AND PLUMBING REIMBURSEMENTS Status # ID# Loss DOL Other Party Address City Reserve Paid to Date Paid to Incident Total Type Total - OF /PR $ $ $ LIABILITY INCIDENTS - OTHER Status # ID# Loss DOL Other Party Address City Reserve Paid to Date Paid to Incident Total Type Open A 2012024 GL 5/30/2012 Amilcar Granados CSO Warehouse Walnut Creek $ $ _Open 1 2013003 GL 10/4/2012 Glen Peterson Diablo Road WA $ $ Total - Liab. $ - $ $ PROPERTY INCIDENTS Status # ID# Loss DOL Other Party Address City Reserve Paid to Date Paid to Incident Total Type Open B 2012021 PD 3/29/2012 CoGen Incident SCB $ $ $ Total - Property $ $ - AUTO INCIDENTS Status # ID# Type DOL Other Party Open _ C 2011022 AL 5/9/2011 Louis Pimentel Closed 1 2013001 APD 8/27/2012 Unknown Closed 2 2013002 AL 8/15/2012 Greo Brown Location Veh# 41 Lost Valley #252 Rodder 3813 Pinole Valley Rd, Pinol( #253 Chevy Truck $ Hwy 680, Concord #262 pickup $ Total - Auto $ Note: Prior fiscal year closed claims have been removed from report. Reserve Paid to Date Paid to unknown $ 2,418.75 $ 1,040.34 Russo Auto $ 294.91 Greg Brown $ 3,754.00 Incident Total $ 2,418.75 $ 1,040.34 $ 294.91 $ 3,754.00 10/26/2012 Legal Expenditure Summary SELF INSURANCE FUND RUNNING EXPENSE Check # Check $ Vendor Name Account # Account $ CL # Case # - Case Title 1 103087 $15,482.08 Meyers, Nave, Riback, Silver 003 - 0000 - 992.14 -21 $5,355.44 Gregory Village Partners v Chevron 003 - 0000 - 992.14 -21 $9,374.15 Schaffer, Ryan v Gregory Village Partners 003 - 0000 - 991.14 -21 $752.49 Pimentel, Louis v CCCSD 3 192212 $42,960.07 Meyers, Nave, Riback, Silver 001 - 0100 - 400.08 -02 $5,731.23 ADM - Board Activity - Board Meetings, Retainer Sery RUNNING EXPENSE PROJECTS Check # Check $ Vendor Name Account # Account $ CL # Department - Division - Description 2 1 1922031 $4,293.60 Hanson Bridgett 001 - 0120 - 400.08 -03 $3,356.10 ADM - H.R. - Labor - General 001 - 0100 - 400.08 -02 $937.50 ADM - Board - Brown Act Issue 3 192212 $42,960.07 Meyers, Nave, Riback, Silver 001 - 0100 - 400.08 -02 $5,731.23 ADM - Board Activity - Board Meetings, Retainer Sery 001 - 0100 - 400.08 -03 $2,979.38 ADM - General 001 - 0110 - 400.08 -03 $354.32 ADM - Finance 001 - 0120 - 400.08 -03 $25,043.73 ADM - H.R. issues, Labor Negotiations 001 - 0140 - 400.08 -03 $138.43 ADM - Purchasing, Constr. Contract, Retainer Sery 001 - 0150 - 400.08 -03 $138.43 ADM - Risk Management, Retainer Sery 001 - 0200 - 420.08 -03 $7,481.92 ES - Legal Work Auth., Retainer Sery 001 - 0200 - 490.08 -03 $182.30 ES - Source Control 001 - 0200 - 690.08 -03 $212.70 ES - HHW Facility 001 - 0300 - 410.08 -03 $138.43 CSO - Admin, Retainer Services 001 - 0400 - 410.08 -03 $559.19 POD - Misc, Retainer Services PROJECTS Per 7/16/12 B &F Committee - was decided to only include legal expenditures Page 1 of 1 Printed: 10/22/2012 s Check # Check $ Vendor Name Account # Account $ CL # Projects 4 34849 $2,464.80 Meyers, Nave, Riback, Silver 8230PQ.08 -96 $630.88 Treatment plant Projects 8230PQ.08 -97 $1,833.92 Collection System Projects Per 7/16/12 B &F Committee - was decided to only include legal expenditures Page 1 of 1 Printed: 10/22/2012 s