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
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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