HomeMy WebLinkAboutBUDGET AND FINANCE AGENDA 11-18-13Jl Central Contra Costa Sanitary District
SPECIAL MEETING OF THE
CENTRAL CONTRA COSTA
SANITARY DISTRICT
BUDGET AND FINANCE COMMITTEE
Chair McGill
Member Nejedly
Monday, November 18, 2013
3:00 p.m.
Caucus Room
5019 Imhoff Place
Martinez, CA 94553
INFORMATION FOR THE PUBLIC
ADDRESSING THE COMMITTEE ON AN ITEM ON THE AGENDA
BOARD OF DIRECTORS:
JAMES A. NEJEDLY
President
DA V7D R. YVILLIAMS
President Pro Tem
PA UL H. CA USEY
MICHAEL R. MCGILL
TAD J. PILECKI
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 its
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,
4849 Imhoff Place, Martinez, and on the District's website at www.centralsan.org. Not every agenda item
is accompanied by written supporting material. Reports and 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 meeting room.
AMERICANS WITH DISABILITIES ACT
In accordance with the Americans With Disabilities Act and state law, it is the policy of the Central Contra
Costa Sanitary District to offer its public meetings in a manner that is readily accessible to everyone,
including those with disabilities. If you are disabled and require special accommodations to participate,
please contact the Secretary of the District at least 48 hours in advance of the meeting at (925) 229 -7303.
Budget and Finance Committee
November 18, 2013
Page 2
1. Call Meeting to Order
2. Public Comments
3. Old Business
*a. Review staff's responses to the Committee's request for information at the
previous meeting regarding the following expenditures:
Check Date Amount Vendor
103144 10/10/13 $5,527.72 Servicemaster Restoration
197231 10/10/13 $6,454.13 Dept. of Toxic Substances
Staff Recommendation: Review the responses.
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.
*5. Discuss the Quarterly report from HighMark Capital Management, which has
been received for the GASB 45 Trust
Staff Recommendation: Discuss and provide input if needed.
*6. Receive follow -up report on Governmental Accounting Standards Board (GASB)
51, Accounting and Financial Reporting for Intangible Assets, particularly as it
relates to capitalizing Land and Easements
Staff Recommendation: Receive the report and provide input to staff if
needed.
*7. Review and discuss California Investment and Debt Advisory Committee's
Guidelines for Investments and compare it to the District's current Investment
Policy
Staff Recommendation: Review and discuss and provide input if needed.
*8. Review draft Comprehensive Annual Financial Report (CAFR) for fiscal year
ended June 30, 2013
Staff Recommendation: Review and provide input if needed.
Budget and Finance Committee
November 18, 2013
Page 3
9. Review Expenditures (Item 4.b. in Board Binder)
Staff Recommendation: Review and recommend Board approval.
10. Announcements
a. Staff confirmed with District Counsel Kent Alm that legal fees related to
AB197 should be charged to Self Insurance, Sub Fund B — Employment
Related Risks
Staff Recommendation: Receive the announcements.
11. Suggestions for future agenda items
12. Visit warehouses at Solids Conditioning Building and Materials Control Building
Staff Recommendation: Visit the warehouses and provide input to staff if
needed.
13. Adjournment
* Attachment
sta.
Central Contra Costa Sanitary District
November 18, 2013
TO: BUDGET AND FINANCE COMMITTEE
FROM: THEA VASSALLO, FINANCE MANAGER C)I—e
VIA: ROGER BAILEY, GENERAL MANAGER
SUBJECT: EXPENDITURE FOLLOW -UP
At the November 4, 2013 Budget and Finance Committee meeting, staff was asked to
provide additional information on the following:
Check Date Amount Vendor
103144 10/10/13 $5,527.72 Servicemaster Restoration
197231 10/10/13 $6,454.13 Dept of Toxic Substances
The Servicemaster Restoration invoices include water mitigation services for two
separate locations. The first location was for a sewage overflow clean -up in Pleasant
Hill in the amount of $1,257.12. Servicemaster Restoration performed exterior overflow
clean -up, which included replacement of plants and sod. The second location was in
Walnut Creek, which included exterior clean -up of three residences in the amount of
$4,270.60. Both overflows were included in the Loss Control Report reviewed at the
November 4, 2013 Budget and Finance Committee meeting.
Per Senior Engineer Randy Schmidt, the Department of Toxic Substances Control
(DTSC) conducted the following work during the 2nd quarter of 2013:
Review and approve the November 1, 2012 through April 30, 2013 Semi - Annual
Operation and Maintenance Report for the District's Soil Cap
Follow -up on Terradex Alert No. 0223028 for electrical work north of Imhoff Drive
Review and approve plan to repair multiple seeps in the soil cap on Basin A
South
Attached are a copy of the invoices and the report sent to the DTSC for your review.
r-
Servicamwm
',Cka�,
Bill To
Central Contra Costa Sanitary District
5019 Imhoff PI.
Martinez, CA 94553
ti
Sharj o Inc.
dba ServiceMaster Restoration Services
2121 Diamond Blvd.
Concord, CA 94520
925- 288 -04,79
INVOICE
Invoice # Date
7203 9/25/2013
Jobsite:
315 Strand Avenue
Pleasant Hill, CA
Claim #
Job #
Notes
Terms
N/A
30384
Water Mitigation Services
Due on receipt
Please Remit to: 2121 Diamond Blvd., Concord, CA 94520 TO al $1,257.12
22.
w
[ID I ot ((-�,
10 i= -2-
ServicewASTBR
Clean
8111 To
Ccmtral Cunua Ctnta Sanhar} District
Slily Imhuff PI,
Nhulinut. CA 945U
6
i
Sharjo Inc.
dba ServiceMaster Restoration Services
2121 Diamond Blvd.
Concord, CA 94520
925 -288 -0479
Jobsite:
7; & '17 teal. Knoll t uup
Walnut t rrek. CA
INVOICE
Invoice 0 Date
'131) 9 30•21111
Claim 0
Job #
Notes
Terms
0l1?
ll,itcr \Inigalirn `cniaey
Durum rLmIpt
Please Remit to: 2121 Diamond Blvd., Concord, CA 94520 Total $4,270.60
a08 OAS -99/. /V -ax
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101-1 11,3
pr-_
RETURN WITH REMITTANCE
DEPARTMENT OF TOXIC SUBSTANCES CONTROL (DTSC) Invoice #13SM0857
P.O. Box 806
Sacramento, CA 95812 -0806 09/26/2013
9:48:02
Project Name: CENTRAL CONTRA COSTA SANITARY DISTRICT
Project Code: 200303 - SM
Current Charges (Costs Incurred 04/2013 thru 06/2013 -J ff s = -
Less Advance Payment Applied to Current Charges i NTRAL CONTRA COSTA $8,454.13
SANITARY DISTRICT $0.00
Invoice #13SM0857 Charges ( AGOOLIK r!IPHER AMONT7 $6,454.13
j,00i -0 15(4
Interest Due from Late Payment of Previous Invoices I - N i I Z-01� $000
TOTAL I S�� -S
Total of New Charges Nti71� E fiCC! "rOY C1R a ;Y .
(Invoke #13SM0857 Charges and Late payment Interest) LP OVkD 8Y 38,454.13
PLEASE NOTE: Our records Indicate a total balance (Irm
on this project (Please refer to the Statement of Acco unt for $6,454.13 is now due
mor detailed information.
Agreement Numbers (If applicable):
If paying by EFT, please call (916) 327 -1189 for bank information.
If paying by credit card, please complete the following or contact the Accounting Office at (916) 324 -3150:
Company Name:
Name on Credit Card:
Type of Card:
Card Number.
Total Being Paid:
Signature:
American Express _Discover _Mastercard _Visa
Expiration Date (Mo/Yr)
Telephone No. U _
Please mail the completed payment authorization form to: Accounting Office, Department of Toxic Substances
Control, PO Box 806, Sacramento CA 95812 -0806 or fax to (916) 322 -0274.
Email: By providing your email address, you agree to receive the credit card
receipt by small.
Privacy Statement:
The Information on this form is requested by the Department of Toxic substances Control, Accounting Unit. AD Information Is voluntary. The
purpose of this Information Is to verify the authenticity of the credit card you wish to use to pay your Invoice. Failure to provide answers to any of
the questions may cause your credit card payment request to be denied. For more Information or access to this record, please contact the DTSC
Accounting office at (816) 3243160 or you may write to Department of Toxic Substances Control, Accounting Unit P.O. Box 808, Sacramento.
California 95812 -0808.
THIS SECTION FOR DEPARTMENT USE ONLY
Invoice No.
CID #
Approved Not Approved
Return with Remittance
J
INVOICE
DEPARTMENT OF TOXIC SUBSTANCES CONTROL (DTSC)
P.O. Box 806
invoice #13SM0857
Sacramento, CA 95812 -0806
09/26/2013
9:48:02
Project Name: CENTRAL CONTRA COSTA SANITARY DISTRICT
Project Code: 200303 - SM
Current Charges (Costs Incurred 04/2013 thru 06/2013 )
Less Advance Payment Applied to Current Charges
$6,
Invoice #13SM0857 Charges
$0.13
$0.00
$6,454.13
Interest Due from Late Payment of Previous Invoices
$0.00
Total of New Charges
(Invoice #13SM0857 Charges and Late Payment Interest)
PLEASE NOTE: Our records Indicate a total balance (including the amount noted above) of $6,454.13 Is now due
on this project. (Please refer to the Statement of Account for more detailed information.
Agreement Numbers (if applicable):
RP Copy
$6,454.13
STATEMENT OF ACCOUNT Page 1 of 1
DEPARTMENT OF TOXIC SUBSTANCES CONTROL (DTSC) 13SM0857
P.O. Box 806 09/26/2013
Sacramento, CA 95812 -0808
09:48:02
Project Name: CENTRAL CONTRA COSTA SANITARY DISTRICT
Project Code: 200303 - SM
ACCOUNT BALANCE SUMMARY
Balance Forward from Last Statement (5/10/2013) $7,492.84
Current Charges (04/2013 thru 08/2013): $6,454.13
Advance Applied: $0.00
Invoice #13SM0857 Subtotal $6,454.13
Late Payment Interest $0.00
Payments Received ($7,492,84)
Account Adjustments: $0,00
Total due to DTSC: $6,454.13
BALANCE SUMMARY BY INVOICE
ADVANCE PAYMENT /CREDIT BALANCE DETAIL
Due to varying terms and conditions of advance payment agreements, this account balance is reported separately.
Advance Balance Forward from 05/10/2013 $0.00
Advance Credits Applied to Current Period Charges $0.00
Remaining Advance Payment/Credlt Balance $0.00
PAYMENTS (Since Last Statement)
05/29/2013 Payment Chkft195237 / CENTRAL CONTRA COSTA SANITARY DISTRICT
$7,492.84 Credited as follows:
credit INV#12SM3477 (5/28/2013)
**Total Applied to this Site
**Net Payment Applied to invoices on this Site
*"Total Payment Applied to Site Invoices
ACCOUNT ADJUSTMENTS
No Activity Since Last Statement
$7,492.84
$7,492.84
$7,492.84
$7,492.84
Beginning
Invoice
Invoice #
Balance from
Current
Late Pmt
Account
Ending Balance
Date
5/10/2013
Charges
Interest
Payments
Adjustments
as of 9 /26/2013
12SM3477 5/10/2013
$7,49284
$0 00
$0.00
($7,492.84)
$0.00
$0,00
13SM0857 9/26/2013
$0.00
$6,454.13
$0.00
$0.00
$0.00
$6,454.13
$7,492.84
$8,454.13
$0.00
($7,492.84)
$0.00
$8,464.13
ADVANCE PAYMENT /CREDIT BALANCE DETAIL
Due to varying terms and conditions of advance payment agreements, this account balance is reported separately.
Advance Balance Forward from 05/10/2013 $0.00
Advance Credits Applied to Current Period Charges $0.00
Remaining Advance Payment/Credlt Balance $0.00
PAYMENTS (Since Last Statement)
05/29/2013 Payment Chkft195237 / CENTRAL CONTRA COSTA SANITARY DISTRICT
$7,492.84 Credited as follows:
credit INV#12SM3477 (5/28/2013)
**Total Applied to this Site
**Net Payment Applied to invoices on this Site
*"Total Payment Applied to Site Invoices
ACCOUNT ADJUSTMENTS
No Activity Since Last Statement
$7,492.84
$7,492.84
$7,492.84
$7,492.84
SUMMARY BY ACTIVITY
DEPARTMENT OF TOXIC SUBSTANCES CONTROL (DTSC)
P.O. Box 806
Sacramento, CA 95812 -0806
Project Name: CENTRAL CONTRA COSTA SANITARY DISTRICT
Project Number: 200303 - SM
Direct Labor - 2012/2013
PCA - 11018 - PROJECT MANAGEMENT (CLEANUP)
i
Page 1 of 1
13SM0857
09/26/2013
09:48 :02
Reporting Period: 04/2013 thru 06/2013
Name Title Ad'. Pay Hours Amount
JEMISON C Hazardous Substnc Engr 04/2013 0.50 27.36
JEMISON C Hazardous Substnc Engr 05/2013 1.15 62.92
Subtotal for PCA -11018 1.65 $90.28
PCA - 12018 - PROJECT MANAGEMENT (REIMBURSE)
Name
Title
Ad j. Pay
Hours
Amount
PULJIZ M
Office Techn - Typing
05/2013
0.25
7.62
PEKKE M
Hazardous Substnc Scien
05/2013
11.50
411.47
MURPHY DE
Supvng Hazardous Substnc Engr 1
06/2013
3.00
221.29
PULJIZ M
Office Techn- Typing
06/2013
0.25
7.98
PEKKE M
Hazardous Substnc Scien
06/2013
10.00
374.84
Subtotal for PCA -12018
50.60
$2,546.41
25.00
$1,023.20
PCA - 12019 - TECHNICAL SUPPORT & CONSULTATION (REIMB)
Name
Title
Adj. Pay
Hours
Amount
HUGHES EF
Engineering Geologist
06/2013
0.50
32.33
LEWIS LB
Senior Engineering Geologist
06/2013
0.20
14.34
MEDRANO R
Engineering Geologist
06/2013
23.25
1,386.26
Subtotal for PCA -12019
23.95
$1,432.93
*' Direct Labor - 2012/2013 Totals
50.60
$2,546.41
Indirect Labor - 2012/2013
FY Months Fund Overhead Rate Direct Labor
2012 Jan - Jun TSCA 0557 1.5346 $2,546.41
** Indirect Labor - 2012/2013 Totals $2,546.41
*' Total - 2012/2013 Charges
Total Project 200303 Charges
Overhead Charges
3,907.72
$3,907.72
$6,454.13
$6,454.13
d> 1
\G�a
Department of Toxic Substances Control 406 De
borah O. Raphael, Director
MaMhrrw Rodrigues 1001 "1" Street
Secretary for P.O. Box 808 Edmund G. Brown Jr.
Environmental Protection Sacramento, California 95812 -0808 Governor
September 26, 2013
RANDY SCHMIDT
ASSOCIATE ENGINEER
CENTRAL CONTRA COSTA SANITARY DISTRICT
5019 IMHOFF PLACE
MARTINEZ, CA 94553 -4392
Project Name: CENTRAL CONTRA COSTA SANITARY DISTRICT
Project Code: 200303 (SM)
Dear MR. SCHMIDT:
The attached Summary by Activity report details the costs incurred by the Department of Toxic
Substances Control (DTSC) in the period April 01, 2013 to June 30, 2013 on the above
referenced project.
As disclosed on the attached Invoice, number 13SM0857, new charges totaling $6,454.13 are
due to DTSC.
As shown on the Statement of Account, the total balance due on this project for all billed periods
is $6,454.13.
Please send your check or money order payable to the Department of Toxic Substances Control
in U.S. Funds with one copy of the enclosed invoice to:
Department of Toxic Substances Control
Accounting Unit
P.O. Box 806
Sacramento, CA 95812 -0806
Please note that a Statement of Account is attached for your information. The Statement of
Account is designed to aid in monitoring your account status with DTSC by providing information
similar to that which is provided with popular credit card billing statements. If you have questions
regarding the Statement of Account, please contact Jeanne Wong at (916) 323 -3251.
Pursuant to Health and Safety Code section 25269.4, the indirect cost rate for the period
January 01, 2013 to June 30, 2013, is 153.46 percent of the direct labor costs. This rate is final
and will not be subject to retroactive adjustment.
6J Printed on Recycled Paper
RANDY SCHMIDT
September 26, 2013
Page 2
In addition, Assembly Bill 1651, Statutes of 1996, amended Health and Safety Code section
25360 to provide that any unpaid balance due to DTSC will be subject to interest charges from
the date of the invoice. To encourage prompt payment of invoices, DTSC will waive interest
charges when full payment is received within 60 days of the invoice date. Unpaid amounts
outstanding more than 60 days accrue interest from the date of the invoice until payment is
received. Late- payment interest charges appear on subsequent billing statements. Partial
payment will be applied to the outstanding invoice and interest balances on a pro-rata basis.
The interest rate used in calculating the late- payment interest charge is equal to the same rate of
return earned on investment in the Surplus Money Investment Fund (SMIF). For the period
July 01, 2013, to September 30, 2013, the SMIF interest rate is 0.246 percent. The rate will be
updated every three months and announced in subsequent billing letters. If you are in litigation
with DTSC, any late payment interest charge in this bill will be supplanted by interest pursuant to
the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).
RANDY SCHMIDT
September 26, 2013
Page 3
Thank you for your cooperation in this matter. if you have questions regarding RP
determinations, settlement negotiations, or services rendered, please contact your project
manager at the address below:
Department of Toxic Substance Control
CLEANUP OPERATIONS, NORTH COAST
700 HEINZ AVE
BERKELEY, CA 94710 -2721
(510) 540 -2122
Copy of invoice provided to the following:
Jeanne Wong
Department of Toxic Substances Control
Cost Recovery Unit
P.O. Box 806
Sacramento, California 95812 -0806
(916) 323 -3251
RANDY SCHMIDT
September 26, 2013
Page 4
I
Department of Toxic Substances Control
Summary of Cost Recovery and Reimbursement Policies
October 28, 2011
The Department of Toxic Substances Control (DTSC) is required to recover all identifiable state
costs. In addition to direct costs incurred by DTSC contractors and DTSC staff who are working
on site - specific activities, DTSC also bills its indirect costs associated with direct staff costs.
Such indirect costs are only applied to DTSC direct labor costs and not to DTSC contractor costs
or DTSC staff travel costs.
DTSC calculates separate indirect cost rates for DTSC overhead associated with each of its
major programs. Because the ratio of direct to indirect costs varies among DTSC's various
programs (Site Mitigation, Hazardous Waste Management, and Science, Pollution Prevention &
Technology), the indirect cost rates associated with those programs will also vary. These indirect
cost rates are updated every six months.
Effective January 1, 1997, several changes to the Health and Safety Code were made by
Assembly Bill 1651 (AB 1651) which affected our billing process. AB 1651 eliminated the 10
percent administrative charge; therefore, billings-after January 1, 1997, will no longer reflect this
charge unless it is mandated by a pre - existing agreement. DTSC will also waive previously billed
10 percent administrative charges unless such charges were specified in an agreement or were
charged in a period which has been settled.
AB 1651 imposes interest charges applied from the date of the demand equal to the rate of
return earned on investment from the Surplus Money Investment Fund for DTSC billings issued
after January 1, 1997. It is DTSC's policy to waive the interest charges if the payment is received
within 60 days (or other time period specified by a pre- existing agreement) of the date of the
invoice. The interest rate will be specified in the billing letter. Partial Payment will be applied to
the outstanding invoice and interest balances on a pro -rata basis.
In general, DTSC submits bills to persons liable for costs on a quarterly basis. These billings,
together with a summary of the work performed by DTSC, identify the names of staff and the
number of hours staff directly charged to each site for the billing period.
RANDY SCHMIDT
September 26, 2013
Page 5
DTSC staff track their work activity on a daily basis and submit a monthly time sheet accounting
for all of their work hours. Time sheets contain the basis for our activity charges. In addition,
staff maintain daily logs which provide additional detail of site - specific work activities. Both
documents will be made available for review upon request to the DTSC project manager.
DTSC's policy is to meet with persons liable for costs whenever necessary and appropriate to
discuss project work plans, time lines, budget and cost estimates, outputs, and related issues.
Such discussions are initiated at the outset of each new project and at the beginning of each new
major phase of activity for ongoing projects. DTSC's projected budgets are comprehensive and
include estimates of all DTSC charges which Include staff hours that are anticipated to be directly
charged to the project and estimated indirect charges. The estimates are updated as necessary
based on emerging information and project- specific developments.
If you have a dispute regarding the charges or related services appearing on the invoice you
received from DTSC, you may file a formal dispute by notifying DTSC in writing within 45 days
from the date of the invoice. The notice must state the reasons for the dispute and should be
addressed to:
Chief, Collections and Resolution Unit
Department of Toxic Substances Control
P.O. Box 806
Sacramento, CA 95812 -0806
(916) 322 -0481
A copy of the notice of dispute letter should be sent to the Regional Branch Chief at the address
listed in the billing letter.
If you are disputing only a portion of the costs included in the invoice, you should pay for those
costs that are not being disputed. Filing a formal dispute will not stay the imposition of the
interest charges that were discussed previously in the Interest section of this policy summary.
Payments for the undisputed costs received within 60 days of the date of the invoice will waive
the interest related to those costs.
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HIGHMARK�'
CAPITAL MANAGEMENT
October 23, 2013
Ms.Thea Vassallo
Finance Manager
Central Contra Costa Sanitary District
5019 Imhoff Place
Martinez, CA 94553 -4392
Dear Thea,
The stock market rally in the third quarter was both broad and global in nature.
The S &P500 returned 5.3% and the MSCI SAFE Index was up11.6 %.
Domestically, the market's preference was for higher growth, lower market cap
related issues. Large cap growth stocks outperformed large cap value by almost
5% in the quarter. While investors received mixed signals from the Fed in the
quarter, investors have begun to discount some type of a rise in interest rates, as
manifested by the sell off in the higher dividend yielding sectors — utilities,
telecommunications, and consumer staples. Cyclical and economically sensitive
stocks have led this rally.
Fixed income markets turned in another lackluster performance in the quarter,
with the Barclays Aggregate Index returning 0.58 %. Investment -grade corporate
bonds, agency mortgage - backed securities and U.S. Treasuries posted positive
returns. The fixed income markets were volatile due to the uncertainty of U.S.
Federal Reserve stimulus and tapering of government bond purchases.
One of the main drivers to both the stock market and the bond market volatility in
the quarter centered on the Fed, and their communications related to the
potential to taper their purchases of U.S. Treasury and Mortgage debt. Most
market participants felt that the Federal Reserve was going to announce in
September plans to reduce debt purchases. However, the Fed surprised many
by deciding not to taper U.S. Treasury and agency mortgage purchases. This
decision was greeted favorably by equity investors, sending the S &P500 up over
3% in September.
Almost all of the gains we have seen in the market have been driven by
valuation; little, if any, of the rally has been driven by earnings growth. The
earnings per share forecast for the S &P 500 has remained stable at about 110
dollars per share for virtually the whole year, while the rally in prices has driven
the Price - Earnings Ratio (P /E) from 14.1 to 16.2. While further improvement in
economic indicators and tame inflation can, and likely will, propel the market
higher, from a long -term perspective, valuation levels are not supportive of
substantial long -term stock market appreciation. The market has been pricing in
an environment of stable inflation (1.5 % -2 %), and 10 -year interest rates of about
4 -4.5 %. While such conditions can produce high valuation levels, they must, at
some point, be justified by earnings, which have yet to materialize. With this in
mind, we have been underweight equities in the Plan throughout the
quarter.
During the quarter, we eliminated our REIT position. We initiated our REIT
allocation in December of 2009. It has performed well over our investment
horizon. We feel though that this sector is both over - valued, and will suffer as
interest rates begin to rise in the near future. A rising interest rate environment
will pressure REIT returns as investors begin to find alternative sources of
higher - yielding type of investments. As well, REITs rely on borrowing capital to
fund their operations, and higher borrowing costs may also dampen earning
returns.
The Plan returned 4.29% in the third quarter. Large cap, mid cap, small cap, and
our fixed income segment outperformed their primary benchmark targets. In our
performance report, REITs appear to have outperformed the Wilshire REIT
benchmark by over 4 %. This is a bit incomplete as we had sold out of our REIT
position before the end of the quarter. International equities lagged somewhat
during the quarter. The Plan's emerging market allocation performed well,
compared to other emerging market funds, with the Schroder Emerging Market
Fund returning 7.1 % vs. the emerging market index return of 5 %. However,
emerging markets continue to lag developed market indices.
Best regards,
Andrew Brown
Central Contra Costa Sanitary District
Third Quarter 2013
Presented by
Andrew Brown, CFA
J HIGHMARKO
CAPITAL MANAGEMENT
xr
CCCSD
Asset Allocation
Total Assets: $31,304,597
Period Ending 9 -30 -13
3Q13 Return: 4.29%
1 Year Return: 10.41 %
Inception -to -Date Return: 13.24%
Inception Date: 4 -1 -2009
Fixed Income
$15,421,022
49.2%
Cash
$1,177,610
R%
JHIGHMARVD September 30, 2013 PARS: Central Contra Costa Sanitary District
CAPITAL MANAGEMENT
Equity
$ 14,705,966
47.0%
Selected Period Performance
PARS /CENTRAL CONTRA COSTA SANT PRHCP
Account 6746030600
Period Ending: 09/30/2013
Account Inception: 4/1/2009
Returns are gross -of -fees unless otherwise noted. Returns for periods over one year are annualized. The information presented has been
obtained from sources believed to be accurate and reliable.
Past performance is not indicative of future returns. Securities are not FDIC insured, have no bank guarantee, and may lose value.
HIGHMARK® September 30, 2013 PARS: Central Contra Costa Sanitary District
CAPITAL MANAGEMENT
Year
Inception
to Date
to Date
Sector
3 Months
(9 Months)
1 Year
3 Years
(54 Months)
Cash Equivalents
.00
.01
.02
.02
.13
iMoneyNet, Inc. Taxable
00
.02
.02
.01
.02
Total Fixed Income
.73
-1.26
-.29
3.39
6.48
BC US Aggregate Bd Index
.58
-1.88
-1.67
2.88
4.97
Total Equities
8.51
20.58
22.59
14.37
20.13
Large Cap Funds
7.67
22.22
22.99
15.35
19.42
S &P 500 Composite Index
5.25
19.81
19.35
16.26
20.56
Mid Cap Funds
8.08
22.06
23.97
16.26
Russell Midcap Index
7.70
24.33
27.91
17.52
25.51
Small Cap Funds
12.17
32.57
34.83
21.66
27.36
Russell 2000 Index
10.21
27.69
30.05
18.28
24.70
International Equities
8.64
4.33
10.34
3.33
15.30
MSCI EAFE Index
11.57
16.15
23.78
8.48
16.33
MSCI EM Free Index
5.76
-4.38
.96
-.34
15.84
REITs
1.36
6.45
Wilshire REIT Index
-3.03
2.73
5.28
12.49
30.41
Total Managed Portfolio
4.29
8.88
10.41
9.03
13.24
Account Inception: 4/1/2009
Returns are gross -of -fees unless otherwise noted. Returns for periods over one year are annualized. The information presented has been
obtained from sources believed to be accurate and reliable.
Past performance is not indicative of future returns. Securities are not FDIC insured, have no bank guarantee, and may lose value.
HIGHMARK® September 30, 2013 PARS: Central Contra Costa Sanitary District
CAPITAL MANAGEMENT
ASSET ALLOCATION
As of September 30, 2013
Current Asset Allocation Investment Vehicle
Equity
46.98%
Range: 40 %-60%
14,705,966
Large Cap Core
4.66%
SMGIX
Columbia Contrarian Core Cl Z
1,459,365
4.42%
SICWX
Sentinel Common Stock Fd Cl 1
1,383,015
Large Cap Value
3.44%
PRFDX
T. Rowe Price Equity Income Fund
1,078,256
4.41%
LSGIX
Loomis Sayles Value Fund
1,379,478
Large Cap Growth
4.97%
HACAX
Harbor Capital Appreciation Instl
1,555,856
4.99%
PRGFX
T. Rowe Price Growth Stock Fund
1,563,069
Mid Cap Value
2.47%
TIMVX
TIAA -CREF Mid -Cap Value Instl
773,497
Mid Cap Growth
3.00%
NWHYX
Nationwide Geneva Mid Cap Growth Fund
938,502
Small Cap Value
2.26%
NSVAX
Columbia Small Cap Value Fund II
705,950
Small Cap Growth
3.25%
PRNHX
T. Rowe Price New Horizons Fund
1,017,960
International Core
2.24%
NWHNX
Nationwide Bailard Intl Equities Fund
700,409
International Value
2.21%
DODFX
Dodge & Cox International Stock Fund
692,497
International Growth
1.48%
MQGIX
MFS International Growth Fund
464,350
Emerging Markets
3.17%
SEMNX
Schroder Emerging Market Equity
993,759
Fixed Income
49.26%
Range: 40 %-60%
15,421,022
Short -Term
12.86%
VFSUX
Vanguard Short -Term Corp Adm Fund
4,027,309
Intermediate -Term
17.17%
NWJJX
Nationwide HighMark Bond Fund
5,374,232
17.22%
PTTRX
PIMCO Total Return Instl Fund
5,389,596
High Yield
2.01%
PHIYX
PIMCO High Yield Instl Fund
629,885
Cash 3.76% Range: 0 %-20 % 1,177, 610
3.76% FPZXX First American Prime Obligations Fund 1,177,610
TOTAL 100.00% $31,304,597
,/ HIGHMARK September 30, 2013 PARS: Central Contra Costa Sanitary District
CAPITAL MANAGEMENT
PARS /CENTRAL CONTRA COSTA SANITARY DISTRICT
For Period Ending September 30, 2013
Data Source: Morningstar, SD Investments
Returns less than one year are not annualized. Past performance is not indicative of future returns. The information presented has been obtained from sources
believed accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value.
AHIGHMARKs September 30, 2013 PARS: Central Contra Costa Sanitary District
CAPITAL MANAGEMENT
3 -Month
YTD
1 -Year
3 -Year
5 -Year
Nationwide HighMark Bond In$vc
Fund Name
Inception
Return
Rank
Return
Rank
Return
Rank
Return
Rank
Return
Rank
Columbia Contrarian Core Cl Z
(6/11)
6.72
24
22.82
17
23.37
20
17.92
6
12.09
6
T. Rowe Price Equity Income
(8/10)
4.57
43
19.34
61
21.63
46
15.51
33
9.36
33
Harbor Capital Appreciation Instl
(7/10)
12.38
11
22.98
27
21.47
35
16.85
24
12.43
22
Loomis Sayles Value Fund
(8/11)
5.38
21
22.26
20
24.65
19
16.86
10
9.00
43
Sentinel Common Stock I'd Cl 1
(6/12)
5.03
74
20.01
43
21.03
41
15.97
29
10.34
20
T. Rowe Price Growth Stock
11.86
15
24.33
17
23.03
25
17.69
12
13.38
14
Idx: Russell 1000
6.02
-
20.76
20.91
16.64
10.53
-
MID CAP
EQUITY
FUNDS
TIAA -CREF Mid -Cap Value Instl
(2/10)
6.29
60
22.18
70
26.55
67
16.09
45
11.13
66
Idx: Russell Mid Cap Value
5.89
22.94
27.77
-
17.27
11.86
-
Nationwide Geneva Mid Cap Growth
(2/10)
10.62
34
22.28
72
21.27
87
16.85
32
12.83
32
Idx: Russell Mid Cap Growth
9.34
-
25.42
27.54
-
17.65
13.92
SMALL
CAP FQUITY
FUNDS
Columbia Small Cap Value II Z
10.20
6
29.00
14
33.47
19
18.87
13
11.56
38
Idx: Russell 2000 Value
7.59
23.07
27.04
16.57
9.13
-
T. Rowe Price New Horizons
14.32
20
37.17
12
36.10
11
26.09
1
19.51
1
Idx: Russell 2000 Growth
12.80
-
32.47
33.07
-
19.96
13.17
-
INTERNATIONAL
•
Dodge & Cox International Stock
11.15
22
17.15
7
27.76
3
8.75
20
8.11
13
Nationwide Bailard Intl Eqs InSvc
10.00
53
12.05
59
20.46
47
7.09
55
5.58
55
MFS International Growth 1
9.63
49
10.30
62
16.57
54
8.89
37
8.90
22
Idx: MSCI EAFE
11.56
16.14
23.77
8.47
6.35
Schroder Emerging Market Equity
(11112)
7.15
26
-4.14
50
2.64
45
1.34
26
7.98
19
Idx: MSCI Emerging Markets
5.01
-6.42
-
-1.52
-
-2.81
4.64
-
REIT
EQUITY FUNDS
Nuveen Real Estate Secs Y
-2.59
36
2.34
35
4.94
25
12.15
13
7.18
12
Idx: Wilshire REIT
-3.03
2.73
5.28
-
12.49
5.56
-
Data Source: Morningstar, SD Investments
Returns less than one year are not annualized. Past performance is not indicative of future returns. The information presented has been obtained from sources
believed accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value.
AHIGHMARKs September 30, 2013 PARS: Central Contra Costa Sanitary District
CAPITAL MANAGEMENT
Nationwide HighMark Bond In$vc
0.41
74
-1.79
46
-1.02
44
3.50
41
6.63
42
Pimco Total Return Instl
1.17
6
-1.89
52
-0.74
34
3.77
33
7.96
16
Vanguard Short-Term Investment -Grade Adm
0.95
12
0.47
25
1.04
25
2.34
23
4.72
21
BarCap US Aggregate Bond
0.57
-1.89
-1.68
-
2.86
-
5.41
Pimco High Yield Inst'I (6) (2/12)
2.05
59
2.72
71
6.00
62
7.85
60
11.85
26
Credit Suisse High Yield Index
2.39
-
3.94
7.21
9.06
12.50
Data Source: Morningstar, SD Investments
Returns less than one year are not annualized. Past performance is not indicative of future returns. The information presented has been obtained from sources
believed accurate and reliable. Securities are not FDIC insured, have no bank guarantee and may lose value.
AHIGHMARKs September 30, 2013 PARS: Central Contra Costa Sanitary District
CAPITAL MANAGEMENT
CENTRAL CONTRA COSTA SANITARY DISTRICT
IMPLEMENTATION OF GASB STATEMENT NO. 51
ACCOUNTING AND FINANCIAL REPORTING FOR INTANGIBLE ASSETS
Summarized on September 5, 2013
Description of Statement No. 51 Ruling and Objective
Governmental Standards Accounting Board (GASB) Statement No. 51 was
issued in June of 2007 and required that intangible assets be classified as capital
assets. An intangible asset lacks physical substance, is non - financial in nature
and has a useful life extending beyond one year. Governments typically possess
many different types of assets that could be considered intangible assets such as
easements, water rights, timber rights, patents, trademarks, and in -house
generated computer software.
The objective of this Statement is to establish accounting and financial reporting
requirements for intangible assets to reduce inconsistencies, thereby enhancing
the comparability of financial reports among state and local governments.
District Implementation of Statement No. 51
Generally, the only intangible assets the District recognizes are easements.
Prior to Statement No. 51, easements acquired at a cost to the District were
generally capitalized as collection systems assets. After Statement No. 51
implementation, easements acquired at a cost to the District are capitalized as
intangible assets. Easements acquired at no cost are considered to have no
value and are not recorded in the financial statements.
The District implemented Statement No. 51 one year early by recording
intangible asset easements of $1.5 million in the fiscal year ended June 30,
2009. Almost $1.0 million of this amount came from District Project 8179 - District
Easement Acquisitions, which mainly tracked staff and legal work to acquire
easements from 1999 through 2009. During the fiscal year ended June 30, 2010
audit, the District was recognized as formally implementing the ruling and total
intangible assets had increased to $1.8 million. The audit footnote from 2010
stated that the implementation of the provisions of this standard did not have a
material effect on the financial statements because intangible assets only made
up 0.3% of total capital assets. A table is provided at the end of this report that
summarizes intangible asset activity and comparison to total capital assets.
District Accounting Procedures
Accounting determines the value of easements each year. A new account was
created within the Sewer Construction Fund to track the cost of permanent
easements. This account is reviewed at year -end. Also, when a capital project
CENTRAL CONTRA COSTA SANITARY DISTRICT
IMPLEMENTATION OF GASB STATEMENT NO. 51
ACCOUNTING AND FINANCIAL REPORTING FOR INTANGIBLE ASSETS
Summarized on September 5, 2013
closes, the Project Manager is required to complete the Capital Project Closeout
Asset Summary Form (Attachment One). The information on these forms is used
to classify assets in the audited financial statements. There is a section in the
form where intangible assets can be noted.
Additionally, it is also interesting to note that IRS Form 1099 -S forms must be
prepared and issued to those we have paid for a permanent easement at a cost
greater than $600. The new account number created for capitalizing intangible
easements also is used in the year -end 1099 process. Temporary easements
and right -of -way payments are not capitalized, but 1099 -MISC forms are issued
to payees if the amount paid exceeds $600.
The table below summarizes GASB Statement No. 51 required Intangible Asset
activity from Fiscal Year 2008 -09 through 2011 -12:
CENTRAL CONTRA COSTA SANITARY DISTRICT
INTANGIBLE ASSETS ACTIVITY SUMMARY
FISCAL YEAR ENDING JUNE 30, 2009 THROUGH JUNE 30, 2012
% of
Fiscal
Net Book Value
Intangible
Year
Intangible
Intangible Asset
of Intangible
Net Book Value of
to Total
Ending
Assets
Depreciation
Assets
All Capital Assets
Assets
06/30/09
$ 1,521,424
10,143
1,511,281
$ 578,889,989
0.26%
06/30/10
1,806,272
32,327
1,773,945
586,785,154
0.30%
06/30/11
2,058,921
(58,095)
2,000,826
593,461,791
0.34%
06/30/12
2,463,834
(88,247)
2,375,587
597,689,744
0.40%
Up until the 2013 -14 fiscal year, easements have been recorded as intangible
assets and were depreciated over the useful life of the pipe in the ground for
which the easement is necessary (75 years). After further review of Statement
No. 51 and discussion with our new auditors, Maze and Associates, we learned
that permanent easements are perpetual, that is, they have an indefinite useful
file. Intangible assets without a defined useful life should not be depreciated per
Statement No. 51 rules and are similar to land purchases. Our intangible assets
represent easements, and no further depreciation will be recorded. Previous
depreciation deemed appropriate by our prior auditors will not be reversed.
We stated above that temporary easements are not capitalized. Most temporary
easements do not exceed 2 years, so the cost of obtaining these easements,
even if recorded in a capital project, will be removed from capital project costs
and will be expensed at year -end.
CAPITAL PROJECT CLOSE OUT
ASSET SUMMARY FORM
Project Number: Date:
Project Manager:
Project Title:
Project Location / Description:
Total Cost:
Date Received in Accounting: Date Processed:
Please mark applicable boxes:
Yes No
1. I lWas a new asset(s) created?
2.1 Was an existing asset improved?
If yes, brief description
3.1 1 Did this project include any repairs to an existing asset?
If yes, were the repairs ordinary (having a life of one year or less)?
If yes, $$ (to be expensed) and description
Did the repair extend the useful life of the original asset greater than one year?
If yes, what was the extended life?
4. Are there any prior assets associated with this project that no longer exist or
should be written off? For example, old, obsolete or retired assets.
If yes, brief description
Estimated Original Cost (best guess) $
Estimated purchase /construction date (best guess)
5.1 1 Were there any easements or right of way acquisitions purchased during the
project? If yes, brief description
and cost $ _
6.1 Were any pre- existing assets related to this project sold?
If yes, brief description
Estimated Original Cost (best guess) $
Estimated purchase /construction date (best guess)
7.1 1 Are there any environmental clean -up or testing issues related to
this project? If yes, brief description
8. Please indicate on page 2, estimated % allocation of total project cost. Note % totals from all
sections should equal 100 %. (Example: TP, Primary/ Structure 80 %, TP Primary/Equipment 10 %,
Furniture & Equipment 10% = 100% Grand Total All Sections.)
YE CIBA FORM Page 1 11/14/2013
8. Continued
Years of Years of
Useful Life °ro Useful Life
Treatment Plant
Operations
50
Foundation
40
Structure
40
Equipment
20
Primary
50
Foundation
40
Structure
40
Equipment
20
Secondary
20
Foundation
40
Structure
40
Equipment
20
Solids
Foundation
40
Structure
40
Equipment
20
Filtration
Foundation
40
Structure
40
Equipment
20
Total This Section
Recycled Water
Foundation
40
Structure
40
Equipment
20
Total This Section
Pumping Stations
Foundation 40
Structure 40
Equipment 20
Pumps 25
Total This Section
Outfall Sewers 75
Sewage Collection Facilities
Trunks 75
Mains 75
Total This Section
Furniture & Equipment
Furniture 15
Equipment 10
Computers 5
Total This Section
Vehicles
Automobiles & Light Trucks 7
Large Trucks & Field Equipment 15
Total This Section
Contributed Assets
Trunks 75
Mains 75
Total This Section
Buildings
HOB - Foundation
50
HOB - Structure
50
HOB - Equipment
20
W.C. - Foundation
50
W.C. - Structure
50
W.C. - Equipment
20
HHW - Foundation
50
HHW - Structure
50
HHW - Equipment
20
Total This Section
Land N/A
F tangible Assets
asements & Right of Way Acquisitions 75
8. GRAND TOTAL ALL SECTIONS 100%
Other comments:
YE CIBA FORM Page 2 11/14/2013
FIGURE 1
ALLOWABLE INVESTMENT INSTRUMENTS PER STATE GOVERNMENT
CODE (AS OF JANUARY 1, 2013)" APPLICABLE TO ALL LOCAL AGENCIESB
See Table of Notes for Figure 1' on the next page for footnotes related to this figure
0::�b
12 LOCAL AGENCY INVESTMENT GUIDELINES J
• W1
"
iii
0@0W
,`
uC�TA Eti
'T? 9 ;
I k
Local Agency Bonds
5 years
None
None
U.S. Treasury Obligations
5 years
None
None
State Obligations —
CA And Others
5 years
None
None
CA Local Agency
Obligations
5 years
None
None
U.S Agency Obligations
5 years
None
None
Bankers' Acceptances
180 days
400/6"
None
"A -1" if the issuer
Commercial Paper—
25% of the
has issued long -
Select Agencies`
270 days
agency's
term debt it must
moneys
be rated A' without
regard to modifiers"
"A -1" if the issuer
Commercial Paper—
40% of the
has Issued long -
Other Agencies'
270 days
agency's
term debt it must
money'
be rated "A" without
regard to modifiers"
Negotiable Certificates
_
of Deposit
5 years
30% K
None
CD Placement Service
5 years
300kK
None
Repurchase Agreements
1 year
None
None
Reverse Repurchase
20% of the
Agreements and Securities
92 daySL
base value of
Nonev
Lending Agreements
the portfolio
Medium -Term Notes"
5 years
30%
"A" Rating
Mutual Funds And Money
Market Mutual Funds
N/A
20 %°
Multiple ",O
Collateralized Bank
Deposits
5 years
None
None
Mortgage Pass- Through
Securities
5 years
20%
"AN' Rating"
Bank/Time Deposits
5 years
None
None
County Pooled
Investment Funds
N/A
None
None
Joint Powers Authority Pool
N/A
None
Multiples
Local Agency Investment
Fund (LAIF)
N/A
None
None
Voluntary Investment
Program FundT
N /A
None
None
0::�b
12 LOCAL AGENCY INVESTMENT GUIDELINES J
Schedule of Allowable Investments
And Current Rate of Return
As of October 21, 2013
Liquid
Current Investments
LAW 0.27%
Allowable Investments
US Treasury -
CD's -
Commercial Paper -
Federal Agency Notes -
Medium Term Notes (not currently available)
Board Policy Obiectives
1. Liquidity
2. Safety
3. Return /Yield
3 -mo 6 -mo 9 -mo 1 year 2 year
0.03%
0.06% - 0.11% 0.31%
0.16%
0.24% - 0.30% -
0.16%
0.24% 0.27% -
0.02%
0.05% 0.09% 0.11%
Source. Information provided by Contra Costa County.
Government Code Objectives
1. Safety
2. Liquidity
3. Return /Yield
N: \ADMINSUP \ADMIN \FINANCE MANAGER \Investment \Copy of Investment Returns Oct 2013
Central Contra Costa Sanitary District
Summary of Cash & Investments
Future Month Estimates in Italics
It Service Reserve Investments (5,393,000)
Insurance Fund Cash & Investments (3,872,000)
n Muir Grave Easement in Escrow (100,000)'.
it Restricted Cash to aac nnm
6/30/13
July Activity Per Monthly Financial Statements
CCCERA Prepayment (16,200,000)
All Other Net Impacts to Cash & Investments (5,785,000)
Increase/(Decrease) to Cash & Investments (21,985,000)
Unrestricted Spendable Cash @ 07/31/13 31,377,000
August Activity
City of Concord Payment (O &M and HHW)
City of Concord (Partial Capital Bill Payment)
Debt & Interest Payment from SC Fund
All Other Net Impacts to Cash & Investments
Increase/(Decrease) to Cash & Investments
11,193,000
1,317,629
(4,010,000)
(7,380,629)
1,120,000
Unrestricted Spendable Cash ® 08/31/13 32,497,000
September Activity
City of Concord Capital Bill Final Payment
All Other Net Impacts to Cash & Investments
Increase/(Decrease) to Cash & Investments
2,299,000
(4,376,000)
(2,077,000)
Unrestricted Spendable Cash ® 09/30/13 30,420,000
October, 2013
Net Impact to Cash & Investments (5,452,000)
Increasel(Decrease) to Cash & Investments (5,452,000)
November, 2013 Estimates
2012 -13 Audit (Rounded)
Cash & Cash Equivalents
46,715,000
Short Term Investments
10,499,000
Restricted Cash & Investments (Muir)
100,000
Restricted Investments (Debt)
5,413,000
Total Cash & Investments at 6/30/2013
62,727,000
It Service Reserve Investments (5,393,000)
Insurance Fund Cash & Investments (3,872,000)
n Muir Grave Easement in Escrow (100,000)'.
it Restricted Cash to aac nnm
6/30/13
July Activity Per Monthly Financial Statements
CCCERA Prepayment (16,200,000)
All Other Net Impacts to Cash & Investments (5,785,000)
Increase/(Decrease) to Cash & Investments (21,985,000)
Unrestricted Spendable Cash @ 07/31/13 31,377,000
August Activity
City of Concord Payment (O &M and HHW)
City of Concord (Partial Capital Bill Payment)
Debt & Interest Payment from SC Fund
All Other Net Impacts to Cash & Investments
Increase/(Decrease) to Cash & Investments
11,193,000
1,317,629
(4,010,000)
(7,380,629)
1,120,000
Unrestricted Spendable Cash ® 08/31/13 32,497,000
September Activity
City of Concord Capital Bill Final Payment
All Other Net Impacts to Cash & Investments
Increase/(Decrease) to Cash & Investments
2,299,000
(4,376,000)
(2,077,000)
Unrestricted Spendable Cash ® 09/30/13 30,420,000
October, 2013
Net Impact to Cash & Investments (5,452,000)
Increasel(Decrease) to Cash & Investments (5,452,000)
November, 2013 Estimates
Net Impact to Cash & Investments - Estimate
(6,000,000)
Increase/(Decrease) to Cash & Investments
(6,000,000)
Unrestricted Spendable Cash ® 11130113
18,968,000
December, 2013 (Partial Month up until CCC SSC & Tax Is Deposited)
Net Impact to Cash & Investments - Estimate
(3,000,000)
Increase/(Decrease) to Cash & Investments
(3,000,000)
Unrestricted Spendable Cash ® 12120113
1519681000
Total Draw to Cash and Investments 711113 - 12/20/13 (37,394,000)
Total Funds Required from January 201310 -year plan 38,000,000
Variance 606,000
11 1312013 6 12 PM N ACCOUNTING GMTEMPt CASHPLOY November 2013 Rounded Summary
Central Contra Costa Sanitary District
5019 Imhoff Place. Martinez. [A 94553
Comprehensive
Annual Financial Report___
Ultra Violet Disinfection Unit
CENTRAL CONTRA COSTA SANITARY DISTRICT
MARTINEZ, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2013
Prepared By:
Finance & Accounting Division
CENTRAL CONTRA COSTA SANITARY DISTRICT
Comprehensive Annual Financial Report
Table of Contents
For the Year Ended June 30, 2013
INTRODUCTORY SECTION:
Letterof Transmittal ................................................................ ............................... i
Board of Directors ................................................................ ............................... vii
MissionStatement .................................... ............................... ...........................viii
OrganizationChart ................................................................ ............................... ix
Mapof Service Area .............................................................. ............................... x
Certificate of Achievement .................................................... ............................... xi
FINANCIAL SECTION:
Independent Auditors' Report ................................................. ..............................1
Management's Discussion and Analysis ................................. ..............................3
Changes in Net Position and Statement of Net Position -
Basic Financial Statements
LastTen Fiscal Years ..................................................... ...............................
Statement of Net Position ............................................ .............................10
Revenue by Type - Last Ten Fiscal Years ......................... ...............................
Statement of Revenues, Expenses and Changes in Net Position ............
11
Statement of Cash Flows .......................................... ..........................12
-13
Notes to Financial Statements — The accompanying notes are an
Last Ten Fiscal Years ..................................................... ...............................
integral part of the basic financial statements .......... ..........................15
-37
Supplementary Information
LastTen Fiscal Years ..................................................... ...............................
Combining Schedule of Statement of Net Position ...... .............................41
Assessed and Estimated Actual Valuation of Taxable Property -
Combining Schedule of Statement of Revenues, Expenses and
Last Ten Fiscal Years ..................................................... ...............................
Changes in Net Position — Enterprise Sub -Funds ..... .............................42
Property Tax and Sewer Service Charge Fees Levied and Collected -
Schedule of Running Expenses - Comparison of Budget and Actual
Last Ten Fiscal Years ..................................................... ...............................
Expenses by Department .......................................... .............................43
Running Expense - Schedule of Supplemental Net Position Analysis
.....44
STATISTICAL SECTION (Unaudited):
Changes in Net Position and Statement of Net Position -
LastTen Fiscal Years ..................................................... ...............................
S -1
Revenue by Type - Last Ten Fiscal Years ......................... ...............................
S -2
Operating Expenses by Type - Last Ten Fiscal Years ....... ...............................
S -3
Major Revenue Base and Rates - Historical and Current Fees -
Last Ten Fiscal Years ..................................................... ...............................
S -4
Sewer Service Charge - List of Ten Largest Customers -
LastTen Fiscal Years ..................................................... ...............................
S -5
Assessed and Estimated Actual Valuation of Taxable Property -
Last Ten Fiscal Years ..................................................... ...............................
S -6
Property Tax and Sewer Service Charge Fees Levied and Collected -
Last Ten Fiscal Years ..................................................... ...............................
S -6
Summary of Debt Service - Type, Debt Service Coverage, Debt Ratio -
Last Ten Fiscal Years ..................................................... ............................... S -7
Demographic and Economic Data - Population Served -
Last Ten Calendar Years ................................................ ............................... S -8
List of Ten Largest Employers in Contra Costa County -
Last Year and Eleven Years Ago .................................... ............................... S -8
Demographic and Economic Statistics - Contra Costa County -
LastTen Fiscal Years ..................................................... ............................... S -9
Full -time Equivalent Employees by Department - Last Ten Fiscal Years........ S -10
Number of Retirees and Surviving Spouses - Last Ten Fiscal Years .............. S -10
Capital Asset and Operating Statistics - Last Ten Calendar or Fiscal Years.. S -11
Miscellaneous Statistics ................................................... ............................... S -11
(THIS PAGE INTENTIONALLY LEFT BLANK)
Central Contra Costa Sanitary District
Introductory
Section
Central Contra
November 13, 2013
Central Contra Costa Sanitary District Ratepayers and
The Honorable Board of Directors,
Martinez, California:
itary District
State law requires that every general - purpose local government publish within six
months of the close of each fiscal year a complete set of audited financial statements.
This report is published to fulfill that requirement for the fiscal year ended June 30,
2013.
Management of Central Contra Costa Sanitary District assumes full responsibility for the
completeness and reliability of the information in these financial statements, based upon
a comprehensive system of internal controls that is established for this purpose.
Because the cost of internal control should not exceed anticipated benefits, the
objective is to provide reasonable, rather than absolute, assurance that the financial
statements are free of any material misstatements.
Maze & Associates has issued an unqualified ( "clean ") opinion on the Central Contra
Costa Sanitary District's financial statements for the year ended June 30, 2013. The
independent auditor's report is located at the front of the financial section of this report.
Management's Discussion and Analysis report (MD&A) immediately follows the
independent auditor's report and provides a narrative introduction, overview, and
analysis of the basic financial statements. The MD &A complements this letter of
transmittal and should be read in conjunction with it.
PROFILE OF THE GOVERNMENT
History and Services Provided
The District was established in 1946 under the Sanitary District Act of 1923 and is
located about 30 miles east of San Francisco. The District builds, operates and
maintains the facilities required to collect and process wastewater for approximately
333,000 residents of Danville, Lafayette, Martinez, Moraga, Orinda, Pleasant Hill, San
Ramon, Walnut Creek and some of the unincorporated communities within Central
Contra Costa County. The District also treats wastewater for 134,900 residents of the
Cities of Concord and Clayton under a 1974 contract with the City of Concord.
® Recycled Paper
The District is committed to protecting the public health and preserving the environment
while minimizing facility and operating costs. The District has approximately 1,500
miles of sewer pipeline, ranging in size from 6 inches to 120 inches in diameter, and 16
sewage - pumping stations in the District's sewage collection system. The District is the
sole provider of wastewater service within the District limits (see map of service area).
Residents make up the largest segment of the District's customer base representing
approximately 82% of the Sewer Service Charge revenue. The District's treatment
capacity has grown from 4.5 million gallons per day (mgd) initiated in 1948 to 53.8 mgd
currently. Bonds, state grants, federal grants, and pay -as- you -go resources of the
District have financed expansions.
The District also provides an alternative source of water for irrigation by producing high
quality recycled water. Recycled water can safely be used on freeway landscaping,
street medians, golf courses, athletic fields, parks, playgrounds, schoolyards and multi-
family residential common areas.
In addition to its wastewater responsibility, the District also teamed with Mountain View
Sanitary District and other local governments to build and operate the first permanent
Household Hazardous Waste (HHW) Collection Facility in Contra Costa County. The
HHW Collection Facility is located adjacent to the District's wastewater treatment plant
and seeks to keep pollutants out of the sewer system, making this facility an important
part of our Pollution Prevention Program. Completing its sixteenth year of operation,
the HHW currently serves approximately 15.5 percent of the central County households.
Organization, Accounting and Budgetary Controls
A 5- member Board of Directors governs the District. Board members are elected on a
non - partisan basis and serve a four -year term. The Board appoints the General
Manager, who in accordance with policies established by the Board of Directors,
manages District affairs. The District employs 254 regular employees organized in four
departments led by Managers responsible for their budgets and expenses. The four
departments are: Administrative, Engineering, Collection Systems, and Plant
Operations.
The District by law uses an enterprise fund to account for the operations of the District,
which is run in a manner similar to private industry. The District currently has one
enterprise fund which is comprised of four internal sub - funds:
Running Expense - accounts for the general operations of the District.
Substantially all operating revenues and expenses are accounted for in this fund
(also referred to as Operations & Maintenance or O &M).
Sewer Construction - accounts for non - operating revenues that are to be used for
acquisition or construction of plant, property, and equipment (also referred to as the
Capital Fund).
Self- Insurance - accounts for interest earnings on cash balances in this sub -fund
and cash allocations from other funds, as well as costs of insurance premiums and
claims not covered by the District's insurance policies.
■ Debt Service — accounts for activity associated with the payment of the District's
long term bonds and loans.
Each year, the Board adopts the following four budgets: Operations and Maintenance,
Capital Improvement and Sewer Construction, Self- Insurance, and Debt - Service. The
Board Finance Committee reviews disbursements prior to each regular Board meeting,
and disbursements are then approved by the full Board. Monthly financial statements
are issued to management and the Board. A detailed mid -year and annual budget
analysis are prepared and presented to the Board. District management is accountable
for variances and adhering to budget constraints. The District also has several
documented financial policies that are reviewed and updated as appropriate.
ASSESSING THE DISTRICT'S ECONOMIC CONDITION
Local Economy and Outlook
While the nation as a whole is slowly recovering from the most severe economic
contraction since the Great Depression, economic data for the past year indicate
California, in particular the Bay Area, is leading the nation in job gain and economic
recovery. Employment in the Bay Area has consistently grown at a faster rate than the
country as a whole during the year. According to the Legislative Analyst's Office (LAO),
voter approval of Proposition 30 (a temporary % cent increase in sales tax and an
income tax increase on earnings over $250,000), improved state economy, and budget
cuts will produce a budget reserve for the first time in five years. Contrary to budget
shortfalls of recent years, a projected surplus in general fund is restoring some
programs, such as school funding, from prior year cuts and will see an increase in state
funding. Key economic indicators show positive signs of growth for the East Bay and
the state. Furthermore, the UCLA Anderson Forecast predicts the nine - county region of
Bay Area will continue as a top performer in job and economic recovery.
The decline in home values and foreclosures from sub -prime lending leading to a
restrictive credit market has turned the corner and home prices in California have risen
steeply in the past year. In contrast to the bursting of the housing bubble which began
in 2008 and continued for several years, a rapid recovery is underway in the housing
market. Existing single - family home prices in the East Bay, as in the rest of the state,
have increased dramatically and the upswing is predicted to continue. Low interest
rates on mortgages along with declining inventory of affordable homes have caused a
flurry of activities in the housing market that is expected to continue in the foreseeable
future. Both single - family and multi - family residential building permits have increased
as a result of the strong housing market.
The strong housing market has a positive effect in the growth of new sewer service
connections for the District. New construction of multi - family housing units in Walnut
Creek and San Ramon have increased connection fees and will add to the stream of
sewer service charge revenue. The District and the bargaining units have agreed on a
5 -year contract that will go to December of 2017. The new contract continues the bulk
of employee retirement cost being paid by the District. Payment of the unfunded liability
is a major financial concern for the District as it is for many public entities. The District
has an excellent reputation in all areas of public service, which include finance,
collection, treatment, training, safety, technology, capital projects, construction and
customer service. The Central Contra Costa Sanitary District has balanced revenue
sources, adequate reserves, and a moderate debt obligation. CCCSD reviews its rate
and other charges annually. The District can increase its sewer service charge rates
when needed to make up revenue shortfalls by providing public notice to all customers,
holding a Public Hearing, and obtaining approval by the Board of Directors. The District
is also able to obtain bond financing, as needed, due to the District's AAA bond rating.
The District anticipates that it will continue to meet its mission and goals, continue to
provide excellent customer service and reasonable rates to its customers, and meet
compliance requirements given the current economic conditions.
Long Term Financial Planning
District management analyzes and updates their strategic plan annually, with the four
main goals being: providing exceptional customer service, maintaining full regulatory
compliance, maintaining responsible rates, and continuing to be a high performance
organization. Strategies to achieve each of the goals are developed, as well as metrics
to evaluate success. The District performs a 10 -year long -term cash flow forecast each
year shortly before the budget process begins. The main economic factors considered
in long range forecasting are: the impact of state legislation and mandates, regulatory
compliance, GASB requirements, negotiated salary increases and employee benefits
including significant increases in retirement and health care costs, energy costs and
interpreting the energy market, housing growth, and infrastructure renewal and
replacement needs. The District has a significant amount of unfunded actuarial liability
for both pension and other post employment costs (OPEB) and various options for
managing these liabilities are explored in the financial planning process.
Relevant Financial Policies
Investment Policy: The District's investment policies for District assets and GASB 45
Trust are reviewed and approved annually by the Board of Directors in accordance with
District investment policy. Section 53646 of the California Government Code governs
our investment practices, and is reviewed annually by staff, legal counsel and the
Board. No required changes were necessary. The Board receives monthly financial
statements that include District investment performance. Since 2008, the GASB 45
Trust investments are in a moderate investment strategy fund. The Board Budget and
Finance Committee reviews GASB 45 Trust quarterly financial statements to monitor
the District's investment strategy in the current volatile economy.
Maior Initiatives
The District's vision is to be a high - performance organization that provides exceptional
customer service and full regulatory compliance at responsible rates. Full regulatory
compliance is provided through exceptional operation of our collection system and
treatment facilities, as well as through continued investment in our infrastructure. Our
current capital plan has an emphasis on renovation, particularly in the collection system,
in order to improve service, and fix deteriorating pipes and pumping stations before they
can contribute to a sewer system overflow. Both at the state and federal level,
regulations addressing sewer system overflows and public notification have become
iv
increasingly stringent over the last several years. Collection system operations was
enhanced by the newly constructed administration /crew /warehouse building, which was
designed to be LEED certified and incorporates many green design features. LEED
represents "Leadership in Energy and Environmental Design," which is administered by
the U.S. Green Building Council.
Our capital plan is also addressing treatment plant reliability through design and
construction of several recently completed projects. The Outfall Improvements, Phase
6 project, allowed the District to inspect and repair the 3.5 mile 72 -inch diameter outfall
pipeline that transports fully treated effluent from the Martinez Treatment Plant Facility
to Suisun Bay. A second project, the Piping Renovations, Phase 6 project, replaces
aging pipe infrastructure with new modern piping. These projects are supplemented
with treatment plant renovation projects to increase safety and replace other plant
infrastructure.
The District has received Platinum and Gold awards from the National Association of
Clean Water Agencies (NACWA) for fifteen straight years in recognition of 100 percent
compliance with our National Pollutant Discharge Elimination System (NPDES) permit.
It has also reduced the number of sanitary sewer overflows by more than 70% in the
past 10 years by improved sewer cleaning and a robust sewer rehabilitation program.
AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association of the United States and Canada
(GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to
the Central Contra Costa Sanitary District for its comprehensive annual financial report
for the fiscal year ended June 30, 2012. This was the thirteenth consecutive year that
the District has achieved this prestigious award. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our
current comprehensive annual financial report continues to meet the program's
requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
This report could not have been accomplished without the dedication and commitment
provided by District staff. I would like to express my appreciation to the following
employees who assisted in its preparation:
• The Finance and Accounting staff who compiled the information contained in this
document with a special thanks to Jamie King, Accountant, and Todd Smithey,
Finance Administrator.
• The Reproduction and Graphics Team who creatively and professionally prepared
this finished document.
Engineering and Operations staff who provided much of the statistical information
included in this document.
The District's Board of Directors and Management Team for their support in
preparing this document as well as their day -to -day support in conducting the
financial operations of the District in a prudent and responsible manner.
Respectfully submitted,
Thea Vassallo
Finance Manager
Vi
CENTRAL CONTRA COSTA SANITARY DISTRICT
BOARD OF DIRECTORS
June 30, 2013
James A. Nejedly .............. ............................... President
David R. Williams .............................. President Pro -Tem
Paul H. Causey ................... ............................... Member
Michael R. McGill ................ ............................... Member
Tad J. Pilecki ....................... ............................... Member
11 Central Contra Costa Sanitary District
OUR MISSION
To protect the public health and the
environment by:
• Collecting and treating wastewater
• Recycling high quality water
- • Promoting pollution prevention
►. OUR VISION
Be a high performance organization
that provides exceptional customer
service and full regulatory compliance
at responsible rates.
OUR VALUES
We will achieve our goals by valuing:
• Each other
• Ethics and integrity
• A healthy and safe environment
• Community relationships
• The meeting f commitments
• All aspects of diversity
y
viii
CENTRAL CONTRA COSTA SANITARY DISTRICT
Organization Chart - Composite
Purchasing &
Materials Svcs.
Human
Resources
Communication
Services
Field
Operations
Technical
Services
4 N7&artinez
Pacheco
Pleasant
Hill
Orinda Lafayette
24
N
® Moraga
Wastewater collection and treatment and
HHW collection for 467,500 people
Wastewater treatment and HHW collection
for 134,900 residents in Concord and
Clayton by contract
HHW collection service only
CCCSD's Headquarters Office Building,
treatment plant, HHW Collection Facility,
and temporarily located CSO Department
(Sewer Maintenance) in Martinez
CCCSD's Collection System Operations
Department (sewer maintenance) located
in Walnut Creek. New facility was
completed in 2012.
Walnut
Alamo
Concord
Clayton
Danville
San Ramon
CCCSD Pumping Stations
Pumping Station
sizes (Flow Rates):
1. Martinez
11. LowerOrinda
• Between 0 - 0.1 MGD'
2. Fairview
12. Bates Blvd: Orinda
3. Maltby
13. Orinda Cross roads
• Between 0.1 -1 MGD
4. Clyde
14. Via Robles
5. Concord Industrial
15. Moraga
6. Buchanan Feld North
16. San Ramon
• Between 1 -10 MGD
7. Buchanan Feld South
privately owned.
8. Sleepy Hollow
17. Wagner Ranch
0 Greater than 10 MGD
9. Acacia
18. Lower Wilder
0. Flush Kleen
19. Upper Wilder
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Central Contra Costa
Sanitary District, California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2012
Executive Director /CEO
(THIS PAGE INTENTIONALLY LEFT BLANK)
, rc----;-c;s - 3
-A C4-
Central Contra Costa Sanitary District
Financial
Section
CENTRAL CONTRA COSTA SANITARY DISTRICT
BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
This Page Left Intentionally Blank
CENTRAL CONTRA COSTA SANITARY DISTRICT
BASIC FINANCIAL STATEMENTS
For the Year Ended June 30, 2013
Table of Contents
INTRODUCTORY SECTION
Tableof Contents ............................................................................................ ............................... i
FINANCIAL SECTION
INDEPENDENT AUDITOR'S REPORT .............................................................. ..............................1
MANAGEMENT'S DISCUSSION AND ANALYSIS ....................................... ............................... 3
BASIC FINANCIAL STATEMENTS
Statementof Net Position ................................................................................... .............................10
Statement of Revenues, Expenses and Changes in Net Position ..................... .............................11
Statementof Cash Flows .................................................................................... .............................12
NOTES TO BASIC FINANCIAL STATEMENTS ............................................ .............................15
SUPPLEMENTARY INFORMATION
Combining Schedule of Net Position —
EnterpriseSub - Funds ................................................................................ .............................41
Combining Schedule of Revenues,
Expenses and Changes in Net Position — Enterprise Sub -Funds ......... ............................... 42
Schedule of Running Expenses, Comparison of Budget and Actual
Expenses by Department ......................................................................... ............................... 43
Running Expense — Schedule of
Supplemental Net Position Analysis ....................................................... ............................... 44
This Page Left Intentionally Blank
tj MAZE
& ASSOCIATES
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
Central Contra Costa Sanitary District
Martinez, California
Report on Financial Statements
We have audited the accompanying financial statements of the business -type activities of the Central Contra
Costa Sanitary District (District) as of and for the year ended June 30, 2013, and the related notes to the
financial statements, which collectively comprise the District's basic financial statements as listed in the
Table of Contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of the financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the District's preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the business -type activities of the Central Contra Costa Sanitary District as
of June 30, 2013, and the respective changes in financial position and, where applicable, cash flows thereof
for the year then ended in conformity with accounting principles generally accepted in the United States of
America.
T 925.930.0902
Accountancy Corporation F 925.930.0135
3478 Buskirk Avenue, Suite 215 e maze @mazeassociates.com
Pleasant Hill, CA 94523 w mazeassociates.com
Emphasis of a Matter
Management adopted the provisions of Governmental Accounting Standards Board Statement No. 63-
Financial Reporting of Deferred Ouews of Resources, Deferred Inflows of Resources, and Net Position,
which became effective during the year ended June 30, 2013 and required certain title changes to the
Statement of Net Position and Statement of Changes in Net Position. See Note 1L to the financial
statements for relevant disclosures.
The emphasis of this matter does not constitute a modification to our opinion.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management's
Discussion and Analysis be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting Standards
Board, who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management's responses to
our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively
comprise the District's financial statements as a whole. The Supplementary Information listed in the Table
of Contents is presented for purposes of additional analysis and is not a required part of the financial
statements.
The Supplementary Information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the financial statements. The
information has been subjected to the auditing procedures applied in the audit of the financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the Supplementary Information is fairly stated in
all material respects in relation to the financial statements as a whole.
Pleasant Hill, California
September 18, 2013
2
Jl Central Contra Costa Sanitary District
MANAGEMENT'S DISCUSSION AND ANALYSIS
This section of the District's annual financial report presents an analysis of the District's financial
performance during the fiscal year ended June 30, 2013. This information is presented in conjunction
with the audited financial statements, which follow this report.
FINANCIAL HIGHLIGHTS
The District's 2012 -13 financial highlights are listed below. These results are discussed in more detail
later in the report.
• The District's total ending net position increased by $9.1 million or 1.45% in 2012 -13 when
compared to fiscal year 2011 -12; when comparing 2012 -13 to 2010 -11, net position have
increased by $12.9 million or 2.07 %. This is mainly due to capital project asset additions.
• Total revenues in 2012 -13 increased by $8.8 million or 11.64% when compared to 2011 -12;
when comparing 2012 -13 to 2010 -11, total revenue has increased by $10.9 million or 14.85 %.
The total Sewer Service Charge (SSC) rate increased by 8.8 %; a larger portion of the internal
SSC allocation was shifted from Capital Contributions to Operating Revenues.
• Total 2012 -13 expenses increased by $3.1 million or 3.60% compared to 2011 -12; when
comparing 2012 -13 to 2010 -11, total expenses increased by $9.1 million or 11.23 %. This is
mainly due to higher cost of total labor and technical services.
• Capital Contributions decreased in 2012 -13 compared to 2011 -12 by -$0.4 million or - 2.42 %.
Capital Contributions increased by $6.0 million or 65.78% comparing 2012 -13 to 2010 -11. The
decrease in 2012 -13 was due to the SSC rate increase, with more being allocated to Operations
and Maintenance, and higher connection fees when comparing 2012 -13 to 2011 -12. The volatile
housing and construction markets caused swings in connection fee revenue. (Connection fee
revenue of $6.1 million in 2012 -13, $5.7 million in 2011 -12 and $3.5 million in 2010 -11).
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report includes the management's discussion and analysis report, the independent auditor's
report and the basic financial statements of the District. The financial statements also include notes that
explain information in the financial statements in more detail. This report also contains other
supplementary information in addition to the basic financial statements.
REQUIRED FINANCIAL STATEMENTS
The Financial Statements of the District report information utilizing methods similar to those used by
private sector companies. These statements offer short and long -term financial information about its
activities.
® Recycled Paper
Statement of Net Position — reports the District's current financial resources (short-term
spendable resources) with capital assets and long -term obligations
• Statement of Revenues, Expenses and Changes in Net Position — reports the District's
operating and non - operating revenues by major source along with operating and non - operating
expenses and capital contributions
• Statement of Cash Flows — reports the District's cash flows from operating activities, non-
capital financing activities, capital and related financing activities, investing activities, and non-
cash activities
STATEMENT OF NET POSITION
The following table shows the condensed statement of net position of the Central Contra Costa Sanitary
District for the past three years:
Condensed Statement of % Increase
Net Position Fiscal Year Ended June 30 (Decrease)
FY 12 -13 FY 12 -13
vs. vs.
2012 -13 2011 -12 2010 -11 FY 11 -12 10 -11
Current Assets
$ 78,006,233
$ 78,506,812
$ 80,407,120
-0.64%
-2.99%
Capital Assets
603,985,469
597,689,744
593,461,791
1.05%
1.77%
Other Non - current Assets
9,454,886
9,332,364
12,456,011
1.31%
- 24.09%
Total Assets
691,446,588
685,528,920
686,324,922
0.86%
-0.75%
Current Liabilities
11,704,101
11,128,540
10,682,746
5.17%
9.56%
Non - Current Liabilities
44,027,490
47,797,407
52,844,305
-7.89%
- 16.68%
Total Liabilities
55,731,591
58,925,947
63,527,051
-5.42%
- 12.27%
Invested in Capital Assets,
Net of Related Debt
559,523,642
549,462,506
541,613,208
1.83%
3.31%
Restricted - Debt Service
4,730,837
4,663,601
4,612,103
1.44%
2.57%
Unrestricted
71,460,518
72,476,866
76,572,560
-1.40%
-6.68%
Total Net Position
$ 635,714,997
$ 626,602,973
$ 622,797,871
1.45%
2.07%
The total net position of the District increased from $622.8 million in 2010 -11 to $626.6 million in
2011 -12 and to $635.7 million in 2012 -13. The increase in net position over the 3 -year period totals
$12.9 million and is the result of the combination of net income and capital contributions; comparing
2012 -13 to 2011 -12 net position increases by $9.1 million.
By far the largest portion of the District's net position (88.01% percent) reflects its investment in capital
assets (e.g. land, buildings, machinery, equipment, intangible assets, and sewer line infrastructure), less
any related debt used to acquire those assets that are still outstanding. The District uses these capital
assets to provide services to its ratepayers; consequently, these assets are not available for future
spending. Although the District's investment in its capital assets is reported net of debt, it should be
noted that the funds needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities. There is currently $4.7 million restricted
for debt service. The remaining balance of $71.5 million in unrestricted net position may be used to
meet the District's ongoing obligations to its ratepayers and creditors. The unrestricted net position may
also be used for payment of long -term unfunded liabilities.
4
REVIEW OF REVENUES EXPENSES AND CHANGES IN NET POSITION
The table below shows the condensed statement of revenues, expenses, and changes in net position for
the Central Contra Costa Sanitary District for the past 3 years:
Condensed Statement of
Revenues, Expenses, and % Increase
Changes in Net Position Fiscal Year Ended June 30 (Decrease)
FY 12 -13 FY 12 -13
vs. vs.
2012 -13 2011 -12 2010 -11 FY 11 -12 10 -11
Sewer Service Charges SSC
$ 67,254,405
$ 59,771,237
$ 58,320,822
12.52%
15.32%
Other Service Charges and
Miscellaneous
1,828,281
1,845,402
1,575,738
- 0.93%
16.03%
Total Operating Revenue
69,082,686
61,616,639
59,896 560
12.12%
15.34%
Property Tax
13,010,477
12,047,169
12,213,624
8.00%
6.52%
Permit & Inspection Fees
1,169,809
903,810
895,825
29.43%
30.58%
Interest and All Other
1,356,574
1,226,598
673,990
10.60%
101.28%
Total Non - Operating
Revenues
15,536,860
14,177,577
13,783,439
9.59%
12.72%
Total Revenues
84 619,546
75,794,216
73,679 999
11.64%
14.85%
Total Labor and Benefits
49,811,218
45,562,430
41,705,131
9.33%
19.44%
Chemicals & Utilities
5,420,789
6,090,408
5,664,360
- 10.99%
-4.30%
Repairs and Maintenance
3,151,127
3,068,604
2,972,395
2.69%
6.01%
Professional, Legal and
Outside Services
2,836,638
4,099,876
2,425,612
- 30.81%
16.95%
Materials & Supplies
1,980,314
2,031,401
1,944,767
-2.51%
1.83%
Hauling and Disposal
1,088,294
1,009,137
944,394
7.84%
15.24%
Self - Insurance Expense
2,380,466
810,849
1,003,115
193.58%
137.31%
All Other
472,630
1,612,482
1,575,905
- 70.69%
- 70.01%
Depreciation Expense
21,596,266
21,190,059
20,580,061
1.92%
4.94%
Total Operating Expenses
88,737,742
85,475,246
78,815 740
3.82%
12.59%
Non - Operating Expense -
Interest Expense
1,802,084
1,919,375
2,585,112
-6.11%
- 30.29%
Total Expenses
90,539,826
87,394 621
81,400,852
3.60%
11.23%
Income Before Capital
Contributions
5,920,280
11,600,405
7,720,853
- 48.96%
- 23.32%
Customer Contributions SSC
8,001,147
8,888,663
5,018,092
-9.98%
59.45%
Contributed Sewer Lines
939,628
792,011
533,616
18.64%
76.09%
Capital Contributions -
Connection Fees
6,091,529
5,724,833
3,515,804
6.41%
73.26%
Total Capital Contributions
15,032,304
15,405,507
9,067,512
-2.42%
65.78%
Change in Net Position
9,112,024
3,805102
1,346,659
139.47%
576.64%
Beginning Net Position
626,602,973
622,797,871
621,451,212
0.61%
0.83%
Ending Net Position
$ 635,714,997
$ 626,602 973
$ 622,797,871
1.45%
2.07%
In 2012 -13, operating revenues increased by $7.5 million or 12.12% compared to 2011 -12 and increased
by $9.2 million or 15.34% comparing 2012 -13 to 2010 -11. Total non - operating revenue increased in
2012 -13 compared to 2011 -12 by $1.4 million or 9.59% and increased by $1.8 million or 12.72%
comparing 2012 -13 to 2010 -11. The change in total revenue resulted in an increase of $8.8 million or
11.64% comparing 2012 -13 to 2011 -12 and increased by $10.9 million or 14.85% comparing 2012 -13 to
2010 -11. There was an 8.8% SSC rate increase in 2012 -13, 9.65% SSC rate increase in 2011 -12 and no
increase in SSC for 2010 -11. Property Tax revenue increased in 2012 -13 and basically remained flat
during 2011 -12 and 2010 -2011 due to housing values remaining low.
In 2012 -13, total expenses increased by $3.1 million or 3.60% compared to 2011 -12. Comparing 2012-
13 to 2010 -11, total expenses were $9.1 million or 11.23% higher. Increases are mainly due to higher
labor and benefit costs along with technical services for temporary staff. Labor costs increased due to
employee benefit costs (primarily pension and healthcare costs), cost -of- living adjustments, merit
increases, and filling of vacant positions. Depreciation expense increased due to new capital additions.
Non - Operating Expense is mainly driven by debt service interest expense. Total income before capital
contributions went from -$7.7 million in 2010 -11 to -$11.6 million in 2011 -12 and -$5.9 million in
2012 -13.
Total capital contributions in 2012 -13 were $15.0 million compared to $15.4 million in 2011 -12 and
$9.1 million in 2010 -11. This was mainly due to higher customer contributions (SSC) in 2012 -13 due to
the 8.8% rate increase, shift of the internal SSC revenue allocation, and volatility in connection fees due
to the fluctuation of the housing and construction markets. The total change in net position increased by
$7.8 million or 576.64% when comparing 2012 -13 to 2010 -11.
CAPITAL ASSETS
Capital assets include the District's entire major infrastructure including wastewater treatment facilities,
sewers, land, buildings, pumping stations, vehicles, intangible assets and furniture and equipment
exceeding our capitalization policy limit of $5,000, net of depreciation. As of June 30, 2013, the
District's investment in capital assets totaled $604.0 million, which is an increase of $6.3 million or
1.05% over the capital asset balance of $597.7 million at June 30, 2012. Capital Assets increased by
$10.5 million or 1.77% comparing 2012 -13 to 2010 -11. A comparison of the District's capital assets
over the past 3 fiscal years is presented below:
% Increase
Capital Assets Fiscal Year Ended June 30 (Decrease)
FY 12 -13 FY 12 -13
VS. vs.
2012 -13 2011 -12 2010 -11 11 -12 10 -11
Land
$ 17,262,249
$ 17,114,720
$ 17,114,720
0.86%
0.86%
Sewage Collection System
311,633,989
303,693,519
290,317,724
2.61%
7.34%
Contributed Sewer Lines
150,834,930
149,895,302
149,110,351
0.63%
1.16%
Outfall Sewers
11,338,935
8,518,443
8,518,443
33.11%
33.11%
Sewage Treatment Plant
299,830,466
292,432,883
287,537,513
2.53%
4.28%
Recycled Water Infrastructure
13,515,026
13,335,295
12,300,131
1.35%
9.88%
Pumping Stations
54,412,730
54,412,730
54,412,730
-
-
Buildings
36,120,720
34,477,124
31,317,466
4.77%
15.34%
Intangible Assets
4,596,467
2,463,834
2,058,921
86.56%
123.25%
Furniture & Equipment
15,651,212
14,031,564
13,243,330
11.54%
18.18%
Motor Vehicles
6,558,065
6,010,773
6,038,527
9.11%
8.60%
Construction In Progress
24,533,254
22,469,694
22,632,142
9.18%
8.40%
Subtotal
946,288 043
918,855 881
894,601 998
2.99%
5.78%
Less Accumulated Depreciation
342,302,574
321,166,137
301,140,207
6.58%
13.67%
Total Capital Assets
net of depreciation)
$ 603 985,469
$ 597,689,744
$ 593 461,791
1.05%
1.77%
6
The major reasons for the increase in capital assets, net of depreciation, of $6.3 million from 2011 -12 to
2012 -13 and $10.5 million from 2010 -11 to 2012 -13, are as follows:
• Sewer pipe ongoing renovations, upgrades, expansion, pumping station improvements, and
contributed sewer lines increased by $8.9 million comparing 2012 -13 to 2011 -12 and $23.0
million comparing 2012 -13 to 2010 -11.
• Treatment plant infrastructure renovations, upgrades, equipment, and improvements increased by
$7.4 million comparing 2012 -13 to 2011 -12 and $12.3 million comparing 2012 -13 to 2010 -11.
• Buildings increased by $1.6 million comparing 2012 -13 to 2011 -12 and $4.8 million comparing
2012 -13 to 2010 -11.
• All other asset categories, including construction in progress, increased by $9.5 million
comparing 2012 -13 to 2011 -12 and increased by $11.5 million comparing 2012 -13 to 2010 -11.
• Capital Asset increases are offset by an increased subtraction of accumulated depreciation of
$21.1 million comparing 2012 -13 to 2011 -12 and $41.2 million comparing 2012 -13 to 2010 -11
due to our increasing capital asset investment and its associated depreciation expense.
See Note 5 in the audited fmancial statements.
DEBT ADMINISTRATION
The District has the following outstanding debt as of June 30, 2013:
Revenue Bonds $ 43,595,000
Water Reclamation Loan 866,827
$ 44,461,827
See Note 6 in the audited financial statements.
ECONOMIC AND OTHER FACTORS
The Federal and State of California economies continue to slowly recover from the 2008 recession. The
Federal economic challenges have resulted in budget sequestration. The State Budget Act reflects
California's most stable budget in years. With the State's tough spending, cuts enacted and new
temporary revenues provided by the passage of Proposition 30, the State's budget is projected to remain
balanced for the foreseeable future. However, substantial risks, uncertainties, and liabilities still remain.
Changes in the state budget have a significant impact on the District. Federal and State economic
challenges will continue into the future and will have a trickle -down effect on local government.
Items impacting the District are:
• Current Employee Memorandum of Understanding contracts end as of December 17, 2017.
• Current and future legislation impacting public employee pensions is in play, also calling for
higher employee contributions and lower pensions by eliminating spiking. A significant number
of anticipated early retirements may occur depending on the legislated changes to public
employee salary and benefits.
• Increased cost of employee benefits, mainly due to pension costs and healthcare.
• Housing market is still recovering and continues to impact development and user fees.
• Regulatory requirements becoming more stringent, causing the District to spend more on
compliance, both for operations and maintenance costs and capital projects. This may require
debt financing for large capital projects.
• Continued low interest rates negatively impact interest earnings for District temporary
investments as well as OPEB trust and pension plan assets.
In addition to making efforts to reduce spending and improve process efficiencies, the District has the
ability to raise the SSC to meet our long -term commitments. The District has a Standard and Poors
AAA rating, and can obtain bond financing if necessary.
FINANCIAL CONTACT
The financial report is designed to provide our customers and creditors with a general overview of the
District's finances and to demonstrate the District's accountability for the money it receives. If you
have questions about this report or need additional financial information, contact: Finance Manager
Thea Vassallo, Central Contra Costa Sanitary District, 5019 Imhoff Place, Martinez, CA 94553.
This Page Left Intentionally Blank
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENT OF NET POSITION
JUNE 30, 2013
ASSETS
CURRENT ASSETS
Cash and cash equivalents (Note 2)
$46,714,788
Short term investments (Note 2)
10,498,624
Accounts receivable, net (Note 3)
16,517,549
Interest receivable
65,321
Parts and supplies
2,005,741
Prepaid expenses
2,204,210
Total current assets
78,006,233
NON - CURRENT ASSETS
Restricted cash and equivalents (Notes I.E. and 2)
100,000
Restricted investments (Note 2)
5,412,500
Assessment Districts receivable (Note 4)
2,089,461
Net OPEB asset (Note 10)
1,537,638
Revenue bonds issuance costs, net of amortization
315,287
Capital assets:
Nondepreciable (Note 5)
41,795,503
Depreciable, net of accumulated depreciation (Note 5)
562,189,966
Total capital assets, net
603,985,469
Total non - current assets
613,440,355
TOTAL ASSETS
691,446,588
LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued expenses
5,376,935
Interest payable
718,147
Refunding Water Revenue Bonds - current portion (Note 6)
3,720,000
Water Reclamation Loan Contract - current portion (Note 6)
164,582
Accrued compensated absences - current portion (Note 11)
383,000
Liability for uninsured claims (Note 7)
1,000,000
Refundable deposits
341,437
Total current liabilities
11,704,101
NON - CURRENT LIABILITIES
Refunding Water Revenue Bonds, noncurrent portion (Note 6)
39,875,000
Water Reclamation Loan Contract, noncurrent portion (Note 6)
702,245
Accrued compensated absences, noncurrent portion (Note 1.I.)
3,450,245
Total non - current liabilities
44,027,490
TOTAL LIABILITIES
55,731,591
NET POSITION (Note 11)
Net investment in capital assets
559,523,642
Restricted for debt service
4,730,837
Unrestricted
71,460,518
TOTAL NET POSITION
$635,714,997
See accompanying notes to financial statements
10
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FOR THE YEAR ENDED JUNE 30, 2013
OPERATING REVENUES
Sewer service charges (SSC) $56,770,984
Service charges - City of Concord 10,483,421
Other services charges 1,076,401
Miscellaneous charges 751,880
Total operating revenues 69,082,686
OPERATING EXPENSES
Sewage collection and pumping stations
14,327,933
Sewage treatment
23,035,943
Engineering
8,680,934
Administrative and general
21,096,666
Depreciation
21,596,266
Total operating expenses
88,737,742
OPERATING INCOME (LOSS)
(19,655,056)
NONOPERATING REVENUES (EXPENSES)
Taxes 13,010,477
Permit and inspection fees 1,169,809
Interest earnings 405,474
Interest expense (1,802,084)
Other income (expense) 951,100
Total nonoperating revenues (expenses), net 13,734,776
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS (5,920,280)
CAPITAL CONTRIBUTIONS
City of Concord contributions to capital costs 3,616,771
Customer contributions to capital cost (SSC) 4,384,376
Contributed sewer lines 939,628
Capital contributions - connection fees 6,091,529
Total capital contributions 15,032,304
CHANGE IN NET POSITION 9,112,024
NET POSITION, BEGINNING OF YEAR 626,602,973
NET POSITION, END OF YEAR $635,714,997
See accompanying notes to financial statements
11
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers
Payments to employees and related benefits
Net Cash Provided by Operating Activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Receipt of taxes
Inspection/permit fees and other non - operating income
Cash Flows from Noncapital Financing Activities
$67,716,388
(36,581,237)
(29,929,031)
1,206,120
13,010,477
2,120,909
15,131,386
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contributions 8,940,775
Connection fees 6,091,529
Acquisition and construction of capital assets (27,891,991)
Interest paid on long -term debt (1,838,134)
Principal payments on long -term debt (3,448,341)
Cash Flows (used for) Capital and Related Financing Activities (18,146,162)
CASH FLOWS FROM INVESTING ACTIVITIES
Redemption and acquisition of investments, net $5,606,506
Interest received 395,301
Cash Flows from Investing Activities 6,001,807
NET INCREASE (DECREASE) IN CASH 4,193,151
Cash, beginning of year 42,621,637
Cash, end of year $46,814,788
(Continued)
See accompanying notes to financial statements
12
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED JUNE 30, 2013
Reconciliation of operating (loss) to net cash provided by
operating activities:
Operating (loss)
($19,655,056)
Adjustments to reconcile operating loss to cash
flows from operating activities:
Depreciation
21,596,266
Change in assets and liabilities:
Receivables, net
(1,366,298)
Parts and supplies
1,704
Prepaid expenses
296,495
Accounts payable and accrued expenses
472,291
Accrued payroll and related expenses
122,665
Refundable deposits
12,149
Net OPEB asset
(274,096)
Net cash provided by operating activities $1,206,120
SCHEDULE OF NON CASH ACTIVITY
Developer pipe contributions $713,525
Change in fair value of investments 395,301
Total non cash activity $1,108,826
CASH AND CASH EQUIVALENTS, AS PRESENTED ON
STATEMENT OF NET POSITION:
Unrestricted cash and cash equivalents $46,714,788
Restricted cash and cash equivalents 100,000
Total cash and cash equivalents at end of year $46,814,788
See accompanying notes to financial statements
13
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 1— DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
A. Reporting Entity
The Central Contra Costa Sanitary District (District), a special district and a public entity
established under the Sanitary District Act of 1923, provides sewer service for the incorporated
and unincorporated areas under its jurisdiction. A Board of Directors comprised of five elected
members governs the District.
As required by accounting principles generally accepted in the United States of America, these
basic financial statements present the financial statements of Central Contra Costa Sanitary
District and its component unit. The component unit discussed in the following paragraph is
blended in the District's reporting entity because of the significance of its operational and
financial relationship with the District.
Blended Component Unit - Component units are legally separate organizations for which the
District is financially accountable. Component units may also include organizations that are
fiscally dependent on the District, in that the District approves their budget, the issuance of their
debt or the levying of their taxes. In addition, component units are other legally separate
organizations for which the District is not financially accountable but the nature and significance
of the organization's relationship with the District is such that exclusion would cause the District's
financial statements to be misleading or incomplete. For financial reporting purposes, the
component unit discussed below is reported in the District's financial statements because of the
significance of its relationship with the District. The component unit, although a legally separate
entity, is reported in the financial statements using the blended presentation method as if it were
part of the District's operations because the Governing Board of the component unit is the same
as of Governing Board of the District and because its purpose is to finance facilities to be used for
the direct benefit of the District. The Central Contra Costa Sanitary District Facilities Financing
Authority (Authority) was organized solely for the purpose of providing financial assistance to the
District. The Authority does this by acquiring, constructing, improving and financing various
facilities, land and equipment purchases, and by leasing or selling certain facilities, land and
equipment for the use, benefit and enjoyment of the public served by the District. The Authority
has no members and the Board of Directors of the Authority consists of the same persons who are
serving as the Board of Directors of the District. There are no separate basic financial statements
prepared for the Authority.
B. Basis ofAccounting
The District's financial statements are prepared on the accrual basis of accounting. The District
applies all applicable Governmental Accounting Standards Board (GASB) pronouncements for
certain accounting and financial reporting guidance.
15
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 1— DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
The District is a proprietary entity; it uses an enterprise fund format to report its activities for
financial statement purposes. Enterprise funds are used to account for operations that are
fmanced and operated in a manner similar to private business enterprises, where the intent of the
governing body is that the cost and expenses, including depreciation, of providing, goods or
services to its customers be financed or recovered primarily through user charges; or where the
governing body has decided that periodic determination of revenues earned, expense incurred,
and net income is appropriate for capital maintenance, public policy, management control,
accountability, or other purposes.
Enterprise funds are used to account for activities similar to those in the private sector, where the
proper matching of revenues and costs is important and the full accrual basis of accounting is
required. With this measurement focus, all assets and liabilities of the enterprise are recorded on
its statement of net position, all revenues are recognized when earned and all expenses, including
depreciation, are recognized when incurred.
Enterprise funds distinguish operating revenues and expenses from non - operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with an enterprise fund's principal ongoing operations. The
principal operating revenues of the District are charges to customers for services. Operating
expenses for the District include the costs of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported
as non - operating revenues and expenses.
For internal operating purposes, the District's Board of Directors has established four separate
sub - funds, each of which includes a separate self - balancing set of accounts and a separate Board
approved budget for revenues and expenses. These sub -funds are combined into the single
enterprise fund presented in the accompanying financial statements. The nature and purpose of
these sub -funds are as follows:
Running Expense - Running Expense accounts for the general operations of the District.
Substantially all operating revenues and expenses are accounted for in this sub -fund.
Sewer Construction - Sewer Construction accounts for non - operating revenues, which are
to be used for acquisition or construction of plant, property and equipment.
Self - Insurance - Self- Insurance accounts for interest earnings on cash balances in this
sub -fund and cash allocations from other sub - funds, as well as for costs of insurance
premiums and claims not covered by the District's insurance coverage.
Debt Service - Debt Service accounts for activity associated with the payment of the
District's long term bonds and loans.
That portion of the District's net position which is allocable to each of these sub -funds has been
shown separately in the accompanying supplementary information to the financial statements.
The District's Board of Directors adopts annual budgets on a basis consistent with accounting
principles generally accepted in the United States of America.
16
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR TBE YEAR ENDED JUNE 30, 2013
NOTE 1— DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
C. Investments
Investments held at June 30, 2013 with original maturities greater than one year, are stated at fair
value. Fair value is estimated based on quoted market prices at year -end. All investments not
required to be reported at fair value are stated at cost or amortized cost.
D. Prepaid Expenses
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in the fmancial statements.
E. Bank Escrow Deposit
An escrow agreement was formed between the District and the National Park Service for the
right- of -way through the John Muir National Historic Site, in lieu of issuing a performance bond.
The current right -of -way permit is 10 years, but is renewable and must remain in effect so long as
there is sewage running through the area; therefore, it is unlikely that the escrow funds will ever
be released to the District. These funds are listed as restricted cash in the financial statements.
F. Parts and Supplies
Parts and supplies are valued at average cost and are used primarily for internal purposes.
G. Property, Plant, and Equipment
Purchased capital assets are stated at historical cost. Capital assets contributed to the District are
stated at estimated fair value at the time of contribution. The capitalization threshold for capital
assets is $5,000. Expenditures which materially increase the value or life of capital assets are
capitalized and depreciated over the remaining useful life of the asset. The term depreciation
includes amortization of intangible assets.
Depreciation of exhaustible capital assets has been provided using the straight -line method over
the asset's useful life as follows:
Sewage Collection Facilities
Intangible Assets
Sewage Treatment Plant and Pumping Plants
Buildings
Furniture and Equipment
Motor Vehicles
17
Years
75
75
40
50
5 -15
6 -15
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 1— DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
H. Property Taxes
Property tax revenue is recognized in the fiscal year for which the tax is levied. The County of
Contra Costa levies, bills and collects property taxes for the District; all material amounts are
collected by June 30.
General County taxes collected are the same as the amount levied since the County participates in
California's alternative method of apportionment called the Teeter Plan. The Teeter Plan as
provided in Section 4701 at seq. of the State of Revenue and Taxation Code establishes a
mechanism for the County to advance the full amount of property tax and other levies to taxing
agencies based on the tax levy, rather than on the basis of actual tax collections. Although this
system is a simpler method to administer, the County assumes the risk of delinquencies. The
County in return retains the penalties and accrued interest thereon.
Secured property tax bills are mailed once a year, during the month of October on the current
secured tax roll, to the owner of the property as of the lien date (January 1). Payments can be
made in two installments, and are due on November 1 and February 1. Delinquent accounts are
assessed a penalty of 10 percent. Accounts which remain unpaid on June 30 are charged an
additional 1% percent per month. Unsecured property tax is due on July 1 and becomes
delinquent on August 31. The penalty percentage rates are the same as secured property tax.
L Compensated Absences
The liability for vested vacation, compensatory time, and sick pay is recorded as an expense when
earned. District employees have a vested interest in 100 percent of accrued vacation time and 85
percent of accrued sick time for employees hired before May 1, 1985. Employees hired after May
1, 1985 have a vested interest in up to 40 percent of their sick time, based upon length of
employment with the District.
The changes in compensated absences were as follows for fiscal year ended June 30, 2013:
Beginning Balance
Additions
Payments
$3,710,580
783,906
(661,241)
Ending Balance $3,833,245
Current Portion $383,000
The current portion of the liability to be used within the next year is estimated by management to
be approximately 10% of the ending balance.
18
CENTRAL CONTRA COSTA SANITARYDISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 1— DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
J. Statement of Cash Flows
For purposes of the statement of cash flows, all highly liquid investments, including restricted
assets, with maturities of three months or less when purchased, are considered to be cash
equivalents. Included therein are petty cash, bank accounts, and the State of California Local
Agency Investment Fund (LAIF). Restricted assets are debt service amounts maintained by
fiduciaries and not available for general expenses.
K. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from those estimates.
L. Implementation of Governmental Accounting Standards Board (GASB) Pronouncements
GASB Statement No. 60 — In November 2010, the GASB issued Statement No. 60, Accounting
and Financial Reporting for Service Concession Arrangements. The objective of this Statement
is to improve financial reporting by addressing issues related to service concession arrangements
(SCAB), which are a type of public - private or public - public partnerships. The requirements of
this Statement are effective for financial statements for periods beginning after December 15,
2011. This Statement had no impact on the District's financial statements for fiscal year ending
June 30, 2013.
GASB Statement No. 61 — In November 2010, the GASB issued Statement No. 61, The
Financial Reporting Entity: Omnibus — an amendment of GASB Statements No. 14 and No. 34.
The objective of this Statement is to improve financial reporting for a governmental financial
reporting entity. The provisions of this Statement are effective for financial statements for
periods beginning after June 15, 2012. This Statement did not have a material impact on the
District's financial statements for fiscal year ending June 30, 2013.
GASB Statement No. 62 — In December 2010, the GASB issued Statement No. 62, Codification
of Accounting and Financial Reporting guidance Contained in Pre - November 30, 1989 FASB
and AICPA Pronouncements. The objective of this Statement is to incorporate into the GASB's
authoritative literature certain accounting and financial reporting guidance that is included in the
FASB and AICPA pronouncements, which does not conflict with or contradict GASB
pronouncements. The requirements of this Statement are effective for financial statements for
periods beginning after December 15, 2011. This Statement did not have a material impact on the
District's financial statements for fiscal year ending June 30, 2013.
19
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR TBE YEAR ENDED JUNE 30, 2013
NOTE 1– DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
GASB Statement No. 63 – In June 2011, the GASB issued Statement No. 63, Financial
Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position.
This Statement provides financial reporting guidance for deferred outflows of resources and
deferred inflows of resources. In addition to assets, the statement of financial position or balance
sheet will sometimes report`a separate section for deferred outflows of resources. This separate
financial statement element, deferred outflows of resources, represents a consumption of net
position or fund balance that applies to a future period(s) and so will not be recognized as an
outflow of resources (expense /expenditure) until then. In addition to liabilities, the statement of
financial position or balance sheet will sometimes report a separate section for deferred inflows of
resources. This separate financial statement element, deferred inflows of resources, represents an
acquisition of net position or fund balance that applies to a future period(s) and so will not be
recognized as an inflow of resources (revenue) until that time.
The provisions of this Statement are effective for financial statements for periods beginning after
December 15, 2011. This Statement changed certain financial statement titles and nomenclature
on the District's financial statements for fiscal year ending June 30, 2013.
GASB Statement No. 65 – In March 2012, the GASB issued Statement No. 65, Items Previously
Reported as Assets and Liabilities. This Statement establishes accounting and financial reporting
standards that reclassify, as deferred outflows of resources or deferred inflows of resources,
certain items that were previously reported as assets and liabilities and recognizes, as outflows of
resources or inflows of resources, certain items that were previously reported as assets and
liabilities. The provisions of this Statement are effective for financial statements for periods
beginning after December 15, 2012. This Statement will not have a material effect on the
financial statements.
GASB Statement No. 66 – In March 2012, the GASB issued Statement No. 66, Technical
Corrections-2012—an amendment of GASB Statements No. 10 and No. 62. The objective of
this Statement is to improve accounting and financial reporting for a governmental financial
reporting entity by resolving conflicting guidance that resulted from the issuance of two
pronouncements, Statements No. 54, Fund Balance Reporting and Governmental Fund Type
Definitions, and No. 62, Codification of Accounting and Financial Reporting Guidance
Contained in Pre - November 30, 1989 FASB and AICPA Pronouncements. The provisions of this
Statement are effective for financial statements for periods beginning after December 15, 2012.
This Statement will not have a material effect on the financial statements.
GASB Statement No. 67 – In June 2012, the GASB issued Statement No. 67, Financial
Reporting for Pension Plans —an amendment of GASB Statement No. 25. The requirements of
this Statement will improve financial reporting primarily through enhanced note disclosures and
schedules of required supplementary information that will be presented by the pension plans that
are within its scope. The provisions of this Statement are effective for financial statements for
periods beginning after June 15, 2013. This Statement will not have a material effect on the
financial statements.
20
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 1— DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
GASB Statement No. 68 — In June 2012, the GASB issued Statement No. 68, Accounting and
Financial Reporting for Pensions --an amendment of GASB Statement No. 27. The requirements
of this Statement will improve the decision - usefulness of information in employer and
governmental nonemployer contributing entity financial reports and will enhance its value for
assessing accountability and interperiod equity by requiring recognition of the entire net pension
liability and a more comprehensive measure of pension expense. The provisions of this
Statement are effective for financial statements for periods beginning after June 15, 2014,
therefore, the District will implement this Statement in fiscal year ending June 30, 2015. This
Statement will have a material effect on the financial statements.
NOTE 2 — CASH AND INVESTMENTS
A. Summary of Cash and Investments
Investments as of June 30, 2013, are classified in the accompanying financial statements as follows:
Cash and cash equivalents
$46,714,788
Short term investments
10,498,624
Restricted cash and cash equivalents
100,000
Restricted investments
5,412,500
Total Cash and Investments
$62,725,912
B. Policies and Practices
The District is authorized under California Government Code to make direct investments in local
agency bonds, notes, or warrants within the State: U.S. Treasury instruments, registered State
warrants or treasury notes, securities of the U.S. Governments, or its agencies, commercial paper,
certificates of deposit placed with commercial banks and/or savings with loan companies, and
certificates of participation. State code and the District's investment policy prohibit the District
from investing in investments with a rating of less than A or equivalent.
21
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 2 — CASH AND INVESTMENTS (Continued)
C. General Authorizations
Limitations as they relate to interest rate risk, credit risk, and concentration of credit risk are
indicated in the schedules below:
California State Limits
Maximum Maximum
Remaining Percentage
Authorized Investment Type Maturity of Portfolio
District
Policy
Maximum Maximum
Investment Percentage
In One Issuer of Portfolio
District
Policy
Minimum
Legal
Quality
U.S. Treasury Obligations
5 years
None
None
100%
N/A
Banker's Acceptances
180
40%
40%
10%
N/A
Commercial Paper (1)
270
25%
10%
10%
Aaa
Collateralized Certificates of Deposit (2)
5 years
30%
None
10%
Aaa
County Pooled Investment Funds
N/A
None
None
100%
N/A
Local Agency Investment Fund (LAIF)
N/A
None
None
100%
N/A
(1) Prime quality; limited to corporations with assets over $500,000,000
(2) Prior approval of the Board of Directors must be obtained to acquire maturities beyond one year, excluding Treasury Notes and LAIF.
D. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment; generally, the longer the maturity of an investment, the greater the sensitivity of
its fair value to changes in market interest rates. It is the District's policy to manage exposure to
interest rate risk by purchasing a combination of shorter term and longer term investments and by
timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to
maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
District policy is that investment maturities do not exceed one year, with the exception of Treasury
Notes or Local Agency Investment Fund; however, investments can be held longer with Board
approval.
The District's investments at year end with the exception of the U.S. Treasuries and Commercial
Paper below are held in external investment pools which are liquid investments.
22
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 2 — CASH AND INVESTMENTS (Continued)
E.
F.
Information about the sensitivity of the fair values of the District's investments to market interest
rate fluctuation is provided by the following schedule that shows the distribution of the District's
investments by maturity, as of June 30, 2013:
12 Months
Investment Type or less Maturity
Certificates of Deposit $7,000,136
Certificates of Deposit - Debt Reserve 5,412,500
Commercial Paper 3,498,488
California Local Agency Investment Fund 43,011,748
Total Investments 58,922,872
Cash in bank 3,803,040
Total Cash and Investments $62,725,912
Credit Risk
7/26/13
4/30/14
7/26/13
Not applicable
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the actual rating as of the June 30, 2013 of each
investment type:
Investment Type
Certificates of Deposit
Commercial Paper
Totals
Not rated.•
California Local Agency Investment Fund
Cash in Bank
Total Cash and Investments
Concentration of Credit Risk
Aaa Total
$12,412,636 $12,412,636
3,498,488 3,498,488
$15,911,124 15,911,124
43,01 1,748
3,803,040
$62,725,912
The District is a voluntary participant in LAIF which is regulated by the California Government
Code under the oversight of the Treasurer of the State of California. LAIF is not registered with
the Securities and Exchange Commission. The fair value of the District's investment in this pool
is reported in the accompanying financial statements at amounts based upon the District's pro -
rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the
amortized cost of that portfolio). The balance available for withdrawal is based on the accounting
records maintained by LAIF, which are recorded on an amortized cost basis. At June 30, 2013
these investments matured in an average of 278 days.
23
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 2 — CASH AND INVESTMENTS (Continued)
Investments in County Treasury — The District is considered to be a voluntary participant in an
external investment pool. The fair value of the District's investment in the pool is reported in the
financial statements in cash and cash equivalents at amounts based upon the District's pro -rata
share of the fair value provided by the County Treasurer for the entire portfolio (in relation to
amortized cost of that portfolio). The balance available for withdrawal is based on the accounting
records maintained by the County Treasurer, which is recorded on the amortized cost basis.
G Custodial Credit Risk - Investments
Custodial risk for investments is the risk that, in the event of the failure of the counterparty (e.g.
the broker - dealer) to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The California
Government Code does not contain legal or policy requirements that would limit the exposure to
custodial credit risk. The District's policy is to use the services of the Treasurer's Office of the
County of Contra Costa, which will transact the District's investment decisions in compliance
with the requirements of the District's policy. The County Treasurer's Office will execute the
District's investments through such broker - dealers and financial institutions as are approved by
the County Treasurer, and through the State Treasurer's Office for investment in the Local
Agency Investment Fund.
NOTE 3 — ACCOUNTS RECEIVABLE
Accounts receivable are comprised of the following at June 30, 2013:
City of Concord (see Note 8) $14,100,192
Household Hazardous Waste Partners 837,802
All Other 1,579,555
Total Accounts Receivable $16,517,549
NOTE 4 — ASSESSMENT DISTRICTS RECEIVABLE
The District established the Contractual Assessment District (CAD) program to help homeowners
finance the cost of connecting to the District. The construction costs associated with the project
within the program are capitalized and depreciated. Individual homeowners are assessed at an
amount equal to their share of the construction costs and connection fee. The assessments, plus
interest, are generally payable over 10 years. At June 30, 2013, the CAD receivable balance was
$434,396.
The District also established the Alhambra Valley Assessment District (AVAD) to provided
services to residents in the Alhambra Valley in Martinez. Residents have the choice to pay cash
or finance the construction costs and connection fees. At June 30, 2013, the AVAD receivable
balance was $1,655,065.
The total receivable balance at June 30 2013 for CAD and AVAD was $2,089,461, and is shown
as a non - current asset on the Statement of Net Position.
24
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 5 — CAPITAL ASSETS
Property, plant and equipment, and construction in progress are summarized below for the year
ended June 30, 2013:
NOTE 6 — LONG -TERM DEBT
A. 2009 Wastewater Revenue Certificates of Participation
On November 12, 2009 and December 3, 2009 the District issued two Certificates of Participation
(COP).
The 2009 Wastewater Revenue Certificates of Participation, Series A and Series B were issued
for $19,635,000 and $34,490,000, respectively. The Series A COP are federally taxable "Build
America Bonds" which have a direct 35% interest rate subsidy from the Federal Government.
Yields on this series range from 3.45% to 3.78 %, net of the subsidy. The Series B COP are tax
exempt bonds that were used to refund the 1998 and 2002 bond issues and raise an additional $30
million in new proceeds with yields ranging from .40% to 3.79 %.
25
Balance at
Transfer
Balance at
June 30, 2012
Additions
Retirements
from CIP
June 30, 2013
Capital assets not being depreciated:
Land
$17,114,720
$147,529
$17,262,249
Construction in Progress
22,469,694
$27,185,118
(25,121,558)
24,533,254
Total nondepreciated assets
39,584,414
27,185,118
(24,974,029)
41,795,503
Capital assets being depreciated:
Sewage collection system
303,693,519
7,940,470
311,633,989
Contributed sewer lines
149,895,302
706,873
232,755
150,834,930
Outfall sewers
8,518,443
2,820,492
11,338,935
Sewage treatment plant
292,432,883
($200,000)
7,597,583
299,830,466
Recycled water infrastructure
13,335,295
179,731
13,515,026
Pumping stations
54,412,730
54,412,730
Buildings
34,477,124
1,643,596
36,120,720
Intangibles
2,463,834
2,132,633
4,596,467
Furniture and equipment
14,031,564
(10,001)
1,629,649
15,651,212
Motor vehicles
6,010,773
(249,828)
797,120
6,558,065
Total depreciated assets
879,271,467
706,873
(459,829)
24,974,029
904,492,540
Less accumulated depreciation:
Sewage collection system
48,955,471
4,148,192
53,103,663
Contributed sewer lines
49,109,345
2,017,935
51,127,280
Outfall sewers
2,880,325
132,156
3,012,481
Sewage treatment plant
170,703,542
10,167,282
(200,000)
180,670,824
Recycled water infrastructure
5,362,386
535,957
5,898,343
Pumping stations
22,167,742
2,175,187
24,342,929
Buildings
7,019,734
1,039,434
8,059,168
Intangibles
88,247
47,069
135,316
Furniture and equipment
10,818,661
1,042,928
(10,001)
11,851,588
Motor vehicles
4,060,684
290,126
(249,828)
4,100,982
Total accumulated depreciation
321,166,137
21,596,266
(459,829)
342,302,574
Total capital assets being
depreciated, net
558,105,330
(20,889,393)
24,974,029
562,189,966
Capital assets, net
$597,689,744
$6,295,725
$603,985,469
NOTE 6 — LONG -TERM DEBT
A. 2009 Wastewater Revenue Certificates of Participation
On November 12, 2009 and December 3, 2009 the District issued two Certificates of Participation
(COP).
The 2009 Wastewater Revenue Certificates of Participation, Series A and Series B were issued
for $19,635,000 and $34,490,000, respectively. The Series A COP are federally taxable "Build
America Bonds" which have a direct 35% interest rate subsidy from the Federal Government.
Yields on this series range from 3.45% to 3.78 %, net of the subsidy. The Series B COP are tax
exempt bonds that were used to refund the 1998 and 2002 bond issues and raise an additional $30
million in new proceeds with yields ranging from .40% to 3.79 %.
25
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 6 — LONGTERM DEBT (Continued)
The two bonds total $54,125,000, and are secured by a pledge of revenue. Principal payments
began annually on September 1, 2010 with semi -annual payments due on September 1 and March
1 of each year. Both bonds will be fully amortized as of September 1, 2029. The refunded
portion of the original bonds will be paid off based on the original amortization schedule.
B. Summary of Activity
The changes in the District's long -term obligations during the year consisted of the following:
2009 Series A Certificates of Participation
Wastewater Revenue
3.45 - 3.78 %, due 9/1/2029
2009 Series B Certificates of Participation
Wastewater Revenue
.40- 3.79 %, due 9/1/2029
1999 State Water Resources Control Board
Water Reclamation Loan
2.60 %, due 3/31/2018
Total Long -Term Debt
Less current portion
C. Debt Service Requirements
Original Amount
Issue Balance Balance due within
Amount June 30, 2012 Retirements June 30, 2013 one year
$19,635,000 $19,635,000 $19,635,000 -
34,490,000 27,565,000 $3,605,000 23,960,000 $3,720,000
2,916,872 1,027,238 160,411 866,827 164,582
48,227,238 $3,765,411
(3,765,411)
$44,461,827
The 2009 Revenue COP debt service requirements are as follows:
44,461,827 $3,884,582
(3,884,582)
$40,577,245
Fiscal Year
Series A
Ending
Series
Series
Total
35 %Tax
Net
June 30,
Principal
Interest
Principal
Interest
Principal
Interest
Subsidy
Total
2014
$1,190,840
$3,720,000
$851,683
$3,720,000
$2,042,523
($416,794)
$5,345,729
2015
1,190,840
3,865,000
700,467
3,865,000
1,891,307
(416,794)
5,339,513
2016
1,190,840
2,210,000
601,033
2,210,000
1,791,873
(416,794)
3,585,079
2017
1,190,840
2,300,000
501,300
2,300,000
1,692,140
(416,794)
3,575,346
2018
1,190,840
2,405,000
424,175
2,405,000
1,615,015
(416,794)
3,603,221
2019-2023
$5,150,000
5,460,060
8,280,000
924,558
13,430,000
6,384,618
(1,911,021)
17,903,597
2024 -2028
9,920,000
2,931,816
1,180,000
9,833
11,100,000
2,941,649
(1,026,135)
13,015,514
2029 -2030
4,565,000
202,450
4,565,000
202,450
(70,858)
4,696,592
Total
$19,635,000
$14,548,526
$23,960,000
$4,013,049
$43,595,000
$18,561,575
($5,091,984)
$57,064,591
As part of the Federal budget sequestration, the Internal Revenue Service (IRS) has announced
that as of March 1, 2013, credit payments claimed by issuers of certain tax credit bonds,
including Build America Bonds, may be subject to a reduction of 8.7 %.
26
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 6 — LONGTERM DEBT (Continued)
D. Water Reclamation Loan Contract
The District entered into a contract with the State of California State Water Resources Control
Board (Board), which advanced the District $2,916,872 for design and construction costs for
projects related to recycled water treatment programs.
The District must repay advances from the Board over a 20 -year period beginning March 31,
1999, with an interest rate of 2.60 %. Debt service requirements are as follows:
Fiscal Year
Ending June 30
Principal
Interest
Total
2014
$164,582
$22,537
$187,119
2015
168,861
18,258
187,119
2016
173,251
13,868
187,119
2017
177,756
9,363
187,119
2018
182,377
4,742
187,119
Total
$866,827
$68,768
$935,595
NOTE 7 — RISK MANAGEMENT
The District is exposed to various risks of loss including torts, theft of, damage to, and
destruction of assets, errors and omissions, injuries to employees, and natural disasters. To
manage these risks, the District joined with other entities to form the California Sanitation Risk
Management Authority (CSRMA), a public entity risk pool currently operating as a common risk
management and insurance program for the member entities. The purpose of CSRMA is to
spread the adverse effects of losses among the member entities and to purchase excess insurance
as a group, thereby reducing its cost. Through CSRMA, the District purchases property
insurance and workers' compensation insurance.
27
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 7 — RISK MANAGEMENT (Continued)
A. Insurance Coverage
The District's insurance coverage is as follows:
Type of Coverage Insurer
All -Risk Property:
Fire Public Entity Property
Insurance Program ( PEPIP)
Boiler and Machinery PEPIP
(Shared Limits per Occurrence)
Crime Travelers
Liability:
Errors and Omissions
Employment Practices Liability
Employment Practices Liability
General Liability
Auto Liability
Pollution (General Aggregate)
General Liability (Occurrence)
Pollution (Legal Liability Aggregate)
Fiduciary Liability
Insurance Company of the
State of Pennsylvania
Chartis
Hiscox Insurance Company
Chartis
Chartis
Chartis Specialty Insurance Co.
Chartis Specialty Insurance Co.
RLI Insurance Company
Workers' Compensation: CSRMA
Excess Workers' Compensation Safety National Casualty
Corporation
B. Liability for Uninsured Claims
Self Insured
Deductible Per
Limits Occurrence
$556,015,744 $250,000
100,000,000 250,000
1,000,000
15,000,000
15,000,000
1,000,000
15,000,000
15,000,000
5,000,000
25,000
1,000,000
1,000,000
35,000
1,000,000
1,000,000
5,000
10,000,000
50,000
1,000,000
0
750,000
0
Statutory
750,000
The Governmental Accounting Standard Board (GASB) requires state and local governments to
record their liability for uninsured claims in their financial statements.
The District's uninsured claims activity and exposure relates primarily to its general and automobile
liability program. The District records its estimated liability for uninsured claims in this area based on
the results of periodic actuarial evaluations. The actuarial evaluations are typically performed every
two years. For intervening years, the liability for uninsured claims is reviewed for adequacy based on
claims activity during the intervening period.
28
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 7 — RISK MANAGEMENT (Continued)
For fiscal years ended June 30, 2013, 2012, and 2011, settlements have not exceeded insurance
coverage. Changes in the District's estimated liability for uninsured claims are summarized as
follows as of June 30:
2013 2012 2011
Beginning balance $1,000,000 $1,000,000 $1,000,000
Provisions for claims incurred in the current year
and changes in the liability for uninsured -
claims incurred in prior years
(1,659,291)
72,606
240,844
Claims paid and/or adjustments
1,659,291
(72,606)
(240,844)
Ending balance
$1,000,000
$1,000,000
$1,000,000
In March 2012, the District had an explosion in its Plant Operations Department Cogeneration
(Cogen) Unit. Expenses for the investigation, recovery, repair, extra energy, and staff time were
tracked by Risk Management and totaled $1,793,221. Of that $250,000 was charged to the District's
self-insurance and the balance was submitted to insurance as claims. After disallowing $179,024 in
claims, the District received $1,364,197 in recovery payments. All expenses and reimbursements
were completed in FY 2012 -13.
NOTE 8 — AGREEMENT WITH THE CITY OF CONCORD
In 1974, the District and the City of Concord (the City) entered into a cost - sharing agreement under
which the District became responsible for providing sewage treatment facilities and services to the
City. Under this agreement, the City pays a service charge for its share of operating, maintenance and
administrative costs and makes a contribution for its share of facilities and makes a contribution for its
share of facilities capital costs expended. Service charges and contributions to capital costs from the
City totaled $10,483,421 and $3,616,771, respectively, for the year ended June 30, 2013, for a total of
$14,100,192.
29
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 9 — PENSION PLANS
A. Contra Costa County Employee's Retirement Association Plan
Plan Description
Substantially all District permanent employees are required to participate in the Contra Costa
County Employees' Retirement Association (CCCERA), a cost - sharing multiple employer public
defined benefit retirement plan (Plan), governed by the County Employee's Retirement Law of
1937, as amended. The latest available actuarial and financial information for the Plan is for the
year ended December 31, 2012. The Contra Costa Employees' Retirement Association issues a
publicly available financial report that includes financial statements and supplemental information
of the Plan. That report is available by writing to Contra Costa County Employees' Retirement
Association, 1355 Willow Way, Suite 221, Concord, CA 94520 -5728 or by calling (925) 521 -3960.
The Plan provides for retirement,. disability, and death and survivor benefits. Annual cost of living
(COL) adjustments to retirement allowances can be granted by the Retirement Board as provided
by State statutes. Retirement benefits are based on age, length of service, date of membership and
final average salary.
Subject to vested status, employees can withdraw contributions plus interests credited, or leave
them as a deferred retirement when they terminate, or transfer to a reciprocal retirement system.
Plan Contribution Requirement
The Plan requires employees to pay a portion of the basic retirement benefit and a portion of future
COL costs. However, the District has paid the majority of the employees' basic contributions in
accordance with the Memorandum of Understanding (MOU). Employees must pay the COL
portion of the employee rate. The contribution requirement and payment from the District for the
plan years ended June 30, 2013, 2012 and 2011 was as follows:
The District pension plan covered 251 participants as of June 30, 2013.
2013
2012
2011
Covered Payroll for fiscal years ended June 30
$24,752,463
$24,305,548
$24,709,477
Employer required contributions to pension
14,029,374
10,961,853
8,950,938
Employee (COL) required contributions to pension
1,289,095
922,520
930,648
Total required contributions
$15,318,469
$11,884,373
$9,881,586
Percentage of payroll
62%
49%
40%
The District pension plan covered 251 participants as of June 30, 2013.
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 9 — PENSION PLAN (Continued)
CCCERA determines contribution requirements using a modification of the Entry Age Normal
Method. Under this method, the District's total normal benefit cost for each employee from date of
hire to date of retirement is expressed as a level percentage of the related total payroll cost. Normal
benefit cost under this method is the level amount the employer must pay annually to fund an
employee's projected retirement benefit. This level percentage of payroll method is used to amortize
any unfunded actuarial liabilities. The actuarial assumptions used to compute contribution
requirements are also used to compute the actuarially accrued liability. The District uses the
actuarially determined percentages of payroll to calculate and pay contributions to CCCERA. This
results in no net pension obligations or unpaid contributions. Annual Pension Costs, representing
the payment of all actuarially required contributions required by CCCERA, for the last three years
were as follows:
*Please note that CCCERA's fiscal year ends December 31.
The following is a summary of the actuarial assumptions and methods:
Valuation date
Annual
Actuarial cost method
Percentage
Amortization method
Pension Cost
Actual
of APC
- Fiscal Year*
(APC)
Contribution
Contributed
12/31/2011
$9,881,586
$9,881,586
100%
12/31/2012
11, 884,373
11,884,373
100%
12/31/2013
15,318,469
15,318,469
100%
*Please note that CCCERA's fiscal year ends December 31.
The following is a summary of the actuarial assumptions and methods:
Valuation date
December 31, 2012
Actuarial cost method
Entry Age Normal Cost Method
Amortization method
Level percent of payroll for total unfunded liability
(4.00% payroll growth assumed)
Remaining amortization period
Remaining balance of December 31, 2007 UAAL is amortized over
a fixed (decreasing or closed) period with 10 years remaining as of
December 31, 2012. Any changes in UAAL after December 31, 2007
will be separately amortized over a fixed 18 -year period effective with
that valuation.
Assets valuation method
Market value of assets less unrecognized returns in each of the last
of the last nine semi - annual accounting periods. Unrecognized return
is equal to the difference between the actual market return and the
expected return on the market value, and is recognized semi - annually
over a five -year period. The Actuarial Value of Assets is reduced by
the value of the non - valuation reserves and designations.
Actuarial assumptions:
Investment rate of return
7.75%
Inflation rate
3.25%
Cost -of- living adjustments
3.00%
31
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 9 — PENSION PLANS (Continued)
The schedule of funding progress presents multi -year trend information about whether the actuarial
value of plan assets is increasing or decreasing over time relative to the actuarial accrued liability
for benefits. CCCERA's latest actuarial value and funding progress for the pool are shown below:
The CCCERA Board took a depooling action in October, 2009 which yielded 12 separate cost
groups by employer, with the exception of smaller employers (those with less than 50 active
members) who continue to be pooled with the applicable county tier. The depooling action affected
employer rates effective July 1, 2011.
Public Employees' Pension Reform Act (PEPRA)
Assembly Bill 340 (AB 340) created the Public Employees' Pension Reform Act (PEPRA) that
implemented new benefit formulas and final compensation periods, as well as new contribution
requirements for most new employees with a membership date on or after January 1, 2013, who
meet the definition of new member under PEPRA.
The table below provides the details of the new provisions.
Benefit Formula
Final Compensation Period
Employer Contribution Rate
as a percentage payroll
Member Contribution Rate as
a percentage of payroll
2.5% at Age 67
Average of last 3 years
10.19% of Reportable
Compensation
10.25% of Reportable
Compensation
The employer contribution rate listed above is in effect until June 30, 2014. In accordance with the
provisions of AB 340, the member contribution rate shown above was set at 50 percent of expected
total normal cost rate, rounded to the nearest' /4 percent, for the benefits that will apply to new
members on January 1, 2013.
32
Unfunded
Unfunded
(Overfunded)
(Overfunded)
Actuarial Accrued
Actuarial
Liability as a
Entry Age
Accrued
Percentage of
Actuarial
Actuarial Asset
Actuarial Accrued
Liability (B -A),
Funded
Covered
Covered Payroll
Valuation Date
Value (A)
Liability (B)
(C)
Ratio (A/B)
Payroll (D)
(C/D)
12/31/2010
$5,341,821,711
$6,654,036,801
$1,312,215,090
80.28%
$687,443,206
190.88%
12/31/2011
5,426,719,066
6,915,311,649
1,488,592,583
78.47%
666,394,146
223.38%
12/31/2012
5,482,257,062
7,761,315,535
2,279,058,473
70.64%
652,312,180
349.38%
The CCCERA Board took a depooling action in October, 2009 which yielded 12 separate cost
groups by employer, with the exception of smaller employers (those with less than 50 active
members) who continue to be pooled with the applicable county tier. The depooling action affected
employer rates effective July 1, 2011.
Public Employees' Pension Reform Act (PEPRA)
Assembly Bill 340 (AB 340) created the Public Employees' Pension Reform Act (PEPRA) that
implemented new benefit formulas and final compensation periods, as well as new contribution
requirements for most new employees with a membership date on or after January 1, 2013, who
meet the definition of new member under PEPRA.
The table below provides the details of the new provisions.
Benefit Formula
Final Compensation Period
Employer Contribution Rate
as a percentage payroll
Member Contribution Rate as
a percentage of payroll
2.5% at Age 67
Average of last 3 years
10.19% of Reportable
Compensation
10.25% of Reportable
Compensation
The employer contribution rate listed above is in effect until June 30, 2014. In accordance with the
provisions of AB 340, the member contribution rate shown above was set at 50 percent of expected
total normal cost rate, rounded to the nearest' /4 percent, for the benefits that will apply to new
members on January 1, 2013.
32
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 9 — PENSION PLANS (Continued)
B. Deferred Compensation Plan
District employees may defer a portion of their compensation under a District sponsored Deferred
Compensation Plan created in accordance with Internal Revenue Code Section 457. Under this
plan, participants are not taxed on the deferred portion of their compensation until it is distributed to
them; distributions may be made only at termination, retirement, death, or in an emergency as
defined by the plan. The District does not make contributions to the plan.
The plan's 457 assets are held in trust for the exclusive benefit of the participants and are not
included in the District's financial statements.
C. 401 (a) Defined Contribution Plan
The District also contributes to a money purchase plan created in accordance with Internal Revenue
Code section 401(a). Contributions to the plan are made in accordance with a memorandum of
understanding stating that in lieu of making payments to Social Security, the District contributes to
the 401(a) Plan an amount equal to that which would have been contributed to Social Security on
behalf of its employees as long as the District is not required to participate in Social Security. The
assets are held in trust and are not recorded on the books of the District. The District contributed
$1,546,318 to the Plan during the year ended June 30, 2013.
NOTE 10 — POST EMPLOYMENT HEALTH CARE BENEFITS
A. Plan Description
The District's defined benefit post employment healthcare plan (DPBP) provides medical benefits
to eligible retired District employees and beneficiaries. DPBP is part of the Public Agency portion
of the Public Agency Retirement System (PARS), an agent multiple- employer plan administered by
PARS, which acts as a common investment and administrative agent for participating public
employees within the State of California. A menu of benefit provisions as well as other
requirements is established by the State statute with the Public Employees' Retirement Law. DPBP
selects optional benefit provisions from the benefit menu by contract with PARS and adopts those
benefits through District resolution. PARS issues a separate Comprehensive Annual Financial
Report. Copies of the PARS annual financial report may be obtained from PARS, 4350 Von
Karman Ave., Suite 100, Newport Beach, CA 92660, by calling 1(800) 540 -6369, or by emailing
info @pars.org.
B. Funding Policy
GASB Statement No. 45 set rules for computing the employer's expense for retiree benefits other
than pension, called OPEB. The expense, called the annual OPEB Cost (AOC), is determined
similarly to pensions. The annual required contribution (ARC) of the employer, represents a level
of funding that, if paid on an ongoing basis, is projected to cover normal annual costs each year and
amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years.
33
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 10 — POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
When an agency contributes more than the ARC, there is a net OPEB asset (NOA); when the
contribution is less than the ARC, a net OPEB obligation (NOO) results. The District had a net
OPEB asset of $1,537,638 as of June 30, 2013.
Because of the volatility of the investment market, the District Board voted to make monthly
installments into the OPEB Trust to take advantage of dollar- cost - averaging.
C Annual OPEB Cost and Net OPEB Asset
For 2013, the District's annual OPEB cost (expense) was equal to the ARC of $8,300,000. The
District contributed $4,823,096 for retiree health care premiums and $3,767,000 to the PARS trust
for a total of $8,590,096. The following table summarizes the changes in the District's net OPEB
(Asset) at June 30, 2013:
Annual Required Contribution (ARC)
$8,300,000
Interest on NOA
(82,000)
Adjustment to ARC
98,000
Annual OPEB Cost (AOC)
8,316,000
Contributions Made:
June 30, 2012
Health care premiums paid
(4,823,096)
Contributions to PARS trust
(3,767,000)
Increase (decrease) in net OPEB obligation
(274,096)
Net OPEB Obligation (Asset) - Beginning of Year
(1,263,542)
Net OPEB Obligation (Asset) - End of Year
($1,537,638)
The District's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and
the OPEB asset for the past three years are presented below:
34
Percentage of
AOC
Contributed
102%
104%
103%
Current Year
AOC
Obligation
(Asset)
($169,805)
(346,806)
(274,096)
Net OPEB
Obligation
(Asset)
($916,736)
(1,263,542)
(1,537,638)
Annual OPEB
Actual
Fiscal Year
Cost (AOC)
Contribution
June 30, 2011
$6,976,364
$7,146,169
June 30, 2012
8,300,000
8,646,806
June 30, 2013
8,316,000
8,590,096
34
Percentage of
AOC
Contributed
102%
104%
103%
Current Year
AOC
Obligation
(Asset)
($169,805)
(346,806)
(274,096)
Net OPEB
Obligation
(Asset)
($916,736)
(1,263,542)
(1,537,638)
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 10 — POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
D. Funded Status and Funding Progress
Per PARS, actuarial assets as of June 30, 2013 and 2012, including trust contributions and interest,
total $29,352,833 and $22,718,524, respectively. Actuarial valuations of an ongoing plan involve
estimates of the value of reported amounts and assumptions about the probability of occurrence of
events far into the future. Examples include assumptions about future employment, mortality, and
the health care cost trend. The funded status of the plan and the annual required contributions of
the employer are subject to continual revision, as actual results are compared with past expectations
and new estimates are made about the future. The schedule of funding progress, presented below
presents multiyear trend information that shows whether the actuarial value of the plan assets is
increasing or decreasing over time, relative to the actuarial liabilities for benefits.
Projections for benefits for financial reporting purposes are based on the substantive plan (the plan
as understood by the employer and plan members) and include the types of benefits provided at the
time of each valuation as well as the historical pattern of sharing benefit costs between the
employer and plan members. The actuarial methods and assumptions used include techniques that
are designed to reduce short-term volatility in actuarial accrued liabilities and actuarial value of
assets, consistent with the long -term perspective of the calculations.
The District's most recent actuarial valuation was prepared as of July 1, 2012 and was finalized on
May 31, 2013. The June 30, 2012 actuarial valuation results will be budgeted in fiscal years 2013-
14 and 2014 -15. The ARC decreased from $8,300,000 to $8,103,000.
35
Unfunded
Unfunded
(Overfunded)
Cost Method
(Overfunded)
Actuarial
Actuarial
Actuarial
Actuarial
Covered Payroll
Liability as
Actuarial
Value of
Accrued
Accrued
Funded
(Active Plan
Percentage of
Valuation
Assets
Liability
Liability
Ratio
Members)
Covered Payroll
Date
(A)
(B)
(A — B) UAAL
(A/B)
(C)
((A — B) /Cl
June 30, 2009
$2,341,251
$68,769,305
($66,428,054)
3.40%
$25,080,233
265%
June 30, 2010
9,404,000
90,337,000
(80,933,000)
10.41%
25,080,233
323%
July 1, 2012
22,481,000
100,498,000
(78,017,000)
22.37%
24,305,548
321%
E. Actuarial
Methods and Assumptions
Projections for benefits for financial reporting purposes are based on the substantive plan (the plan
as understood by the employer and plan members) and include the types of benefits provided at the
time of each valuation as well as the historical pattern of sharing benefit costs between the
employer and plan members. The actuarial methods and assumptions used include techniques that
are designed to reduce short-term volatility in actuarial accrued liabilities and actuarial value of
assets, consistent with the long -term perspective of the calculations.
The District's most recent actuarial valuation was prepared as of July 1, 2012 and was finalized on
May 31, 2013. The June 30, 2012 actuarial valuation results will be budgeted in fiscal years 2013-
14 and 2014 -15. The ARC decreased from $8,300,000 to $8,103,000.
35
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 10 — POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
The following is a summary of the actuarial assumptions and methods:
Valuation Date
Actuarial Cost Method
Amortization Method
Average Remaining Period
Actuarial Assumptions:
Investment Rate of Return
Inflation Rate
NOTE 11— NET POSITION
July 1, 2012
Entry Age Normal Cost Method
Level Dollar /Closed
26 Years fixed
6.25%
3.00%
Medical - 9.4% grading to 5% in 2021 - 22
Medicare Part B - same as medical trend
Dental - 4%
Net Position is the excess of all the District's assets over all its liabilities, regardless of fund. Net
Position is divided into three captions:
Net Investment in Capital Assets describes the portion of Net Position which is represented by the
current net book value of the District's capital assets, less the outstanding balance of any debt
issued to finance these assets.
Restricted describes the portion of Net Position which is restricted as to use by the terms and
conditions of agreements with outside parties, governmental regulations, laws, or other restrictions
which the District cannot unilaterally alter.
Unrestricted describes the portion of Net Position which is not restricted as to use.
NOTE 12 — LEASE COIVIlVIITMENT5
The District leases various facilities and equipment under operating leases. Following is a summary
of operating lease commitments as of June 30, 2013:
Fiscal Year
Ending
2014
2015
2016
2017
Thereafter
Total
Office
Eauinment
Facilities Total
$249,924
$58,416
$308,340
249,924
60,096
310,020
249,924
61,827
311,751
-
63,610
63,610
-
33,922
33,922
$749,772
$277,871
$1,027,643
Total rental expense for the fiscal year ended June 30, 2013 was $306,708.
36
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2013
NOTE 13 — COMNITTMENTS AND CONTINGENCIES
Commitments and contingencies, undeterminable in amount, include normal recurring pending
claims and litigation. In the opinion of management, based upon discussion with legal counsel,
there is no pending litigation which is likely to have a material adverse effect on the fmancial
position of the District.
Claims and losses are recorded when they are reasonably probable of being incurred and the
amount is estimable. Insurance proceeds and settlements are recorded when received.
The District has a number of purchase commitments for ongoing operating and capital projects that
involve multi -year contracts. Purchase commitments related to these multi -year contracts are
approximately $11,808,184 as of June 30, 2013.
37
This Page Left Intentionally Blank
SUPPLEMENTARY INFORMATION
V -1, .1
ll�s pa'aC iA31,1 k-,4 u x, 1�,-
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Short term investments
Accounts receivable
Interest receivable
Due from other sub -funds
Parts and supplies
Prepaid expenses
Total current assets
NON - CURRENT ASSETS:
Restricted cash and equivalents
Restricted investments
Assessment Districts receivable
Net OPEB asset
Revenue bonds issuance costs, net of amortization
CAPITAL ASSETS
Nondepreciable
Depreciable, net of accumulated depreciation
Total capital assets, net
Total non - current assets
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES:
Accounts payable and accrued expenses
Due to other sub -funds
Interest payable
Refunding Water Revenue Bonds - current portion
Water Reclamation Loan Contract - current portion
Accrued compensated absences - current portion
Liability for uninsured claims
Refundable deposits
Total current liabilities
NON - CURRENT LIABILITIES:
Refunding Water Revenue Bonds, noncurrent portion
Water Reclamation Loan Contract, noncurrent portion
Accrued compensated absences, noncurrent portion
Total noncurrent liabilities
TOTAL LIABILITIES
NETPOSITION
Net investment in capital assets
Restricted for debt service
Unrestricted
TOTAL NET POSITION
CENTRAL CONTRA COSTA SANITARY DISTRICT
COMBINING SCHEDULE OF NET POSITION
ENTERPRISE SUB -FUNDS
JANE 30, 2013
Running
Sewer
Self
Debt
5,376,935
Expense
Construction
Insurance
Service
Elimination
Total
718,147
$2,970,387
$39,891,572
$3,872,274
($19,445)
$46,714,788
10,498,624
10,498,624
11,789,066
3,760,182
968,301
16,517,549
26,488
2,349
36,484
1,000,000
65,321
118,416,830
89,775,752
1,700,940
55,110,409
($265,003,931)
-
2,005,741
341,437
133,626,086
119,942,733
2,861,223
2,005,741
2,204,210
11,704,101
2,204,210
137,386,234
143,952,618
6,543,864
55,127,448
(265,003,931)
78,006,233
100,000
2,089,461
1,537,638
41,795,503
562,189,966
603,985,469
5,412,500
315,287
100,000
5,412,500
2,089,461
1,537,638
315,287
41,795,503
562,189,966
603,985,469
605,623,107 2,089,461 5,727,787 613,440,355
743,009,341 146,042,079 6,543,864 60,855,235 (265,003,931) 691,446,588
2,782,414
2,540,088
54,433
5,376,935
130,277,654
117,244,226
1,806,790
15,675,261
(265,003,931)
718,147
718,147
3,720,000
3,720,000
164,582
164,582
383,000
383,000
1,000,000
1,000,000
183,018
158,419
341,437
133,626,086
119,942,733
2,861,223
20,277,990
(265,003,931)
11,704,101
39,875,000
39,875,000
702,245
702,245
3,450,245
3,450,245
3,450,245
-
40,577,245
44,027,490
137,076,331
119,942,733
2,861,223
60,855,235
(265,003,931)
55,731,591
603,985,469
(44,461,827)
559,523,642
4,730,837
4,730,837
1,947,541
26,099,346
3,682,641
39,730,990
71,460,518
$605,933,010
$26,099,346
$3,682,641
$635,714,997
41
CENTRAL CONTRA COSTA SANITARY DISTRICT
COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
ENTERPRISE SUB -FUNDS
FOR THE YEAR ENDING JUNE 30, 2013
OPERATING REVENUES
Sewer service charges (SSC)
Service charges - City of Concord
Other services charges
Miscellaneous charges
Total operating revenues
OPERATING EXPENSES
Sewage collection and pumping stations
Sewage treatment
Engineering
Administrative and general
Depreciation
Total operating expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Taxes
Permit and inspection fees
Interest earnings
Interest expense
Other income (expense)
Total nonoperating revenues
NET INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS
CAPITAL CONTRIBUTIONS AND TRANSFERS
City of Concord contributions to capital costs
Customer contributions to capital cost (SSC)
Contributed sewer lines
Capital contributions - connection fees
Transfers In (Out)
Total capital contributions and transfers
CHANGE IN NET POSITION
NET POSITION, BEGINNING OF YEAR
NET POSITION, END OF YEAR
Running
Sewer
Self
Debt
Expense
Construction
Insurance
Service
Elimination
Total
$56,770,984
$56,770,984
10,483,421
10,483,421
1,076,401
1,076,401
751,880
751,880
69,082,686
69,082,686
14,327,933
14,327,933
23,035,943
23,035,943
8,680,934
8,680,934
20,936,705
$2,380,466
($2,220,505)
21,096,666
21,596,266
21,596,266
88,577,781
2,380,466
(2,220,505)
88,737,742
(19,495,095)
(2,380,466)
2,220,505
(19,655,056)
$7,471,518
$5,538,959
13,010,477
967,576
202,233
1,169,809
131,614
230,054
15,269
28,537
405,474
(1,802,084)
(1,802,084)
665,939
285,161
2,220,505
(2,220,505)
951,100
1,765,129
8,188,966
2,235,774
3,765,412
(2,220,505)
13,734,776
(17,729,966)
8,188,966
(144,692)
3,765,412
(5,920,280)
3,616,771
3,616,771
4,384,376
4,384,376
939,628
939,628
6,091,529
6,091,529
27,185,118
(23,419,706)
(3,765,412)
28,124,746
(9,327,030)
-
(3,765,412)
15,032,304
10,394,780
(1,138,064)
(144,692)
9,112,024
595,538,230
27,237,410
3,827,333
626,602,973
$605,933,010
$26,099,346
$3,682,641
$635,714,997
42
CENTRAL CONTRA COSTA SANITARY DISTRICT
Schedule of Running Expenses
Comparison of Budget and Actual Expenses by Department
June 30, 2013
Less Capitalized
Overhead and Benefits
Total Salaries and Benefits
Directors' Fees and Expense
Chemicals
Utilities
Repairs and Maintenance
Hauling and Disposal
Professional and Legal Services
Outside Services
Self Insurance
Materials and Supplies
w Other
(21,699)
Sewage
(49,878)
Variance
Sewage
Treatment
Pumping
Favorable
Administration Engineering Collection
Plant
Stations Total
Budget (Unfavorable)
Salaries and Wages $4,412,199 $5,594,312 $5,074,422
$8,357,973
$894,930 $24,333,836
$23,891,546 ($442,290)
Employee Benefits 12,493,141 4,596,838 4,365,835
6,781,830
686,147 28,923,791
28,879,748 (44,043)
Less Capitalized
Overhead and Benefits
Total Salaries and Benefits
Directors' Fees and Expense
Chemicals
Utilities
Repairs and Maintenance
Hauling and Disposal
Professional and Legal Services
Outside Services
Self Insurance
Materials and Supplies
w Other
(21,699)
(3,255,448)
(49,878)
(119,384)
-
(3,446,409)
(3,756,000)
(309,591)
16,883,641
6,935,702
9,390,379
15,020,419
1,581,077
49,811,218
49,015,294
(795,924)
115,880
-
-
-
-
115,880
161,960
46,080
- _
-
-
1,144,675
430,279
1,574,954
1,581,000
6,046
149,283
67,422
136,388
3,013,348
479,394
3,845,835
3,906,150
60,315
429,567
81,522
623,001
1,614,895
402,142
3,151,127
3,644,811
493,684
-
570,665
109,788
388,707
19,134
1,088,294
1,039,800
(48,494)
549,980
122,722
2,036
3,307
-
678,045
590,900
(87,145)
1,094,797
534,715
58,230
417,899
52,952
2,158,593
3,248,970
1,090,377
850,000
-
-
-
-
850,000
850,000
-
149,507
203,936
784,056
790,840
51,975
1,980,314
1,970,805
(9,509)
714,050
164,250
174,781
641,853
32,321
1,727,255
2,296,774
569,519
$20,936,705
$8,680,934
$11,278,659
$23,035,943
$3,049,274
$66,981,515
$68,306,464
$1,324,949
CENTRAL CONTRA COSTA SANITARY DISTRICT
RUNNING EXPENSE
SCHEDULE OF SUPPLEMENTAL NET POSITION ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2013
Prior Year Balance
2012 -2013 Revenue
2012 - 2013 Expense
Add Back Depreciation Expense
Net Position Attributed to General Operations
Net Position Attributed to All Other
Running Expense Net Position
44
$70,847,815
(88,577,781)
21,596,266
$8,706,410
3,866,300
12,572,710
593,360,300
$605,933,010
(THIS PAGE INTENTIONALLY LEFT BLANK)
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Central Contra Costa Sanitary District
Statistical Section
Table of Contents
Financial Trends
These schedules contain trend information to help the reader understand how the
District's financial performance has changed overtime.
Changes in Net Position and Statement of Net Position -
Last Ten Fiscal Years ...................................................... ............................... S -1
Revenue by Type - Last Ten Fiscal Years ......................... ............................... S -2
Operating Expenses by Type - Last Ten Fiscal Years ...... ............................... S -3
Revenue Capacity
These schedules contain information to help the reader assess the District's most
significant revenue sources.
Major Revenue Base and Rates - Historical and Current Fees -
Last Ten Fiscal Years ...................................................... ............................... S -4
Sewer Service Charge - List of Ten Largest Customers -
LastTen Fiscal Years ...................................................... ............................... S -5
Assessed and Estimated Actual Valuation of Taxable Property -
LastTen Fiscal Years ...................................................... ............................... S -6
Property Tax and Sewer Service Charge Fees Levied and Collected -
Last Ten Fiscal Years ...................................................... ............................... S -6
Debt Capacity
This schedule contains information to help the reader assess the affordability of the
District's current levels of outstanding debt and the District's ability to issue additional
debt in the future.
Summary of Debt Service - Type, Debt Service Coverage, Debt Ratio -
Last Ten Fiscal Years ...................................................... ............................... S -7
Demographic and Economic Information
This schedule offers demographic and economic indicators to help the reader
understand the environment within which the District's financial activities take place.
Demographic and Economic Data - Population Served -
Last Ten Calendar Years ................................................ ............................... S -8
List of Ten Largest Employers in Contra Costa County -
Last Year and Seven Years Ago ..................................... ............................... S -8
Demographic and Economic Statistics - Contra Costa County -
LastTen Fiscal Years ...................................................... ............................... S -9
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the District's financial report relates to the services the District
provides and the activities it performs.
Full -time Equivalent Employees by Department - Last Ten Fiscal Years........ S -10
Number of Retirees and Surviving Spouses - Last Ten Fiscal Years .............. S -10
Capital Asset and Operating Statistics - Last Ten Calendar or Fiscal Years.. S -11
Miscellaneous Statistics ................................................... ............................... S -11
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year. The District implemented GASB Statement 34 in the 2002 -2003 fiscal year;
schedules presented include information beginning in that year.
Central Contra Costa Sanitary District
Changes in Net Position and Statement of Net Position
Last Ten Fiscal Years
Changes In Net Position
2003 -2004
20042005
2005 -2006
2006 -2007
2007 -2008
2008 -2009
2009 -2010
2010 -2011
2011 -2012
2012 -2013
Operating Revenues:
Sewer Service Charges (SSC)
33,935,899
32,282,806
37,781,774
35,057,668
40,207,157
43,087,454
48,692,520
49,095,870
49,123,848
56,770,984
City of Concord
6,609,602
6,603,000
7,383,011
9,043,215
8,206,860
8,755,857
8,664,668
9,224,952
10,647,389
10,483,421
Other Service Charges
648,617
672,887
755,827
793,395
869,589
872,978
824,022
913,017
915,485
1,076,401
Miscellaneous Charges
560,454
612,851
517,741
863,843
595,980
667,855
650,876
662,721
929,917
751,880
Total Operating Revenue
41,754,572
40,171,544
46,438,353
45,758,121
49,879,586
53,384,144
58,832,086
59,896,560
61,616,639
69,082,686
Total Non - Operating
13,053,602
9,129,051
8,766,599
16,343,091
15,842,624
13,884,063
12,065,323
11,198,327
12,258,202
Operating Expenses:
Salaries & Benefits
28,095,636
27,989,401
29,875,340
34,678,665
37,312,472
39,440,034
39,986,763
41,705,131
45,562,430
49,811,218
Chemicals, Utilities & Supplies
5,808,070
6,801,750
7,646,866
8,759,490
8,952,840
9,368,755
7,973,992
7,609,127
8,121,809
7,401,103
Professional & Outside Services
2,282,408
2,350,387
2,850,825
2,298,712
2,613,658
2,832,001
2,129,552
2,425,615
4,099,876
2,836,638
Hauling, Disposal, Repairs & Maintenance
3,871,749
3,716,176
3,826,165
4,105,082
3,863,555
3,938,129
3,808,635
3,916,789
4,077,741
4,239,421
Self- Insurance (net of transfers)
464,702
1,189,693
629,513
(180,716)
(215,004)
90,876
(688,859)
119,051
(65,688)
159,961
Depreciation
15,186,594
16,041,555
16,354,488
17,714,714
18,615,747
19,417,941
20,969,429
20,580,061
21,190,059
21,596,266
All Other
1,267,809
1,437,272
1,330,946
2,144,082
2,378,941
2,305,459
2,658,662
2,459,966
2,489,019
2,693,135
Total Operating Expenses
56,976,968
59,526,234
62,514,143
69,520,029
73,522,209
77,393,195
76,838,174
78,815,740
85,475,246
88,737,742
Operating Loss
(15,222,396)
(19,354,690)
(16,075,790)
(23,761,908)
(23,642,623)
(24,009,051)
(18,006,088)
(18,919,180)
(23,858,607)
(19.655.056)
Non - Operating Revenues (Expenses):
Property Taxes'
8,919,327
4,010,380
4,836,301
11,762,731
12,254,168
12,539,375
12,260,123
12,213,624
12,047,169
13,010,477
Connection & Other Fees
2,936,298
4,265,620
2,062,216
1,615,308
1,335,160
1,093,756
776,348
895,825
903,810
1,169,809
Interest Income
831,215
1,519,192
2,465,985
3,257,773
2,527,621
1,033,095
570,024
673,990
294,938
405,474
Interest Expense
(1,101,115)
(1,775,857)
(1,694,304)
(1,609,104)
(1,518,142)
(1,421,686)
(1,553,467)
(2,061,903)
(1,919,375)
(1,802,084)
All Other'
1,467,877
1,109,716
1,096,401
1,316,383
1,243,817
639,523
12,295
(523,209)
931,660
951,100
Total Non - Operating
13,053,602
9,129,051
8,766,599
16,343,091
15,842,624
13,884,063
12,065,323
11,198,327
12,258,202
13,734,776
Income Before Contributions and Transfers
(2,168,794)
(10,225,639)
(7,309,191)
(7,418,817)
(7,799,999)
(10,124,988)
(5,940,765)
(7,720,853)
(11,600,405)
(5,920,280)
Customer Contributions"
10,187,725
14,716,585
9,862,620
15,945,915
14,970,637
13,938,421
6,793,040
5,018,092
8,888,663
8,001,147
Contributed Sewer Lines
4,410,808
5,530,848
3,044,945
3,521,704
1,444,420
1,231,022
1,840,259
533,616
792,011
939,628
Capital Contributions - Connection Fees
6,585,984
10,728,717
10,496,898
8,917,658
9,259,160
5,025,493
7,078,635
3,515,804
5,724,833
6,091,529
CHANGE IN NET POSITION
19,015,723
20,750,511
16,095,272
20,966,460
17,874,218
10,069,948
9,771,169
1,346,659
3,805,102
9,112,024
Total Net Assets - Beginning
506,907,911
525 ,923,634
546,674,145
562,769,417
583,735,877
601,610,095
611,680,043
621,451,212
622,797,871
626,602,973
Total Net Assets - Ending
525,923,634
546,674,145
562,769,417
583,735,877
601,610,095
611,680,043
621,451,212
622,797,871
626,602,973
635,714,997
Statement of Net Position
2003 -2004
2004 -2005
2005 -2006
2006 -2007
2007 -2008
2008 -2009
2009 -2010
2010 -2011
2011 -2012
2012 -2013
Investments in Capital Assets, Net of Related Debt
453,251,761
469,375,715
486,098,303
513,580,658
531,119,639
552,165,498
531,324,187
541,613,208
549,462,506
559,523,642
Restricted for Debt Service
3,035,944
3,118,704
3,647,257
3,216,163
3,185,416
3,163,956
4,565,970
4,612,103
4,663,601
4,730,837
Unrestricted
69,635,929
74,179,726
73,023,857
66,939,056
67,305,040
56,350,589
85,561,055
76,572,560
72,476,866
71,460,518
Total Net Position
525,923,634
546,674,145
562,769,417
583,735,877
601,610,095
611,680,043
621,451,212
622,797,871
626,602,973
635,714,997
Includes Prop 1A ban receivable revenue and offset of $985,916. The revenue is offset by the provision for losses categorized in other.
•• Classirrcation reclassed 2010 -11, prior years rodassed for consistency. Previously included in Non - Operating. Includes capital cost contributions from the City of Concord and customer conbibutions (SSC)
The District implemented GASS 34 in the 2002 -2003 fiscal year, one year earlier than required.
Source: Central Contra Costa Sanitary District Audited Financial Statements
S -1
0
0
G
$120.000,000
$100.000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
Central Contra Costa Sanitary District
Revenue By Type
Last Ten Fiscal Years
2003 -2004 2004 -2005 2005 -2006 2006 -2007 2007 -2008 2008 -2009 2009 -2010 2010 -2011
Fiscal Year
00perating Revenue allon- Operating Revenue
Oneratina Revenue
2011 -2012 2012 -2013
Fiscal
Year
Sewer Service
Charges*
City of
Concord
Other Service
Charges
Miscellaneous
Charges
Total
Operating
2003 -2004
$33,935,899
$6,609,602
$648,617
$560,454
$41,754,572
2004 -2005
32,282,806
6,603,000
672,887
612,851
40,171,544
2005 -2006
37,781,774
7,383,011
755,827
517,741
46,438,353
2006 -2007
35,057,668
9,043,215
793,395
863,843
45,758,121
2007 -2008
40,207,157
8,206,860
869,589
595,980
49,879,586
2008 -2009
43,087,454
8,755,857
872,978
667,855
53,384,144
2009 -2010
48,692,520
8,664,668
824,022
650,876
58,832,086
2010 -2011
49,095,870
9,224,952
913,017
662,721
59,896,560
2011 -2012
49,123,848
10,647,389
915,485
929,917
61,616,639
2012 -2013
56,770,984
10,483,421
1,076,401
751,880
69,082,686
Nan- Oneratino Revenue
Fiscal
Year
Property
Taxes *1
Customer
Contributions *2
Connections
& Other Fees *3
Interest
All
Other
Total Non - Operating
& Contributions
2003 -2004
$8,919,327
$14,598,533
$9,522,282
$831,215
$1,467,877
$35,339,234
2004 -2005
4,010,380
20,247,433
14,994,337
1,519,192
1,109,716
41,881,058
2005 -2006
4,836,301
12,907,565
12,559,114
2,465,985
1,096,401
33,865,366
2006 -2007
11,762,731
19,467,619
10,532,966
3,257,773
1,316,383
46,337,472
2007 -2008
12,254,168
16,415,057
10,594,320
2,527,621
1,243,817
43,034,983
2008 -2009
12,539,375
15,169,443
6,119,249
1,033,095
639,523
35,500,685
2009 -2010
12,260,123
8,633,299
7,854,983
570,024
998,211
30,316,640
2010 -2011
12,213,624
5,551,708
4,411,629
673,990
-
22,850,951
2011 -2012
12,047,169
9,680,674
6,628,643
294,938
931,660
29,583,084
2012 -2013
13,010,477
8,940,775
7,261,338
405,474
951,100
30,569,164
' Sewer Service Charge (SSC) represents the Running Expense Fund portion of SSC County collections along with District direct billings and counter collections.
'1 2009 -2010 property taxes includes Prop 1A loan receivable revenue of $985,916.
'2 Customer Contributions include the portion of SSC that is allocated to Sewer Construction Fund, City of Concord reimbursement of capital costs, and developer
contributed sewer lines beginning in 2000 -2001, due to changes in GASB 33 reporting requirements.
'3 Includes connection fees, non - operating permit, inspection, and other fees.
Source: Central Contra Costa Sanitary District Audited Financial Statements S -2
Central Contra Costa Sanitary District
Operating Expenses by Type
Last Ten Fiscal Years
$90,000,000 -
$80,000,000
$70,000,000
$60,000,000 -
N
$50,000,000
p° $40,000,000
$30,000,000
$20,000,000 ,
$10,000,000
$- t fi r ,
2003 -2004 2004 -2005 2005 -2008 2006-2007 2007 -2008 2008 -2009 2009 -2010 2010 -2011 2011 -2012 2012 -2013
Fiscal Year
13Salaries and Benefits 0Chemicals, Utilities & Supplies ❑Professional & Outside Services ❑Hauling, Disposal, Repairs & Maintenance []Self- Insurance ❑Depreciation ❑AII Other
OPERATING EXPENSES
Fiscal
Year
Salaries
and Benefits
Chemicals, Utilities
& Supplies
Professional &
Outside Services
Hauling, Disposal,
Repairs & Maintenance
Self - Insurance
Depreciation
All
Other
Total Operating
Expenses
2003 -2004
$28,095,636
$5,808,070
$2,282,408
$3,871,749
$689,702
$15,186,594
$1,042,809
$56,976,968
2004 -2005
27,989,401
6,801,750
2,350,387
3,716,176
1,189,693
16,041,555
1,437,272
59,526,234
2005 -2006
29,875,340
7,646,866
2,850,825
3,826,165
879,513
16,354,488
1,080,946
62,514,143
2006 -2007
34,678,665
8,759,490
2,298,712
4,105,082
519,284
17,714,714
1,444,082
69,520,029
2007 -2008
37,312,472
8,952,840
2,613,658
3,863,555
916,639
18,615,747
1,247,298
73,522,209
2008 -2009
39,440,034
9,368,755
2,832,001
3,938,129
958,906
19,417,941
1,437,429
77,393,195
2009 -2010
39,986,763
7,973,992
2,129,552
3,808,635
746,612
20,969,429
1,223,191
76,838,174
2010 -2011
41,705,131
7,609,127
2,425,615
3,916,789
1,003,115
20,580,061
1,575,902
78,815,740
2011 -2012
45,562,430
8,121,809
4,099,876
4,077,741
810,849
21,190,059
1,612,482
85,475,246
2012 -2013
49,811,218
7,401,103
2,836,638
4,239,421
2,380,466
21,596,266
472,630
88,737,742
' 2009 -2010 non - operating expenses includes Prop 1A loan receivable revenue offset of $985,916.
Source: Central Contra Costa Sanitary District Audited Financial Statements
S -3
Non - Operating
Expenses*
$1,101,115
1,775,857
1,694,304
1,609,104
1,518,142
1,421,686
2,539,383
2,585,112
1,919,375
1,802,084
$400
$350
$300
N $250
m $200
c
a $150
$100
$50
$0
Fiscal Year
2003 -2004
2004 -2005
2005 -2006
2006 -2007
2007 -2008
2008 -2009
2009 -2010
2010 -2011
2011 -2012
2012 -2013
Central Contra Costa Sanitary District
Major Revenue Base and Rates
Historical and Current Fees
Last Ten Fiscal Years
2006 -2007 T 2007 -2008
t70perations
H H
2008 -2009 T 2009 -2010 2010 -2011 2011 -2012
2012 -2013
Annual Sewer Service Charge (SSC) *1
Facility
Capacity Fee •2
Pump
Zone Fee •3
Operations Capital Total
$218
$54
$272
$3,983
$988
204
76
280
3,983
988
234
46
280
4,150
1,331
213
76
289
4,263
1,404
242
58
300
4,524
1,466
260
51
311
4,923
1,586
292
19
311
5,298
1,651
300
11
311
5,451
1,641
302
39
341
5,465
1,606
344
27
371
5,797
1,625
'1 All residential accounts pay a flat annual sewer service charge shown above per household. The charge for commercial users consists of an annual
rate based on a measured volume of water usage per 100 cubic feet (HCF).
'2 New users who are connected to the Wastewater System are charged Capital Improvement Fees called Facility Capacity Fees. Fee is per connection.
'3 New customers in areas where wastewater pumping stations are needed to reach the District's gravity fed sewers are charged a Pump Zone Fee.
Fee is per connection.
Source: Central Contra Costa Sanitary District Environmental Services Division
S -4
Central Contra Costa Sanitary District
Sewer Service Charge
List Of Ten Largest Customers
Ten Fiscal Years
Total $ 10,509,209 19.69% $ 10,201,900 17.34% $ 10,653,225 17.79% $ 12,172,005 19.75% $ 12,384,282 17.93%
Contract with the City of Concord to treat and dispose of wastewater for Concord and Clayton.
The District implemented GASB 34 in the 2002 -2003 fiscal year, one year earlier than required.
Source: Central Contra Costa Sanitary District Environmental Services Division
S -5
2003 -2004
2004 -2005
2005 -2006
2006 -2007
2007 -2008
Percentage of
Percentage of
Percentage of
Percentage of
Percentage c
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Customer
Revenue
Rank
Revenue
Revenue
Rank
Revenue
Revenue
Rank
Revenue
Revenue
Rank
Revenue
Revenue
Rank
Revenue
City of Concord'
$ 6,609,602
1
15.83%
$ 6,603,000
1
16.44%
$ 7,383,011
1
15.90%
$ 9,043,215
1
19.76%
$ 8,206,860
1
16.45%
Chevron Offices & Office Park
-
-
-
-
-
-
$ 340,389
2
0.68%
Contra Costa County General Services
250,442
3
0.60%
294,670
2
0.73%
295,173
2
0.64%
322,351
2
0.70%
316,854
3
0.64%
First Walnut Creek Mutual
258,400
2
0.62%
266,000
3
0.66%
295,120
3
0.64%
-
-
-
-
Park Regency Apartments
242,624
4
0.58%
249,760
4
0.62%
249,760
4
0.54%
257,788
3
0.56%
267,600
4
0.54%
Second Walnut Creek Mutual Apts
204,000
5
0.49%
210,000
5
0.52%
210,000
5
0.45%
-
-
120,000
8
0.24%
Sun Valley Mall
145,169
6
0.35%
158,077
6
0.39%
169,916
6
0.37%
176,293
4
0.39%
183,380
6
0.37%
Archstone/Treat Commons Apartments
138,720
7
0.33%
142,800
7
0.36%
142,800
7
0.31%
101,150
9 -10
0.22%
-
-
St. Marys College Contract
97,670
10
0.23%
-
-
117,119
10
0.25%
127,355
6
0.28%
136,016
7
0.27%
Willows Shopping Center
111,822
9
0.27%
120,459
9
0.30%
-
-
128,303
5
0.28%
-
-
Bay Landing Apartments
-
-
-
-
104,040
8
0.23%
108,000
10
0.22%
Muirland @ Windemere Apartments
-
-
-
-
-
-
101,150
9 -10
0.22%
-
-
Reflections San Ramon Apartments
134,912
8
0.32%
139,062
8
0.35%
139,062
8
0.30%
-
-
-
-
Kaiser Foundation Hospital
-
-
100,976
10
0.25%
126,904
9
0.27%
-
-
118,809
9
0.24%
John Muir Health
-
-
-
-
-
-
121,613
7
0.27%
223,775
5
0.45%
Total
$ 8,193,361
19.62%
$ 8,284,804
20.62%
$ 9,128,865
19.66%
$ 10,483,258
22.91%
$ 10,021,683
20.09%
2008 -2009
2009 -2010
2010 -2011
2011 -2012
2012 -2013
Percentage of
Percentage of
Percentage of
Percentage of
Percentage o
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Customer
Revenue
Rank
Revenue
Revenue
Rank
Revenue
Revenue
Rank
Revenue
Revenue
Rank
Revenue
Revenue
Rank
Revenue
City of Concord'
$ 8,755,857
1
16.40%
$ 8,664,668
1
14.73%
$ 9,224,952
1
15.40%
$10,647,389
1
17.28%
$10,483,421
1
15.180/
Park Regency Apartments
277,412
4
0.52%
277,412
3
0.47%
277,412
3
0.46%
304,172
2
0.49%
330,932
2
0.480/
Contra Costa County General Services
320,866
3
0.60%
305,880
2
0.52%
301,430
2
0.50%
292,384
3
0.47%
321,803
3
0.470/
Willows Shopping Center
-
-
-
-
-
-
-
-
197,567
4
0.29°
John Muir Health
125,292
7
0.23%
-
-
-
-
-
-
176,381
5
0.26°
Sun Valley Mall
190,734
5
0.36%
197,566
4
0.34%
193,957
4
0.32%
203,037
4
0.33%
174,038
6
0.250/
St. Mary's College Contract
126,222
6
0.24%
-
-
98,521
10
0.16%
119,407
7
0.19%
158,480
7
0.230
Branch Creek Vista Apartments
124,400
8
0.23%
124,400
7
0.21%
124,400
5
0.21%
136,400
5
0.22%
148,400
8
0.210/
Bay Landing Apartments
111,960
10
0.21%
111,960
8
0.19%
111,960
6
0.19%
122,760
6
0.20%
133,560
9
0.19'
Archstone Apartments
-
-
108,850
9 -10
0.19%
108,850
7 -8
0.18%
119,350
8 -9
0.19%
129,850
10
0.190
Muirland @ Windemere Apartments
-
108,850
9 -10
0.19%
108,850
7 -8
0.18%
119,350
8 -9
0.19%
129,850
10
0.190Y
Creekside Oaks Apartments
-
-
-
-
-
-
107,756
10
0.17%
-
-
Chevron Offices & Office Park
363,739
2
0.68%
165,561
5
0.28%
-
-
-
-
-
Kaiser Foundation Hospital
112,727
9
0.21%
136,753
6
0.23%
102,893
9
0.17%
Total $ 10,509,209 19.69% $ 10,201,900 17.34% $ 10,653,225 17.79% $ 12,172,005 19.75% $ 12,384,282 17.93%
Contract with the City of Concord to treat and dispose of wastewater for Concord and Clayton.
The District implemented GASB 34 in the 2002 -2003 fiscal year, one year earlier than required.
Source: Central Contra Costa Sanitary District Environmental Services Division
S -5
Central Contra Costa Sanitary District
Assessed and Estimated Actual Valuation of Taxable Property
Last Ten Fiscal Years
Fiscal Year
Local Secured
Unsecured
Total
% Change
2003 -2004
$46,821,339,668
$1,446,650,234
$48,267,989,902
8.2%
2004 -2005
50,577,841,843
1,416,240,351
51,994,082,194
7.7%
2005 -2006
55,586,311,888
1,463,536,750
57,049,848,638
9.7%
2006 -2007
61,409,513,246
1,533,076,135
62,942,589,381
10.3%
2007 -2008
66,416,736,187
1,583,187,663
67,999,923,850
8.0%
2008 -2009
68,888,723,534
1,738,606,038
70,627,329,572
3.9%
2009 -2010
68,640,287,188
1,723,710,536
70,363,997,724
-0.4%
2010 -2011
67,889,370,916
1,647,537,385
69,536,908,301
-1.2%
2011 -2012
67,486,938,247
1,591,574,852
69,078,513,099
-0.7%
2012 -2013
67,538,246,870
1,604,518,295
69,142,765,165
0.1%
Property Tax and Sewer Service Charge Fees Levied and Collected
Last Ten Fiscal Years
General County taxes collected are the same as the amount levied since the County participates in California's alternative method of
apportionment called the Teeter Plan. The Teeter Plan as provided in Section 4701 et seq. of the State Revenue and Taxation Code,
establishes a mechanism for the County to advance the full amount of property tax and other levies to taxing agencies based on the
tax levy, rather than on the basis of actual tax collections. Although this system is a simpler method to administer, the County assu-
mes the risk of delinquencies. The County in return retains the penalties and accrued interest thereon.
Actual amount received from the County. Net of Prop 1A loan to state of $985,916.
Source: Contra Costa County Auditor - Controller's Office
S -6
Property Tax"
Sewer Service Charges`
Fiscal Year
Levied & Collected
% Change
Levied & Collected
% Change
2003 -2004
$9,013,484
6.5%
$41,499,031
10.7%
2004 -2005
4,027,427
-55.3%
43,327,756
4.4%
2005 -2006
4,856,758
20.6%
44,261,318
2.2%
2006 -2007
11,860,961
144.2%
46,694,671
5.5%
2007 -2008
12,092,637
2.0%
48,883,932
4.7%
2008 -2009
12,492,502
3.3%
50,743,258
3.8%
2009 -2010
11,253,233 **
-9.9%
50,896,210
0.3%
2010 -2011
12,171,725
8.2%
50,196,629
-1.4%
2011 -2012
12,032,525
-1.1%
54,586,208
8.7%
2012 -2013
13,185,988
9.6%
60,068,807
10.0%
General County taxes collected are the same as the amount levied since the County participates in California's alternative method of
apportionment called the Teeter Plan. The Teeter Plan as provided in Section 4701 et seq. of the State Revenue and Taxation Code,
establishes a mechanism for the County to advance the full amount of property tax and other levies to taxing agencies based on the
tax levy, rather than on the basis of actual tax collections. Although this system is a simpler method to administer, the County assu-
mes the risk of delinquencies. The County in return retains the penalties and accrued interest thereon.
Actual amount received from the County. Net of Prop 1A loan to state of $985,916.
Source: Contra Costa County Auditor - Controller's Office
S -6
$6,000.000
$5.000,000
$4.000,000
na
10 $3,000,000
0
a
$2,000,000
$1,000.000
$0
Central Contra Costa Sanitary District
Summary Of Debt Service
Last Ten Fiscal Years
Debt Service Paid Each Fiscal Year
Outstanding Debt Each Fiscal Year
In 2009, the District issued Bonds which retired the 2002 and 1998 bond
$60,000,000 debt and gained $30 million in net proceeds dedicated to fund Capital Improvements.
$45.000.000
$30.000,000 - - - -
$75.000,000 - - - -
$0 ,
Note: Details regarding the District's outstanding debt can be found in the notes to the financial statements.
•1 Net Revenue = Operating Revenue less Total Operating Expenses less Depreciation plus Non - Operating Revenue & Contributions
'2 This ratio must be above 1.00 to meet the Debt Rate Covenant (Net Revenuerrotal Debt Service).
'3 Adjusted Net Revenue = Net Revenue less Capital Improvement Fees (Connection Fees) and City of Concord Capital Charges
'4 This ratio must be above 1.25 to meet the Debt Rate Covenant (Adjusted Net Revenuerrotal Debt Service).
Source Central Contra Costa Sanitary District Audited Financial Statements and Internal Accounting Records S -7
Debt Restrictions:
Revenue Pledge & Covenant: The District pledges
Property Tax Revenue along with its ability to raise Sewer
Service Charge (SSC) rates. Debt Coverage requirements
are discussed in the footnotes to the left.
Summary B y Type Of Debt
Revenue Bonds
2009 2002
& 1988
• •
Total Debt
Service Annual
Expense
• =
•
Fiscal
Total
Total
Total
Revenue
• . .
Year
Principal
Interest
Debt Service
Principal
Interest
Debt Service
Principal
Interest
Debt Service
Bonds
•.
2,172,519
•
38,112,519
2003 -2004
1,375,000
1,583,739
2,958,739
127,323
59,796
187,119
1,502,323
1,643,535
3,145,858
35,940,000
2004 -2005
1,995,000
1,719,372
3,714,372
130,634
56,485
187,119
2,125,634
1,775,857
3,901,491
33,945,000
2,041,885
35,986,885
2005 -2006
2,060,000
1,641,215
3,701,215
134,030
53,089
187,119
2,194,030
1,694,304
3,888,334
31,885,000
1,907,855
33,792,855
2006 -2007
2,135,000
1,559,500
3,694,500
137,515
49,604
187,119
2,272,515
1,609,104
3,881,619
29,750,000
1,770,340
31,520,340
2007 -2008
2,210,000
1,472,113
3,682,113
141,090
46,029
187,119
2,351,090
1,518,142
3,869,232
27,540,000
1,629,250
29,169,250
2008 -2009
2,300,000
1,379,326
3,679,326
144,759
42,360
187,119
2,444,759
1,421,686
3,866,445
25,240,000
1,484,491
26,724,491
2009 -2010
2,390,000
1,514,871
3,904,871
148,523
38,596
187,119
2,538,523
1,553,467
4,091,990
54,125,000
1,335,968
55,460,968
2010 -2011
3,460,000
2,027,168
5,487,168
152,385
34,734
187,119
3,612,385
2,061,903
5,674,288
50,665,000
1,183,583
51,848,583
2011-20121
3,465,000
1,888,601
5,353,601
156,346
30,773
187,119
3,621,346
1,919,375
5,540,721
47,200,000
1,027,237
48,227,237
12012-20131
3,605,000
1 1,775,376
1 5,380,376
1 160,411
26,708
187,119
1 3,765,411
1,802,084
1 5,567,495
1 43,595,000
1 866,8271
44,461,827
Debt Service Covers
3e Summary
Debt Ratios
Total
Total Operating
Non- Operating
Debt Service
Capital
Debt Service
Annual Debt
Annual Debt
Total Debt
Fiscal
Debt
Operating
Expenses less
Revenue &
Net
Coverage
Improvement
Adjusted Net
Coverage
Service to
Sery ice per
Outstanding
Year
Service
Revenue
Depreciation
Contributions
Revenue '1
(Net Revenue) *2
Fees /Concord
Revenue•3
(Adj. Net Revenue)•4
Operating Ex .
Customer
Per Customer
2003 -2004
3,145,858
41,754,572
41,790,374
35,339,234
35,303,432
11.22
8,370,344
26,933,088
8.56
7.53%
20.21
244.83
2004 -2005
3,901,491
40,171,544
43,484,679
41,881,058
38,567,923
9.89
13,351,448
25,216,475
6.46
8.97%
24.65
227.41
2005 -2006
3,888,334
46,438,353
46,159,655
33,865,366
34,144,064
8.78
12,931,577
21,212,487
5.46
8.42%
24.08
209.29
2006 -2007
3,881,619
45,758,121
51,805,315
46,337,472
40,290,278
10.38
12,353,170
27,937,108
7.20
7.49%
23.58
191.51
2007 -2008
3,869,232
49,879,586
54,906,462
43,034,983
38,008,107
9.82
14,595,433
23,412,674
6.05
7.05%
23.29
175.56
2008 -2009
3,866,445
53,384,144
57,975,254
35,500,685
30,909,575
7.99
10,511,351
20,398,224
5.28
6.67%
23.33
161.26
2009 -2010
4,091,990
58,832,086
55,868,745
30,316,640
33,279,981
8.13
10,707,584
22,572,397
5.52
7.32%
24.47
331.68
2010 -2011
5,674,288
59,896,560
58,235,679
22,850,951
24,511,832
4.32
6,731,994
17,779,838
3.13
9.74%
34.67
316.81
2011 -2012
5,540,721
61,616,639
64,285,187
29,583,084
26,914,536
4.86
8,266,521
18,648,015
3.37
8.62%
34.06
296.47
2012 -2013
5,567,495
69,082,686
1 67,141,476
1 30,569,164 1
32,510,374
1 5.84
9,708,300
1 22,802,074
4.10
8.29%
33.78
269.73
Note: Details regarding the District's outstanding debt can be found in the notes to the financial statements.
•1 Net Revenue = Operating Revenue less Total Operating Expenses less Depreciation plus Non - Operating Revenue & Contributions
'2 This ratio must be above 1.00 to meet the Debt Rate Covenant (Net Revenuerrotal Debt Service).
'3 Adjusted Net Revenue = Net Revenue less Capital Improvement Fees (Connection Fees) and City of Concord Capital Charges
'4 This ratio must be above 1.25 to meet the Debt Rate Covenant (Adjusted Net Revenuerrotal Debt Service).
Source Central Contra Costa Sanitary District Audited Financial Statements and Internal Accounting Records S -7
Debt Restrictions:
Revenue Pledge & Covenant: The District pledges
Property Tax Revenue along with its ability to raise Sewer
Service Charge (SSC) rates. Debt Coverage requirements
are discussed in the footnotes to the left.
As Of January 1
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Central Contra Costa Sanitary District
Demographic and Economic Data
Population Served
Last Ten Calendar Years
Inside District
Boundaries
303,980
308,428
309,600
314,400
317,340
322,200
326,600
321,800
326,900
332,600
Source: Central Contra Costa Sanitary District Environmental Services Division
Concord/
Clavton
135,845
135,780
135,400
134,300
134,560
134,000
135,400
133,600
134,200
134,900
Total
Served
439,825
444,208
445,000
448,700
451,900
456,200
462,000
455,400
461,100
467,500
List of Ten Largest Employers in Contra Costa County
Last Year and Seven Years Ago
Employers
John Muir Physician Network
Kaiser Foundation Hospitals
Chevron Corporation
Target Corporation
Walmart Stores, Inc
Contra Costa Newspapers, Inc.
Doctors Medical Center
Shell /Martinez Refinery
Bio -Rad Laboratories
Texaco Inc
USS Posco Industries
John Muir Medical Center
John Muir /Mt. Diablo Medical Center
Bank of the West
Aetna Health Services
All Others
2005"
Estimated % of Total County
Employees Rank Employment
2,300 3 0.5%
5,000 1 1.0%
3,400 2 0.7%
900
8
0.2%
1,000
6
0.2%
975
7
0.2%
1,900
4
0.4%
1,500
5
0.3%
800
9
0.2%
600
10
0.1%
465,825
96.2%
Change
0.3%
1.0%
0.2%
0.8%
0.7%
1.0%
1.3%
-1.4%
1.3%
1.4%
2012"
Estimated
% of Total County
Employees
Rank
Employment
2,200
1
0.5%
2,000
2
0.4%
1,329
3
0.3%
1,262
4
0.3%
1,150
5
0.2%
1,140
6
0.2%
937
7
0.2%
900
8
0.2%
900
9
0.2%
800
10
0.2%
465,281
484,200 100.0% 477,899
Source: ' County of Contra Costa, California, Comprehensive Annual Financial Report for 6/30/12, Statistical Section, excludes government employers.
Data for 2002, 2003, and 2004 are unavailable. S -8
97.3%
100.0%
Fiscal Year
Ended
June 30
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Demographic and Economic Statistics
Contra Costa County
Last Ten Fiscal Years
Population*
987,531
992,424
999,013
1,000,834
1,009,152
1,023,344
1,037,890
1,052,605
1,066,096
N/A
N/A - Information not available at this time.
Personal
Income*
45,775,727,000
48,923,798,000
51,534,263,000
55,318,933,000
58,043,926,000
59,914,142,000
55,781,843,000
57,700,398,000
60,778,675,000
N/A
Per Capita
Personal
Income*
46,354
49,297
51,585
55,273
57,518
58,547
53,745
54,817
57,011
N/A
Average Annual
Unemployment
Rate **
6.1%
5.4%
5.1%
4.5%
4.7%
6.3%
10.8%
11.3%
11.0%
9.0%
U.S. Department of Commerce, Bureau of Economic Analysis, 2009 & 2010 Per Capita Personal Income updated. Estimates as of April 2012.
State of California, Employment Development Department (EDD), annual calendar figure.
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Department
Administration
Engineering
Operations
Collection Systems
Plant
Pumping Station
Operations Total
District Total
District Total
Central Contra Costa Sanitary District
Full -time Equivalent Employees by Department
Last Ten Fiscal Years
Number of Retirees and Surviving Spouses as of June 30
Last Ten Fiscal Years
163 167 167 177 178 187 201
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215 237 244
Full -time Equivalent Employees as of June 30
2004
2005 2006 2007 2008
2009
2010
2011
2012
2013
42
43 42 42 45
45
45
44
39
39
71
76 73 75 76
80
76
75
71
75
45
46 49 50 50
52
47
44
47
56
82
81 88 83 77
82
78
74
71
76
9
9 9 10 11
10
10
8
7
8
136
136 146 143 138
144
135
126
125
140
255 261 260 259
256
254
269
245
235
249
Number of Retirees and Surviving Spouses as of June 30
Last Ten Fiscal Years
163 167 167 177 178 187 201
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215 237 244
Central Contra Costa Sanitary District
Capital Asset and Operating Statistics
Last Ten Calendar or Fiscal Years
Recycled Water
Recycled Water Produced per day
Calendar
1.4 mgd
1.5 mgd
1.5 mgd
Millions of Gallons per Day (mgd)
1.6 mgd
1.5 mgd
1.6 mgd
1.5 mgd
Treatment Plant
Year
2003
2004
2005
2006 2007 2008
2009
2010
2011
2012
Treatment Plant Permitted Capacity
Calendar
53.8
53.8
53.8
53.8 53.8 53.8
53.8
53.8
53.8
53.E
Average Dry Weather Flow (ADWF)
Calendar
40.0
40.6
41.4
41.6 38.6 36.6
32.5
38.9
34.3
33.22
Wastewater Treated per day
Calendar
42.9
44.7
48.0
50.4 41.2 41.0
37.0
40.6
41.9
39.E
12.3%
Tons per Year
12.3%
13.6%
14.5%
14.4%
15.0%
15.6%
15.4%
15.4°
Sludge to Furnace (Dry)'1
Fiscal
16,053
16,727
15,841
15,341 15,340 15,212
15,299
15,056
15,790
15,097
Ash to Reuse Site (Wet)'2
Fiscal
5,384
5,397
5,074
4,418 4,418 4,177
4,082
3,814
3,850
3,667
'1 In the multi - hearth furnace, the wet sludge is converted to dry ash. Water is added to the
dry ash as it is loaded into trucks (ratio of 60 percent ash to 40 percent water) to prevent the ash from blowing out of the truck during transport.
67
'2 Wet sludge, which at 19 to 23 percent solids, is pumped to the
multiple -hearth furnace for
incineration. The table above
shows the dry
tons per year of sludge to the furnace, excluding the 77 to 81 percent water in the wet sludge.
Collection Systems /Pumping Stations /Ouffall Sewers
Other Data
Pipeline Miles
Calendar
1,400
1,400
1,500
1,500 1,500 1,500
1,500
1,500
1,500
1,52
Number of pumping stations
Calendar
20
21
17
17 17 17
17
16
16
1
Recycled Water
Recycled Water Produced per day
Calendar
1.4 mgd
1.5 mgd
1.5 mgd
1.6 mgd
1.6 mgd
1.5 mgd
1.6 mgd
1.5 mgd
1.6 mgd
1.6 mg
Number of Recycled Water Customers
Calendar
21
23
24
30
30
31
30
33
35
3
Household Hazardous Waste (HHW) - Inception 1997/1998
Program Participation (Number of cars)
Fiscal
23,061
22,872
23,897
26,392
27,940
28,210
29,347
29,441
29,112
29,119
Percentage of Households in Service Area
Fiscal
12.3%
12.1%
12.3%
13.6%
14.5%
14.4%
15.0%
15.6%
15.4%
15.4°
Operating Cost per Car
Fiscal
$ 62
$ 58
$ 60
$ 64
$ 61
$ 76
$ 76 $
82
$ 87
$ 92
Pounds of HHW per Car
Fiscal
71
64
65
80
71
67
65
68
67
68
Miscellaneous Statistics
Governing Body: Elected 5- Member Board of Directors
Governmental Structure: Established in 1946 under the Sanitary District Act of 1923
Staff: 254 full -time equivalent employees
Authority: California Health and Safety Code Section 4700 et. Seq.
Services: Wastewater collection, treatment, and disposal
Type Of Treatment:
Service Area:
Total Population Served:
Sewer Service Charge:
Source: Central Contra Costa Sanitary District records.
Household Hazardous Waste Facility
Recycled Water
Discharge - Secondary; Reclamation - Tertiary
144 square miles
467,500
$371 annually per residential equivalent unit
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