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CAFR (Comprehensive Annual Financial Report) as of June 30, 2013CENTRAL CONTRA COSTA SANITARY DISTRICT Cent ra l Cont ra Costa S anitar y Di s t r i c t 5019 Imhoff Pl a ce, M ar t i n e z , CA 94553 Comprehensive Annual Financial Report For the Fiscal Year ended June 30, 2013 Ultraviolet Light 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: Letter of Transmittal ........................... .................................................................... i Board of Directors ................................................................................................ vii Mission Statement .............................................................................................. viii Organization Chart .......................................................... .....................................ix Map of Service Area ............................................................................................. x Certificate of Achievement .................................................................................... xi FINANCIAL SECTION: Independent Auditors’ Report ............................................................... ................ 1 Management’s Discussion and Analysis .............................................................. 3 Basic Financial Statements Statement of Net Position ......................... ............................................... 10 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 integral part of the basic financial statements .................................... 15-37 Supplementary Information Combining Schedule of Statement of Net Position .................................. 41 Combining Schedule of Statement 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 STATISTICAL SECTION (Unaudited): 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 Major Revenue Base and Rates -Historical and Current Fees -Last Ten Fiscal Years ..................................................................................... S-4 Sewer Service Charge -List of Ten Largest Customers -Last Ten 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 Seven Years Ago .................................................................... S-8 Demographic and Economic Statistics -Contra Costa County -Last Ten Fiscal Years ..................................................................................... S-9 Full-time Equivalent Employees by Department -Last Ten Fiscal Years ........ S-10 Number of Retirees and Surviving Spouses -Last Ten Fiscal Years .............. S-10 Capital Asset and Operating Statistics -Last Ten Calendar or Fiscal Years ... S-11 Miscellaneous Statistics .................................................................................. S-11 (THIS PAGE INTENTIONALLY LEFT BLANK) Cent ra l Cont ra Costa S anitar y Di s t r i c t Introductory Section Central Contra Costa Sanitary District Protecting public health and the environment 5019 Imhoff Place, Martinez, CA 94553-4392 ii 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 multifamily 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. iii  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 ¼ 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 the 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 iv 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. Major Initiatives The District’s vision is to be a high-performance organization that provides exceptional customer service and full regulatory compliance at responsible rates. Full regulatory compliance is provided through exceptional operation of our collection system and treatment facilities, as well as through continued investment in our infrastructure. Our current capital plan has an emphasis on renovation, particularly in the collection system, in order to improve service, and fix deteriorating pipes and pumping stations before they can contribute to a sewer system overflow. Both at the state and federal level, regulations addressing sewer system overflows and public notification have become v 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. vi  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 vii 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 Our Mission Our Vision Our Values To protect the public health and the environment by: • Collecting and treating wastewater • Recycling high quality water • Promoting pollution prevention Be a high performance organization that provides exceptional customer service and full regulatory compliance at responsible rates. We will achieve our goals by valuing: • Each other • Ethics and integrity • A healthy and safe environment • Community relationships • The meeting of commitments • All aspects of diversity Central Contra Costa Sanitary District 0021-10/08 viii x xi (THIS PAGE INTENTIONALLY LEFT BLANK) Cent ra l Cont ra Costa S anitar y Di s t r i c t Financial Section INDEPENDENT AUDITORS' 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 opinions 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 opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial positions of the business-type activities and each major fund of the District as of June 30, 2013, and the respective changes in the financial positions and cash flows, where applicable, thereof for the years then ended, in conformity with accounting principles generally accepted in the United States of America. Emphasis of Matters Management adopted the provisions of Governmental Accounting Standards Board Statement 63 -Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, which became effective during the year ended June 30, 2013 and required changes to statement titles and other nomenclature within the financial statements. 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 this information in accordance with generally accepted auditing standards 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 opinions on the financial statements that collectively comprise the District’s basic financial statements as a whole. The Introductory Section, Supplemental Information and Statistical Section, as listed in the Table of Contents are presented for purposes of additional analysis and are not required parts of the basic financial statements. The Supplemental 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 generally accepted auditing standards in the United States of America. In our opinion, the Supplemental Information is fairly stated in all material respects in relation to the basic financial statements as a whole. The Introductory and Supplemental Sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Pleasant Hill, California September 18, 2013 Central Contra Costa Sanitary District Protecting public health and the environment 5019 Imhoff Place, Martinez, CA 94553-4392 Cent ra l Cont ra Costa S anitar y Di s t r i c t Statistical Section 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 over time. 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 -Last Ten 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 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 -Last Ten 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 Changes in Net Position 2003-2004 2004-2005 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 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 loan receivable revenue and offset of $985,916. The revenue is offset by the provision for losses categorized in other. ** Classification reclassed 2010-11, prior years reclassed for consistency. Previously included in Non-Operating. Includes capital cost contributions from the City of Concord and customer contributions (SSC). The District implemented GASB 34 in the 2002-2003 fiscal year, one year earlier than required. Source: Central Contra Costa Sanitary District Audited Financial Statements Last Ten Fiscal Years S-1 Fiscal Sewer Service City of Other Service Miscellaneous Total Year Charges* Concord Charges Charges 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 Fiscal Property Customer Connections All Total Non-Operating Year Taxes *1 Contributions *2 & Other Fees *3 Interest Other & 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. 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 Operating Revenue Non-Operating Revenue *2 Customer Contributions include the portion of SSC that is allocated to Sewer Construction Fund, City of Concord reimbursement of capital costs, and developer $-$20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 Dollars Fiscal Year Central Contra Costa Sanitary District Revenue By Type Last Ten Fiscal Years Operating Revenue Non-Operating Revenue S-2 Fiscal Salaries Chemicals, Utilities Professional & Hauling, Disposal, Self-Insurance Depreciation All Total Operating Non-Operating Year and Benefits & Supplies Outside Services Repairs & Maintenance Other Expenses 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 $1,101,115 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 1,775,857 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 1,694,304 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 1,609,104 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 1,518,142 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 1,421,686 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 2,539,383 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 2,585,112 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 1,919,375 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 1,802,084 Informational -not graphed * 2009-2010 non-operating expenses includes Prop 1A loan receivable revenue offset of $985,916. Source: Central Contra Costa Sanitary District Audited Financial StatementsOPERATING EXPENSES $-$10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 Dollars Fiscal Year Central Contra Costa Sanitary District Operating Expenses by Type Last Ten Fiscal Years Salaries and Benefits Chemicals, Utilities & Supplies Professional & Outside Services Hauling, Disposal, Repairs & Maintenance Self-Insurance Depreciation All Other S-3 Facility Pump Fiscal Year Operations Capital Total Capacity Fee *2 Zone Fee *3 2003-2004 $218 $54 $272 $3,983 $988 2004-2005 204 76 280 3,983 988 2005-2006 234 46 280 4,150 1,331 2006-2007 213 76 289 4,263 1,404 2007-2008 242 58 300 4,524 1,466 2008-2009 260 51 311 4,923 1,586 2009-2010 292 19 311 5,298 1,651 2010-2011 300 11 311 5,451 1,641 2011-2012 302 39 341 5,465 1,606 2012-2013 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 Historical and Current Fees Last Ten Fiscal Years Annual Sewer Service Charge (SSC) *1 Central Contra Costa Sanitary District Major Revenue Base and Rates $0 $50 $100 $150 $200 $250 $300 $350 $400 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 Annual SSC Fiscal Year Operations Capital S-4 Percentage of Percentage of Percentage of Percentage of Percentage of 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. Mary's 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 1 0 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% Percentage of Percentage of Percentage of Percentage of Percentage of 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 15.18% 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 0.48% 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 0.47% 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 0.25% St. Mary's College Contract 126,222 6 0.24% --98,521 10 0.16% 119,407 7 0.19% 158,480 7 0.23% 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 0.21% 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 0.19% Muirland @Windemere Apartments --108,850 9-10 0.19% 108,850 7-8 0.18% 119,350 8-9 0.19% 129,850 10 0.19% 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 2011-2012 2007-2008 2012-2013 Central Contra Costa Sanitary District Sewer Service Charge List Of Ten Largest Customers Ten Fiscal Years 2003-2004 2004-2005 2005-2006 2006-2007 2008-2009 2009-2010 2010-2011 S-5 Fiscal Year Local Secured Unsecured Total 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* Sewer Service Charges* Fiscal Year Levied & Collected % Change Levied & Collected 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 assumes 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 % Change Last Ten Fiscal Years Central Contra Costa Sanitary District Assessed and Estimated Actual Valuation of Taxable Property Last Ten Fiscal Years Property Tax and Sewer Service Charge Fees Levied and Collected % Change S-6 Fiscal Total Total Total Revenue Water Rec. Total Debt Year Principal Interest Debt Service Principal Interest Debt Service Principal Interest Debt Service Bonds Loan Outstanding 2003-2004 1,375,000 1,583,739 2,958,739 127,323 59,796 187,119 1,502,323 1,643,535 3,145,858 35,940,000 2,172,519 38,112,519 2004-2005 1,995,000 1,719,372 3,714,372 130,634 56,485 187,119 2,125,634 1,775,857 3,901,491 33,945,000 2,041,885 35,986,885 2005-2006 2,060,000 1,641,215 3,701,215 134,030 53,089 187,119 2,194,030 1,694,304 3,888,334 31,885,000 1,907,855 33,792,855 2006-2007 2,135,000 1,559,500 3,694,500 137,515 49,604 187,119 2,272,515 1,609,104 3,881,619 29,750,000 1,770,340 31,520,340 2007-2008 2,210,000 1,472,113 3,682,113 141,090 46,029 187,119 2,351,090 1,518,142 3,869,232 27,540,000 1,629,250 29,169,250 2008-2009 2,300,000 1,379,326 3,679,326 144,759 42,360 187,119 2,444,759 1,421,686 3,866,445 25,240,000 1,484,491 26,724,491 2009-2010 2,390,000 1,514,871 3,904,871 148,523 38,596 187,119 2,538,523 1,553,467 4,091,990 54,125,000 1,335,968 55,460,968 2010-2011 3,460,000 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 2011-2012 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 2012-2013 3,605,000 1,775,376 5,380,376 160,411 26,708 187,119 3,765,411 1,802,084 5,567,495 43,595,000 866,827 44,461,827 Total Total Operating Non-Operating Debt Service Capital Debt Service Annual Debt Annual Debt Total Debt Fiscal Debt Operating Expenses less Revenue & Net Coverage Improvement Adjusted Net Coverage Service to Service per Outstanding Year Service Revenue Depreciation Contributions Revenue *1 (Net Revenue) *2 Fees/Concord Revenue*3 (Adj. Net Revenue)*4 Operating Exp. 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 67,141,476 30,569,164 32,510,374 5.84 9,708,300 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. Debt Restrictions: *2 This ratio must be above 1.00 to meet the Debt Rate Covenant (Net Revenue/Total Debt Service). Revenue Pledge & Covenant: The District pledges *3 Adjusted Net Revenue = Net Revenue less Capital Improvement Fees (Connection Fees) and City of Concord Capital Charges. Property Tax Revenue along with its ability to raise Sewer *4 This ratio must be above 1.25 to meet the Debt Rate Covenant (Adjusted Net Revenue/Total Debt Service). Service Charge (SSC) rates. Debt Coverage requirements are discussed in the footnotes to the left. Source: Central Contra Costa Sanitary District Audited Financial Statements and Internal Accounting Records Central Contra Costa Sanitary District Summary Of Debt Service Last Ten Fiscal Years Summary By Type Of Debt Debt Ratios Revenue Bonds (2009, 2002 & 1998) Water Reclamation Loan Total Debt Service Annual Expense Debt Service Coverage Summary TOTAL DEBT SERVICE OUTSTANDING $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 Dollars Debt Service Paid Each Fiscal Year $0 $15,000,000 $30,000,000 $45,000,000 $60,000,000 Dollars Outstanding Debt Each Fiscal Year In 2009, the District issued Bonds which retired the 2002 and 1998 bond debt and gained $30 million in net proceeds dedicated to fund Capital Improvements. S-7 Inside District Concord/Total % As Of January 1 Boundaries Clayton Served Change 2004 303,980 135,845 439,825 0.3% 2005 308,428 135,780 444,208 1.0% 2006 309,600 135,400 445,000 0.2% 2007 314,400 134,300 448,700 0.8% 2008 317,340 134,560 451,900 0.7% 2009 322,200 134,000 456,200 1.0% 2010 326,600 135,400 462,000 1.3% 2011 321,800 133,600 455,400 -1.4% 2012 326,900 134,200 461,100 1.3% 2013 332,600 134,900 467,500 1.4% Source: Central Contra Costa Sanitary District Environmental Services Division Estimated % of Total County Estimated % of Total County Employers Employees Rank Employment Employees Rank Employment John Muir Physician Network --2,200 1 0.5% Kaiser Foundation Hospitals 2,300 3 0.5% 2,000 2 0.4% Chevron Corporation 5,000 1 1.0% 1,329 3 0.3% Target Corporation 3,400 2 0.7% 1,262 4 0.3% Walmart Stores, Inc --1,150 5 0.2% Contra Costa Newspapers, Inc. --1,140 6 0.2% Doctors Medical Center 900 8 0.2% 937 7 0.2% Shell/Martinez Refinery 1,000 6 0.2% 900 8 0.2% Bio-Rad Laboratories --900 9 0.2% Texaco Inc --800 10 0.2% USS Posco Industries 975 7 0.2% --John Muir Medical Center 1,900 4 0.4% --John Muir/Mt. Diablo Medical Center 1,500 5 0.3% --Bank of the West 800 9 0.2% --Aetna Health Services 600 10 0.1% --All Others 465,825 96.2% 465,281 97.3% 484,200 100.0% 477,899 100.0% 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. List of Ten Largest Employers in Contra Costa County Last Year and Seven Years Ago 2005* 2012* Central Contra Costa Sanitary District Demographic and Economic Data Population Served Last Ten Calendar Years S-8 Fiscal Year Per Capita Ended Personal Personal June 30 Population* Income* Income* 2003 987,531 45,775,727,000 46,354 6.1% 2004 992,424 48,923,798,000 49,297 5.4% 2005 999,013 51,534,263,000 51,585 5.1% 2006 1,000,834 55,318,933,000 55,273 4.5% 2007 1,009,152 58,043,926,000 57,518 4.7% 2008 1,023,344 59,914,142,000 58,547 6.3% 2009 1,037,890 55,781,843,000 53,745 10.8% 2010 1,052,605 57,700,398,000 54,817 11.3% 2011 1,066,096 60,778,675,000 57,011 11.0% 2012 N/A N/A N/A 9.0% N/A -Information not available at this time. * 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. Unemployment Rate** Demographic and Economic Statistics Last Ten Fiscal Years Contra Costa County Average Annual S-9 Department 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Administration 42 43 42 42 45 45 45 44 39 39 Engineering 71 76 73 75 76 80 76 75 71 75 Operations Collection Systems 45 46 49 50 50 52 47 44 47 56 Plant 82 81 88 83 77 82 78 74 71 76 Pumping Station 9 9 9 10 11 10 10 8 7 8 Operations Total 136 136 146 143 138 144 135 126 125 140 District Total 249 255 261 260 259 269 256 245 235 254 District Total 163 167 167 177 178 187 201 215 237 244 Last Ten Fiscal Years Full-time Equivalent Employees as of June 30 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 S-10 Central Contra Costa Sanitary District Capital Asset and Operating Statistics Last Ten Calendar or Fiscal Years 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 53.8 Average Dry Weather Flow (ADWF) Calendar 40.0 40.6 41.4 41.6 38.6 36.6 32.5 38.9 37.2 33.2 Wastewater Treated per day Calendar 42.9 44.7 48.0 50.4 41.2 41.0 37.0 40.6 41.9 39.8 Tons per Year 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. *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/Outfall Sewers Other Data Pipeline Miles Calendar 1,400 1,400 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,526 Number of pumping stations Calendar 20 21 17 17 17 17 17 16 16 16 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 mgd Number of Recycled Water Customers Calendar 21 23 24 30 30 31 30 33 35 35 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 $ 6 0 $ 64 $ 61 $ 76 $ 76 $ 8 2 $ 87 $ 9 3 Pounds of HHW per Car Fiscal 71 64 65 80 71 67 65 68 67 68 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 Household Hazardous Waste Facility Recycled Water Type Of Treatment: Discharge -Secondary; Reclamation -Tertiary Service Area: 144 square miles Total Population Served: 467,500 Sewer Service Charge: $371 annually per residential equivalent unit Source: Central Contra Costa Sanitary District records. Millions of Gallons per Day (mgd) Miscellaneous Statistics S-11 CENTRAL CONTRA COSTA SANITARY DISTRICT Comprehensive Annual Financial Report Table of Contents For the Year Ended June 30, 2013 INTRODUCTORY SECTION: Letter of Transmittal ............................................................................................... i Board of Directors ................................................................................................ vi i Mission Statement .............................................................................................. viii Organization Chart ............................................................................................... ix Map of Service Area ............................................................................................. x Certificate of Achievement .................................................................................... xi FINANCIAL SECTION: Independent Auditors’ Report ............................................................................... 1 Manage ment’s Discussion and Analysis .............................................................. 3 Basic Financial Statements Statement of Net Position ........................................................................ 10 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 integral part of the basic financial statements .................................... 15-37 Supplementary Information Combining Schedule of Statement of Net Position .................................. 41 Combining Schedule of Statement 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 STATISTICAL SECTION (Unaudited): 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 Major Revenue Base and Rates - Historical and Current Fees - Last Ten Fiscal Years ..................................................................................... S-4 Sewer Service Charge - List of Ten Largest Customers - Last Ten 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 Dat a - 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 - Last Ten Fiscal Years ..................................................................................... S-9 Full-time Equivalent Employees by Department - Last Ten Fiscal Years ........ S-10 Number of Retirees and Surviving Spouses - Last Ten Fiscal Years .............. S-10 Capital Asset and Operating Statistics - Last Ten Calendar or Fiscal Years ... S-11 Miscellaneous Statistics .................................................................................. S-11 (THIS PAGE INTENTIONALLY LEFT BLANK) Central Contra Costa Sanitary District Introductory Section Central Contra Costa Sanitary District Protecting public health and the environment 5019 Imhoff Place, Martinez, CA 94553-4392 ii 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. iii  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 ¼ 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 the Bay Area will continue as a top performer in job and economic recovery. The decline in ho me 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 fu ture. 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 iv 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 s ervice charge rates w hen 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 th e District’s investment strategy in the current volatile economy. Major Initiatives The District’s vision i s 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, reg ulations addressing sewer system overflows and public notification have become v 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 rep resents “Leadership in Energy and Environmental Design,” which is a dministered 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. vi  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 vii CENTRAL CONTRA COSTA SANITARY DISTRICT BOARD OF DIRECTORS June 30, 20 13 James A. Nejedly .............................................. President Dav id R. Williams ............................... President Pro-Tem Paul H. Causey ................................................... Member Michael R. McGill ................................................ Member T ad J. Pilecki ...................................................... Member O ur M issi O n O ur V isi O n O ur V alues T o protect the public health and the environment by: • Collecting and treating wastewater • Recycling high quality water • Promoting pollution prevention B e a high performance organization that provides exceptional customer service and full regulatory compliance at responsible rates. W e will achieve our goals by valuing: • Each other • Ethics and integrity • A healthy and safe environment • Community relationships • The meeting of commitments • All aspects of diversity Central Contra Costa Sanitary District 0021-10/08 viii ix x xi (THIS PAGE INTENTIONALLY LEFT BLANK) Central Contra Costa Sanitary District Financial Section INDEPENDENT AUDITORS' 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 Di strict’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 St ates of America; this includes the design, implementation, and maintenance of intern al 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 opinions on these fina ncial statements based on our audit. We c onducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan a nd perform the audit to obtain reason able assurance about whether the financial statements are free from material misstatement. An audit involves performing proce dures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected de pend on the auditor’s judgme nt, including the assessment of the risks of material misstatement of the financial statements, whether due to fr aud 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 accounti ng 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 opinions. Opinions In our opinion, the financial statemen ts referred to above present fair ly, in all material respects, the respective financial positions of the business-type activities and each majo r fund of the District as of June 30, 2013, and the respective changes in the financial pos itions and cash flows, wher e applicable, thereof for the years then ended, in conformity with accounting pr inciples generally accepted in the United States of America. Emphasis of Matters Management adopted the provisions of Governmental Accounting Standards Board Statement 63 - Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position , which became effective duri ng the year ended June 30, 2013 and requi red changes to statement titles and other nomenclature within the financial statements. The emphasis of this matter does not c onstitute a modification to our opinion. Other Matters Required Supplementary Information Accounting principles generally accepted in the Unite d States of America requi re that Management’s Discussion and Analysis be presented to supplement the basic financial statements. Such information, although not a part of the basic fina ncial statements, is required by th e 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 this information in accordance with ge nerally accepted auditing standards in the United States of America, which co nsisted of inquiries of mana gement 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 knowl edge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assuranc e 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 opi nions on the financial statements that collectively comprise the District’s basic fina ncial statements as a whole. The Introductory Section, Supplemental Information and Statistical Section, as listed in the Table of Contents are presented for purposes of additional analysis and are not required parts of the basic financial statements. The Supplemental Information is th e responsibility of management a nd was derived from and relates directly to the underlying accounting and other records used to prepar e the financial statements. The information has been subjected to the auditing procedures applied in the a udit of the financial statements and certain additional procedures, incl uding comparing and reconciling such information directly to the underlying accounting and other records used to prepar e the financial statements or to the financial statements themselves, and other additional procedures in accordance with generally accepted auditing standards in the United States of Amer ica. In our opinion, the Supplement al Information is fairly stated in all material respects in relation to the basic financial statements as a whole. The Introductory and Supplemental Sect ions have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, acco rdingly, we do not express an opinion or provide any assurance on them. Pleasant Hill, California September 18, 2013 Central Contra Costa Sanitary District Protecting public health and the environment 5019 Imhoff Place, Martinez, CA 94553-4392 Central Contra Costa Sanitary District Statistical Section 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 over time. 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 Di strict’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 - Last Ten 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 Debt Capacity This schedule contains information to help the reader assess the affordability of the Distric t’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 - Last Ten 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 fi nancial 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 Changes in Net Position 2003-2004 2004-2005 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 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 loan receivable revenue and offset of $985,916. The revenue is offset by the provision for losses categorized in other. ** Classification reclassed 2010-11, prior years reclassed for consistency. Previously included in Non-Operating. Includes capital cost contributions from the City of Concord and customer contributions (SSC). The District implemented GASB 34 in the 2002-2003 fiscal year, one year earlier than required. Source: Central Contra Costa Sanitary District Audited Financial Statements Last Ten Fiscal Years S-1 Fiscal Sewer Service City of Other Service Miscellaneous Total Year Charges*Concord Charges Charges 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 Fiscal Property Customer Connections All Total Non-Operating Year Taxes *1 Contributions *2 & Other Fees *3 Interest Other & 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. 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 Operating Revenue Non-Operating Revenue *2 Customer Contributions include the portion of SSC that is allocated to Sewer Construction Fund, City of Concord reimbursement of capital costs, and developer $- $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 Do l l a r s Fiscal Year Central Contra Costa Sanitary District Revenue By Type Last Ten Fiscal Years Operating Revenue Non-Operating Revenue S-2 Fiscal Salaries Chemicals, Utilities Professional &Hauling, Disposal,Self-Insurance Depreciation All Total Operating Non-Operating Year and Benefits & Supplies Outside Services Repairs & Maintenance Other Expenses 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 $1,101,115 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 1,775,857 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 1,694,304 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 1,609,104 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 1,518,142 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 1,421,686 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 2,539,383 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 2,585,112 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 1,919,375 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 1,802,084 Informational - not graphed * 2009-2010 non-operating expenses includes Prop 1A loan receivable revenue offset of $985,916. Source: Central Contra Costa Sanitary District Audited Financial Statements OPERATING EXPENSES $- $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 Do l l a r s Fiscal Year Central Contra Costa Sanitary District Operating Expenses by Type Last Ten Fiscal Years Salaries and Benefits Chemicals, Utilities & Supplies Professional & Outside Services Hauling, Disposal, Repairs & Maintenance Self-Insurance Depreciation All Other S-3 Facility Pump Fiscal Year Operations Capital Total Capacity Fee *2 Zone Fee *3 2003-2004 $218 $54 $272 $3,983 $988 2004-2005 204 76 280 3,983 988 2005-2006 234 46 280 4,150 1,331 2006-2007 213 76 289 4,263 1,404 2007-2008 242 58 300 4,524 1,466 2008-2009 260 51 311 4,923 1,586 2009-2010 292 19 311 5,298 1,651 2010-2011 300 11 311 5,451 1,641 2011-2012 302 39 341 5,465 1,606 2012-2013 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 Historical and Current Fees Last Ten Fiscal Years Annual Sewer Service Charge (SSC) *1 Central Contra Costa Sanitary District Major Revenue Base and Rates $0 $50 $100 $150 $200 $250 $300 $350 $400 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 An n u a l S S C Fiscal Year Operations Capital S-4 Percentage of Percentage of Percentage of Percentage of Percentage of 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. Mary's 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% Percentage of Percentage of Percentage of Percentage of Percentage of 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 15.18% 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 0.48% 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 0.47% 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 0.25% St. Mary's College Contract 126,222 6 0.24%--98,521 10 0.16%119,407 7 0.19%158,480 7 0.23% 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 0.21% 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 0.19% Muirland @ Windemere Apartments --108,850 9-10 0.19%108,850 7-8 0.18%119,350 8-9 0.19%129,850 10 0.19% 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 2011-2012 2007-2008 2012-2013 Central Contra Costa Sanitary District Sewer Service Charge List Of Ten Largest Customers Ten Fiscal Years 2006-2007 2005-2006 2004-2005 2003-2004 2008-2009 2009-2010 2010-2011 S-5 Fiscal Year Local Secured Unsecured Total 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*Sewer Service Charges* Fiscal Year Levied & Collected % Change Levied & Collected 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 % Change Last Ten Fiscal Years Central Contra Costa Sanitary District Assessed and Estimated Actual Valuation of Taxable Property Last Ten Fiscal Years Property Tax and Sewer Service Charge Fees Levied and Collected % Change S-6 Fiscal Total Total Total Revenue Water Rec.Total Debt Year Principal Interest Debt Service Principal Interest Debt Service Principal Interest Debt Service Bonds Loan Outstanding 2003-2004 1,375,000 1,583,739 2,958,739 127,323 59,796 187,119 1,502,323 1,643,535 3,145,858 35,940,000 2,172,519 38,112,519 2004-2005 1,995,000 1,719,372 3,714,372 130,634 56,485 187,119 2,125,634 1,775,857 3,901,491 33,945,000 2,041,885 35,986,885 2005-2006 2,060,000 1,641,215 3,701,215 134,030 53,089 187,119 2,194,030 1,694,304 3,888,334 31,885,000 1,907,855 33,792,855 2006-2007 2,135,000 1,559,500 3,694,500 137,515 49,604 187,119 2,272,515 1,609,104 3,881,619 29,750,000 1,770,340 31,520,340 2007-2008 2,210,000 1,472,113 3,682,113 141,090 46,029 187,119 2,351,090 1,518,142 3,869,232 27,540,000 1,629,250 29,169,250 2008-2009 2,300,000 1,379,326 3,679,326 144,759 42,360 187,119 2,444,759 1,421,686 3,866,445 25,240,000 1,484,491 26,724,491 2009-2010 2,390,000 1,514,871 3,904,871 148,523 38,596 187,119 2,538,523 1,553,467 4,091,990 54,125,000 1,335,968 55,460,968 2010-2011 3,460,000 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 2011-2012 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 2012-2013 3,605,000 1,775,376 5,380,376 160,411 26,708 187,119 3,765,411 1,802,084 5,567,495 43,595,000 866,827 44,461,827 Total Total Operating Non-Operating Debt Service Capital Debt Service Annual Debt Annual Debt Total Debt Fiscal Debt Operating Expenses less Revenue &Net Coverage Improvement Adjusted Net Coverage Service to Service per Outstanding Year Service Revenue Depreciation Contributions Revenue *1 (Net Revenue) *2 Fees/Concord Revenue *3 (Adj. Net Revenue)*4 Operating Exp.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 67,141,476 30,569,164 32,510,374 5.84 9,708,300 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.Debt Restrictions: *2 This ratio must be above 1.00 to meet the Debt Rate Covenant (Net Revenue/Total Debt Service).Revenue Pledge & Covenant: The District pledges *3 Adjusted Net Revenue = Net Revenue less Capital Improvement Fees (Connection Fees) and City of Concord Capital Charges.Property Tax Revenue along with its ability to raise Sewer *4 This ratio must be above 1.25 to meet the Debt Rate Covenant (Adjusted Net Revenue/Total Debt Service).Service Charge (SSC) rates. Debt Coverage requirements are discussed in the footnotes to the left. Source: Central Contra Costa Sanitary District Audited Financial Statements and Internal Accounting Records Central Contra Costa Sanitary District Summary Of Debt Service Last Ten Fiscal Years Summary By Type Of Debt Debt Ratios Revenue Bonds (2009, 2002 & 1998)Water Reclamation Loan Total Debt Service Annual Expense Debt Service Coverage Summary TOTAL DEBT SERVICE OUTSTANDING $0 $1,000,000 $2,000,000 $3,000,000 $4,000,000 $5,000,000 $6,000,000 Do l l a r s Debt Service Paid Each Fiscal Year $0 $15,000,000 $30,000,000 $45,000,000 $60,000,000 Do l l a r s Outstanding Debt Each Fiscal Year I n 2009, the District issued Bonds which retired the 2002 and 1998 bond debt and gained $30 million in net proceeds dedicated to fund Capital Improvements. S-7 Inside District Concord/Total % As Of January 1 Boundaries Clayton Served Change 2004 303,980 135,845 439,825 0.3% 2005 308,428 135,780 444,208 1.0% 2006 309,600 135,400 445,000 0.2% 2007 314,400 134,300 448,700 0.8% 2008 317,340 134,560 451,900 0.7% 2009 322,200 134,000 456,200 1.0% 2010 326,600 135,400 462,000 1.3% 2011 321,800 133,600 455,400 -1.4% 2012 326,900 134,200 461,100 1.3% 2013 332,600 134,900 467,500 1.4% Source: Central Contra Costa Sanitary District Environmental Services Division Estimated % of Total County Estimated % of Total County Employers Employees Rank Employment Employees Rank Employment John Muir Physician Network --2,200 1 0.5% Kaiser Foundation Hospitals 2,300 3 0.5%2,000 2 0.4% Chevron Corporation 5,000 1 1.0%1,329 3 0.3% Target Corporation 3,400 2 0.7%1,262 4 0.3% Walmart Stores, Inc --1,150 5 0.2% Contra Costa Newspapers, Inc.--1,140 6 0.2% Doctors Medical Center 900 8 0.2%937 7 0.2% Shell/Martinez Refinery 1,000 6 0.2%900 8 0.2% Bio-Rad Laboratories --900 9 0.2% Texaco Inc --800 10 0.2% USS Posco Industries 975 7 0.2%-- John Muir Medical Center 1,900 4 0.4%-- John Muir/Mt. Diablo Medical Center 1,500 5 0.3%-- Bank of the West 800 9 0.2%-- Aetna Health Services 600 10 0.1%-- All Others 465,825 96.2%465,281 97.3% 484,200 100.0%477,899 100.0% 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. List of Ten Largest Employers in Contra Costa County Last Year and Seven Years Ago 2005*2012* Central Contra Costa Sanitary District Demographic and Economic Data Population Served Last Ten Calendar Years S-8 Fiscal Year Per Capita Ended Personal Personal June 30 Population*Income*Income* 2003 987,531 45,775,727,000 46,354 6.1% 2004 992,424 48,923,798,000 49,297 5.4% 2005 999,013 51,534,263,000 51,585 5.1% 2006 1,000,834 55,318,933,000 55,273 4.5% 2007 1,009,152 58,043,926,000 57,518 4.7% 2008 1,023,344 59,914,142,000 58,547 6.3% 2009 1,037,890 55,781,843,000 53,745 10.8% 2010 1,052,605 57,700,398,000 54,817 11.3% 2011 1,066,096 60,778,675,000 57,011 11.0% 2012 N/A N/A N/A 9.0% N/A - Information not available at this time. * 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. Unemployment Rate** Demographic and Economic Statistics Last Ten Fiscal Years Contra Costa County Average Annual S-9 Department 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Administration 42 43 42 42 45 45 45 44 39 39 Engineering 71 76 73 75 76 80 76 75 71 75 Operations Collection Systems 45 46 49 50 50 52 47 44 47 56 Plant 82 81 88 83 77 82 78 74 71 76 Pumping Station 9 9 9 10 11 10 10 8 7 8 Operations Total 136 136 146 143 138 144 135 126 125 140 District Total 249 255 261 260 259 269 256 245 235 254 District Total 163 167 167 177 178 187 201 215 237 244 Last Ten Fiscal Years Full-time Equivalent Employees as of June 30 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 S-10 Central Contra Costa Sanitary District Capital Asset and Operating Statistics Last Ten Calendar or Fiscal Years 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 53.8 Average Dry Weather Flow (ADWF)Calendar 40.0 40.6 41.4 41.6 38.6 36.6 32.5 38.9 37.2 33.2 Wastewater Treated per day Calendar 42.9 44.7 48.0 50.4 41.2 41.0 37.0 40.6 41.9 39.8 Tons per Year 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. *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/Outfall Sewers Other Data Pipeline Miles Calendar 1,400 1,400 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,526 Number of pumping stations Calendar 20 21 17 17 17 17 17 16 16 16 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 mgd Number of Recycled Water Customers Calendar 21 23 24 30 30 31 30 33 35 35 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 $ 93 $ Pounds of HHW per Car Fiscal 71 64 65 80 71 67 65 68 67 68 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 Household Hazardous Waste Facility Recycled Water Type Of Treatment:Discharge - Secondary; Reclamation - Tertiary Service Area:144 square miles Total Population Served: 467,500 Sewer Service Charge:$371 annually per residential equivalent unit Source: Central Contra Costa Sanitary District records. Millions of Gallons per Day (mgd) Miscellaneous Statistics S-11