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HomeMy WebLinkAbout08.a. 10-Year Financial Projections for Rate SettingCentral Contra Costa Sanitary District February 20, 2014 TO: HONORABLE BOARD OF DIRECTORS VIA: ROGER S. BAILEY, GENERAL MANAGE V ., / THEA VASSALLO, FINANCE MANAGER" FROM: TODD SMITHEY, FINANCE ADMINISTRATOR 71t- SUBJECT: BOARD FINANCIAL PLANNING AND POLICY WORKSHOP 10 —YEAR FINANCIAL PLANNING PROJECTIONS Attached is the 10 -Year Financial Projection document for rate setting. This document utilizes the District's financial planning model to project rates over the next fiscal year and following 9 years. The projections utilize expenditure and revenue projections generated from a number of sources and are summarized in the report. This year, a Preliminary 2014 -15 SSC Rate Discussion was presented to the full Board on February 6, 2014. The Board requested additional scenarios and the attached report now includes eight scenarios with the scenario to distribute the CCCERA payments over a 12 -month period to follow since further analysis is needed to run those numbers. The Financial Projections indicate a $34 FY 2014 -15 self - implementing increase is still needed based on current assumptions. Scenario 1B illustrates this. Staff will be reviewing the projection assumptions and scenarios at the Board Financial Planning and Policy Workshop scheduled for March 6, 2014. If you have any questions that you would like to discuss prior to the workshop or if you have particular items you would like to have covered during the workshop, please contact General Manager Roger S. Bailey. ft. A , � Rte' ��' �'' • � • 1 , I 1 I • • • • • , • "�. tea, _ . , k�r h. <�.�j� � . -�. �_'_ •.= =-ice —� .. \� - — �'� z� ,�. ,_ ._ I, �� '� �. _ 'r � _ ..+, e.�.. 1. �..-�?7� w' �h.... ^.....� _.. _, � — !S • • REPORT TERMS /ACRONYMS The following terms are used throughout the report. They are listed below with their related acronyms so that you can refer to them for definition purposes. The acronyms are initially spelled out and then thereafter. utilized throughout the report. CCC (Contra Costa County) CCCERA (Contra Costa County Employees' Retirement Association) CIB (Capital Improvement Budget) CIP (Capital Improvement Program) CPI (Consumer Price Index) DEBT (consists of Bond Debt and the State Recycled Water Loan) FY (Fiscal Year) GASB (Governmental Accounting Standards Board) GASB- 45 /OPEB (Governmental Accounting Standards -45 /Other Post - Employment Benefits) O &M (Operations & Maintenance) OPEB (Other Post - Employment Benefits) RUE (Residential Unit Equivalent) SIR (Self - Insured Retention) SSC (Sewer Service Charge) UAAL (Unfunded Actuarial Accrued Liability) Important Note on District Terms Used in Report: The term Funds Required is used by the District to define the minimum amount of cash and investments the District must have on hand on June 30 "' to meet cash flow needs for operating and capital expenses From July 1 through mid - December until we receive our first Contra Costa County (CCC) Sewer Service Charge (SSC) and property tax installment, and the term Funds Available is used to define the amount of cash and investments that is actually on hand on June 301". Unless otherwise noted, general comments and data in the financial report will be pulled from Scenario 1 B. This scenario has updated current information with the $34 Automatic SSC rate increase for 2014 -15. EXECUTIVE SUMMARY INTRODUCTION The Executive Summary gives the Board a high level understanding of the District's financial planning strategy, rationale of rate - setting back to Fiscal Year (FY) 2009 -2010, and a summary of Fiscal Year 2014 -15 rate - setting options. The Financial Report goes into more detail and provides the Board with all of the requested scenarios. A preliminary discussion on rate setting was presented to the Board on February 6th. At that time staff sought direction from the Board on any rate scenarios that would aid in the rate - setting process. Several scenarios were requested and are included later in this report. FINANCIAL PLANNING STRATEGY The District prides itself on providing a high level of service for reasonable rates. This is accomplished using a multi - pronged financial planning approach. Financial Planning Multi- Pronged Strategy • Provide high level service for reasonable rates (stay in the middle of pack in the SSC rate comparison survey) • Review and update other fees, rates and charges annually to maintain full cost recovery. • Continue to optimize the business, by improving processes and efficiency, implementing new ideas, making expense reductions, scrutinizing the need to fill vacated positions and implementing a succession plan. • Use the continued favorable bid climate to implement needed capital projects at a reduced cost; continue Board workshops to manage and plan capital expenditures. • Use a pay -as- you -go approach for renewal and replacement projects. Accumulate funds for future regulatory driven projects, such as nitrification that are scheduled outside the 10 -year financial planning window. Draw down reserves to an optimal level, taking into consideration the impact of unfunded liabilities. District cash flow needs, and future regulatory requirements. • Make payments on unfunded accrued liabilities, as revenues permit, to reduce interest and total costs. -2- BACKGROUND ON RATE INCREASES In 2009 when the severity of the economic downturn became apparent, the District Board of Directors, after thoughtful debate, elected not to raise sewer service charge rates for 2 years in order to provide some financial relief to our customers. Staff responded to the Board's actions by implementing cost - saving measures which resulted in a savings in operating and maintenance costs of over $2 million in 2009 -10 and $2.5 million projected for 2010 -11. Because the economic downturn resulted in significant bid savings on capital projects, staff recommended. and the Board agreed, that the Capital Program should continue and needed projects should be built. In order to fund these projects without raising rates for 2 years, $30 million in bonds were sold. After considering a range of funding scenarios, it became evident that a two year Sewer Service Charge (SSC) increase of significance was needed after two years of not raising rates. The Board adopted the staff recommended scenario of a two year $30 per year SSC increase for FY 2011 -12 and 2012 -13. At the time of adoption, in June of 2011, it was thought that increases of this magnitude going forward, i.e. about $30 per year, would be adequate to meet the District's obligations for both operating and maintenance costs and capital expenditures over the 10 year duration of the financial plan. Unfunded liabilities related to funding employee and retiree future healthcare and pensions continue to increase substantially. The Board has responded to this by authorizing additional annual pay -downs to the pension Unfunded Actuarial Accrued Liability (UAAL) ranging from $5 to $10 million per year beginning in FY 2012 -13. Increased costs are putting more pressure on rates, resulting in projected increases slightly higher than what was projected in 2011. On June 20, 2013, the Board adopted Ordinance No. 278 which: approved rate increase of $34 per Residential Unit Equivalent (RUE) for FY 2013 -14, and $34 per RUE for FY 2014 -15 subject to additional Board review and additional public hearing before the FY 2014 -15 takes effect. A public hearing on the rate increase will occur on April 17, 2014. The three options available to the Board are: • Leave the rate increase at $34 (no Board action required) • Increase the rate adjustment above $34 (requires sending another Prop. 218 Notice by April 21St — March 21s' for staff to prepare) • Decrease the approved $34 SSC rate increase (requires Board agreement on a lower rate by majority vote) A preliminary discussion on rate setting was presented to the Board on February 6t". At that time staff sought direction from the Board on rate scenarios. Several scenarios were requested and are provided in this report. (SEWER SERVICE CHARGE COMPARISON • On June 20, 2013, the Board voted to adopt a 2 -year $34 per year rate increase effective July 1, 2013. • The SSC rate survey that follows includes the $34 rate increase assumption. • If the second year of the increase goes into effect on July 1, 2014, the District will be 12th from the bottom of 27 San Francisco Bay Area agencies surveyed without property tax included, and 14th from the bottom with property tax included. This ranking is based on the data available to date. • The Mean Rate of Agencies Surveyed is $521 which is $82 or 18.7% higher than the 2014 -15 proposed rate of $439. • Most jurisdictions have not released their rate increase information for 2014 -15, so this ranking will improve when all FY 2014 -15 rate increases for surveyed agencies are known. • After accounting for the $34 rate increase and with limited 2014 -15 data, the District's position remains competitive (at the bottom half of those surveyed, even when property tax revenues are included). • The current rate is in the bottom third. See table on the following page for more detail. -4- Sewer Service Charge Rates for Bay Area Agencies Revised February 18, 2014 (Rates in effect on January 1, 2014) Agency 13 -14 SSCM AVR (2) per connection, if known SSC plus AVR Rank from lowest (with AVR) Comments Santa Rosa $1,132 WA $1,132 25 Effective 1/1/13. Petaluma $1,029 WA $1,029 24 Effective 1/1/14. Future CPI increases approved. Rodeo Sanitary District $695 $57 $752 22 Effective August 2012 Crockett Sanitary District $658 $219 $877 23 Richmond $633 WA $633 21 Ironhouse Sanitary District $618 $10 $628 20 Sells cattle and hay to offset rates. Oakland (EBMUD for treatment) $614 WA $614 19 Increasing to $614 on 1/1/14 Benicia $600 WA $600 18 Effective 7/1/13. Three more annual increases (to $678) approved. Brentwood $565 WA $565 16 2013 -14 Mean Rate of Agencies Surveyed $521 Novato $514 $64 $578 17 Increasing to $533 in 14 -15; $552 in 15 -16. Vallejo $507 WA $507 14 Increasing to $520 on 7/1/14 Mountain View Sanitary District $505 $27 $532 15 Berkeley (EBMUD for treatment) $496 WA $496 13 Livermore $489 WA $489 12 Napa Sanitation District $458 WA $458 9 Annual CPI increases approved for future years. Pittsburg (DDSD for treatment) $454 $19 $473 10 CCCSD 2014 -15 Proposed Rate $439 $79 $518 Bay Point (DDSD for treatment) $434 $62 $496 13 Includes $34 collection system replace menVrehab fee collected on tax roll. Pleasanton $427 N/A $427 8 Automatic CPI increase every July 1 Stege SD (EBMUD for treatment) $406 $20 $426 7 CCCSD 2013 -14 Current Rate $405 $79 $484 11 Antioch (DDSD for treatment) $385 $20 $405 6 Fairfield (FSSD) $366 WA $366 3 Increase to $393 approved for 2014 -15 Dublin San Ramon Services District $363 $13 $376 5 Annual CPI increases approved for future years. West County Wastewater District $347 $20 $367 4 Annual increases to $381, $407, $435, and $465 proposed. Concord (CCCSD for treatment) $324 WA $324 2 Pays for HHW Service from garbage franchise fees. Union Sanitary District $320 WA $320 1 Oro Loma Sanitary District $195 WA $195 lowest Annual increases to $200 and $206 approved. Rates in effect on January 1, 2014 unless noted. Data from prior years: current year data not available. nlAnnual Sewer Service Charge per Single Family Residence, or SFR. RIAVR = ad valorem (property tax) revenue; data from CCC Auditor - Controller's Report on 2012 -13 Property Tax Administration Charges. Where AVR is not known, adjusted rate includes only SSC. -5- (FIN ANCIAL REPORT( INTRODUCTION This report contains the FY 2014 -15 financial projections for the Board to review. The FY 2014 -2015 rate increase of $34 will go into effect on July 1, 2014 if the Board does nothing. The Board may choose to lower the SSC with a simple majority vote at the Board meeting on April 17, 2014. The financial report is broken into the following sections which provide the background information for the 2014 Board Financial Workshop: • Financial Impact of Forgoing the $34 Rate Increase in FY 2014 -15 • Methodology and Background • Development of 2014 Scenarios • 2014 Financial Planning Scenarios • Conclusion A Comment About Financial Model Projections and Other Data The 10 -year plan model is a forecasting tool. Many numbers in this report are projections based on the best, most current information available when the projections were made. Staff refines the numbers as new information becomes available. Information presented at the March 6th Board Workshop may contain more current information. This is also true of the SSC rate survey — a more up -to -date version may be available on March 6. 2014. -6- FINANCIAL IMPRACTS OF FOREGOING THE $34 RATE INCREASE IN FY 2014 -15 Staff prepared numerous financial scenarios for the Board's use. Scenario 1 B (reference "2014 Workshop Scenarios" tab for an explanation of 1 B) illustrates that the $34 rate increase is still appropriate and is the scenario used in preparing any supplemental information or projections in this report. Even if cost reductions are mandated for 2014 -15, because of the revenue required over the 10 -years planning period, and also because of compounding and the time value of money, it benefits the District to implement the rate increase now. Below is an illustration of the adverse financial impact if the $34 rate increase was postponed for FY 2014 -15. There is a 4% and 0.5% interest assumption and calculation. Also, the impact of $1 is shown at 4% and 0.5 %. If the $34 rate increase is delayed in FY 2014- 15, the financial loss is more than that one year of additional revenue, but it really impacts every year going forward. For instance, the $34 increase generates $5,559,000 in Year One. Even using the 0.05% interest assumption, lost revenue at the end of 10 years is $56.9 million. CCCSD Lost Revenue Illustration of Lower or No Rate Increase at the Beginning of a 10 -year period RUE Assumption 163,500 times $34 Interest Assumption 4.00% Lost Revenue Year 1 $5,559,000 Year 2 $5,781,360 Year 3 $6,012,614 Year 4 $6,253,119 Year 5 $6,503,244 Year 6 $6,763,373 Year 7 $7,033,908 Year 8 $7,315,265 Year 9 $7,607,875 Year 10 $7,912,190 163,500 163,500 163,500 $34 $1 $1 0.50% 4.00% 0.50% Lost Revenue Lost Revenue Lost Revenue $5,559,000 $163,500 $163,500 $5,586,795 $170,040 $164,318 $5,614,729 $176,842 $165,139 $5,642,803 $183,915 $165,965 $5,671,017 $191,272 $166,795 $5,699,372 $198,923 $167,629 $5,727,869 $206,880 $168,467 $5,756,508 $215,155 $169,309 $5,785,290 $223,761 $170,156 $5,814,217 $232,711 $171,006 Total 10 -Year Impact $66,741,949 $56,857,599 7- $1,962,999 $1,672,282 METHODOLOGY AND BACKGROUND The rate analysis uses a 10 -year cash flow model to develop rate guidance. The model calculates future rates needed to maintain adequate Funds Available based on projections from current information. As such, the model assumes the minimum amount of funds needed to meet cash flow needs. Current FY 2013 -14 Operations & Maintenance (O &M) budget figures were used in the model. Bond and total debt, the O &M budget (including the District's Self- Insurance Fund or SIR), and the Capital Improvement Budget (CIB) are then estimated for future years based on department expense projections and the long -term Capital Improvement Program (CIP). Projections are also developed for revenue categories including capacity fees, SSC, property tax, interest income, City of Concord reimbursements, etc. The District is currently working on a Strategic Plan and will be conducting a Cost of Service Study. A Reserve Policy will be reviewed during this process. For the 10 -Year Financial Plan report, our current approved cash flow guidelines are followed along with our policy not to short -term borrow to meet cash flow needs. The model assumes: • No short -term borrowing to meet cash flow needs; the District must meet its Funds Required by having the Funds Available on hand. In the 10 -year planning and rate - setting process, this is the amount held in cash and investments that is needed at June 301h of any fiscal year to meet cash flow needs through mid - December, when the first SSC and CCC property tax payments are received. These funds are needed to pay bills from mid -April through mid - December while we wait for SSC and property tax to be deposited. • Funds Required changes from year to year based on annual expenditure projections. In years where large capital projects are under construction, Funds Required are higher to enable making payments to the contractor for these projects without short term borrowing. Based on experience and bond requirements, Funds Required is determined using actual data from past years. SIR reserves are excluded from Funds Available. • The District prefunds the Contra Costa County Employees' Retirement Association (CCCERA) pension costs in July of each year. The District receives the assumed earnings rate by prefunding, which earned almost $600,000 in 2012 -13 at 7.75 %. This is a very favorable outcome since our temporary investments only earned an average of 0.3% in 2012 -13. Although this is a voluntary practice, it may not be advantageous for the District to pay CCCERA monthly and miss the opportunity for a high rate of return. • The financial model is run such that Funds Available are approximately equal to Funds Required at a targeted year in the future. This used to be by year 10 in the model — the soft landing approach. Because Funds Available are being drawn on each year to act as a rate subsidy, the model shows Funds Available meeting Funds Required by year 2 in Scenario 1 B. - 8 - • Rate Smoothing — The financial model is designed to smooth rates. First Debt Service is covered, then O &M is covered. leaving a 10% of the following fiscal year prudent reserve. The Capital Program gets the remainder. Scenario 4 cuts O &M expense by 10% and shifts those savings to Capital Project Expense. The capital rate component can be adjusted higher if a sinking fund approach is desired. • The Model assumes the District fully funds its annual obligation of its four major liabilities. In all scenarios except Scenario 6, additional payments to pay down our CCCERA UAAL are incorporated. • The model is pay -as- you -go. While the District has historically maintained a philosophy of pay -as- you -go and modest annual SSC increases, the rate increases have varied significantly from year to year. Bond financing is utilized for unanticipated, large capital projects. Or, in our most recent 2009 bond financing, it seemed advantageous to sell bonds with rates very low, refinance our then existing debt, and also take advantage of the very favorable bidding climate allowing the District to complete more capital projects at a reduced cost. Other Background and Considerations: • There have been periods of time when there were no rate increases. The longest period of time was for a 6 -year period from 1994 -95 to 1999 -2000. At that time there were privatization concerns and there was an emphasis on reducing operating and maintenance expenses. The Capital Program was reduced dramatically and projects were eliminated or deferred in order to reduce overall District expenditures. • In 1999 there was an increased focus on enforcement by regulatory agencies it was apparent that significant increases in the SSC were necessary in order to maintain service levels and rebuild the capital improvement program. • Over the 4 -year period from 2000 -01 to 2003 -04, the rates were increased from $188 to $272, a 45% increase, to make up for the lost ground from the years when rates were not increased. Then followed a period of time of moderate increases from 2004- 05 to 2008 -09 when rates rose from $272 to $311, a 14% increase. Finally, a 2 -year period in 2009 -10 and 2010 -11 where the Board felt that, in recognition of the economy and the impact to our rate payers, rates should not be increased. • The rate increases were avoided by implementing O &M savings goals, and depleting the Sewer Construction Fund Balance. In addition, $30 million in bonds were sold to allow needed capital projects to move forward and take advantage of the aggressive bidding climate which significantly reduced project construction costs from engineering estimates. In June of 2011, the Board voted to implement a two -year $30 per year increase. M • It appears that regular annual increases are prudent in keeping the total rate increase impact minimal. On average from 1990- 1991 through 2014 -15 (assuming the $34 rate increase), the average annual increase is just under $13 /year, or is a 5.1% annual increase. Consumer Price Index (CPI) increases have been mentioned because our rate payers may be able to better relate and understand that term. District salary increases have been tied to CPI so that logic makes sense. But we also must factor in benefit increases far exceeding CPI, increases in staffing over the years, chemical and utility cost volatility, and varying Capital Project needs. These and other specific factors in each rate - setting year are attributed to our average 5.1 % increase in rates. The chart and table that follow show the history of our SSC rate increases from FY 1990 -91 to FY 2014 -15. 1 HISTORY OF CENTRAL SAN SEWER SERVICE CHARGE RATES tin Proposed for2014 -15 $400 District loss of Pro e Tax . • $350 * ` Average Rate Increase = 12.63/ ear 5.1 YoN . • •' $300 District loss of Property Tax • • • ` • $250 ` $200 -- P • $150 — - • $100 $50 $0 90/91191/92 92193 93194 1 94195 1 95/96 96197 97198 98199 99/00 00101101/02 02103 03104 1 04105 05106 06/07 07108 08109 09110 110/11111112 112113 13114 11411 5 113Capital/Debt 0 0 5 25 28 31 31 31 31 31 15 20 41 54 76 46 76 58 51 1 19 11 39 27 40 26 INO&M 1 136 151 160 160 160 157 1157 157 157 157 185 1204 1 207 218 204 1 234 1213 242 260 1 292 1 300 302 1 344 365 113 - 12- The table to the left and the chart on the previous page show SSC rates and rate increase detail. It is interesting to note that up until FY 1991 -1992, there was no Capital SSC rate component. If needed and available, occasionally funds were transferred from O &M to Capital. Otherwise, Sewer Construction Fund revenues were used to pay for capital improvements. The largest sources were property tax, interest income, and connection fees. Annual Sewer Service Charge Fiscal Year O &M Capital Total 1990 -1991 $ 136 $ - $ 136 1991 -1992 $ 151 $ - $ 151 1992 -1993 $ 160 $ 5 $ 165 1993 -1994 $ 160 $ 25 $ 185 1994 -1995 $ 160 $ 28 $ 188 1995 -1996 $ 157 $ 31 $ 188 1996 -1997 $ 157 $ 31 $ 188 1997 -1998 $ 157 $ 31 $ 188 1998 -1999 $ 157 $ 31 $ 188 1999 -2000 $ 157 $ 31 $ 188 2000 -2001 $ 185 $ 15 $ 200 2001 -2002 $ 204 $ 20 $ 224 2002 -2003 $ 207 $ 41 $ 248 2003 -2004 $ 218 $ 54 $ 272 2004 -2005 $ 204 $ 76 $ 280 2005 -2006 $ 234 $ 46 $ 280 2006 -2007 $ 213 $ 76 $ 289 2007 -2008 $ 242 $ 58 $ 300 2008 -2009 $ 260 $ 51 $ 311 2009 -2010 $ 292 $ 19 $ 311 2010 -2011 $ 300 $ 11 $ 311 2011 -2012 $ 302 $ 39 $ 341 2012 -2013 $ 344 $ 27 $ 371 2013 -2014 $ 335 $ 70 $ 405 2014 -2015 $ 372 $ 67 $ 439 - 12- The table to the left and the chart on the previous page show SSC rates and rate increase detail. It is interesting to note that up until FY 1991 -1992, there was no Capital SSC rate component. If needed and available, occasionally funds were transferred from O &M to Capital. Otherwise, Sewer Construction Fund revenues were used to pay for capital improvements. The largest sources were property tax, interest income, and connection fees. DEVELOPMENT OF 2014 SCENARIOS Main Drivers Staff performs research prior to the 10 -year plan process to determine the assumptions that will be used in the planning scenarios. The main financial drivers are: • Capital investment in infrastructure for renewal and replacement as well as the capital and O &M cost of meeting new regulatory requirements, • Real estate downturn has not fully recovered, the State is in drought conditions, and reduced revenue and /or growth rates in SSC, Interest Income, Property Tax, Developer Permit and Connection Fees. RUE's have been reduced in the first three years to account deduced commercial water usage, • CCCERA pension cost increases due to depooling, five -year smoothing of stock market losses from 2008, and key assumption changes approved in 2013, • Health care cost increases, which are higher this year in part due to national healthcare reform and compliance, and • Significant unfunded accrued liabilities for which payment are incorporated in the 10 -year plan. Significant Unfunded Liabilities The District has 4 significant accumulated unfunded liabilities that are discussed in this section. They are: • Accrued Compensated Absence — Terminal Pay (vacation and sick leave accrued by employees) • GASB -45 (Governmental Accounting Standards- 45) /OPEB (Other Post - Employment Benefits) • CCCERA UAAL • Outstanding Debt Continued prudent management of these significant liabilities is necessary. While we have a funding plan in place, we expect significant fluctuations of the CCCERA and Other Post - Employment Benefits (OPEB) amounts. The scenarios presented examine several different approaches to paying down these unfunded liabilities. A new issue, that can be considered good news, is that the last of the 5 year smoothing of 2008 market losses have been accounted for by CCCERA actuaries. We are expecting a much lower UAAL in the next CCCERA valuation report. The additional funds for the UAAL paydown may be used for OPEB, Capital products or SSC rate reduction. The model assumes the District fully funds the prospective annual obligation of each of these liabilities. The table and graph that follows shows the amount of each of our significant liabilities for the past 8 years and then projects these liabilities into the future. The CCCERA liabilities do not reflect the reduced benefits for employees hired after January 1, 2011. Central Contra Costa Sanitary District Unfunded Liabilities Compared to Unrestricted Cash & Investment Balances Prnierteri finurec in italirc <1> Source - Audited Financials and projections based on internal workpapers <2> Source - Prior actuarial reports - 7/1/2010 actuarial reports for 2010 -11 and 2011 -12; 7/1/12 actuarial report for 2012 -13 and 2013 -14 projection (less budgeted PARS contribution). The 7/1/12 actuarial report decreased the anticipated rate of return by .25% which increases liability in addition to the large number of retirements. This is offset as PARS trust contributions grow. The actuarial reports reflect expense and liabilities for current and retired employees as of the date of the actuarial report and do not make any future assumptions for number of new retirements, changes in staffing, or potential changes in benefit structure, including employee contributions to premium cost. <3> Source - CCCERA - note that there is a 18 month lag i.e. the $109.2 million in 2011 -12 is as of 12/31/11 and was used in setting rates for 2012 -13. The S142,523,585 is as on 12/31/12 and will be used for 2013 -14. <4> Source - CAFR Debt Statistics and debt repayment schedule. No new debt is included at this time. <5> Source - Audited Financials. Does not include restricted cash & investments. Projection for 2013 -14 used 6/30/12 audited balance less 2013.14 budgeted draw from the 2013 -14 Budget document (rounded). The amount in the 10 -year plan is projected to be lower because it does not include Self- Insurance Fund. $300.000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50.000,000 Total Liabilities Compared to Unrestricted Cash and Investment Balance 2005 -06 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 —Total Unfunded Liabilities — Unrestricted Cash & Investments - 14- Source 2005 -06 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 Accrued Conipensated Absence <1> $ 5,199,818 5,312,645 6,102,851 6,123,647 5,724,684 5,132,067 3,710,580 3,833,245 4,000,000 GASB 45 OPEB Unfunded Liability <2> $ 70,452,051 68,447,956 68,447,956 66.428,054 80,933,000 80.933,000 78,017,000 75,769,000 72,369,000 CCCERA Unfunded Liability <3> S 40,477,000 43,021,000 36,483,000 39,779,000 71,018,235 99,841,380 109,168,803 142,523,585 139,211,000 Outstanding Debt <4> S 33,792,855 31.520.340 29,169,250 26,724,491 55.460,968 51,848.583 48,227,237 44,461,827 40,577,245 Total Unfunded Liabilities S 149,921,724 148,301,941 140,203 057 139 055,192 213,136 887 237 755,030 239,123,620 266,587,657 256,157245 Unrestricted Cash & Investments <5> S 68.185,730 35.057.668 40.207,157 54.979,971 60,800,173 63,074,343 58.924,132 57.213,412 49.200.000 Ratio - Liabilities to Cash & Investments 2.20 4.23 3.49 2.53 3.51 3.77 4.06 4.66 5.21 <1> Source - Audited Financials and projections based on internal workpapers <2> Source - Prior actuarial reports - 7/1/2010 actuarial reports for 2010 -11 and 2011 -12; 7/1/12 actuarial report for 2012 -13 and 2013 -14 projection (less budgeted PARS contribution). The 7/1/12 actuarial report decreased the anticipated rate of return by .25% which increases liability in addition to the large number of retirements. This is offset as PARS trust contributions grow. The actuarial reports reflect expense and liabilities for current and retired employees as of the date of the actuarial report and do not make any future assumptions for number of new retirements, changes in staffing, or potential changes in benefit structure, including employee contributions to premium cost. <3> Source - CCCERA - note that there is a 18 month lag i.e. the $109.2 million in 2011 -12 is as of 12/31/11 and was used in setting rates for 2012 -13. The S142,523,585 is as on 12/31/12 and will be used for 2013 -14. <4> Source - CAFR Debt Statistics and debt repayment schedule. No new debt is included at this time. <5> Source - Audited Financials. Does not include restricted cash & investments. Projection for 2013 -14 used 6/30/12 audited balance less 2013.14 budgeted draw from the 2013 -14 Budget document (rounded). The amount in the 10 -year plan is projected to be lower because it does not include Self- Insurance Fund. $300.000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50.000,000 Total Liabilities Compared to Unrestricted Cash and Investment Balance 2005 -06 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 —Total Unfunded Liabilities — Unrestricted Cash & Investments - 14- Ass Capital Project Spending CCCERA GASB 45 / OPEB Baseline Scenario (PY) Total capital expenditures of $421.7million in the 10- year period. UAAL was $109.2 million for 2011 -12 rate setting and grew to $142.5 million for 2012 -13 rate setting. $75 million allocated to pay down UAAL. Total cost in the 10 -year period was $169.9 million + $75 million additional = $244.9 million $81.0 million in the 10- year period (based on 7/1/12 valuation. 2014 FINANCIAL PLANNING SCENARIOS Scenarios 1 & 3 Total capital expenditures of $341.1 million included in the 10- Year Plan. This is $80.6 million less than prior year due to costs for nutrient removal were shifted outside the modeled years. UAAL estimated decrease to $139.2 million for the 2015- 16 rate - setting. Total CCCERA cost over 10 years is $193.6 million + $70 million additional UAAL payments remaining = $266.6 million, or $21.7 million more than in last year's model. Same as Baseline Scenario 2 Total capital expenditures of $324.5 million included in the 10- Year Plan. This is $97.2 million less than prior year due to costs for nutrient removal were shifted outside the modeled years and 20% of year 1 CIB removed. Same as Scenario 1 & 3. Same as Baseline. - 15 - acenano 4 Same as Scenario 1 &3. Same as Scenario 1 &3 (The 10% O &M reduction is off the total expense, not individual line items). Same as Baseline. (The 10% O &M reduction is off the total expense, not individual line items). Scenario 5 Total capital expenditures of $393.6 million included in the 10- Year Plan. This is $28.1 million less than prior year due to costs for nutrient removal were shifted outside the modeled years offset with reduced O &M spending going to CIP. Same as Scenario 1 & 3. Same as Baseline Scenario 6 Same as Scenario 1 & 3 except that $70 million of additional UAAL payments are removed. This is offset by higher normal rates to pay down the UAAL. Total CCCERA costs are $222.6 million and are 22.3 million less than in 2013. Same as Scenario 1 & 3 except that $70 million of remaining additional UAAL payments are removed. This is offset by higher normal rates to pay down the UAAL. Total CCCERA costs are $222.6 million and are $22.3 million less than in 2013. Same as Baseline. 2014 FINANCIAL PLANNING SCENARIOS (CONTINUED) Assumption Baseline Scenario Scenarios 1 & 3 Scenario 2 Scenario 4 Scenario 5 Scenario 6 (PY) Total 2013 current rates 2014 current rates Same as Scenarios Same as Scenario Same as Scenarios 1 Same as Scenarios Employee used — total employee increased using 1 & 3. 1 & 3 & 3. 1 & 3 except for Benefits benefits in the 10 -year most known (The 10% O &M reduction of (Including period = $417.9 million. increases or used reduction is off the additional $70 CCCERA and recommended total expense, not million in UAAL GASB 45) percentage individual line payments. Total increases — total items). benefits are $443.3 employee benefits in million and are the 10 -year period = $26.4 higher than $485.2 million. in 2013. Total O &M Total O &M expenses Total O &M Same as Scenarios Total O &M Same as Scenarios 1 Total O &M Expenses were projected to be expenses in the 10- 1 & 3. expenses in the & 3. expenses in the 10- (Including $921.4 million in the year period are 10 -year period are year period are CCCERA 10 -year period. $973.8 million and $921.3 million and $931.9 million and and GASB are $52.4 million are nearly equal to are $10.5 million 45) higher than in 2013. 2013. higher than in Increases in 2013. Increases in salaries, benefits, salaries, benefits reclasses, and the and the added TV TV program make program are offset up most of this by the removal of change. $70 million in UAAL _ Total RUE ranges prepayments. SSC RUE's Total RUE was Same as Scenarios Same as Same as Scenarios 1 Same as Scenarios 163,757 in 2013 -14 to from 163,357 in 1 & 3. Scenarios 1 & 3. & 3. 1 & 3. 173,203 in 2022 -23. 2013 -14 to 171,362 in 2023 - 24. New connections offset by lower water usage for commercial accounts. Additional assumptions by year are available in the Appendix in the February 6, 2014 Preliminary Rate Discussion PowerPoint presentation, slides 14 and 15. 16 - SCENARIO SUMMARY TABLE The rate impacts of the various scenarios are summarized in the table below. The detailed scenarios are included in the following pages of this report. Summary of Scenarios Referred to in the Financial Report 10 Scenario 2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 2019 -20 2020 -21 2021 -22 2022 -23 2023 -24 10 -Year Excess ID Description Rate Rate Rate Rate Rate Rate Rate Rate Rate Rate Endin g Funds Increase Increase Increase Increase Increase Increase Increase Increase Increase Increase Total Available 2023 -24 Prior Year 2013 -14 Scenario Baseline used for Rate Setting (June $ 34 $ 37 $ 36 $ 35 $ 34 $ 33 $ 20 $ S N/A $ 634 320.2 million 2013) Updated 2013 with New Known 1 A Rates, Reduced CIB Due to $ 37 $ 35 $ 35 $ 35 $ - $ - $ - $ - $ - $ - $ 547 $2.3 million Removal of Nitrification Scenario #1 with $34 SSC 1 B increase in Year 1 $ 34 $ 39 $ 36 $ 32 S - $ - $ $ $ $ - $ 546 $1.0 million Scenario #1 with $34 SSC 1 C increase in Year 1 AND CPI in $ 34 $ 39 $ 36 $ 32 $ 16 $ 17 $ 17 $ 18 $ 18 $ 19 $ 651 $65.0 million Annual Increases in Out -Years #1 with 20% Cut to Capital 2 Year 1; Defer Cut Amounts into $ 32 $ 32 $ 31 $ 31 $ 17 $ - $ - $ - S - S - $ 548 $10.6 million Remaining 9 Years #1 with No SSC Increase Year 1 3 and made up in Year 2 $ - $ 91 $ 34 $ 34 $ - S S $ S $ $ 564 $24.2 million #1 with 10% Cut to O &M 4 Expenses Every Year (not S 26 $ 25 $ 24 S 23 S 18 $ - $ $ $ $ - $ 521 $2.3 minion compounded) #1 with 10% Cut to O &M 5 Expenses Every Year and those $ 34 $ 35 $ 34 $ 33 $ - $ - $ $ S $ - $ 541 $ 239,900 funds rolled into CIP Expenditures #1 with No Additional UAAL 6 Discretionary Payments ($5 & $10 $ 21 $ 21 $ 21 $ 21 $ 18 S 10 $ 10 $ 11 $ 9 $ 9 $ 556 $ 583,300 million payments) - 17- CENTRAL CONTRA COSTA SANITARY DISTRICT 10 -YEAR FINANCIAL PLANNING WORKSHEET BASELINE SCENARIO - FROM PY 2013 RATE - SETTING Fiscal Years 2013 -14 through 2022 -2023 -18- 2/16/2014 9 44 AM NAACCOUNTINGIGMTEMP1e30 -Year Plan Proiccnons12014 -2015 Proiecilonsl61NDER AND WORKSHO"ASELINE FINAL FY2013.14 Scenano.xis Summary for Cuff yr Report A H I I J K L M N O P 1 2 _� _( RATE SETTING ASSUMPTIONS 3 4 1 S 6 7 8 9 10 3 Planning Year Projected-, ' 1 2 2012 -2013 1 2013 -2014 2014 -2015 4 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 2022 -2023 s Service Data Assumptions (End of F.Y.) 162,957 163,757 164,607 165,507 166,457 167,457 168,507 169,607 170,757 171,957 173,207 6 Adjustment to total RUE due to lower commercial accounts - - - - - - - - - - - 7 New Connections (RUE) for the labeled F.Y.. 800 800 850 900 950 1,000 1,050 1,100 1,150 1,200 1,250 a Growth Per Year 0.49% 0.49% 0.52% 0.55% 0.57% 0.60% 0.63% 0.65% 0.68% 0.70% 0.73% 9 to SEWER SERVICE CHARGE DATA AND CALCULATIONS 11 Sewer Service Charge Rate - Debt Service - - - - - - - - - - - 12 Sewer Service Charge Rate - O &M 344 36S 408 410 446 444 459 462 463 479 428 13 Sewer Service Charge Rate - Capital 27 40 31 66 66 103 122 152 171 1SS 206 371 405 439 476 512 547 581 614 634 634 634 14 Total SSC Rate 1s Increase to Rate . $ 30 34 34 37 36 35 34 38 20 - 16 Increase to Rate - % 8.80% 9.16% 8.40% 8.43% 7.56% 6.84% 6.22% 5.68% 3.26% 0.00% 0.00% 19 Total SSC Revenue 60,939,700 66,159,700 72,076,023 78,567,268 84,982,930 91,325,635 97,597,708 103,801,173 1&7,895,569 i08,646,519 109,417,169 20 21 Interest Revenue Rate Assumption 0.40% 0.50% 0.75% 1.00% 1.25% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% z2 23 Property Tax: 24 Growth %Assumption 0.00% 0.00% 0.00% 1.00% 1.00% 1.50% 2.00% 2.50% 3.00% 3.00% 3.00% 2s Growth $ 510,831 - - 125,580 126,836 192,156 260,051 331,566 407,826 420,060 432,662 26 Tax Take or Repayment 1,051,459 - - - - - - - - - - 27 Property Tax - Total 12,558,000 12,558,000 12,558,000 12,683,580 1 12,810,416 13,002,572 13,262,623 13,594,189 14,002,015 14,422,075 14,854,737 28 Property Tax Impact on RUE 77.06 76.69 76.29 76.63 76.96 77.65 78.71 80.15 82.00 83.87 85.76 29 3o Connection Fee - Gravity Zone 5,797 5,987 6,177 6,364 6,548 6,727 6,903 7,074 7,241 7,404 7,562 31 Percent Increase from PY 6.08% 3.28% 3.16% 3.04% 2.89% 2.74% 2.61% 2.48% 2.36% 2.25% 2.14% 32 Conn Fee - Pumped Zone 7,422 7,665 7,908 8,148 8,383 8,613 8,838 9,057 9,271 9,479 9,682 33 Percent Increase from PY 4,96% 3.28% 3.16% 3.04% 2.89% 2.74% 2.61% 2.48% 2.36% 2.25% 2.14% 34 lPercentage of Pumped Zone to Total Connections 56.25% 56.25% 52.94% 51.11% 1 49.47% J 48.00% 32.86% 9.09% 8.70% 1 8.33% 8.00% 35 50'NARIC) ASSUMPTIONS 36 Retiree OPEB Annual Contributions 8,300,000 8,103,000 8,103,000 8,103,000 8,103,000 8,103,000 8,103,000 Portion Allocated to PARS Trust 4,160,394 3,965,800 3,384,400 3,381,812 3,152,857 2,937,643 2,761,572 600,468 505,963 2,527,612 2,369,557 2,359,040 3e Estimated PARS Trust Balance (3%/year Interest) 27,076,018 31,973,072 36,418,196 40,994,009 45,471,271 49,861,182 54,201,437 62,864,582 3.2% 3 67,191,163 3.4% (4) 71,636,709 3.4% (3) 40 Salary Inflationifn4 weedbyRnaementAswmptimsbelow) 4A% 9.1% 2.6% 6.1% 3.7% 3.2% 3.2% E37 3.4% 41 No, of New Retirements inn of dead.) 6 (5) 6 4 2 2 2 (2) 42 Total O &M Benefit Increase Per Year ( %) 17.31% 25.07% 4.87% 2.47% 13.43% -0.99% 0.40% 0.58% 0.31% 0.39% - 21.87% 431 1XIn additional 61 21-221 -111 44 Total O&M Expense Change from prior year ( %) 6.91% 13.12% 4.70% 3.52 8.70% 0.88% 4.66% 1.78% 2.46% 1.79% -7.95% 46 Capital Project Inflation % 1.00%1 2.00% 3.001A 3.00% 3.00% 3.009A 3.00% 3.00% 3.00% 3.001A 4a Debt Coverage Ratio 3.601 3.25 3.57 13.51 7.00 8.14 10.21 13.33 12.09 12.87 13.57 49 Debt as a Percent of Revenue 6% S% 5% 2% 3% 3% 2% 2% 2% 2% 2% 50 REVENUE, EXPENSE AND FUND BALANCE sl DEBT SERVICE FUND ProJeded »» 2012 -2013 1 1 2013 -2014 2 1 2014 -2015 1 3 2015 -2016 4 1 2016 -1017 1 S 1017 -2018 6 2018 -2019 7 2019 -1020 8 1 1020 -2021 9 10 s2 2021 -2021 2022 -2013 L REVENUE: 5,567,376 5,567,376 5,552,435 5,552,435 5,546,218 5,546,218 2,077,785 2,077,785 3,782,051 3,782,051 3,809,926 3,809,926 3,603,238 3,603,238 3,600,701 3,600,701 3,607,578 3,607,578 3,597,111 3597,111 3,593,499 3,593,499 LEXPENSE: LEnding Fund Balance - I - - - - - - - - - - 56 M RUNNING EXPENSL FUND Protected »» 1 1 3 4 5 6 7 8 9 10 58 1012 -2013 2013 -1014 2014 -2015 2017 -1018 2018 -1019 1019 -2020 2021 -2013 2015 -2016 2016 -2017 2020 -2021 2021 -2022 59 TOTAL REVENUE: 70,429,900 75,099,709 83,069,562 84,478,074 92,110,205 92,617,997 97,069,000 98,721,844 100,061,722 104,001,530 95,008,276 6o TOTAL EXPENSE: 68,796,628 1,633,272 77,824,952 (2,725,243) 81,481,495 1,588,067 84,347,371 130,703 91,685,993 424,212 92,492,707 125,290 96,798,872 270,128 98,523,970 197,874 100,952,268 (890,546) 102,755,069 1,246,461 94,584,574 423,703 61 REVENUE MINUS EXPENSE: 62 6a Ending Fund Balance 10,333,272 7,608,029 9,196,096 9,326,799 9,751,011 9,876,301 10,146,429 10,344,303 9,453,757 10,700,218 11,123,921 64 Prudent Reserve 11.18% 12.68% 9.02%1 10.03% 20.08%1 10.07% 10.02%1 10.0591 10.07% 10.00% 10.11% 65 66 SEWE R CONS • • Projected »» 1 2 3 4 5 6 7 8 9 10 67 TOTAL REVENUE: 2012 -2013 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2010 -1021 2021 -2022 2022 -2023 68 21,010,105 24,091,343 22,498,353 31,983,241 33,578,938 39,668,453 44,877,236 57,537,020 60,962,631 60,950,313 65,976,036 26,367,916 29,580,000 26,480,220 26,414,185 36,324,537 3S,40S,797 38,587,214 59,575,860 57,253,828 61,868,018 50,176,332 69 TOTAL CAPITAL EXPENDITURES: 70 REVENUE MINUS CAPITAL EXPENDITURES: (5,357,811 ) - (5,488,657) - (3,981,867) - 5,569,056 - (2,745,599) - 4,262,656 - 6,290,022 - (2,038,840) 3,708,802 (917,705) 15,799,704 71 BOND PROCEEDS: 73 lEnding Fund Balance 40,942,189 35,453,532 1 31,471,665 1 37,040,721 34,295,122 1 38,557,777 1 44,847,799 1 42,808,959 1 46,517,761 1 45,600,056 61,399,760 74 7s TOTAL FUND BALANCES Projected »» 1 1 3 4 S 6 7 8 9 20 76 1011 -2013 2015 -1016 2016 -2017 20I7- -2018 2018 -2019 2019 -2020 1020 -2021 2021 -2022 2013 -2014 2014 -2015 1022 -2013 77 TOTAL FUNDS AVAILABLE 51,275,460 43,061,561 40,667,761 46,367,520 44,046,133 48,434,078 54,994,228 53,153,262 55,971,518 56,300,275 72,523,681 7a FUNDS REQUIRED 79 100% of Debt Service 5,552,435 5,546,218 2,077,785 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,500 3,583,720 so 32% of Next Year's O &M Expense 24,903,985 26,074,078 26,991,159 29,339,518 29,597,666 30,975,639 31,527,671 32,304,726 32,881,622 33,868,071 34,884,113 8130% of Next Year's Capital Expenditures 8,874,000 7,944,066 7,924,256 10,897,361 10,621,739 11,576,164 17,872,758 17,176,149 18,560,405 13,809,959 13,809,959 e2 ITOTAL FUNDS REQUIRED 39,330,419 39,564,362 1 36,993,199 44,018,930 44,029,332 1 46,155,041 53,001,130 53,088,452 55,039,138 51,271,530 520277,792 83 84 Funds Available Amount Above /(Beiow)Funds Required 11,945,041 3,497,198 3,674,562 2,348,590 16,801 2,279,037 1,993,098 64,810 1 932,380 1 5,028,745 1 20,245,889 65 GRAPHIC PRESENTATION OF FUNDS REQUIRED AND FUNDS AVAILABLE 87 Be Central Contra Costa Sanitary District ea Funds Available Compared to Funds Required by Year 90 Baseline Scenario 91 92 $100,000,000 93 w 590, 000, 000 96 9g Increased Funds Available for large projects in the next five years: new 97 $80,000.000 solids treatment (digesters or now furnaces). 98 Alternatively, funds could be used to paydown unfunded liabilities. 99 S70, 000, 000 too 101 $60,000,000 102 y Ia c $50,000,000 i 1 - 10s 1 $40,000,000 - - 107 108 $30,000,000 - 109 Ito S20.000.000 - - - - - 111 112 510,000,000 11 114 115 116 $0 TOTAL FUNDS AVAILABLE 2009.2010 2010.2011 2011-2012 2012- 2013 2013.2014 2014.2015 2015 -2016 2016.201717 -2016 16.2019 2019 -2020 I 2020.2021 1- 2021.2022 2022 -2023 73.441,883 61,999.931 I 554,999,999 51.275.460 43.061.561 40,667761 46.367,520 44,048.133 48,434,078 54,994,228 53, 153. 262 55.971,518 58,300,275 72,523,881 117 -TOTAL FUNDS REQUIRED _ 32.660,271 33,560,131 535,492,672 39.330,419 39.564,362 36. 993. 199 44, 018. 930 44, 029,33.2 46,155. 041 53,001,130 53.088.452 55.039,138 51.271.530 52.277,792 I 118 Fiscal Year 119 120 121 - 1?2 -18- 2/16/2014 9 44 AM NAACCOUNTINGIGMTEMP1e30 -Year Plan Proiccnons12014 -2015 Proiecilonsl61NDER AND WORKSHO"ASELINE FINAL FY2013.14 Scenano.xis Summary for Cuff yr Report CENTRAL CONTRA COSTA SANITARY DISTRICT 10 -YEAR FINANCIAL PLANNING WORKSHEET SCENARIO 1A- UPDATED PY SCENARIO WITH 2014 KNOWN ASSUMPTIONS -19- 014-2014 421 PM N- WCCOUNTING',GMTEMP1110 Year Plan ProlirctionM2014.2015 Prolocbons BINDER AND WORKSHOPIFY2014-15 Sconano to Updato FY2013.14 Smooth (2) As Summary for Curr w Ropon A G H I J K L 1.1 N Q I p- -- O 1 7 RATE SETTING ASSUMPTIONS 3 Planning Year Budgeted >3, 1 2 3 4 5 6 7 R 9 10 2014 -2015 2020 -2021 _ 2021 -2022 4 2013 -2014 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019.2020 2022 -2023 2023 -2024 163,357 - -- - -- 163,512 -- 16_3_,687 163,882 164,897 -- 165,932 166,987 1 168,062 169,162 - - 170,262 171,362 5 Service Data Assumptions (End of F.Y.) - - -(800) - _ 6 Adjustment to total RUE due to lower commercial accounts - (800) - - � - 7 New Connections (RUE) for the labeled F Y. _(80_0) 975 995 1,015 _ 1,035 1,055 _ 93_0 1,075 1,100 11100 1,100 _955 0.58% 0.61% 0.62% 0.64% 0.65% 0.65% e Growth Per Year 0.56% 0.60% 0.63% 0.64% 0.65% 9 f� 10 SEWER SERVICE CHAR GE DATA AND CALCULATIONS if Sewer Service Charge Rate - Debt Service - - - 416 491 12 Sewer Service Charge Rate - O &M 36_5 434. 473 I 47f I- U-2 485 503 456 463 13 Sewer Service Charge Rate - Capital 40 _ 26 _ 43 39 74 65 62 1 56 1 44 1 91 84 14 Total SSC Rate 405 442 477 512 547 547 547 S47 547 547 S47 1s Increase to Rate • $ 34 37 35 35 35 - - - - - - 1e Increase to Rate - % 9.16% 9.14% 7.92% 7.34% 6.84% 0.00% 0.00 %_ 0.00% 0.00% 0.00_% 0.00% 19 _ Total SSC Revenue 66,1S9,700 72,061,375 77,846,297 83,653,009 89,921,212 90,481,887 91,053,502 91,636,057 92,230,919 92,832,619 93,434,319 20 0.S0% 0.7S% 1.00% 1.25% 1.50% 2.00% 2.SO% 3.00% _ 3.50% Y 3.50% 3.50% z+ Interest Revenue Rate Assumption 22 23 Property Tax: Growth% Assumption 3.00% 24 0.00% 0.00% 1.00_% 1.50% 2.00% 2.50% 3.00% 3.00% 3.00% - _1.00% - 1.3.6,65.8_ 25 Growth S 138,025 _ _2.0_9,107 _282,992 _ _3.6_0,815 443,802 457,116 470,83_0 484,955 - _ 26 Tax Take or Repayment _ _ _ - _ 27 Property Tax - Total 13,665,816 13,665,816 _ 1_3,8_02,4_74 13,940,499 1.4,149,606 14,432,599 1_4,793,413 15,237,216 15,694,332 16,165,162 16,650,117 83.66 83.58 86.98 88.59 2e Property Tax Impact on RUE 84.32 85.06 85.81 90.66 92.78 94.94 97.16 2e 30 Connection Fee - Gravity Zone -. - - _ 5,987 6,167 6,343 6,517 6,688 6,856 7,021 7,183 7,343 7,500 7,654 3.28% 3.00% 2.85% 2.74% 2.51% 2.31% 2.23% 2.14% 2.05% 31 Percent increase from PY 2.62% 7,665 7,896 _ 8,344 8,778 9,197 9,401 9,60.2 9,799 32 Conn Fee - Pumped Zone 8,563 _2•_41% 3.28% 3.01% _8,121 2.85% 2.75% 2.51 % _8,989 M 33 Percent Increase from PY _ _ _ 2.62% 2.31% 2.22% 2.14% 2.05% 34 Percentage of Pumped Zone to Total Connections 33.00% 1 32.00% 1 32.00% _ 1 32.00% _ 32.00% 1 25,00% _2.40% 1 9.009i 1 9,00% 1 8.00% 8.00% 1 8.00% 35 OTHER 3s Retiree OPEB Annual ContrlbuGons 8,658,600 8,103,0_0t ,103,000 81103,000 8,103,000 1,528,368 8,103,000 2,117,1- 58,752,5_78 _ 3.2% 10,000,000 8,103,000 8,103,000 492,837 8,103,000 190,210 8,103,000 29,874 8,103,000 (175,725) 37 as Portion Allocated to PARS Trust_ _ Estimated PARS Trust Balance (6.25% Assumed Rate) S81arylnflationl+ mp +tmdbyROtaemMIA,...,ptimsbdowl Addigonal CCCERA payment towards UAAL ,904 _3,384,40,356,098 _3.9_,6.0.4,87,583,538 4.2_6.3 5,000,00,000,000 : 1,970,802 49,463,986 %* 3.9% _ _54,179,376 63,181,462 3.3% 10,000,000 67,653,943 72,084,412 76,621,429 81,223,561 4o 42 j33,890,780 9.8% 3.3% 3.4% 3,4% 3.3% 3.3% ,000 10,000,000 10,000,000 10,000,000 10,000,000 43 Total O &M Benefit Increase Per Year ( %) 10.35_ _ 3.28% 13.16% -__- -_ .0.60%- _ 0.81% 0.85% 6.87% 0.94% 0.94% - 19.S7% 2.99% _ M_.. 45 Total O &M Expense Change from prior year ( %) -- _239% 1.82% 16.19% 8.89% 3.90% 8.76% 1.03_% 2.67% 2.01% 2.87% 1.50% 3.00% 3.0D% 3.00% 3.00% - 3.00% 3.00% 47 Capital Project Inflation % 2.00% 3.00% 3.00% 3.OD% 49 W IDebt Coverage Ratio Debt Was Percent of Revenue _3.32 3.31 12.63 5.53 7.25 _ _ 7.24 3% 7.15 739 9.98 10.03 5% 5% 2% 3% 3% _7.61 3% 3% 3% 2% 2% 6/ REVENUE, EXPENSE AND FUND BALANCE e2 DEBT SERVICE FUND _BudQeted» 1 2 _3 4 5 6 7 8 9 l0 2014 -2015 2015 -2016 2016.2017 2017 -2018 2018 -2019 2019 -1020 1020 -2021 2021 -2022 2022 -2023 2023 -2024 63 __ 1013 -2014 5,588,816 5,546,218 2,077,785 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 3,593,500 54 TOTAL REVENUE: 5,588,816 5,546,218 2,077,78S 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 3,593,500 ss TOTAL EXPENSE: _ se Ending Fund Balance 67 •• • Budgeted» _1_ 2 3 4 6_ 7 8 9 10 2014 -2015 2020.2021 2021 -2022 2022 -1023 2023 -2024 s• TOTAL REVENUE: - - TOTAL EXPENSE: REVENUE MINUS EXPENSE: Ending Fund Balance 2013 -2014 2015 -2016 2016 -2017 2017 -2018 _5 2018 2019 2019 -2020 so 75,152,0_00 84,44_3,052 84,738,805 88,221,5_61 88,040,109 _96,007,450 95,753,915 96,925,801 99,505,457 101,151,293 103,340,766 106,576,843 98,259,310 100,709,080 et 77,824,952 96,741,461 99,250,186 101,058,523 103,758,659 105,839,718 97,902,400 100,715,130 62 2,672,952) 295,753) 181,452 253,535 184,340 255,271 92,770 (417,893) 737,126 356,930 6,050 _ 9,911,048 9,615,295 100.50,282 a. 9,796,747 10,2.34,622 10,_4.89,893 10,582,664 10,164,771 10,901,896 11,258,807 11,252,757 10.04% 10.13% 10,11% 10.00% 10.09% 10.00% 10.03% as Prudent Reserve 14.85% 11.26% 10.13% 10.13% -264 97 SEWER CONSTRUCTION s _BudQeted »_ 1 2 3 _4 _ S 6 7 8 9 10 2014 -2015 2015 -2016 2016 -1017 1 2017 -2018 2020 -2021 2021 -2022 2022 -2023 2013 -2014 2018 -2019 _ 2019 -2020 2023.2024 OTAL REVENUE: _ 25,266,588 28,935,400 22,912,272 24,889,000 30,240,597 27,667,860 29,164,430 35,214,361 32,273,639 33,720,462 34,955,600 35,723,650 34,371,865 32,167,537 33,905,311 33,307,410 43,621,597 45,943,078 k71RKEVENUE OTAL CAPITAL EXPENDITURES: 32,841,214 33,088,526 39,501,691 49,193,863 MINUSC_APITALEXPENDITURES: .(3,668,812) 1,976,728) 2,572,737 (3,109,209): 1,493,899 (768,050) 2,204,328 1,064,096 218,884 4,119,906 3,250,786) �74 BOND PROCEEDS: _ - _ - _ _ 1 2 75 End ing Fund Balance 37,199,415 1 35,222,687 37,795,424 34,686,215 36,180,113 35,412,064 37,616,391 38,680,487 1 38,899,371 43,019,277 39,768,491 OTOTAL FUND BALANCES Budgeted» _ 1 2 3 4 5 6 7 8 9 30 77 _ _ 2013 -2014 2014 -2015 2015 -2016 1016 -2017 2017 -2018 ?018 -2019 2019 -2020 2020 -2011 2021 -2022 2012 -2023 2023.2024 78 TOTAL FUNDS AVAILABLE _ 47,110,463 44,837,982 47,592,171 44,736,497 46,414,735 45,901,956 48,199,054 48,845,258 49,801267 54,278,083 51,021,248 79 FUNDS_ REQUIRED_ ro e+ ez e3 _ 10D %of Debt Service _ _ 5,546,218 2,077,785 3,782,051 3,809,926 3,603,238 3,600,701 , 3,607,578 3,597,111 3,593,499 3,593,500 3,590,000 32% of Next Year's O&M Expense 27,116,417 28,172,835 i 30,641,253 30,957,268 31,76_0,059 32,3_38,727 33,20_2,771 33,868,710 31,328,768 32,228,842 34,884,771 30% of Next Year's Capital Expenditures 7,466,700 8,300,358 9,682,092 10,116,139 10,717,095 9,650,261 9,852,364 9,926,558 11,850,507 14,758,159 10,224,355 TOTALFUNDSREQUIRED 40,129,336 38,550,978 44,105,396 44,883,333 46,080,392 45,589,690 46,662,713 47,392,378 46,772,774 50,580,501 48,699,126 e+ as M _ Funds Available Am ountAII- 01[Below)FundsRequired 1 6,981,1281 6,287,005 1 3,486,775 (146,836) 334,343 312,267 1,536,341 1,452,879 1 3,028,493 3,697,583 2,322,122 s7 GRAPHIC PRESENTATION OF e S REQUIRED AND FUNDS e9 90 91 Central Contra Costa Sanitary District Funds Available Compared to Funds Required by Year 92 93 $100.000,000 94 95 $90.000,000 97 $80,000.000 - 100 $70,000,000 - - - - -- 102 $60,000,000 - - - - -- - -- -- 103 104 107 `-° $50,000,000 $40,000,000 108 109 $30,000,000 110 111 $20,000,000 112 113 $10,000.000 114 115 "s 117 11a $0 I 2013. 2014 2014.2015 2015.2016 2016.2017 2017.2018 1 2018.2019 1 2019.2020 1 2020.2021 1 2021.2022 2022-2023 I 2023.2024 i�TOTAL FUNDS AVAILABLE 1 41,110.463 44,837,982 47,592.171 44.736,497 46,414,735 45,901,956 ! 48,199,054 48,845.258 49,801,267 54,278.083 51,021,248 TOTAL FUNDS REQUIRED I 40,129,336 38,550,978 1 44.105,396 44,883.333 46,080,392 45.589,690 46.662.713 47,392,378 46,772,174 j 50,580,501 I 48,699,126 119 Fiscal Year 120 121 122 -19- 014-2014 421 PM N- WCCOUNTING',GMTEMP1110 Year Plan ProlirctionM2014.2015 Prolocbons BINDER AND WORKSHOPIFY2014-15 Sconano to Updato FY2013.14 Smooth (2) As Summary for Curr w Ropon CENTRAL CONTRA COSTA SANITARY DISTRICT 10 -YEAR FINANCIAL PLANNING WORKSHEET SCENARIO 1B - UPDATED PY SCENARIO WITH 2014 KNOWN ASSUMPTIONS Fiscal Years 2013 -14 through 2023 -2024 $80,000,000 99 _ too $70,000,000 101 102 - - -- $60,000,000 - -- 103 -_- _ 104 - - t 1° $50,000,000 Los $40,000,000 �- ..� -- - -- -- -- -- - - 107 2 109 $30,000,000 r. $20,000,000 712 3 Planning Year Budgeted >> 1 2 Y - -3 4 6 7 8 11 10 4 2013 -2014 2014 -2015 2015 -2016 _ 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 2022 -2023 2023 -2024 s Service Data Assumptions (End of F.Y.) 163,357 163,512 163,687 163,882 164,897 165,932 166,987 168,062 169,162 170,262 171,362 e Adjustment to total RUE due to lower commercial accounts (800) (800) (800) - - - - - - 7 New Connections (RUE) for the labeled_F.Y.. _ _9_3_0 955 975 995 1,015 1,035 1,055 1,075 11100 1,100 1,10.0 a Growth Per Year 0.56% 0.58% 0.60% 0.61% 0.62% 0.63% 0.649i 0.64% 0.65% 0.65% 0.65% 9 1 Now" to SEWER SERVICE CHARGE DATA AND CALCULATIONS if Sewer Service Charge Rate - Debt Service - - - - - - - 12 Sewer Service Charge Rate - 0 &M 365 416 434 473 4 73 482 485 491 503 456 463 13 Sewer Service Charge Rate - Capital 40 23 44 _ 41 73 1 64 61 55 1 43 90 83 14 Total SSC Rate 405 439 478 514 546 546 546 546 546 546 546 Is Increase to Rate - S 34 34 39 36 32 - - - - te Increase to Rate - % 9.16% 8.40% 8.88% 7.53% 6.23% 0.00% 0.00% 0.00% 0.00% 0.00% 0,00% 19 Total SSC Revenue 66,159,700 71,572,270 78,009,497 83,979,779 89,756,822 90,316,472 1 90,887,042 91,468,532 92,062,307 92,662,907 93,263,507 zo 21 Interest Revenue Rate Assumption 0.50% 0.75% 1.00% 1.25% ].5D% 2,00% 2.50% 3.00% 3.50% 3.50% 3.50% zz 23 Property Tax: 24 Growth % Assumption 0.00% 0.00% 1.00% 1.00% 1.50% 2.00% 2.50% 3.00% 3.00% 3,00% 3.00% 2s Growth $ 136,658 138,025 209,107 2_82,992 360,815 443,802 457,116 470,830 484,955_ 2a Tax Take or Repayment - - - - - - - - _ 27 Property Tax - Total 13,665,816 13,665,816 13,802,474 13,940,499 14,149,606 1.4,432,599 14,793,413 15,237,216 15,694,332 16_,165,162 16,650,117 2e Property Tax impact on RUE 83.66 83.58 84.32 85.06 85.81 86.98 88.59 90.66 92.78 94.94 1 97.16 2e - 3o Connection Fee - Gravity Zone 5,987 6,167 6,343 6,517 6,688 6,856 7,021 7,183 7,343 7,500 7,654 31 Percent Increase from PY 3.28% 3.00% 2.85% 2.74% 2.62% 2.51% 2,41% 2.31% 2,23% 2.14% 2.05% 32 Conn Fee - Pumped Zone 7,665 7,896 8,121 8,344 8,563 8,778 8,989 9,197 9,401 9,602 9,79 9 33 Percent Increase from PY 1 3.28% 1 3.01% 2.85% 2.75% 1 2.62% 1 2.51% 1 2.40% 1 2.31% 2.22% 2.14% Z. _05% 34 Percentage of Pumped Zone to Total Connections 1 33.00% 1 32.00% 32.00% 32.00°/4 32.00% 1 25.00% 1 9.00% 1 9.00% 8.00% 8.00% _ 8.00% OTHER SCENARIO ASSUMPTIONS 3e Retiree OPEB Annual Contributions 8,658,600 1 8,103,000 8,103,000 8,103,000 8,103,000 8,103,000 8,103,000 8,103,000 8,103,000 8,_1.03,000 8,103,000 37 Portion Allocated to PARS Trust 3,492,904 3,384,400 2,356,098 1,970,802 1,528,368 1,117,159 712,327 492,837 190,210 29,874 (175,725 3e Estimated PARS Trust Balance (6.25% Assumed Rate_) 33,890,780 39,604,879 44,5_8_3,538 49,463,986 54,179,376 J3.3% _ 58,75_21578 _ __6.3,1.81,462 67,653,943 72,084,412 76,621,429 81,223,561 40 Salary Inflation (Imp- MbyReorementA++umpnonsb4- 9.8% 4.2% 6.3% 3.9% 3.2% 3.3% 3.4% 3.4% 3.3% 3.3" 42 Additional CCCERA payment towards UAAL_ 5,000,000 5_,000,000 5,000,000 10_,_000,000 1.0_,0_00,000 10,000,000 10_,_000,000 10,000,000 10,_000,000 _ 43 Total 0 &M Benefit Increase Per Year ( %) _. -_- 26.87% 10.35% 3.28% 13.16°/4 0.60% 0.8P% 0.85% 0.94% 0.94% 19.57% 2.9941 44 -- 4s Total 0 &M Expense Change from prior year ( %) 16.19% 8.88% 3.90% 8.76% 1.03% 2.59% 1.82% 2.67% 2.01% -7.50% 2.8791, 47 Capital Project inflation % 1.50% 2.00% 3.00% _ 3.00% 3.00% _ 3.00% 3.00% 3,00% 3.00% 3.00% 3.001,i 49 Debt Coverage Ratio 3.32 3.22 12.71 5.61 7.20 7.57 7.19 7.10 7.34 1 9.93 9.97 50 Debt as a Percent of Revenue 5% 5% 2% 3% 3% 3% 3% 3% 3% 2% 2% 211. 52 DEBT SERVICE FUND 8udpeted» 1 2 3 4 5 6 7 8 9 10 53 _ 1013 -2014 2014 -1015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -1020 2020 -2011 2021 -2021 2022 -2023 2023 -2024 54 TOTALREVENUE: 5,588,816 5,546,218 2,077,785 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 3,593,500 55 TOTAL EXPENSE: 5,588,816 5,546,218 2,077,785 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 3,593,500 56 Ending Fund Balance 57 58 rd >> 1 2 3 4 5 6 7 8 9 10 58 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -1021 2021 -2022 2022 -2013 _ 2023 -2024 so TOTAL REVENUE: _ 75,152,000 84,443,052 88,221,561 96,007,450 96,925,801 99,505,457 101,151,293 103,340,766 106,576,843 98,259,310 100,709,080 61 TOTAL EXPENSE: 77,824,952 84,738,805 88,040,109 95,753,915 96,741,461 99,250,186 101,058,523 103,758,659 105,839,718 97,902,400 100,715,130 s2 REVENUE MINUS EXPENSE: (2,672,952) (295,753) 181,452 253,535 184,340 255,271 92,770 (417,893) 737,126 356,910 (6,050; 63 64 Ending Fund Balance_ _ 9,911,048 1 9,615,295 9,796,747 10,050,282 10,234,622 10,489,893 10,582,_664 10,164,771 10,901,896 11,258,807 11,252,757 65 Prudent Reserve 14.85% 11.26% 10.04% 10.13% 10.13% 10.13% 10.11% 10.00% 10.09% 10,00% 10.03% ss 67 SEWER CONSTRUC FION FUND geted» ] 2 3 4 5 6 7 8 9 10 68 2014 -1015 2015 -2016 1016 -2017 2017 -1018 2018 -2019 2019 -2010 2020 -1021 2021 -2022 2022 -2013 2023 -2024 69 TOTAL REVENUE: 5,266,588 22,423,168 30,398,905 29,487,065 35,049,849 34,786,732 34,196,866 33,722,290 33,114,313 43,420,642 45,733,989 7o TOTAL CAPITAL EXPENDITURES: :72013-2014 8,935,400 24,889,000 27,667,860 32,273,639 33,720,462 35,723,650 32,167,537 32,841,214 33,088,526 39,501,691 49,193,863 71 REVENUE MINUS CAPITAL EXPENDITURES: 3,668,812) (2,465,832) 2,731,045 (2,786,574) 1,329,386 (936,918) 2,029,329 881,075 25,787 3,918,951 (3,459,874; 72 BOND PROCEEDS: _ _ _ _ _ _ 74 Ending Fund Balance 37,199,415 34,733,583 37,464,628 34,678,054 1 36,007,440 i 35,070,522 37,099,851 37,980,927 38,006,713 41,925,664 38,465,789 75 76 f0l AL FUND BALANCES Budgeted » 1 2 3 4 5 6 7 8 9 10 77 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 2022 -2023 2023 -2024 78 TOTAL FUNDS AVAILABLE 47,110,463 44,348,878 47,261,375 44,728,336 46,242,062 45,560,415 47,682,515 48,145,697 48,908,609 53,184,470 49,718,546 79 FUNDS REQUIRED eo 100% of Debt Service 5,546,218 2,077,785 3,782,051 _3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 3,593,500 3,590,000 at 32% of Next Year's O &M Expense _27,116,417 28,172,835 30,641,253 30,957,268 31,760,059 32,338,727 33,202,771 33,868,710 31,328,768 32,228,842 34,884,771 az 30% of Next Year's Capital Expenditures 7,466,700 8,300,358 9,682,092 10,116,139 10,717,095 9,650,261 9,852,364 9,926,558 11,550,507 14,758,159 10,224,355 83 TOTAL FUNDS REQUIRED 40,129,336 38,550,978 44,105,396 44,883,333 1 46,080,392 45,589,690 46,662,713 47,392,378 46,772,774 50,580,501 48,699,126 ea as Funds Available Amount Above /(Below) Funds Required 1 6,981,128 5,797,900 3,155,979 (154,997) 161,670 (29,275) 1,019,801 753,319 2,135,835 2,603,970 1 1,019,421 es a7 GRAPHIC PRESENTATION OF • 88 _ so Central Contra Costa Sanitary District 91 ___ Funds Available Compared to Funds Required by Year sz - - $100,000,000 95 96 $90,000,000 97 $80,000,000 99 _ too $70,000,000 101 102 - - -- $60,000,000 - -- 103 -_- _ 104 - - 1° $50,000,000 Los $40,000,000 �- ..� -- - -- -- -- -- - - 107 foe 109 $30,000,000 'to $20,000,000 712 113 $10,000,000 114 115 116 '$0 2013.2014 2014 -2015 2015.2016 2016 -2017 2017 -2018 I 2018.2019 2019.2020 2020 -2021 2021 -2022 2022.2023 2023.2024 177 TOTAL FUNDS AVAILABLE I= ' 47,110,463 44,348,878 I 47,261,375 44,728,336 I f I I 118 TOTAL FUNDS REQUIRED 40,129,336 38,550,978 44,105,396 44,883,333 46,080,392 45,589,690 46,662,713 47,392,378 48,772,774 50,580,501 48,699,126 i 119 1,n Fiscal Year -20- 2/14/2014 4:24 PM WACCOUNTING\GMTEMP1p0 -Year Plan Pmlectl4ns1201442015 Projeclions\BINDER AND WORKSHOP\FY2014 -15 Scemno 18 Update FY2013 -14 534 yr I As summary for Curt yr Report CENTRAL CONTRA COSTA SANITARY DISTRICT 10 -YEAR FINANCIAL PLANNING WORKSHEET SCENARIO 1C - UPDATED PY SCENARIO WITH 2014 KNOWN ASSUMPTIONS -21- 2/14,20144 27 PM N:IAC000NTING'GMTEMP1\10.Yw Ptah P1o1eo1nns12014 2015 P,o1w.- BINDER AND W ORKSHOMFV2014.15 Scenario 1C Update FV2013-14 534 yr CPI AS Summary for Curr yr Roporl A O H Finest I Yearg 921313 J K L O P 4L N 1 2 SUMPTIONS 3 Planning Year Budgeted 21:1 1 1 2 3 4 1 5 6 1 7 8 9 10 2013 -2014 1 2014 -2015 2015 -2016 _ 2017 -2018 2018 -2019 4 _ 2016 -2017 2019 -2020 2020.2021 2021 -2022 2022 -2023 2023 -2024 s Service Data Assumptions (End of F.Y.) 163,3_5.7_ 163,512 163,687 163882 16_4,89.7 165,93_2 168,062 169,162 170,262 171,362 _(800) _166,987 - - e Adjustment to total RUE due to lower commercial accounts - (800) (800) - - _930 1,055 1,075 1,100 7 New Connections (RUE) for the labeled F.Y.. 455 _ 975 _ 995 1,015 _ 1,035 1,100 1,100 0.63% 0.64% 0.64% 0.65% 0.65% 0.65% a Growth Per Year 0.56% 0.58% 0.60% 0.61% 0.62% 9 to SEWER SERVICE CHARGE DATA AND CALCULATIONS 11 Sewer Service Charge Rate - Debt Service_ 1z Sewer Service Charge Rate _ 0 8,M _ 365 416: 434 1 473 473 _ _4_82 _ 485 491 503 456 463 40 44 1 41 105 111 176 188 13 Sewer Service Charge Rate - Capital 23 1 73 80 94 405 439 478 514 S46 562 579 596 614 632 6Sl 14 Total SSC Rate 34 34 39 36 32 16 17 17 18 18 19 1s Increase to Rate S is Increase to Rate - % 9.16% 8.40% 8.88% 753% 1 t 1 3.02% 1 2.94% 1 3.02% 1 2.93% 3.01% 19 Total SSC Revenue _ _6.23% _ _ _2.93% 66,159,700 71,572,270 78,009,497 83,979,779 1 89,756,822 1 92,963,109 1 96,380,215 1 99,844,771 1 103,527,942 1 107,258,163 111,198,797 20 21 Interest Revenue Rate Assumption 0.50% 0.75% 1.00% 1.25% 1.509A 2.00% 2.50% 3.00% 3.50% 3.50% 340% zz J• 23 Property Tax: _ 24 Growth % Assumption 0.00% 3.00% 0.0_0% 1,00% 1_.00% 2.00% 2.50% 3.00% 3.00% 3.00% .- _ 136,658 138,025 _1.50% 209,10_7 2s Growth $ 2_82,992 360,815 443,802 457,116 470,830 484,95_5 - - - - _ _ _ _ 26 Tax Take or Repayment 27 Property Tax - Total 13,665,816 13,665,816 13,802,474 13,9_40,499 14,149,606 14,4.32,5991_4,793,413 15,237,216 15,694,332 16,165,162 16,650,117 Property Tax Impact on RUE 83.66 83.58 84.32 85.06 85.81 90.66 92.78 94.94 97.16 28 86.98 88.59 zo 30 Connection Fee - Gravity Zone S,987 6,167 6,343 6,5_17 6,6_88 _ __6,85_6_ 7,021 7,183 7,343 7,500 7,654 Percent Increase from PY 3.28% 3.00% 2.8S% 2.41% 2.31% 2.23% 2.14% 2.05% 31 2.6.2_% 2.51% 7,665 7,896 8,121 _2.74% 8,344 9,197 9,40_1 9,602 9,799 32 Conn Fee - Pumped Zone _ _8,778 _ 8,989 3.28% 3.01% 2.85% 2.75% _8_563_ 2.62% 2.31% 2.22% 33 Percent Increase from PY _ 2.40% 33.00% 32.00% 32.00% 32.00% 32.00% _2.51% _ 25.00% 34 Percentage of Pumped Zone to Total Connections 9,00% 9.00% 8,00% 8,00% 1 8,00% 35 OTHLR SCENARIO ASSUMPTIONS 36 Retiree OPEB Annual Contributions 8,658,600 1 8,103,000 8,103,000 8,103,000 8,103,000 8,103,000 8,103,000 8,103,000 8,103,000 8,103,000 8,103,000 37 Portion Allocated to PARS Trust 3,492,904 3,384,400 2,356,098 1,970,802 1,528,368 1,117,169 712,327 492,837 190,210 29,874 (175,725) 39 Estimated PARS Trust Balance (6.25% Assumed Rate) _39,604,879 _44,58_3,538 _ 33,890_,780 49,463,986 _ 54,17_9,376 5.8,752,578 _6.3,181,462 67,653,943 72,084_,412 76,621,429 81,223,561 40 4z 43 Salary Inflation limpattedUraenramim Assumptlansbabw) Additional CCCERA_paymenttowards UAAL_ Total O &M 8eneRt Increase Per Year (%) 9.8% 5,000,000 26.87% 4.2% 5,000,000_ 10.35% 3.9% 3.3% 10,0_00,000 _ 10,00.0,000 13.16 %: 0.60% �6.3% 3.2% 3.3% 3.4% 3.4% 3.3% 3.3% 5,000,000 10_,00.0,000 0.81% 3010001000 10,000,000 1010001000 3.28% 0.85% 0.94% 0.94% - 19.57% 2.99% 16.19% 8188% 8.76% 1.03% 45 Total O &M Expense Change from prior year ( %) 3.90% 2.59% 1.82% 2.67% 2.01% -7.S0%I 2.87% 3.00% 3.00% 3.00% 3.00% 3,00% 3.00% 3.00% 47 Capital Project inflation % _ 1.50% 2.00•1A 3_.00%! 3.00% 12,71 8.30 8.73 9A9 10.69 1_4.27 15.40 49 so Debt Coverage Ratio Debt as a Percent of Revenue ___3_.32 S% 3.22 5% 5,61 7.20 2% 3% 3% 3% 21, 2% 2% 2% 2% M REVENUE, EXPENSE AND FUND BALANCE 0 DE13T SERVICE FUND Budgeted» 1 2 3 4 S 6 7 8 9 10 S3 2013 -2014 5,588,816 2014 -2015 5,546,218 1 1015 -2016 2,077,785 1 1016 -2017 3,782,051 2017 -2018 3,809,926 2018 -2019 3,603,238 2019 -2020 3,600,701 _ 2020.2021 3,607,578 2021 -2022 3,597,111 2021 -2023 3,593,499 1 2023 -2024 3,593,500 54 TOTAL REVENUE:_ _ - 55 TOTAL EXPENSE: 5,588,816 5,546,218 2,077,785 1 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 3,593,500 " Ending Fund Balance 67 Sa RUNNING EXPENSE FUND 1 8 9 2014 -2015 2018 -2019 2019 -2020 2010 2021 2011 -1022 2022 -2023 2023 -1024 59 TOTAL REVENUE: 2015 -1016 2016 -2017 2017 -2018 so 77f7,824,9S2 84,443,052 88,221,561 96,007,450 96,925,801 99,505,457 101,151,293 103,340,766 106,576,843 98,259,310 100,709,080 TOTAL EXPENSE: 84,738,805 88,040,109 99,250,186 103,758659 105,839,718 97,902,400 100,715,130 e1 95,753,915 96,741,461 101,058,523 62 REVENUE MINUS EXPENSE: 295,753) 181,452 253,535 184,340 255,271 92,770 417,893 737,126 356,910 6,050 63 64 Ending Fund Balance 9,911,048 9,615,295 9,796,747 10,050,282 10,234,622 10,489,893 10,582,664 10,164,771 10,901,896 11,258,807 11,252,757 as Prudent Reserve 14.8S%l 11.26% 10.04% 10.13%1 10.13% 10.13% 10.11% 10.00% 10,09%1 20.00%1 10,03% ss 67 SEWER CONSTRUCTION s Budgeted» 1 2 3 _4 S 6 7 8 9 10 1014 -2015 2015 -2016 2018 -2019 2019 -2020 2020-2021 2021 -2022 2022 -2023 ea TOTAL REVENUE:_ 2013 -2014 1016 -2017 2017 -2018 2023 -2024 69 25,266,588 22,423,168 30,398,905 29,487,0_65 35,049,849 37,433,368 39,756,205 42,344,708 45,168,942 59,026,804 65,226,400 27,667,860 35,723,650 32,167,537 32,841,214 33,088,526 39,501,691 7o TOTAL CAPITAL EXPENDITURES: 28,935,400 24,889,000 32,273,639 33,720,462 49,193,863 (3,668,812) (2,465,832) 2,731,045 (2,786,574) 1,329,386 1,709,719 7,588,668 9,503,494 12,080,416 191525113 16,032,537 71 REVENUE MINUS CAPITAL EXPENDITURES: 72 BOND PROCEEDS: _ _ _ 36,007,440 _ _ _ - 74 Ending Fund Balance I 37,199,415 1 34,733,583 1 37,464,628 1 34,678,054 37,717,159 1 45,305,827 1 54,809,320 t 66,889,736 1 86,414,849 1 102,447,386 76 7• Budgeted» 1 2 3 4 5 6 7 8 9 10 77 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2011 2021 -2022 2022 -2023 2023 -2014 7a TOTAL FUNDS AVAILABLE 47,210,463 44,348,878 47,261,375 44,728,336 46,242,062 48,207,052 1 55,888,490 64,974,091 77,791,632 97,673,655 113,700,143 79 FUNDS REQUIRED •0100%of at Debt Service 5,546,218 2,077,785 3,782,051 _3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 3,593,500 3,590,000 3L% of Next Year's 0 &M Expense 27,11-61- 7,116,417 28,172,835 _30,641,253 3_0,957,268 _31,760,059 32,338,727 33,202,771 33,868,710 31,328,768 32,228,842 34,884,771 e2 30%of Next Year's Capital Expenditures 7,466,700 8,300,358 9,682,092 , 10,116,139 10,717,095 9,650,261 9,852,364 9,926,558 11,850,507 14,758,159 10,224,355 63 TOTALFUNDSREQUIRED - 40,129,336 38,550,978 44,105,396 44,883,333 46,080,392 45,589,690 46,662,713 47,392,378 46,772,774 50,580,501 48,699,126 Funds Available Amount Above /(Below) Funds Required 6,981,128 5,797,900 3,155,979 (154,997) 161,670 2,617,362 9,225,777 17,581,712 31,018,858 1 47,093,155 65,001,017 as es 97 GRAPHIC PRESENTATION OF e S REQUIRED AND FUNDS 80 - -- ---` -- -- - -- - - - 69 91 Central Contra Costa Sanitary District Funds Available Compared to Funds Required by Year _ ez 93 $120,000,000 94 n 97 $100,000,000 - - - - 98 89 100 101 $80,000,000 102 103 tl1 104 105 108 to $60,000.00 O 107 _ - - - - - - - - - - - - - 109 $40,000,000 109 no 111 112 $20,000,000 113 115 116 117 114 $0 20132014 20142015 20154016 20162017 20172018 20182019 20194020 20202021 I 20214022 20222023 I 2023.2024 TOTAL FUNDS AVAILABLE 47,110,463 44,348,878 47,261,375 41,728.336 46,242.0112 48.207,052 55,888,490 64,974,091 77,791,632 97,673,655 113,700,143 TOTAL FUNDS REQUIRED 40,129,336 38,550,978 44,105,396 44.883,333 46,080,392 45,589,690 46,662,713 47,392,378 46,772,774 j 50.580,501 48,899,126 119 Fiscal Year 120 1z1 121 -21- 2/14,20144 27 PM N:IAC000NTING'GMTEMP1\10.Yw Ptah P1o1eo1nns12014 2015 P,o1w.- BINDER AND W ORKSHOMFV2014.15 Scenario 1C Update FV2013-14 534 yr CPI AS Summary for Curr yr Roporl CENTRAL CONTRA COSTA SANITARY DISTRICT 10 -YEAR FINANCIAL PLANNING WORKSHEET SCENARIO 2 - SAME AS SCENARIO 1 BUT 20% CUT TO CAPITAL IN YEAR 1 - SPREAD OVER 9 YEARS -22- 2142014 4 30 PM N ^ACCOUNTINGGGMTEMP1110 -Year Plan Proloelnnsl2014-2015 Proacions BINDER AND VJORKSHOPFY2014.15 Seensro 2 less 20 %C16 1 A us Summary for Curr yr Report A 6 H , J K L M N O P O 1 ASSUMPTIONS 2 3 Plan_n_in_gYear tOW eted» 1 2 3 4 5 6 7 r 9 10 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 4 2018 -2019 2019 -2020 2020 -2021 2021 - 202"2. 2022 -2023 2023 -2024 s Service Data Assumptions (End of F.Y.) 163,357 163,512 (800) 163,687 (800) 163,882 (800) 164,897 _ 165,932 _ 166,987_ 168,062 169,162. - 170,262 171,362 . e Adjustment to total RUE due to lower commercial a- _ - 7 New Connections (RUE) for the labeled F.Y.. 1,1_00 1,100 _ 930 95_5_ 97S 995 1,015 1,035 1,075 1,100 0.58% 0.60% 0.61% 0.62% 0.63% _ __1,055 0.64911 0.64% 0.65% e 9 Growth Per Year � ' 0.56% 0.65% 0.65% f0 SEWER SERVICE CHARGE DATA AND CALCULATIONS 11 Sewer Service Charge Rate - Debt Service - - _ _ - - 12 Sewer Service Charge Rate - O &n4 504 463 36S 416 434 473 473 482 486 490 4S5 40 44 85 13 Sewer Service Charge Rate - Capital 21 35 27 S8 66 62 58 93 405 437 469 500 531 548 548 548 S48 548 548 14 Total SSC Rate 1s Increase to Rate - $ 34 32 32 31 31 17 - - - 16 Increase to Rate - % - 9.16% 7.90% 7.32% 6.61% _ 6.20% 3.20% 0.00% 0.00% 0.00% 0.00% 0.00% 1 19 Total SSC Revenue 66,159,700 71,246,201 76,S40,699 81,692,392 87,290,975 90,647,302 91,219,962 91,803,582 92,399,532 93,002,332 93,60S,132 20 21 Interest Revenue Rate Assumption 0.50% 0.7S% 1.00% 1.25% 1.50% 2.00% 2.50% 3.00% 34056 3.50% 3.50% zz 23 Property Tax: 24 Growth% Assum ption 0.00% 0.00% 1.00% 1.00_% 1.50% 2.50% 3.00% 3.00% 3.00% 3.00% - - 1_36,658 138,025 z5 Growth S - - _2.00% 282,992 _ 3.60,815 443,802 457,116 470,830 484,955 _ _ _ _209,107 _ _ _ - 28 Tax Take or Repayment _ _ 27 Property Tax - Total _ 13,6.65,816 13,665,816 13,8_02,474 13_,9.40,499_ _ 14,149,606 14,432,599 15,237,216 15,694,332 16,165,162 16,650,117 83.66 83.58 86.98 _14,793,4_13 8839 90.66 92.78 94,94 97.16 28 Property Tax Impact on RUE 84.32 1 85.06 85.81 za 3o Connection Fee - Gravity Zone 5,987 6,167 6,343 6,517 6,688 6,856 7,021 7,183 7,343 7,500 7,654 31 Percent Increase from PY 3.28% 3.00% 2.85% 2.749 2.62% 2.51% 2.41% 2.31% 2.23% 2.14% 2.05% __7,665 7,896 8,121 8,344 8,_563 8,778_ 81989 9,197 9,401 9,602 9,799 32 Conn Fee - _Pumped Zone _ v- 3.28% 2.62% 2.51% _ 2.40% 2.31% 2.22% 2.14% 2.05% 33 Percent Increase from PY 1 3.01% 2.85% 2.7S% 34 Percentage of Pumped Zone to Total Connections 33.00% 32.00% 32,00% 32.00% 32.00% 25.00% 9.00% 9.00% 8,00% 8.00% 8.00% 35 OTHER SCENARIO ASSUMPTIONS 38 37 38 Retiree 0PE8AnnualContributlons Portion Allocated to PARS Trust Estimated PARS Trust Balance (6.25% Assumed Rate) 8,658,600 8,103,000 3,492,904 3,384,400 33,890,780 39,604,879 8,103,000 8,103,000 8,103,000 8,103,000 1,117,169 8,103,000 712,327 8,103,000 492,837 8,103,000 190,210 8,103,000 29,874 8,103,000 (175,725) 2,356,098 44,5_83,538 _ 1,9_70,802 4_9,463,986 1,528,368 54,179,376 58,752,S78 63,181,462 67,653,943 72,084,412 76,621,429 81,223,561 40 Salary Inflation pma_d dbyxeuranenlAsw pt. b." 9.8% 4.2% _ 3.9% 3.3% 3.2% 3.3% 3.4% 3.4% 3.3% 3.3% 42 Additional CCCERA payment towards UAAL_ 5,000,000 5,000,000 _6.3% 5,000,000 10,0.00,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 - otal O &M Benefit Increase-Per Year ( %) -- -- - -- - 26.87% - 10.35% 3.28% -- 13.16% -0.60% 0.81% 0.85% 0.94% 0.94% - 19.57% 2.99% 8.76% - otal O &M Expense Change from prior year ( %) 8.88% 3.90% 1.03% - -- - - 16.19% 2.59% 1.82% 2.67% 2.01% 7.50% 2.87% lso9bn apital Project Inflation_ % ebt Coverage Ratio ebt as a Percent of Revenue 2.00 %ttt1_ 3.36 52 3.00% 6.87 3% ISO% 3A_0% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.32 10.99 5.13 7.55 7.48 7.13 7.19 9.65 9,84 S%l 2% 3% 3% 3% 3% 3% 2% 2% s1 REVENUE, EXPENSE AND FUND s2 DEBT SERVICE FUND Budgeted» 1 1 3 4 6 7 8 9 10 2014 -2015 2015 -2016 1016 -2017 53 _ 2013.2014 2017 -2018 __S 1018 -2019 2019 -2020 2020.2021 2021 -1022 2022 -2023 2023 -2024 s+ TOTAL REVENUE. 5,588,816 5,546,218 2,077,785 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 3,593,500 5,588,816 5,546,218 2,077,785 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 3,593,500 ss TOTAIEXPENSE: _ - - 58 Ending Fund Balance s7 se RUNNING EXPENSE FUND Budgeted» I 2 3 4 5 6 7 8 9 10 59 TOTALREVENUE: 2013.2014 2016 -2017 2017 -2018 2022 -2023 1014 -2015 2015 -2016 2018 -2019 2019.2020 2020 -2021 2021 -2021 2023 -2024 6o 7S,152,000 84,443,05_2 88,221,561 96,007,450_9_6_,925,801 99,505,457 101,317,753 103,178,235 106,745,593 98,095,642 100,709,396 77,824,952 95,753,915 ' 96,741,461 99,250,186 101,058,523 103,758,659 105,839,718 97,902,400 100,715,130 61 TOTAL EXPENSE: 1 (2,672,952) (295,753) 181,452 2S3,S35 184,340 255,271 259,230 580,424) 905,875 193,242 5,734) 62 REVENUE MINUS EXPENSE: 67 9,615,295 64 Ending Fund Balance 91911,048 9,796,747_ ' 10,050,282 10,234,622 10,489,893 10,168,699 11,074,575 11,267,817 11,262,082 14.85% 10.04 %1 10.13% 13 10.% 10.13% _10,749,123 20.12%1 10.16%1 10,1096 10.26%1 10.03% 6s Prudent Reserve 11.26% 6s 87 SEWER CONSTRUCTION 9 BudQeled 2014 -2015 23,159,897 2015 -2016 2016 -2017 _27,897,377 26,668,108 2017 -2018 33,221,877 2018 -2019 35,336,000 2019 -2020 35,278,068 2020 2021 34,874,4_63 2021 -2022 3_3,079,026 20 ?2 -2023 42,381,225 2023.2024 43,745,172 u 2013 -2014 _25,266,588 89 TOT_ALREVENUE: TOTALC_ ITALEXPENDITURES: 28,935,400 5,77S,503 - 34,732,076 603,923 37,466,183 1 36,795359 1,517,291) 35,948,892 1 34,081,182 8,300,042 45,243,410 7o 28,935,400 (3,668,812 - 20,609,270 28,497,896 7,288,107 (1,829,788) - _ 33,241,848 19,971 1 36,862,260 33,132,563 1,741,900 _ 37,690,792 1 33,826,451 747,424 _ 36,943,368 40,686,742 3,058,430 48,301,840 71 _ REVENUE MINUS CAPITAL EXPENDITURES: 72 BOND PROCEEDS: 7+ 76 1 Ending Fund Balance 37,199,415 31,423,912 38,712,018 36,882,231 7• TOTAL FUND BAtANCES Budgeted» 1 2 3 4 5 6 7 8 9 10 77 _ _ 2013 -2014 2014 -2015 1015- 2016 2016 -2017 1017 -2018 2018 -2019 2019 -2020 2020-2021 2021 -1022 2012 -2023 2 ?3 -?024 47,110,463 41,039,207 48,508,765 46,932,512 47,096,882 47,956,076 46,698,015 47,859,491 48,017,942 56,511,227 59,563,922 7e TOTAL FUNDS AVAILABLE 79 FUNDS REQUIRED eo -100%of Debt Service - 5,546,21_8 _2,077,785 3,782,051 3,809,926 3,600,701 3,607,578 3,593,500 3,590,000 3,603,238 3,597,111 3,593,499 et 32 %of Next Year's O&M Expense 27,116,417 28,172,835 30,641,253 30,957,268 31,760,059 32,338,727 33,202,771 33,868,710 31,328,768 32,228,842 34,884,771 10,419,623 10,224,355 82 s3 30% of Next Year's Capital Expenditures - TOTAL FUNDS REQUIRED - 8,680,620 6,182,781 8,549,369 9,972,554 11,038,608 9,939,769 10,147,935 12,206,023 10,452,373 41,343,256 36,433,401 42,972,673 44,739,748 45,782,920 46,978,036 46,750,118 47,613,756 45,146,622 48,028,364 48,927,144 84 as s es Funds Available Amount Above /(Below) Funds Required 5,767,208 1 4,605,806 5,536,092 2,192,764 1 1,313,962 978,040 (52,103) 245,736 2,871,321 1 8,482,862 10,636,777 e7 GRAPHIC PRESENTATION OF • S REQUIRED AND FUNDS 89 90 91 Central Contra Costa Sanitary District Funds Available Compared to Funds Required by Year 92 93 $100,000,000 94 9S $90,000,000 -_ 97 98 -- $80,000,000 - - 99 too $70,000,000 - - 101 102 $60,000,000 - 103 104 107 10 $50,000,000 $40,000,000 10, 109 $30,000,000 110 't t $20,000,000 112 113 114 00 $10,000,0 115 118 1t7 116 20134014 20142015 2015.2016 2016.2017 1 20174019 2018.2019 2019.2020 20202021 20212022 1 20224023 2023.2024 �TOTALFUNDSAVAIUIOLE 47,710,463 41,039,207 48,508,765 46,932,512 47,096,862 47,956.076 46.698,015 I 47,859,491 48,017,942 56,511,227 59,563,922 -TOTAL FUNDS REQUIRED 41,343,256 36,433.401 1 42,972,673 44,739.748 45,782,920 1 46,978,036 46,750.118 47,613.756 45,146,622 48,028.364 48,927,144 1119 Fiscal Year 120 121 122 123 I -22- 2142014 4 30 PM N ^ACCOUNTINGGGMTEMP1110 -Year Plan Proloelnnsl2014-2015 Proacions BINDER AND VJORKSHOPFY2014.15 Seensro 2 less 20 %C16 1 A us Summary for Curr yr Report CENTRAL CONTRA COSTA SANITARY DISTRICT 10 -YEAR FINANCIAL PLANNING WORKSHEET SCENARIO 3 - SAME AS SCENARIO 1 BUT NO RATE INCREASE IN YEAR 1 AND MADE UP IN YEAR 2 -23- 2/14/2014 4:32 PM N:VWCCOUNTINGIGMTEMP1110 -Y"r Plan Prolocl- 2014.2015 Profeclions'81NDER AND WORKSHOPIFY2014.15 Scenarn 3 No SSC 1A ds Summary for Curr yr Ropon A O N I J hrowti, -21712.1-2024 At N O P . 1 Z RATE SETTING ASSUMPTIONS Ir lanning Yea_ r _. _ _ Budgeted» 1 2014 -2015 2 2015 -2016 3 2016.2017 4 5 2017 -2018 2018 -2019 6 7 8 9 10 2023 -2024 2013 -2014 2019 -2020 2020 -2021 2021 -2022 2022 -2023 _ _ _ _ rvice Data Assumptions (End of F.Y.) 1.63,357 163,512 163,687 - -(800) 163,882 164,897 -- -- -- 165,932 166,987 168,062 169,162 170,262 171,362 - (800) - - JeGrowth justment to total RUE due to lower commercial accounts (80_0) - - - �- - - - - -- - - - _ w Connections (RUE) for the labeled F.Y.. Per Year _ 1,015 0.62% 1,0.35 0.63% _ _9_3_0 0.56% 955 975 995 - 0.61% 1,055 1,075 1,100 1,100 1,100 0.58% 0.60% 0.64% 0.64% 0.65% 0.65% 0.65% a - 191111111117, ; to SEWER SERVICE CHARGE DATA AND CALCULATIONS i l 12 Sewer Service Charge Rate - Debt Service Sewer Service Charge Rate - 0 &M 473 482 - 463 416 503 365_ _ 434 1 473 i 486 490 4S6 13 Sewer Service Charge Rate - Capital 40 (11) 62 S71 91 82 78 741 61 108 101 14 Total SSC Rate 405 405 496 530 564 564 564 564 564 564 564 15 Increase to Rate - $ 34 - 91 34 34 - - - - _ _ 16 19 20 Increase to Rate - % _ Total SSC Revenue 9.16% 0.00% 22.47% 6.85% 6.42% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 66,159,700 66,029,088 80,947,093 86,593,935 92,715,838 93,293,936 93,883,318 94,483,978 95,097,328 95,717,728 _ 96,338,128 21 Interest Revenue Rate Assumption 0.50% 0.7S% 1.00% 1.2S% 1.50% 2.00% 2.50% 3.00% 3.S0% 3.50% 3.50% zz 23 Property Tax: 24 Growth %Assum_ption 0.00% 0.00_%- 1.00_%_ 1100% 1.50% 2_.00% 2.50% 3.00% 3.00% 3.00% 3.0_0% _ 25 Growth _$ 136,65_8 138,02_5 209,107 282_,992 443,802 457,116 470,830 484,955 Tax Take-or Repayment _ _ _ _ _360,815 - _ _ - - 26 _ 27 2e zo Property Tax - Total 13,665,816 1_3,665,816 13,802,474 1.3,940,499 14,149,606 _1_4,432,599 86.98 15,237,216 15,694,332 16,165,162 16,650,117 Property Tax Impact on RUE 83.66 83.58 84.32 85.06 fli i _14_,7_93,413 88.59 90.66 92.78 94.94 97.16 30 Connection Fee - Gravity Zone 5,987 6,1.67 6,343 6,517 6,688 6,856 7,021 7,183 7,343 7,500 7,654 31 Percent Increase from PY 3.28% 3.0_0% 2.8S% 2.74_% 2.62% 2.51% 2.41% 2.3_1% 2.23% 2.14% 2.05% 32 Conn Fee - Pumped Zone 7,665 _ 7,896 8,121 _8,344 8,563 8,778 8,989 9,197 9,401 9,60.2 9,799 3.28% i 3.01% 2.85% 2.75% 1 2.62_% 1 2.51% 2.40% 2.05% 33 Percent increase from PY 2.31% 2.22% 2.14% 34 Percentage of Pumped Zone to Total Connections 33.00% 32.00% 32.00% 32.00% 32.00% 25.00% 9.00% 9.00% 1 8,00% 8.00% 8.00% 36 • ASSUMPI)CINS 36 37 36 Retiree OPEB Annual contributions Portion Allocated to PARS Trust Estimated PARS Trust Balance (6.2S% Assumed Rate) 8,658,600 1 8,103,000 3,384,400 1 8,10 0001 8,103,000 1 1,970,802 8,103,000 8,303,000 8,103,000 8,103,000 8,103,000 8,103,000 8,103,000 3,492,904 33,_890,780 2,356,098 1,528,368 1,117,169 712,327 492,837 190,210 29,874 (175,725) 39,604,879 44,583,538 49,463,986 54,179,376 58,752,578 63,181,462 67,653,943 72,_084,412 81,223,561 4o 4z 43 44 Salary infation arnw it dlryn„..•�,rmAswmpnonswlowl Additlonal CCCERA payment towards UAAL Total O &M Bene(It Increase Per Year ( °;) 9.8% 5,000t�0 4.2% 5,000,000 10.35% 6.3% 3.9% 3.3% 3.2% 3.3% 3.4% 3.4% 176,1621,429 3.3% 3.3% 5,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 - - 26.87% 3.28% 13.16% -0.60% 0.81% 0.85% 0.94% 0.94% - 19.57% 59% 45 Total O &M Expense Change from prior year ( %) 16.19%, 8.88% 3.90% 8.76% 1.03% 2.59%1 1.82%1 2.67%1 2.01% .7.011111-- 7.50% 2.87% 3.00% 3.00% 3.00% 3.00% 3.0D% 3,00_% 3.00% 3.00% 3.009 47 �DebFciverage ital Project Inflation % 1.50°6: 2.00•,6 4a so Ratio Debt as a Percent of Revenue 3.32 2.22 S% _ 14.09 2% 6.30 7.98 8A3 8.06 8.011 8.30 10.93 11.02 S% 3% 3% 3% 3% 3% 2% 2% 2% 61 REVENUE, EXPENSE AND FUND BALANCE 62 e= eudpeted» 1 2 3 4 S 6 7 8 9 10 63 _ 2013 -1014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 1018 -201-9 2019 -2020 1020 2021 2021 -2021 2022 -2023 2023 -2024 64 TOTAL REVENUE: 5,588,816 5,546,218 2,077,785 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 3,593,500 6s TOTAL EXPENSE: _ Ending Fund Balance 5,588,816 5,546,218 1 2,077,785 1 3,782,051 3,809,926 1 3,603,238 1 3,600,7011 3,607,578 3,597,111 3,593,499 1 3,593,500 s6 _ - 67 E&ME •• RUNNING EXPENSE FUND Budgeted» 1 1 3 4 5 6 7 8 9 10 2013.2014 2014.1015 1015 -2016 1016 -1017 2017 -2018 2018 -2019 2019 -2020 2020.2021 2021 -2022 2021 -2023 2023 -2014 s• _ TOTAL REVENUE: TOTAL EXPENSE: REVENUE MINUS EXPENSE: so 75,152,000 84,443,052 96,007,450 95,753,915 96,925,801 96,741,461 99,505,457 99,250,186 101,317,753 101,058,523 103,178,235 103,758,659 106,576,981 105,839,718 98,259,453 97,902,400 100,709,228 100,715,130 a1 77,824,952 84,738,805 _8_8,221,561 88,040,109 e2 2,672,952 295,753) 181,452 253,535 184,340 255,271 259,230 580,424 737,263 357,053 5,902 63 e4 6s ee Ending Fund Balance Prudent Reserve 9,615,295 9,796,747 10,050,282 10,234,622 10,489,893 10,749,123 10,168,699 10,905,963 11,263,015 11,257,113 9,911,048 14.85% 11.26% 10.04% 10.13% 10.13% 10.13% 10.11% 10.16% 10.10% 10.00% 10.03% 87 SEWER CONSTRUCTION BrAipeted» 1 2 3 4 5 6 7 8 9 10 1014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2013 -2014 2020.2021 2021 -2022 2022 -2023 2023 -2024 s4 TOTAL REVENUE:_ TOTAL CAPITAL EXPENDITURES: REVENUE MINUS CAPITAL EXPENDITURES: 25,266,588 16,879,985 33,281,070 32,067,958 38,007,663 37,821,752 35,723,650 37,174,500 32,167,537 37,171,971 36,581,235 47,028,706 49,488,135 7o 7t 28,935,400 24,889,000 27,667,860 32,273,639 33,720,462 32,841,214 33,088,526 39,501691 49,193,863 (3,668,812) (8,009,015 5,613,210 _ (205,681 4,287,201 2,098,102 5,006,963 4,330,756 3,492,709 7,527,015 294,272 _ 72 BOND PROCEEDS: 74 7s Ending Fund Balance 37,199,415 1 29,190,400 34,803,610 34,597,929 38,885,130 40,983,232 45,990,195 50,320,951 53,813,660 61,340,675 61,634,947 7e TOTAL FUND BALANCES 0,71 peted» 1 2 3 4 5 6 7 8 9 10 T7 2013-2014 2014 -2015 2015 -2016 2016 -2017 1 2017 -1018 2018 4019 2019 -2020 1020 -2021 2021 -2022 2022 -2023 2023 -2024 76 TOTAL FUNDS AVAILABLE 47,110,463 38,805,695 44,600,357 44,648,211 49,119,752 51,473,125 56,739,318 60,489,651 64,719,622 72,603,690 72,892,060 7e FUNDS REQUIRED so e132 ez es 100% of Debt Service _ %of Next Year's0 &M Expense 30% of Next Year's Capital Expenditures TOTAL FUNDS REQUIRED 2,077,785 28,172,835 8,300,358 5,546,218 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 31,328,768 11,850,507 3,593,500 3,5901000 34,884,771 10,224,355 27,1_16,417 30,641,253 30,95 31,760,059 _ 32,338,727 33,202,771 33,868,710 32,228,842 7,466,700 9,682,092 _7,268 10,116,139 10,717,095 9,650,261 9,852,364 9,926,558. 14,758,159 40,129,336 38,550,978 44,105,396 44,883,333 46,080,392 45,589,690 46,662,713 47,392,378 46,772,774 50,580,501 22,023,189 48,699,126 24,192,934 e5 N [Funds AVallabl6 Amount Above /(Below) Funds Required 6,981,2 81 254,718 494,961 (235,122) 3,039,360 5,883,435 10,076,605 13,097,272 17,946,848 e7 GRAPHIC PRESENTATION OF • e AND FUNDS 89 90 91 Central Contra Costa Sanitary District Funds Available Compared to Funds Required by Year 92 93 $100.000.000 94 95 $90,000.000 96 91 98 $80,000,000 99 100 $70,000,000 - 101 102 $60,000,000 - 103 2 104 2 $50,000,000 tos 107 p $40,000,000 -- - 1048 100 $30,000,000 110 M $20,000,000 112 113 $10,000,000 114 115 116 117 118 $0 TOTAL FUNDS AVAILABLE TOTAL FUNDS nEOU1RED 2013.2014 I 2014-201S 20152016 2016 2017 2017.2018 2018.2019 1 2019 -2020 1 2020.2021 1 2021.2029 1 2022.2023 1 2023.2024 47,110,463 38,805,695 44,600,357 44,648,211 49,119,752 51,473,125 ! 56,739,318 60,489,651 1 64,719,622 72,603,690 72,892.060 •10,129,336 I 38,550,978 44,105,396 44,883.333 46.080,392 45,589.690 •16,662,713 47.392,378 , 46,772,77,4 50.580,501 48,699,126 119 Fiscal Year ,20 121 122 -23- 2/14/2014 4:32 PM N:VWCCOUNTINGIGMTEMP1110 -Y"r Plan Prolocl- 2014.2015 Profeclions'81NDER AND WORKSHOPIFY2014.15 Scenarn 3 No SSC 1A ds Summary for Curr yr Ropon CENTRAL CONTRA COSTA SANITARY DISTRICT 10 -YEAR FINANCIAL PLANNING WORKSHEET SCENARIO 4 - SAME AS SCENARIO 1 BUT WITH 10% ANNUAL CUT TO OM EXPENSE • Fiscal Y arc 9017_14 ro 8 2023-20R4 I I -� -24- 2114120144.54 PM N.W000UNTING�GMTEMPI410 -Year Plan Pmlednns.2014-2015 Projeclions.BINDER AND W0RKSH0PFY2014.15 Scenaro 4 10 °, O &M Cul ids Summary for Curr yr Report 2 RATE SETTING ASSUMPTIONS 3 4 Planning Year _ Budgeted_ >a 1 2 3 2014 -2015 1 2015 -2016 2016 -2017 4 _ 5 6 1 2017 -2018 1 2018 -2019 1 2019 -2020 7 8 9 10 2013 -2014 2020.2021 2021 -2022 2022 -2023 2023 -2024 s Service Data Assumptions (End of F.Y.) _ 1.63_,357 163,5121 163,687 163,882 164,897 165,932 166,987 168,062 169,162 17_0,262 171_,3.6_2_ - - _ a Adjustment to total RUE due to lower commercial accounts -_ (800) _ (SOO) (800) - - _ 7 a 9 New Connections (RUE) for the labeled F.Y.. - Growth Per Year 930 O.S6% 955_ _ _97_5_ 0.58% 0.60% 99.5 0.61% 1,015 0.62 %� 1,035 1,055 0.63% 0.64% 1,075 1,100 1,100 1,100 0.64% 0.65% 0.65% 0.65% 10 SEWER SERVICE CHARGE DATA AND CALCULATIONS 11 Sewer Service Charge Rate - Debt Service 12 Sewer Service Charge Rate - O &M _ 365 391 411 449 449 460 463 477 428 435 45 31 54 13 Sewer Service Charge Rate - Capital 40 40 _456 6S 61 58 44 93 _ 86 405 431 456 480 503 S21 521 S21 521 521 521 14 Total SSC Rate 1s Increase to Rate - $ 34 26 25 24 23 18 - - - 1a Increase to Rate - % 9.16% 6.42% 5.80% 5.26% 4.79% 3.S8% 0.00% 0.00% 1 0.00% 0.00% 0.00% 19 Total SSC Revenue 66,159,700 701267,992 1 74,419,101 78,424,696 82,688,061 86,181,102 86,725,547 87,280,412 1 87,847,000 88,420,100 88,993,200 20 21 Interest Revenue Rate Assumption 0.50% 0.75% 1.00% 1.25% 1.50% 2.00% 2.50% 3.00% 3.50% 3.SO% 3.50% 2z 23 Property Tax: 24 Growth % Assumption _ _0.00_% 0.00% 1.00% 1.00% 2.50% 3.00% 3.00% 3.00% 3.00% - 13_8,025 _3.50% 209,107 _2_.OD% _ 282,992 360,815 443,802 457,116 470,830 484,955 2s Growth $ _ _ _. .36,8 165 _ _ _ _ - 26 Tax Take or Repayment _ _ _ 27 Property Tax - Total _ 13,665,816 13,665,816 13,802,47_4 13,940,499 14,149,606 14,4_32,599 14,793,413 15,237,216 15,694,332 16,_165,162 16,650,1 17 83.66 83.58 85.06 85.81 86.98 88.59 90.66 92.78 94.94 97.16 2a Property Tax Impact on RUE 8 4,32 30 Connection Fee - Gravity Zone _ 5,987 6,167 6,343 6,517 _6,688 6,856 7,021 7,183 7,343 7,500 7,654 31 Percent Increase from PY 3.28% 3.00% 2.85% 2.74% 2.62% 2.52% 2.41% 2.31% 2.23% 2.14% 2.OS% 32 IConntee - Pumped Zone _ _ 7,6_6_5 7,896 8,12_1 8,344 8,563 8,778 8,989 9,197 9,401 9,602 9,799 33 JPercent Increase from PY 3.28% 1 3.01% 1 2.85% 2.75% 1 2.62% 2.51% 2.40% 2.31% _ 1 2.22% 1 2.14% 2.05% 34 IPercentage of Pumped Zone to Total Connections 33.00% 1 32,00% 1 32.00% 32.00% 1 32.00% 25.00% 1 9. 1 9,00% 1 8,00% 1 8.00% 8.00% 35 OTHER SCENARIO ASSUMPTIONS 36 37 3e . Retiree Me Annual ContrlbuHons_ Portion Allocated to PARS Trust Estimated PARS Trust Balance -- (6.25 %- A ssumed Rate) 8,658,600 8,103,000 3,384,400 39,604,87- 9 8,103,000 2,356,098 44,58,5- 8 I 8,103,000 1,970,802 49,46396 - 8,103,000 8,103,000 1,528,368 1,117,169 54,179,376 58,752,578 8,103,000 712,327 63,181,462 11 1 000 492,837 67,653,943 811031 000 190,210 72,084,412 81103,000 29,874 76,62_ 1,42 9 8,103,000 (175,725) 82,223,S62 3,492,904 33_,89- 0 ,7- 0 9.8% _ 4.2% _ 6.3% _ 3.9% 10,000,000 3.16 3.3% 3.4% 3.4% o 42 43 Salary m Additional CCCERA payment towards UAAL Tota10&M Benefit Increase Per Year - __. _ 3.3% _ 3.2% 10,000,000 10,000,000 -0.60% 0.81 %41 3.3% 3.396 510001000 510001000 10.35% 5,000,000 3.28% 10,000,000 1010001000 10,000,000 26.87% .- 0 4% 094% % N 46 Total O &M Expense Change from prior year ( %) 0.. 2.50 %� -_ -- - 16.19% 3.20% 3.87%1 8.98% 1.77% 2.59% 1.95% -8.09% 2.88% 1.50% 3.32 2.00%1 3.64 3.00%1 1.2.79 3.00%1 S.19 3.00% 3.00% 3.00% 3.00% 3.00% a Capital Protect In(latlon % 3.00% 3.00%, 6_.40 7.571 3% 3% 49 so Debt Coverage Ratio Debt as a Percent of Revenue 7.211 7.2. 10.05 10.12 S% S% 2% 3% 3% 3% 1% 3% 2% 61 REVENUE, EXPENSE AND FUND BALANCE s2 DEBT a Budgeted» 1 2 3 4 5 6 7 8 9 10 53 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 1 2019 -2020 2020 -2021 2021 -2022 1022 -2023 2023.2024 54 TOTAL REVENUE: 5,588,816 5,546,218 2,077,785 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 3,593,500 5,588,816 5,546,218 2,077,785 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 3,593,500 ss TOTAL EXPENSE: sa Ending fund Balance s7 s9 RUNNING EXPENSE • _ TOTAL REVENUE:- Budgeted» 1 2 2015 -2016 1 3 r 2016 -2017 4_ 6 2019 -1020 7 2020 -2021 8 2021 -1022 9 2022 -2023 10 2023 2024 2013 -2014 _ 2014 -2015 _S__ 2027 -2018 2018 -2019 eo 7_5,152,000 79,53_1,045 83,582,808 9_1,163,115 92,021,948 _94,208,297 95,949,058 97,569,269 101,058,909 92,339,185 94,713,268 61 TOTAL EXPENSE: REVENUE MINUS EXPENSE: _ JEnding Fund e_alance 77,824,952 80,314,131 83,418,285 90,910,975 91,771,506 94,067,611 95,735,325 98,210,455 300,128,939 92,031,591 94,680,292 az (2,672,952) 783,086) 164,524 252,140 250,442 140,687 213,733 641,186 929,969 307,594 32,976 63 9,795,069 9,935,755 10,149,489 9,508,303 10,438,272 10,745,866 10,778,842 er 9,911,048 9,127,963 9,292,486 7 9_,544,626 db as Prudent Reserve 15.67% 11.88% 10.04% 10.13% 10.15% 10.23% 10.12% 10,14% 10.04% 10.12% 10.12% M SEWER CONSTRUCTION • Budgeted» 1 2 3 4 S 6 7 8 9 10 ee _ _ _ 2013 -2014 2014.2015 2015 -2016 2016.2017 2017 -2018 2018 -2019 2019 -2020 2020 -1021 2021 -2022 2022.2013 _ __ 2023 -2024 e9 7o 71 TOTAL REVENUE: TOTAL CAPITAL EXPENDITURES: REVENUE MINUS CAPITAL EXPENDITURES: 25,266,588 28,935,400 25,194,759 30,589,821 27,890,248 32,273,639 31,946,928 33,720,462 34,917,402 34,156,702 34,175,462 33,241,151 43,892,444 46,225,604 49,193,863 24,889,000 27,667,860 35,723,650 32,167,537 32,841,214 33,088,526 39,501,691 (3,668,812 305,759 2,921,961 (4,383,391 1,773,534) 806,248) 1,989,165 1,334,248 152,625 4,390,752 2,968,259 M BOND PROCEEDS_ _ 74 75 Ending Fund Balance 37,199,415 37,505,174 40,427,135 36,043,744 34,270,210 33,463,962 35,453,128 36,787,375 36,940,000 41,330,753 38,362,493 7a • BALANCES _Budgeted» __ n _ 1013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2010 2020 -2021 2021 -2022 2022 -2023 2023 -2024 76 TOTAL FUNDS_ AVAILABLE 47,110,463 46,633,137 49,719,621 45,588,370 44,065,279 43,399,718 45,602,616 46,295,678 47,378,272 52,076 619 49,141,335 79 FUNDS REQUIRED so e1 e2 e3 10D%of Debt Service _ 5,546,218 2,077,785 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 3,593,500 3,590,000 32% of Next_ Year'sO &M Expense 25,700,522 26,693,851 29,091,512 _29,366,882 30,101,635 30,635,304 _ 31,427,345 32,041,261 29,450,109 30,297,693 33,002,498 30% of Next Year'sCapitalExpenditures 7,466,700 8,300,358 9,682,092 10,116,139 10,717,095 9,650,261 9,852,364 9,926,558 11,850,507 14,758159 10,224,355 TOTAL FUNDS REQUIRED 38,713,440 37,071,994 42,555,655 ' 43,292,947 44,421,968 43,886,266 44,887,288 45,564,929 44,894,115 48,649,352 46,816,853 as as e>s _ FunlfsAvallibleAmountAbove /l8elow) fund :Required 8,397,023 9,561,143 7,163,966 2,295,423 (356,689) (486,549) 715,328 730,748 2,484,356 3,427,266 2,324,482 M GRAPHIC PRESENTATION OF • • AND FUNDS ae 89 91 Central Contra Costa Sanitary District 92 Funds Available Compared to Funds Required by Year $100,000,000 93 94 95 96 97 I $90,000.000 - 9e 99 $80,000,000 _ 100 t01 $70,000,000 102 103 104 105 $60,000,000 - $50.000,000 _ toe $40,000,000 .� 109 _... 110 $30,000.000 111 112 $20,000.000 113 114 116 $10,000,000 11e 117 114 119 120 121 20134014 2014 -2015 20152016 20162017 - 2017.2018 1 20182015+ 2019.2020 2020.2021 2021.2022 1 20222023 20232024 I= TOTAL FUNDS AVAILABLE 47,110,463 I 46.633.137 49,719.621 45,588,370 44,065,279 43,399,718 45,602,616 46,295.678 47,378,272 52,076,619 .19,141,335 TOTAL FUNDS REQUIRED 38,713,440 37.071,994 42,555.655 43,292.947 44,421,968 43.886.266 44,887.288 45,564,929 44,894,115 48,6,19,3 52 46,816,853 Fiscal Year 122 123 124 -24- 2114120144.54 PM N.W000UNTING�GMTEMPI410 -Year Plan Pmlednns.2014-2015 Projeclions.BINDER AND W0RKSH0PFY2014.15 Scenaro 4 10 °, O &M Cul ids Summary for Curr yr Report CENTRAL CONTRA COSTA SANITARY DISTRICT 10 -YEAR FINANCIAL PLANNING WORKSHEET SCENARIO 5 - SAME AS SCENARIO 1 WITH 10 °6 ANNUAL OM CUTS ROLLED INTO CIP EXP. Fiscal Years 2013.14 1hre,ehp9-4.2n?4 1 ' Y 2 RATE SETTING ASSUMPTIONS 3 .1a_n_n_ Ing Year Budgeted» 1 2 3 4 S I 6 7 8 9 1p 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2020 -2021 2021 -2022 2022 -2023 2023 -2024 4 _ __ 2013 -2014 _ 2018-2019 2019 -2020 163,3_5.7 163,512 163,687_ 163,882 164,89.7 165,932 1.66,9_87 168,062 169,16_2 17_0,262 171,362 5 Service Data Assumptions (End Of F.Y.) (800) (SOD) - - - 8 Adjustment to total RUE due to lower commercial accounts - (800) - - 93_0 99S 1,055 1,075 1,100 11100 11100 7 New Connections (RUE) for the labeled F.Y.. _ 955 975 1,0_15 1,035 0.56% 0.60% 0.61% 0.62% 0.63% 0.64% 0.64% 0.65% 0.65% 0.65% e Growth Per Year 0.58% a to SEWER SERVICE CHARGE DATA AND CALCULATIONS 11 Sewer Service Charge Rate - Debt Service___ _ - - 12 13 Sewer Service Charge Rate - 0_ &M Sewer Service Charge Rate - Capital 365 1 391 40 i 48 411 1 449 63 59 449 4561 460 463 1 477 428 43_S 92 85 1 81 78 1 64 113 106 14 Total SSC Rate 405 439 474 508 S41 541 541 541 541 541 541 1s Increase to Rate - $ 34 34 3S 34 33 - - - - - 16 Increase to Rate - % _ 9.16% 8.40% 7.97% 7.17% 6.50% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 19 Total SSC Revenue 66,159,700 1 71,572,270 1 77,356,698 1 82,999,470 1 88,934,873 1 89,489,398 1 90,054,743 1 90,630,908 1 91,219,246 1 92,814,3461 92,409,446 20 21 interest Revenue Rate Assumption 0.50% 0.75% 1.00% 1.25% 1.50% 2.00% 2.50% 3.OD% 350% 3.50% 3.501116 22 23 Property Tax: 24 Growth % Assumption 0.00% 0.00% 1.00% 1.009i 1.50% 2.00% 2.50% 3.00% 3.00% 3.00% 3.00% 25 Growth 5 _ _ - - _ 136,658 1_3_8,025 209,107 28_2,992 443,802 457,116 470,830 484,955 _ _360,81.5 26 Tax Take or Repayment 27 Property Tax - Total 13,665,816 1 13,665,816 13,802,474 13,_940,499 14,1.49,606 14,432,599 14,793,413 15,237,216 15,694,332 16,165,162 16,650,117 84.32 85.06 85.81 86.98 88.59 29 Property Tax Impact on RUE 83.66 83.58 90.66 92.78 94.94 97.16 29 - - 6,343 6,537 6,8_56 7,0_21 7,183 7,343 7,500 7,65.4 30 Connection Fee - Gravity Zone 5,987. 6,_1.67 2.8S% 2.74% _6,688 2.62% 2.51% 2.41% 31 Percent Increase from PY 3.28% 3.00% _ 2.31% 2.23% 2.14% 2.05% 32 Conn Fee •Pumped Zone_ 7,665 7,896 8,121 _8,344 8,563 8,778 8,989 9,197 9,401 9,602 9,799 2.85% 2.7S% 2.62% 2.51% 2.40% 2.31% 2.22% 2.14% 2.05% 33 Percent increase from PY _ _ 3.28% 3.01% 34 Percentage of Pumped Zone to Total Connections 33.00% 32.00% 32.00% 32.00% 32.00% 25.00% 9.00% 9.00% 8.00% 8.00% 8.00% - 3s 37 3e Reti ree OPE B Annual Contributions Portion Allocated to PARS Trust _ Estimated PARS Trust Balance (6.25 %Assumed Rate_) 8,658,600 8,103,000 3,492,904 3,384,400 33,890,780 39,604,879 8,103,000 8,103,000 _ 8,10_3,00_0 8,103,000 2,356,098 1,970,802 _ 1,528,368 _1,117,169 44,583,538 49,463,986 _ 54,179,376; 58,752,578 -3.2% 8,103,000 8,103,000 81103,000 8,103,000 811031000 712,327 492,837 190,210 29,874 (175,725 6_3,181,462 67,653,943 72,084,412 -76,621,- 29 8_1,223,561 3.3% 3.4% 3.4% 3.3% 40 42 Salary in nation lrmo,re4dtynen.me�re, mvrb�,ne,o.l_ Additional CCCERA payment towards UAAL 9.8_% _ 4.2% _6.3% 3.9 %_ 3.3% 5,00_0,000 10,000,000 1_0,000,000 5,000,000 5,000,000 1_0,000,000 1_0,000,000 10,000,000 _3.3% 43 Total O &M Benefit Increase Per Year ( %) 26.87% - 10.35% - - -- _10,000,000 3.28 %, 13.16% -0.60% 0.81% - - -- 0.94% 0.94% •19.57% 2.99% _ 0.85% 44 - 45 Total 0 &M Expense Change from prior year ( %) 16.19% 3.2096 3.87% 8.98% _ 0.95% 250% 1.77% 259% 1.95% -8.09% 2,88% 1.50% 2.0096 3.00% 3.00% 3.00_% 3.00% 3.00% 3.00% 3.00% 3.0076 3.OD% 47 Capital Project Inflation % 49 50 Debt Coverage Ratio Otebt as a Percent of Revenue 3.32 4.12 14.23 6,41 8.05 8.52 -3% _8.16 - 3% 8.131 8.39 11.01 11.09 5% S% 2% 3% 3% 3% 3% 2% 2% s1 REVENUE, EXPENSE AND FUND BALANCE 5z DEBT SERVICE FUND Btnlgeted>a 1 ? _3 4 5 6 7 8 9 10 TOTALREVENUE: TOTAL EXPENSE Ending Fund Balance 2013 -2014 2014 -1015 2015 -2016 2016 -2017 2017 -2018 _ 2018 -2019 2019 -2010 2020 -2021 2021 -2022 2022 -2023 2023 -2024 s4 5,588,816 5,546,218 2,077,785 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 3,593,500 5s 5,588,816 5,546,218 2,077,785 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 3,593,500 so - _ 57 s• RUNNING EXPENSE FUND Budgeted »_ __ 1 _ _ 1 9 10 18 2018 -2019 2019.2020 TOTAL REVENUE: 70TAL ExPENSE: 13 -1014 2014 -2015 2015 -2016 2020.2021 2021 -2012 1022 -2013 2023 -2024 eo s1 7_5,152,000 77,824,952 79,531,045 80,314131 83,582,808 83,418,285 1,948 =��2027-20'442 1,506 94,208,297 95,949,058 97,569,269 101,058,909 100,128,939 92,339,185 94,713,268 94,067,611 95,735,325 98,210,455 92,031,591 94,680,292 62 REVENUE MINUS EXPENSE: 2,672,952) 783,086 164,524 0,442 140,687 213,733 641,186 929,969 307,594 32 976 63 64 Ending Fund Balance 9,911,048 9,127,963 9,292,486 9,544,626 10,149,489 9,508,303 10,438,272 9,795,069 9,935,755 10,745,866 10,778,842 ss Prudent Reserve 15.67% 11.88% 10.04 %� 10.13% 10.15% 10.23% 10,12% 10.14% 10.04% 10.12% 10.12% eM M7 SEWER CONSTRUCTION a Oudgeted» 1 2 3 4 5 6 7 9 10 2014 -2015 2015 -2016 2016 -2017 REVENUE: CAPITAL EXPENDITURES: FR-EVENUE MINUS CAPITAL EXPENDITURES: PROCEEDS: g Fund Balance 1013 -2014 2017 -2018 2018 -2019 2019 -1020 2020 -2021 _8 2021 -2022 2022 -2013 2023 -2024 25,266,588 28,935,400 27,902,319 29,313,674 34977,880 33,980,397 32,289,684 37,116,579 39,765,292 39,922,477 39,238,044 37,490,735 39,3S7,050 38,389,419 38,496,934 38799,305 49,205,750 45,372,501 51,594,132 55,228,701 38,690,418 40,906,225 3,668,812) (1,411,354) 2,688,195 (3,136,182) 1,074,874 (983,748) 1,747,309 967,631 302,371) 3,833,250 3,634,569 - _ _ 7s 37,199,415 35,788,061 38,476,256 35,340,074 36,414,947 35,431,199 37,178,509 38,146,140 37,843,769 41,677,018 38,042,449 7a TOTAL FUND BALANCES Budgeted» 1 2 3 4 5 6 7 8 9 10 n TOTAL FUNDS AVAILABLE 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 1 2018 -2019 2019 -2020 2020 2021 2021 -2022 2022 -2023 2023 -2024 78 47,110,463 44,916,023 47,768,742 1 44,884,700 1 46,210,016 45,366,954 47,327,997 47,654,443 48,282,040 52,422,885 48,821,291 79 FUNDS REQUIRED ao a1 b2 63 100% of Debt service _ _ 32% of Next Year's O &M Expense 30% of Next Year's capital Expenditures TOTAL FUNDS REQUIRED 2,077,785 3,782,051 4 3,809,926 1 3,603,238 _29,09_1,512 29_,366,882 30,101,635 11,134,97411,607,125 12,271,867 3,6_07,578 31,427,345 11,516,826 3,593,499 3,593,500 _ 3,590,000 _33,002,498 11,988,985 5,546,218 25,700,522 8,794,102 3,600,701 3,597,111 32,041,261 11,639,791 26,693,8_51 9,686,905 30,635,304_ 11,247,220 29,450,109 30,297,693 16,568,610 13,611,750 40,040,842 38,458,541 44,008,537 44,783,934 45,976,741 45,483,226 46,551,749 47,278,163 46,655,358 1 50,459,804 1 48,581,484 e4 as 86 Funds Available Amount Above /(Below) Funds Required 7,069,621 6,457,482 3,760,20SI 100,766 1 233,275 1 (116,271) 776,248 376,280 1,626,682 1,963,081 239,807 87 GRAPHIC PRESENTATION OF a S REQUIRED . • FUNDS 89 90 Of Central Contra Costa Sanitary District Funds Available Compared to Funds Required by Year 92 93 $100,000,000 94 95 $90.000,000 -- 96 91 99 $80,000,000 -- 99 100 $70,000,000 -- - - -. 101 102 $60,000,000 - 103 p 104 f0 $50,000.000 -- _ 105 107 0 $40,000,000 _... 108 199 $30,000.000 no 111 $20,000,000 11z 113 $10,000,000 114 115 116 117 118 $0 20132014 20142015 ! 20152016 201 &2017 2017.2018 1 2018.2019 2019.2020 2020.2021 2021.2022 1 2022 -2023 2023.2024 TOTAL FUNDS AVAILABLE 47,110.463 44,916,023 47,768,742 44,884,700 48,210,016 1 45,366,954 •17,327,997 47,654,443 48,282,040 I 52,422,8&5 48,821,291 TOTAL FUNDS REQUIRED 40,040.842 38,458,541 1 44,008,537 44,783,934 45.976.741 45.483.226 46.551,749 47,278.163 46,655,358 50,459,804 48.581,484 f19 Fiscal Year 120 121 122 1 l -25- 2/14/2014 4 55 PM N.WCCOUNT94G1GMTEMP1\10-Year Plan Prolect-2014-2015 Prolect- %BINDER AND wORKSHOP�FY2014.15 Scenario 5 10 °. O &M Cut nto CIP ds Summary for Curr yr Ro9on CENTRAL CONTRA COSTA SANITARY DISTRICT 10 -YEAR FINANCIAL PLANNING WORKSHEET SCENARIO 6 - SAME AS SCENARIO 1 WITH NO ADDITIONAL DISCRETIONARY UAAL PAYMENTS -26- 21142014 4 -.38 PM N �ACCOUNTINGIGMTEMP1110 -Year Plan Prolecuons12014 -2015 Prolocuons0NDER AND WORKSHOP1FY2014-15 Scenano 6 No Addl UAAL.As Summary for Curr yr Repon A 6 I H I I J K L M I N O P O 1 2 ASSUMPTIONS a Planning Year Budgeted» 1 2014 -2015 2 3 4 2015 -2016 2016 -2017 1 2017 -2018 _ S 2018 -2019 6 7 8 9 10 4 2013 -2014 2019 -2020 2020 -2021 2021 -2022 2022 -2023 2023 -2024 s Service Data Assumptions (End of F.Y.) 163,357 163,512 (800) 163,687 (800) 163,882 (800) 164,897 165,932 166,987 168,062 169,162 170,262 171_,362 - 11300 6 Adjustment to total RUE due to lower commercial accounts - - - - 7 New Connections (RUE) for the labeled F.Y.. 930 955 975 995 1,015 1,035 11055 1,075 1,100 1,100 a Growth Per Year 0,56% 0.58% 0.60% 0.61% 0.62% 0.63% 0.64% 0.64% 0.65% 0.65% 0.65% e to SEWER SERVICE CHARGE DATA AND CALCULATIONS - 365 40 - 445 1190 66 it Sewer Service Charge Rate - Debt Service - - - - 12 Sewer Service Charge Rate - O &M 387 411 428 431 449 465 468 482 13 Sewer Service Charge Rate - Capital 39 36 40 58 62 68 62 70 65 405 426 447 468 489 507 517 527 538 547 556 14 Total SSC Rate 1s Increase to Rate -$ 34 21 21 21 21 18 10 10 11 9 9 1e Increase to Rate - % 9.16% 5.19% 4.93% 4.70% 4.49% 3.68% 1.97% 1.93% 2.09% 1.67% 1.65% 19 Total SSC Revenue 66,159,700 69,452,818 72,950,303 76,464,079 80,386,604 83,865,295 86,059,708 88,285,561 90,713,409 92,832,619 94,971,630 nterest Revenue Rate Assumption 0.50% 0.75% 1.0D% 1.25% 150% 2.00% 2.S0% 3.00% 350% 350% 3.50% N21 Property Tax: 24 Growth % Assumption 0.00% 0.00% 1.00% 1.00% 1.50% 2.00% 2.50% 3.00% 3.00% 3.00% 3.00% 2s Growth $ - - 136,658 138,025 209,107 282,992 360,815 443,802 457,116 470,830 484,955 2e Tax Take or Repayment - - - - - - - - - - - 27 Property Tax - Total 13,665,816 13,665,816 13,802,474 13,940,499 14,149,606 14,432,599 14,793,413 15,237,216 15,694,332 1 16,165,162 16,650,117 2a Property Tax Impact on RUE 83.66 83.58 84.32 85.06 85.81 86.98 88.59 90.66 92.78 94.94 97.16 ze ao lConnection Fee - Gravity Zone 5,987 6,167 6,343 6,517 6,688 6,856 7,021 7,183 7,343 7,500 7,654 31 Percent Increase from PY 3.28% 3.00% 2.85% 2.74% 2.62% 2.51% 2.41% 2.31% 2.23% 2.14% 2.05% 32 Conn Fee- Pumped Zone 7,665 7,896 8,121 8,344 8,563 8,778 8,989 9,197 9,401 9,602 9,799 33 Percent Increase from PY 3.28% 3.01% 2.85% 2.75% 1 2.62% 1 2.51% 1 2.40% 1 2.31% 2.22% 2.14% 2.05% a4 Percentage of Pumped Zone to Total Connections 1 33.00% 32.00% 32.00% 32.00% 1 32.00% 1 25.00% 9.00% 1 9.00% 1 8.00% 8.00% 1 8.00% as OTHER SCENARIO ASSUMPTIONS sa Retiree OPES Annual Contributions 8,658,600 8,103,000 8,103,000 8,103,000 8,103,000 8,103,000 81103,000 8,103,000 8,103,000 8,103,000 8,103,000 97 Portion Allocated to PARS Trust 3,492,904 3,384,400 2,356,098 1,970,802 1,528,368 1,117,169 712,327 492,837 190,210 29,874 (175,725) ae Estimated PARS Trust Balance (6.25% Assumed Rate) 33,890,780 39,604,879 44,583,538 49, 463, 986 54 ,179,376 58,752,578 63,181,462 67,653,943 72,084,412 76,621,429 81,223,561 4o Salary Inflation (x,*wdbvmur"wtA%umptambelowi 9.8% 4.2% 6.3% 3.9% 3.3% 3.2% 3.3% 3.4% 3.4% 3.3% 3.3% 42 Additional CCCERA payment towards UAAL 51000,000 - - - - - - - 43 Total O &M Benefit Increase Per Year ( %) 26,87% -2.32% 4.78% 2.37% 1.24% 2.98% 1.22% 3.09% 3.07% 3.03% 3.02% M 4s Total 0 &M Expense Change from prior year ( %) 16.19%1 2.91% 4.60% 3.70% 2.01% 3.71% 2.06% 3.73% 2.99% 2.90% 2.89% 47 Capital Project Inflation % 1.50% 2.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 49 Debt Coverage Ratio 3.32 3.5S 12.02 5.62 6.55 7.49 7.54 7.72 8.30 8.79 9.18 so Debt as a Percent of Revenue I S% 5% 2% 3% 3% 3% 3% 3% 3% 2% 2% 61 REVENUE, EXPENSE AND FUND 52 DEBT SERVICE FUND Budgeted» I 2 3 4 5 6 7 8 9 10 2013 -2014 2014 -2015 2015 -1016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 2022 -2023 2023 -2024 VENUE: 5,588,816 5,546,218 2,077,785 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 3,593,500 PENSE: F---d 5,588,816 5,546,218 2,077,785 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 3,593,500 Balance 0 56 RUNNING EXPENSE FUND Budgeted» 1 Z 3 4 5 6 7 8 9 10 59 1013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -1019 2019 -2020 2020 -1011 2021 -2011 2021 -2023 2023 -2024 so TOTAL REVENUE: 75,152,000 79,015,595 83,817,702 87,304,661 88,784,460 92,258,835 94,041,492 97,987,908 99,837,399 103,449,018 106,122,961 e1 TOTAL EXPENSE: 77,824,952 80,091,170 83,776,415 86,878,911 88,626,988 91,915,025 93,811,864 97,314,168 100,222,160 103,129,760 106,113,431 e2 REVENUE MINUS EXPENSE: (2,672,952) (1,075,575) 41,287 425,750 157,472 343,810 229,628 673,740 (384,761) 319,257 9,529 63 8,835,474 8,876,761 04 Ending Fund Balance 9,911,048 9,302,511 9,459,984 9,803,794 10,033,422 10,707,162 10,322,401 10,641,658 10,651,187 ss Prudent Reserve 15.71% 11.83% 10.17%1 10.02%1 10.12%1 10.08% 1007%1 10.01% 10.09% 10.00% 10.01% 6e 07 Budgeted » 1 1 3 4 5 6 7 8 9 30 6e 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -1018 2018 -2019 1019.2020 2020 -2021 2021 -2012 2021 -2023 2013 -2024 69 TOTAL REVENUE: 25,266,588 25,031,724 29,119,393 29,340,293 32,601,736 34,430,585 35,321,535 34,880,043 37,689,960 39,361,098 42,871,359 7o TOTAL CAPITAL EXPENDITURES: 28,935,400 24,889,000 27,667,860 32,273,639 33,720,462 35,723,650 32,167,537 32,841,214 33,088,526 39,501,691 49,193,863 71 REVENUE MINUS CAPITAL EXPENDITURES: (3,668,812) 142,724 1,451,533 (2,933,346) (1,118,726) (1,293,064) 3,153,998 2,038,829. 4,601,434 (140,594) (6,322,504) M BOND PROCEEDS: Fund Balance 1 - - - - - - - 74 lEnding 37,199,415 37,342,139 1 38,793,672 1 35,860,326 1 34,741,600 1 33,448,535 1 36,602,533 1 38,641,362 43,242,796 43,102,202 1 36,779,698 75 7s TOTAL FUND BALANCES Budgeted» 1 Z 3 4 5 6 7 8 9 30 77 2013 -2014 2015 -2016 10]7 -2018 2018 -2019 2019 -2020 1020 -2021 2021 -2022 2022 -2023 2014 -2015 2016 -2017 1013 -2024 7a TOTAL FUNDS AVAILABLE 47,110,463 46,177,613 47,670,433 45,162,837 44,201,583 43,252,329 46,635,955 49,348,524 53,565,197 53,743,860 47,430,885 79 FUNDS REQUIRED eo 100% of Debt Service 5,546,218 2,077,785 3,782,051 3,809,926 3,603,238 3,600,701 3,607,578 3,597,111 3,593,499 3,593,500 3,590,000 e1 32% of Next Year's O &M Expense 25,629,174 26,808,453 27,801,252 28,360,636 29,412,808 30,019,797 31,140,534 32,071,091 33,001,523 33,956,298 33,033,224 az 30% ofNextYear'sCapltalExpenditures 7,466,700 38,642,092 8,300,358 37,186,595 9,682,092 41,265,395 1 10,116,139 42,286,701 1 10,717,095 43,733,141 1 9,650,261 43,270,759 1 9,852,364 44,600,476 9,926,558 45,594,760 11,850,507 48,445,530 14,758,159 52,307,957 10,224,355 46,847,579 e3 ITOTAL FUNDS REQUIRED e4 e5 Funds Available Amount Above /(Below) Funds Required 8,468,371 8,991,018 6,405,038 2,876,136 468,443 (18,430) 2,035,479 3,753,764 5,119,667 1,435,903 583,306 es e7 GRAPHIC PRESENTATION OF • S REQUIRED • • FUNDS AVAILABLE ee - - 89 Central Contra Costa Sanitary District 90 91 Funds Available Compared to Funds Required by Year 92 93 94 $100,000,000 95 96 9$0,0W,OW 97 9e @�� $80,000,000 99 100 $70,000,000 101 102 $60,000,000 - 103 y 104 lC •� �� wo ow VV:��VV VV VV 1V! VV WW sw,, 105 O -. - - 106 Or�1� 107 108 109 $30,000,000 110 111 $20,000,000 - 112 113 114 $10,000,000 - - - - 115 116 $0 2023 117 -TOTAL FUNDS AVAILABLE 47,131 .463 46,177,613 I 47670,433 45.162,837 I _ 44,201,583 I 43,25' .329 61-83_55, 55. I 118 45.594,760 48,445,197 TOTAL FUNDS REWIRED 38.642,092 37,186,595 41,265.395 42,286,701 43.733,141 43.270,759 44,600.476 52,307,860 &1070585 119 Fiscal Year 120 121 122 -26- 21142014 4 -.38 PM N �ACCOUNTINGIGMTEMP1110 -Year Plan Prolecuons12014 -2015 Prolocuons0NDER AND WORKSHOP1FY2014-15 Scenano 6 No Addl UAAL.As Summary for Curr yr Repon CONCLUSION The 2014 -15 rate increase of $34 is in place and will take effect on July 1, 2014. No action is required by the Board, unless a majority of the Board is in favor of a lower annual increase. The scenarios developed for this year's ten year plan show increasing liabilities and the continued pressure on rates. The scenarios demonstrate the benefit of raising rates higher in earlier years to take advantage of the time value of money. Staff hopes the Board finds this information useful in considering what increases may be needed in future years. POLICY ISSUES & MOVING FORWARD Strategic Planning outcomes and the Cost of Service Study will be provided to the Board at a future date to aid with Board policy issue decisions. Some of the items that may affect those decisions moving forward are reserve policy, "Pay -As- You-Go" & Bond Financing, Short-term financing, and rate - setting methods. -27- Agenda Item 8.a. 10 -Year Financial Plan Board Workshop Preliminary 2014 -15 SSC Rate Discussion February 6, 2014 Presenter: Roger S. Bailey, General Manager 11 Central Contra Costa Sanitary District Protecting Public Health and the Environment Overview of Topics • General Overview • Assumptions for the Rate Model • Historical Budget Information • Current Budget Information FY 2013 -14 • Projected Expenses &Revenue • Reserve Trend • Rate Scenarios: Assumptions, Discussion & Rate Increase Rationale • Moving Forward Summary and Public Hearing Options General Overview • Board adopted Ordinance No.278 on June 20, 2013 • Approved rate increase of $34 per RUE For FY2013 -14 • Approved rate increase of $34 per RUE For FY2014 -15, subject to conditions: — Additional public hearing — Additional review by Board General Assumptions • The model looks at a 10 -Year Financial Plan or Study Period • Financial Plan is balanced for the 10 -year period, with no deficit accumulation in any given year • No short -term borrowing for cash flow • Utilization of Cash Reserves to meet financial obligations between July 1 and December 22nd (I.e. Cash Available >_ Additional Cash Required) • CIP is based on established needs • Cash finance of CIP (Pay -As- You -Go) • Avoid rate spikes or shocks Importance of Reserves (Funds Required Projection) • District's current approach: pay -as- you -go • No short -term borrowing • Large prepayments in July (CCCERA - $16.2 million in 2013 -14; Projected 2014 -15 - $19.5 million) • Debt Service payment in August • Uneven monthly revenue stream Largest revenue source (SSC &Property Tax) is received twice a year (December and April); City of Concord bill income in August; Capacity Fees fluctuate $120,000,000 $100,000,000 $80,000,000 C.1 111 111 $40,000,000 $20,000,000 Total (Budgeted) Revenue vs. (Budgeted)Expense 5 -Year Historical Budgeted Revenue and Expense PR 5 -Year Average 2012 -2013 2011 -2012 2010 -2011 2009 -2010 2008 -2009 +Total District Budgeted Expense Total District Budgeted Revenue C:1 FY 2014 -15 Total Budgeted Revenue & Expense with Breakdown of Revenue Components $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $0 and Draw From Reserves $113,916,268 2013 -2014 2012 -2013 2011 -2012 2010 -2011 2009 -2010 Total District Budgeted Expense Total District Budgeted Revenue $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 $0 FY 2014 -15 Budgeted Revenue vs. Expense with Breakdown of Revenue Source Breakdown of Revenue & Draw From Reserves of $7.3 Million 6-1 nn nnn nnn 2013 -2014 2013 -14 Total ■ Total District Budgeted Expense ■ Total District Budgeted Revenue Draw From Reserves ■ All Other ■ City of Concord Property Tax • Sewer Service Charge Rate Increase • Sewer Service Charge (Existing) 8 O &M Expense Summary (FY 2013 -14) Outside Services 3.6% Repairs & Mainter 4.8% Chemicals & Utilities 7.3% All Other 2.7% Materials & Supplies 2.6%_ Hauling & Disposal 1.4% -" '—urance Contribution 0.8% Professional & Legal 0.6% FY 2013 -14 Budgeted O &M Expenses Total Labor $ 59,292 76.2% Chemicals & Utilities 5,679 7.3% Repairs & Maintenance 3,766 4.8% Outside Services 2,802 3.6% All Other 2,092 2.7% Materials & Supplies 2,017 2.6% Hauling & Disposal 1,101 1.4% Self- Insurance Contribution 600 0.8% Professional & Legal 477 0.6% $ 77,825 100.0% Total Labor 76.2% 9 Projections For FY 2014 -15 Projected Expense 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 Running Expense (O &M) $ 77,824,952 84,738,805 88,040,109 95,753,915 96,741,461 Sewer Construction (Capital) * 28,935,400 24,889,000 27,667,860 32,273,639 33,720,462 Self- Insurance (S /1) Projections Not in Model -3 %yr it 922,500 950,175 978,680 1,008,041 1,038,282 Debt Service (Debt) 5,588,816 5,546,218 2,077,785 3,782,051 3,809,926 TOTAL DISTRICT EXPENSE $ 113,271,668 116,124,198 118,764,434 132,817,646 135,310,131 %Increase - 2.52% 2.27% 11.83% 1.88% 'Capital Expense amount in the 10 -year Plan model (above) is $644,600 less than budget Running Expense (O &M) Sewer Construction (Capital) Self- Insurance (S /1) Projections Not in Model -3 %yr it Debt Service (Debt) TOTAL DISTRICT REVENUE %Increase Projected Revenue 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 75,152,000 83,953,947 88,053,470 95,999,235 96,915,820 25,266,588 22,912,272 30,566,996 29,658,664 35,555,450 646,350 665,741 685,713 706,284 727,473 5,588,816 5,546,218 2,077,785 3,782,051 3,809,926 $ 106,653,754 113,078,178 121,383,964 130,146,234 137,008,669 6.02% 7.35% 7.22% 5.27% SSC Annual Rate Increase $ 34 34 Total Projected District Revenue Minus Expense 37 Revenue Less Expense 2013 -2014 2014 -2015 2015 -2016 2016 -2017 2017 -2018 Running Expense (O &M) $ (2,672,952) (784,858) 13,361 245,320 174,359 Sewer Construction (Capital) (3,668,812) (1,976,728) 2,899,136 (2,614,975) 1,834,988 Self- Insurance (S /1) Projections Not in Model (276,150) (284,435) (292,968) (301,757) (310,809) Debt Service (Debt) - - - - - TOTAL DISTRICT DRAW FROM RESERVE S (6,617,914) (3,046,021) 2,619,529 (2,671,412) 1,698,538 SSC Annual Rate Increase $ 34 34 39 37 34 Total SSC $ 405 439 478 515 549 %Increase each year 9.16 90 8.40% 8.88% 7.7411% 6.60 96 90,000,000 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000,000 Projected Cost (FY 2014 -15) 2014 -15 ■ Running Expense (O &M) Expense ■ Running Expense (O &M) Revenue Sewer Construction (Capital) Expense ■ Sewer Construction (Capital) Revenue ■ Self- Insurance (S /1) Expense Self- Insurance (S /1) Revenue Debt Service (Debt) Expense Debt Service (Debt) Revenue 11 $100,000,000 $90,000,000 $80,000,000 $70,000,000 S60,000,000 $50,000,000 $40,000,000 - $30,000,000 $20,000,000 ti m�l FUNDS AVAILABLE Unrestricted Cash and Investments Adjusted for Receivables and Payables @ June 30th In 2014 -15, Funds Required = $38.6 Million and Funds Available Projection = $44.3 Million Darker Blue Bars indicate there was no SSG rate increase that year Lost approx $6.2 million in Ad Valorem tax Lost $5.7 million in Ad Valorem Tax Increased Capital Spending and O_PE_B_contribution Planned for but didn't lose Ad Valorem Tax Bonds - $30 million net proceeds 2002 Revenue Bond Proceeds- $15 million net The State Borrowed $1.0 million of the District's Property Tax in 2009 -10 and repaid it plus Deferral of Capital Projects s% interest in FY 2012.13 $- .f_ ' ' . I L _I u u I_J LJ LJ , 1J_, L i , Ll LJ Ste, 97 91, 00 9) 90 09 00 0> O� D 00 OQ OS ai� '06, S>6, 9� 190 99 00 O> O1. 01? O� Off. 06 O O O O 7 7 1� 7 7 6'i0, �i00 0109 9i >0 Oi), 7i�� >O $100,000,000 $90,000,000 $80,000,000 $70,000,000 FUNDS AVAILABLE Unrestricted Cash and Investments Adjusted for Receivables and Payables @ June 30th In 2014 -15, Funds Required = $38.6 Million and Funds Available Projection = $44.3 Million Darker Blue Bars indicate there was no SSC rate increase that year Lost approx $5.2 million In ACI valorem tax Lost $5.7 million in Ad Valorem Tax Increased Capital Spending and OPEB contribution Planned for but didn't lose Ad Valorem Tax Bonds - $30 million net proceeds 2002 Revenue Bond Proceeds- $15 million net The State Borrowed $1.0 million of the District's Property Tax in 2009 -10 and repaid it plus Deferral of Capital Projects Ir s% interest in FY 2012.13 $60,000,000 -{ M - S30,000,000 $20,000,000 0000 0000 UMMi:filOUI M — , 1__-I U " l__J L-1 U 1_1, J T JJ L 1 I_ J 1_LT u u u u 90 95r 9S 96, 9� 90 `99 00 O7 O� 00 O� OU 06� O>� 00� 09i "Oi 7 >� 7� 7�,� 7p� 9� 015, X96, L9j L90 99 00 O� O� 00 D� O� 06, 01-1 O� 09 70 7� 7' 70 7� 7s Rate Scenarios • 5 rate scenarios are provided • Baseline refers to the Prior Year scenario used in 2013 for Rate - Setting (from June 2013) • Scenarios 1A and 1B update 2013 Baseline with new known information and have reduced CIB due to removal of nitrification •Scenario 2 cuts capital by 20% in 2014 -15 and defers the amount into the remaining 9 years • Scenario 3 shows no rate increase in 2014 -15, makes up the rate in 2015 -16 Summary of Scenarios IN 2014 -15 2015 -16 2016 -17 2017 -18 2018 -19 2019 -20 2020 -21 2021 -22 2022- 2023 -24 10 -Year Scenario ID Description Rate Rate Rate Rate Rate Rate Rate Rate 23Rate Rate Ending Increase Increase Increase Increase Increase Increase Increase Increase Increase Increase Total Prior Year 2013 -14 Scenario Baseline used for Rate - Setting (June $ 34 $ 37 $ 36 $ 35 $ 34 $ 33 $ 20 $ - $ N/A $ 634 013) Updated 2013 with New 1A Known Rates, Reduced CIB S 37 $ 36 $ 36 $ 36 $ - $ - $ - $ - $ - $ S 550 Due to Removal of Nitrification Scenario #1 with $34 SSC 1B $ 34 $ 39 $ 37 $ 34 $ - $ - $ - $ - $ - $ - $ 549 increase in Year 1 (2014 -15) 1 with 20% Cut to Capital 2 Year 1 (2014 -15); Defer Cut $ 32 $ 32 $ 32 $ 32 $ 21 $ - $ - $ - $ - $ - S 554 Amounts into Remaining 9 Years 3 1 with No SSC Increase Year $ - $ 91 $ 36 $ 36 $ - $ - $ - $ - $ - $ - S 568 1 and made up in Year 2 Moving Forward Summary 2/06 - Preliminary discussion • Receive Board input and scenario requests for 3/6 • Set date and time for public hearing 2/20 - Provide 10 -Year Plan materials to Board Members 2/24 - Finance Committee Meeting to discuss 10 -Year Plan Materials 3/06 - 10 -Year Financial Plan Workshop 4/17 - Proposed date for public hearing on rates 6/05 - Last date to set rates Public Hearing Options 1. Set the public hearing for Thursday, April 17, 2014 at the regular time (2 p.m.) 2. Set public hearing for Thursday, April 17, 2014: a. S p.m. to 6 p.m. Regular business b. 6 p.m. to 6:30 p.m. Dinner break C. 6:30 p.m. Public hearing on rates QUESTIONS?. ORDINANCE NO. 278 AN UNCODIFIED ORDINANCE OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT ADOPTING A SCHEDULE OF SEWER SERVICE CHARGE RATES IN ACCORDANCE WITH DISTRICT CODE CHAPTER 6.24.030 WHEREAS, the Central Contra Costa Sanitary District (District) has previously developed and instituted a Sewer Service Charge Program to finance the services and facilities furnished by the District, and WHEREAS, it is reasonable and necessary that all users of the District's wastewater and household hazardous waste collection, treatment, recycling, reuse and disposal services and facilities, including those temporary users served under Special Discharge Permits, contribute their appropriate portion of the funding for such District services and facilities; and WHEREAS, the District Board of Directors has reviewed the current Schedule of Sewer Service Charge Rates and has determined that the annual residential sewer service charge rate should be increased by $34 per Residential Unit Equivalent (RUE) to $405 per RUE for Fiscal Year 2013 -14, and by an additional $34 per RUE to $439 per RUE for Fiscal Year 2014 -15, and that non- residential sewer service charge rates should be increased in proportionally similar amounts as the residential sewer service charge rate; and WHEREAS, Chapter 6.24.030 of the District Code provides the enabling authority for the District to implement the proposed uncodified Schedule of Sewer Service Charge Rates; and WHEREAS, a properly noticed public hearing to receive comments and protests and to consider the proposed uncodified Schedule of Sewer Service Charge Rates was held on June 20, 2013; and WHEREAS, in adopting this Ordinance, the Board of Directors finds that: a. Written notices of the proposed increase in sewer service charge rates were sent by first class U.S. mail to parcel owners who receive sewer service from the District, using data provided by Contra Costa County Assessor's Office, at least 45 days prior to the public hearing on the proposed increase conducted on June 20, 2013. b. All legally valid protests against the proposed increase in the sewer service charge rates, including those provided in person, by facsimile, e- mail and U.S. mail, were considered and tallied at the Public Hearing conducted on June 20, 2013, . and the District was not presented with protests by a majority of the owners of the identified parcels affected by this change. Ordinance No. 278 Page 2 of 6 Central Contra Costa Sanitary District C. The amount of the charge imposed does not exceed the proportional cost of the service attributable to the properties receiving service and the charge is only imposed on those properties actually receiving service or for those which service is immediately available. d. This action is categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15273 (a) (1 -4) of the District CEQA Guidelines. NOW, THEREFORE, the Board of Directors of the District does ordain as follows: Section 1 (To be Uncodified The "Schedule of Sewer Service Charge Rates" as set forth in full in Exhibit "A" to this Ordinance, which exhibit is incorporated in full herein by this reference, is hereby adopted in uncodified form pursuant to the provisions of District Code Section 6.24.030. As of the effective date of this Ordinance, sewer service charges shall be charged at such rates and for such categories of users as set forth in said Schedule, and shall remain in effect until amended or replaced by ordinance. Section 2 All ordinances, parts of ordinances and any provision of Ordinance 266 in conflict with the provisions of this Ordinance are repealed. The provisions of this Ordinance, insofar as they are substantially the same as existing provisions relating to the same subject matter shall be construed as restatements and continuations thereof and not as new enactments. To the extent the sewer service charges rates or any portion thereof is determined invalid or unconstitutional, such portions of Ordinance 266 shall remain in effect and such rates and charges due thereunder for any categories of users shall remain due and payable as if those portions of Ordinance 266 had not been repealed. With respect, however, to violations, rights accrued, liabilities accrued, or appeals taken, prior to the effective date of this Ordinance, under any chapter, ordinance, or part of an ordinance, such chapter, ordinance or part of an ordinance shall be deemed to remain in full force for the purpose of sustaining any proper suit, action, or other proceedings, with respect to any such violation, right, liability or appeal. Section 3 Prior to imposing the rate set forth under this Ordinance for Fiscal Year 2014 -15, the Board of Directors shall consider, at a noticed public hearing, the District's proposed budget, its financial condition, projected capital and operations and maintenance costs, as well as other factors which bear on the revenue requirements of the District, before June 30, 2014, to determine whether the increased amount set forth herein for Fiscal Year 201.4 -15 is still necessary. if the District Board concludes by a majority vote that sewer service charges for less than the amount set forth in this Ordinance for Fiscal Ordinance No. 278 Page 3 of 6 Central Contra Costa Sanitary District Year 2014 -15 will produce adequate revenues for that fiscal year, the Board may by resolution fix the Fiscal Year 2014 -15 sewer service charges to be imposed at appropriate amounts up to the maximum of the rates set forth herein without an amendment of this Ordinance. In such case, the resolution shall clearly set forth such lesser charges that are to be imposed and those charges shall remain in place until further action of the Board. If the Board determines the rates set forth in the table are appropriate for imposition in Fiscal Year 2014 -15, no further action of the Board shall be required. This Ordinance shall be a general regulation of the District and shall be published once in the Contra Costa Times and San Ramon Valley Times, newspapers of general circulation within the District, and shall be effective on July 1, 2013. This ordinance shall be kept on file with the Secretary of the District. PASSED AND ADOPTED by the Board of Directors of the Central Contra Costa Sanitary District on the 20th day of June 2013, by the following vote: AYES: Members: Causey, McGill, Williams, Nejedly NOES: Members: Pilecki ABSENT: Members: None des A. Nejedly /I ✓ President of the Board of Directors Central Contra Costa Sanitary District County of Contra Costa, State of California Elaine R. Baehme, CMC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved ato form: Kenton L. Alm, °Es4. District Counsel Ordinance No. 278 Page 4 of 6 Central Contra Costa Sanitary District EXHIBIT "A" Schedule of Sewer Service Charge Rates (Uncodified) This schedule of Sewer Service Charges (to be effective July 1, 2013), was established by Central Contra Costa Sanitary District Ordinance No. 278, adopted June 20, 2013. User Group Fiscal Year 2013 -14 Fiscal Year 2014 -15 Residential (rate per Residential Unit Equivalent (RUE)): Single Family Dwellings, Mobile Homes, Townhouses, Condominium Units, Multi-Family Units 1.0 RUE p er living unit $405.00 $439.00 Commercial I Non- Industrial (rates per hundred cubic feet): Bakeries $10.35 $11.22 Supermarkets w /garbage disposals $7.82 $8.47 Mortuaries $7.37 $7.99 Restaurants $7.67 $8.32 Others $3.76 $4.07 Minimum Annual Charge $420.00 $456.00 Industrial (rates per unit specified): Wastewater Flow (per hundred cubic feet) $1.55 $1.68 Biochemical Oxygen Demand (per 1,000 pounds) $861.00 $934.00 Suspended Solids (per 1,000 pounds) $616.00 $667.00 Demand (per hundred cubic feetiday in peak month) $185.67 $201.25 Minimum Annual Charge $420.00 $456.00 Special Discharge Permits & Contractual Agreements: Determined Individually Determined Individual) Ordinance No. 278 Page 5 of 6' Central Contra Costa Sanitary District Schedule of Sewer Service Charge Rates (continued) User Group Fiscal Year 2013 -2014 Fiscal Year 2014 -2015 Mixed Use (for parcels with shared water meter; rates per hundred cubic feet): Rate Group XA: (90 -99% Standard Commercial; 1 -10% Restaurant) $4.15 $4.46 Rate Group XB: (80 -89% Standard Commercial; 11 -20% Restaurant) $4.54 $4.85 Rate Group XC: (70 -79 % Standard Commercial; 21 -30 % Restaurant) $4.93 $5.25 Rate Group. XD: (60 -69 % Standard Commercial; 31-40% Restaurant) $5.32 $5.64 Rate Group XE: (50 -59% Standard Commercial; 41 -50% Restaurant) $5.72 $6.03 Rate Group XF: (40 -49% Standard Commercial; 51 -60 % Restaurant) $6.11 $6.42 Rate Group XG: (30 -39% Standard Commercial; 61 -70% Restaurant) $6.50 $6.81 Rate Group XH: (20 -29% Standard Commercial; 71 -80% Restaurant) $6.89 $7.21 Rate Group XI: (10 -19% Standard Commercial; 81 -90% Restaurant) $7.28 $7.60 Rate Group XJ: (31 -35 % Standard Commercial; 65-69% Bakery) $8.04 $8.72 Rate Group XK: (21 -30% Standard Commercial; 70 -79 % Bakery) $8.37 $9.08 Rate Group XL: (16 -20 % Standard Commercial; 80 -84% Bakery) $9.03 $9.79 Rate Group XM: (11 -15% Standard Commercial; 85 -89 % Bakery) $9.36 $10.15 Rate Group XN: (5 -10% Standard Commercial; 90 -95% Bakery) $9.69 $10.51 Rate Group XO: (10 -15% Restaurant; 85 -90% Bakery) $9.95 $10.74 Minimum Annual Charge $420.00 $456.00 Ordinance No. 278 Page 6 of 6 Central Contra Costa Sanitary District Schedule of Sewer Service Charge Rates (continued) User Group Fiscal Year 2013 -2014 Fiscal Year 2014 -2015 Institutional (rates per hundred cubic feet unless otherwise noted):. Churches $3.76 $4.07 Schools (Daycare, Preschool, University) $3.76 $4.07 Schools (Elementary) $5.19/per student $5.62/per student Schools (Intermediate) $5.49 / per student $5.94 / per student Schools (High School) $5.79 / per student $6.27 / per student Fraternal & Service Organizations $376 $4.07 Local & State Institutions $3.76 $4.07 Other Tax Exempt (Except Federal) $3.76 $4.07 Federal Institutions $3.76 $4.07 Utilities with Special Tax Status $3.76 $4.07 Independent Living Facilities, Rest Homes, & Convalescent Hospitals $3.76 $4.07 Minimum Annual Charge $420.00 $456.00 D,' Costa Sanitary District Protecting Public Health and the Environment 5019 Imhoff Place,'; Martinez California 94553= 4932,` Dear Property Owner and /or Customer: The Central Contra Costa Sanitary District (CCCSD)_ provides sanitary sewage collection and treatment, household hazardous waste disposal, and recycled water services in its central Contra Costa County service area. The District operates within an annual budget of approximately $100 million. CCCSD collects an annual Sewer Service Charge from each property connected to the sewer system. The current residential rate of $371 per year per single family unit is billed as a line item labeled "CCCSD SEWER CHG" on your Contra Costa County property tax bill. CCCSD also receives approximately a $73 ad valorem tax per residence each year from the County's property tax allocation. The $73 is used to pay 100% of the District's debt service with the balance allocated to the capital improvement program. New State and Federal regulations involving water and air quality, additional testing, and treatment processes have financially impacted CCCSD and increased Operations and Maintenance costs. In addition, the District must continue to pay for salaries and benefits, pay down its debt service, and reduce its unfunded liability. The CCCSD Board must therefore consider an increase in the annual Sewer Service Charge of up to $34 (9 cents per day) for Fiscal Year (FY) 2013 -2014 for a total of up to $405 per year effective July 1, 2013, and up to an additional $34 increase for FY 2014 -2015, effective July 1, 2014, for a total of up to $439 per year. FOR RESIDENTIAL CUSTOMERS, whether a single - family home, mobile home, townhouse, condominium, apartment, or other multi - family home, this would mean an increase in the Sewer Service Charge of up to 9.2% in the first year and up to 8.4 % in the second year. FOR NONRESIDENTIAL CUSTOMERS, the service charge rates are calculated for each customer group based on the cost to provide service, considering both the quantity of sewage discharged and other sewage characteristics affecting the cost for treatment. The service charge increases being considered for this category are shown on the reverse side of this notice. The District operates under a 10 -Year Business Plan (Plan), developed by staff, which is updated annually and approved by the CCCSD Board. The Plan documents CCCSD operations, maintenance, facility needs, their associated costs, and the needed revenue for the District to meet its regulatory requirements and fiscal responsibilities. A failure to meet the regulatory requirements could impact CCCSD's mission to protect public health and the environment and result in fines imposed by state and federal regulators that could run into the millions of dollars. In the next decade, the District faces expenditures of approximately $422 million in Capital Projects for rehabilitation and replacement of CCCSD's 1,500 -mile sewer system, mandatory upgrades to the treatment plant, general improvements to buildings and vehicles, and continuation of the recycled water program. The remaining operations and maintenance expenditures include normal costs and reductions in the unfunded liability of retirement and healthcare costs. Based on the results of the Plan, the proposed increases would allow CCCSD to meet its current regulatory and financial requirements. NOTICE IS HEREBY GIVEN that the Board of Directors of the Central Contra Costa Sanitary District will hold a PUBLIC HEARING on this matter in the CCCSD Board Room, 5019 Imhoff Place, Martinez, California, on Thursday, June 20, 2013 at 2 :00 p.m., at which time and place interested persons may appear and be heard. Only written and signed protests of property owners or customers that include the writer's address are to be counted to determine whether a majority protest to the proposed rate increases exists. Property owners or residents can mail their protests to the Secretary of the District at 5019 Imhoff Place, Martinez, CA 94553; hand - deliver them to the Reception Desk at 4849 Imhoff Place; fax them to (925) 676 -7211; or e -mail a written, signed protest in PDF format to eboehme @centralsan.org. Protests must be received before the Public Hearing ends. A copy of the CCCSD Board Policy on filing a protest can be found on the CCCSD website at www.centralsan.org. Questions about the proposed Sewer Service Charges can be directed to CCCSD's Information Line by calling (925) 335 -7702 or by e- mailing rates @centralsan.org. Notice mailed by May 3, 2013 Notes: A nonresidential customer's annual sewer service charge is determined by multiplying the appropriate user group rate times the annual wastewater discharge volume measured in HCF (Hundred Cubic Feet), usually estimated from the property's water use. For example, a bakery discharging 250 HCF per year would pay an annual sewer service charge at the July 1, 2013 proposed rate calculated as follows: ($1035 per HCF) x (250 HCF per year) = $2,587.50 Alternatively, for 2013 -14 you can estimate your annual sewer service charge by multiplying the amount listed beside "CCCSD SEWER CHG "on your 2012 -13 property tax bill by 1.09. If you are billed directly, multiply the amount on the 2010 -11 invoice by 1.09. For a 2012 -13 estimate, multiply by 1.18. If you have questions regarding the Sewer Service Charge program, or would like us to calculate a property- specific estimate of the sewer service charge for 2013 -2014 and 2014 -2015, please send an e-mail request including your name, Assessor's Parcel Number, address and phone number to rates @centralsan. org, or call the District's Environmental Services Division at (925) 335 -7739, Additional information is available on the District's website: www.centralsan.org. Agenda Item 6.a.1 Unfunded Actuarial Accrued Liability (UAAL) and Other Unfunded Liabilities January 9, 2014 Presented by: Thea Vassallo, CPA, CMA Finance Manager 11 Central Contra Costa Sanitary District Protecting Public Health and the Environment Table of Contents 1. Four Main Liabilities 2. Factors that Impact CCCERA Rates & UAAL 3. Annual UAAL Results &Investment Returns 4. Contribution Rates 5. Accelerating UAAL Payments & Prefunding 6. Summary &Staff Recommendations 2012 -13 Unfunded Liabilities CCCERA(2012 valuation) GASB 45 OPEB Debt (2009 Bonds) Accrued Comp Absence Total $142,5M 75.8M 44.5M 3.8M $266.6M $300,000,000 $250,000,000 $200,000,000 $150,000,000 $100,000,000 $50,000,000 CCCSD Four Major Liabilities by Type and Fiscal Year 2005 -06 2006 -07 2007 -08 2008 -09 2009 -10 2010 -11 2011 -12 2012 -13 oAccrued Compensated Absence ®GASB 45 OPEB Unfunded Liability oCCCERA Unfunded Liability 0Outstanding Debt What Factors Impact CCCERA Rates & UAAL?. Economic Actuarial Assumptions (Every 3 Years) - 2012 CCCERA's actuaries make recommendations and the CCCERA Board has the discretion to enact any assumptions changes: • The Board voted to reduce the investment assumption rate from 7.75% to 7.25 %. • The rate of inflation was lowered from 3.50% to 3.25 %. • Projected salary increases decreased from 4.25% to 4.00% (3.25% for inflation, .75 "Across the Board." • The net result of these changes was an increase to the District's UAAL of approximately $15.8M Actuarial Experience Study (Every 3 years) - 2012 CCCERA's actuaries present their findings to the board; the Board must accept the report or the actuaries will withdraw the support for the opinion. This report looks at demographical activities of members, retirees and other outside statistical information . Some of the experience that is reviewed include: Salary increases Termination rates Terminal pay Mortality Rates Disability incident rates Service from sick leave conversion The result of these changes was an increase to the District's UAAL of approximately $6.7M. Total Impact of Economic (previous slide) and Actuarial Changes combined were $22.5 million. Major Events by Year 2007 Total pension fund 90% funded 2008 Huge market loss (28.35 %) Missed assumed earnings rate of 7.80% by (36.15 %) Mortgage and foreclosure downturn Extraordinary losses spread over 5 valuations (smoothing) Major Events By Year 2009 CCCERA depools participating agencies Assumed earnings rate lowered from 7.80% to 7.75% 2010 Terminal compensation reviewed Depooling Part 2 - CCCSD being the highest (12% to 24% of Salary) Major Events by Year 2011 Lower returns than assumed rate of 7.75% 2012 Economic assumption changes Assumed earnings 7.75% to 7.25% rate lowered from Inflation rate lowered 3.50% to 3.25% Last year recognizing 2008 smoothing of losses Other Factors • Actual payroll vs. CCCERA salary projections in the actuarial report cause the percentage rate calculated to be too high or low. If our total payroll comes in less than actuarially projected, the UAAL will increase. The UAAL Results $142.5 Million as of 12/31/2012 Central Contra Costa Sanitary District UAAL - Three Main Components Amounts As of December 31, 2012 Actuarial Valuation Restart of Amortization as of 12/31/2007 $ 32,090,896 Actuarial Lasses Exceeding Gains and Assumption Changes (12/31/2008 - 12/31/2012) $ 79,215,310 $ 142,523,586 Actuarial Losses Exceeding Gains and Assumption Changes (12/31/2008- 12/31/2012) 56% Restart of Amortization as of 12/31/2007 22% Depooling Impact in 12/31/2009 and 12/31/2010 Actuarial Study 22% fi: Central Contra Costa Sanitary District Unfunded Accrued Actuarial Liability (UAAQ History Since CCCERA Depooling Date and Main Reason For Change 12/31/07 - Restart Amortization for Depooling 12/31/08 - Lower Return than Assumed Rate of 7.80% (after 5 -yr smoothing) 12/31/09 - Lower Return than Assumed Rate of 7.80% (after 5 -yr smoothing) 12/31/09 - Assumed Rate Lowered to 7.75% (after 5 -yr smoothing) 12/31/10 - Lower Return than Assumed Rate of 7.75% (after 5 -yr smoothing) Initial Amount In Year Noted Outstanding Amount Impacting 2014 -15 Rates $ 36,185,000 $ 32,090,896 $ 3,709,835 $ 3,620,465 $ 10,118,261 $ 9,993,574 $ 2,003,000 $ 1,978,317 $ 18,178,489 $ 18,095,219 12/31/11- Lower Return than Assumed Rate of 7.75% (after 5 -yr smoothing) $ 10,514,535 $ 10,508,152 12/31/12 - Lower Return than Assumed Rate of 7.75% (after 5 -yr smoothing) $ 12,564,241 $ 12,564,241 12/31/12 - Experience Study Impact - assumed rate lowered to 7.25% $ 22,455,342 $ 22,455,342 $ 147,245,586 $ 1424523,586 $160,000,000 $140,000,000 $120,000,000 $100,000,000 $80,000,000 $60,000,000 $40,000,000 $20,000,000 S- Components in UAAL Initial Amount In Year Noted Outstanding Amount Impacting 2014 -15 Rates 14 CCCERA Investment Returns Valuation Assumed Rate Market Actuarial Total Market Expected Gain/ Year of Return Return Return Return Return (Loss) (5yr smoothing) 2007 7.80% 6.03% 11.63% 295,144,139 396,247,305 (101,103,166) 2008 7.80% (28.35 %) 4.73% (1,476315,831) 395,6921251 (1.872.008,082) 2009 7.75% 19.68% 0.34% 735,742,924 296,712,032 439,030,892 2010 7.75% 13.35% 1.82% 593,4461472 343,957,680 249,4881792 2011 7.75% 1.76% 2.78% 87,630,280 399,829,207 (312,198,927) 2012 7.25% 13.31% 2.25% 667,7331213 400,645,415 267,087,798 5 Year Average Return 2.60% 2.36% 10 Year Average Return 6.74% 4.24% A Closer Look at CCCERA Aggregate and Depooled District Rates CCCERA & CCCSD Total Average Rate Comparison (Employer Basic & COL + Member Basic & COL) 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 12/31/2008 12/31/2009 Total Average CCCERA Rates (4 Components) 12/31/2010 12/31/2011 12/31/2012 Total Average CCCSD Rates (4 Components) CCCERA and CCCSD Central Contra Costa Sanitary District CCCERA Historical Rates and Other Information Valuation Date 12/31/2008 12/31/2009 12/31/2010 12/31/2011 Fiscal Year Applied to: FY 2010/2011 FY 2011/2012 FY 2012/2013 FY 2013/2014 Basic Rate and COLA Combined For Each Category CCCERA All Employers Contribution Rate 25.99% 30.49% 34.49% 37.87% 12/31/2012 FY 2014/2015 4- Yearincrease 49.82% 23.83% CCCERA All Categories Member Contribution Rate 10.62% 10.99% 11.00% 10.98% 12.20% 1.58% *Total Average CCCERA Rates (4 Components) 36.61% 41.48% 45.49% 48.85% 62.02% 25.41% CCCERA Annual Rate Increase Percent Basic Rate and COLA Combined For Each Category -(,CSD Tu[ai ti-nployei Lont lbuiiun .:ai.e CCCSD Member Contribution Rate `Total Average CCCSD Rates (4 Components) 40.37% 50.17% 63.95% 68.39% 85.19% 44.52% 1.24% 4.87% 4.01% 3.36% 13.17% Depoolinp, Impacts in these 2 years 30.94 0/1. 40.30% 53.91% 58.36% 9.43 % 9.87% 10.04% 10.03% 4- Yearincrease 73.93u/c 42.99% 11.26% 1.83% CCCSD Annual Rate increase Percent 6.55% 9.80% 13.78% c-4 "; 1 f.fi0� Difference in Total Rate - CCCSD to CCCERA 3.76% 8.69% 1. 8.46% 1').54'%, 23.17% 19.41% Source: Segal Actuarial Report Summary Pages. Total Average Rates differ slightly from actual rate documents provided by CCCERA due to actual activity and payroll differing from actuarial assumptions. UAAL Amortization Plus Normal Rate Employer Bears UAAL Burden The Unfunded Accrued Actuarial Liability (UAAL) has a significant impact on rates because a portion of the rate is used to pay -down the UAAL annually. The information below displays the Normal Cost and UAAL Annual Amortization rate factors: Valuation Date Employer Total Contribution Rate Breakdown Rate Representing UAAL Annual Amortization 12/31/2008 12/31/09 12/31/10 12/31/11 12/31/12 14.66% 24.31 35.27% 39.53% 52.81% CCCSD Total Employer Contribution Rate 73.9355 Total CCCSD Unfunded Liability $39,779,000 71,018,235 99,841,380 109,I68,803 142,523,585 District Funded %of UAAL pooled pooled 64.12% 62.50% 56.38% CCCERA Total Pool Funded % of UAAL 88.45% 83.77% 80.28% 78.47% 70.64% Source: Segal Actuarial Re port Rate pages brea ki ng out IJAAL Compone nt, the n percentappliedtoTotaI Employer Contribution Rate 80.00% 70.00% 60.00% 50.00% 40.00% 30.00' /o 20.00% 10.00% 0.00% 12/31/2008 12/31/09 12/31/10 12 /31/11 12/31/12 ■ Rate Representing UAAL Annual Amortization Rate Representing Normal Cost 19 Accelerating Payment of the District's UAAL 20 Potential Future UAAL with Additional $75M Paid Toward Principal Assumes all Other Actuarial Assumptions Are Met Valuation Date UAAL Balance Without Additional Principal Payments UAAL Balance With $75 Million Additional Principal Payments Additional Amount Funded Difference 12/31/2011 $ 109,168,803 109,168,803 0 12/31/2012 $ 142,523,585 142,523,585 0 12/31/2013 $ 144,211,457 139,211,457 5,000,000 (5,000,000) 12/31/2014 $ 139,874,207 129,511,707 5,000,000 (10,362,500) 12/31/2015 $ 134,115,580 118,200,488 5,000,000 (15,915,092) 12/31/2016 $ 128,343,342 101,901,550 10,000,000 (26,441,793) 12/31/2017 $ 121,541,184 84,279,944 10,000,000 (37,261,240) 12/31/2018 $ 114,310,249 66,143,808 10,000,000 (48,166,441) 12/31/2019 $ 105,967,850 47,055,811 10,000,000 (58,912,039) 12/31/2020 $ 96,387,756 26,964,708 10,000,000 (69,423,047) 12/31/2021 $ 85,427,230 5,796,146 10,000,000 (79,631,084) 12/31/2022 $ 72,955,758 (6,513,985) (79,469,743) 12/31/2023 $ 58,833,817 (19,308,479) (78,142,296) 12/31/2024 $ 45,942,488 (29,972,795) (75,915,283) 12/31/2025 $ 34,813,935 (38,321,017) (73,134,952) 12/31/2026 $ 22,679,202 (47,116,005) (69,795,207) 12/31/2027 $ 9,241,776 (56,620,824) (65,862,599) 12/31/2028 $ (5,442,869) (66,726,600) (61,283,732) 12/31/2029 $ (18,844,992) (74,843,423) (55,998,430) 12/31/2030 $ (28,376,827) (78,317,550) (49,940,723) Source: CCCERA and CCCSD staff 75,000,000 21 The District Prefunds our Annual Costs to CCCERA each Year Rather than Paying Monthly CCCERA Prefunding in July Prefunding Amount O &M Budget FY 04 $ 6,200,000 $ 44,033,397 FY 05 $ 6,000,000 $ 43,890,914 FY 06 $ 7,000,000 $ 47,188,613 FY 07 $ 7,900,000 $ 54,207,356 FY 08 $ 8,600,000 $ 55,227,035 FY 09 $ 9,000,000 $ 58,495,861 FY 10 $ 9,200,000 $ 59,745,669 FY 11 $ 9,300,000 $ 62,965,721 FY 12 $ 11,600,000 $ 66,540,660 FY 13 $ 13,500,000 $ 70,236,300 FY 14 $ 16,200,000 $ 77,824,952 14.1% 13.7% 14.8% 14.6% 15.6% 15.4% 15.4% 14.8% 14.8 %Average b/t FY04 -FY11 17.4% First year rates reflect both depooling and assumption changes 19.2% 20.8% 19.2% Average b/t FY12 -FY14 CCCERA Prefunding Reaps Financial Rewards in Low - Interest Market The District receives CCCERA's assumed Rate of Return on the amount Prefunded. Interest if Funds Amount CCCERA Interest Earned Held in LAIF and Net Additional Prefunded to Assumed on Prepayment Paid CCCERA Interest Due to Fiscal Year CCCERA in July Earnings with CCCERA LAIF Average Monthly Prefunding 2012 -2013 $13,500,000 7.75% 625,512 0.309% 28,820 $ 596,692 2011 -2012 11,600,000 7.75% 516,437 0.382% 28,455 487,982 2010 -2011 9,300,000 7.80% 415,249 0.594% 28,043 387,206 2009 -2010 9,200,000 7.80% 393,325 0.658% 37,445 355,880 2008 -2009 9,000,000 7.80% 387,596 2.185% 122,109 265,487 Summary and Staff Recommendations for Moving Forward CCCSD Board made sound decision to accelerate funding of UAAL @ 12/31/12 only 56% of the District's total liability was funded which suggests funding level needs improvement. Good News on the Horizon: • The last of the 2005 market losses were accounted for in the 2012 Valuation • Better investment market results in 4 of the past 5 years that will help to lower the UAAL • Annual rates should begin to decrease as UAAL is funded But Caution is Needed: • Potential for super- funding with additional pay -downs combined with better market conditions • Refund of additional amount funded and reductions in contribution rates are not allowed under the current law Summary and Staff Recommendations for Moving Forward • Staff will continue to monitor CCCERA meetings and actuarial information • Additional Pay -downs to UAAL will be reviewed annually in the 10 -year financial plan • Once UAAL is closer to full funding level, additional future payments not needed for CCCERA UAAL could be applied to: — Capital Projects (Regulatory or Infrastructure) — SSC Rate Subsidy — Build Reserves — Paying Down Debt — OPEB Unfunded Liability CCCERA UAAL Breakdown - 2012 CCCERA UAAL Projected UAAL Ratio UAAL Employer /Agency By Agency Payroll To Payroll % County $1,591,610,000 $524,630,168 3.0 69.8% Superior Court 57,888,000 24,126,973 2.4 2.5% Districts: Rodeo Sanitary 609,000 494,509 1.2 0.0% Byron, Brentwood, Knightsen Union Cemetery 311,000 252,278 1.2 0.0% CC Housing Authority 16,316,000 5,054,116 3.2 0.7% In -Home Supportive Services Authority 1,955,000 600,798 3.3 0.1% CC Mosquito & Vector Control 8,891,000 2,731,974 3.3 0.4% First Five - CC Children & Families Commission 5,246,000 1,611,944 3.3 0.2% CCCERA 9,934,000 3,052,314 3.3 0.4% Local Agency Formation Commission 676,000 207,705 3.3 0.0% Bethel Island Municipal Improvements 345,000 105,963 3.3 0.0% Central Contra Cost Sanitary 142,524,000 23,833,773 6.0 6.3% Moraga- Orinda Fire Protection 46,157,000 7,617,434 6.1 2.0% San Ramon Valley Fire Protection 122,740,000 19,990,338 6.1 5.4% CC Fire Protection 228,950,000 33,582,909 6.8 10.0% Rodeo - Hercules Fire Protection 16,445,000 1,794,995 9.2 0.7% East CC Fire Protection 28,461,000 2,623,989 10.8 1.2% Total $2,279,058,000 $652,312,180 3.5 100.0% Questions /Comments? Agenda Item 5.a.2 Cash Flow and Trends December 5, 2013 Board Meeting Presented By: Finance Manager Thea Vassallo, CPA 11 Central Contra Costa Sanitary District Protecting Public Health and the Environment $70,000,000 .1 111 111 i 1 111 111 $40,000,000 M�1 $20,000,000 $10,000,000 $- CCCSD - Cash Flow Trends Information July 2010 - December 20, 2013 Estimate (Before SSC Installment) S62,689,588 i `\, n S38337_S14 V - --4 i O O O O O O rl N rl r-1 r-1 ri rl rl r♦ -4 ri N N N N N N N N N N N N M M M M M M M M M M M M ri ri rl r-1 rl ri N t-1 ri ri ri r•1 r-1 r-1 ri -4 -4 -4 r•1 r•1 tM r♦ r-1 ry r-1 N r♦ r-1 e-/ ri -4 r•1 -1 -4 'j '4 N r♦ '4 ri r♦ ri O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O O N N N N N N N N N N C� N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N N .a (0 fD L G , > ? M IC V G > > > f0 f9 V d C 7 N ` f0 C d N OJ 0J to 2 E o E E c f° Q E p E E 2 co Q E p E E >> ra Q oc Q O. 0 � Q « O > u M d Q r u j u Q v y p N ti G p 6! IL G p d u G ,;; Z O ,;; Z O N Z 0 N O Z E N u v 0 Cash Flow In Cash Flow Out Cash & Investment Balance Funds Required 2013 -14 (Based on following years expenditures 14/15) 100% Debt Service 32% O &M Expenditures 30% CIP Expenditures Total 5.4M 25.1M 7.9M 38.4M Central Contra Costa Sanitary District Change in Funds Available Funds Available Spent July 1 to November 30 2001 $ 24,710,019 2002 21,575,757 2003 22,067,722 2004 21,609,051 2005 21,123, 998 2006 27,639,060 2007 22,744,726 2008 36,236,124 2009 2010 2011 2012 Est. 2013 34,789,200 35, 598, 068 31,942,821 35,283,320 32, 396, 000 June 30 to Mid - December Prepared 12/3/2013 Est. Change in Funds Available 12/1 -12/18 1,976,802 1,726,061 1,765,418 1,728,724 1,689,920 1,934,734 1,592,131 2,536,529 2,435,244 2,491.865 2,235,997 2,469,832 Average July 1- Dec 18 Funds Available Spent (26,686,821) (23,301,818) (23,833,140) (23,337,775) (22,813,918) (29,573,794) (24,336,857) (38,772,653) (3744,444) (38,089,933) (34,178,818) (37,753,152) $ (29,991,927) $ 3,000,000 $ (35, 396, 000) $ 10 -Year Plan Funds Required (29,600,000) (29,100,000) (29,200,000) (27,100, 000) (30,400,000) (33,500,000) (34,100,000) (36,300,000) (37,200,000) (35,600,000) (37,000,000) (37,600,000) (33,058,333) (38, 400, 000) Gap (2,913,179) (5,798,182) (5,366,860) (3,762,225) (7,586,082) (3,926,206) (9,763,143) 2,472,653 24,444 2,489,933 (2,821,182) 153,152 $ (3,066,406) (3,004,000) Total Reduction in Funds Available (shown by bars on chart below) Amount Spent: June 30 to Mid - December Average drop is $30 million: Average Funds Required is $33 million 1 1 1 1 1 . -$10,000,000 -$5,000,000 women _ _____ - $15,000,000 — Average Spending 2008 - 2012 = $37.2 million; mainly higher due to 20,000.000 — CCCERA rate increases irnpacting - $25,000.000 — - -- prefunding amount paid in July - $30,000.000 - �- -$35,000,000 This line represents the Funds Required to be on hand at June 30th of each fiscal year per the 10•year Financial Plan -$40,000,000 -$45,000,000 - calculations to ensure we can pay all of our bills without borrowing until the fir installment of the CCC lax roll is received in mid•Decernber, - First 5112 months draw on Funds Available Increased due to monthly GASB 45 trust payments. increased capital spending on Aline project primarily in 2008, increased CCCERA prefunding amounts and revenue reductions clue to the economy and state property tax borrowing. If not for our funds required minimum (argot, short-term borrowing would have been necessary. Revenue up and Expenses down by $5.0 million total allowing a smaller draw to cash & investments compared to invest ents tocekuetc funds Required. Central Contra Costa Sanitary District Summary of Cash & Investments IrVVC111uC1 riC- �,ivsn�y aiiu uecenu ur Esurnaies in italics 2012 -13 Audit (Rounded Total Cash & Investments at 6/30/2013 Debt Service Reserve Investments Self- Insurance Fund Cash & Investments John Muir Grave Easement in Escrow Total Restricted Cash 62, 727, 000 (5,393,000) (3,872,000) 100, 000 (9.365.000) I Unrestricted Spendable Cash @ 6/30/13 53,362100 July Activity CCCERA Prepayment All Other Net Impacts to Cash & Investments Increase /(Decrease) to Cash & Investments Per Monthly Financial Statements (16, 200, 000) (5,785,000) (21,985,000) Unrestricted Spendable Cash @ 07/31/13 31,377,000 Auaust Activity City of Concord Payment (O &M and HHW) City of Concord (Partial Capital Bill Payment) Debt & Interest Payment from SC Fund All Other Net Impacts to Cash & Investments Increase /(Decrease) to Cash & Investments 11,193, 000 1,317,629 (4,010,000) (7,380,629) 1,120, 000 Unrestricted Spendable Cash @ 08/31/13 32,497,000 Central Contra Costa Sanitary District Summary of Cash & Investments November Pre - Closing and December Estimates in Italics September Activity City of Concord Capital Bill Final Payment 2,299,000 Facility Capacity Fees in excess of Budget (July -Sept) 1,748,000 All Other Net Impacts to Cash & Investments (6,124, 000) Increase /(Decrease) to Cash & Investments (2,077,000) Unrestricted Spendable Cash @ 09/30/13 30,420,000 October, 2013 Net Impact to Cash & Investments Increase /(Decrease) to Cash & Investments (5,452,000) (5,452,000) Unrestricted Spendable Cash @ 10/31/13 24,968,000 November, 2013 Net Impact to Cash & Investments - Pre - Closing Increase /(Decrease) to Cash & Investments (4,002,000) (4,002,000) Unrestricted Spendable Cash @ 11130113 20,966,000 December, 2013 (Partial Month up until CCC SSC & Tax is Deposited) Net Impact to Cash & Investments - Estimate (3,000,000) Increase /(Decrease) to Cash & Investments (3,000,000) Unrestricted Spendable Cash @ 12120113 17,966,000 Total Draw to Cash and Investments 711113 - 12120113 (35,396,000) Total Funds Required from January 2013 10 -year plan 38,400,000 *Variance 3,004,000 * O &M Expense is $2.4 million less than budget and Revenue exceeds budget by $2.7 million (mainly Capacity Fees higher than anticipated in budget). This totals $5.0 million less to the Draw on Cash and Investments If on budget, Draw to Cash and Investments would have exceeded Funds Required. Source: November Financials Pre - Closing on 1213113 Current Variances 11/30/13 Pre - closing Revenue Variance to Budget 11/30/13 Pre - closing O &M Expense Variance to Budget Favorable Variance Gap - Spent vs. 10yr Plan Funds Required if on Budget 11/30/13 Pre - closing Capital Variance to Budget 11/30/13 CIP Actual Spent 2013 -14 CIP Estimated Expenditures 2,671,522 2,375,404 5,046,926 2,042,926 31% 9,076,089 29, 580, 000 Questions ?? Item 7 a.) 2014 -15 Capital Improvement Budget and Plan Andrew Antkowiak Board Workshop December 19, 2013 11 Central Contra Costa Sanitary District Protecting Public Health and the Environment Kick -off FY 2014 -15 Financial Planning • Today's meeting reviews proposed Capital Program Expenditures for FY 2014 -15 and next nine years • Review programs and selected 2014 -15 projects — Treatment Plant Program — Collection Systems Program — General Improvements Program — Recycled Water Program • Combined Operation &Maintenance and Capital Planning Ten Year Financial Plan Workshop in January /February 2014 Proposed Ten -Year Capital Improvement Program TV inspection excluded from Capital Improvement Program ($1 million per year included in O &M budget) 2014.2015 2015.2016 2016.2017 1 2017 -2018 2018.2019 2019 -2020 2020 -2021 2021 -2022 2022 -2023 2023.2024 Total Year 1 2 3 4 5 6 7 8 9 10 Treatment Plant 1 - Reg. Compliance /Planning /Safety 563,000 691.000 925,000 1.035,000 425.000 425.000 431,000 3.871.000 9.390.000 15 065.000 32,821,000 2. One -Time Renovation 8,103,000 7.326,000 9,381.000 8.621,000 5.950.000 3.655.000 2,080,000 580.000 277.000 1,200,000 47.173,000 3 - Recurring Renovation 308,000 2.670.000 2.060,000 1,160,000 4.960.000 4,960.000 4,810.000 3,310.000 1.760.000 710.000 26.708,000 4 - Expansion - 50,000 100.000 440.000 590,000 Treatment Plant Subtotal 8,974,000 10,687,000 12,366,000 10,816,000 1 1.335,000 9,040,000 7.321,000 7,811,000 11 ,527,000 17,415,000 107,292,000 Collection System t - Renovation 7,266,000 11,701,000 13,651,000 13,401,000 14.614,000 13.501.000 5.751,000 8,851,000 8.800.000 10200.000 107136,000 2 - Reg. Compliance /Planning /Safety 600.000 575.000 340,000 340,000 240,000 240,000 140.000 140,000 140,000 140.000 2,895.000 3 - Expansion 4,301.000 1,301,000 1,301,000 1,306,000 1.501,000 2.002,000 11,502,000 6,352.000 6.371.000 6.798.000 42.735.000 4 - Pumping Stations 150,000 140,000 350,000 2,080,000 1,510,000 435.000 635.000 1,595.000 2,195,000 1,095.000 10.185.000 Collection System Subtotal 12.317.000 13,717,000 15,642,000 17.127,000 17.865,000 16,178.000 18,028,000 16,938,000 17,506.000 18.233.000 163,551,000 General Improvements 1 - Vehicles & equipment 501,000 501,000 501,000 501.000 500,000 500.000 500.000 500,000 500.000 500 000 5,004,000 2 - Management Information Systems 1.450.000 500,000 1 500,000 500,000 500,000 500.000 500.000 500.000 500.000 500.000 5.950.000 3 - Projects 495.000 470,000 485,000 855,000 480,000 480.000 480,000 480.000 480.000 480,000 5.185,000 4 - Asset Management 500,000 500.000 500.000 500.000 500,000 500,000 110.000 110.000 110.000 60.000 3.390 000 General Improvements Subtotal 2,946,000 1,971,000 1.986.000 2,356,000 1.980.000 1,980,000 1.590,000 1,590,000 1,590,000 1,540,000 19,529,000 Recycled Water Recycled Water Subtotal 652,000 487.000 427,000 560.000 560.000 550.000 565,000 565,000 560,000 515,000 5,441,000 Capital Program Total 24,889,000 1 26,862,000 1 30,421,000 1 30,859,000 1 31,740,000 27,748.000 27,504,000 26,904,000 31,183,000 37,703,000 295,813,000 TV inspection excluded from Capital Improvement Program ($1 million per year included in O &M budget) $296 Million Ten Year Plan Is a Responsible One That Funds.... • Treatment Plant — Primary Sedimentation Renovation $ 15 M — Cogeneration Replacement $ 6 M — Nitrification $ 4.5 M — Contaminated Soils Remediation $ 7 M — Incinerator /Solids Handling Improvements $ 6.2 M — Alternative Energy Facility $ 6.3 M — Screenings Removal $ 10 M • Collection System — Identified Renovation Needs $ 82 M — Identified Capacity Needs $ 30 M — Pumping Station Renovation $ 10.2 M — CAD's and Developer Sewers $ 14 M • General Improvements and Treatment Plant — Seismic Improvements $ 9 M Proposed FY 2014 -15 Capital Improvement Budget FY 2014 -15 CIB Program Total Cost Treatment Plant $ 9.0 million (36.1 %) Collection System $12.3 million (49.4 %) General Improvements $ 2.9 million (11.6 %) Recycled Water $ 0.7 million (2.8 %) Total $24.9 million (100 %) * TV inspection program included in O &M budget FY 2014 -15 TREATMENT PLANT PROGRAM CATEGORY PROJECT ANNUAL EXPENSE Reg. Compliance /Planning Treatment Plant Planning $ 4003000 One Time Renovation Primary Treatment Renovation $ 6,200,000 DAF Tank Renovation $ 4007000 Centrifuge and Cake Pump Upgrades $ 1,000,000 Pump & Blower Seismic Upgrade $ 100,000 Recurring Renovation Piping Renovation Phase 8 $ 1507000 All Other $ 724,000 Total $ 8,974,000 $15.0 M Primary Sedimentation Tank Renovations Incorporates Condition Assessment Findings and Improves Efficiency • Ongoing Renovations — Replace Scum Collection System — Replace Chain Drives — Rehabilitate Concrete — Replace water and air supply piping — Replace Scum Skimmers and Thickener — Construct New Grit Handling Facilities — Upgrade /Renovate Electrical Conduits /Equipment — Primary Effluent Pumps DAF Tank Renovation • Emergency Repaired of DAF Tank No. 1 after arms failure. • Inspected all DAF Tanks. • The DAF Tanks Renovation project will replace the arms in other tanks, recoat exposed steel, and make additional repairs. • Budgeted $400,000. Centrifuge and Cake Pump Upgrades • Replace old, at the end of useful life, equipment • Improve reliability and performance of the sludge dewatering equipment • $1.1 million in FY 2014 -15 • $5.1 millon total project cost S _ 44�- Piping Renovation • Ongoing program to identify and replace deteriorated piping and equipment throughout the treatment plant. Treatment Plant Planning • NPIDES Permit Adopted April 1, 2012 Requires • Submit Report to RWQCB by 2/28/14 • Ammonia Removal Optimization Study • Alternative Ammonia (Nutrient) Removal Technologies • Site Characterization Study • Nutrient Removal Technologies —Board update in January /February 2014 Element 1: Plant Optimization (near term w /existing facilities) Primary Baffle Study BioWin Configuration Plant Optimization for Ammonia Removal Nutrient Facility Plan & Site Characterization Element 2: Nutrient Visioning Plan (long term w /new facilities) Total Nitrification Study (2010 HDR) Cutting -Edge Technology Evaluation Cyanide Study [Nitrification Rate Tests Cyanide Removal Options Element 3: Site Characterization (contaminated soil disposal /treatment for new facilities) Cost of Contaminated Soil Remediation (If Nitrification needs the Footprint) • Cost depends on Waste Class (estimated 150,000 cy) - Non Hazardous — landfill - $18.9 Million (Haul to Keller Canyon Landfill) - Non- RCRA — Hazardous - $18.5 - 27.6 Million vz4, (Rail transport to Utah) - On -site treatment - $27 — 39.5 Million (Stabilization /Solidification) - On -site Relocation • Characterization study underway • Assume $7 Million for planning purposes in year 10 (2023 -24) V//, Seismic Retrofit Program (10 Year Plan) ;Pump << Blower Bldg to Fault - _ -- Cnlirle Rlrin 4n F�„14 Concord Fault Ak ±Property Line to Fault X0.13 miles or --• 709 ft, Concord Fault Proximity to District Facilities I 1.9 Seismic Retrofit Program Project 12014 10 -YR CIP I CONSTRUCTION Pump & Blower $ 3400,000 Yr. 2 -FY 2015 -16 POB Office Area $ 114001000 Yr. 5 - FY 2018 -19 TP Warehouse $ 9505000 Yr. 6 - FY 2019 -20 Laboratory $ 2771000 Yr. 10 - FY 2023 -24 S C B 1 $ 11200,000 Yr. 10 - FY 2023 -24 Total $ 792275000 1 Seismic Retrofit of SCB is estimated at $7 -8 Million for construction; does not include bracing furnaces. Budgeted outside 10 year plan in anticipation of potential change in solids handling method. FY 2014 -15 COLLECTION SYSTEM PROGRAM CATEGORY PROJECT ANNUAL EXPENSE Renovation program North Orinda 5, Walnut Creek 10, and others $ 61850,000 Capacity /Renovations Grayson Creek Trunk in Pleasant Hill $ 3,400,000 Pumping Stations Pumping Station equipment, piping replacement and Safety Improvements $ 1507000 $ 7005000 $ 200,000 Developer services Developer Services Contractual Assessment Districts Current CADs Reg. Compliance & Planning Planning and CS Modeling $ 390,000 All others $ 627,000 Total $ 12,3175000 * Excluded TV inspection program ($1 million per year included in O &M budget) Pipe Renovated to Date Miles of pipe (6, 8 &10 Inch) renovated to date. FISCAL YEAR PIPE RENOVATED 2006/07 8.1 Miles 2007/08 5.6 Miles 2008/09 6.3 Miles 2009/10 7.5 Miles 2010/11 2.6 Miles 2011/12 6.8 Miles 2012/13 5.3 Miles 2013/14 4.5 Miles TOTAL Completed Renovation 46.7 Miles Renovation Program (6, 8 & 10 inch) Achieves 100% Completion of all known defects by FY 23/24 Total miles of pipe to be renovated - 82.8 miles` Miles of pipe renovated to date - 46.7 miles Remaining miles to renovate - 36.1 miles Based on TV inspection of 99 percent of 6, 8 and 10 inch mains ** Provides $9.2 million for lines currently not identified by TV program * ** Estimated at $320 /ft 10 Yr Budget Miles of Percent of for Pipe Known Renovation Renov. in Defects (millions) ** Next 10 Renov. in Yrs * ** 10 Yrs $69.9 41.3 100 %+ Based on TV inspection of 99 percent of 6, 8 and 10 inch mains ** Provides $9.2 million for lines currently not identified by TV program * ** Estimated at $320 /ft 200 150 100 691 U SSO Downward Trend Has Been Significant Since Start of Renovation Program Running 12 -Month Overflow Totals 2003 to present O OV O O O N N N N N 12 -Mont O O N N h Total at Mon H N N N C C C C th -End i1 SSO Downward Trend Has Been Significant Since Start of Renovation Program Comparison of Cumulative Overflows 100 90 80 70 60 50 40 30 20 10 0 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC - ♦-2009 --0-2010 2011 ♦2012 12013 A3- Pleasant Hill - Pleasant Hill /Grayson Creek Lafayette - Pleasant Hill Road (Co leted in FY 2011/12) D2 -A D3 -A D4 -13 ti I . v -_ .►► . -_ (24)_ L E3-13 E3 -C E3 -A ., D4 -C 4 !aW F3 -A F3 -B F3 -C - ------ G3-4 Capad N_V_" ( 4) Y X242 C4 -A ` C4 -F 10 year plan includes C4 -D C5 -A $30M for high priority 4�4-C p 4 -E capacity projects 134 -D J D4 -A D4 -F /\ i ' • , D4 -G Walnut Creek- -'/ ES -A Walnut Blvd E4_g { E4 -A F5 -A G5 -A ty Program Legend H6 -A San Ramon - Capacity Deficiency Group Percent Full Pipe Capacity San Ramon Schedule C O i (2040 Development, 5 -year Event) 2 No Slope or Invert Elev HE O % O 3 - < =100% 4 >100% to <=130% ' >130% 'j L J'MJYI -LV II IJ'1J �• J Qk. I , - • wt- 7 r .+. -1 r-- --^+rte -- �R 111"4"' • . `JL m1�.+� ® 1 ; � =Wil . IMP- t IN 0 1000 2000 r1 7 LEGEND: -I EXISTING DEFICIENT SEWER GGRRAYSONCREEK ALT. I GRAYSON CREEK ALT. 2 CREEKS r, PLEASANT HILL ROAD CORRIDOR ;,.�J , PLEASANT HILL GRAYSON CREEK CAPACITY PROJECT FY 2014 -15 GENERAL IMPROVEMENTS PROGRAM PROJECT ANNUAL EXPENSE Vehicles and Equipment $ 500,000 Information Technology $ 1,000,000 GDI Treatment Plant and SMMS Replacement $ 450,000 Asset Management $ 500,000 All Other $ 4967000 Total $ 29946,000 Treatment Plant Renovation Needs Continue to be Identified with Condition Assessments *Determine the likelihood of failure and /or the remaining life of the asset. •Completed Assessments: •Concrete *Asphalt Paving •Protective Coatings •Transformers *Buildings re Seismic *Presence of Hazardous Materials *Critical Piping (Aeration) *Elevators *Electrical Switchgear Asset Information Asset Name: Report Primary Sedimentation Tank 1 Asset No.: 22127 Asset Location: Primary Area Date of Field Work: 622/2009 Observed Defects: Multiple (see Field Notes) Action: Repair defect(s) per recommendation(s) Estimate of Useful Life Remaining: 10 -20 Years Field Notes: The locations of the observations were noted as follow the scum area is called Scum Pit Bay and each bay countinq from the Scum Pit Bay. movinq south are refered to as Bay 1 Bay 2. . and Bay 16 Photo 13: Bay 1 - Detail of Exposed Aggregate Above Water Line (Typical) Using Asset Management Techniques to Scope Treatment Plant Renovation Projects Assets Condition Assessment Business Risk Exposure (BRE) - Remaining useful life? - Consequences of failure (criticality)? - Deficiencies? - Likelihood of failure? Business Risk Analysis Determine Projects & Group Appropriately — by Location "Primary Renovation" or by Asset Type "Piping Renovation Incorporate in 10 year CIP GDl & SMMS Replacement ESG -SQL \GIS ESG Data M a d v District and Developer Jobs Mapping GeoMedia Collection system plan and profile drawings AutoCAD SMMS WORKFLOW SEE ADDITIONAL DIAGRAM n n , o .4 ' q SQL Server 2005 ESG -SQL FME \WEB — GIS (attributos) ESG Data 0o f� �P 10� /Mdac F �s o�010 duo 9�a Sa 'Ohs df. cSl �di IBM AS /400 Server QiSeries HTE SQL Server 2005 CSO -02 Accela ColdFusion (Reports) MapGuide (Spatial) 'OI i GDI Web Server (Windows 2003 Server /IIS 6.0) O SQL Server 2005 SQL -01 CCCSDLFS (Laserfiche) .,t I FY 2014 -15 RECYCLED WATER PROGRAM PROJECT ANNUAL EXPENSE Pleasant Hill Zone 1, Martinez $ 202,000 Refineries and other REW Planning Concord Landscape — Customer $ 450,000 Connections Total $ 6529000 Customer Connections k -8 t � Existing Pipeline , -- �;•'.r.• P� Concord Landscape Project Area ., �• � 1 1, , , �•`�. �.� � b )� .A ll� Chevron ti ,, tea!, ',� r _- _, Up to 34 New Customers Budgeted $450,000 Bid in spring 2014 Martinez Refinery Project Construction Unbudgeted/ Conducting Title 16 Feasibility Study in cooperation with CCWD Proposed FY 2014 -15 Capital Improvement Budget FY 2014 -15 CIB Program Total Cost Treatment Plant $ 9.0 million (36.1%) Collection System $12.3 million (49.4 %) General Improvements $ 2.9 million (11.6 %) Recycled Water $ 0.7 million (2.8 %) Total $24.9 million (100 %) * TV inspection program included in O &M budget Sewer Service Charge is Critical Funding Source for Capital Program FY 2013 -14 CAPITAL REVENUES BUDGETED Facility Capacity Fees $4,790,000 Pumped Zone Fees $755,000 Interest Sewer Construction Fund $193,000 Property Taxes (Net after debt paid) $851027000 Sewer Service Charge ($40 capital component) $6,628,000 Reimbursements from Others City of Concord $472777000 Recycled Water Sales (Net after O &M) $637000 Developer Fees /Other $435,000 TOTAL $2592439000 Current Year Program Sets Beginning SCF Balance for Ten Year Plan FY 2013 -14 CAPITAL PROGRAM BUDGETED Total Expenditures $29.6 million Total Revenue $25.2 million Variance -$4.3 million Beginning SCF Balance 6/30/13 Projected SCF Balance on 6/30/14 $40.8 $36.4 million million Capital Program has been deficit spending for many years $0.0 Capital Program Has Been Deficit Spending Since FY 2004 -05 $70.0 $65.6 $60.0 $56.9 _ -$57.3- $55.2 $300 M Net Bond Sale Sewer Construction $53.8 $51.8 $51.7 2014 -15 1999 -00 $52.1 $50.0 $47.8 - $44.3 2003 -04 2004 -05 $46.3 2006 -07 2007 -08 $45.4 $45.0 2010.11 2011 -12 2012 -13 $39 6 $40.8 $40.0 tAnnual Revenue - _ 36.7 $36.4- $34.3 ur o Annual �c�ense $30.0 //$36.3 29.1 �3. $30 .0 $36.3 $35.3 $24.8 2 . 25.9 c $21.6 28.2 $18.9 �$25428.4 28.2 26.5 $24.8 Annual Revenue 21.9 $25.2 $24.4 $20.0 $20.6 $19.8 21.7 $20.6 $ •0 $31.4 $15.8 $10.0 $26.5 $27.7 $39.6 $0.0 - 2013 -14 2014 -15 1999 -00 2000 -01 2001 -02 2002 -03 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 2008 -09 2009 -10 2010.11 2011 -12 2012 -13 Budget Prelim tAnnual Revenue $21.6 $18.9 $17.0 $23.5 $28.2 $30.0 $24.8 $36.3 $35.3 $28.4 $21.9 $15.8 $21.7 $22.3 $25.2 $24.4 ao*-Annual Expense $20.6 $28.2 $31.4 $25.4 $19.8 $26.5 $27.7 $39.6 $33.4 $36.7 $29.1 $28.0 $24.8 $26.8 $29.6 $25.9 tSCF Balance $56.9 $47.8 $44.3 $45.4 $53.8 $57.3 $55.2 $51.8 $51.7 $45.0 $65.6 $52.1 $46.3 $40.8 $36.4 $34.3 *SFC Balance is not strictly governed by checkbook accounting and may not strictly represent the sum of prior year balance and current year variance. ** FY 2014 -15 Preliminary Annual Capital Expense w/o TV program is $24.9 Sewer Service Charge Revenue Diverted from Capital Program to Balance O &M Budget Total Sewer Service Charge per RUE and the Operations and Capital Components $500 $450 $439 $405 $400 Total Charge per RUE $371 $341 $396 $350 $300 $311 $311 $311 $344 $365 $300 $272 $280 $280 $289 $248 $292 $300 $302 $250 $224 $200 $242 $260 $200 $234 Operations Component $204 $207 $218 $204 $213 $185 $150 $100 $76 $58 Capital Program Component $50 $41 $76 $15 $20 $54 $46 $51 19 $11 $39 $40 $43* $0 1 , 1 - 1 1 1 , , $27 T 2000 -01 2001 -02 2002 -03 2003 -04 2004 -05 2005 -06 2006 -07 2007 -08 2008.09 2009 -10 2010 -11 2011 -12 2012 -13 2013 -14 2014 -15 Prelim. * TV inspection program included in Capital Program Component Preliminary Ten Year Plan Findings - 2014Service Charge Increase is Needed to Fully Fund Capital + O &M FY 2014 -15 CAPITAL PROGRAM BUDGETED Total Expenditures $24.9 million Total Revenue $23.4 million Variance -$1.5 million Projected SCF Balance on 6/30/14 Projected SCF Balance on 6/30/15 $36.5 $34.9 million million Board Role in Capital Program is Ongoing • Set Initial Capital Funding Levels in December • Confirm Capital Funding Levels in Jan /February as part of overall District Ten Year Financial Plan • Board Workshop Focused on CIB /CIP Projects April • Authorize CIB/Prograrn Budgets and O &M Budget in June • Authorize Supplemental Program Funds when needed • Award Construction Projects > $100,000 • Authorize Construction Change Orders >$100,000 is Authorize Consultant Contracts > $100,000 Questions or Comments? 2014 -2015 2015 -2016 2016 -2017 2017 -2018 2018 -2019 2019 -2020 2020 -2021 2021 -2022 2022 -2023 2023 -2024 Total Year 1 2 3 4 5 6 7 8 9 10 Treatment Plant 1 -Reg. Compliance /Planning /Safety 563,000 691,000 925,000 1,035,000 425,000 425,000 431,000 3,871,000 9,390,000 15,065,000 32,821,000 2 -One -Time Renovation 8,103,000 7,326,000 9,381,000 8,621,000 5,950,000 3,655,000 2,080,000 580,000 277,000 1,200,000 47,173,000 3- Recurring Renovation 308,000 2,670,000 2,060,000 1,160,000 4,960,000 4,960,000 4,810,000 3,310,000 1,760,000 710,000 26,708,000 4 - Expansion 50,000 100,000 440,000 590,000 Treatment Plant Subtotal 8,974,000 10,687,000 12,366,000 10,816,000 11,335,000 9,040,000 7,321,000 7,811,000 11,527,000 17,415,000 107,292,000 Collection System 1- Renovation 7,266,000 11,701,000 13,651,000 13,401,000 14,614,000 13,501,000 5,751,000 8,851,000 8,800,000 10,200,000 107,736,000 2 - Reg. Compliance /Planning /Safety 600,000 575,000 340,000 340,000 240,000 240,000 140,000 140,000 140,000 140,000 2,895,000 3- Expansion 4,301,000 1,301,000 1,301,000 1,306,000 1,501,000 2,002,000 11,502,000 6,352,000 6,371,000 6,798,000 42,735,000 4- Pumping Stations 150,000 140,000 350,000 2,080,000 1,510,000 435,000 635,000 1,595,000 2,195,000 1,095,000 10,185,000 Collection System Subtotal 12,317,000 13,717,000 15,642,000 17,127,000 17,865,000 16,178,000 18,028,000 16,938,000 17,506,000 18,233,000 163,551,000 General Improvements 1 - Vehicles & equipment 501,000 501,000 501,000 501,000 500,000 500,000 500,000 500,000 500,000 500,000 5,004,000 2 - Management Information Systems 1,450,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 5,950,000 3 - Projects 495,000 470,000 485,000 855,000 480,000 480,000 480,000 480,000 480,000 480,000 5,185,000 4 - Asset Management 500,000 500,000 500,000 500,000 500,000 500,000 110,000 110,000 110,000 60,000 3,390,000 General Improvements Subtotal 2,946,000 1,971,000 1,986,000 2,356,000 1,980,000 1,980,000 1,590,000 1,590,000 1,590,000 1 1,540,000 19,529,000 Recycled Water Recycled Water Subtotal 652,000 487,000 427,000 560,000 560,000 550,000 565,000 565,000 560,000 515,000 5,441,000 Capital Program Total 24,889,000 26,862,000 1 30,421,000 1 30,859,000 1 31,740,000 27,748,000 1 27,504,000 1 26,904,000 1 31,183,000 1 37,703,000 1 295,813,000 GLOSSARY OF FINANCIAL TERMS For use with the 10 -year planning documents Accrual Basis of Accounting - The basis of accounting under which transactions are recognized when they occur, regardless of the timing of related cash flows. An example of accrual basis is when an invoice is sent out for services, a receivable is booked and revenue is recorded even though no cash has been received at the time the invoice is mailed to the customer. Ad Valorem Tax (Property Tax) - A tax based on the assessed value of taxable property (also referred to as Property Tax). Arbitrage - Borrowing in one market (such as bonds) at one interest rate and investing in another market (such as certificates of deposit) at a higher interest rate. Such activities are highly restricted by the federal government and any excess interest earned in this manner is not tax exempt. Asset - An economic resource owned by the entity that is expected to benefit future operations. Examples of assets are: cash, investments, receivables, and capital or fixed assets. Balance Sheet - See Statement of Net Position, the current term. Bonds - A written promise to pay a sum of money (principal or face value) at a future date (maturity date) along with periodic interest amount paid at a specified percentage of the principal (interest rate). Bonds are typically used to finance long -term capital improvements. Budget - A plan of financial operation, embodying an estimate of proposed expenditures for a given period (typically a fiscal year) and the proposed means of financing those expenditures (revenue estimates). CAFR (Comprehensive Annual Financial Report) — A report prepared at the close of each fiscal year to show the actual audited condition of the Agency's funds and serves as the official public record of the Agency's financial status and activities. Capital - The term refers to the Sewer Construction (S /C) Fund. Capital Assets - Assets such as land, improvements to land, easements, buildings, building improvements, vehicles, machinery, equipment, works of art and historical treasures, infrastructure, and all other tangible or intangible assets that are used in operations and that have initial useful lives extending beyond a single reporting period. Capital Budget - A plan of proposed capital expenditures and the means of financing those expenditures. The capital budget is usually enacted as a part of the complete annual budget, which includes both operating and capital outlays. The capital budget should be based on a capital improvement program (CIP). A GLOSSARY OF FINANCIAL TERMS For use with the 10 -year planning documents Capital Improvement Program (CIP) - A plan for capital expenditures to be incurred each year over a fixed period of several future years setting forth each capital project, identifying the expected beginning and ending date for each project, the amount to be expended in each year, and the method of financing those expenditures. Cash Basis of Accounting - A basis of accounting under which transactions are recognized only when cash changes hands. Revenue is recognized when cash is received and expenses are recognized when paid. Cash Reserves (Funds Required /Funds Available) - The amount of cash and investments that is easily liquidated and available to meet the District's operating, capital, self- insurance, and debt service obligations. Reserves may be restricted or unrestricted. The Operations and Maintenance (O &M) and Capital Funds Available are unrestricted cash reserves, made up of cash and investments of the District (See definitions of Funds Available and Funds Required). Connection Fees (Capacity Fees, Facility Capacity Fees) - A fee charged when new or additional Residential Unit Equivalents (RUE) connect to the sewer to contribute their fair share of service and facility costs. (Also see Pumping Capacity Fees). Debt Service - The amount of principal and interest that a local government must pay each year on its long -term debt. Defeasement - The act of relieving an Agency of a particular liability (such as a specific bond series) by refunding the liability through an escrow or trust fund. Legally defeased liabilities do not need to be appropriated each year as the trust fund is removed from the control of the Agency. (The District defeased its 1994 debt using 1998 Revenue Refunding Bonds.) Deficit - (1) The excess of an entity's liabilities over its assets; (2) The excess of expenditures or expenses over revenues during a single accounting period. District Code - A system of rules, which are complied and arranged by a municipal corporation, and are adopted and used to regulate the conduct of its inhabitants and government. Facility Capacity Fees - see Connection Fees above. FASB (Financial Accounting Standards Board) - An independent body responsible for establishing and interpreting the GAAP mainly for use in the North America. The District follows FASB's standards in areas not specifically covered by GASB. f GLOSSARY OF FINANCIAL TERMS For use with the 10 -year planning documents Fund - An independent fiscal and accounting entity with a self - balancing set of accounts, recording cash and /or resources together with all related liabilities, obligations, reserves, and equities which are segregated for the purpose of carrying on specific activities or attaining certain objectives. One type of government fund is an enterprise fund and is the only type of government fund used by the District. Enterprise Funds - Accounts for District, self- sustaining activities that derive the major portion of their revenue from user fees. Enterprise Fund Accounting is used for self- sufficient government operations financed and operated in a manner similar to business enterprises, and for which preparation of an income statement is desirable. The District uses "sub- funds" to better manage internal finances. The funds are as follows: Running Expense (also referred to as Operations and Maintenance, O &M, or R /E) - A sub -fund that accounts for the general operations of the District. Operating revenues and expenses are accounted for in this sub -fund. Sewer Construction (also referred to as Capital or S /C) - A sub -fund that accounts for non - operating revenues that are to be used for acquisition or construction of plant, property, and equipment. Self- Insurance (S /1) - A sub -fund that accounts for interest earnings on cash balances and cash allocations from other funds, temporary investments, and costs of insurance premiums and claims not covered by the District's insurance policies. Debt Service - A sub -find that accounts for activity associated with the payment of the District's long -term bonds and loans. Funds Available (CCCSD term for Cash Reserves on hand) - The amount of cash and investments available in the O &M and S/C funds on June 30th of any fiscal year using the Funds Required definition below. Fund Balance (Net Position) - The net worth of a fund, measured by total assets minus total liabilities. Funds Required (CCCSD term for Cash Reserves Guideline) - Used in the 10 -year planning process, this is the amount of money held in cash and investments (liquid assets) that is needed on June 30th of any fiscal year to meet our cash flow needs through mid - December, when we receive our first sewer service charge and property tax payment from Contra Costa County. This includes O &M and S/C Fund cash and temporary investments; it does not include OPEB payments /accruals, Debt Service cash or reserve investments and Self- Insurance Fund cash and investments. c GLOSSARY OF FINANCIAL TERMS For use with the 10 -year planning documents GAAP (Generally Accepted Accounting Principles) - A widely accepted set of rules, conventions, standards, and procedures for reporting financial information, as established by the Financial Accounting Standards Board (FASB). GASB (Governmental Accounting Standards Board) - Established in 1984, it is the ultimate authoritative accounting and financial reporting standard - setting body for state and local governments. The Board issues GASB statements that can require significant changes to an agency's financial reporting. Goal - The long -term continuing mission of a department, division, or program. Goals define the strategic results to be achieved and therefore indicate the relevance, importance, scope, and effectiveness of that outcome. Internal Control - The plan of organization and all other coordinated methods and procedures adopted to safeguard assets; to check the operations data; to promote operational efficiency, economy, and effectiveness, and to encourage adherence to prescribed managerial policies that will accomplish the objectives of the organization. Liability - A debt of the business; an amount owed to creditors, employees, government bodies, others; a claim against assets. Modified Accrual Basis of Accounting - The accrual basis of accounting adapted to the government fund type under which revenues are recognized when they become both "measurable" and "available to finance expenditures of the current period." Expenditures are generally recognized when the related fund liability is incurred. Net Position - See Fund Balance O &M (Operations and Maintenance) - The Running Expense Fund. One -Time Revenue - Revenue that cannot reasonably be expected to continue, such as a single - purpose federal grants, an inter -fund transfer, or use of a reserve. Continual use of one -time revenues to balance the annual budget can indicate that the revenue base is not strong enough to support current service levels. OPEB (Other Post - Employment Benefits) - Benefits received by an employee when they retire, including medical, dental, and life insurance — but it does not include pension benefits. Operating Deficit - The amount by which current expenditures exceed current revenues. 191 GLOSSARY OF FINANCIAL TERMS For use with the 10 -year planning documents Overhead (Administrative Overhead and Non -Work Hours) - Administrative Overhead and Non -Work Hours include indirect costs and the value of time off (holidays, sick leave, vacation, etc.) These costs are expressed as a percent of salary. For District accounting, salaries and benefits are separate from overhead (whereas consulting firms typically view employee benefits in "overhead "). Indirect costs are costs that are incurred for a common or joint purpose benefiting more than one cost objective or task and that are not readily assignable. Pay -As- You -Go - A term used to describe paying expenses as they are incurred, as opposed to prepaying, pre- funding, or setting money aside for future expenses. Performance Measures - The specific, quantitative measures of work performed within an activity or program (e.g., total miles of pipes cleaned). Also, a specific, quantitative measure of results obtained through a program or activity (e.g., reduced incidence of overflows due to a new maintenance program). Pumping Capacity Fees - A component of connection fees for units that are located in areas tributary to one or more of the District's Sewer Pumping Stations. (See Connection Fees.) Reserves - See Funds Required or Funds Available. Reserve Policy (CCCSD uses Cash Reserve Guidelines) - A document outlining minimum reserve thresholds, identifying current and potential reserves, and explaining what the reserves are, or how the reserves will be used. Residential Unit Equivalent (RUE) - A measure of sewage volume and strength equivalent to a typical residential household. Restricted Revenue - Revenue that is legally earmarked for a specific use, as may be required by state law, bond covenants, or grant requirements. For instance, capacity fees must be used within the S/C Fund; the revenue cannot be transferred to OM Sinking Fund - A method by which a government may set aside money over time to pay for a project or obligation. Statement of Net Position (Balance Sheet prior to GASB 34) - A statement reporting the present financial position of an entity by disclosing the value of its assets, liabilities, and equities as of a specified date. Assets minus liabilities equal Net Position. Strategic Plan - A comprehensive plan, normally covering a 5 -10 year period, developed to guide delivery of specific services, identify future needs and challenges, and identify future infrastructure needs. E GLOSSARY OF FINANCIAL TERMS For use with the 10 -year planning documents UAAL (Unfunded Actuarial Accrued Liability) - A term used in connection with pension plans, it is the amount of excess of the actuarial accrued liability over the actuarial value of assets. The value may also be negative; a negative unfunded actuarial accrued liability is the excess of the actuarial value of assets over the actuarial accrued liability, or the funding excess. Unfunded Liability - A liability that has been incurred during the current or a prior year, that does not have to be paid until a future year, and for which reserves have not been set aside to meet this obligation. It is similar to a long -term debt in that it represents a legal commitment to pay at some time in the future. F