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Central Contra Costa Sanitary District
5019 Imhoff Place, Martinez, CA 94553
Comprehensive
Annual Financial Report
Sunrise over the Primary Treatment Tanks in Plant Operations.
CENTRAL CONTRA COSTA SANITARY
DISTRICT
MARTINEZ, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2014
Prepared By:
Finance & Accounting Division
CENTRAL CONTRA COSTA SANITARY DISTRICT
Comprehensive Annual Financial Report
Table of Contents
For the Year Ended June 30, 2014
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Letterof Transmittal ................................................................ ............................... i
Boardof Directors ................................................................. ............................... vii
MissionStatement ............................................................... ............................... viii
OrganizationChart ................................................................ ............................... ix
Map of Service Area .............................................................. ............................... x
Certificate of Achievement ...................................................... ..............................A
FINANCIAL SECTION:
Independent Auditors' Report ................................................ ............................... 1
Management's Discussion and Analysis ............................... ...............................
3
Basic Financial Statements
Last Ten Fiscal Years ......................................................... ............................S
Statement of Net Position .................................... ...............................
10 -11
Statement of Revenues, Expenses and Changes in Net Position ...........
13
Statement of Cash Flows ..................................... ...............................
14 -15
Notes to Financial Statements — The accompanying notes are an
Last Ten Fiscal Years ......................................................... ............................S
integral part of the basic financial statements ..... ...............................
17 -39
Supplementary Information
Last Ten Fiscal Years ...................................................... ...............................
Combining Schedule of Statement of Net Position ... ...............................
43
Combining Schedule of Statement of Revenues, Expenses and
Last Ten Fiscal Years ......................................................... ............................S
Changes in Net Position — Enterprise Sub - Funds ... ...............................
44
Schedule of Running Expenses - Comparison of Budget and Actual
Last Ten Fiscal Years ......................................................... ............................S
Expenses by Department ........................................ ...............................
45
Running Expense - Schedule of Supplemental Net Position Analysis
..... 46
STATISTICAL SECTION (Unaudited):
Changes in Net Position and Statement of Net Position -
Last Ten Fiscal Years ......................................................... ............................S
-1
Revenue by Type - Last Ten Fiscal Years ............................. ............................S
-2
Operating Expenses by Type - Last Ten Fiscal Years ........... ............................S
-3
Major Revenue Base and Rates - Historical and Current Fees -
Last Ten Fiscal Years ......................................................... ............................S
-4
Assessed and Estimated Actual Valuation of Taxable Property -
Last Ten Fiscal Years ...................................................... ...............................
S -5
Property Tax and Sewer Service Charge Fees Levied and Collected -
Last Ten Fiscal Years ......................................................... ............................S
-5
Sewer Service Charge — List of Ten Largest Customers -
Last Ten Fiscal Years ......................................................... ............................S
-6
Summary of Debt Service - Type, Debt Service Coverage, Debt Ratio -
Last Ten Fiscal Years ......................................................... ............................S -7
Demographic and Economic Data - Population Served -
Last Ten Calendar Years .................................................... ............................S -8
List of Ten Largest Employers in Contra Costa County -
Last Year and Eight Years Ago .......................................... ............................S -8
Demographic and Economic Statistics - Contra Costa County -
Last Ten Fiscal Years ...................................................... ............................... S -9
Full -time Equivalent Employees by Department - Last Ten Fiscal Years ........S -10
Number of Retirees and Surviving Spouses - Last Ten Fiscal Years ..............S -10
Capital Asset and Operating Statistics - Last Ten Calendar or Fiscal Years ... S -11
Miscellaneous Statistics ....................................................... ...........................S -11
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Q V
Central Contra Costa Sanitary District
Introductory
Section
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Aerial of the Martinez Treatment Plant, April, 2013.
Jl Central Contra Costa Sanitary District
November 12, 2014
Central Contra Costa Sanitary District Ratepayers and
The Honorable Board of Directors,
Martinez, California:
State law requires that every general - purpose local government publish within six
months of the close of each fiscal year a complete set of audited financial statements.
This report is published to fulfill that requirement for the fiscal year ended June 30,
2014.
Management of Central Contra Costa Sanitary District assumes full responsibility for the
completeness and reliability of the information in these financial statements, based upon
a comprehensive system of internal controls that is established for this purpose.
Because the cost of internal control should not exceed anticipated benefits, the
objective is to provide reasonable, rather than absolute, assurance that the financial
statements are free of any material misstatements.
Maze & Associates has issued an unqualified ( "clean ") opinion on the Central Contra
Costa Sanitary District's financial statements for the year ended June 30, 2014. The
independent auditor's report is located at the front of the financial section of this report.
Management's Discussion and Analysis report (MD&A) immediately follows the
independent auditor's report and provides a narrative introduction, overview, and
analysis of the basic financial statements. The MD &A complements this letter of
transmittal and should be read in conjunction with it.
PROFILE OF THE GOVERNMENT
History and Services Provided
The District was established in 1946 under the Sanitary District Act of 1923 and is
located about 30 miles east of San Francisco. The District builds, operates and
maintains the facilities required to collect and process wastewater for approximately
335,000 residents of Danville, Lafayette, Martinez, Moraga, Orinda, Pleasant Hill, San
Ramon, Walnut Creek and some of the unincorporated communities within Central
Contra Costa County. The District also treats wastewater for 135,900 residents of the
Cities of Concord and Clayton under a 1974 contract with the City of Concord.
0 Recycled Paper
The District is committed to protecting the public health and preserving the environment
while minimizing facility and operating costs. The District has approximately 1,500
miles of sewer pipeline, ranging in size from 6 inches to 102 inches in diameter, and 19
sewage - pumping stations (three of which are privately owned) in the District's sewage
collection system. The District is the sole provider of wastewater service within the
District limits (see map of service area). Residents make up the largest segment of the
District's customer base representing approximately 82% of the Sewer Service Charge
revenue. The District's treatment capacity has grown from 4.5 million gallons per day
(mgd) initiated in 1948 to 53.8 mgd currently. Bonds, state grants, federal grants, and
pay -as- you -go resources of the District have financed expansions.
The District also provides an alternative source of water for irrigation by producing high
quality recycled water. Recycled water can safely be used on freeway landscaping,
street medians, golf courses, athletic fields, parks, playgrounds, schoolyards and multi-
family residential common areas.
In addition to its wastewater responsibility, the District also teamed with Mountain View
Sanitary District and other local governments to build and operate the first permanent
Household Hazardous Waste (HHW) Collection Facility in Contra Costa County. The
HHW Collection Facility is located adjacent to the District's wastewater treatment plant
and seeks to keep pollutants out of the sewer system, making this facility an important
part of our Pollution Prevention Program. Completing its seventeenth year of operation,
the HHW currently serves over 30,000 residential and small business customers, from
which over 2 million pounds of hazardous waste is collected and properly disposed of
each year.
Organization, Accounting and Budgetary Controls
A 5- member Board of Directors governs the District. Board members are elected on a
non - partisan basis and serve a four -year term. The Board appoints the General
Manager, who in accordance with policies established by the Board of Directors,
manages District affairs. The District employs 261 regular employees organized in four
departments led by Managers responsible for their budgets and expenses. The four
departments are: Administrative, Engineering, Collection Systems, and Plant
Operations.
The District by law uses an enterprise fund to account for the operations of the District,
which is run in a manner similar to private industry. The District currently has one
enterprise fund which is comprised of four internal sub - funds:
■ Running Expense - accounts for the general operations of the District.
Substantially all operating revenues and expenses are accounted for in this fund
(also referred to as Operations & Maintenance or O &M).
• Sewer Construction - accounts for non - operating revenues that are to be used for
acquisition or construction of plant, property, and equipment (also referred to as the
Capital Fund).
• Self- Insurance - accounts for interest earnings on cash balances in this sub -fund
and cash allocations from other funds, as well as costs of insurance premiums and
claims not covered by the District's insurance policies.
• Debt Service — accounts for activity associated with the payment of the District's
long term bonds and loans.
Each year, the Board adopts the following four budgets: Operations and Maintenance,
Capital Improvement and Sewer Construction, Self- Insurance, and Debt - Service. The
Board Finance Committee reviews disbursements prior to each regular Board meeting,
and disbursements are then approved by the full Board. Monthly financial statements
are issued to management and the Board. A detailed mid -year and annual budget
analyses are prepared and presented to the Board. District management is
accountable for variances and adhering to budget constraints. The District also has
several documented financial policies that are reviewed and updated as appropriate.
ASSESSING THE DISTRICT'S ECONOMIC CONDITION
Local Economy and Outlook
U.S economic indicators continue to be positive as sustained GDP growth, declining
unemployment rate, increase in consumer spending and a strong housing market are
generating an optimistic economic outlook for the nation as a whole. California
continues to lead the U.S. in employment growth. According to the Legislative Analyst's
Office (LAO) the state economy is projected to produce a greater surplus than was
anticipated. Higher revenues generated from capital gains and stronger- than - expected-
stock - growth which in turn increases personal income tax (PIT) has largely contributed
to the revised upward forecast. The voter approved Proposition 30 to temporarily
increase sales tax by '/4 percent is also contributing to the strong revenue stream. The
surge of revenue has allowed the state to increase spending on education, pay down
debt, and increase reserve for the future.
According to UCLA Anderson forecast the Bay Area, led by the technology sector in
particular, have outperformed the rest of the state in economic growth. Steady job
growth has increased consumer and government spending as well as spending on
commercial and residential real estate market. Foreclosures have declined dramatically
and existing single - family home prices continue to rise. New construction activities of
commercial and residential units are commonly seen throughout the Bay Area counties.
Interest rates on mortgages continue to be low to keep the housing market attractive to
potential buyers.
The District continues to benefit from the strong housing market. Large construction
projects in the East Bay, especially in the City of Walnut Creek, have steadily increased
the stream of sewer service charge revenue. Residential and commercial vacancies
have been replaced with a positive growth resulting in a favorable revenue growth. The
District and the bargaining units have agreed on a 5 -year contract that will be in effect
until December of 2017. The contract continues the bulk of employee retirement cost
being paid by the District. Payment of the unfunded liability is a major financial concern
for the District as it is for many public entities. An additional payment for UAAL is
included as part of the financial plan for the District to alleviate future fiscal obligation of
the unfunded liability. The District has an excellent reputation in all areas of public
service, which include finance, collection, treatment, training, safety, technology, capital
projects, construction and customer service. The Central Contra Costa Sanitary District
has balanced revenue sources, adequate reserves, and a moderate debt obligation.
CCCSD reviews its rates and other charges annually. The District can increase its
sewer service charge rates when needed to make up revenue shortfalls by providing
public notice to all customers, holding a Public Hearing, and obtaining approval by the
Board of Directors. The District is also able to obtain bond financing, as needed, due to
the District's AAA bond rating. The District anticipates that it will continue to meet its
mission and goals, continue to provide excellent customer service and reasonable rates
to its customers, and meet compliance requirements given the current economic
conditions.
Long Term Financial Planning
District management analyzes and updates their strategic plan annually, with the six
main goals being: providing exceptional customer service, maintaining full regulatory
compliance, maintaining responsible rates, continuing to be a high performance
organization, maximize human resources, and maintain a reliable wastewater
infrastructure. Strategies to achieve each of the goals are developed, as well as metrics
to evaluate success. The District performs a 10 -year long -term cash flow forecast each
year shortly before the budget process begins. The main economic factors considered
in long range forecasting are: the impact of state legislation and mandates, regulatory
compliance, GASB requirements, negotiated salary increases and employee benefits
including significant increases in retirement and health care costs, energy costs and
interpreting the energy market, housing growth, and infrastructure renewal and
replacement needs. The District has a significant amount of unfunded actuarial liability
for both pension and other post employment costs (OPEB) and various options for
managing these liabilities are explored in the financial planning process.
Relevant Financial Policies
Investment Policy: The District's investment policies for District assets and GASB 45
Trust are reviewed and approved annually by the Board of Directors in accordance with
District investment policy. Section 53646 of the California Government Code governs
our investment practices, and is reviewed annually by staff, legal counsel and the
Board. No required changes were necessary. The Board receives monthly financial
statements that include District investment performance. Since 2008, the GASB 45
Trust investments are in a moderate investment strategy fund. The Board Budget and
Finance Committee reviews GASB 45 Trust quarterly financial statements to monitor
the District's investment strategy in the current volatile economy.
Major Initiatives
The District's vision is to be a high - performance organization that provides exceptional
customer service and full regulatory compliance at responsible rates. Full regulatory
compliance is provided through exceptional operation of our collection system and
treatment facilities, as well as through continued investment in our infrastructure. Our
iv
current capital plan has an emphasis on renovation, particularly in the collection system,
in order to improve service, and fix deteriorating pipes and pumping stations before they
can contribute to a sewer system overflow. Both at the state and federal level,
regulations addressing sewer system overflows and public notification have become
increasingly stringent over the last several years. Collection system operations was
enhanced by the newly constructed administration /crew /warehouse building, which was
designed to be LEED certified and incorporates many green design features. LEED
represents "Leadership in Energy and Environmental Design," which is administered by
the U.S. Green Building Council.
Our capital plan is also addressing primary treatment plant reliability through design and
construction of several recently completed projects. The Walnut Creek Sewer
Renovation Phase 9, allowed the District to replace /rehabilitate approximately 10,000
feet of 6 -inch through 12 -inch sewer pipe at several different sites throughout the City of
Walnut Creek, unincorporated County and other neighboring areas. A second project,
the Wet Weather Bypass Improvement Project, will ensure that extreme wet weather
flows that overwhelm the capacity of the plant outfall and holding ponds can be
discharge to Walnut Creek. These projects are supplemented with treatment plants
renovation projects to increase safety and replace other plant infrastructure.
AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association of the United States and Canada
(GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to
the Central Contra Costa Sanitary District for its comprehensive annual financial report
for the fiscal year ended June 30, 2013. This was the fourteenth consecutive year that
the District has achieved this prestigious award. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our
current comprehensive annual financial report continues to meet the program's
requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
This report could not have been accomplished without the dedication and commitment
provided by District staff. I would like to express my appreciation to the following
employees who assisted in its preparation:
• The Finance and Accounting staff who compiled the information contained in this
document with a special thanks to Jamie King and Amal Lyon, Accountants, and
Todd Smithey, Finance Administrator.
• The Reproduction and Graphics Team who creatively and professionally prepared
this finished document.
• Engineering and Operations staff who provided much of the statistical information
included in this document.
• The District's Board of Directors and Management Team for their support in
preparing this document as well as their day -to -day support in conducting the
financial operations of the District in a prudent and responsible manner.
Respectfully submitted,
Thea Vassallo
Finance Manager
Vi
CENTRAL CONTRA COSTA SANITARY DISTRICT
BOARD OF DIRECTORS
June 30, 2014
David R. Williams ........................ ......................President
Michael R. McGill ............................... President Pro -Tem
Paul H. Causey .......................... .........................Member
James A. Nejedly ................. ............................... Member
Tad J. Pilecki ....................... ............................... Member
Vii
MISSION, VISION,
AND VALUES
ESTABLISHED IN 1946,
THE CENTRAL CONTRA COSTA SANITARY DISTRICT (CCCSD) IS A SPECIAL ENTERPRISE
DISTRICT WITH A FIVE - MEMBER ELECTED BOARD OF DIRECTORS.
CCCSD COLLECTS AND TREATS THE WASTEWATER OF 471.000 RESIDENTS AND MORE THAN
5.000 BUSINESSES IN 11 CITIES IN CENTRAL CONTRA COSTA COUNTY.
OUR MISSION
TO PROTECT PUBLIC HEALTH AND THE ENVIRONMENT BY:
COLLECTING AND TREATING WASTEWATER
EMBRACING A POLICY OF SUSTAINABILITY FOR THE
RESPONSIBLE USE OF EXISTING RESOURCES
PROMOTING ENVIRONMENTAL STEWARDSHIP
OUR VISION
TO BE A HIGH - PERFORMANCE ORGANIZATION THAT
PROVIDES EXCEPTIONAL CUSTOMER SERVICE AND
FULL REGULATORY COMPLIANCE AT RESPONSIBLE RATES
OURVALUES
WE ACHIEVE SUCCESS BY VALUING:
EACH OTHER
ETHICS AND INTEGRITY
A HEALTHY AND SAFE ENVIRONMENT
COMMUNITY RELATIONSHIPS
THE MEETING OF COMMITMENTS
TRANSPARENCY IN ALL WE DO
w�� Dkbld viii
002i-il /14
CENTRAL CONTRA COSTA SANITARY DISTRICT
Organization Chart - Composite
Purchasing &
Materials Svcs.
Human
Resources
Communication li
Services
I
Field
Operations
Technical
Services
Central Contra Costa Sanitary District
Map of Service Area
June 30, 2014
Benicia
San
Pablo Suisun Bay
Bay
O
Hercules 0 5❑ O Pittsburg
i1 3❑
Martinez •
6
Concord Antioch
Pleasant Hill
Clayton
❑ Pumping Station
40 CCCSD's Headquarters Office Building, El Privately Owned Pumping Station
Treatment Plant, and HHW Collection Facility
CCCSD's Collection System Operations
Department (sewer maintenance)
Wastewater collection and treatment and
HHW collection for 335,000 people
Wastewater treatment and HHW collection
for 135,900 residents in Concord and Clayton
by contract
HHW disposal services only
x
4
CCCSD Pumping Stations
®
1.
Walnut Creek
11.
Lower Orinda
2.
9
12.
Bates Blvd. - Orinda
3.
Maltby
13.
1011 12
Lafayette
Clyde
14.
Via Robles
5.
13
15.
Moraga
6.
Buchanan Field North
Berkeley
Orinda
7.
Buchanan Field South
PRIVATELY OWNED:
8.
O
-
Wagner Ranch
Alamo "
Acacia
18.
Lower Wilder
10.
Moraga
19.
Upper Wilder
Danville
Oakland
San Ramon
San
Francisco
N
Bay
0
2
m
Miles
❑ Pumping Station
40 CCCSD's Headquarters Office Building, El Privately Owned Pumping Station
Treatment Plant, and HHW Collection Facility
CCCSD's Collection System Operations
Department (sewer maintenance)
Wastewater collection and treatment and
HHW collection for 335,000 people
Wastewater treatment and HHW collection
for 135,900 residents in Concord and Clayton
by contract
HHW disposal services only
x
4
CCCSD Pumping Stations
1.
Martinez
11.
Lower Orinda
2.
Fairview
12.
Bates Blvd. - Orinda
3.
Maltby
13.
Orinda Crossroads
4.
Clyde
14.
Via Robles
5.
Concord Industrial
15.
Moraga
6.
Buchanan Field North
16.
San Ramon
7.
Buchanan Field South
PRIVATELY OWNED:
8.
Sleepy Hollow
17.
Wagner Ranch
9.
Acacia
18.
Lower Wilder
10.
Flush Kleen
19.
Upper Wilder
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Central Contra Costa Sanitary District
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2013
Executive Director /CEO
A
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Central Contra Costa Sanitary District
Financial
Section
JV, M ACZTE
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
Central Contra Costa Sanitary District
Martinez, California
Report on Financial Statements
We have audited the accompanying financial statements of the Central Contra Costa Sanitary District
(District) as of and for the years ended June 30, 2014 and 2013, and the related notes to the financial
statements, which collectively comprise the District's basic fmancial statements as listed in the Table of
Contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of the financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audits to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor's judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the District's preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the District's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audits evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the Central Contra Costa Sanitary District as of June 30, 2014 and 2013, and the changes in
financial position and cash flows for the years then ended in conformity with accounting principles
generally accepted in the United States of America.
T 925.930.0902
Accountancy Corporation F 925.930.0135
3478 Buskirk Avenue, Suite 215 a maze @mazeassociates.com
Pleasant Hill, CA 94523 w mazeassociates.com
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management's
Discussion and Analysis be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting Standards
Board, who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods of
preparing the information and comparing the information for consistency with management's responses to
our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District's basic financial statements as a whole. The Introductory Section, Supplemental
Information and Statistical Section, as listed in the Table of Contents are presented for purposes of
additional analysis and are not required parts of the basic financial statements.
The Supplemental Information is the responsibility of management and was derived from and relates
directly to the underlying accounting and other records used to prepare the financial statements. The
information has been subjected to the auditing procedures applied in the audit of the financial statements and
certain additional procedures, including comparing and reconciling such information directly to the
underlying accounting and other records used to prepare the financial statements or to the financial
statements themselves, and other additional procedures in accordance with generally accepted auditing
standards in the United States of America. In our opinion, the Supplemental Information is fairly stated in
all material respects in relation to the basic financial statements as a whole.
The Introductory and Supplemental Sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
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Pleasant Hill, California
September 18, 2014
E
Central Contra Costa Sanitary District
MANAGEMENT'S DISCUSSION AND ANALYSIS
This section of the Central Contra Costa Sanitary District's annual financial report presents an analysis
of the District's financial performance during the fiscal year ended June 30, 2014. This information is
presented in conjunction with the audited financial statements, which follow this report.
FINANCIAL HIGHLIGHTS
The District's 2013 -14 financial highlights are listed below. These results are discussed in more detail
later in the report.
• The District's total ending net position increased by $8.6 million or 1.36 % in 2013 -14. This is
mainly due to capital project asset additions.
• Total revenues in 2013 -14 increased by $5.3 million or 6.31 %. The total Sewer Service Charge
(SSC) rate was increased and a larger portion of the internal SSC allocation was shifted from
Operating Revenues to Capital Contributions.
• Total 2013 -14 expenses increased by $11.0 million or 12.11 %. This is mainly due to higher cost
of total labor, depreciation and technical services.
• Capital Contributions increased in 2013 -14 by $5.1 million or 34.20 %. The increase is mainly
due to the SSC rate increase and higher connection fees.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report includes the Management's Discussion and Analysis report, the independent auditor's
report and the basic financial statements of the District. The financial statements also include notes that
explain information in the financial statements in more detail. This report also contains other
supplementary information in addition to the basic financial statements.
REQUIRED FINANCIAL STATEMENTS
The District's financial statements report information utilizing methods similar to those used by private
sector companies. These statements offer short and long -term financial information about the District's
activities.
Statement of Net Position — reports the District's current financial resources (short-term
spendable resources) with capital assets and long -term obligations.
• Statement of Revenues, Expenses and Changes in Net Position — reports the District's
operating and non - operating revenues by major source along with operating and non - operating
expenses and capital contributions.
• Statement of Cash Flows — reports the District's cash flows from operating activities, non-
capital financing activities, capital and related financing activities, investing activities, and non-
cash activities.
STATEMENT OF NET POSITION
The following table shows the condensed statement of net position of the Central Contra Costa Sanitary
District for the past three fiscal years:
Condensed Statement of
Net Position
% Increase
Fiscal Year Ended June 30
FY 13 -14 FY 13 -14
vs. vs.
2013 -14 2012 -13 2011 -12 FY 12 -13 11 -12
Current Assets
$ 79,291,642
$ 78,006,233
$ 78,506,812
1.65%
1.00%
Capital Assets
608,583,268
603,985,469
597,689,744
0.76%
1.82%
Other Non - current Assets
8,621,042
9,454,886
9,332,364
-8.82%
-7.62%
Total Assets
696,495,952
691,446,588
685,528,920
0.73%
1.60%
Current Liabilities
12,145,509
11,704,101
11,128,540
3.77%
9.14%
Non - Current Liabilities
40,004,777
44,027,490
47,797,407
-9.14%
- 16.30%
Total Liabilities
52,150,286
55,731,591
58,925 947
-6.43%
- 11.50%
Net Investment in
Capital Assets
568,006,023
559,523,642
549,462,506
1.52%
3.37%
Restricted - Debt Service
4,809,248
4,730,837
4,663,601
1.66%
3.12%
Unrestricted
71,530,395
71,460,518
72,476,866
0.10%
-1.31%
Total Net Position
$ 644,345,666
$ 635,714,997
$ 626,602,973
1.36%
2.83%
The total net position of the District increased from $626.6 million in 2011 -12 to $635.7 million in
2012 -13 and to $644.3 million in 2013 -14. The District's total assets have increased by $5.0 million or
0.73% compared to 2012 -13, and $10.9 million or 1.6% compared to 2011 -12. The total liabilities
decreased $3.6 million or -6.43% compared to 2012 -13, and decreased $6.8 million or - 11.50%
compared to 2011 -12. The increase in net position over the three -year period totals $17.7 million or
2.83% and is the result of the combination of net income and capital contributions.
By far the largest portion of the District's net position (88.15% percent) reflects its investment in capital
assets (e.g. land, buildings, machinery, equipment, intangible assets, and sewer line infrastructure), less
any related debt used to acquire those assets that are still outstanding. The District uses these capital
assets to provide services to its ratepayers; consequently, these assets are not available for future
spending. Although the District's investment in its capital assets is reported net of debt, it should be
noted that the funds needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities. There is currently $4.8 million restricted
for debt service. The remaining balance of $71.5 million in unrestricted net position may be used to
meet the District's ongoing obligations to its ratepayers and creditors. The unrestricted net position may
also be used for payment of long -term unfunded liabilities.
4
REVIEW OF REVENUES EXPENSES AND CHANGES IN NET POSITION
The table below shows the condensed statement of revenues, expenses, and changes in net position for
the District for the past three fiscal years:
Condensed Statement of
Revenues, Expenses, and % Increase
Changes in Net Position Fiscal Year Ended June 30 (Decrease)
FY 13 -14 FY 13 -14
vs. vs.
2013 -14 2012 -13 2011 -12 FY 12 -13 11 -12
Sewer Service Charges (SSC)
$ 72,422,285
$ 67,254,405
$ 59,771,237
7.68%
21.17%
Other Service Charges and
Miscellaneous
1,579,723
1,828,281
1,845,402
- 13.60%
- 14.40%
Total Operating Revenue
74,002,008
69,082,686
61,616,639
7.12%
20.10%
Property Tax
13,093,841
13,010,477
12,047,169
0.64%
8.69%
Permit & Inspection Fees
1,575,251
1,169,809
903,810
34.66%
74.29%
Interest and All Other
1,291,752
1,356,574
1,226,598
- 4.78%
5.31%
Total Non - Operating
Revenues
15,960,844
15,536,860
14,177,577
2.73%
12.58%
Total Revenues
89,962,852
84,619,546
75,794,216
6.31%
18.69%
Total Labor and Benefits
58,954,453
49,811,218
45,562,430
18.36%
29.39%
Chemicals & Utilities
6,002,514
5,420,789
6,090,408
10.73%
- 1.44%
Repairs and Maintenance
3,126,617
3,151,127
3,068,604
-0.78%
1.89%
Professional, Legal and
Outside Services
3,995,861
2,836,638
4,099,876
40.87%
-2.54%
Materials & Supplies
2,060,796
1,980,314
2,031,401
4.06%
1.45%
Hauling and Disposal
914,739
1,088,294
1,009,137
- 15.95%
-9.35%
Self- Insurance Expense
858,738
2,380,466
810,849
- 63.93%
5.91%
All Other
1,702,131
472,630
1,612,482
260.14%
5.56%
Depreciation Expense
21,892,545
21,596,266
21,190,059
1.37%
3.32%
Total Operating Expenses
99,508 394
88,737,742
85,475,246
12.14%
16.42%
Non - Operating Expense -
Interest Expense
1,996,689
1,802,084
1,919,375
10.80%
4.03%
Total Expenses
101,505,083
90,539 826
87,394,621
12.11%
16.15%
Income Before Capital
Contributions
11,542,231
5,920,280
11,600,405
- 94.96%
0.50%
Customer Contributions (SSC)
10,486,067
8,001,147
8,888,663
31.06%
17.97%
Contributed Sewer Lines
1,462,316
939,628
792,011
55.63%
84.63%
Capital Contributions -
Connection Fees
8,224,517
6,091,529
5,724,833
35.02%
43.66%
Total Capital Contributions
20,172,900
15,032,304
15,405,507
34.20%
30.95%
Change in Net Position
8,630,669
9,112,024
3,805,102
- 5.28%
126.82%
Beginning Net Position
635,714,997
626,602,973
622,797,871
1.45%
2.07%
Ending Net Position
$ 644,345,666
$ 635,714,997
$ 626,602,973
1.36%
2.83%
Revenue
Total operating revenues increased from $61.6 million in 2011 -12 to $69.1 million in 2012 -13 and to
$74.0 million in 2013 -14. Operating revenues increased by $4.9 million or 7.12% compared to 2012 -13,
and increased by $12.4 million or 20.10% comparing 2013 -14 to 2011 -12.
Total non - operating revenue increased from $14.2 million in 2011 -12 to $15.5 million in 2012 -13 and to
$16.0 million in 2013 -14. An increase compared to 2012 -13 by $0.4 million or 2.73 %, and increased by
$1.8 million or 12.58% comparing 2013 -14 to 2011 -12.
Total revenues increased from $75.8 million in 2011 -12 to $84.6 million in 2012 -13 to $90.0 million in
2013 -14. The change in total revenue resulted in an increase of $5.3 million or 6.31% comparing 2013-
14 to 2012 -13, and increased by $14.2 million or 18.69% comparing 2013 -14 to 2011 -12. There was a
9.16% SSC rate increase in 2013 -14, 8.80% SSC rate increase in 2012 -13 and 9.65% increase in SSC
for 2011 -12. Property tax revenue increased by $0.1 million or 0.64% from 2013 -14 to 2012 -13, and
$1.0 million or 8.69% comparing 2013 -14 to 2011 -2012 due to the recovery of housing values and
Proposition IA monies repaid in 2013 -14.
Expenses
Total expenses increased from $87.4 million in 2011 -12 to $90.5 million in 2012 -13 and to $101.5
million in 2013 -14. In 2013 -14, total expenses increased by $11.0 million or 12.11% compared to 2012-
13. Comparing 2013 -14 to 2011 -12, total expenses were $14.1 million or 16.15% higher. Increases
were mainly due to higher labor and benefit costs along with technical services for temporary staff.
Labor costs increased due to employee benefit costs (primarily pension and healthcare costs), cost -of-
living adjustments, merit increases, and filling of vacant positions. Depreciation expense increased due
to new capital additions. Non - operating expense is mainly driven by debt service interest expense.
Total income before capital contributions went from -$11.6 million in 2011 -12, to -$5.9 million in 2012-
13, and -$11.5 million in 2013 -14.
Total capital contributions in 2013 -14 were $20.2 million compared to $15.0 million in 2012 -13 and
$15.4 million in 2011 -12. This was mainly due to higher customer contributions SSC in 2013 -14 due to
the 9.16% rate increase, a shift of the internal SSC revenue allocation, and volatility in connection fees
due to the fluctuation of the housing and construction markets. The total change in net position
decreased by -$0.5 million or -5.28% when comparing 2013 -14 to 2012 -13 and increased $4.8 million or
126.82% when comparing 2013 -14 to 2011 -12.
CAPITAL ASSETS
Capital assets for fiscal years 2013 -14, 2012 -13 and 2011 -12 totaled $608.6 million, $604.0 million, and
$597.7 million, respectively. Capital assets include the District's entire major infrastructure including
wastewater treatment facilities, sewers, land, buildings, pumping stations, vehicles, intangible assets and
furniture and equipment exceeding our capitalization policy limit of $5,000, net of depreciation. As of
June 30, 2014, the District's investment in capital assets totaled. $608.6 million, an increase of $4.6
million or 0.76% over the capital asset balance of $604.0 million at June 30, 2013. Capital assets
increased by $10.9 million or 1.82% comparing 2013 -14 to 2011 -12. A comparison of the District's
capital assets over the past three fiscal years is presented below:
6
% Increase
Capital Assets Fiscal Year Ended June 30 (Decrease)
FY 13 -14 FY 13 -14
vs. vs.
2013 -14 2012 -13 2011 -12 FY 12 -13 11 -12
Land
$ 17,320,570
$ 17,262,249
$ 17,114,720
0.34%
1.20%
Sewage Collection System
318,206,017
311,633,989
303,693,519
2.11%
4.78%
Contributed Sewer Lines
152,297,246
150,834,930
149,895,302
0.97%
1.60%
Outfall Sewers
11,339,298
11,338,935
8,518,443
0.00%
33.11%
Sewage Treatment Plant
303,606,835
299,830,466
292,432,883
1.26%
3.82%
Recycled Water Infrastructure
17,127,656
13,515,026
13,335,295
26.73%
28.44%
Pumping Stations
54,956,574
54,412,730
54,412,730
1.00%
1.00%
Buildings
42,196,085
36,120,720
34,477,124
16.82%
22.39%
Intangible Assets
4,812,127
4,596,467
2,463,834
4.69%
95.31%
Furniture & Equipment
10,025,826
15,651,212
14,031,564
- 35.94%
- 28.55%
Motor Vehicles
6,721,031
6,558,065
6,010,773
2.48%
11.82%
Construction In Progress
27,508,158
24,533,254
22,469,694
12.13%
22.42%
Subtotal
966,117,423
946,288,043
918,855,881
2.10%
5.14%
Less Accumulated
Depreciation
357,534,155
342,302,574
321,166,137
4.45%
11.32%
Total Capital Assets (net of
depreciation)
$ 608,583,268
$ 603,985,469
$ 597,689,744
0.76%
1.82%
The major reasons for the increase in capital assets, net of depreciation, of $4.6 million from 2012 -13 to
2013 -14 and $10.9 million from 2011 -12 to 2013 -14, are as follows:
• Sewer pipe ongoing renovations, upgrades, expansion, pumping station improvements, and
contributed sewer lines increased by $8.6 million comparing 2013 -14 to 2012 -13 and $17.5
million comparing 2013 -14 to 2011 -12.
• Treatment plant infrastructure renovations, upgrades, equipment, and improvements increased by
$3.8 million comparing 2013 -14 to 2012 -13 and $11.2 million comparing 2013 -14 to 2011 -12.
• Buildings increased by $6.1 million comparing 2013 -14 to 2012 -13 and $7.7 million comparing
2013 -14 to 2011 -12.
• All other asset categories, including construction in progress, increased by $1.4 million
comparing 2013 -14 to 2012 -13 and increased by $10.9 million comparing 2013 -14 to 2011 -12.
• Capital asset increases are offset by an increased subtraction of accumulated depreciation of
$15.2 million comparing 2013 -14 to 2012 -13 and $36.4 million comparing 2013 -14 to 2011 -12
due to increasing capital asset investment and its associated depreciation expense.
See Note 5 in the audited financial statements.
VA
DEBT ADMINISTRATION
The total debt obligations for fiscal years 2013 -14, 2012 -13 and 2011 -12 totaled $40.5 million, $44.5
million, and $48.2 million, respectively. As of June 30, 2014, the District's outstanding debt totaled
$40.5 million, which is a decrease of $3.9 million or -8.74% over the debt balance of $44.5 million at
June 30, 2013. Debt decreased by $7.6 million or - 15.86% comparing 2013 -14 to 2011 -12. The 2009
certificates of participation and the 1999 State Water Resources Control Board Water Reclamation Loan
principal and related interest for both decrease annually due to the scheduled principal payments. The
District did not issue any new debt this fiscal year. The source of funds for repayment of debt issued for
expansion purposes is the state property taxes received. A comparison of the District's debt service for
the past three fiscal years is presented below:
Debt Service Fiscal Year Ended June 30 % Increase (Decrease)
FY 13 -14 FY 13 -14
vs. vs.
2013 -14 2012 -13 2011 -12 FY 12 -13 11 -12
Revenue Bonds
$ 39,875,000
$ 43,595,000
$ 47,200,000
- 8.53 %
- 15.52%
Water Reclamation Loan
702,245
866,827
1,027,238
- 18.99%
- 31.64 %
Total Debt Service
$ 40,577,245
$ 44,461,827
$ 48,227,238
-8.74%
- 15.86%
See Note 6 in the audited financial statements.
ECONOMIC AND OTHER FACTORS
The Federal and State of California economies continue to recover from the 2008 recession. The
Federal economic challenges have resulted in budget sequestration. The State Budget Act reflects
California achieving a solid balanced budget, however, there remain a number of major risks that
threaten the state's fiscal stability, including the overhang of fiscal debts, growing long -term liabilities,
and lingering uncertainties regarding the cost of the federal Affordable Care Act. The recent agreement
between the Governor and legislative leaders to create a Rainy Day Fund will help the state minimize
future boom and bust cycles. Changes in the state budget have a significant impact on the District.
Federal and State economic challenges will continue into the future and will have a trickle -down effect
on local government.
Items impacting the District are:
• Current Employee Memorandum of Understanding contracts end as of December 17, 2017.
• Current and future legislation impacting public employee pensions is in play, also calling for
higher employee contributions and lower pensions by eliminating spiking.
• Increased cost of employee benefits, mainly due to pension costs and healthcare.
• Housing market continues to show improvement which impacts the District's property tax
revenues, and development and user fees.
• Regulatory requirements becoming more stringent, causing the District to spend more on
compliance, both for operations and maintenance costs and capital projects. This may require
debt financing for large capital projects.
• Continued low interest rates negatively impact interest earnings for District temporary
investments as well as OPEB trust and pension plan assets.
In addition to making efforts to reduce spending and improve process efficiencies, the District has the
ability to raise the SSC to meet its long -term commitments. The District has a Standard and Poor's
AAA rating, and can obtain bond financing if necessary.
FINANCIAL CONTACT
The financial report is designed to provide the District's customers and creditors with a general
overview of District finances and to demonstrate the District's accountability for the money it receives.
If you have questions about this report or need additional financial information, contact: Finance
Manager Thea Vassallo, Central Contra Costa Sanitary District, 5019 Imhoff Place, Martinez, CA
94553.
0
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF NET POSITION
JUNE 30, 2014 AND 2013
ASSETS
CURRENT ASSETS
Cash and cash equivalents (Note 2)
Short term investments (Note 2)
Accounts receivable, net (Note 3)
Interest receivable
Parts and supplies
Prepaid expenses
Total current assets
NON - CURRENT ASSETS
Restricted cash and equivalents (Notes I.E. and 2)
Restricted investments (Note 2)
Assessment Districts receivable (Note 4)
Net OPEB asset (Note 10)
Revenue bonds issuance costs, net of amortization (Note 1.L.)
Capital assets:
Nondepreciable (Note 5)
Depreciable, net of accumulated depreciation (Note 5)
Total capital assets, net
Total non - current assets
TOTAL ASSETS
10
2014 2013
$47,929,530
$46,714,788
9,993,211
10,498,624
16, 944, 993
16, 517, 549
31,081
65,321
2,088,885
2,005,741
2,303,942
2,204,210
79,291,642 78,006,233
100,000
100,000
5,474,874
5,412,500
1,838,490
2,089,461
1,207,678
1,537,638
-
315,287
49,640,855
41,795,503
558,942,413
562,189,966
608,583,268
603,985,469
617,204,310 613,440,355
$696,495,952 $691,446,588
(Continued)
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF NET POSITION
JUNE 30, 2014 AND 2013
LIABILITIES 2014 2013
CURRENT LIABILITIES
Accounts payable and accrued expenses $5,842,430 $5,376,935
Interest payable 673,380 718,147
Refunding Water Revenue Bonds - current portion (Note 6) 3,865,000 3,720,000
Water Reclamation Loan Contract - current portion (Note 6) 168,861 164,582
Accrued compensated absences - current portion (Note 1.I.) 385,000 383,000
Provision for uninsured claims (Note 7) 1,000,000 1,000,000
Refundable deposits 210,838 341,437
Total current liabilities 12,145,509 11,704,101
NON - CURRENT LIABILITIES
Refunding Water Revenue Bonds, noncurrent portion (Note 6) 36,010,000 39,875,000
Water Reclamation Loan Contract, noncurrent portion (Note 6) 533,384 702,245
Accrued compensated absences, noncurrent portion (Note 1.I.) 3,461,393 3,450,245
Total non - current liabilities 40,004,777 44,027,490
TOTAL LIABILITIES 52,150,286 55,731,591
NET POSITION (Note 11)
Net investment in capital assets 568,006,023 559,523,642
Restricted for debt service 4,809,248 4,730,837
Unrestricted 71,530,395 71,460,518
TOTAL NET POSITION $644,345,666 $635,714,997
See accompanying notes to financial statements
11
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CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FOR THE YEARS ENDED TUNE 30, 2014 AND 2013
OPERATING EXPENSES
Sewage collection and pumping stations
2014
2013
OPERATING REVENUES
27,808,819
23,035,943
Sewer service charges (SSC)
$60,796,421
$56,770,984
Service charges - City of Concord (Note 8)
11,625,864
10,483,421
Other services charges
1,035,134
1,076,401
Miscellaneous charges
544,589
751,880
88,737,742
Total operating revenues
74,002,008
69,082,686
OPERATING EXPENSES
Sewage collection and pumping stations
16,109,927
14,327,933
Sewage treatment
27,808,819
23,035,943
Engineering
12,308,802
8,680,934
Administrative and general
21,388,301
21,096,666
Depreciation
21,892,545
21,596,266
Total operating expenses
99,508,394
88,737,742
OPERATING (LOSS)
(25,506,386)
(19,655,056)
NONOPERATING REVENUES (EXPENSES)
Taxes 13,093,841 13,010,477
Permit and inspection fees 1,575,251 1,169,809
Interest earnings 359,288 405,474
Interest expense (1,996,689) (1,802,084)
Other income (expense) 932,464 951,100
Total nonoperating revenues (expenses), net 13,964,155 13,734,776
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS (11,542,231) (5,920,280)
CAPITAL CONTRIBUTIONS
City of Concord contributions to capital costs (Note 8) 3,820,858 3,616,771
Customer contributions to capital cost (SSC) 6,665,209 4,384,376
Contributed sewer lines (Note 5) 1,462,316 939,628
Capital contributions - connection fees 8,224,517 6,091,529
Total capital contributions 20,172,900 15,032,304
CHANGE IN NET POSITION 8,630,669 9,112,024
NET POSITION, BEGINNING OF YEAR 635,714,997 626,602,973
NET POSITION, END OF YEAR $644,345,666 $635,714,997
See accompanying notes to financial statements
13
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 2014 AND 2013
2014 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $73,825,535 $67,716,388
Payments to suppliers (43,766,726) (36,581,237)
Payments to employees and related benefits (33,353,995) (29,929,031)
Net Cash Provided (Used) by Operating Activities (3,295,186) 1,206,120
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Receipt of taxes 13,093,841 13,010,477
Inspection/permit fees and other non - operating income 2,507,715 2,120,909
Cash Flows from Noncapital Financing Activities 15,601,556 15,131,386
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contributions 11,948,383 8,940,775
Connection fees 8,224,517 6,091,529
Acquisition and construction of capital assets (26,490,344) (27,891,991)
Interest paid on long -term debt (1,726,169) (1,838,134)
Principal payments on long -term debt (3,884,582) (3,448,341)
Cash Flows (Used for) Capital and Related Financing Activities (11,928,195) (18,146,162)
CASH FLOWS FROM INVESTING ACTIVITIES
Redemption and acquisition of investments, net 443,039 5,606,506
Interest received 393,528 395,301
Cash Flows from Investing Activities 836,567 6,001,807
NET INCREASE (DECREASE) IN CASH 1,214,742 4,193,151
Cash, beginning of year 46,814,788 42,621,637
Cash, end of year $48,029,530 $46,814,788
(Continued)
See accompanying notes to financial statements
14
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 2014 AND 2013
Reconciliation of operating (loss) to net cash provided by
operating activities:
Operating (loss)
Adjustments to reconcile operating loss to cash
flows from operating activities:
Depreciation
Change in assets and liabilities:
Receivables, net
Parts and supplies
Prepaid expenses
Accounts payable and accrued expenses
Accrued payroll and related expenses
Refundable deposits
Net OPEB asset
Net cash provided (used) by operating activities
SCHEDULE OF NON CASH ACTIVITY
Change in fair value of investments
Capital asset donations
Total non cash activity
CASH AND CASH EQUIVALENTS, AS PRESENTED ON
STATEMENT OF NET POSITION:
Unrestricted cash and cash equivalents
Restricted cash and cash equivalents
($25,506,386) ($19,655,056)
21,892,545 21,596,266
(176,473)
(1,366,298)
(83,144)
1,704
(99,732)
296,495
465,495
472,291
13,148
122,665
(130,599)
12,149
329,960
(274,096)
($3,295,186) $1,206,120
$393,528 $395,301
1,153,968 713,525
$1,547,496 $1,108,826
$47,929,530 $46,714,788
100,000 100,000
Total cash and cash equivalents at end of year $48,029,530 $46,814,788
See accompanying notes to financial statements
15
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE I — DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
A. Reporting Entity
The Central Contra Costa Sanitary District (District), a special district and a public entity
established under the Sanitary District Act of 1923, provides sewer service for the incorporated
and unincorporated areas under its jurisdiction. A Board of Directors comprised of five elected
members governs the District.
As required by accounting principles generally accepted in the United States of America, these
basic financial statements present the financial statements of Central Contra Costa Sanitary
District and its component unit. The component unit discussed in the following paragraph is
blended in the District's reporting entity because of the significance of its operational and
financial relationship with the District.
Blended Component Unit - Component units are legally separate organizations for which the
District is financially accountable. Component units may also include organizations that are
fiscally dependent on the District, in that the District approves their budget, the issuance of their
debt or the levying of their taxes. In addition, component units are other legally separate
organizations for which the District is not financially accountable but the nature and significance
of the organization's relationship with the District is such that exclusion would cause the District's
financial statements to be misleading or incomplete. For financial reporting purposes, the
component unit discussed below is reported in the District's financial statements because of the
significance of its relationship with the District. The component unit, although a legally separate
entity, is reported in the financial statements using the blended presentation method as if it were
part of the District's operations because the Governing Board of the component unit is the same
as of Governing Board of the District and because its purpose is to finance facilities to be used for
the direct benefit of the District. The Central Contra Costa Sanitary District Facilities Financing
Authority (Authority) was organized solely for the purpose of providing financial assistance to the
District. The Authority does this by acquiring, constructing, improving and financing various
facilities, land and equipment purchases, and by leasing or selling certain facilities, land and
equipment for the use, benefit and enjoyment of the public served by the District. The Authority
has no members and the Board of Directors of the Authority consists of the same persons who are
serving as the Board of Directors of the District. There are no separate basic financial statements
prepared for the Authority.
B. Basis of Accounting
The District's financial statements are prepared on the accrual basis of accounting. The District
applies all applicable Governmental Accounting Standards Board (GASB) pronouncements for
certain accounting and financial reporting guidance.
17
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 1— DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
The District is a proprietary entity; it uses an enterprise fund format to report its activities for
financial statement purposes. Enterprise funds are used to account for operations that are
financed and operated in a manner similar to private business enterprises, where the intent of the
governing body is that the cost and expenses, including depreciation, of providing goods or
services to its customers be financed or recovered primarily through user charges; or where the
governing body has decided that periodic determination of revenues earned, expense incurred,
and net income is appropriate for capital maintenance, public policy, management control,
accountability, or other purposes.
Enterprise funds are used to account for activities similar to those in the private sector, where the
proper matching of revenues and costs is important and the full accrual basis of accounting is
required. With this measurement focus, all assets and liabilities of the enterprise are recorded on
its statement of net position, all revenues are recognized when earned and all expenses, including
depreciation, are recognized when incurred.
Enterprise funds distinguish operating revenues and expenses from non - operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with an enterprise fund's principal ongoing operations. The
principal operating revenues of the District are charges to customers for services. Operating
expenses for the District include the costs of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported
as non - operating revenues and expenses.
For internal operating purposes, the District's Board of Directors has established four separate
sub - funds, each of which includes a separate self - balancing set of accounts and a separate Board
approved budget for revenues and expenses. These sub -funds are combined into the single
enterprise fund presented in the accompanying financial statements. The nature and purpose of
these sub -funds are as follows:
Running Expense - Running Expense accounts for the general operations of the District.
Substantially all operating revenues and expenses are accounted for in this sub -fund.
Sewer Construction - Sewer Construction accounts for non - operating revenues, which are
to be used for acquisition or construction of plant, property and equipment.
Self - Insurance - Self - Insurance accounts for interest earnings on cash balances in this
sub -fund and cash allocations from other sub - funds, as well as for costs of insurance
premiums and claims not covered by the District's insurance coverage.
Debt Service - Debt Service accounts for activity associated with the payment of the
District's long term bonds and loans.
That portion of the District's net position which is allocable to each of these sub -funds has been
shown separately in the accompanying supplementary information to the financial statements.
The District's Board of Directors adopts annual budgets on a basis consistent with accounting
principles generally accepted in the United States of America.
18
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 1— DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
C. Investments
Investments held at June 30, 2014 and 2013 with original maturities greater than one year, are
stated at fair value. Fair value is estimated based on quoted market prices at year -end. All
investments not required to be reported at fair value are stated at cost or amortized cost.
D. Prepaid Expenses
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in the fmancial statements.
E. Bank Escrow Deposit
An escrow agreement was formed between the District and the National Park Service for the
right- of -way through the John Muir National Historic Site, in lieu of issuing a performance bond.
The current right -of -way permit is 10 years, but is renewable and must remain in effect so long as
there is sewage running through the area; therefore, it is unlikely that the escrow funds will ever
be released to the District. These funds are listed as restricted cash in the fmancial statements.
F. Parts and Supplies
Parts and supplies are valued at average cost and are used primarily for internal purposes.
G. Property, Plant, and Equipment
Purchased capital assets are stated at historical cost. Capital assets contributed to the District are
stated at estimated fair value at the time of contribution. The capitalization threshold for capital
assets is $5,000. Expenditures which materially increase the value or life of capital assets are
capitalized and depreciated over the remaining useful life of the asset.
Depreciation of exhaustible capital assets has been provided using the straight -line method over
the asset's useful life as follows:
Years
Sewage Collection Facilities 75
Intangible Assets 75
Sewage Treatment Plant and Pumping Plants 40
Buildings 50
Furniture and Equipment 5-15
Motor Vehicles 5-15
19
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 1— DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
K Property Taxes
Property tax revenue is recognized in the fiscal year for which the tax is levied. The County of
Contra Costa levies, bills and collects property taxes for the District; all material amounts are
collected by June 30.
General County taxes collected are the same as the amount levied since the County participates in
Califomia's alternative method of apportionment called the Teeter Plan. The Teeter Plan as
provided in Section 4701 at seq. of the State of Revenue and Taxation Code establishes a
mechanism for the County to advance the full amount of property tax and other levies to taxing
agencies based on the tax levy, rather than on the basis of actual tax collections. Although this
system is a simpler method to administer, the County assumes the risk of delinquencies. The
County in return retains the penalties and accrued interest thereon.
Secured property tax bills are mailed once a year, during the month of October on the current
secured tax roll, to the owner of the property as of the lien date (January 1). Payments can be
made in two installments, and are due on November 1 and February 1. Delinquent accounts are
assessed a penalty of 10 percent. Accounts which remain unpaid on June 30 are charged an
additional 11 /2 percent per month. Unsecured property tax is due on July 1 and becomes
delinquent on August 31. The penalty percentage rates are the same as secured property tax.
L Compensated Absences
The liability for vested vacation, compensatory time, and sick pay is recorded as an expense when
earned. District employees have a vested interest in 100 percent of accrued vacation time and 85
percent of accrued sick time for employees hired before May 1, 1985. Employees hired after May
1, 1985 have a vested interest in up to 40 percent of their sick time, based upon length of
employment with the District.
The changes in compensated absences were as follows for fiscal years ended June 30:
The current portion of the liability to be used within the next year is estimated by management to
be approximately 10% of the ending balance.
20
2014
2013
Beginning Balance
$3,833,245
$3,710,580
Additions
391,927
783,906
Payments
(378,779)
(661,241)
Ending Balance
$3,846,393
$3,833,245
Current Portion
$385,000
$383,000
The current portion of the liability to be used within the next year is estimated by management to
be approximately 10% of the ending balance.
20
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 1– DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
J. Statement of Cash Flows
For purposes of the statement of cash flows, all highly liquid investments, including restricted
assets, with maturities of three months or less when purchased, are considered to be cash
equivalents. Included therein are petty cash, bank accounts, and the State of California Local
Agency Investment Fund (LAIF). Restricted assets are debt service amounts maintained by
fiduciaries and not available for general expenses.
K. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results could differ from those estimates.
L. Implementation of Governmental Accounting Standards Board (GASB) Pronouncements
GASB Statement No. 65 – In March 2012, the GASB issued Statement No. 65, Items Previously
Reported as Assets and Liabilities. This Statement establishes accounting and financial reporting
standards that reclassify, as deferred outflows of resources or deferred inflows of resources,
certain items that were previously reported as assets and liabilities and recognizes, as outflows of
resources or inflows of resources, certain items that were previously reported as assets and
liabilities. The provisions of this Statement are effective for financial statements for periods
beginning after December 15, 2012. This Statement required the District to remove its remaining
unamortized revenue bond issuance costs of $315,287, previously reported as a noncurrent asset
on the Statement of Net Position as of July 1, 2013. As the balance does not materially impact
the District's net position, the balance was expensed in the current fiscal year ended June 30,
2014.
GASB Statement No. 66 – In March 2012, the GASB issued Statement No. 66, Technical
Corrections - 2012 --an amendment of GASB Statements No. 10 and No. 62. The objective of
this Statement is to improve accounting and financial reporting for a governmental financial
reporting entity by resolving conflicting guidance that resulted from the issuance of two
pronouncements, Statements No. 54, Fund Balance Reporting and Governmental Fund Type
Definitions, and No. 62, Codification of Accounting and Financial Reporting Guidance
Contained in Pre - November 30, 1989 FASB and AICPA Pronouncements. The provisions of this
Statement are effective for financial statements for periods beginning after December 15, 2012.
This Statement did not have a material impact on the financial statements.
GASB Statement No. 67 – In June 2012, the GASB issued Statement No. 67, Financial
Reporting for Pension Plans —an amendment of GASB Statement No. 25. The requirements of
this Statement will improve financial reporting primarily through enhanced note disclosures and
schedules of required supplementary information that will be presented by the pension plans that
are within its scope. The provisions of this Statement are effective for financial statements for
periods beginning after June 15, 2013. This Statement did not have a material impact on the
financial statements.
21
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 1– DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
GASB Statement No. 68 – In June 2012, the GASB issued Statement No. 68, Accounting and
Financial Reporting for Pensions —an amendment of GASB Statement No. 27. The requirements
of this Statement will improve the decision - usefulness of information in employer and
governmental nonemployer contributing entity financial reports and will enhance its value for
assessing accountability and interperiod equity by requiring recognition of the entire net pension
liability and a more comprehensive measure of pension expense. The provisions of this
Statement are effective for financial statements for periods beginning after June 15, 2014,
therefore, the District will implement this Statement in fiscal year ending June 30, 2015. This
Statement will have a material effect on the financial statements.
GASB Statement No. 69 – In 2014, the GASB issued Statement No. 69, Government
Combinations and Disposals of Government Operation. This Statement requires disclosures to be
made about government combinations and disposals of government operations to enable financial
statement users to evaluate the nature and financial effects of those transactions. The provisions
of this Statement are effective for financial statements for periods beginning after December 15,
2013, therefore, the District will implement this Statement in fiscal year ending June 30, 2016.
This Statement will not have a material impact on the financial statements.
GASB Statement No. 70 – In 2014, the GASB has issued Statement No. 70, Accounting and
Financial Reporting for Nonezchange Financial Guarantees. This Statement establishes
accounting and financial reporting standards for situations where a state or local government, as a
guarantor, agrees to indemnify a third -party obligation holder under specified conditions (i.e.,
nonexchange financial guarantees). The issuer of the guaranteed obligation can be a legally
separate entity or individual, including a blended or discretely presented component unit.
Guidance is provided for situations where a state or local government extends or receives a
nonexchange financial guarantee. The requirements of this Statement are effective for financial
statements for reporting periods beginning after June 15, 2013. This Statement did not have a
material effect on the financial statements.
GASB Statement No. 71– In 2014, the GASB issued Statement No. 71, Pension Transition for
Contributions Made Subsequent to the Measurement Date —an amendment of GASB Statement
No. 68. The requirements of this Statement will eliminate the source of a potential significant
understatement of restated beginning net position and expense in the first year of implementation
of Statement 68 in the accrual -basis financial statements of employers and non - employer
contributing entities. This benefit will be achieved without the imposition of significant additional
costs. The provisions of this Statement are effective for financial statements for periods beginning
after June 15, 2014 therefore, the District will implement this Statement in fiscal year ending June
30, 2015.
22
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 2 — CASH AND INVESTMENTS
A. Summary of Cash and Investments
Cash and investments as of June 30, are classified in the accompanying financial statements as
follows:
2014 2013
Cash and cash equivalents $47,929,530 $46,714,788
Short term investments 9,993,211 10,498,624
Restricted cash and cash equivalents 100,000 100,000
Restricted investments 5,474,874 5,412,500
Total Cash and Investments $63,497,615 $62,725,912
B. Policies and Practices
The District is authorized under California Government Code to make direct investments in local
agency bonds, notes, or warrants within the State: U.S. Treasury instruments, registered State
warrants or treasury notes, securities of the U.S. Governments, or its agencies, commercial paper,
certificates of deposit placed with commercial banks and/or savings with loan companies, and
certificates of participation. State code and the District's investment policy prohibit the District
from investing in investments with a rating of less than A or equivalent.
G General Authorizations
Limitations as they relate to interest rate risk, credit risk, and concentration of credit risk are
indicated in the schedules below:
Maximum
Remaining
Authorized Investment Type Maturity
U.S. Treasury Obligations
5 years
Banker's Acceptances
180
Commercial Paper (1)
270
Collateralized Certificates of Deposit (2)
5 years
County Pooled Investment Funds
N/A
Local Agency Investment Fund (LAIF)
N/A
District District
California State Limits Policy Policy
Maximum
Maximum
Maximum
Minimum
Percentage
Investment
Percentage
Legal
of Portfolio
In One Issuer
of Portfolio
Quality
None
None
100%
N/A
40%
40%
10%
N/A
25%
10%
10%
Aaa
30%
None
10%
Aaa
None
None
100%
N/A
None
None
100%
N/A
(1) Prime quality; limited to corporations with assets over $500,000,000
(2) Prior approval of the Board of Directors must be obtained to acquire maturities beyond one year, excluding Treasury Notes an,
23
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 2 — CASH AND INVESTMENTS (Continued)
D. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment; generally, the longer the maturity of an investment, the greater the sensitivity of
its fair value to changes in market interest rates. It is the District's policy to manage exposure to
interest rate risk by purchasing a combination of shorter term and longer term investments and by
timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to
maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
District policy is that investment maturities do not exceed one year, with the exception of Treasury
Notes or Local Agency Investment Fund; however, investments can be held longer with Board
approval.
Information about the sensitivity of the fair values of the District's investments to market interest
rate fluctuation is provided by the following schedule that shows the distribution of the District's
investments by maturity, as of June 30:
2014 2013
12 Months 12 Months
Investment Type or less Maturity or less
Certificates of Deposit - Debt Reserve
Money Market - Debt Reserve
Certificates of Deposit
Commercial Paper - Union Bank
Commercial Paper - Toyota Motor Credit
California Local Agency Investment Fund
Total Investments
Cash in bank
Total Cash and Investments
$4,856,450 4/28/15 $5,412,500
618,423 24 days (avg.) -
5,000,000
5,000,000
46,500,000
61,974,873
1,522,742
$63,497,615
24
7/25/14
10/21/14
Not applicable
7,000,136
3,498,488
43,011,748
58,922,872
3,803,040
$62,725,912
Maturity
4/30/14
7/26/13
7/26/13
Not applicable
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 2 — CASH AND INVESTMENTS (Conti nued)
E. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the actual rating as of the June 30, 2014 of each
investment type:
Investment Type
Certificates of Deposit
Money Market - Debt Reserve
Commercial Paper
Totals
Not rated.•
California Local Agency Investment Fund
Cash in Bank
Total Cash and Investments
F. Concentration of Credit Risk
2014 2013
Aaa
Total
Aaa
Total
$4,856,450
$4,856,450
$12,412,636
$12,412,636
618,423
618,423
-
10,000,000
10,000,000
3,498,488
3,498,488
$15,474,873
15,474,873
$15,911,124
15,911,124
46,500,000
1,522,742
$63,497,615
43,011,748
3,803,040
$62,725,912
The District is a voluntary participant in LAIF which is regulated by the California Government
Code under the oversight of the Treasurer of the State of California. LAW is not registered with
the Securities and Exchange Commission. The fair value of the District's investment in this pool
is reported in the accompanying financial statements at amounts based upon the District's pro -
rata share of the fair value provided by LAW for the entire LAW portfolio (in relation to the
amortized cost of that portfolio). The balance available for withdrawal is based on the accounting
records maintained by LAIF, which are recorded on an amortized cost basis. At June 30, 2014
and 2013, these investments matured in an average of 232 and 278 days, respectively.
Investments in County Treasury — The District is considered to be a voluntary participant in an
external investment pool. The fair value of the District's investment in the pool is reported in the
financial statements in cash and cash equivalents at amounts based upon the District's pro -rata
share of the fair value provided by the County Treasurer for the entire portfolio (in relation to
amortized cost of that portfolio). The balance available for withdrawal is based on the accounting
records maintained by the County Treasurer, which is recorded on the amortized cost basis.
25
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 2 — CASH AND INVESTMENTS (Continued)
G. Custodial Credit Risk - Investments
Custodial risk for investments is the risk that, in the event of the failure of the counterparty (e.g.
the broker - dealer) to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The California
Government Code does not contain legal or policy requirements that would limit the exposure to
custodial credit risk. The District's policy is to use the services of the Treasurer's Office of the
County of Contra Costa, which will transact the District's investment decisions in compliance
with the requirements of the District's policy. The County Treasurer's Office will execute the
District's investments through such broker - dealers and financial institutions as are approved by
the County Treasurer, and through the State Treasurer's Office for investment in the Local
Agency Investment Fund.
NOTE 3 — ACCOUNTS RECEIVABLE
Accounts receivable for the years ended June 30, 2014 and 2013 are comprised of the following:
City of Concord (see Note 8)
Household Hazardous Waste Partners
All Other
Total Accounts Receivable
NOTE 4 — ASSESSMENT DISTRICTS RECEIVABLE
2014 2013
$15,446,722 $14,100,192
755,296 837,802
742,975 1,579,555
$16,944,993 $16,517,549
The District established the Contractual Assessment District (CAD) program to help homeowners
finance the cost of connecting to the District. The construction costs associated with the project
within the program are capitalized and depreciated. Individual homeowners are assessed at an
amount equal to their share of the construction costs and connection fee. The assessments, plus
interest, are generally payable over 10 years. The CAD receivable balance at June 30, 2014 and
2013 was $353,380 and $434,396, respectively.
The District also established the Alhambra Valley Assessment District (AVAD) to provided
services to residents in the Alhambra Valley in Martinez. Residents have the choice to pay cash
or finance the construction costs and connection fees. The AVAD receivable balance at June 30,
2014 and 2013 was $1,485,110 and $1,655,065, respectively.
The total receivable balance at June 30, 2014 and 2013 for CAD and AVAD was $1,838,490 and
$2,089,461, respectively, and is shown as a non - current asset on the Statement of Net Position.
26
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 5 — CAPITAL ASSETS
Property, plant and equipment, and construction in progress are summarized below for the year
ended June 30, 2014:
Balance at
Transfers &
Balance at
June 30, 2013
Additions
Retirements
Adjustments
June 30, 2014
Capital assets not being depreciated:
Land
$17,262,249
$58,321
$17,320,570
Easements (intangible)
4,812,127
4,812,127
Construction in Progress
24,533,254
$26,848,688
($1,510,352)
(22,363,432)
27,508,158
Total nondepreciated assets
41,795,503
26,848,688
(1,510,352)
(17,492,984)
49,640,855
Capital assets being depreciated:
Sewage collection system
311,633,989
6,572,028
318,206,017
Contributed sewer lines
150,834,930
1,153,968
308,348
152,297,246
Outfall sewers
11,338,935
363
11,339,298
Sewage treatment plant
299,830,466
(102,000)
3,878,369
303,606,835
Recycled water infrastructure
13,515,026
3,612,630
17,127,656
Pumping stations
54,412,730
(25,000)
568,844
54,956,574
Buildings
36,120,720
(38,000)
6,113,365
42,196,085
Intangibles
4,596,467
(4,596,467)
-
Furniture and equipment
15,651,212
(6,408,774)
783,388
10,025,826
Motor vehicles
6,558,065
(89,150)
252,116
6,721,031
Total depreciated assets
904,492,540
1,153,968
(6,662,924)
17,492,984
916,4763568
Less accumulated depreciation:
Sewage collection system
53,103,663
4,244,943
57,348,606
Contributed sewer lines
51,127,280
2,033,949
53,161,229
Outfall sewers
3,012,481
150,962
3,163,443
Sewage treatment plant
180,670,824
10,289,298
(102,000)
190,858,122
Recycled water infrastructure
5,898,343
628,968
6,527,311
Pumping stations
24,342,929
2,185,564
(25,000)
26,503,493
Buildings
8,059,168
1,137,780
(38,000)
9,158,948
Intangibles
135,316
(135,316)
-
Furniture and equipment
11,851,588
1,028,553
(6,406,814)
6,473,327
Motor vehicles
4,100,982
327,844
(89,150)
4,339,676
Total accumulated depreciation
342,302,574
22,027,861
(6,660,964)
(135,316)
357,534,155
Total capital assets being
depreciated, net
562,189,966
(20,873,893)
(1,960)
17,628,300
558,942,413
Capital assets, net
$603,985,469
$5,974,795
($1,512,312)
$135,316
$608,583,268
During fiscal year ended June 30, 2014, the District reclassified its easements from intangibles
previously depreciated to non - depreciable assets.
27
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 6 — LONG -TERM DEBT
A. Summary of Activity
The changes in the District's long -term obligations during the year consisted of the following:
B. Debt Service Requirements
The 2009 Revenue COP debt service requirements are as follows:
Fiscal Year
Original
Amount
Issue
Balance
Ending
Balance
due within
B
Amount
June 30, 2013
Retirements
June 30, 2014
one year
2009 Series A Certificates of Participation
Principal
Interest
Principal
Interest
Subsidy
Wastewater Revenue
2015
$1,190,840
$3,865,000
$700,467
3.45- 3.78 1/o, due 9/1/2029
$19,635,000
$19,635,000
$5,339,513
$19,635,000
2009 Series B Certificates of Participation
2,210,000
601,033
2,210,000
1,791,873
(416,794)
Wastewater Revenue
2017
1,190,840
2,300,000
501,300
.40- 3.79 %, due 9/1/2029
34,490,000
23,960,000
$3,720,000
20,240,000
$3,865,000
1999 State Water Resources Control Board
2,405,000
424,175
2,405,000
1,615,015
(416,794)
Water Reclamation Loan
2019
1,190,840
2,480,000
329,483
2.60 %, due 3/31/2018
2,916,872
866,827
164,582
702,245
168,861
Total Long -Term Debt
6,980,000
44,461,827
$3,884,582
40,577,245
$4,033,861
Less current portion
2025-2029
(3,884,582)
2,279,321
(4,033,861)
10,320,000
2,279,321
$40,577,245
11,801,559
$36,543,384
2,330,000
B. Debt Service Requirements
The 2009 Revenue COP debt service requirements are as follows:
Fiscal Year
Series A
Ending
Series A
Series
B
Total
35% Tax
Net
June 30,
Principal
Interest
Principal
Interest
Principal
Interest
Subsidy
Total
2015
$1,190,840
$3,865,000
$700,467
$3,865,000
$1,891,307
($416,794)
$5,339,513
2016
1,190,840
2,210,000
601,033
2,210,000
1,791,873
(416,794)
3,585,079
2017
1,190,840
2,300,000
501,300
2,300,000
1,692,140
(416,794)
3,575,346
2018
1,190,840
2,405,000
424,175
2,405,000
1,615,015
(416,794)
3,603,221
2019
1,190,840
2,480,000
329,483
2,480,000
1,520,323
(416,794)
3,583,529
2020-2024
$6,985,000
5,098,729
6,980,000
604,908
13,965,000
5,703,637
(1,784,555)
17,884,082
2025-2029
10,320,000
2,279,321
10,320,000
2,279,321
(797,762)
11,801,559
2030
2,330,000
25,436
2,330,000
25,436
(8,903)
2,346,533
Total
$19,635,000
$13,357,686
$20,240,000
$3,161,366
$39,875,000
$16,519,052
($4,675,190)
$51,718,862
As part of the Federal budget sequestration, the Internal Revenue Service (IRS) has announced
that, as of March 1, 2013, credit payments claimed by issuers of certain tax credit bonds,
including Build America Bonds, may be subject to a reduction of 7.2 %.
28
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 6 — LONG -TERM DEBT (Continued)
C. 2009 Wastewater Revenue Certificates of Participation
On November 12, 2009 and December 3, 2009 the District issued two Certificates of Participation
(COP).
The 2009 Wastewater Revenue Certificates of Participation, Series A and Series B were issued
for $19,635,000 and $34,490,000, respectively. The Series A COP are federally taxable "Build
America Bonds" which have a direct 35% interest rate subsidy from the Federal Government.
Yields on this series range from 3.45% to 3.78 %, net of the subsidy. The Series B COP are tax
exempt bonds that were used to refund the 1998 and 2002 bond issues and raise an additional $30
million in new proceeds with yields ranging from .40% to 3.79 %.
The two bonds total $54,125,000, and are secured by a pledge of tax and net revenues of the
wastewater system. Principal payments began annually on September 1, 2010 with semi - annual
payments due on September 1 and March 1 of each year. Both bonds will be fully amortized as of
September 1, 2029. The refunded portion of the original bonds will be paid off based on the
original amortization schedule.
D. Water Reclamation Loan Contract
The District entered into a contract with the State of California State Water Resources Control
Board (Board), which advanced the District $2,916,872 for design and construction costs for
projects related to recycled water treatment programs.
The District must repay advances from the Board over a 20 -year period beginning March 31,
1999, with an interest rate of 2.60 %. Debt service requirements are as follows:
Fiscal Year
Ending June 30
Principal
Interest
Total
2015
$168,861
$18,258
$187,119
2016
173,251
13,868
187,119
2017
177,756
9,363
187,119
2018
182,377
4,742
187,119
Total
$702,245
$46,231
$748,476
29
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 7 — RISK MANAGEMENT
The District is exposed to various risks of loss including torts, theft of, damage to, and
destruction of assets, errors and omissions, injuries to employees, and natural disasters. To
manage these risks, the District joined with other entities to form the Califomia Sanitation Risk
Management Authority (CSRMA), a public entity risk pool currently operating as a common risk
management and insurance program for the member entities. The purpose of CSRMA is to
spread the adverse effects of losses among the member entities and to purchase excess insurance
as a group, thereby reducing its cost. Through CSRMA, the District purchases property
insurance and workers' compensation insurance.
A. Insurance Coverage
The District's insurance coverage is as follows:
Type of Coverage
All -Risk Property:
Special Form Property
Boiler and Machinery
(Shared Limits per Occurrence)
Crime
Liability:
Errors and Omissions
Employment Practices Liability
Employment Practices Liability
General Liability
Auto Liability
Pollution (General Aggregate)
General Liability (Occurrence)
Pollution (Legal Liability Aggregate)
Fiduciary Liability
Workers' Compensation:
Excess Workers' Compensation
Insurer
APIP
APIP
National Union
Insurance Company of the State of
Pennsylvania
Insurance Company of the State of
Pennsylvania
11iscox Insurance Company
Insurance Company of the State of
Pennsylvania
Insurance Company of the State of
Pennsylvania
Aspen Specialty Insurance Company
Aspen Specialty Insurance Company
Aspen Specialty Insurance Company
RLI Insurance Company
CSRMA
Safety National Casualty
30
15,000,000
15,000,000
1,000,000
15,000,000
15,000,000
10,000,000
5,000,000
10,000,000
1,000,000
750,000
Statutory
1,000,000
1,000,000
35,000
1,000,000
1,000,000
50,000
5,000
50,000
0
0
750,000
Self Insured
Deductible Per
Limits
Occurrence
$556,015,744
$250,000
100,000,000
250,000
1,000,000
2,500
15,000,000
15,000,000
1,000,000
15,000,000
15,000,000
10,000,000
5,000,000
10,000,000
1,000,000
750,000
Statutory
1,000,000
1,000,000
35,000
1,000,000
1,000,000
50,000
5,000
50,000
0
0
750,000
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 7 — RISK MANAGEMENT (Continued)
B. Provision for Uninsured Claims
The Governmental Accounting Standard Board (GASB) requires state and local governments to
record their liability for uninsured claims in their financial statements.
The District's uninsured claims activity and exposure relates primarily to its general and
automobile liability program. The District records its estimated liability for uninsured claims in
this area based on the results of periodic actuarial evaluations. The actuarial evaluations are
typically performed every two years. For intervening years, the liability for uninsured claims is
reviewed for adequacy based on claims activity during the intervening period.
For fiscal years ended June 30, 2014, 2013, and 2012, settlements have not exceeded insurance
coverage. Changes in the District's estimated liability for retained losses are summarized as
follows as of June 30:
Beginning balance
Provisions for claims incurred in the current year
and changes in the liability for retained-
losses incurred in prior years
Claims paid and/or adjustments
Ending balance
2014
$1,000,000
171,806
2013
$1,000,000
1,659,291
2012
$1,000,000
72,606
(171,806) (1,659,291) (72,606)
$1,000,000 $1,000,000 $1,000,000
NOTE 8 — AGREEMENT WITH THE CITY OF CONCORD
In 1974, the District and the City of Concord (the City) entered into a cost - sharing agreement
under which the District became responsible for providing sewage treatment facilities and
services to the City. Under this agreement, the City pays a service charge for its share of
operating, maintenance and administrative costs and makes a contribution for its share of
facilities and makes a contribution for its share of facilities capital costs expended. Service
charges and contributions to capital costs from the City totaled $11,625,864 and $3,820,858,
respectively, for the year ended June 30, 2014, for a total of $15,446,722. Service charges and
contributions to capital costs form the City totaled $10,483,421 and $3,616,771, respectively, for
the year ended June 30, 2013, for a total of $14,100,192.
31
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 9 — PENSION PLiM
A. Contra Costa County Employee's Retirement Association Plan
Plan Description
Substantially all District permanent employees are required to participate in the Contra Costa
County Employees' Retirement Association (CCCERA), a cost - sharing multiple employer public
defined benefit retirement plan (Plan), governed by the County Employee's Retirement Law of
1937, as amended. The latest available actuarial and financial information for the Plan is for the
year ended December 31, 2012. The Contra Costa Employees' Retirement Association issues a
publicly available financial report that includes financial statements and supplemental
information of the Plan. That report is available by writing to Contra Costa County Employees'
Retirement Association, 1355 Willow Way, Suite 221, Concord, CA 94520 -5728 or by calling
(925) 521 -3960.
The Plan provides for retirement, disability, and death and survivor benefits. Annual cost of
living (COL) adjustments to retirement allowances can be granted by the Retirement Board as
provided by State statutes. Retirement benefits are based on age, length of service, date of
membership and final average salary.
Subject to vested status, employees can withdraw contributions plus interests credited, or leave
them as a deferred retirement when they terminate, or transfer to a reciprocal retirement system.
Plan Contribution Requirement
The Plan requires employees to pay a portion of the basic retirement benefit and a portion of
future COL costs. However, the District has paid the majority of the employees' basic
contributions in accordance with the Memorandum of Understanding (MOU). Employees must
pay the COL portion of the employee rate. The contribution requirement and payment from the
District for the plan years ended June 30, 2014, 2013 and 2012 was as follows:
2014 2013 2012
Covered Payroll for fiscal years ended June 30 $26,373,619 $24,752,463 $24,305,548
Employer required contributions to pension 16,132,863 14,029,374 10,961,853
Employee (COL) required contributions to pension 1,370,707 1,289,095 922,520
Total required contributions $17,503,570 $15,318,469 $11,884,373
Percentage of payroll
66% 62% 49%
The District pension plan covered 258 and 251 participants as of June 30, 2014 and 2013,
respectively.
32
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 9 — PENSION PLAN (Continued)
CCCERA determines contribution requirements using a modification of the Entry Age Normal
Method. Under this method, the District's total normal benefit cost for each employee from date
of hire to date of retirement is expressed as a level percentage of the related total payroll cost.
Normal benefit cost under this method is the level amount the employer must pay annually to
fund an employee's projected retirement benefit. This level percentage of payroll method is used
to amortize any unfunded actuarial liabilities. The actuarial assumptions used to compute
contribution requirements are also used to compute the actuarially accrued liability. The District
uses the actuarially determined percentages of payroll to calculate and pay contributions to
CCCERA. This results in no net pension obligations or unpaid contributions. Annual Pension
Costs, representing the payment of all actuarially required contributions required by CCCERA,
for the last three years were as follows:
Percentage
Actual
Annual
Contribution
Pension Cost
Fiscal Year*
(APC)
12/31/2012
$11,884,373
12/31/2013
15,318,469
12/31/2014
17,503,570
Percentage
Actual
of APC
Contribution
Contributed
$11,884,373
100%
15,318,469
100%
17,503,570
100%
*Please note that CCCERA's fiscal year ends December 31.
As part of the fiscal year 2013 -2014 budget process, the Board approved the normal prefunding
of the required annual contribution, plus an additional $5 million to pay down the Unfunded
Actuarial Accrued Liability. The $5 million additional payment was made in December of 2013.
The following is a summary of the actuarial assumptions and methods:
Valuation date
December 31, 2012
Actuarial cost method
Entry Age Normal Cost Method
Amortization method
Level percent of payroll for total unfunded liability
(4.00% payroll growth assumed)
Remaining amortization period
Remaining balance of December 31, 2007 UAAL is amortized over
a fixed (decreasing or closed) period with 10 years remaining as of
December 31, 2012. Any changes in UAAL after December 31, 2007
will be separately amortized over a fixed 18 -year period effective with
that valuation.
Assets valuation method
Market value of assets less unrecognized returns in each of the last
of the last nine semi - annual accounting periods. Unrecognized return
is equal to the difference between the actual market return and the
expected return on the market value, and is recognized semi - annually
over a five -year period. The Actuarial Value of Assets is reduced by
the value of the non - valuation reserves and designations.
Actuarial assumptions:
Investment rate of return
7.25%
Inflation rate
3.25%
Cost -of- living adjustments
3.00%
33
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 9 — PENSION PLANS (Continued)
The schedule of funding progress presents multi -year trend information about whether the
actuarial value of plan assets is increasing or decreasing over time relative to the actuarial
accrued liability for benefits. CCCERA's latest actuarial value and funding progress for the pool
are shown below:
The CCCERA Board took a depooling action in October, 2009 which yielded 12 separate cost
groups by employer, with the exception of smaller employers (those with less than 50 active
members) who continue to be pooled with the applicable county tier. The depooling action
affected employer rates effective July 1, 2011.
Public Employees' Pension Reform Act (PEPRA)
Assembly Bill 340 (AB 340) created the Public Employees' Pension Reform Act (PEPRA) that
implemented new benefit formulas and final compensation periods, as well as new contribution
requirements for most new employees with a membership date on or after January 1, 2013, who
meet the definition of new member under PEPRA.
The table below provides the details of the new provisions.
Benefit Formula
Final Compensation Period
Employer Contribution Rate
as a percentage payroll
Member Contribution Rate as
a percentage of payroll
2.5% at Age 67
Average of last 3 years
10.19% of Reportable
Compensation
10.25% of Reportable
Compensation
The employer contribution rate listed above was in effect until June 30, 2014. In accordance with
the provisions of AB 340, the member contribution rate shown above was set at 50 percent of
expected total normal cost rate, rounded to the nearest 1/4 percent, for the benefits that will apply
to new members on January 1, 2013.
34
Unfunded
Unfunded
(Overfunded)
(Overfunded)
Actuarial Accrued
Entry Age
Actuarial
Liability as a
Actuarial
Accrued
Percentage of
Actuarial
Actuarial Asset
Accrued
Liability (B -A),
Funded
Covered
Covered Payroll
Valuation Date
Value (A)
Liability (B)
(C)
Ratio (A/B)
Payroll (D)
(C/D)
12/31/2010
$5,341,821,711
$6,654,036,801
$1,312,215,090
80.28%
$687,443,206
190.88%
12/31/2011
5,426,719,066
6,915,311,649
1,488,592,583
78.47%
666,394,146
223.38%
12/31/2012
5,482,257,062
7,761,315,535
2,279,058,473
70.64%
652,312,180
349.38%
The CCCERA Board took a depooling action in October, 2009 which yielded 12 separate cost
groups by employer, with the exception of smaller employers (those with less than 50 active
members) who continue to be pooled with the applicable county tier. The depooling action
affected employer rates effective July 1, 2011.
Public Employees' Pension Reform Act (PEPRA)
Assembly Bill 340 (AB 340) created the Public Employees' Pension Reform Act (PEPRA) that
implemented new benefit formulas and final compensation periods, as well as new contribution
requirements for most new employees with a membership date on or after January 1, 2013, who
meet the definition of new member under PEPRA.
The table below provides the details of the new provisions.
Benefit Formula
Final Compensation Period
Employer Contribution Rate
as a percentage payroll
Member Contribution Rate as
a percentage of payroll
2.5% at Age 67
Average of last 3 years
10.19% of Reportable
Compensation
10.25% of Reportable
Compensation
The employer contribution rate listed above was in effect until June 30, 2014. In accordance with
the provisions of AB 340, the member contribution rate shown above was set at 50 percent of
expected total normal cost rate, rounded to the nearest 1/4 percent, for the benefits that will apply
to new members on January 1, 2013.
34
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 9 — PENSION PLANS (Conti nued)
B. Deferred Compensation Plan
District employees may defer a portion of their compensation under a District sponsored Deferred
Compensation Plan created in accordance with Internal Revenue Code Section 457. The plan
was established by the District's Board of Directors and any amendments to the plan must be
authorized by the Board of Directors. Under this plan, participants are not taxed on the deferred
portion of their compensation until it is distributed to them; distributions may be made only at
termination, retirement, death, or in an emergency as defined by the plan. The District does not
make contributions to the plan.
The plan's 457 assets are held in trust with ICMA Retirement Corporation for the exclusive
benefit of the participants and are not included in the District's financial statements.
C. 401 (a) Defined Contribution Plan
The District also contributes to a money purchase plan created in accordance with Internal
Revenue Code section 401(a). The plan was established by the District's Board of Directors and
any amendments to the plan must be authorized by the Board. Contributions to the plan are made
in accordance with a memorandum of understanding stating that in lieu of making payments to
Social Security, the District contributes to the 401(a) Plan an amount equal to that which would
have been contributed to Social Security on behalf of its employees as long as the District is not
required to participate in Social Security. The District contributed $1,646,041 and $1,546,318 to
the Plan during the years ended June 30, 2014 and 2013, respectively.
The 401(a) money purchase plan assets are held in trust with ICMA Retirement Corporation for
the exclusive benefit of the participants and are not included in the District's financial statements.
NOTE 10 — POST EMPLOYMENT HEALTH CARE BENEFITS
A. Plan Description
The District's defined benefit post employment healthcare plan (DPHP) provides medical benefits
to eligible retired District employees and beneficiaries. DPHP is part of the Public Agency
portion of the Public Agency Retirement System (PARS), an agent multiple- employer plan
administered by PARS, which acts as a common investment and administrative agent for
participating public employees within the State of California. A menu of benefit provisions as
well as other requirements is established by the State statute with the Public Employees'
Retirement Law. DPHP selects optional benefit provisions from the benefit menu by contract
with PARS and adopts those benefits through District resolution. PARS issues a separate
Comprehensive Annual Financial Report. Copies of the PARS annual financial report may be
obtained from PARS, 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660, by calling
1(800) 540 -6369, or by emailing info @pars.org.
35
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 10 — POST EMPLOYMENT HEALTH CARE BENEFITS (Conti nued)
B. Funding Policy
GASB Statement No. 45 set rules for computing the employer's expense for retiree benefits other
than pension, called OPEB. The expense, called the annual OPEB Cost (AOC), is determined
similarly to pensions. The annual required contribution (ARC) of the employer, represents a level
of funding that, if paid on an ongoing basis, is projected to cover normal annual costs each year
and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30
years.
When an agency contributes more than the ARC, there is a net OPEB asset (NOA); when the
contribution is less than the ARC, a net OPEB obligation (NOO) results. The District had a net
OPEB asset of $1,207,678 and $1,537,638 as of June 30, 2014 and 2013, respectively.
Because of the volatility of the investment market, the District Board voted to make monthly
installments into the OPEB Trust to take advantage of dollar- cost - averaging.
C. Annual OPEB Cost and Net OPEB Asset
For 2014, the District's annual OPEB cost (expense) was equal to the ARC of $8,103,000. The
District contributed $4,718,600 for retiree health care premiums and $2,828,400 to the PARS
trust for a total of $7,547,000. The following table summarizes the changes in the District's net
OPEB (Asset) at June 30, 2014:
Net OPEB obligation (asset) at June 30, 2012 ($1,263,542)
Annual Required Contribution (ARC)
$8,300,000
Interest on NOA
(82,000)
Adjustment to ARC
98,000
Annual OPEB Cost (AOC)
8,316,000
Contributions Made:
8,128,000
Health care premiums paid
(4,823,096)
Contributions to PARS trust
(3,767,000)
Increase (decrease) in net OPEB obligation
(274,096)
Net OPEB Obligation (Asset) at June 30, 2013
(1,537,638)
Annual Required Contribution (ARC)
8,103,000
Interest on NOA
(95,000)
Adjustment to ARC
120,000
Annual OPEB Cost (AOC)
8,128,000
Contributions Made:
Health care premiums paid
(4,969,640)
Contributions to PARS trust
(2,828,400)
Increase (decrease) in net OPEB obligation
329,960
Net OPEB Obligation (Asset) at June 30, 2014
($1,207,678)
36
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 10 — POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
The District's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan,
and the OPEB asset for the past three years are presented below:
Annual OPEB
Actual
Fiscal Year Cost (AOC)
Contribution
June 30, 2012 $8,300,000
$8,646,806
June 30, 2013 8,316,000
8,590,096
June 30, 2014 8,128,000 7,798,040
D. Funded Status and Funding Progress
Percentage of
Current Year
Net OPEB
AOC
AOC Obligation
Obligation
Contributed
(Asset)
(Asset)
104%
($346,806)
($1,263,542)
103%
(274,096)
(1,537,638)
96%
329,960
(1,207,678)
Per PARS, actuarial assets as of June 30, 2014 and 2013, including trust contributions and
interest, total $36,131,536 and $29,352,833, respectively. Actuarial valuations of an ongoing
plan involve estimates of the value of reported amounts and assumptions about the probability of
occurrence of events far into the future. Examples include assumptions about future
employment, mortality, and the health care cost trend. The funded status of the plan and the
annual required contributions of the employer are subject to continual revision, as actual results
are compared with past expectations and new estimates are made about the future. The schedule
of funding progress, presented below presents multiyear trend information that shows whether the
actuarial value of the plan assets is increasing or decreasing over time, relative to the actuarial
liabilities for benefits.
(B) (A — B) UAAL
$68,769,305 ($66,428,054)
90,337,000 (80,933,000)
100,498,000 (78,017,000)
37
Actuarial
Actuarial
Value of
Valuation
Assets
Date
(A)
June 30, 2009
$2,341,251
June 30, 2010
9,404,000
July 1, 2012
22,481,000
(B) (A — B) UAAL
$68,769,305 ($66,428,054)
90,337,000 (80,933,000)
100,498,000 (78,017,000)
37
Unfunded
Cost Method
(Overfunded)
Actuarial
Actuarial
Accrued
Accrued
Liability
Liability
(B) (A — B) UAAL
$68,769,305 ($66,428,054)
90,337,000 (80,933,000)
100,498,000 (78,017,000)
37
Unfunded
(Overfunded)
Actuarial
Covered Payroll
Liability as
Funded
(Active Plan
Percentage of
Ratio
Members)
Covered Payroll
(AB)
(C)
1(A — B) /Cl
3.40%
$25,080,233
265%
10.41%
25,080,233
323%
22.37%
24,305,548
321%
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 10 — POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
E. Actuarial Methods and Assumptions
Projections for benefits for financial reporting purposes are based on the substantive plan (the
plan as understood by the employer and plan members) and include the types of benefits provided
at the time of each valuation as well as the historical pattern of sharing benefit costs between the
employer and plan members. The actuarial methods and assumptions used include techniques
that are designed to reduce short-term volatility in actuarial accrued liabilities and actuarial value
of assets, consistent with the long -term perspective of the calculations.
The District's most recent actuarial valuation was prepared as of July 1, 2012 and was finalized
on May 31, 2013. The June 30, 2012 actuarial valuation results are budgeted in fiscal years
2013 -14 and 2014 -15.
The following is a summary of the actuarial assumptions and methods:
Valuation Date
Actuarial Cost Method
Amortization Method
Average Remaining Period
Actuarial Assumptions:
Inflation Rate
Investment Rate of Return
Projected Salary Increases
Post - Retirement Benefit Increases
Health Care Cost Trend Rates
NOTE 11— NET POSITION
July 1, 2012
Entry Age Normal Cost Method
Level Dollar /Closed
25 Years fixed
3.00%
6.25%
3.25%
No planned changes
Medical - 9.4% grading to 5% in 2021 - 22
Medicare Part B - same as medical trend
Dental - 4%
Net Position is the excess of all the District's assets over all its liabilities, regardless of fund. Net
Position is divided into three captions:
Net Investment in Capital Assets describes the portion of Net Position which is represented by
the current net book value of the District's capital assets, less the outstanding balance of any debt
issued to finance these assets.
Restricted describes the portion of Net Position which is restricted as to use by the terms and
conditions of agreements with outside parties, governmental regulations, laws, or other
restrictions which the District cannot unilaterally alter.
Unrestricted describes the portion of Net Position which is not restricted as to use.
38
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2014 AND 2013
NOTE 12 — LEASE COMMITMENTS
The District leases various facilities and equipment under operating leases. Following is a
summary of operating lease commitments as of June 30, 2014:
Fiscal Year Office
Ending Equipment
Facilities
Total
2015 $249,924
$58,560
$308,484
2016 249,924
29,712
279,636
Total $499,848
$88,272
$588,120
Total rental expense for the fiscal years ended June 30, 2014 and 2013 was $309,320 and
$306,708, respectively.
NOTE 13 — COMMITMENTS AND CONTINGENCIES
Commitments and contingencies, undeterminable in amount, include normal recurring pending
claims and litigation. In the opinion of management, based upon discussion with legal counsel,
there is no pending litigation which is likely to have a material adverse effect on the financial
position of the District.
Claims and losses are recorded when they are reasonably probable of being incurred and the
amount is estimable. Insurance proceeds and settlements are recorded when received.
The District has a number of purchase commitments for ongoing operating and capital projects
that involve multi -year contracts. Purchase commitments related to these multi -year contracts are
approximately $13,901,807 and $11,808,184 as of June 30, 2014 and 2013, respectively.
39
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SUPPLEMENTARY INFORMATION
This Page Left Intentionally Blank
ASSETS
CENTRAL CONTRA COSTA SANITARY DISTRICT
COMBINING SCHEDULE OF NET POSITION
ENTERPRISE SUB -FUNDS
JUNE 30, 2014
CURRENT ASSETS:
Cash and cash equivalents
Short term investments
Accounts receivable
Interest receivable
Due from other sub -funds
Parts and supplies
Prepaid expenses
Total current assets
NON - CURRENT ASSETS:
Restricted cash and equivalents
Restricted investments
Assessment Districts receivable
Net OPEB asset
CAPITAL ASSETS
Nondepreciable
Depreciable, net of accumulated depreciation
Total capital assets, net
Total non - current assets
TOTAL ASSETS
LIABILITIES
CURRENT LIABILITIES:
Accounts payable and accrued expenses
Due to other sub -funds
Interest payable
Refunding Water Revenue Bonds - current portion
Water Reclamation Loan Contract - current portion
Accrued compensated absences - current portion
Liability for uninsured claims
Refundable deposits
Total current liabilities
NON - CURRENT LIABILITIES:
Refunding Water Revenue Bonds, noncurrent portion
Water Reclamation Loan Contract, noncurrent portion
Accrued compensated absences, noncurrent portion
Total noncurrent liabilities
TOTAL LIABILITIES
NET POSITION
Net investment in capital assets
Restricted for debt service
Unrestricted
TOTAL NET POSITION
Running
Sewer
Self
Debt
5,842,430
Expense
Construction
Insurance
Service
Elimination
Total
673,380
$970,733
$42,453,785
$4,505,012
3,865,000
$47,929,530
3,865,000
9,993,211
168,861
9,993,211
12,921,644
4,023,349
16,944,993
385,000
20,968
2,359
$7,754
31,081
122,933,958
99,239,565
91,490
60,144,076
($282,409,089)
-
2,088,885
138,080,349
126,270,599
1,120,330
29,083,320
2,088,885
2,303,942
2,303,942
141,219,162
155,730,878
4,598,861
60,151,830
(282,409,089)
79,291,642
100,000 100,000
5,474,874 5,474,874
1,838,490 1,838,490
1,207,678 1,207,678
49,640,855 49,640,855
558,942,413 558,942,413
608,583,268 - - - 608,583,268
609,890,946 1,838,490 5,474,874 - 617,204,310
751,110,108 157,569,368 4,598,861 65,626,704 (282,409,089) 696,495,952
2,999,979
2,792,005
50,446
5,842,430
134,569,301
123,393,825
69,884
24,376,079
(282,409,089)
-
673,380
673,380
3,865,000
3,865,000
168,861
168,861
385,000
385,000
1,000,000
1,000,000
126,069
84,769
210,838
138,080,349
126,270,599
1,120,330
29,083,320
(282,409,089)
12,145,509
36,010,000
36,010,000
533,384
533,384
3,461,393
3,461,393
3,461,393
-
36,543,384
40,004,777
141,541,742
126,270,599
1,120,330
65,626,704
(282,409,089)
52,150,286
608,583,268
(40,577,245)
568,006,023
4,809,248
4,809,248
985,098
31,298,769
3,478,531
35,767,997
71,530,395
$609,568,366
$31,298,769
$3,478,531
-
$644,345,666
43
CENTRAL CONTRA COSTA SANITARY DISTRICT
COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
ENTERPRISE SUB -FUNDS
FOR THE YEAR ENDING JUNE 30, 2014
44
Running
Sewer
Self
Debt
Expense
Construction
Insurance
Service
Elimination Total
OPERATING REVENUES
Sewer service charges (SSC)
$60,796,421
$60,796,421
Service charges - City of Concord
11,625,864
11,625,W
Other services charges
1,035,134
1,035,134
Miscellaneous charges
544,589
544,589
Total operating revenues
74,002,008
74,002,008
OPERATING EXPENSES
Sewage collection and pumping stations
16,109,927
16,109,927
Sewage treatment
27,808,819
27,808,819
Engineering
12,308,802
12,308,802
Administrative and general
21,174,011
$858,738
($644,448) 21,388,301
Depreciation
21,892,545
21,892,545
Total operating expenses
99,294,104
-
858,738
(644,448) 99,508,394
OPERATING INCOME (LOSS)
(25,292,096)
(858,738)
644,448 (25,506,386)
NONOPERATING REVENUES (EXPENSES)
Taxes
$7,243,464
$5,850,377
13,093,841
Permit and inspection fees
1,331,821
243,430
1,575,251
Interest earnings
172,844
145,370
10,180
30,894
359,288
Interest expense
(1,996,689)
(1,996,689)
Other income (expense)
622,135
310,329
644,448
(644,448) 932,464
Total nonoperating revenues
2,126,800
7,942,593
654,628
3,884,582
(644,448) 13,964,155
NET INCOME (LOSS) BEFORE CAPITAL
(23,165,296)
7,942,593
(204,110)
3,884,582
(11,542,231)
CONTRIBUTIONS AND TRANSFERS
CAPITAL CONTRIBUTIONS AND TRANSFERS
City of Concord Contributions to capital costs
3,820,858
3,820,858
Customer contributions to capital cost (SSC)
6,665,209
6,665,209
Contributed sewer lines
1,462,316
1,462,316
Capital contributions - Connection fees
8,224,517
8,224,517
Transfers In (Out)
25,338,336
(21,453,754)
(3,884,582)
Total capital contributions and transfers
26,800,652
(2,743,170)
(3,884,582)
20,172,900
CHANGE IN NET POSITION
3,635,356
5,199,423
(204,110)
8,630,669
NET POSITION, BEGINNING OF YEAR
605,933,010
26,099,346
3,682,641
635,714,997
NET POSITION, END OF YEAR
$ 609,568, 366
$31 ,298,769
$3,478,531
$644,345,666
44
CENTRAL CONTRA COSTA SANITARY DISTRICT
Schedule of Running Expenses
Comparison of Budget and
Actual Expenses by
Department
June 30, 2014
Sewage
Variance
Sewage
Treatment
Pumping
Favorable
Administration
Engineering
Collection
Plant
Station
Total
Budget
(Unfavorable)
Salaries and Wages
$4,766,009
$5,880,812
$5,313,247
$9,183,063
$935,973
$26,079,104
$26,722,021
$642,917
Employee Benefits
13,258,368
6,254,643
5,823,361
9,660,211
958,187
35,954,770
36,694,384
739,614
Less Capitalized
Overhead and Benefits
(23,353)
(2,886,850)
(51,463)
(106,095)
(11,660)
(3,079,421)
(4,124,238)
(1,044,817)
Total Salaries and Benefits
18,001,024
9,248,605
11,085,145
18,737,179
1,882,500
58,954,453
59,292,167
337,714
Directors' Fees and Expense
153,735
-
-
-
-
153,735
155,637
1,902
Chemicals
-
-
-
1,179,041
431,145
1,610,186
1,561,000
(49,186)
Utilities
42,305
179,877
132,415
3,565,132
472,599
4,392,328
4,117,650
(274,678)
Repairs and Maintenance
417,924
180,531
549,355
1,799,815
178,992
3,126,617
3,765,527
638,910
Hauling and Disposal
-
371,645
111,378
423,102
8,614
914,739
1,100,500
185,761
P Professional and Legal Services
359,130
104,689
6,214
3,060
-
473,093
477,350
4,257
Outside Services
1,059,531
1 780,693
41,076
514,049
127,419
3,522,768
2 801 621
(721,147)
Self Insurance
600,000
-
-
-
-
600,000
600,000
-
Materials and Supplies
131,453
240,545
829,940
807,667
51,191
2,060,796
2,016,715
(44,081)
Other
408,909
202,215
171,242
779,784
30,700
1,592,850
1,936,785
343,935
$21,174,011
$12,308,800
$12,926,765
$27,808,829
$3,183,160
$77,401,565
$77,824,952
$423,387
CENTRAL CONTRA COSTA SANITARY DISTRICT
RUNNING EXPENSE
SCHEDULE OF SUPPLEMENTAL NET POSITION ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2014
Prior Year Balance
2013 -2014 Revenue
2013 - 2014 Expense
Add Back Depreciation Expense and Intangible Assets Adjustment
Net Position Attributed to General Operations
Net Position Attributed to All Other
Running Expense Net Position
46
$12,572,710
$76,128,808
(99,294,104)
21,892,545 (1,272,751)
11,299,959
598,268,407
$609,568,366
S ID
Central Contra Costa Sanitary District
Statistical
Section
Central Contra Costa Sanitary District
Statistical Section
Table of Contents
Financial Trends
These schedules contain trend information to help the reader understand how the
District's financial performance has changed over time.
Changes in Net Position and Statement of Net Position -
Last Ten Fiscal Years .......................................................... ............................S -1
Revenue by Type - Last Ten Fiscal Years ............................. ............................S -2
Operating Expenses by Type - Last Ten Fiscal Years .......... ............................S -3
Revenue Capacity
These schedules contain information to help the reader assess the District's most
significant revenue sources.
Major Revenue Base and Rates - Historical and Current Fees -
Last Ten Fiscal Years .......................................................... ............................S -4
Assessed and Estimated Actual Valuation of Taxable Property -
Last Ten Fiscal Years .......................................................... ............................S -5
Property Tax and Sewer Service Charge Fees Levied and Collected -
Last Ten Fiscal Years .......................................................... ............................S -5
Sewer Service Charge - List of Ten Largest Customers -
Last Ten Fiscal Years .......................................................... ............................S -6
Debt Capacity
This schedule contains information to help the reader assess the affordability of the
District's current levels of outstanding debt and the District's ability to issue additional
debt in the future.
Summary of Debt Service - Type, Debt Service Coverage, Debt Ratio -
Last Ten Fiscal Years .......................................................... ............................S -7
Demographic and Economic Information
This schedule offers demographic and economic indicators to help the reader
understand the environment within which the District's financial activities take place.
Demographic and Economic Data - Population Served -
Last Ten Calendar Years .................................................... ............................S -8
List of Ten Largest Employers in Contra Costa County -
Last Year and Eight Years Ago .......................................... ............................S -8
Demographic and Economic Statistics - Contra Costa County -
Last Ten Fiscal Years .......................................................... ............................S -9
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the District's financial report relates to the services the District
provides and the activities it performs.
Full -time Equivalent Employees by Department - Last Ten Fiscal Years ........S -10
Number of Retirees and Surviving Spouses - Last Ten Fiscal Years ..............S -10
Capital Asset and Operating Statistics - Last Ten Calendar or Fiscal Years ... S -11
Miscellaneous Statistics ....................................................... ...........................S -11
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year.
Central Contra Costa Sanitary District
29,875,340
34,678,665
37,312,472
39,440,034
39,986,763
41,705,131
45,562,430
49,811,218
58,954,452
6,801,750
Changes in Net Position and Statement of Net Position
8,759,490
8,952,840
9,368,755
7,973,992
7,609,127
8,121,809
7,401,103
8,063,309
2,350,387
Last Ten Fiscal Years
2,298,712
2,613,658
2,832,001
2,129,552
2,425,615
4,099,876
2,836,638
3,995,860
3,716,176
3,826,165
Changes in Net Position
2004 -2005
2005 -2006
2006 -2007
2007 -2008
2008 -2009
2009 -2010
2010 -2011
2011 -2012
2012 -2013
2013 -2014
Operating Revenues:
90,876
(688,859)
119,051
(65,688)
159,961
214,290
16,041,555
16,354,488
17,714,714
18,615,747
Sewer Service Charges(SSC)
$32,282,806
$37,781,774
$35,057,668
$40,207,157
$43,087,454
$48,692,520
$49,095,870
$49,123,848
$56,770,984
$60,796,421
City of Concord
6,603,000
7,383,011
9,043,215
8,206,860
8,755,857
8,664,668
9,224,952
10,647,389
10,483,421
11,625,864
Other Service Charges
672,887
755,827
793,395
869,589
872,978
824,022
913,017
915,485
1,076,401
1,035,134
Miscellaneous Charges
612,851
517,741
863,843
595,980
667,855
650,876
662,721
929,917
751,880
544,589
Total Operating Revenue
40,171,544
46,438,353
45,758,121
49,879,586
53,384,144
58,832,086
59,896,560
61,616,639
69,082,686
74,002,008
Operating Expenses:
Salaries & Benefits
Chemicals, Utilities & Supplies
Professional & Outside Services
Hauling, Disposal, Repairs & Maintenance
Self- Insurance (net of transfers)
Depreciation
All Other
Total Operating Expenses
Operating Loss
Non - Operating Revenues (Expenses):
Property Taxes *
Connection & Other Fees
Interest Income
Interest Expense
All Other *
Total Non - Operating
Income Before Contributions and Transfers
Customer Contributions **
Contributed Sewer Lines
Capital Contributions - Connection Fees
CHANGE IN NET POSITION
Total Net Assets - Beginning
Total Net Assets - Ending
27,989,401
29,875,340
34,678,665
37,312,472
39,440,034
39,986,763
41,705,131
45,562,430
49,811,218
58,954,452
6,801,750
7,646,866
8,759,490
8,952,840
9,368,755
7,973,992
7,609,127
8,121,809
7,401,103
8,063,309
2,350,387
2,850,825
2,298,712
2,613,658
2,832,001
2,129,552
2,425,615
4,099,876
2,836,638
3,995,860
3,716,176
3,826,165
4,105,082
3,863,555
3,938,129
3,808,635
3,916,789
4,077,741
4,239,421
4,041,355
1,189,693
629,513
(180,716)
(215,004)
90,876
(688,859)
119,051
(65,688)
159,961
214,290
16,041,555
16,354,488
17,714,714
18,615,747
19,417,941
20,969,429
20,580,061
21,190,059
21,596,266
21,892,545
1,437,272
1,330,946
2,144,082
2,378,941
2,305,459
2,658,662
2,459,966
2,489,019
2,693,135
2,346,583
59,526,234
62,514,143
69,520,029
73,522,209
77,393,195
76,838,174
78,815,740
85,475,246
88,737,742
99,508,394
(19,354,690) (16,075,790) (23,761,908) (23,642,623) (24,009,051) (18,006,088) (18,919,180) (23,858,607) (19,655,056) (25,506,386)
4,010,380
4,836,301
11,762,731
12,254,168
12,539,375
12,260,123
12,213,624
12,047,169
13,010,477
13,093,841
4,265,620
2,062,216
1,615,308
1,335,160
1,093,756
776,348
895,825
903,810
1,169,809
1,575,251
1,519,192
2,465,985
3,257,773
2,527,621
1,033,095
570,024
673,990
294,938
405,474
359,288
(1,775,857)
(1,694,304)
(1,609,104)
(1,518,142)
(1,421,686)
(1,553,467)
(2,061,903)
(1,919,375)
(1,802,084)
(1,996,689)
1,109,716
1,096,401
1,316,383
1,243,817
639,523
12,295
(523,209)
931,660
951,100
932,464
9,129,051
8,766,599
16,343,091
15,842,624
13,884,063
12,065,323
11,198,327
12,258,202
13,734,776
13,964,155
(10,225,639)
(7,309,191)
(7,418,817)
(7,799,999)
(10,124,988)
(5,940,765)
(7,720,853)
(11,600,405)
(5,920,280)
(11,542,231)
14,716,585
9,862,620
15,945,915
14,970,637
13,938,421
6,793,040
5,018,092
8,888,663
8,001,147
10,486,067
5,530,848
3,044,945
3,521,704
1,444,420
1,231,022
1,840,259
533,616
792,011
939,628
1,462,316
10,728,717
10,496,898
8,917,658
9,259,160
5,025,493
7,078,635
3,515,804
5,724,833
6,091,529
8,224,517
20,750,511 16,095,272 20,966,460 17,874,218 10,069,948 9,771,169 1,346,659 3,805,102 9,112,024 8,630,669
525,923,634 546,674,145 562,769,417 583,735,877 601,610,095 611,680,043 621,451,212 622,797,871 626,602,973 635,714,997
546,674,145 562,769,417 583,735,877 601,610,095 611,680,043 621,451,212 622,797,871 626,602,973 635,714,997 644,345,666
Statement of Net Position
2004 -2005
2005 -2006
2006 -2007
2007 -2008
2008 -2009
2009 -2010
2010 -2011
2011 -2012
2012 -2013
2013 -2014
Investments in Capital Assets, Net of Related Debt
469,375,715
486,098,303
513,580,658
531,119,639
552,165,498
531,324,187
541,613,208
549,462,506
559,523,642
568,006,023
Restricted for Debt Service
3,118,704
3,647,257
3,216,163
3,185,416
3,163,956
4,565,970
4,612,103
4,663,601
4,730,837
4,809,248
Unrestricted
74,179,726
73,023,857
66,939,056
67,305,040
56,350,589
85,561,055
76,572,560
72,476,866
71,460,518
71,530,395
Total Net Position
546,674,145
562,769,417
583,735,877
601,610,095
611,680,043
621,451,212
622,797,871
626,602,973
635,714,997
644,345,666
" Includes Prop 1A loan receivable revenue and offset of $985,916. The revenue is offset by the provision for losses categorized in other.
" Classification reclassed 2010 -11, prior years reclassed for consistency. Previously included in Non - Operating. Includes capital cost contributions from the City of Concord and customer contributions (SSC).
Source: Central Contra Costa Sanitary District Audited Financial Statements
S -1
Central Contra Costa Sanitary District
Revenue By Type
Last Ten Fiscal Years
$120,000,000
$100,000,000
$80,000,000
L
_m $60,000,000
O
$40,000,000
$20,000,000
$-
2004 -2005 2005 -2006 2006 -2007 2007 -2008 2008 -2009 2009 -2010 2010 -2011 2011 -2012 2012 -2013 2013 -2014
Fiscal Year
OOperating Revenue oNon- Operating Revenue
Operating Revenue
Fiscal
Year
Sewer Service
Charges*
City of
Concord
Other Service
Charges
Miscellaneous
Charges
Total
Operating
2004 -2005
$32,282,806
$6,603,000
$672,887
$612,851
$40,171,544
2005 -2006
37,781,774
7,383,011
755,827
517,741
46,438,353
2006 -2007
35,057,668
9,043,215
793,395
863,843
45,758,121
2007 -2008
40,207,157
8,206,860
869,589
595,980
49,879,586
2008 -2009
43,087,454
8,755,857
872,978
667,855
53,384,144
2009 -2010
48,692,520
8,664,668
824,022
650,876
58,832,086
2010 -2011
49,095,870
9,224,952
913,017
662,721
59,896,560
2011 -2012
49,123,848
10,647,389
915,485
929,917
61,616,639
2012 -2013
56,770,984
10,483,421
1,076,401
751,880
69,082,686
2013 -2014
60,796,421
11,625,864
1,035,134
544,589
74,002,008
Non - Operating Revenue
Fiscal
Year
Property
Taxes *1
Customer
Contributions *2
Connections
& Other Fees *3
Interest
All
Other
Total Non - Operating
& Contributions
2004 -2005
$4,010,380
$20,247,433
$14,994,337
$1,519,192
$1,109,716
$41,881,058
2005 -2006
4,836,301
12,907,565
12,559,114
2,465,985
1,096,401
33,865,366
2006 -2007
11,762,731
19,467,619
10,532,966
3,257,773
1,316,383
46,337,472
2007 -2008
12,254,168
16,415,057
10,594,320
2,527,621
1,243,817
43,034,983
2008 -2009
12,539,375
15,169,443
6,119,249
1,033,095
639,523
35,500,685
2009 -2010
12,260,123
8,633,299
7,854,983
570,024
998,211
30,316,640
2010 -2011
12,213,624
5,551,708
4,411,629
673,990
-
22,850,951
2011 -2012
12,047,169
9,680,674
6,628,643
294,938
931,660
29,583,084
2012 -2013
13,010,477
8,940,775
7,261,338
405,474
951,100
30,569,164
2013 -2014
13,093,841
11,948,383
9,799,768
359,288
932,464
36,133,744
* Sewer Service Charge (SSC) represents the Running Expense Fund portion of SSC County collections along with District direct billings and counter collections.
*1 2009 -2010 property taxes includes Prop 1A loan receivable revenue of $985,916.
*2 Customer Contributions include the portion of SSC that is allocated to Sewer Construction Fund, City of Concord reimbursement of capital costs, and developer
contributed sewer lines beginning in 2000 -2001, due to changes in GASB 33 reporting requirements.
*3 Includes connection fees, non - operating permit, inspection, and other fees.
Source: Central Contra Costa Sanitary District Audited Financial Statements S -2
Central Contra Costa Sanitary District
Operating Expenses by Type
Last Ten Fiscal Years
$100,000,000
$90,000,000
$80,000,000
$70,000,000
$60,000,000
c $50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$-
2004.2005 2005 -2006 2006.2007 2007 -2008 2008 -2009 2009.2010 2010 -2011 2011 -2012 2012.2013 2013 -2014
Fiscal Year
❑ Salaries and Benefits ❑ Chemicals, Utilities & Supplies ❑ Professional & Outside Services ❑ Hauling, Disposal, Repairs & Maintenance ❑ Self- Insurance ❑ Depreciation ❑ All Othe
OPERATING EXPENSES
Fiscal
Year
Salaries
and Benefits
Chemicals, Utilities
& Supplies
Professional &
Outside Services
Hauling, Disposal,
Repairs & Maintenance
Self- Insurance
Depreciation
All
Other
Total Operating
Expenses
2004 -2005
$27,989,401
$6,801,750
$2,350,387
$3,716,176
$1,189,693
$16,041,555
$1,437,272
$59,526,234
2005 -2006
29,875,340
7,646,866
2,850,825
3,826,165
879,513
16,354,488
1,080,946
62,514,143
2006 -2007
34,678,665
8,759,490
2,298,712
4,105,082
519,284
17,714,714
1,444,082
69,520,029
2007 -2008
37,312,472
8,952,840
2,613,658
3,863,555
916,639
18,615,747
1,247,298
73,522,209
2008 -2009
39,440,034
9,368,755
2,832,001
3,938,129
958,906
19,417,941
1,437,429
77,393,195
2009 -2010
39,986,763
7,973,992
2,129,552
3,808,635
746,612
20,969,429
1,223,191
76,838,174
2010 -2011
41,705,131
7,609,127
2,425,615
3,916,789
1,003,115
20,580,061
1,575,902
78,815,740
2011 -2012
45,562,430
8,121,809
4,099,876
4,077,741
810,849
21,190,059
1,612,482
85,475,246
2012 -2013
49,811,218
7,401,103
2,836,638
4,239,421
2,380,466
21,596,266
472,630
88,737,742
2013 -2014
58,954,453
8,063,310
3,995,861
4,041,356
858,738
21,892,545
1,702,131
99,508,394
. 2009 -2010 non - operating expenses includes Prop 1A loan receivable revenue offset of $985,916.
Source: Central Contra Costa Sanitary District Audited Financial Statements
S -3
Non - Operating
Expenses *
$1,775,857
1,694,304
1,609,104
1,518,142
1,421,686
2,539,383
2,585,112
1,919,375
1,802,084
1,996,689
Informational - not graphed
Central Contra Costa Sanitary District
Major Revenue Base and Rates
Historical and Current Fees
Last Ten Fiscal Years
$450
$400
$350
v $300
to $250
ca
$200
Q $150
$100
$50
$0
2004.2005 2005 -2006 2006 -2007 2007 -2008 2008 -2009 2009 -2010 2010 -2011 2011 -2012 2012 -2013 2013 -2014
Fiscal Year
00perations ■Capital
Fiscal Year
2004 -2005
2005 -2006
2006 -2007
2007 -2008
2008 -2009
2009 -2010
2010 -2011
2011 -2012
2012 -2013
2013 -2014
Annual Sewer Service Charge (SSC) *1
Facility
Capacity Fee *2
Pump
Zone Fee *3
Operations Capital Total
$204
$76
$280
$3,983
$988
234
46
280
4,150
1,331
213
76
289
4,263
1,404
242
58
300
4,524
1,466
260
51
311
4,923
1,586
292
19
311
5,298
1,651
300
11
311
5,451
1,641
302
39
341
5,465
1,606
344
27
371
5,797
1,625
365
40
405
5,930
1,587
'1 All residential accounts pay a flat annual sewer service charge shown above per household. The charge for commercial users consists of an annual
rate based on a measured volume of water usage per 100 cubic feet (HCF).
"2 New users who are connected to the Wastewater System are charged Capital Improvement Fees called Facility Capacity Fees. Fee is per connection.
'3 New customers in areas where wastewater pumping stations are needed to reach the District's gravity fed sewers are charged a Pump Zone Fee.
Fee is per connection.
Source: Central Contra Costa Sanitary District Environmental Services Division
S -4
Central Contra Costa Sanitary District
Assessed and Estimated Actual Valuation of Taxable Property
Last Ten Fiscal Years
Fiscal Year
Local Secured
Unsecured
Total
% Change
2004 -2005
$50,577,841,843
$1,416,240,351
$51,994,082,194
7.7%
2005 -2006
55,586,311,888
1,463,536,750
57,049,848,638
9.7%
2006 -2007
61,409,513,246
1,533,076,135
62,942,589,381
10.3%
2007 -2008
66,416,736,187
1,583,187,663
67,999,923,850
8.0%
2008 -2009
68,888,723,534
1,738,606,038
70,627,329,572
3.9%
2009 -2010
68,640,287,188
1,723,710,536
70,363,997,724
-0.4%
2010 -2011
67,889,370,916
1,647,537,385
69,536,908,301
-1.2%
2011 -2012
67,486,938,247
1,591,574,852
69,078,513,099
-0.7%
2012 -2013
67,538,246,870
1,604,518,295
69,142,765,165
0.1%
2013 -2014
74,400,356,922
1,742,364,655
76,142,721,577
10.1%
Property Tax and Sewer Service Charge Fees Levied and Collected
Last Ten Fiscal Years
Fiscal Year
Property Tax*
Levied & Collected
% Change
Sewer Service Charges*
Levied & Collected
% Change
2004 -2005
$4,027,427
-55.3%
$43,327,756
4.4%
2005 -2006
4,856,758
20.6%
44,261,318
2.2%
2006 -2007
11,860,961
144.2%
46,694,671
5.5%
2007 -2008
12,092,637
2.0%
48,883,932
4.7%
2008 -2009
12,492,502
3.3%
50,743,258
3.8%
2009 -2010
11,253,233 **
-9.9%
50,896,210
0.3%
2010 -2011
12,171,725
8.2%
50,196,629
-1.4%
2011 -2012
12,032,525
-1.1%
54,586,208
8.7%
2012 -2013
13,185,988 * **
9.6%
60,068,807
10.0%
2013 -2014
13,108,176
-0.6%
66,604,323
10.9%
General County taxes collected are the same as the amount levied since the County participates in California's alternative method of
apportionment called the Teeter Plan. The Teeter Plan as provided in Section 4701 et seq. of the State Revenue and Taxation Code,
establishes a mechanism for the County to advance the full amount of property tax and other levies to taxing agencies based on the
tax levy, rather than on the basis of actual tax collections. Although this system is a simpler method to administer, the County assumes
the risk of delinquencies. The County in return retains the penalties and accrued interest thereon.
** Actual amount received from the County. Net of Prop 1A loan to state of $985,916.
Includes repayment of Prop 1A loan in June, 2013. The repayment amount includes $985,916 of principal and $65,545 of interest
for a total of $1,051,461.
Source: Contra Costa County Auditor - Controller's Office
S -5
Customer
City of Concord*
Chevron Offices & Office Park
Contra Costa County General Services
First Walnut Creek Mutual
Park Regency Apartments
Second Walnut Creek Mutual Apts
Sun Valley Mall
Archstone/Treat Commons Apartments
St. Mary's College Contract
Branch Creek Vista Apartmenst
Reflections San Ramon Apartments
Willows Shopping Center
Bay Landing Apartments
Muirland @ Windemere Apartments
Kaiser Foundation Hospital
John Muir Health
Total
Customer
City of Concord*
Contra Costa County General Services
Park Regency Apartments
Second Walnut Creek Mutual Apts.
First Walnut Creek Mutual
Sun Valley Mall
Branch Creek Vista Apartments
Willows Shopping Center
John Muir Health
Bay Landing Apartments
Archstone Apartments
Muirland @ Windemere Apartments
St. Mary's College Contract
Creekside Oaks Apartments
Chevron Offices & Office Park
Kaiser Foundation Hospital
Total
2004 -2005
20.62%
Percentage of
Operating
19.66%
Operating
Revenue
Rank
Revenue
$6,603,000
1
16.44%
294,670
2
0.73%
266,000
3
0.66%
249,760
4
0.62%
210,000
5
0.52%
158,077
6
0.39%
142,800
7
0.36%
139,062
8
0.35%
120,459
9
0.30%
100,976 10 0.25%
Central Contra Costa Sanitary District
Sewer Service Charge
List Of Ten Largest Customers
Ten Fiscal Years
2005 -2006
20.62%
Percentage of
Operating
19.66%
Operating
Revenue
Rank
Revenue
$7,383,011
1
15.90%
295,173
2
0.64%
295,120
3
0.64%
249,760
4
0.54%
210,000
5
0.45%
169,916
6
0.37%
142,800
7
0.31%
117,119
10
0.25%
139,062 8 0.30%
126,904 9 0.27%
2006 -2007
Percentage of
Operating Operating
Revenue Rank Revenue
$9,043,215 1 19.76%
322,351 2 0.70%
257,788 3 0.56%
176,293 4 0.39%
101,150 9 -10 0.22%
127,355 6 0.28%
128,303 5 0.28%
104,040 8 0.23%
101,150 9 -10 0.22%
121,613 7 0.27%
2007 -2008
20.62%
Percentage of
Operating
19.66%
Operating
Revenue
Rank
Revenue
$8,206,860
1
16.45%
340,389
2
0.68%
316,854
3
0.64%
267,600
4
0.54%
120,000
8
0.24%
183,380
6
0.37%
136,016
7
0.27%
108,000
10
0.22%
118,809
9
0.24%
223,775
5
0.45%
2008 -2009
20.62%
Percentage of
Operating
19.66%
Operating
Revenue
Rank
Revenue
$8,755,857
1
16.40%
363,739
2
0.68%
320,866
3
0.60%
277,412
4
0.52%
190,734
5
0.36%
126,222
6
0.24%
124,400
8
0.23%
111,960
10
0.21%
112,727
9
0.21%
125,292
7
0.23%
$8,284,804
20.62%
$9,128,865
19.66%
$10,483,258
22.91%
$10,021,683
20.09%
$10,509,209
19.69%
2009 -2010
2010 -2011
2011 -2012
2012 -2013
2013 -2014
Percentage of
Percentage of
Percentage of
Percentage of
Percentage of
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Operating
Revenue
Rank
Revenue
Revenue
Rank
Revenue
Revenue
Rank
Revenue
Revenue
Rank
Revenue
Revenue
Rank
Revenue
$8,664,668
1
14.73%
$9,224,952
1
15.40%
$10,647,389
1
17.28%
$10,483,421
1
15.18%
$11,625,864
1
15.71%
305,880
2
0.52%
301,430
2
0.50%
292,384
3
0.47%
321,803
3
0.47%
419,590
2
0.57%
277,412
3
0.47%
277,412
3
0.46%
304,172
2
0.49%
330,932
2
0.48%
361,260
3
0.49%
-
-
-
-
-
-
-
-
303,750
4
0.41%
-
-
-
-
-
-
-
-
243,810
5
0.33%
197,566
4
0.34%
193,957
4
0.32%
203,037
4
0.33%
174,038
6
0.25%
211,866
6
0.29%
124,400
7
0.21%
124,400
5
0.21%
136,400
5
0.22%
148,400
8
0.21%
162,000
7
0.22%
-
-
-
-
-
-
197,567
4
0.29%
153,294
8
0.21%
-
-
-
-
-
-
176,381
5
0.26%
148,374
9
0.20%
111,960
8
0.19%
111,960
6
0.19%
122,760
6
0.20%
133,560
9
0.19%
145,800
10
0.20%
108,850
9 -10
0.19%
108,850
7 -8
0.18%
119,350
8 -9
0.19%
129,850
10
0.19%
-
-
108,850
9 -10
0.19%
108,850
7 -8
0.18%
119,350
8 -9
0.19%
129,850
10
0.19%
-
-
98,521
10
0.16%
119,407
7
0.19%
158,480
7
0.23%
-
-
-
-
107,756
10
0.17%
-
-
165,561
5
0.28%
-
-
-
-
136,753
6
0.23%
102,893
9
0.17%
-
-
-
$10,201,900
17.34%
$10,653,225
17.79%
$12,172,005
19.75%
$12,384,282
17.93%
$13,775,608
18.62%
* Contract with the City of Concord to treat and dispose of wastewater for Concord and Clayton.
S -6
$6,000,000
$5,000,000
$4,000,000
m
M $3,000,000
0
D
$2,000,000
$1,000,000
$0
0
ry °°tti
Central Contra Costa Sanitary District
Summary Of Debt Service
Last Ten Fiscal Years
Debt Service Paid Each Fiscal Year
•bo°� 'L ° °0 `L ° °e, ,�° ,��. ,�ti ,tQ,' rt °,err
A ry��.
Outstanding Debt Each Fiscal Year
$60,000,000 In 2009, the District issued Bonds which retired the 2002 and 1998 bond
debt and gained $30 million in net proceeds dedicated to fund Capital Improvements.
$45,000,000
m
m $30,000,000
0
C
$15,000,000
$0
Note: Details regarding the District's outstanding debt can be found in the notes to the financial statements.
<a> GASB Statement No. 65 required that bond issuance costs of $315,287, previously being amoritized annually, be expensed in FY 2013 -14.
*1 Net Revenue = Operating Revenue less Total Operating Expenses less Depreciation plus Non - Operating Revenue & Contributions.
*2 This ratio must be above 1.00 to meet the Debt Rate Covenant (Net Revenue/Total Debt Service).
*3 Adjusted Net Revenue = Net Revenue less Capital Improvement Fees (Connection Fees) and City of Concord Capital Charges.
*4 This ratio must be above 1.25 to meet the Debt Rate Covenant (Adjusted Net Revenuerrotal Debt Service).
Source: Central Contra Costa Sanitary District Audited Financial Statements and Internal Accounting Records S -7
Debt Restrictions:
Revenue Pledge & Covenant: The District pledges
Property Tax Revenue along with its ability to raise Sewer
Service Charge (SSC) rates. Debt Coverage requirements
are discussed in the footnotes to the left.
Summary By Type Of Debt
Revenue Bonds (2009, 2002 & 1998)
Total Debt Service Annual Expense
q
JIMMg =
will •
Fiscal
Interest & Total
Interest &
Total
Interest & Total
Revenue
1115*11711111190 .
Year
Principal Amortization Debt Service
Principal
Amortization
Debt Service
Principal Amortization Debt Service
Bonds
.. • MIMMME
2004 -2005
1,995,000
1,719,372
3,714,372
130,634
56,485
187,119
2,125,634
1,775,857
3,901,491
33,945,000
2,041,885
35,986,885
2005 -2006
2,060,000
1,641,215
3,701,215
134,030
53,089
187,119
2,194,030
1,694,304
3,888,334
31,885,000
1,907,855
33,792,855
2006 -2007
2,135,000
1,559,500
3,694,500
137,515
49,604
187,119
2,272,515
1,609,104
3,881,619
29,750,000
1,770,340
31,520,340
2007 -2008
2,210,000
1,472,113
3,682,113
141,090
46,029
187,119
2,351,090
1,518,142
3,869,232
27,540,000
1,629,250
29,169,250
2008 -2009
2,300,000
1,379,326
3,679,326
144,759
42,360
187,119
2,444,759
1,421,686
3,866,445
25,240,000
1,484,491
26,724,491
2009 -2010
2,390,000
1,514,871
3,904,871
148,523
38,596
187,119
2,538,523
1,553,467
4,091,990
54,125,000
1,335,968
55,460,968
2010 -2011
3,460,000
2,027,168
5,487,168
152,385
34,734
187,119
3,612,385
2,061,903
5,674,288
50,665,000
1,183,583
51,848,583
2011 -2012
3,465,000
1,888,601
5,353,601
156,346
30,773
187,119
3,621,346
1,919,375
5,540,721
47,200,000
1,027,237
48,227,237
2012 -2013
3,605,000
1,775,376
5,380,376
160,411
26,708
187,119
3,765,411
1,802,084
5,567,495
43,595,000
866,826
44,461,826
2013 -2014
3,720,000
1,974,151 1
5,694,151
164,582
22,537
187,119
3,884,582
1,996,688
5,881,270
39,875,000
702,244
40,577,244
ML Debt Service Coverage Summary
M
Debt Ratios
Total
Total Operating
Non- Operating
Debt Service
Capital
Debt Service
Annual Debt
Annual Debt
Total Debt
Fiscal
Debt
Operating
Expenses less
Revenue &
Net
Coverage
Improvement
Adjusted Net
Coverage
Service to
Service per
Outstanding
Year
Service
Revenue
Depreciation
Contributions
Revenue *1
(Net Revenue ) *2
Fees /Concord
Revenue *3
(Adj. Net Revenue) *4
Operating Ex p.
Customer
Per Customer
2004 -2005
3,901,491
40,171,544
43,484,679
41,881,058
38,567,923
9.89
13,351,448
25,216,475
6.46
8.97%
24.65
227.41
2005 -2006
3,888,334
46,438,353
46,159,655
33,865,366
34,144,064
8.78
12,931,577
21,212,487
5.46
8.42%
24.08
209.29
2006 -2007
3,881,619
45,758,121
51,805,315
46,337,472
40,290,278
10.38
12,353,170
27,937,108
7.20
7.49%
23.58
191.51
2007 -2008
3,869,232
49,879,586
54,906,462
43,034,983
38,008,107
9.82
14,595,433
23,412,674
6.05
7.05%
23.29
175.56
2008 -2009
3,866,445
53,384,144
57,975,254
35,500,685
30,909,575
7.99
10,511,351
20,398,224
5.28
6.67%
23.33
161.26
2009 -2010
4,091,990
58,832,086
55,868,745
30,316,640
33,279,981
8.13
10,707,584
22,572,397
5.52
7.32%
24.47
331.68
2010 -2011
5,674,288
59,896,560
58,235,679
22,850,951
24,511,832
4.32
6,731,994
17,779,838
3.13
9.74%
34.67
316.81
2011 -2012
5,540,721
61,616,639
64,285,187
29,583,084
26,914,536
4.86
8,266,521
18,648,015
3.37
8.62%
34.06
296.47
2012 -2013
5,567,495
69,082,686
67,141,476
30,569,164
32,510,374
5.84
9,708,300
22,802,074
4.10
8.29%
33.78
269.73
2013 -2014
5,881,270
74,002,008
77,615,849
36,133,744
32,519,903
5.53
12,045,375
20,474,528
3.48
7.58%
35.68
246.16
Note: Details regarding the District's outstanding debt can be found in the notes to the financial statements.
<a> GASB Statement No. 65 required that bond issuance costs of $315,287, previously being amoritized annually, be expensed in FY 2013 -14.
*1 Net Revenue = Operating Revenue less Total Operating Expenses less Depreciation plus Non - Operating Revenue & Contributions.
*2 This ratio must be above 1.00 to meet the Debt Rate Covenant (Net Revenue/Total Debt Service).
*3 Adjusted Net Revenue = Net Revenue less Capital Improvement Fees (Connection Fees) and City of Concord Capital Charges.
*4 This ratio must be above 1.25 to meet the Debt Rate Covenant (Adjusted Net Revenuerrotal Debt Service).
Source: Central Contra Costa Sanitary District Audited Financial Statements and Internal Accounting Records S -7
Debt Restrictions:
Revenue Pledge & Covenant: The District pledges
Property Tax Revenue along with its ability to raise Sewer
Service Charge (SSC) rates. Debt Coverage requirements
are discussed in the footnotes to the left.
Central Contra Costa Sanitary District
Demographic and Economic Data
Population Served
Last Ten Calendar Years
Employers
John Muir Physician Network
Kaiser Foundation Hospitals
Chevron Corporation
Target Corporation
Walmart Stores, Inc
Contra Costa Newspapers, Inc.
Doctors Medical Center
Shell /Martinez Refinery
Bio -Rad Laboratories
Texaco Inc
USS Posco Industries
John Muir Medical Center
John Muir /Mt. Diablo Medical Center
Bank of the West
Aetna Health Services
All Others
2005'
Estimated
Inside District Concord/
Total
As Of January 1
Boundaries Clayton
Served
2005
308,428 135,780
444,208
2006
309,600 135,400
445,000
2007
314,400 134,300
448,700
2008
317,340 134,560
451,900
2009
322,200 134,000
456,200
2010
326,600 135,400
462,000
2011
321,800 133,600
455,400
2012
326,900 134,200
461,100
2013
332,600 134,900
467,500
2014
335,009 135,856
470,865
Source: Central Contra Costa Sanitary District Environmental Services Division
10
0.1%
List of Ten Largest Employers in Contra Costa
County
96.2%
Last Year and Eight Years Ago
Employers
John Muir Physician Network
Kaiser Foundation Hospitals
Chevron Corporation
Target Corporation
Walmart Stores, Inc
Contra Costa Newspapers, Inc.
Doctors Medical Center
Shell /Martinez Refinery
Bio -Rad Laboratories
Texaco Inc
USS Posco Industries
John Muir Medical Center
John Muir /Mt. Diablo Medical Center
Bank of the West
Aetna Health Services
All Others
2005'
Estimated
% of Total County
Employees
Rank
Employment
2,200
1
0.4%
2,300
3
0.5%
5,000
1
1.0%
3,400
2
0.7%
900
8
0.2%
1,000
6
0.2%
975
7
0.2%
1,900
4
0.4%
1,500
5
0.3%
800
9
0.2%
600
10
0.1%
465,825
96.2%
484,200 100.0%
2013'
Chanae
1.0%
0.2%
0.8%
0.7%
1.0%
1.3%
-1.4%
1.3%
1.4%
0.7%
Estimated
% of Total County
Employees
Rank
Employment
2,200
1
0.4%
2,000
2
0.4%
1,329
3
0.2%
1,262
4
0.2%
1,150
5
0.2%
1,140
6
0.2%
937
7
0.2%
900
8
0.2%
900
9
0.2%
800
10
0.1%
536,100
548,718
Source: " County of Contra Costa, California, Comprehensive Annual Financial Report for 6/30/13, Statistical Section, excludes government employers.
S -8
97.7%
100.0%
Central Contra Costa Sanitary District
Demographic and Economic Statistics
Contra Costa County
Last Ten Fiscal Years
Fiscal Year
Ended
June 30
2004
Population*
992,424
Personal
Income*
$49,120,256,000
Per Capita
Personal
Income*
$49,495
Average Annual
Unemployment
Rate **
5.4%
2005
999,013
51,888,889,000
51,940
5.1%
2006
1,000,834
55,543,645,000
55,497
4.5%
2007
1,009,152
58,099,538,000
57,573
4.7%
2008
1,023,344
59,418,357,000
58,063
6.3%
2009
1,037,890
56,667,977,000
54,599
10.8%
2010
1,052,887
58,387,759,000
55,455
11.3%
2011
1,066,516
62,981,259,000
59,053
10.4%
2012
1,079,597
66,544,007,000
61,638
9.0%
2013
N/A
N/A
N/A
7.4%
N/A - Information not available at this time.
U.S. Department of Commerce, Bureau of Economic Analysis. Estimates for 2010 -2012 reflect county population estimates available as of March 2013.
State of California, Employment Development Department (EDD), annual calendar figure.
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Central Contra Costa Sanitary District
Full -time Equivalent Employees by Department
Last Ten Fiscal Years
Full -time Equivalent Employees as of June 30
Department
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Administration
43
42
42
45
45
45
44
39
39
44
Engineering
76
73
75
76
80
76
75
71
75
73
Operations
Collection Systems
46
49
50
50
52
47
44
47
56
55
Plant
81
88
83
77
82
78
74
71
76
81
Pumping Station
9
9
10
11
10
10
8
7
8
8
Operations Total
136
146
143
138
144
135
126
125
140
144
District Total
261
259
256
254
255
260
269
245
235
261
Number of Retirees and Surviving Spouses as of June 30
Last Ten Fiscal Years
District Total 167 167 177 178 187 201 215 237 244 243
Source: Central Contra Costa Sanitary District Finance and Human Resources Divisions
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Central Contra Costa Sanitary District
Capital Asset and Operating Statistics
Last Ten Calendar or Fiscal Years
Type Of Treatment:
Service Area:
Total Population Served:
Sewer Service Charge:
Source: Central Contra Costa Sanitary District records.
Household Hazardous Waste Facility
Recycled Water
Discharge - Secondary; Reclamation - Tertiary
144 square miles
470,865
$405 annually per residential equivalent unit
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Millions of Gallons per Day (mgd)
Treatment Plant
Year 2004 2005
2006
2007
2008
2009
2010
2011
2012
2013
Treatment Plant Permitted Capacity
Calendar 53.8 53.8
53.8
53.8
53.8
53.8
53.8
53.8
53.8
53.8
Average Dry Weather Flow (ADWF)
Calendar 40.6 41.4
41.6
38.6
36.6
32.5
38.9
37.2
33.2
33.8
Wastewater Treated per day
Calendar 44.7 48.0
50.4
41.2
41.0
37.0
40.6
41.9
39.8
36.8
Tons per Year
Sludge to Furnace (Dry)•1
Fiscal 16,727 15,841
15,341
15,340
15,212
15,299
15,056
15,790
15,097
14,590
Ash to Reuse Site (Wet)•2
Fiscal 5,397 5,074
4,418
4,418
4,177
4,082
3,814
3,850
3,667
3,618
'1 In the multi -hearth furnace, the wet sludge is converted to dry ash.
Water is added to the dry ash as it is loaded into trucks (ratio of 60 percent ash to 40
percent water) to prevent
the ash from
blowing out
of the truck during
transport.
`2 Wet sludge, which at 19 to 23 percent solids, is pumped to the multiple
-hearth furnace for incineration. The table above shows
the dry tons per year of sludge
to the furnace, excluding the
77 to 81 percent water in the wet
sludge.
Collection Systems /Pumping Stations /Outfall Sewers
Other Data
Pipeline Miles
Calendar 1,400 1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,526
1526
Number of pumping stations
Calendar 21 17
17
17
17
17
16
16
16
16
Recycled Water
Recycled Water Produced per day
Calendar 1.5 mgd 1.5 mgd
1.6 mgd
1.6 mgd
1.5 mgd
1.6 mgd
1.5 mgd
1.6 mgd
1.6 mgd
1.6 mgd
Number of Recycled Water Customers
Calendar 23 24
30
30
31
30
33
35
35
35
Household Hazardous Waste (HHW) - Inception 1997/1998
Program Participation (Number of cars)
Fiscal 22,872 23,897
26,392
27,940
28,210
29,347
29,441
29,112
29,119
30,379
Percentage of Households in Service Area
Fiscal 12.1% 12.3%
13.6%
14.5%
14.4%
15.0%
15.6%
15.4%
15.4%
15.9%
Operating Cost per Car
Fiscal $58 $60
$64
$61
$76
$76
$82
$87
$93
$83
Pounds of HHW per Car
Fiscal 64 65
80
71
67
65
68
67
68
66
Miscellaneous Statistics
Governing Body:
Elected 5- Member Board of Directors
Governmental Structure:
Established in 1946 under the Sanitary
District Act of 1923
Staff:
261 full -time equivalent employees
Authority:
California Health and Safety Code Section
4700 et.
Seq.
Services:
Wastewater collection, treatment, and disposal
Type Of Treatment:
Service Area:
Total Population Served:
Sewer Service Charge:
Source: Central Contra Costa Sanitary District records.
Household Hazardous Waste Facility
Recycled Water
Discharge - Secondary; Reclamation - Tertiary
144 square miles
470,865
$405 annually per residential equivalent unit
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