HomeMy WebLinkAbout05. Comprehensive Annual Financial Report (CAFR)Central Contra Costa Sanitary District
' BOARD OF DIRECTORS
POSITION PAPER nn Mon I r
Board Meeting Date: December 3, 2015
Subject. APPROVE THE COMPREHENSIVE ANNUAL FINANCIAL REPORT AS
OF JUNE 30, 2015 FOR SUBMISSION TO THE GOVERNMENT
FINANCE OFFICERS ASSOCIATION
Submitted By. Initiating Dept./Div.:
Thea Vassallo, CPA, CMA Administrative / Finance & Accounting
Finance Manager
REVIEWED AND RECOMMENDED FOR BOARD ACTION:
Roger S. Bailey
General Manager
ISSUE: Board approval is requested to submit a Comprehensive Annual Financial
Report (CAFR) to the Government Finance Officers Association of United States and
Canada (GFOA) for review.
BACKGROUND: The GFOA is a professional association of state /provincial and local
finance officers in the United States and Canada, and has served the public finance
profession since 1906. The GFOA established the Certificate of Achievement for
Excellence in Financial Reporting Program in 1945 to encourage and assist state and
local governments to go beyond the minimum requirements of generally accepted
accounting principles (GAAP) and to prepare comprehensive annual financial reports
that provide transparency and full disclosure, and then recognize individual
governments that succeed in achieving that goal.
The District was awarded a Certificate of Achievement for Excellence in Financial
Reporting by the GFOA for the report submitted for the Fiscal Year 2013 -14. The
Certificate of Achievement is the highest form of recognition for excellence in state and
local government financial reporting. In order to be awarded a Certificate of
Achievement, a government agency must publish an easily readable report in a
prescribed format report that complies with GAAP, Governmental Accounting Standards
Board (GASB) and GFOA program policy and requirements. The CAFR includes ten
years of District historical, financial, and statistical data. The CAFR provides a concise
document for internal management use, as well as external use with other agencies,
and is posted on the District's website for the general public. A Certificate of
Achievement is valid for a period of one year.
The Finance and Accounting Division has prepared the District's CAFR as of June 30,
2015. It is believed that the current CAFR continues to meet the Certificate of
Achievement Program requirements and staff is asking for Board approval to submit it
to the GFOA to determine its eligibility for another certificate.
C:\ Users \danderson\AppData \Local \Microsoft \Windows \Temporary Internet Files\ Content .Outlook \IM9F5ZMU \12 -3 -15 CAFR
final.doc Page 1 of 2
POSITION PAPER
Board Meeting Date: December 3, 2015
subject: APPROVE THE COMPREHENSIVE ANNUAL FINANCIAL REPORT AS OF
JUNE 30, 2015 FOR SUBMISSION TO THE GOVERNMENT FINANCE
OFFICERS ASSOCIATION
A draft of the June 30, 2015 CAFR was provided to the full Board as part of the agenda
packet for the November 24, 2015 Finance Committee meeting. The Committee did
not recommend any changes. The final CAFR is included in the agenda packet under
separate cover.
ALTERNATIVES /CONSIDERATIONS: None.
FINANCIAL IMPACTS: There is an application fee for submission of a CAFR for
review based on total revenues of the entity applying. Based on this sliding fee
schedule, the District's fee is $580.
COMMITTEE RECOMMENDATION: On November 24, 2015, the Finance Committee
reviewed the draft June 30, 2015 CAFR and recommended Board approval at this
meeting.
RECOMMENDED BOARD ACTION: Review and approve the June 30, 2015 CAFR for
submission to the GFOA.
Attached Supporting Documents:
1. CAFR for the Fiscal Year ended June 30, 2015
C:\ Users\ danderson \AppData \Local\Microsoft \Windows \Temporary Internet Files\ Content .Outlook \IM9F5ZMU \12 -3 -15 CAFR
final.doc
ATTACHMENT 1
I
5019 Imhoff Place, Martinez, CA 94553 ,
COMPREHENSIVE
ANNUAL FINANCIAL
FILTER PLANT
Water
REPORT
The Residential Recycled
Water Fill Station, above, is
one of the many ways CCCSD
provides recycled water to the
community.
CENTRAL CONTRA COSTA SANITARY DISTRICT
MARTINEZ, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEARS ENDED JUNE 30, 2015 AND 2014
Prepared By:
Finance & Accounting Division
CENTRAL CONTRA COSTA SANITARY DISTRICT
Comprehensive Annual Financial Report
Table of Contents
For the Years Ended June 30, 2015 and 2014
1►111&CBigL "1101Zyd+9x01 Eel Zto
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
Statement of Net Position ......................................... ...............................
10
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
integral part of the basic financial statements ..... ............................... 17 -42
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios -
Last10 Years .......................................................... ...............................
44
Schedule of Contributions — Last 10 years ..............................................
45
Post Retirement Health Care Defined Benefit Plan - Schedule
of Funding Progress — Last Three Valuations ......... ...............................
46
Supplementary Information
Combining Schedule of Statement of Net Position ... ...............................
48
Combining Schedule of Statement of Revenues, Expenses and
Changes in Net Position - Enterprise Sub -Funds ... ...............................
49
Schedule of Running Expenses - Comparison of Budget and Actual
Expenses by Department ........................................ ...............................
50
Running Expense - Schedule of Supplemental Net Position Analysis .....
51
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 Nine Largest Employers in Contra Costa County -
Last Year and Nine 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
+`_
.1Lj j,
Jl Central Contra Costa Sanitary District
November 13, 2015
Central Contra Costa Sanitary District Customers 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,
2015.
Management of Central Contra Costa Sanitary District (the 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 District's financial
statements for the year ended June 30, 2015. 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
339,000 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 137,400 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 4 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 83% 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. With the continued drought conditions in California,
the District opened a residential recycled water fill station with seven hoses to keep up
with demand from residents in the area.
In addition to its wastewater responsibility, the District also operates and maintains a
permanent Household Hazardous Waste (HHW) Collection Facility in partnership with
Mountain View Sanitary District and other local governments. 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 eighteenth 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 five - 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 270 regular employees organized in four
departments led by Managers responsible for their budgets and expenses. The three
departments are: Administrative, Engineering, and Operations.
The District, by law, uses an enterprise fund to account for its operations and 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).
I
• Self- Insurance - accounts for interest earnings on cash balances in this sub -fund
and cash allocations from other funds, as well as costs of insurance premiums and
claims not covered by the District's insurance policies.
• Debt Service — accounts for activity associated with the payment of the District's
long term bonds and loans.
Each year, the Board adopts the following four budgets: Operations and Maintenance,
Capital Improvement and Sewer Construction, Self- Insurance, and Debt - Service. The
Board Finance Committee reviews disbursements prior to each regular Board meeting,
and disbursements are then approved by the full Board. Monthly financial statements
are issued to management and the Board. A detailed mid -year and annual budget
analysis are prepared and presented to the Board. District management is accountable
for variances and adhering to budget constraints. The District also has several
documented financial policies that are reviewed and updated as appropriate.
ASSESSING THE DISTRICT'S ECONOMIC CONDITION
Local Economy and Outlook
Nationally, the forecast for gross domestic product is to trend towards modest growth,
slower than the historic average, as most large metropolitan areas have recovered from
the recession of 2008. Unemployment continues to decrease in California as more jobs
in the tech sector are being created. According to the Legislative Analyst's Office
(LAO), the state's revenues will be about $2 billion higher than estimated which will help
the state build reserves up to $4.2 billion. Maintaining a $4 billion reserve, however,
would allow little to no new spending commitments in the near future. The state's
priorities continue to be to pay off existing debts and to build up the rainy -day fund to
help minimize the effects of boom and bust cycles.
According to the UCLA Anderson forecast, while the U.S. job growth is led mostly by
increases in construction, automobiles, and business investments, as well as high
consumer demand, California's tech sector is the leading factor in the state's
employment growth. The tech sector has grown beyond Silicon Valley and into San
Francisco and San Mateo, which also led to strong increases in the real estate market
in the Bay Area. Low interest rates on mortgages continue to make real estate
development and home buying attractive to potential buyers.
Increased home values have led to growth and new connections in the service area
which continue to benefit the District. Concord and Walnut Creek continue to expand
their commercial and residential projects which have increased sewer service charges
and connections fees. The District and the bargaining units have agreed on a five -year
contract that will go to December 2017. The current labor contract progressively
eliminates employee retirement costs being paid for by the District. Payment of the
unfunded liability is a major concern for the District as it is for many public entities. An
additional payment for the unfunded actuarial accrued liability 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
Iff
finance, collection, treatment, training, safety, technology, capital projects, construction
and customer service. The District has balanced revenue sources, adequate reserves,
and a moderate debt obligation. The District reviews its rate and other charges
annually. The District can increase its sewer service charge rates when needed to make
up revenue shortfalls by providing public notice to all customers, holding a Public
Hearing, and obtaining approval by the Board of Directors. The District is also able to
obtain bond financing, as needed, due to the District's AAA bond rating. The District
anticipates that it will continue to meet its mission and goals, continue to provide
excellent customer service and reasonable rates to its customers, and meet compliance
requirements given the current economic conditions.
Long -Term Financial Planning
District management analyzes and updates their strategic plan annually, with the four
main goals being: providing exceptional customer service, maintaining full regulatory
compliance, maintaining responsible rates, and continuing to be a high - performance
organization. Strategies to achieve each of the goals are developed, as well as metrics
to evaluate success. The District performs a 10 -year long -term cash flow forecast each
year shortly before the budget process begins. The main economic factors considered
in long -range forecasting are: the impact of state legislation and mandates, regulatory
compliance, Governmental Accounting Standards Board (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 Finance
Committee reviews GASB 45 Trust quarterly financial statements to monitor the
District's investment strategy.
Maior Initiatives
The District's vision is to be a high - performance organization that provides exceptional
customer service and full regulatory compliance at responsible rates. Full regulatory
compliance is provided through exceptional operation of our collection system and
treatment facilities, as well as through continued investment in our infrastructure.
The District adopted a two year Strategic Business Plan for FY 14 -15 through FY 15-
16. The Strategic Business Plan establishes policy direction and identifies six goals with
key performance indicators that provide a roadmap for achieving increased
1V
effectiveness and efficiencies. Included in the Strategic Plan was the preparation of a
Wastewater Cost -of- Service Study and Staffing Needs Assessment. The purpose of
the Cost -of- Service Study was to independently assess and evaluate the District's
existing wastewater rates, to provide a fair and reasonable rate structure and to ensure
the proportionate recovery of costs from all customer classes. The Board adopted the
recommended rate structure and associated rates in June 2015. The purpose of the
Staffing Needs Assessment was to make sure that the District's staffing level was
optimal based on the level of service our customers expect, the size and complexity of
the collection and treatment system and our focus on remaining efficient and effective
in running our business. The conclusion of the study was that the District is staffed at
the right level.
In order to effectively manage assets to meet future state and federal regulatory
requirements, the District initiated an Asset Management Program and the preparation
of a Comprehensive Wastewater Master Plan to evaluate options for addressing future
regulatory requirements. The Master Plan will be completed in December 2016.
The District has received the Platinum award from the National Association of Clean
Water Agencies (NACWA) for 17 straight years in recognition of 100% compliance with
our National Pollutant Discharge Elimination System (NPDES) permit. It has also
reduced the number of sanitary sewer overflows by more than 60% in the past 10 years
by improved sewer cleaning and a robust sewer rehabilitation program.
AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association of the United States and Canada
(GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to
the Central Contra Costa Sanitary District for its comprehensive annual financial report
for the fiscal year ended June 30, 2014. This was the fifteenth 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 Chris Thomas, Senior Accountant, and Jamie
King, Accountant.
• 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
V1
CENTRAL CONTRA COSTA SANITARY DISTRICT
BOARD OF DIRECTORS
June 30, 2015
Michael R. McGill ............... ............................... President
Tad J. Pilecki ...... ............................... President Pro -Tem
Paul H. Causey .......................... .........................Member
James A. Nejedly ................. ............................... Member
David R. Williams ....................... .........................Member
vu
I �_ 1�'�
S
Pr. ft'(I(r:q lrcblfc H�n7f71 enJ llic LnLIUnnrent
MISSION, VISION,
AND VALUES
ESTABLISHED IN 1946,
THE CENTRAL CONTRA COSTA SANITARY DISTRICT (CCCSD) 1S 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:
,)0' COLLECTING AND TREATING WASTEWATER
EMBRACING A POLICY OF SUSTAINABILITY FOR THE
RESPONSIBLE USE OF EXISTING RESOURCES
PROMOTING ENVIRONMENTAL STEWARDSHIP
OURVISION
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
kwfttl
CENTRAL CONTRA COSTA SANITARY DISTRICT
Organization Chart - Composite
Electorate
Board
Members
General
Manager
Secretary of the Administration
District
Operations
Collection
Information
Technology
System
Operations
Finance Plant
Maintenance
Purchasing &
Materials Plant
Services Operations
Communication
Svcs, & Intergov.
Relations
Risk
Management ix
Engineering & Counsel for the
Technical District
Services
I
Capital Projects
Division
Environmental &
Regulatory
Compliance
Planning &
Development
Services
Central Contra Costa Sanitary District
Map of Service Area
June 30, 2015
Benicia IV
San
Pablo Suisun Bay
Bay
4
Hercules 1❑ 2 � Cl) Pittsburg
3
Martinez
U Antioch
Concord
Pleasant Hill
Clayton
Berkeley
San
Francisco
Bay
® Walnut Creek
10�1 12 Lafayette
13
Orinda
Alamo
Moraga
15
Oakland
Danville
San Ramon
16 'A
N
0 2
m
Miles
❑ Pumping Station
CCCSD's Headquarters Office Building, ® 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 339,000 people
Wastewater treatment and HHW collection
for 137,000 residents in Concord and Clayton
by contract
HHW disposal services only
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
x
EM
G9 !`glvl 71Tvjlo- Y,G.,. L iYef°_nc(t Offiv1,sr�,s ki`'smcciap„ion
Certificate
Achievement
for Excellence
in Financial
1 I
For its Comprehensive Annual
Financiai Report
for the Fiscal Year Ended
Executive Director/CEO
xi
Dissolved otation Tank Renovation Project
nN— =Ili►'
IVA M A�ZTE
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, 2015 and 2014, and the related notes to the financial statements, which
collectively comprise the District's basic financial statements as listed in the Table of Contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of the
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our 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, 2015 and 2014, 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 e maze@mazeassociates.com
Pleasant Hill, CA 94523 , w mazeassociates.com
Emphasis of a Matter
Management adopted the provisions of the following Governmental Accounting Standards Board Statements, which
became effective during the year ended June 30, 2015 and required the restatement of net position as discussed in
Note 9 to the financial statements:
Statement No. 68 — Accounting and Financial Reporting for Pensions
Statement No. 71— Pension Transition for Contributions Made Subsequent to the Measurement Date
The emphasis of this matter does not constitute a modification to our opinion.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management's Discussion and
Analysis and Required Supplementary Information 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.
��M 21 Z�
Pleasant Hill, California
October 1, 2015
Jl 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, 2015. This information is
presented in conjunction with the audited financial statements, which follow this report.
FINANCIAL HIGHLIGHTS
The District's 2014 -15 financial highlights are listed below. These results are discussed in more detail
later in the report.
• The District's total ending net position decreased by $80.7 million or - 12.53% in 2014 -15. This
is mainly due to the implementation of GASB 68 and GASB 71 which required the District to
record the Collective Net Pension Liability.
• Total revenues in 2014 -15 increased by $12.6 million or 14.04 %. The total Sewer Service
Charge (SSC) rate for the year was $439 which was an increase of 8.40% for fiscal year 2014-
15.
• Total 2014 -15 expenses increased by $4.4 million or 4.30 %. This is mainly due to higher cost
of total labor, depreciation, repairs and maintenance, and offset by a negative pension expense as
a result of the implementation of GASB 68 and 71.
• Capital Contributions decreased in 2014 -15 by $5.9 million or - 29.42 %. The decrease is
mainly due to a decrease in capital contributions from Concord and fewer new connections.
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, deferred outflows of resources, long -term obligations,
and deferred inflows of resources.
• 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.
3
• 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 % Increase
Net Position Fiscal Year Ended June 30 (Decrease)
FY 14 -15 FY 14 -15
vs. vs.
2014 -15 2013 -14 2012 -13 FY 13 -14 FY 12 -13
Current Assets
$ 82,554,355
$ 79,291,642
$ 78,006,233
4.18%
5.83%
Capital Assets
609,718,479
608,583,268
603,985,469
0.19%
0.95%
Other Non - current Assets
7,832,901
8,621,042
9,454,886
- 8.34%
- 17.15%
Total Assets
700,105,735
696,495,952
691,446,588
0.52%
1.25%
Deferred Outflows of
Resources -
Pension Related
12,420,138
-
-
100.00%
100.00%
Current Liabilities
10,029,487
12,145,509
11,704,101
- 18.08%
- 14.31%
Non - Current Liabilities
127,324,915
40,004,777
44,027,490
198.33%
189.19%
Total Liabilities
137,354,402
52,150,286
55,731,591
152.88%
146.46%
Deferred Inflows of
Resources -
Pension related
11,564,393
-
-
100.00%
100.00%
Net Investment in
Capital Assets
573,175,094
568,006,023
559,523,642
0.92%
2.44%
Restricted - Debt Service
4,288,008
4,809,248
4,730,837
- 11.02%
-9.36%
Unrestricted
(13,856,024)
71,530,395
71,460,518
- 119.49%
- 119.39%
Total Net Position
$ 563,607,078
$ 644,345,666
$ 635,714,997
- 12.70%
- 11.34%
The total net position of the District increased from $635.7 million in 2012 -13 to $644.3 million in
2013 -14 and decreased to $563.6 million in 2014 -15. The District's total assets have increased by $3.6
million or 0.52% compared to 2013 -14, and $8.7 million or 1.25% compared to 2012 -13. The total
liabilities increased $85.2 million or 152.88% compared to 2013 -14, and increased $81.6 million or
146.46% compared to 2012 -13. The decrease in net position over the three -year period totals $72.1
million or - 11.34% and is the result of the combination of net income, expenses, capital contributions,
and the implementation of GASB 68 and GASB 71 which required the District to record the Net Pension
Liability in 2014 -15.
By far the largest portion of the District's net position (101.70% 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 $4.3 million
restricted for debt service. The remaining balance of -$13.9 million in unrestricted net position
decreased by $85.4 million from 2013 -14 and $85.3 million from 2012 -13 due to the implementation of
GASB 68 and 71 which required the District to record its Collective Net Pension Liability.
n
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 14 -15 FY 14 -15
vs. vs.
2014 -15 2013 -14 2012 -13 FY 13 -14 FY 12 -13
Sewer Service Charges (SSC )
$ 82,916,457
$ 72,422,285
$ 67,254,405
14.49%
23.29%
Other Service Charges and
Miscellaneous
1,599,997
1,579,723
1,828,281
1.28%
- 12.49%
Total Operating Revenue
84,516,434
74,002,008
69,082,686
14.21%
22.34%
Property Tax
14,083,331
13,093,841
13,010,477
7.56%
8.25%
Permit & Inspection Fees
1,843,922
1,575,251
1,169,809
17.06%
57.63%
Interest and All Other
2,147,005
1,291,752
1,356,574
66.21%
58.27%
Total Non - Operating
Revenues
18,074,278
15,960,844
15,536,860
13.24%
16.33%
Total Revenues
102,590,712
89,962,852
84,619,546
14.04%
21.24%
I
I
I
I
I
I I
Total Labor and Benefits
66,104,630
58,954,453
49,811,218
12.13%
32.71%
Chemicals & Utilities
5,532,237
6,002,514
5,420,789
- 7.83%
2.06%
Repairs and Maintenance
3,873,557
3,126,617
3,151,127
23.89%
22.93%
Professional, Legal and
Outside Services
3,322,881
3,995,861
2,836,638
- 16.84%
17.14%
Materials & Supplies
1,934,253
2,060,796
1,980,314
- 6.14%
-2.33%
Hauling and Disposal
884,703
914,739
1,088,294
- 3.28%
- 18.71%
Self- Insurance Expense
1,333,518
858,738
2,380,466
55.29%
- 43.98%
Pension Expense
(3,012,757)
-
-
100.00%
100.00%
All Other
1,636,826
1,702,131
472,630
- 3.84%
246.32%
Depreciation Expense
22,740,942
21,892,545
21,596,266
3.88%
5.30%
Total Operating Expenses
104,350,790
99,508,394
88,737,742
4.87%
17.59%
Non - Operating Expense -
Interest Expense
1,523,127
1,996,689
1,802,084
- 23.72%
- 15.48%
Total Expenses
105,873,917
101,505,083
90,539,826
4.30%
16.94%
Income Before Capital
Contributions
(3,283,205)
(11,542,231)
(5,920,280)
- 71.55%
- 44.54%
Customer Contributions (SSC)
6,769,623
10,486,067
8,001,147
- 35.44%
- 15.39%
Contributed Sewer Lines
794,218
1,462,316
939,628
- 45.69%
- 15.48%
Capital Contributions -
Connection Fees
6,673,298
8,224,517
6,091,529
- 18.86%
9.55%
Total Capital Contributions
14,237,139
20,172,900
15,032,304
- 29.42%
-5.29%
Change in Net Position
10,953,934
8,630,669
9,112,024
26.92%
20.21%
Beginning Net Position
644,345,666
635,714,997
626,602,973
1.36%
2.83%
Restatement -
Implementation of GASB 68
and GASB 71
(91,692,522)
-
-
100.00%
100.00%
Ending Net Position
$ 563,607,078
$ 644,345,666
$ 635,714,997
- 12.53%
- 11.34%
Revenue
Total operating revenues increased from $69.1 million in 2012 -13 to $74.0 million in 2013 -14 and to
$84.5 million in 2014 -15. Operating revenues increased by $10.5 million or 14.21% compared to 2013-
14, and increased by $15.4 million or 22.34% comparing 2014 -15 to 2012 -13.
Total non - operating revenue increased from $15.5 million in 2012 -13 to $16.0 million in 2013 -14 and to
$18.1 million in 2014 -15. An increase compared to 2013 -14 by $2.1 million or 13.24 %, and increased
by $2.5 million or 16.33% comparing 2014 -15 to 2012 -13.
Total revenues increased from $84.6 million in 2012 -13 to $90.0 million in 2013 -14 to $102.6 million in
2014 -15. The change in total revenue resulted in an increase of $12.6 million or 14.04% comparing
2014 -15 to 2013-14, and increased by $18.0 million or 21.24% comparing 2014 -15 to 2012-13. There
was an 8.40% SSC rate increase in 2014 -15, 9.16% SSC rate increase in 2013 -14 and 8.80% increase in
SSC for 2012 -13. Property tax revenue increased by $1.0 million or 7.56% from 2014 -15 to 2013 -14,
and $1.1 million or 8.25% comparing 2014 -15 to 2012 -13.
Expenses
Total expenses increased from $90.5 million in 2012 -13 to $101.5 million in 2013 -14 and to $105.9
million in 2014 -15. In 2014 -15, total expenses increased by $4.4 million or 4.30% compared to 2013-
14. Comparing 2014 -15 to 2012 -13, total expenses were $15.3 million or 16.94% higher. Increases
were mainly due to higher labor and benefit costs along with technical services for temporary staff.
Labor costs increased due to the filling of vacant positions, cost -of- living adjustments, merit increases,
and additional payment of the unfunded actuarial accrued liability (UAAL). 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 -$5.9 million in 2012 -13, to -$11.5 million in 2013-
14, and -$3.3 million in 2014 -15.
Total capital contributions in 2014 -15 were $14.2 million compared to $20.2 million in 2013 -14 and
$15.0 million in 2012 -13. This was mainly due to changes in customer contributions SSC due to annual
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 increased by $2.3
million or 26.92% when comparing 2014 -15 to 2013 -14 and increased $1.8 million or 20.21% when
comparing 2014 -15 to 2012 -13.
Col
CAPITAL ASSETS
Capital assets for fiscal years 2014 -15, 2013 -14 and 2012 -13 totaled $609.7 million, $608.6 million, and
$604.0 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, 2015, the District's investment in capital assets totaled $609.7 million, an increase of $1.1
million or 0.19% over the capital asset balance of $608.6 million at June 30, 2014. Capital assets
increased by $5.7 million or 0.95% comparing 2014 -15 to 2012 -13. A comparison of the District's
capital assets over the past three fiscal years is presented below:
% Increase
Capital Assets Fiscal Year Ended June 30 (Decrease)
FY 14- FY 14 -15
15 vs. vs.
FY 13- FY 12 -13
2014 -15 2013 -14 2012 -13 14
Land
$ 17,320,570
$ 17,320,570
$ 17,262,249
0.00%
0.34%
Sewage Collection System
331,167,382
318,206,017
311,633,989
4.07%
6.27%
Contributed Sewer Lines
153,091,464
152,297,246
150,834,930
0.52%
1.50%
Outfall Sewers
11,339,298
11,339,298
11,338,935
0.00%
0.00%
Sewage Treatment Plant
320,717,418
303,606,835
299,830,466
5.64%
6.97%
Recycled Water Infrastructure
19,065,139
17,127,656
13,515,026
11.31%
41.07%
Pumping Stations
56,046,563
54,956,574
54,412,730
1.98%
3.00%
Buildings
42,412,648
42,196,085
36,120,720
0.51%
17.42%
Intangible Assets
4,875,507
4,812,127
4,596,467
1.32%
6.07%
Furniture & Equipment
10,886,007
10,025,826
15,651,212
8.58%
- 30.45%
Motor Vehicles
6,883,134
6,721,031
6,558,065
2.41%
4.96%
Construction In Progress
13,958,646
27,508,158
24,533,254
49.26%
- 43.10%
Subtotal
987,763,776
966,117,423
946,288,043
2.24%
4.38%
Less Accumulated
Depreciation
378,045,297
357,534,155
342,302,574
5.74%
10.44%
Total Capital Assets (net of
depreciation)
$ 609,718,479
$ 608,583,268
$ 603,985,469
0.19%
0.95%
The major reasons for the increase in capital assets, net of depreciation, of $1.1 million from 2013 -14 to
2014 -15 and $5.7 million from 2012 -13 to 2014 -15, are as follows:
• Treatment plant infrastructure renovations, upgrades, equipment, and improvements increased by
$17.1 million comparing 2014 -15 to 2013 -14 and $20.9 million comparing 2014 -15 to 2012 -13.
• Sewer pipe ongoing renovations, upgrades, expansion, pumping station improvements, and
contributed sewer lines increased by $14.8 million comparing 2014 -15 to 2013 -14 and $23.4
million comparing 2014 -15 to 2012 -13.
• Buildings increased by $0.2 million comparing 2014 -15 to 2013 -14 and $6.3 million comparing
2014 -15 to 2012 -13.
• All other asset categories, including construction in progress, decreased by $10.5 million
comparing 2014 -15 to 2013 -14 and decreased by $9.1 million comparing 2014 -15 to 2012 -13.
7
• Capital asset increases are offset by an increased subtraction of accumulated depreciation of
$20.5 million comparing 2014 -15 to 2013 -14 and $35.7 million comparing 2014 -15 to 2012 -13
due to increasing capital asset investment and its associated depreciation expense.
See Note 5 in the audited financial statements.
DEBT ADMINISTRATION
The total debt obligations for fiscal years 2014 -15, 2013 -14 and 2012 -13 totaled $36.5 million, $40.6
million, and $44.5 million, respectively. As of June 30, 2015, the District's outstanding debt totaled
$36.5 million, which is a decrease of $4.0 million or -9.94% over the debt balance of $40.6 million at
June 30, 2014. Debt decreased by $7.9 million or - 17.81% comparing 2014 -15 to 2012 -13. 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 14 -15 FY 14 -15
vs. vs.
2014 -15 2013 -14 2012 -13 FY 13 -14 12 -13
Revenue Bonds
$ 36,010,000
$ 39,875,000
$ 43,595,000
-9.69%
- 17.40%
Water Reclamation Loan
533,385
702,245
866,827
- 24.05%
- 38.47%
Total Debt Service
$ 36,543,385
$ 40,577,245
$ 44,461,827
-9.94%
-17.81%
See Note 6 in the audited financial statements.
ECONOMIC AND OTHER FACTORS
The Federal and State of California economies have experienced higher revenue projections and
spending increases as a result of the recovery from the 2008 recession. These higher revenue
projections result in a multibillion - dollar influx of new funds for schools and community colleges under
Proposition 98 minimum funding guarantee. The Governor's priorities are to continue to reduce the
retiree health liabilities and continue to build up reserves to 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.
8
• 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.
• Increased demand for recycled water from District customers as a result of the mandatory water
restrictions due to the current severe drought conditions in the state.
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.
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF NET POSITION
JUNE 30, 2015 AND 2014
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 cash equivalents (Notes I.E. and 2)
Restricted investments (Note 2)
Assessment Districts receivable (Note 4)
Net OPEB asset (Note 10)
Capital assets:
Nondepreciable (Note 5)
Depreciable, net of accumulated depreciation (Note 5)
Total capital assets, net
Total non - current assets
TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES
Pension related (Note 9)
10
2015 2014
$45,218,013
$47,929,530
15,498,572
9,993,211
17,141,474
16,944,993
60,067
31,081
2,079,435
2,088,885
2,556,794
2,303,942
82,554,355
79,291,642
100,000
100,000
4,856,450
5,474,874
1,669,686
1,838,490
1,206,765
1,207,678
36,154,723 49,640,855
573,563,756 558,942,413
609,718,479
608,583,268
617,551,380
617,204,310
700,105,735
696,495,952
$12,420,138 -
(Continued)
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF NET POSITION
JUNE 30, 2015 AND 2014
LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued expenses
Interest payable
Refunding Water Revenue Bonds - current portion (Note 6)
Water Reclamation Loan Contract - current portion (Note 6)
Accrued compensated absences - current portion (Note 1.I.)
Provision for uninsured claims (Note 7)
Refundable deposits
Total current liabilities
NON - CURRENT LIABILITIES
Refunding Water Revenue Bonds, noncurrent portion (Note 6)
Water Reclamation Loan Contract, noncurrent portion (Note 6)
Accrued compensated absences, noncurrent portion (Note 1.I.)
Collective net pension liability (Note 9)
Total non - current liabilities
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
Pension related (Note 9)
NET POSITION (Note 11)
Net investment in capital assets
Restricted for debt service
Unrestricted
TOTAL NET POSITION
See accompanying notes to financial statements
II
IM 1; IM a
$5,374,441 $5,842,430
621,847 673,380
2,210,000 3,865,000
173,251 168,861
403,000 385,000
1,000,000 1,000,000
?46 9aR ?1() RIR
10 n ?9 AR7 12 1 a5 ino
33,800,000
36,010,000
360,134
533,384
3,629,271
3,461,393
89,535,510 -
127,324,915 40,004,777
137,354,402 52,150,286
i MUTARMI
573,175,094
568,006,023
4,288,008
4,809,248
(13,856,024)
71,530,395
$563,607,078 $644,345,666
This Page Left Intentionally Blank
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FOR THE YEARS ENDED JUNE 30, 2015 AND 2014
2015 2014
OPERATING REVENUES
Sewer service charges (SSC) $70,023,512 $60,796,421
Service charges - City of Concord (Note 8) 12,892,945 11,625,864
Other services charges 1,006,197 1,035,134
Miscellaneous charges 593,780 544,589
Total operating revenues 84,516,434 74,002,008
OPERATING EXPENSES
Sewage collection and pumping stations
18,200,513
16,109,927
Sewage treatment
29,507,722
27,808,819
Engineering
13,200,972
12,308,802
Administrative and general
23,713,398
21,388,301
Pension expense
(3,012,757)
-
Depreciation
22,740,942
21,892,545
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS
Total operating expenses
104,350,790
99,508,394
(91,692,522)
OPERATING (LOSS)
(19,834,356)
(25,506,386)
NONOPERATING REVENUES (EXPENSES)
Taxes
14,083,3 31
13,093,841
Permit and inspection fees
1,843,942
1,575,251
Interest earnings
318,475
359,288
Interest expense
(1,523,127)
(1,996,689)
Other income (expense), net
1,828,530
932,464
Total nonoperating revenues (expenses), net
16,551,151
13,964,155
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS
(3,283,205)
(11,542,231)
CAPITAL CONTRIBUTIONS
City of Concord contributions to capital costs (Note 8)
2,897,491
3,820,858
Customer contributions to capital cost (SSC)
3,872,132
6,665,209
Contributed sewer lines
794,218
1,462,316
Capital contributions - connection fees
6,673,298
8,224,517
Total capital contributions
14,237,139
20,172,900
CHANGE IN NET POSITION
10,953,934
8,630,669
NET POSITION, BEGINNING OF YEAR
644,345,666
635,714,997
Prior period adjustment for implementation of GASB Statements 68 and 71 (Note 9)
(91,692,522)
-
NET POSITION, END OF YEAR
$563,607,078
$644,345,666
See accompanying notes to financial statements
13
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 2015 AND 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers
Payments to employees and related benefits
Net Cash Provided (Used) by Operating Activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Receipt of taxes
Inspection /permit fees and other non - operating income
Cash Flows from Noncapital Financing Activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contributions
Connection fees
Acquisition and construction of capital assets
Interest paid on long -term debt
Principal payments on long -term debt
Cash Flows (Used for) Capital and Related Financing Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Redemption and acquisition of investments, net
Interest received
Cash Flows from Investing Activities
NET INCREASE (DECREASE) IN CASH
Cash, beginning of year
Cash, end of year
See accompanying notes to financial statements
14
2015 2014
$84,488,757 $73,825,535
(48,383,516) (43,766,726)
(36,727,579) (33,353,995)
(622,338) (3,295,186)
14,083,331 13,093,841
3,672,472 2,507,715
17,755,803 15,601,556
7,563,841
11,948,383
6,673,298
8,224,517
(23,876,153)
(26,490,344)
(1,574,660)
(1,726,169)
(4,033,860)
(3,884,582)
(15,247,534) (11,928,195)
(4,886,937) 443,039
289,489 393,528
(4,597,448) 836,567
(2,711,517) 1,214,742
48,029,530 46,814,788
$45,318,013 $48,029,530
(Continued)
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 2015 AND 2014
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
Net OPEB asset
Accounts payable and accrued expenses
Accrued payroll and related expenses
Refundable deposits
Net pension liability
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
Total cash and cash equivalents at end of year
2015 2014
($19,834,356) ($25,506,386)
22,740,942 21,892,545
(27,677)
(176,473)
9,450
(83,144)
(252,852)
(99,732)
913
329,960
(467,989)
465,495
185,878
13,148
36,110
(130,599)
(3,012,757)
-
($622,338) ($3,295,186)
$289,489 $393,528
633,208 1,153,968
$922,697 $1,547,496
$45,218,013 $47,929,530
100,000 100,000
$45,318,013 $48,029,530
See accompanying notes to financial statements
15
This Page Left Intentionally Blank
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 1— DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
A. Reporting Entity
The Central Contra Costa Sanitary District (District), a special district and a public entity
established under the Sanitary District Act of 1923, provides sewer service for the incorporated
and unincorporated areas under its jurisdiction. A Board of Directors comprised of five elected
members governs the District.
As required by accounting principles generally accepted in the United States of America, these
basic financial statements present the financial statements of Central Contra Costa Sanitary
District and its component unit. The component unit discussed in the following paragraph is
blended in the District's reporting entity because of the significance of its operational and
financial relationship with the District.
Blended Component Unit - Component units are legally separate organizations for which the
District is financially accountable. Component units may also include organizations that are
fiscally dependent on the District, in that the District approves their budget, the issuance of their
debt or the levying of their taxes. In addition, component units are other legally separate
organizations for which the District is not financially accountable but the nature and significance
of the organization's relationship with the District is such that exclusion would cause the District's
financial statements to be misleading or incomplete. For financial reporting purposes, the
component unit discussed below is reported in the District's financial statements because of the
significance of its relationship with the District. The component unit, although a legally separate
entity, is reported in the financial statements using the blended presentation method as if it were
part of the District's operations because the Governing Board of the component unit is the same
as of Governing Board of the District and because its purpose is to finance facilities to be used for
the direct benefit of the District. The Central Contra Costa Sanitary District Facilities Financing
Authority (Authority) was organized solely for the purpose of providing financial assistance to the
District. The Authority does this by acquiring, constructing, improving and financing various
facilities, land and equipment purchases, and by leasing or selling certain facilities, land and
equipment for the use, benefit and enjoyment of the public served by the District. The Authority
has no employees 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, 2015 AND 2014
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, 2015 AND 2014
NOTE 1— DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
C. Investments
Investments held at June 30, 2015 and 2014 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 financial statements.
E. Bank Escrow Deposit
An escrow agreement was formed between the District and the National Park Service for the
right -of -way through the John Muir National Historic Site, in lieu of issuing a performance bond.
The current right -of -way permit is 10 years, but is renewable and must remain in effect so long as
there is sewage running through the area; therefore, it is unlikely that the escrow funds will ever
be released to the District. These funds are listed as restricted cash in the financial statements.
F. Parts and Supplies
Parts and supplies are valued at average cost and are used primarily for internal purposes.
G. Property, Plant, and Equipment
Purchased capital assets are stated at historical cost. Capital assets contributed to the District are
stated at estimated fair value at the time of contribution. The capitalization threshold for capital
assets is $5,000. Expenditures which materially increase the value or life of capital assets are
capitalized and depreciated over the remaining useful life of the asset.
Depreciation of exhaustible capital assets has been provided using the straight -line method over
the asset's useful life as follows:
Motor Vehicles 7-15
19
Years
Sewage Collection Facilities 7
75
Intangible Assets 7
75
Sewage Treatment Plant and Pumping Plants 4
40
Buildings 5
50
Furniture and Equipment 5
5-15
19
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 1— DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
H. Property Taxes
Property tax revenue is recognized in the fiscal year for which the tax is levied. The County of
Contra Costa levies, bills and collects property taxes for the District; all material amounts are
collected by June 30.
General County taxes collected are the same as the amount levied since the County participates in
California's alternative method of apportionment called the Teeter Plan. The Teeter Plan as
provided in Section 4701 at seq. of the State of Revenue and Taxation Code establishes a
mechanism for the County to advance the full amount of property tax and other levies to taxing
agencies based on the tax levy, rather than on the basis of actual tax collections. Although this
system is a simpler method to administer, the County assumes the risk of delinquencies. The
County in return retains the penalties and accrued interest thereon.
Secured property tax bills are mailed once a year, during the month of October on the current
secured tax roll, to the owner of the property as of the lien date (January 1). Payments can be
made in two installments, and are due on November 1 and February 1. Delinquent accounts are
assessed a penalty of 10 percent. Accounts which remain unpaid on June 30 are charged an
additional 1 %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.
I. 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.
Im
2015
2014
Beginning Balance
$3,846,393
$3,833,245
Additions
413,745
391,927
Payments
(227,867)
(378,779)
Ending Balance
$4,032,271
$3,846,393
Current Portion
$403,000
$385,000
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.
Im
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 1– DESCRIPTION OF DISTRICT AND SUMMAR W 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. 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 implemented this Statement in fiscal year ending June 30, 2015, which
required a restatement to the District's financial statements. The financial statements for fiscal
year ended June 30, 2014 could not be restated as the information required to do so was not
readily available. See Note 9 for additional information.
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, 2015.
This Statement did not have any impact on the financial statements.
GASB Statement No. 70 – In 2013, the GASB issued Statement No. 70, Accounting and
Financial Reporting for Nonexchange Finance Guarantees. This Statement requires a
government that extends a nonexchange financial guarantee to recognize a liability when
qualitative factors and historical data, if any, indicate that it is more than likely than not the
government will be required to make a payment on that guarantee. The provisions of this
Statement are effective for reporting periods beginning after June 15, 2013, therefore, the District
implemented this statement for fiscal year ended June 30, 2015, and had no impact on the
financial statements.
21
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 1– DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
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 implemented this Statement in fiscal year ending June
30, 2015, along with GASB 68 as discussed above.
GASB Statement No. 72 – In 2015, the GASB issued Statement No. 72, Fair Value
Measurement and Application. This Statement addresses accounting and financial reporting
issues related to fair value measurements. The Statement provides guidance for determining a
fair value measurement for financial reporting purposes. This Statement also provides guidance
for applying fair value to certain investments and disclosures related to all fair value
measurements. The requirements of this Statement are effective for financial statements for
period beginning after June 15, 2015, therefore, the District will implement this Statement in
fiscal year ending June 3 0, 2016.
NOTE 2 – CASH AND INVESTMENTS
A. Summary of Cash andlnvestments
Cash and investments as of June 30, are classified in the accompanying financial statements as
follows:
2015 2014
Cash and cash equivalents $45,218,013 $47,929,530
Short term investments 15,498,572 9,993,211
Restricted cash and cash equivalents 100,000 100,000
Restricted investments 4,856,450 5,474,874
Total Cash and Investments $65,673,035 $63,497,615
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.
22
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 2 — CASH AND INVESTMENTS (Continued)
C. General Authorizations
Limitations as they relate to interest rate risk, credit risk, and concentration of credit risk are
indicated in the schedules below:
Maximum
Remaining
Authorized Investment Type Maturity
U.S. Treasury Obligations
Banker's Acceptances
Commercial Paper (1)
Collateralized Certificates of Deposit (2)
County Pooled Investment Funds
Local Agency Investment Fund (LAIF)
District District
California State Limits Policy Policy
Maximum
None
Maximum Maximum Percentage
Minimum
Percentage Investment of Portfolio
Legal
of Portfolio In One Issuer (Per Issuer)
Quality
5 years
None
None
100%
N/A
180
40%
40%
10%
N/A
270
25%
10%
10%
Aaa
5 years
30%
None
10%
Aaa
N/A
None
None
100%
N/A
N/A
None
None
100%
N/A
(1) Prime quality; limited to corporations with assets over $500,000,000
(2) Prior approval of the Board of Directors must be obtained to acquire maturities beyond one year, excluding Treasury
Notes and LAIF.
D. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment; generally, the longer the maturity of an investment, the greater the sensitivity of
its fair value to changes in market interest rates. It is the District's policy to manage exposure to
interest rate risk by purchasing a combination of shorter term and longer term investments and by
timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to
maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
District policy is that investment maturities do not exceed one year, with the exception of Treasury
Notes or Local Agency Investment Fund; however, investments can be held longer with Board
approval.
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:
23
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 2 — CASH AND INVESTMENTS (Continued)
2015
46,500,000
61,974,873
1,522,742
$63,497,615
Not applicable
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the actual rating as of June 30, of each
investment type:
Investment Type
Rated Aaa:
Certificates of Deposit
Money Market - Debt Reserve
U.S. Federal Agency Securities
Commercial Paper
Totals
Not rated.-
California Local Agency Investment Fund
Cash in Bank
Total Cash and Investments
24
Totals
2015 2014
$7,106,450 $4,856,450
618,423
3,500,000
9,750,000
20,356,450
43,000,000
2,316,585
$65,673,035
10,000,000
15,474,873
46,500,000
1,522,742
$63,497,615
12 Months
12 Months
Investment Type
or less
Maturity
$4,856,450
Certificates of Deposit - Debt Reserve
$4,856,450
4/28/17
Money Market - Debt Reserve
7/25/14
5,000,000
Certificates of Deposit
2,250,000
7/24/15
Commercial Paper - Union Bank
Commercial Paper - Toyota Motor Credit
5,000,000
7/24/15
Commercial Paper - Toyota Motor Corp
2,250,000
7/24/15
Commercial Paper - General Electric
2,500,000
7/24/15
U.S Federal Agency Securities - FHLB
2,500,000
7/22/15
U.S Federal Agency Securities - FNMA
1,000,000
8/12/15
California Local Agency Investment Fund
43,000,000
Not applicable
Total Investments
63,356,450
Cash in bank
2,316,585
Total Cash and Investments
$65,673,035
E. Credit Risk
46,500,000
61,974,873
1,522,742
$63,497,615
Not applicable
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the actual rating as of June 30, of each
investment type:
Investment Type
Rated Aaa:
Certificates of Deposit
Money Market - Debt Reserve
U.S. Federal Agency Securities
Commercial Paper
Totals
Not rated.-
California Local Agency Investment Fund
Cash in Bank
Total Cash and Investments
24
Totals
2015 2014
$7,106,450 $4,856,450
618,423
3,500,000
9,750,000
20,356,450
43,000,000
2,316,585
$65,673,035
10,000,000
15,474,873
46,500,000
1,522,742
$63,497,615
2014
12 Months
or less
Maturity
$4,856,450
4/28/15
618,423
24 days (avg.)
5,000,000
7/25/14
5,000,000
10/21/14
46,500,000
61,974,873
1,522,742
$63,497,615
Not applicable
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the actual rating as of June 30, of each
investment type:
Investment Type
Rated Aaa:
Certificates of Deposit
Money Market - Debt Reserve
U.S. Federal Agency Securities
Commercial Paper
Totals
Not rated.-
California Local Agency Investment Fund
Cash in Bank
Total Cash and Investments
24
Totals
2015 2014
$7,106,450 $4,856,450
618,423
3,500,000
9,750,000
20,356,450
43,000,000
2,316,585
$65,673,035
10,000,000
15,474,873
46,500,000
1,522,742
$63,497,615
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 2 — CASH AND INVESTMENTS (Continued)
F. Concentration of Credit Risk
The District is a voluntary participant in LAIF which is regulated by the California Government
Code under the oversight of the Treasurer of the State of California. LAIF is not registered with
the Securities and Exchange Commission. The fair value of the District's investment in this pool
is reported in the accompanying financial statements at amounts based upon the District's pro -
rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the
amortized cost of that portfolio). The balance available for withdrawal is based on the accounting
records maintained by LAIF, which are recorded on an amortized cost basis. At June 30, 2015
and 2014, these investments matured in an average of 191 and 232 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.
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, 2015 and 2014 are comprised of the following:
City of Concord (see Note 8)
Household Hazardous Waste Partners
All Other
Total Accounts Receivable
25
2015 2014
$15,790,436 $15,446,722
749,827 755,296
601,211 742,975
$17,141,474 $16,944,993
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 4 — ASSESSMENT DISTRICTS RECEIVABLE
The District established the Contractual Assessment District (CAD) program to help homeowners
finance the cost of connecting to the District. The construction costs associated with the project
within the program are capitalized and depreciated. Individual homeowners are assessed at an
amount equal to their share of the construction costs and connection fee. The assessments, plus
interest, are generally payable over 10 years. The CAD receivable balance at June 30, 2015 and
2014 was $289,505 and $353,380, 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,
2015 and 2014 was $1,380,181 and $1,485,110, respectively.
The total receivable balance at June 30, 2015 and 2014 for CAD and AVAD was $1,669,686 and
$1,838,490, and is shown as a non - current asset on the Statement of Net Position.
ei
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 5 — CAPITAL ASSETS
Property, plant and equipment, and construction in progress are summarized below for the year
ended June 30, 2015:
Capital assets not being depreciated:
Land
Easements (intangible)
Construction in Progress
Total nondepreciated assets
Capital assets being depreciated:
Sewage collection system
Contributed sewer lines
Outfall sewers
Sewage treatment plant
Recycled water infrastructure
Pumping stations
Buildings
Furniture and equipment
Motor vehicles
Total depreciated assets
Less accumulated depreciation:
Sewage collection system
Contributed sewer lines
Outf all sewers
Sewage treatment plant
Recycled water infrastructure
Pumping stations
Buildings
Furniture and equipment
Motor vehicles
Total accumulated depreciation
Total capital assets being
depreciated, net
Capital assets, net
Balance at
June 30, 2014
Additions
Retirements
Transfers & Balance at
Adjustments June 30, 2015
$17,320,570
$17,320,570
4,812,127
$63,380
4,875,507
27,508,158
$23,254,156
($5,629)
(36,798,039)
13,958,646
49,640,855
23,254,156
(5,629)
(36,734,659)
36,154,723
318,206,017
(580,000)
13,541,365
331,167,382
152,297,246
633,208
(5,582)
166,592
153,091,464
11,339,298
11,339,298
303,606,835
(850,000)
17,960,583
320,717,418
17,127,656
1,937,483
19,065,139
54,956,574
(80,000)
1,169,989
56,046,563
42,196,085
216,563
42,412,648
10,025,826
(450,000)
1,310,181
10,886,007
6,721,031
(269,800)
431,903
6,883,134
916,476,568
633,208
(2,235,382)
36,734,659
951,609,053
57,348,606
4,379,033
(580,000)
61,147,639
53,161,229
2,043,448
55,204,677
3,163,443
150,964
3,314,407
190,858,122
10,594,739
(850,000)
200,602,861
6,527,311
749,676
7,276,987
26,503,493
2,219,770
(80,000)
28,643,263
9,158,948
1,228,278
10,387,226
6,473,327
1,026,524
(450,000)
7,049,851
4,339,676
348,510
(269,800)
4,418,386
357,534,155
22,740,942
(2,229,800)
378,045,297
558,942,413
(22,107,734)
(5,582)
36,734,659
573,563,756
$608,583,268
$1,146,422
($11,211)
-
$609,718,479
27
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 5 — CAPITAL ASSETS (Continued)
Property, plant and equipment, and construction in progress are summarized below for the year
ended June 30, 2014:
Capital assets not being depreciated:
Land
Easements (intangible)
Construction in Progress
Total nondepreciated assets
Capital assets being depreciated:
Sewage collection system
Contributed sewer lines
Outfall sewers
Sewage treatment plant
Recycled water infrastructure
Pumping stations
Buildings
Intangibles
Furniture and equipment
Motor vehicles
Total depreciated assets
Less accumulated depreciation:
Sewage collection system
Contributed sewer lines
Outfall sewers
Sewage treatment plant
Recycled water infrastructure
Pumping stations
Buildings
Intangibles
Furniture and equipment
Motor vehicles
Total accumulated depreciation
Total capital assets being
depreciated, net
Capital assets, net
Balance at
Transfers &
Balance at
June 30, 2013
Additions
Retirements
Adjustments
June 30, 2014
$17,262,249
$58,321
$17,320,570
4,812,127
4,812,127
24,533,254
$26,848,688
($1,510,352)
(22,363,432)
27,508,158
41,795,503
26,848,688
(1,510,352)
(17,492,984)
49,640,855
311,633,989
6,572,028
318,206,017
150,834,930
1,153,968
308,348
152,297,246
11,338,935
363
11,339,298
299,830,466
(102,000)
3,878,369
303,606,835
13,515,026
3,612,630
17,127,656
54,412,730
(25,000)
568,844
54,956,574
36,120,720
(38,000)
6,113,365
42,196,085
4,596,467
(4,596,467)
15,651,212
(6,408,774)
783,388
10,025,826
6,558,065
(89,150)
252,116
6,721,031
904,492,540
1,153,968
(6,662,924)
17,492,984
916,476,568
53,103,663
4,244,943
57,348,606
51,127,280
2,033,949
53,161,229
3,012,4 81
150,962
3,163,443
180,670,824
10,289,298
(102,000)
190,858,122
5,898,343
628,968
6,527,311
24,342,929
2,185,564
(25,000)
26,503,493
8,059,168
1,137,780
(38,000)
9,158,948
135,316
(135,316)
11,851,588
1,028,553
(6,406,814)
6,473,327
4,100,982
327,844
(89,150)
4,339,676
342,302,574
22,027,861
(6,660,964)
(135,316)
357,534,155
562,189,966 (20,873,893)
$603,985,469 $5,974,795
28
(1,960) 17,628,300 558,942,413
($1,512,312) $135,316 $608,583,268
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 6 — LONG -TERM DEBT
A. Summary of Activity
The changes in the District's long -term obligations during the year ended June 30, 2015 consisted
of the following:
2009 Series A Certificates of Participation
Wastewater Revenue
3.45 - 3.78 %, due 9/1/2029
2009 Series B Certificates of Participation
Wastewater Revenue
.40- 3.79 %, due 9/1/2029
1999 State Water Resources Control Board
Water Reclamation Loan
2.60 %, due 3/31/2018
Total Long -Term Debt
Less current portion
Original Amount
Issue Balance Balance due within
Amount June 30, 2014 Retirements June 30, 2015 one year
$19,635,000 $19,635,000
$19,635,000
34,490,000 20,240,000 $3,865,000
16,375,000 $2,210,000
2,916,872 702,245 168,860
533,385 173,251
40,577,245 $4,033,860
36,543,385 $2,383,251
(4,033,861)
(2,383,251)
$36,543,384
$34,160,134
The changes in the District's long -term obligations during the year ended June 30, 2014 consisted
of the following:
2009 Series A Certificates of Participation
Wastewater Revenue
3.45 - 3.78 %, due 9/1/2029
2009 Series B Certificates of Participation
Wastewater Revenue
.40- 3.79 %, due 9/1/2029
1999 State Water Resources Control Board
Water Reclamation Loan
2.60 %, due 3/31/2018
Total Long -Term Debt
Less current portion
Original Amount
Issue Balance Balance due within
Amount June 30, 2013 Retirements June 30, 2014 oneyear
$19,635,000 $19,635,000
$19,635,000
34,490,000 23,960,000 $3,720,000
20,240,000 $3,865,000
2,916,872 866,827 164,582
702,245 168,861
44,461,827 $3,884,582
40,577,245 $4,033,861
(3,884,582)
(4,033,861)
$40,577,245
$36,543,384
29
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 6 — LONG -TERM DEBT (Continued)
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
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
1,190,840
2,580,000
226,950
2,580,000
1,417,790
(416,794)
3,580,996
2021 -2025
$8,890,000
4,629,784
4,400,000
377,958
13,290,000
5,007,742
(1,620,424)
16,677,318
2026 - 2030
10,745,000
1,582,862
10,745,000
1,582,862
(554,002)
11,773,860
Total
$19,635,000
$12,166,846
$16,375,000
$2,460,899
$36,010,000
$14,627,745
(14,258,396)
$46,379,349
As part of the Federal budget sequestration, the Internal Revenue Service (IRS) has announced
that, as of March 1, 2015, credit payments claimed by issuers of certain tax credit bonds,
including Build America Bonds, may be subject to a reduction of 7.3 %.
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.
W
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 6 — LONG -TERM DEBT (Continued)
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
2016
2017
2018
Total
NOTE 7 — RISK MANAGEMENT I
Principal
Interest
Total
$173,251
$13,867
$187,118
177,756
9,363
187,119
182,378
4,742
187,120
$533,385
$27,972
$561,357
The District is exposed to various risks of loss including torts, theft of, damage to, and
destruction of assets, errors and omissions, injuries to employees, and natural disasters. To
manage these risks, the District joined with other entities to form the California Sanitation Risk
Management Authority ( CSRMA), a public entity risk pool currently operating as a common risk
management and insurance program for the member entities. The purpose of CSRMA is to
spread the adverse effects of losses among the member entities and to purchase excess insurance
as a group, thereby reducing its cost. Through CSRMA, the District purchases property
insurance and workers' compensation insurance.
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
Self Insured
Deductible Per
Insurer Limits Occurrence
Public Entity Property Insurance
Program (PEPIP)
$552,288,290
$250,000
Public Entity Property Insurance
Program (PEPIP)
100,000,000
250,000
Alliant
1,000,000
2,500
Chartis Specialty Insurance Co.
15,000,000
1,000,000
Chartis Specialty Insurance Co.
15,000,000
1,000,000
Hiscox Insurance Company
1,000,000
35,000
Chartis Specialty Insurance Co.
15,000,000
1,000,000
Chartis Specialty Insurance Co.
15,000,000
1,000,000
Aspen Specialty Insurance Company
9,000,000
50,000
Aspen Specialty Insurance Company
1,000,000
5,000
Aspen Specialty Insurance Company
9,000,000
50,000
RLI Insurance Company
1,000,000
0
CSRMA
31
Statutory
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
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, 2015, 2014, and 2013, settlements have not exceeded insurance
coverage. Changes in the District's estimated liability for retained losses are summarized as
follows as of June 30:
2015 2014 2013
Beginning balance $1,000,000 $1,000,000 $1,000,000
Provisions for claims incurred in the current year
and changes in the liability for retained -
losses incurred in prior years
Claims paid and /or adjustments
Ending balance
499,956 171,806 1,659,291
(499,956) (171,806) (1,659,291)
$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 $12,892,945 and $2,897,491,
respectively, for the year ended June 30, 2015, for a total of $15,790,436. 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.
32
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 9 — PENSION PLANS
A. Contra Costa County Employees' Retirement Association Pension Plan
Plan Descriptions — 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 193 7, as amended, and the California Public Employees' Pension Reform Act
of 2013 (PEPRA). The latest available actuarial and financial information for the Plan is for the
year ended December 31, 2014. CCCERA 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.
Benefits Provided — 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.
The Plans' provisions and benefits in effect at June 30, 2015, are summarized as follows:
Hire date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of eligible compensation
Required employee contribution rates
Required employer contribution rates
Miscellaneous
On or after
Prior to January 1, 2013 January 1, 2013
2% at 55
2.5% at 67
10 years service
5 years service
monthly for life
monthly for life
50
52
0% to 100%
No limit
7.93% - 8.22%
6.72%
74.93% - 77.24%
66.77%
Contributions — 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. For the year ended June 30, 2015, the
contributions recognized as part of pension expense for the Plan were $20,795,609.
33
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 9 — PENSION PLANS (Continued)
Pension Liabilities, Pension Expenses and Deferred Ou flows /Inflows of Resources Related to
Pensions - As of June 30, 2015, the District reported net pension liabilities for its proportionate
share of the net pension liability of the Plan as follows:
Proportionate Share
of Net Pension Liability
Miscellaneous $89,535,510
Total Net Pension Liability $89,535,510
The District's net pension liability for the Plan is measured as the proportionate share of the net
pension liability. The net pension liability of the Plan is measured as of December 31, 2014, and
the total pension liability for the Plan used to calculate the net pension liability was determined by
an actuarial valuation as of December 31, 2013 rolled forward to December 31, 2014 using
standard update procedures. The District's proportion of the net pension liability was based on a
projection of the District's long -term share of contributions to the pension plan relative to the
projected contributions of all participating employers, actuarially determined. The District's
proportionate share of the net pension liability for the Plan as of December 31, 2013 and 2014
was as follows:
Proportionate share of the Plan Fiduciary Net
Reporting Date for Proportion of the Proportionate share Covered- Net Pension Liability as a Pension as a
Employer under GASB 68 Net Pension of Net Pension employee percentage of its covered- percentage of the Total
as of December 31 Liability Liability payroll employee payroll Pension Liability
2013 7.488% $110,183,830 $25,791,346 427.21% 67.22%
2014 7.488% 89,535,510 26,906,131 332.77% 73.86%
For the year ended June 30, 2015, the District recognized pension expense of $20,795,609. At
June 30, 2015, the District reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Outflows
of Resources
Pension contributions subsequent to measurement date $10,499,528
Differences between expected and actual experience
Changes of assumptions
Change in proportion and differences between employer
contributions and proportionate share of contributions 1,920,610
Net difference between projected and actual earnings
on pension plan investments
Total
34
Deferred Inflows
of Resources
$10,759,725
4,431
800,237
$12,420,138 $11,564,393
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 9 — PENSION PLANS (Continued)
The $10,499,528 reported as deferred outflows of resources related to contributions subsequent to
the measurement date will be recognized as a reduction of the net pension liability in the year
ended June 30, 2016.
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized as pension expense as follows:
Year Ended
Deferred Outflows
Deferred Inflows
June 30
of Resources
of Resources
2016
$529,076
$3,185,676
2017
529,076
3,185,676
2018
529,076
3,185,676
2019
333,383
2,007,366
2020
-
-
Actuarial Assumptions — The total pension liabilities in the December 31, 2013 actuarial
valuations were determined using the following actuarial assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Amortization Method
Actuarial Assumptions:
Discount Rate
Inflation Rate
Payroll Growth
Projected Salary Increase
Cost of Living Adjustments
Investment Rate of Return
Mortality
Miscellaneous
December 31, 2013
December 31, 2014
Entry Age Actuarial Cost Method
Level percent of payroll for total unfunded liability
7.25%
3.25%
4.00%
4.75% - 13.50% (1)
3.00%
7.25%(2)
RP -2000 Combined Healthy Mortality Table
(1) Vary by service, including inflation
(2) Net of pension plan investment expenses, including inflation
35
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 9 — PENSION PLANS (Continued)
Discount Rate — The discount rate used to measure the total pension liability was 7.25% for the
Plan. The projection of cash flows used to determine the discount rate assumed plan member
contributions will be made at the current contribution rate and that employer contributions will be
made at rates equal to the actuarially determined contribution rates. For this purpose, only
employee and employer contributions that are intended to fund benefits for current plan members
and their beneficiaries are included. Projected employer contributions that are intended to fund
the service costs for future plan members and their beneficiaries, as well as projected
contributions from future plan members, are not included. Based on those assumptions, the
pension plan's fiduciary net position was projected to be available to make all projected future
benefit payments for current plan members. Therefore, the long -term expected rate of return on
pension plan investments was applied to all periods of projected benefit payments to determine
the total pension liability as December 31, 2014.
The long -term expected rate of return on pension plan investments was determined in 2013 using
a building -block method in which expected future real rates of return (expected returns, net of
inflation) are developed for each major asset class. The target allocation and projected arithmetic
real rates of return for each major asset class, after deducting inflation, but before investment
expenses, used in the derivation of the long -term expected investment rate of return assumption
are summarized in the following table:
36
Long -Term
Target
Epected Real
Asset Class
Allocation
Rate of Return
Large Cap U.S. Equity
13.60%
6.09%
SmallCap U.S. Equity
5.80%
6.79%
Developed International Equity
17.60%
6.66%
Emerging Markets Equity
5.60%
8.02%
U.S. Core Fixed Income
16.10%
0.83%
International Bonds
3.30%
0.69%
High Yield Bonds
5.00%
3.32%
Inflation - Indexed Bonds
1.66%
0.73%
Long Duration Fixed Income
5.00%
1.45%
Real Estate
12.50%
4.83%
Commodities
1.67%
4.71%
Private Equity
10.00%
8.95%
Alternative Investment (Timber)
1.67%
4.20%
Cash & Equivalents
0.50%
0.25%
Total
100%
36
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 9 — PENSION PLANS (Continued)
• change in the discount rate would affect the measurement of the Total Pension Liability (TPL).
• lower discount rate results in a higher TPL and higher discount rates results in a lower TPL.
Because the discount rate does not affect the measurement of assets, the percentage change in the
Net Pension Liability (NPL) can be very significant for a relatively small change in the discount
rate. The table below shows the sensitivity of the NPL to a one percent decrease and a one percent
increase in the discount rate:
Miscellaneous
1% Decrease 6.25%
Net Pension Liability $133,403,317
Current Discount Rate 7.25%
Net Pension Liability $89,535,510
1% Increase 8.25%
Net Pension Liability $53,123,397
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 $1,740,604 and $1,646,041 to
the Plan during the years ended June 30, 2015 and 2014, 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.
37
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
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.
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 $1,206,765 and $1,207,678 as of June 30, 2015 and 2014, 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 2015, the District's annual OPEB cost (expense) was equal to the ARC of $8,128,000. The
District contributed $5,314,087 for retiree health care premiums and $2,810,000 to the PARS
trust for a total of $8,124,087. The following table summarizes the changes in the District's net
OPEB (Asset) at June 30, 2015:
38
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 10 — POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Net OPEB Obligation (Asset) at June 30, 2013 ($1,537,638)
Annual Required Contribution (ARC)
$8,103,000
Interest on Net OPEB Asset
(95,000)
Adjustment to ARC
120,000
Annual OPEB Cost (AOC)
8,128,000
Contributions Made:
AOC
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)
Annual Required Contribution (ARC) 8,103,000
Interest on Net OPEB Asset (75,000)
Adjustment to ARC 97,000
Annual OPEB Cost (AOC) 8,125,000
Contributions Made:
Health care premiums paid (5,314,087)
Contributions to PARS trust (2,810,000)
Increase (decrease) in net OPEB obligation 913
Net OPEB Obligation (Asset) at June 30, 2015 ($1,206,765)
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:
39
Annual
Percentage of
Net OPEB
OPEB Cost
Actual
AOC
Current
Obligation
Fiscal Year
(AOC)
Contribution
Contributed
Year AOC
(Asset)
June 30, 2013
$8,316,000
$8,590,096
103%
($274,096)
($1,537,638)
June 30, 2014
8,128,000
7,798,040
96%
329,960
(1,207,678)
June 30, 2015
8,125,000
8,124,087
100%
913
(1,206,765)
39
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 10 — POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
D. Funded Status and Funding Progress
Per PARS, trust assets as of June 30, 2015 and 2014, including trust contributions and interest,
total $39,917,736 and $36,131,536, 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 information below and the required supplementary information immediately following
the notes to the financial statements 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. Trend data from the most recent actuarial study is presented below:
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, 2014 and was finalized
on April 6, 2015. The July 1, 2012 actuarial valuation results are budgeted in fiscal year 2014-
15.
40
Unfunded
Unfunded
(Overfunded)
Cost Method
(Overfunded)
Actuarial
Actuarial
Actuarial
Actuarial
Covered Payroll
Liability as
Actuarial
Value of
Accrued
Accrued
Funded
(Active Plan
Percentage of
Valuation
Assets
Liability
Liability
Ratio
Members)
Covered Payroll
Date
(A)
(B)
(A — B) UAAL
(AB)
(C)
1(A — B) /Cl
July 1, 2014
$33,695,000
$103,904,000
($70,209,000)
32.43%
$27,930,233
251%
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, 2014 and was finalized
on April 6, 2015. The July 1, 2012 actuarial valuation results are budgeted in fiscal year 2014-
15.
40
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
NOTE 10 — POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
The following is a summary of the actuarial assumptions and methods:
Valuation Date
Actuarial Cost Method
Amortization Method
Average Remaining Period
Actuarial Assumptions:
Inflation Rate
Investment Rate of Return
Projected Salary Increases
Post - Retirement Benefit Increases
Health Care Cost Trend Rates
NOTE 11— NET POSITION
July 1, 2014
Entry Age Normal Cost Method
Level Dollar /Closed
25 Years fixed
3.00%
6.25%
3.25%
No planned changes
Medical - 8.3% grading to 5% in 2021 - 22
Medicare Part B - same as medical trend
Dental - 4%
Net Position is the excess of all the District's assets over all its liabilities, regardless of fund. Net
Position is divided into three captions:
Net Investment in Capital Assets describes the portion of Net Position which is represented by
the current net book value of the District's capital assets, less the outstanding balance of any debt
issued to finance these assets.
Restricted describes the portion of Net Position which is restricted as to use by the terms and
conditions of agreements with outside parties, governmental regulations, laws, or other
restrictions which the District cannot unilaterally alter.
Unrestricted describes the portion of Net Position which is not restricted as to use.
NOTE 12 — LEASE COMMITMENTS
The District leases various facilities and equipment under operating leases. Following is a
summary of operating lease commitments as of June 30, 2015:
Fiscal Year
Ending
2016
Total
Office
Equipment
Facilities Total
$249,924 $29,712 $279,636
$249,924 $29,712 $279,636
Total rental expense for the fiscal years ended June 30, 2015 and 2014 was $308,484 and
$309,320, respectively.
41
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended 30, 2015 AND 2014
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 $9,493,695 and $13,901,807 as of June 30, 2015 and 2014, respectively.
42
REQUIRED SUPPLEMENTARY INFORMATION
CENTRAL CONTRA COSTA SANITARY DISTRICT
Cost - Sharing Multiple Employer Defined Benefit Retirement Plan
As of fiscal year ended June 30, 2015
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
Last 10 Years*
Net Change in Total Pension Liability
Service Cost
Interest on the Total Pension Liability
Expensed portion of current- period changes in proportion and difference
between employer's contributions and proportionate share of
contributions
Expensed portion of current - period benefit changes
Expensed portion of current- period difference between expected and
actual experience in the Total Pension Liability
Expensed portion of current- period changes of assumptions or other
inputs
Member contributions
Projected earnings on plan investments
Expensed portion of current - period differences between actual and
projected earnings on plan investments
Administrative expense
Other
Recognition of beginnin gf year deferred outflows of resources as
pension expense
Recognition of beginning of year deferred inflows of resources as
pension expense
Net amortization of deferred amounts from changes in proportion and
differences between employer's contributions and proportionate share of
contributions
Net change in total pension liability
Reconciliation of Net Pension Liability
Beginnin g Ndtension Liability
Pension expense
Employer contributions
New net deferred inflows /outflows
New net deferred outflows to change in proportion
Net pension liability - ending
Plan fiduciary net position as a percentage of the total pension liability
Covered - employee payroll
Net pension liability as percentage of covered - employee payroll
Notes to Schedule:
2015
14,396,402
42,024,521
533,503
(2,988,813)
(1,231)
(5,860,025)
(34,980,271)
(200,059)
522,670
$ 13,446,697
$ 110,183,830
13,446,697
(24,451,234)
(11,564,393)
1,920,610
$ 89,535,510
85.25%
26,906,131
332.77%
Changes in assumptions - In 2015, amounts reported as changes in assumptions resulted primarily from adjustments to expected retirement ages of
general employees.
* Fiscal year 2015 was the 1 st year of implementation, therefore only one year is shown.
.i
CENTRAL CONTRA COSTA SANITARY DISTRICT
Cost - Sharing Multiple Employer Defined Benefit Retirement Plan
As of fiscal year ending June 30, 2015
SCHEDULE OF CONTRIBUTIONS
Last 10 Years*
Actuarially determined contribution
Contributions in relation to the actuarially
determined contributions
Contribution deficiency (excess)
Covered - employee payroll
Contributions as a percentage of covered -
employee payroll
Notes to Schedule
Valuation date:
2015
$ 24,451,234
24,451,234
$ 26,906,131
90.88%
12/31/2013
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age
Amortization method Level percentage of payroll, closed
Remaining amortization period 9 years **
Asset valuation method 5 -year semi - annually
Inflation 3.25%
Salary increases 4.75% - 13.50%
Investment rate of return 7.25 %, net of pension plan investment expense, including inflation
Retirement age 50 years Classic, 52 years PEPRA
Mortality RP -2000 Combined Healthy Mortality Table
with setbacks and forwards
* Fiscal year 2015 was the 1 st year of implementation, therefore only one year is shown.
** Remaining balance of December 31, 2007 UAAL is amortized over a fixed (decreasing or closed) period
with 9 years remaining as of December 31, 2013. Any changes in UAAL after December 31, 2007 will be
separately amortized over a fixed 18 -year period effective with that valuation. Any changes in UAAL due
to plan amendments will be amortized over a 10 -year fixed period effective with that valuation.
45
CENTRAL CONTRA COSTA SANITARY DISTRICT
Post Retirement Health Care Defined Benefit Plan
Schedule of Funding Progress
As of fiscal year ended June 30, 2015
Last Three Valuations
.,
Unfunded
Unfunded
(Overfunded)
Cost Method
(Overfunded)
Actuarial
Actuarial
Actuarial
Actuarial
Covered Payroll
Liability as
Actuarial
Value of
Accrued
Accrued
Funded
(Active Plan
Percentage of
Valuation
Assets
Liability
Liability
Ratio
Members)
Covered Payroll
Date
(A)
(B)
(A — B) UAAL
(A/B)
(C)
r(A — B) /C)
June 30, 2010
$9,404,000
$90,337,000
($80,933,000)
10.41%
$25,080,233
323%
July 1, 2012
22,481,000
100,498,000
(78,017,000)
22.37%
24,305,548
321%
July 1, 2014
33,695,000
103,904,000
(70,209,000)
32.43%
27,930,233
251%
.,
SUPPLEMENTARY INFORMATION
CENTRAL CONTRA COSTA SANITARY DISTRICT
COMBINING SCHEDULE OF NET POSITION
ENTERPRISE SUB -FUNDS
JUNE 30, 2015
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Short term investments
Accounts receivable
Interest receivable
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
DEFERRED OUTFLOWS OF RESOURCES
Pension related
LIABILITIES
CURRENT LIABILITIES:
Accounts payable and accrued expenses
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
Net pension liability
Total noncurrent liabilities
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
Pension related
NET POSITION
Net investment in capital assets
Restricted for debt service
Unrestricted
TOTAL NET POSITION
Running Sewer Self Debt
Expense Construction Insurance Service
Elimination Total
$36,519,705
$2,170,462 $6,527,846
$45,218,013
15,498,572
15,498,572
14,014,359
3,127,115
17,141,474
573,563,756
6,662 $53,405
60,067
2,079,435
-
2,079,435
2,556,794
1,669,686
2,556,794
55,170,293
20,802,811 6,527,846 53,405
82,554,355
100,000 100,000
4,856,450 4,856,450
1,669,686 1,669,686
1,206,765 1,206,765
36,154,723
36,154,723
573,563,756
573,563,756
609,718,479
-
-
609,718,479
611,025,244
1,669,686
-
4,856,450
617,551,380
666,195,537
22,472,497
6,527,846
4,909,855
700,105,735
12,420,138
12,420,138
2,883,250
2,372,067
119,124
5,374,441
621,847
621,847
2,210,000
2,210,000
173,251
173,251
403,000
403,000
1,000,000
1,000,000
134,969
111,979
246,948
3,421,219
2,484,046
1,119,124
3,005,098
10,029,487
33,800,000
33,800,000
360,134
360,134
3,629,271
3,629,271
89,535,510
89,535,510
93,164,781
-
34,160,134
127,324,915
96,586,000
2,484,046
1,119,124
37,165,232
137,354,402
11,564,393
11,564,393
609,718,479
(36,543,385)
573,175,094
4,288,008
4,288,008
(39,253,197)
19,988,451
5,408,722
(13,856,024)
$570,465,282
$19,988,451
$5,408,722
($32,255,377)
$563,607,078
48
CENTRAL CONTRA COSTA SANITARY DISTRICT
COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
ENTERPRISE SUB -FUNDS
FOR THE YEAR ENDING JUNE 30, 2015
NONOPERATING REVENUES (EXPENSES)
Taxes
Permit and inspection fees
Interest earnings
Interest expense
Other income (expense), net
Total nonoperating revenues
NET INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS
CAPITAL CONTRIBUTIONS AND TRANSFERS
City of Concord contributions to capital costs
Customer contributions to capital cost (SSC)
Contributed sewer lines
Capital contributions - connection fees
Transfers In (Out)
Total capital contributions and transfers
CHANGE IN NET POSITION
NET POSITION, BEGINNING OF YEAR
Running Sewer
Self
Debt
14,083,331
1,529,282
Expense Construction
Insurance
Service Elimination
Total
OPERATING REVENUES
98,829
10,832
42,601
318,475
Sewer service charges (SSC)
$70,023,512
(1,523,127)
$70,023,512
Service charges - City of Concord
12,892,945
837,137
(837,137)
12,892,945
Other services charges
1,006,197
847,969
4,033,863 (837,137)
1,006,197
Miscellaneous charges
593,780
(485,549)
4,033,863 -
593,780
Total operating revenues
84,516,434
84,516,434
OPERATING EXPENSES
2,897,491
3,872,132
Sewage collection and pumping stations
18,200,513
3,872,132
794,218
18,200,513
Sewage treatment
29,507,722
794,218
29,507,722
Engineering
13,200,972
6,673,298
68,756,177
13,200,972
Administrative and general
23,217,017
$1,333,518
($837,137)
23,713,398
Pension expense
(3,012,757)
14,237,139
52,589,438
(3,012,757)
Depreciation
22,740,942
10,953,934
609,568,366
22,740,942
Total operating expenses
103,854,409
1,333,518
(837,137)
104,350,790
OPERATING INCOME (LOSS)
(19,337,975)
(1,333,518)
837,137
(19,834,356)
NONOPERATING REVENUES (EXPENSES)
Taxes
Permit and inspection fees
Interest earnings
Interest expense
Other income (expense), net
Total nonoperating revenues
NET INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS
CAPITAL CONTRIBUTIONS AND TRANSFERS
City of Concord contributions to capital costs
Customer contributions to capital cost (SSC)
Contributed sewer lines
Capital contributions - connection fees
Transfers In (Out)
Total capital contributions and transfers
CHANGE IN NET POSITION
NET POSITION, BEGINNING OF YEAR
Prior period adjustment due to implementation of
GASB Statements 68 and 71 (91,692,522) (91,692,522)
NET POSITION, END OF YEAR $570,465,282 $19,988,451 $5,408,722 ($32,255,377) $563,607,078
Me
$8,568,942
$5,514,389
14,083,331
1,529,282
314,660
1,843,942
166,213
98,829
10,832
42,601
318,475
(1,523,127)
(1,523,127)
681,523
1,147,007
837,137
(837,137)
1,828,530
2,377,018
10,129,438
847,969
4,033,863 (837,137)
16,551,151
(16,960,957)
10,129,438
(485,549)
4,033,863 -
(3,283,205)
2,897,491
2,897,491
3,872,132
3,872,132
794,218
794,218
6,673,298
6,673,298
68,756,177
(34,882,677)
2,415,740
(36,289,240)
69,550,395
(21,439,756)
2,415,740
(36,289,240)
14,237,139
52,589,438
(11,310,318)
1,930,191
(32,255,377)
10,953,934
609,568,366
31,298,769
3,478,531
644,345,666
Prior period adjustment due to implementation of
GASB Statements 68 and 71 (91,692,522) (91,692,522)
NET POSITION, END OF YEAR $570,465,282 $19,988,451 $5,408,722 ($32,255,377) $563,607,078
Me
v,
0
CENTRAL CONTRA COSTA SANITARY DISTRICT
Schedule of Running Expenses
Comparison of Budget and
Actual Expenses by
Department
June 30, 2015
Sewage
Variance
Sewage
Treatment
Pumping
Favorable
Administration
Engineering
Collection
Plant
Station
Total
Budget
(Unfavorable)
Salaries and Wages
$5,102,955
$6,297,739
$5,579,510
$9,664,530
$1,000,360
$27,645,094
$28,618,169
$973,075
Employee Benefits
14,401,040
7,321,071
6,793,803
11,500,843
1,121,003
41,137,760
41,833,388
695,628
Less Capitalized
Overhead and Benefits
(14,802)
(2,506,166)
(38,429)
(117,410)
(1,417)
(2,678,224)
(3,806,958)
(1,128,734)
Total Salaries and Benefits
19,489,193
11,112,644
12,334,884
21,047,963
2,119,946
66,104,630
66,644,599
539,969
Directors' Fees and Expense
148,449
-
-
-
-
148,449
199,800
51,351
Chemicals
-
-
-
1,066,497
434,704
1,501,201
1,605,000
103,799
Utilities
73,114
181,086
140,127
3,126,373
510,336
4,031,036
4,861,350
830,314
Repairs and Maintenance
503,221
177,385
1,171,342
1,764,762
256,847
3,873,557
4,911,762
1,038,205
Hauling and Disposal
-
409,489
121,421
344,967
8,826
884,703
1,040,200
155,497
Professional and Legal Services
311,348
109,298
5,765
9,233
-
435,644
539,400
103,756
Outside Services
1,446,640
826,917
44,388
508,815
60,477
2,887,237
3,303,021
415,784
Self Insurance
650,000
-
-
-
-
650,000
650,000
-
Materials and Supplies
118,096
195,221
786,832
807,153
26,951
1,934,253
2,024,315
90,062
Other
476,961
188,928
143,073
831,957
34,595
1,675,514
2,419,448
743,934
$23,217,022
$13,200,968
$14,747,832
$29,507,720
$3,452,682
$84,126,224
$88,198,895
$4,072,671
CENTRAL CONTRA COSTA SANITARY DISTRICT
RUNNING EXPENSE
SCHEDULE OF SUPPLEMENTAL NET POSITION ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2015
Prior Year Balance
2014 -2015 Revenue
2014 - 2015 Expense
Add Back Depreciation Expense and Intangible Assets Adjustment
Net Position Attributed to General Operations
Net Position Attributed to All Other
Runn irFgpense Net Position
51
$11,299,959
$86,893,452
(103,854,409)
22,740,942 5,779,985
17,079,944
553,385,338
$570,465,282
This Page Left Intentionally Blank
..tom
.A
� S
The Treatmen' a
rds Suisun Bay, 2014.
s
''l
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 Nine 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
34,678,665
37,312,472
39,440,034
39,986,763
41,705,131
45,562,430
49,811,218
58,954,452
66,104,630
7,646,866
Changes in Net Position and Statement of Net Position
8,952,840
9,368,755
7,973,992
7,609,127
8,121,809
7,401,103
8,063,309
7,466,490
2,850,825
Last Ten Fiscal Years
2,613,658
2,832,001
2,129,552
2,425,615
4,099,876
2,836,638
3,995,860
3,322,881
3,826,165
4,105,082
Changes in Net Position
2005 -2006
2006 -2007
2007 -2008
2008 -2009
2009 -2010
2010 -2011
2011 -2012
2012 -2013
2013 -2014
2014 -2015
Operating Revenues:
(688,859)
119,051
(65,688)
159,961
214,290
496,381
-
-
-
-
Sewer Service Charges (SSC)
$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
$70,023,512
City of Concord
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
12,892,945
Other Service Charges
755,827
793,395
869,589
872,978
824,022
913,017
915,485
1,076,401
1,035,134
1,006,197
Miscellaneous Charges
517,741
863,843
595,980
667,855
650,876
662,721
929,917
751,880
544,589
593,780
Total Operating Revenue
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
84,516,434
Operating Expenses:
Salaries & Benefits
Chemicals, Utilities & Supplies
Professional & Outside Services
Hauling, Disposal, Repairs & Maintenance
Self- Insurance (net of transfers)
Pension Expense
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
Prior Period Adjustment - GASB 68 and 71
Total Net Assets - Ending
Statement of Net Position
Net Investment in Capital Assets
Restricted for Debt Service
Unrestricted
Total Net Position
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
66,104,630
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
7,466,490
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
3,322,881
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
4,758,260
629,513
(180,716)
(215,004)
90,876
(688,859)
119,051
(65,688)
159,961
214,290
496,381
-
-
-
-
-
-
-
-
-
(3,012,757)
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
22,740,942
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
2,473,963
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
104,350,790
(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)
(19,834,356)
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
14,083,331
2,062,216
1,615,308
1,335,160
1,093,756
776,348
895,825
903,810
1,169,809
1,575,251
1,843,942
2,465,985
3,257,773
2,527,621
1,033,095
570,024
673,990
294,938
405,474
359,288
318,475
(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)
(1,523,127)
1,096,401
1,316,383
1,243,817
639,523
12,295
(523,209)
931,660
951,100
932,464
1,828,530
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
16,551,151
(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)
(3,283,205)
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
6,769,623
3,044,945
3,521,704
1,444,420
1,231,022
1,840,259
533,616
792,011
939,628
1,462,316
794,218
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
6,673,298
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
10,953,934
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
(91,692,522)
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
563,607,078
2005 -2006
2006 -2007
2007 -2008
2008 -2009
2009 -2010
2010 -2011
2011 -2012
2012 -2013
2013 -2014
2014 -2015
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
573,175,094
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
4,288,008
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
(13,856,024)
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
563,607,078
' 2009 -2010 property taxes 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
N
R
O
G
$140,000,000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
Central Contra Costa Sanitary District
Revenue By Type
Last Ten Fiscal Years
2005 -2006 2006 -2007 2007 -2008 2008 -2009 2009 -2010 2010 -2011 2011 -2012 2012 -2013 2013 -2014 2014 -2015
Fiscal Year
oOperating Revenue 0Non- Operating Revenue
Oneratina Revenue
Fiscal
Year
Sewer Service
Charges*
City of
Concord
Other Service
Charges
Miscellaneous
Charges
Total
Operating
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
2014 -2015
70,023,512
12,892,945
1,006,197
593,780
1 84,516,434
Non- Ooeratina Revenue
Fiscal
Year
Property
Taxes *1
Customer
Contributions *2
Connections
& Other Fees *3
Interest
All
Other
Total Non - Operating
& Contributions
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
2014 -2015
14,083,331
7,563,841
8,517,240
318,475
1,828,530
32,311,417
* 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. S -2
Source: Central Contra Costa Sanitary District Audited Financial Statements
OPERATING EXPENSES
Fiscal
Year
Central Contra Costa Sanitary District
Operating Expenses by Type
Last Ten Fiscal Years
Chemicals, Utilities
& Supplies
$110,000,000
$100,000,000
$90,000,000
$80,000,000
$70,000,000
$60,000,000
o $50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
Hauling, Disposal,
Repairs & Maintenance
Self- Insurance
Depreciation
Pension All
Expense* Other
Total Operating
Expenses
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
$-
21,596,266
472,630
88,737,742
$(10,000,000)
2005 -2006 2006 -2007 2007 -2008 2008 -2009 2009 -2010 2010 -2011 2011 -2012 2012 -2013 2013 -2014 2014 -2015
Fiscal Year
■Salaries and Benefits []Chemicals, Utilities &Supplies El Professional &Outside Services Hauling, Disposal, Repairs &Maintenance ■Self- Insurance ❑Depreciation El Pension Expense` ❑ All Other
58,954,453
8,063,310
3,995,861
OPERATING EXPENSES
Fiscal
Year
Salaries
and Benefits I
Chemicals, Utilities
& Supplies
Professional &
Outside Services
Hauling, Disposal,
Repairs & Maintenance
Self- Insurance
Depreciation
Pension All
Expense* Other
Total Operating
Expenses
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
2014 -2015
66,104,630
7,466,490
3,322,881
4,758,260
1,146,381
22,740,942
(3,012,757) 1,823,963
104,350,790
2014 -15 pension expense is a result of the implementation of GASB 68 & 71.
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 *"
$1,694,304
1,609,104
1,518,142
1,421,686
2,539,383
2,585,112
1,919,375
1,802,084
1,996,689
1,523,127
Infnrmafin -1 - not nranho,
Central Contra Costa Sanitary District
Major Revenue Base and Rates
Historical and Current Fees
Last Ten Fiscal Years
Fiscal Year
2005 -2006
2006 -2007
2007 -2008
2008 -2009
2009 -2010
2010 -2011
2011 -2012
2012 -2013
2013 -2014
2014 -2015
Annual Sewer Service Charge (SSC) `1
$500 1
$450 J
Pump
Zone Fee "3
$400
$350
$234
$300
y
$4,150
m
$250
76
289
Q
$200
242
58
300
$150
1,466
$100
51
$50
4,923
$0
292
2005 -2006 2006 -2007 2007 -2008 2008 -2009 2009 -2010 2010 -2011 2011 -2012 2012 -2013 2013 -2014 2014 -2015
311
Fiscal Year
1,651
❑Operations ■Capital
Fiscal Year
2005 -2006
2006 -2007
2007 -2008
2008 -2009
2009 -2010
2010 -2011
2011 -2012
2012 -2013
2013 -2014
2014 -2015
Annual Sewer Service Charge (SSC) `1
Facility
Capacity Fee •2
Pump
Zone Fee "3
Operations Capital Total
$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
416
23
439
5,995
1,585
`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
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%
2014 -2015
80,431,132,956
1,739,342,301
82,170,475,257
7.9%
Property Tax and Sewer Service Charge Fees Levied and Collected
Last Ten Fiscal Years
General County taxes collected are the same as the amount levied since the County participates in California's alternative method of
apportionment called the Teeter Plan. The Teeter Plan as provided in Section 4701 et seq. of the State Revenue and Taxation Code,
establishes a mechanism for the County to advance the full amount of property tax and other levies to taxing agencies based on the
tax levy, rather than on the basis of actual tax collections. Although this system is a simpler method to administer, the County 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
Property Tax*
Sewer Service Charges*
Fiscal Year
Levied & Collected
% Change
Levied & Collected
% Change
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%
2014 -2015
14,195,300
8.3%
72,622,738
9.0%
General County taxes collected are the same as the amount levied since the County participates in California's alternative method of
apportionment called the Teeter Plan. The Teeter Plan as provided in Section 4701 et seq. of the State Revenue and Taxation Code,
establishes a mechanism for the County to advance the full amount of property tax and other levies to taxing agencies based on the
tax levy, rather than on the basis of actual tax collections. Although this system is a simpler method to administer, the County assumes
the risk of delinquencies. The County in return retains the penalties and accrued interest thereon.
** Actual amount received from the County. Net of Prop 1A loan to state of $985,916.
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 1.
Chevron Offices & Office Park 2.
Contra Costa County General Services 4.
First Walnut Creek Mutual
Park Regency Apartments
Second Walnut Creek Mutual Apts
Sun Valley Mall
Archstone/Treat Commons Apartments
Reflections San Ramon Apartments 3.
Kaiser Foundation Hospital 4.
St. Mary's College Contract
Branch Creek Vista Apartmenst
Willows Shopping Center 4.
Bay Landing Apartments
John Muir Health 4.
Total
Customer
City of Concord 1.
Contra Costa County General Services 4.
First Walnut Creek Mutual
Park Regency Apartments
Second Walnut Creek Mutual Apts
Sun Valley Mall
Branch Creek Vista Apartments
Kaiser Foundation Hospital 4.
Bay Landing Apartments
Archstone Apartments
Muirland @ Windemere Apartments
John Muir Health 4.
Willows Shopping Center 4.
St. Mary's College Contract
Central Contra Costa Sanitary District
Sewer Service Charge
List Of Ten Largest Customers
Ten Fiscal Years
2005 -2006
10
2006 -2007
Operating
2007 -2008
Operating
2008 -2009
Rank
2009 -2010
$9,224,952
1
Percentage of
301,430
Percentage of
0.50%
Percentage of
3
Percentage of
277,412
Percentage of
Operating
233,250
Operating
Operating
193,957
Operating
Operating
124,400
Operating
Operating
122,760
Operating
Operating
119,350
Operating
Revenue
Rank
Revenue
Revenue
Rank
Revenue
Revenue
Rank
Revenue
Revenue
Rank
Revenue
Revenue
Rank
Revenue
$7,383,011
1
15.90%
$9,043,215
1
19.76%
$8,206,860
1
16.45%
$8,755,857
1
16.40%
$8,664,668
1
14.73%
-
-
-
-
340,389
2
0.68%
363,739
2
0.68%
165,561
7
0.28%
295,173
2
0.64%
322,351
2
0.70%
316,854
3
0.64%
320,866
3
0.60%
305,880
2
0.52%
266,000
3
0.57%
274,550
3
0.60%
285,000
4
0.57%
295,450
4
0.55%
295,450
3
0.50%
249,760
4
0.54%
257,788
4
0.56%
267,600
5
0.54%
277,412
5
0.52%
277,412
4
0.47%
210,000
5
0.45%
216,750
5
0.47%
225,000
6
0.45%
233,250
6
0.44%
233,250
5
0.40%
169,916
6
0.37%
176,293
6
0.39%
183,380
8
0.37%
190,734
7
0.36%
197,566
6
0.34%
142,800
7
0.31%
-
-
-
-
-
-
-
-
139,062
8
030%
-
-
-
-
-
126,904
9
0.27%
-
-
118,809
10
0.24%
-
-
136,753
8
0.23%
117,119
10
0.25%
127,355
8
0.28%
136,016
9
0.27%
126,222
8
0.24%
-
-
-
-
-
-
-
-
124,400
10
0.23%
124,400
9
0.21%
128,303
7
0.28%
-
-
-
-
104,040
10
0.23%
-
-
-
-
111,960
10
0.19%
-
121,613
9
0.27%
223,775
7
0.45%
125,292
9
0.23%
-
-
$9,099,745
19.60%
$10,772,258
23.54%
$10,303,683
20.66%
$10,813,222
20.26%
$10,512,900
17.87%
2010 -2011
111,960 8 0.19%
108,850 9 -10 0.18%
108,850 9 -10 0.18%
2011 -2012
10
Percentage of
Operating
6
Operating
Revenue
Rank
Revenue
$9,224,952
1
15.40%
301,430
2
0.50%
295,450
3
0.49%
277,412
4
0.46%
233,250
5
0.39%
193,957
6
0.32%
124,400
7
0.21%
111,960 8 0.19%
108,850 9 -10 0.18%
108,850 9 -10 0.18%
2011 -2012
119,407 9 0.19%
2012 -2013
10
Percentage of
Operating
6
Operating
Revenue
Rank
Revenue
$10,647,389
1
17.28%
292,384
4
0.47%
323,950
2
0.53%
304,172
3
0.49%
255,750
5
0.42%
203,037
6
0.33%
136,400
7
0.22%
122,760
8
0.20%
119,350
10
0.19%
119,350
10
0.19%
119,407 9 0.19%
2012 -2013
133,560
10
Percentage of
Operating
6
Operating
Revenue
Rank
Revenue
$10,483,421
1
15.18%
321,803
4
0.47%
352,450
2
0.51%
330,932
3
0.48%
278,250
5
0.40%
174,038
7
0.25%
148,400
9
0.21%
133,560
10
0.19%
176,381
6
0.26%
158,480
8
0.23%
2013 -2014
2014 -2015
Percentage of
Operating Operating
Revenue Rank Revenue
$12,892,945 1 15.25%
451,567 2 0.53%
417,050 3 0.49%
391,588 4 0.46%
329,250 5 0.39%
299,697 6 0.35%
175,600 7 0.21%
158,848 8 0.19%
158,040 9 0.19%
153,650 10 0.18%
153,650 10 0.18%
Total $10,980,511 18.33% $12,643,949 20.52% $12,557,715 18.18% $13,908,345 18.79% $15,581,885 18.44%
1. Contract with the City of Concord to treat and dispose of wastewater for Concord and Clayton.
2. Charges included irrigation in years 07 -08 and 08 -09.
3. Converted to condominiums during 06 -07 fiscal year.
4. Kaiser, John Muir Health, Willows Shopping Center, and County hospital are permitted industries.
Source: Central Contra Costa Sanitary District Environmental Services Division S -6
Percentage of
Operating
Operating
Revenue
Rank
Revenue
$11,625,864
1
15.71%
419,590
2
0.57%
384,750
3
0.52%
361,260
4
0.49%
303,750
5
0.41%
211,866
6
0.29%
162,000
7
0.22%
145,800
9
0.20%
148,374
8
0.20%
145,091
10
0.20%
2014 -2015
Percentage of
Operating Operating
Revenue Rank Revenue
$12,892,945 1 15.25%
451,567 2 0.53%
417,050 3 0.49%
391,588 4 0.46%
329,250 5 0.39%
299,697 6 0.35%
175,600 7 0.21%
158,848 8 0.19%
158,040 9 0.19%
153,650 10 0.18%
153,650 10 0.18%
Total $10,980,511 18.33% $12,643,949 20.52% $12,557,715 18.18% $13,908,345 18.79% $15,581,885 18.44%
1. Contract with the City of Concord to treat and dispose of wastewater for Concord and Clayton.
2. Charges included irrigation in years 07 -08 and 08 -09.
3. Converted to condominiums during 06 -07 fiscal year.
4. Kaiser, John Muir Health, Willows Shopping Center, and County hospital are permitted industries.
Source: Central Contra Costa Sanitary District Environmental Services Division S -6
$6,000,000
$5,000,000
$4,000,000
w
1° $3,000,000
0
O
$2,000,000
$1,000,000
$0
Summary Of Debt Service
Last Ten Fiscal Years
Debt Service Paid Each Fiscal Year
ryOp6 ry�'1 ryO�O ryO,9 ryO,�O ry�11 ryo ^ry ryO�'S ryO,�A ryO,�h
ryooy ryoo6, ry�ry• ry�p0 ryoog, ryo^o, ryo ^,�, ryo ^,L ryo ^,3, ryo ^b.
Outstanding Debt
$60,000,000 In 2009, the District issued Bond
debt and gained $30 million in ne
$45,000,000
$30,000,000
$15,000,000
$0
y�6 re
=ach Fiscal Year
v which retired the 2002 and 1998 bond
t proceeds dedicated to fund Capital Improvements.
,tio ,yo ,lo ,to ,yo
Note: Details regarding the District's outstanding debt can be found in the notes to the financial statements.
<a> GASS Statement No. 65 required that bond issuance costs of $315,287, previously being amoritized annually, be expensed in FY 2013 -14.
*1 2014 -15 includes implementaion of pension expense reporting changes for GASB 68 & 71.
•2 Net Revenue = Operating Revenue, less Total Operating Expenses less Depreciation, plus Non - Operating Revenue & Contributions.
*3 This ratio must be above 1.00 to meet the Debt Rate Covenant (Net Revenue/Total Debt Service).
*4 Adjusted Net Revenue = Net Revenue less Capital Improvement Fees (Connection Fees) and City of Concord Capital Charges.
*5 This ratio must be above 1.25 to meet the Debt Rate Covenant (Adjusted Net Revenue /Total Debt Service).
S -7
Debt Restrictions:
Revenue Pledge & Covenant: The District pledges
Property Tax Revenue along with its ability to raise Sewer
Service Charge (SSC) rates. Debt Coverage requirements
are discussed in the footnotes to the left.
_ Summary B Type Of Debt
Revenue Bonds (2009, 2002 & 1998
•
Total Debt Service Annual Expense
• • =
•
•
Fiscal
Interest & Total
Interest &
Total
Interest & Total
Revenue
.. •
Year
Principal Amortization Debt Service
Principal
Amortization
Debt Service
Principal Amortization Debt Service
Bonds
•.
•
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 a
5,694,151
164,581
22,537
187,118
3,884,581
1,996,688
5,881,269
39,875,000
702,245
40,577,245
2014 -2015
1 3,865,000
1 1,504,939
5,369,939
1 168,860
1 18,258
1 187,118
1 4,033,860
1 1,523,197
1 5,557,057
1 36,010,000
1 533,385
1 36,543,385
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 *1
Contributions
Revenue *2
(Net Revenue) *3
Fees /Concord
Revenue *4 (Adj. Net Revenue) *5
Operating Exp.
Customer
Per Customer
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
5,881,269
74,002,008
77,615,849
36,133,744
32,519,903
5.53
12,045,375
20,474,528
3.48
7.58%
35.31
243.60
2014 -2015
5,557,057
84,516,434
81,609,848
32,311,417
35,218,003
6.34
9,570,789
25,647,214
4.62
6.81%
32.98
216.87
Note: Details regarding the District's outstanding debt can be found in the notes to the financial statements.
<a> GASS Statement No. 65 required that bond issuance costs of $315,287, previously being amoritized annually, be expensed in FY 2013 -14.
*1 2014 -15 includes implementaion of pension expense reporting changes for GASB 68 & 71.
•2 Net Revenue = Operating Revenue, less Total Operating Expenses less Depreciation, plus Non - Operating Revenue & Contributions.
*3 This ratio must be above 1.00 to meet the Debt Rate Covenant (Net Revenue/Total Debt Service).
*4 Adjusted Net Revenue = Net Revenue less Capital Improvement Fees (Connection Fees) and City of Concord Capital Charges.
*5 This ratio must be above 1.25 to meet the Debt Rate Covenant (Adjusted Net Revenue /Total Debt Service).
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
Chevron Corporation
Doctors Medical Center
John Muir Health
Texaco Inc
Cks Employee Benefit Systems, Inc.
Contra Costa Newspapers, Inc.
DMC Foundation
St. Mary's College of California
Walmart Stores, Inc
Target Corporation
Kaiser Foundation Hospitals
John Muir Medical Center
John Muir /Mt. Diablo Medical Center
Shell /Martinez Refinery
USS Posco Industries
Bank of the West
All Others
Total
2005*
Estimated
Inside District Concord/
Total
As Of January 1
Boundaries Clayton
Served
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
2015
339,029 137,357
476,386
Source: Central Contra Costa Sanitary District Environmental Services Division
List of Nine Largest Employers in Contra Costa County
Last Year and Nine Years Ago
Employers
Chevron Corporation
Doctors Medical Center
John Muir Health
Texaco Inc
Cks Employee Benefit Systems, Inc.
Contra Costa Newspapers, Inc.
DMC Foundation
St. Mary's College of California
Walmart Stores, Inc
Target Corporation
Kaiser Foundation Hospitals
John Muir Medical Center
John Muir /Mt. Diablo Medical Center
Shell /Martinez Refinery
USS Posco Industries
Bank of the West
All Others
Total
2005*
Estimated
% of Total County
Employees
Rank
Employment
5,000
1
1.0%
900
8
0.2%
3,400
2
0.7%
2,300
3
0.5%
1,900
4
0.4%
1,500
5
0.3%
1,000
6
0.2%
975
7
0.2%
800
9
0.2%
466,425
96.3%
484,200 100.0%
2014*
Chanae
0.2%
0.8%
0.7%
1.0%
1.3%
•1.4%
1.3%
1.4%
0.7%
1.2%
Estimated
% of Total County
Employees
Rank
Employment
1,500
1
0.3%
1,500
2
0.3%
1,223
3
0.2%
1,000
4
0.2%
984
5
0.2%
960
6
0.2%
930
7
0.2%
917
8
0.2%
759
9
0.1%
496,327 98.1%
506,100 100.0%
Source: * County of Contra Costa, California, Comprehensive Annual Financial Report for 6/30/14, Statistical Section, principal employers excludes government employers.
S -8
Central Contra Costa Sanitary District
Demographic and Economic Statistics
Contra Costa County
Last Ten Fiscal Years
Fiscal Year
Per Capita
Ended
Personal
Personal
June 30
Population*
Income*
Income*
2005
999,013
51,888,889,000
51,940
2006
1,000,834
55,543,645,000
55,497
2007
1,009,152
58,099,538,000
57,573
2008
1,023,344
59,418,357,000
58,063
2009
1,037,890
56,667,977,000
54,599
2010
1,052,700
58,022,824,000
55,118
2011
1,065,917
62,693,011,000
58,816
2012
1,078,257
67,778,844,000
62,860
2013
1,094,205
69,375,880,000
63,403
2014
N/A
N/A
N/A
N/A - Information not available at this time.
Average Annual
Unemployment
Rate **
5.1%
4.5%
4.7%
6.3%
10.8%
11.3%
10.4%
9.0%
7.4%
6.2%
U.S. Department of Commerce, Bureau of Economic Analysis. Estimates for 2010 -2013 reflect county population estimates available as of March 2014.
State of California, Employment Development Department (EDD), annual calendar figure.
S -9
Central Contra Costa Sanitary District
Full -time Equivalent Employees by Department
Last Ten Fiscal Years
Full -time Equivalent Employees as of June 30
Department
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Administration
42
42
45
45
45
44
39
39
44
46
Engineering
73
75
76
80
76
75
71
75
73
72
Operations
Collection Systems
49
50
50
52
47
44
47
56
55
56
Plant
88
83
77
82
78
74
71
76
81
88
Pumping Station
9
10
11
10
10
8
7
8
8
8
Operations Total
146
143
138
144
135
126
125
140
144
152
District Total
260
269
245
261
270
261
259
256
235
254
Number of Retirees and Surviving Spouses as of June 30
Last Ten Fiscal Years
District Total 167 177 178 187 201 215 237 244 243 244
Source: Central Contra Costa Sanitary District Finance and Human Resources Divisions
S -10
Central Contra Costa Sanitary District
Capital Asset and Operating Statistics
Last Ten Calendar or Fiscal Years
`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
Millions of Gallons per Day (mgd)
Other Data
Treatment Plant
Year
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
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
41.4
41.6
38.6
36.6
32.5
38.9
37.2
33.2
33.8
30.4
Wastewater Treated per day
Calendar
48.0
50.4
41.2
41.0
37.0
40.6
41.9
39.8
36.8
35.6
1.6 mgd
Tons per Year
Number of Recycled Water Customers
Calendar
24
30
30
31
30
33
35
35
Sludge to Furnace (Dry)*1
Fiscal
15,841
15,341
15,340
15,212
15,299
15,056
15,790
15,097
14,590
16,789
Ash to Reuse Site (Wet)•2
Fiscal
5,074
4,418
4,418
4,177
4,082
3,814
3,850
3,667
3,618
3,811
`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
1,500
1,500
1,500
1,500
1,500
1,500
1,500
1,526
1526
1519
Number of pumping stations (owned)
Calendar
17
17
17
17
17
16
16
16
16
16
Recycled Water
Recycled Water Produced per day
Calendar
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
1.6 mgd
Number of Recycled Water Customers
Calendar
24
30
30
31
30
33
35
35
35
37
Household Hazardous Waste (HHW) - Inception 1997/1998
Program Participation (Number of cars)
Fiscal
23,897
26,392
27,940
28,210
29,347
29,441
29,112
29,119
30,379
31,779
Percentage of Households in Service Area
Fiscal
12.3%
13.6%
14.5%
14.4%
15.0%
15.6%
15.4%
15.4%
15.9%
16.6%
Operating Cost per Car
Fiscal
$60
$64
$61
$76
$76
$82
$87
$93
$83
$78
Pounds of HHW per Car
Fiscal
65
80
71
67
65
68
67
68
66
63
Miscellaneous Statistics
Governing Body:
Governmental Structure:
Staff:
Authority:
Services:
Type Of Treatment:
Service Area:
Total Population Served:
Sewer Service Charge:
Elected 5- Member Board of Directors
Established in 1946 under the Sanitary District Act of 1923
270 full -time equivalent employees
California Health and Safety Code Section 4700 et. Seq.
Wastewater collection, treatment, and disposal
Household Hazardous Waste Facility
Recycled Water
Discharge - Secondary; Reclamation - Tertiary
144 square miles
476,386
$439 annually per residential equivalent unit
Source: Central Contra Costa Sanitary District records S -11