HomeMy WebLinkAboutBUDGET AND FINANCE AGENDA 11-14-05 o a
Centrai Contra Costa Sanitary Distdct
BUDGET AND FINANCE COMMITTEE
Chair Lucey
Member Rockett
Monday November 14, 2005
3:30 p.m.
CSO Conference Room
1250 Springbrook Road
Walnut Creek, California
1. CALL MEETING TO ORDER
2. PUBLIC COMMENTS
3. OLD BUSINESS
4. CLAIMS MANAGEMENT
5. REPORTS/ANNOUNCEMENTS
a. Review of Fiscal Year 2004-05 Comprehensive Annual Financial Report.
b. Board Agenda Items, November 17, 2005:
• Proposed changes to capitalization limit.
• Proposed changes to investment policy.
(Opportunity for Committee to ask any questions about the two previously
discussed agenda items.)
6. REVIEW EXPENDITURES
7. ADJOURNMENT
Co Recycled Paper
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Central Contra Costa Sanitary District
November 10, 2005
TO: BOARD BUDGET AND FINANCE COMMITTEE
FROM: RANDALL MUSCRAVES
DEBBIE RATCLI FF e4
SUBJECT: November 1, 2005 Finance Committee Meeting
There were several outstanding questions from the last Board Budget and Finance
Committee meeting which required additional staff research. The questions and
answers are provided below:
1. Page 3, 157949 Alta Analytical Laboratories and 157956, Caltest
Analytical Laboratories -What services are provided by these two
laboratories?
Alta provides semi-annual testing for dioxin levels. Caltest provides pesticide
testing. Although the staff has the knowledge to perform these lab tests, they do
not have the equipment. Staff has looked at the cost of purchasing the equipment
to do the testing in-house, and found that it would not be cost effective for semi-
annual testing.
2. Page 18, 158106, SBC = Provide information on the larger invoice
amounts.
$611.41 Internet Communication Line -This charge is for the physical DSL line
and the service charge for providing Internet service.
$558.65 DID block—This is the service charge for dedicated lines. It is a block
of direct inward dial numbers.
$676.68 This is a charge for the actual phone books that are delivered and used
at the District.
$1,717.82 This charge covers the District's listings in several phone books
including Central Contra Costa and Trir-Valiey.
$706.9'1 This charge is for network access from several pump stations to the
Home office Building network.
. A question was asked regarding how man ears the D'
]I ]I District has used
Associated Right of Way.
The District of Way since has been using the services of Associated Right '
g nce 1 ggo.
We were using two firms in an effort to diversify, however, the
. fY� second firm called
Crossroads Right of Way, was purchased by Associated Right t of Way.
Legal Expenditure Summary
SELF INSURANCE FUND
Check# Check$ 1Vendor Name Account# Account$ CL Case#-Case Title
1 102275 $1,279.84 Restoration Management Co. 003-0400-991.14-22 $432.25 8Kersting PH Overflow-Claim-Restoration Services
$847-59, 9 1Paoletti Crinda Overflow Claim-Restoration Services
RUNNING EXPENSE
Check# Check$ Vendor Name Account# Account$ CL Department--Division-Description
2 158163 $7,012.91 1 Hanson Brid ett 001-0120-400.48-03 $7,012.911 ADM- Human Resources-Labor-General
3 158179 $139.75 Mary McCombs 001-0150-404.12-07 $139.15 10 McCombs (LambingBackup-PluBill Reimbursement
4 158184 $70.00 Nathan Russo 001-0150-400.12-07 $70.00 4 Russo (Mtz) Overflow-Reimbursement for Personal Property
5 158214 $1,108.90 Trucker Huss 001-0110-400.08-03 $108.40 ADM -Finance-General
$11000.50 ADM - Finance-Cafeteria Plan
6 158313 $139.75 Roto-Rooter 001-0150-400.12-07 $139.75 11 Anderson (Dan)-Backup- Plumbing Services
6L#-Claim Log Number
SL-General Liability Claims
4C-Auto Claims
- ' 200546
OVERFLOWS AND PLUMBING REIMBURSEMENT CLAIMS
� � .� �[ Claimant T� R� Paid to �s ��ld to Claim ata Cv
1 07/29/05 8o Rhaem Bokrlavwrd orinda Anthony Mkomonte PL i. T. to
2 08/01/05 124 Moraga Way Orinde Mrs.Heath 5807.64 Rastoration Management Co x807.64 CIF into front yard and basement, may No personal or mel
3 01/08105 3322 Freeman Road Walnut Creek Gait Ford P) $450.92 Radoratiom Management Co 3450.92 OJF through cleanout. Yard P �e wed•
PD $133.75 Gall Fond $133.75 OIF from manhole&into homeawraers �No real or personal property damage b eatpeded,
3395.20 Restoration Management Co 5395.20 bb*Y8rd• C4 +P only-no real or personal property damage.
4 0912005 5718 tiikins Court Martinez Nathan Russo PL
570.00 Nathan Russe averfloMrad out of OPO.cleanup costa only.
5 09P23105 7 Don Gabriel Way Orin" 5887.19 R�Management Co $957.19
Larry a Carolyn,Woodk:dk PD
OIF out of overflow prevention device(OPD)under deck t MWW costs and some casts for
6 09/27/05 224 Castle Glen Road Walnut Creek Tim Rigney PL x1.700.36 Restwetlon Management Co damage to the deck
7 09/29105 3322 Freeman Road Walnut Creek Gag FordPlc $95.00 Tim Rigney 595.00 Pkunbing big rab6u samwd
8 10101/05 2475 Pleasant HW Rd Pleasant Hip Margaret Kersting PL $318.73 Restoration Management Co To be reimbursed by Roto Rooter
$]38.36
l Kqmfing O/F from OPD in back yard. cleanup outside casts may.
9 10/13/05 5 AdK&Mo Court Or#ndaGina a Jarayce Paalettl pL 343225 RestaraWn Management Co 3570.61
10 10/17/05 3068 Via Alta $847.59 Restoration Management Co
11 101'19105 346 Cameo Drive Danville Allen Andemmon PL $139.75 Mary McCombs r
Plumbing pip eact www"Int
12 PL 3139.75 Rote-fleeter Exterior cleanup 0*-Overflow pW Of backflow prevvantlon device. No e
13 5478.56 Restoration Management Co. $618.31 P damag
14
15
19
20
21
22
23
24
25
26
27
28
29
30
Res Paid Total
Tata$-overflavrs $0.00 $7.035.0.;
17,035.05
1
a 4 k
2006-06
2004-05 AUTO CLAIMS
2M hanflon VARM Name Beftm Paid Comments
S 08P2 M lone Tree Way,Ant Dist Veh 0232 D.Marchetti $4,049.07 Struck a cement pillar while backing in a parking lot. Emp was driving back home from a plug cap on the weekend.
2
3
Reserve Paid-to-date
Total-Auto Claims $0.00 $0.00 $4,049.07
Central Contra Costa Sanitary District
November 9, 2005
TO: BOARD BUDGET & FINANCE COMMITTEE
VIA: RANDALL IVIUSGRAVES
FROM: DEBBIE RATCLIFF
SUBJECT: FISCAL YEAR 2004-2005 COMPREHENSIVE ANNUAL
FINANCIAL REPORT
Attached for your review and comment is a draft of the Fiscal Year 2004-2005
Comprehensive Annual Financial Report, which will be discussed at the Board Budget &
Finance Committee meeting on November 14, 2005. The final document will be
received by the full Board at the December 1, 2005, Board meeting at which time Board
approval will be requested to submit the report to the Government Finance Officers
Association.
N:WDMINSUP\ADMIN\RATCLIFF\04-05 Annual Report Memo.doc
DRAFT
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CENTRAL CONTRA COSTA SANITARY DISTRICT
J MARTINEZ, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2005
DRAFT
Prepared By:
Finance &Accounting Division
I
CENTRAL CONTRA COSTA SANITARY DISTRICT
Comprehensive Annual Financial Report
Table of contents
For the Year Ended June 30, 2005
INTRODUCTORY SECTION:
a'
Letter of Transmittal............................................................................................... i
Boardof Directors.................................................................................................vi
MissionStatement...............................................................................................vii
Organizationchart .............................................................................................viii
Mapof Service Area.............................................................................................ix
Certificate of Achievement.................................................................................... x
FINANCIAL SECTION:
' Independent Auditors' Report............................................................................... 1
Management's Discussion and Analysis .............................................................. 2
Basic Financial Statements
Statementof Net Assets............................................................................ 7
Statement of Revenues, Expenses and changes in Net Assets ............... 8
Statement of Cash Flows........................................................................... 9
Notes to Financial Statements............................................................................ 11
Supplementary Information
Combining Schedule of Statement of Net Assets .................................... 28
Combining Schedule of Statement of Revenues, Expenses and
Changesin Net Assets .......................................................................... 29
Schedule of Running Expenses - Comparison of Budget and Actual
Expensesby Department....................................................................... 30
Running Expense - Schedule of Supplemental
NetAssets Analysis............................................................................... 31
STATISTICAL SECTION (Unaudited):
Changes in Net Assets and Statement of Net Assets - Last Three
FiscalYears....................................................................................................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
TenFiscal Years.............................................................................................S-4
List of Largest customers - Last Three Fiscal Years.........................................S-6
Assessed and Estimated Actual Valuation of Taxable Property - Last
TenFiscal Years.............................................................................................S-6
Property Tax and Sewer Service charge Fees Levied and collected -
LastTen Fiscal Years.....................................................................................S-6
Summary of Debt Service - Type, Debt Service coverage, Debt Ratio -
LastTen Fiscal Years.....................................................................................S-7
Population Served - Last Ten Calendar Years ..................................................5-8
Full-time Equivalent Employees by Department - Last Ten Fiscal Years ..........5-9
Biosolids Produced and Plant Flow Comparisons - Last Ten Years................S--10
Miscellaneous Statistics ..................................................................................S--11
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Cen&a1Con, &a Costa SanitatyDistdct
5019 Imhoff Place,Martinez,CA 94553-4392 (925)228-9500 www.ceiitralsaii.org
November 14, 2005
Central Contra Costa Sanitary District Ratepayers and
The Honorable Board of Directors,
Martinez, California:
State law requires that every general-purpose local governmentublish within six
p
months of the close of each fiscal year a complete set of audited financial statements.
This report isublished to fulfill that requirement p q ment for the fiscal year ended June 30,
2005.
Management assumes full responsibility for the completeness and reliability of the
information contained in this report, based upon a comprehensive framework of internal
control that it has established for this purpose. The objective is to provide reasonable
a
assurance that the financial statements are free of any material misstatements.
Vavrinek, Trine, Day & Company, L.L.P., have issued an unqualified "clean"} opinion
inion
q �
on the Central Contra costa Sanitary District's financial statements for the year ended
June 30, 2005. 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)Y p
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.
The Comprehensive Annual Financial Report (CAFR) consists of threep arts as follows:
C INTRODUCTORY SECTION - consisting of this letter of transmittal, a listingof the
Board of Directors, a mission statement, an organization chart, a map of the service
area, and certificate of Achievement for the prior fiscal year report;
■ FINANCIAL SECTION - containing the independent auditors' report, MD&A basic
p ,
financial statements and other supplementary information; and a
STATISTICAL SECTION containing pertinent current and historical financial and
non-financial data.
Recycled Paper
6
PROFILE OF THE GOVERNMENT
History and Services Provided
The District was established in 1945 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
308,900 residents of Danville, Lafayette, Martinez, Moraga, Orinda, Pleasant Hill, San
Ramon, Walnut creek and some of the unincorporated communities within Central
Contra Costa County. The District also treats wastewater for 135,000 residents of the
Cities of concord and Clayton under a 1974 contract with the City of Concord.
The District is committed to protecting the public health and preserving the environment
while minimizing facility and operating costs. The District has approximately 1,400
miles of sewer pipeline, ranging in size from 5 inches to 120 inches in diameter, and 19
sewage-pumping stations in the District's sewage collection system. The District is the
sole provider of wastewater service within the District limits (see map of service area).
Residents make up the largest segment of the District's customer base representing
approximately 80% 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. M
In addition to its wastewater responsibility, the District also teamed with Mountain View
Sanitary District and other focal governments to build and operate the first permanent
Household Hazardous Waste (HHW) collection Facility in Contra Costa County. The
HHW Collection Facility is located adjacent to the District's wastewater treatment plant
and seeks to keep pollutants out of our effluent making this facility an important part of
our Pollution Prevention Program.
Organization, Accounting and Budgetary Controls
A 5-member Board of Directors9 overns the District. Board members are elected on a
non-partisan basis and serve a two-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 255 regular employees organized in 4#
three departments led by Department Directors responsible for their budgets and
expenses. The three departments are: Administrative, Engineering, and Operations.
The District uses an enterprise fund to account for the operations of the District, which is
run in a manner similar to private industry. The District currently has one enterprise
fund which is comprised of four internal sub-funds:
■ Running Expense - accounts for the general operations of the District.
Substantially all operating revenues and expenses are accounted for in this fund
(also referred to as Operations & Maintenance or O&M).
■ Sewer Construction - accounts for non-operating revenues that are to be used for
acquisition or construction of plant, property, and equipment (also referred to as the
Capital Fund).
■ Self-Insurance - accounts for interest earnings on cash balances in this sub-fund
and cash allocations from other funds, as well as costs of insurance premiums and
claims not covered by the District's insurance policies.
■ Debt Service Fund -- accounts for activity associated with the payment of the
District's long term bonds and loans.
Each year, the Board adopts the following six budgets: Staffing Pian, Capital
Improvement, Operations and Maintenance, Equipment, Self-insurance, and Debt-
Service. The Board Finance Committee reviews disbursements prior to each 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 is prepared and presented to the Board. District management is
accountable for variances and adhering to budget constraints.
ASSESSING THE DISTRICT'S ECONOMIC CONDITION
Local Economv andOutlook
California continues to struggle with its budget deficit. The District's Ad Valorem tax was
reduced by $5.7 million in 2004-05. This shift of property tax revenue from special
districts to the state will continue through 2005-06. Current legislation allows our
property tax allocation to return to its pre-2004-05 amount plus inflation in 2006-07. The
number of new connections has significantly increased in the last couple of years due to
the booming housing market. This additional revenue helped to offset the loss of
property tax. Interest rates continue to rise, which will provide increased interest
income generated from our reserves and we anticipate that interest rates could be at 4
to 4.5% by the fiscal year end 2005-06. Expenses may increase based on the impact of
Hurricane Katrina on the U.S. economy.
The District has an excellent reputation in all areas of public service, which include
finance, collection, treatment, training, safety, technology, capital projects, construction
and customer service. The Central Contra Costa Sanitary District has balanced
revenue sources, adequate reserves, and a tow debt obligation, which will enable the
District to meet the demands of future budgets. The District has the ability to increase
its Sewer Service Charge rates if needed to make up revenue shortfalls; the SSC rate
was not increased for the 2005-06 fiscal year
.Relevant Financial Policies
The District has several documented financial policies such as our investment policy,
and reserve policy. Our investment policy focuses first on liquidity and security, and
X
then on obtaining a reasonable rate of return. Our reserve policy sets minimum funding
requirements for the District's sub-funds. In addition to the annual external audit, an
outside independent DPA conducts two internal audits each year. Financial procedures `
are documented in the Accounting Procedures Manual that is updated annually.
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 forecast each year shortly before the budget
process begins. The main economic factors usually considered in long range
forecasting are: the impact of state legislation and mandates, regulatory compliance,
GASB requirements such as funding for post-retirement benefits, negotiated salary
increases and employee benefits including significant increases is retirement and health
care costs, energy costs and interpreting the energy market, and housing growth.
Major Initiatives
The District takes regulatory compliance seriously. Regulators currently focus on two
primary areas, sewer system overflows and mercury discharges to San Francisco Bay.
The focus of the District's capital investments has shifted significantly in the past several
years wherein more than two thirds of our capital program each year is targeted to
improvements in pumping stations and sewers to improve reliability, replace aging
infrastructure and reduce overflows. In regards to mercury limits, regulators are
developing the total maximum daily load (TIVIDL) that will be allowable for discharge to
the San Francisco Bay. The TMDL provides the calculation of the allowable mercury to
be discharged from each treatment plant, including our own, and may be significantly
more restrictive than in the past.
The District has won Platinum and Gold awards from the National Association of clean
Water Agencies (NACWA) for seven straight years in recognition of 100% compliance
with our National Pollutant Discharge Elimination System (NPDES) permit.
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 CAFR for the fiscal year ended June
30, 2004. This was the fifth 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.
1V
A Certificate of Achievement is valid for a period of one year only. We believe that our
current CAFR 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 Colette Curtis-Brown, Finance Administrator, and
Thea Vassallo, 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,
Deborah Ratcliff
Controller
CENTRAL CONTRA COSTA SANITARY DISTRICT
BOARD OF DIRECTORS
June 30, 2005
Barbara D. Hocken........................................,..President
Mario M. Menesini .............................President Pro-Tem
Parke L. Boneysteele..........................................Member
Gerald R. Lucey..................................................Member
James A. Ned�edly..............................................Member
vi
1
Central Contra Costa Sanitary District
OUR MISSION
to protect the public health and the
F environment by:
� • Collecting and treating wastewater
• Reccling high quality water
Prom' oting pollution prevention
� URJr,,1 W..�
�
be a high performance organization that
provides exceptional customer service
and full regulatory compliance at responm
Bible rates.
� OUR VALUES
We will achieve our goals by valuing:
• Each other
• Ethics and integrity
A healthy and safe environment
• Community relationships
o The meeting of commitments
9 All aspects of diversity
CENTRAL CONTRA COSTA SANITARY DISTRICT
Organization Chart = Composite
Electorate
Board Members
General Manager
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Secretary Director of Director of Director of Counsel
of the District Administration Engineering Operations for the District
Central Services Environmental Management
Services
Accounting& Plant
IT Capital Projects Operations
PurchasingPlant
Maintenance
Human
Resources Pumping Stations
Safety&
Field Opera
Risk Management tions
Public Field Operations
Information Support
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ache '242
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Clayton
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Orin Creek
oaf ett
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Wastewater collection and treatment and HHW
collection for 308,428 people
Wastewater treatment and HHW collection for 135,780
residents in Concord and Clayton by contract
I • HHW collection service only
• CCCSD's Headquarters Office Building, treatment plant,
and HHW Collection Facility located in Martinez
CCCSD's Collection System Operations Department
1 (sewer maintenance)located in Walnut Creek
.X
3
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Certificate of
Achievement
for Excellence t
in Financial �
Reporting
Presented to
Central Contra Costa �
Sanitary District, California �
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2004
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports(CAFRs)achieve the highest
standards in government accounting
and financial reporting.
� � S President
Executive Director
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Vavrinek, Trine, Day& Co. LLP
VALUEDIFFERENCE
Certified Public Accountants& Consultants
INDEPENDENT AUDITORS' REPORT
Board of Directors
Central Contra Costa Sanitary District
Martinez,California
We have audited the accompanying basic financial statements of the Central Contra Costa Sanitary District as of and
for the year ended June 30,2005,as listed in the table of contents. These basic financial statements are the
responsibility of the District's management. Our responsibility is to express an opinion on these financial statements
based on our audit.
5
} we conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the State Controller's Audit Requirements for California Special Districts. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining,on a test basis,evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall financial statement presentation. we
believe that our audit provides a reasonable basis for our opinion.
I 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 30,2005,and the results of its operations and its cash flows
for the year then ended in conformity with accounting principles generally accepted in the United States of America,
as well as accounting systems prescribed by the State Controller's office for special districts.
Our audit was performed for the purpose of forming an opinion on the financial statements taken as a whole. The
Management's Discussion and Analysis is not a required part of the basic financial statements but is supplemental
information required by the Government Accounting Standards Board. The financial information listed as
supplementary information in the table of contents is presented for purposes of additional analysis and is not a
required part of the basic financial statements. Such information has been subjected to the auditing procedures
applied in the audit of the basic financial statements and,in our opinion,is fairly stated in all material respect in
relation to the basic financial statements taken as a whole.
CtifrJAS Ot •
IF
Pleasanton California 7 dopo
August 25,2005
1
5000 Hopyard Road,Suite 335 Pleasanton,CA 94588-3351 Tel,925.734.6600 Fax:925.734.6611 www.vtdcpa corn
FRESNO • LAGUNA HILLS • PALO ALTO PLEASANTON a RANCHO CUCAMONGA
CENTRAL CONTRA COSTA SANITARY DISTRICT
MANAGEMENT'S DISCUSSION AND ANALYSIS
i
This section of the District's annual financial report presents an analysis of the District's
financial performance during the fiscal year ended June 30 2005. This information is
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presented in conjunction with the audited financial statements, which follow this report.
FINANCIAL HIGHLIGHTS r
The District's 2004-05 financial highlights are listed below. These results are discussed
in more detail later in the report. r
• The District's total endingnet assets increased b $20.8 million or 3.95% in 2004-
Y �
05 when compared to fiscal year 2003-04
• Total revenues were $55.8 million in 2004-05 compared to $55.0 million in 2003Jr
-
04
• Total 2004-05 expenses were $61.3 million compared to $58.0 million in 2003-04
• Capital Contributions increased from $11.0 million to $18.3 million
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.
REQUIRED FINANCIAL STATEMENTS
The Financial Statements of the District report information utilizing methods similar to
those used by private sector companies. These statements offer short and long-term J
financial information about its activities.
• Statement of net assets — reports the District's current financial resources (short- L
term spendable resources) with capital assets and long-term obligations
* Statement of revenues, expenses and changes in net assets — reports the
District's operating and non-operating revenues by major source along with
operating and non-operating expenses and capital contributions
• Statement of cash flows --- reports the District's cash flows from operating
activities, investing, capital and non-capita! activities
2
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STATEMENT OF NET ASSETS
The following table shows the condensed statement of net assets of the Central Contra
Costa Sanitary District for the past two years:
Condensed Statement of Net Assets Fiscal Year Fiscal Year Dollar Percent
0
2004-2005 2003-2004 Chane Change
Current Assets $ 82,983,914 $ 78,781,727 $ 4,202,187 5.33%
Capital Assets 503,437,249 4899215,617 1492219632 2.91%
N other Non-current Assets6,123,083 5,347,545 775,538 14.500
Total Assets 592,544v246 573,3441889 19,199,357 3.35%
Long-Term Debt 321187,619 36,314,654 411127,035 -11.36%
Other Liabilities 13,682,482 11,1 06,601 29575,881 23.19%
Total Liabilities 45,870,101 47,421,255 1,551,154 -3.27%
Invested in Capital Assets,
Net of Related Debt 469,375,715 4539251,761 16,123,954 3.56%
Restricted -Debt Service 31118,704 31035,944 82 76D -2.73%
Unrestricted 74,179,726 69,635,929 41543,797 6.53%
Total Net Assets $ 546,6749145 $ 525,923,534 F$ 20,750,5111 3.95%
The total net assets of the District increased to $546.7 million, a $20.8 million increase
from 2003-2004. The increase in net assets is the result of net income of $4.5 million
and capital contributions of$16.2 million (shown in the next table).
}
By far the largest portion of the District's net assets (86 percent) reflects its investment in
capital assets (e.g. land, buildings, machinery, equipment, and sewer line infrastructure),
less any related debt used to acquire those assets that is still outstanding. The District
g
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 resources 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$3.1 million restricted for
debt service. The remaining balance of unrestricted net assets $74 million may be
used to meet the District's ongoing obligations to its ratepayers and creditors.
This space left intentionally blank
3
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REVIEW OF REVENUES EXPENSES AND CHANGES IN NET ASSETS
The following table shows the condensed statement of revenues, expenses, and
changes in net assets for the Central Contra Costa Sanitary District:
Condensed Statement of Revenues, Expenses, and changes in Net Assets
Fiscal Year Fiscal Year Dollar Percent
2004-2005 2003-2004 Chane Change
Sewer Service Charges SSC $ 38,8859806 $ 40,5459501 $ 116599695 -4.09%
Other Service Charges and misc. 1,2851738 19209,071 76,667 6.34%
ata!o eratin Revenue 40,171,544 41,754 572 1,583,028 -3.79%
Customer Contributions SSC 1497169585 10,1879725 4,5289860 44.45%
Propeqy Tax 411010,380 8 919 327 49908,947 -55.04%
Permit& Inspection Fees 2,072,001 299369298 864,297 -29.43%
All other 4,822,527 2,299,092 21523,435 109.76%
otal Non-o eratin Revenues 25,521,493 24,342,442 19279,051 5.25%
Total Revenues 65,793,037 66,097 014 3039977 -0.46%
Total Labor and Benefits 27,989,401 289095,636 106,235 -0.38%
Chemicals& Utilities 59226,288 4,372,621 853,667 19.52%
Repairs and Maintenance 29900,950 31073,820 1729870 -5.62%
Professional, Legal and Outside Services 2,350,387 21282j408 679979 2.98%
Materials&Supplies 195759462 194359449 140,013 9.75%
Hauling and Disposal 815,226 7979929 17,297 2.17%
Self-Insurance Expense 191899693 689,702 4999991 72.49%
All other 1,437,272 1,042,809 394,463 37.83%
Depreciation Expense 16,0419555 159186,594 854,961 5.63%
Total Operating Ex nses 59p5269234 5699769968 2,549 266 4.47%
Non-Operating Expense-Interest Expense 19775,857 19101,115 574,742 61.28%
Total Expenses 619302,091 58 078,083 3,2249008 5.55%
Income(Loss) Before Capital
Contributions 494909946 5,0189931 3952 7,985 -44.00%
Contributed Sewer Lines 59530,848 4,4101808 1,120,040 25.39% F
Ca ital Contributions-Connection Fees 10,7281717 6j5851984 421429733 62.90%
Total Capital contributions 169259,565 10,996,792 5,262,773 47.86%
Change in Net Assets 2097509511 19,015,723 197349788 9.12°
Beginning Net Assets 525,923,634 506,907,911 19,015,723 3.75%
�Endinq Net Assets $ 546,674,145 1$ 525,923,634 $ 20,750 511 3.95°/0
In 2004-05, operating revenues decreased by $1.6 million or--3.79%; non-operating
revenue increased by$1.3 million or 5.25%. This decrease is mainly due to the State a
budget shift of$1.3 billion in tax revenue from local government; the District's share of
this revenue shift was $5.7 million in 2004-05. This loss was offset by increased sewer
service charge revenue due to an $8 per year rate increase and increased permit and
inspection fee activity.
4
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In 2004-05, operating expenses increased by $2.5 million or 4.47%. This is mainly due
to increases in chemical & utility costs, self-insurance expense, depreciation expense,
and debt service interest expense. Total labor and benefits, the District's largest
expenses, were almost flat when comparing the two fiscal years. This was mainly due to
a one-time payment in 2003-04 of$1.6 million for enhanced retiree retirement benefits
per the Paulsen litigation settlement. Salaries and benefits increased by approximately
5% when this payment is excluded.
Other operating Expenses, which is made up of debt interest expense, increased by
$0.7 million. In 2003-04, $0.7 million in debt interest was capitalized. All debt-related
interest is now in an internal debt service sub-fund and is not capitalized.
Total 2004-05 income before capital contributions was $4.5 million compared to $8.0
million in 2003-04 for a decrease of$3.5 million or—44.00%. This is mainly due to
receiving less property tax.
Capital contributions in 2004-05 were $16.3 million compared to $11.0 million in 2003-
2004, resulting in an increase of$5.3 million or 47.86%. This was mainly due to
increased connection fees and contributed sewer lines. The total change in net assets
increased from $19.0 million in 2003-04 to $20.8 million in 2004-05.
CAPITAL ASSETS
As of June 30, 2005, the District's investment in capital assets totaled $503.4 million,
which is an increase of$'14.2 million or 2.91% over the capital asset balance of$489.2
} million at June 30 2004. Capital assets includes all of the District's major infrastructure
p �
including wastewater treatment facilities, sewers, land, buildings, pumping stations,
vehicles, and furniture and equipment exceeding our capitalization limit of$1,000, net of
depreciation. A comparison of the District's capital assets over the past two fiscal years
is presented below:
d
d
Fiscal Year Fiscal Year Dollar Percent
Capital Assets 2004-2005 2003-2004 Chane Change
Land $ 16,433 269 $ 16,780 269 $ (347,000) -2.07%
Sewage Collection System 196,3081873 185,746,757 10,562,116 5.69°Io
Contributed Sewer Lines 137,585 247 1320443,827 5,141,420 3.88%
outfall Sewers 81518,443 8,5181443 - 0.00%
Sewage Treatment Plan 245,851 213 237,531 642 81319,571 3.50%
Recycled water Infrastructure 99392,794 818869294 506,500 5.70%
Pumping Stations 40,231 554 3%6411580 589 974 1.49%
Buildings 13,264,789 13,232,054 321735 0.25%
Furniture& Equipment 14,643,000 13,788,481 854,519 6.20%
Motor Vehicles 41150,425 31890,609 2599816 6.68%
Construction In Progress 22,438,361 19,5541582 218831779 14.75%
Subtotal 708,817,968 68090149638 289803,430 4.24%
Less Accumulated Depreciation 2051 380,719 190 798,921 14,581,798 7.64%
Total Ca 'tal Assets net of depreciationy depreciation $ 503,437,249 $ 489,215,617 $ 14,221,632 2.91%,
5
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The major reasons for the increase of$14.2 million in capital assets, net of depreciation,
are:
• Sewer pipe ongoing renovations and contributed sewer lines ($15.7 million)
• Treatment plant equipment, electrical replacements and upgrades, and
infrastructure renovations ($8.3 million)
• An increase in Construction In Progress due to more collection system project
work ($2.9 million .
)
• Purchases of furniture, equipment and vehicles ($1.1 million)
■ These increases are offset b an increase in accumulated depreciation due to
Y p our
increasing capital asset value and its associated depreciation expense.
(-$14.5 million)
DEBT ADMINISTRATION
The District has the following outstanding debt as of June 30, 2005:
1998 Revenue Refunding Bonds $ 18,339,784
2002 Revenue Bonds 16,000,000
Water Reclamation Loan Contract 2'0419885
$ 349381,649
See Note #8 in the audited financial statements.
ECONOMIC AND OTHER FACTORS
Changes in the state budget have an impact on the District. In the 2004-05 fiscal P a year,
the California budget deficit caused a transfer of$5.7 million in property tax revenue from
the District to the state. Regulatory compliance is also becoming more stringent, causing
. g 9
the Distract to spend more to comply with rigorous testing and compliance requirements.
In addition to making efforts to reduce spending, the District has the ability to raise the
Sewer Service Charge to meet our long-term commitments. -
FINANCIAL CONTACT
The financial report is designed to provide our customers and creditors with a general
overview of the District's finances and to demonstrate the District's accountability for the
money it receives. If you have questions about this report or need additional financial
information, contact: Controller, Central Contra costa Sanitary District, 5019 Imhoff F,
Place, Martinez, CA 94553.
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i
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6
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENT OF NET ASSETS
AS OF JUNE 309 2005
--y9Y9�Y-wltf�-•Yni==• WII" 91RT�IIIr91Fl111 Ws
ASSETS
CURRENT ASSETS
Cash and investments available for operations $ 69,164,122
Accounts receivable 119010,772
Interest receivable 70,594
Parts and supplies 1,496,779
Prepaid expenses 122412647
TOTAL CURRENT ASSETS 822983,914
NON CURRENT ASSETS
Restricted cash and investments 396139196
Land,property,plant and equipment,net of accumulated depreciation 480,9989888
Construction in progress 229438,361
Contractual assessment district receivable 221899770
Revenue bond issuance costs,net of amortization 320,117
TOTAL NON CURRENT ASSETS 509,5609332
TOTAL ASSETS 592,5443246
LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued expenses 493142845
Interest payable 767,480
Current portion of refunding revenue bonds 290609000
Current portion of water reclamation loan contract 1342030
Liability for uninsured claims 8819500
Accrued compensated absences 428529902
Refundable deposits 6612725
TOTAL CURRENT LIABILITIES 1326829482
NONCURRENT LIABILITIES
Revenue bonds,net of current portion 30,2799764
Water reclamation loan contract,net of current portion 129079855
TOTAL NON CURRENT LIABILITIES 3291879619
TOTAL LIABILITIES 459870,101
NET ASSETS:
Invested in capital assets,net of related debt 4699375,715
Restricted for debt service 39118,704
Unrestricted 7491799726
TOTAL NET ASSETS $ 5462674,145
The accompanying notes are an integral part of these financial statements.
7
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN
NET ASSETS
FOR THE YEAR ENDED JUNE 309 2005
OPERATING REVENUE
Sewer service charges(SSC) $ 321282,806
Service charges-City of Concord 626039000
Other service charges 6729887
Miscellaneous charges 612,851
Total operating revenue 4091712544
OPERATING EXPENSES
Sewage collection and pumping stations 895333,883
Sewage treatment 18,767,128
Engineering 52311,981
Administrative and general 10,871,687
Depreciation 16,0419555
Total operating expenses 5975262234
OPERATING LOSS (1%3549690)
NON-OPERATING REVENUES(EXPENSES):
Taxes 4,010,3 80
City of Concord cash contributions to capital costs 296229731
Customer cash contributions to capital cost[SSC} 129093,854
Permit and inspection fees 29072,001
Interest earnings 1,5199192
Pump zone fees 291939619
Interest expense (19775,857)
Other income(expense) 111099716
Total non-operating revenues(expenses) 2328452636
Income before contributions and transfers 494909946
Contributed sewer lines 595309848
Capital contributions-connection fees 10,7289717
CHANGE IN NET ASSETS 2097502511
Total Net Assets-Beginning 52599239634
Total Net Assets-Ending $ 54696749145
The accompanying notes are an integral part of these financial statements.
8
1
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENT OF CASH FLOWS (CONTINUED ON PAGE 10)
FOR THE YEAR ENDED JUNE 309 2005
e
C Cash Flows From operating Activities:
Receipts from customers and users $ 38,6091047
7 Payments to suppliers (13,403,370)
Payments to employees (30,237,502)
Other income 5,480,825
Net cash provided by operating activities 449,040
Cash Flows From Noncapital Financing Activities:
s
Receipt of taxes 4,010,3 80
Cash Flows From Capital And Related Financing Activities:
Proceeds from sales of capital assets 249,490
Connection fees and other capital contributions 254453302
Acquisition and construction of capital assets (24)883,803}
Principal paid on bonds
(129335005)
v� Interest paid on bonds (19529,288
Net cash used by capital
and related financing activities (2,651,304)
}
Cash Flows From Investing Activities:
e
Interest received 17473,375
Net increase in cash and cash equivalents 3,281,451
Cash and cash equivalents,July 1 691495,867
Cash and cash equivalents,June 30 $ 72,7771318
End of Period:
Unrestricted cash and equivalents $ 69,164,122
Restricted cash and equivalents 3,6139196
$ 72,7779318
The accompanying notes are an integral part of these financial statements.
9
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CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENT OF CASH FLOWS (CONTINUED FROM PACE 9)
FOR THE YEAR ENDED JUNE 309 2005
Reconciliation of operating income to net cash
P g
provided(used)by operating activities:
Operating loss $ (199354s690)
Adjustment to reconcile operating
loss to net cash provided(used)
by operating activities:
Depreciation expense 16,0419555
Other income 5,4809825
(Increase)decrease in
Accounts receivable (1,534,496)
Parts and supplies (63,990)
Prepaid expenses (82,654)
Increase(decrease)in:
Accounts payable and accrued expenses (5379455)
Deposits (28,001)
Liability for uninsured claims 4449140
Accrued compensated absences 83,766
Net cash provided by operating activities $ 449,000
Noncash investing,capital,and financing
activities:
Contributions of capital assets $ 5,5302848
The accompanying notes are an integral part of these financial statements.
10
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2005
NOTE#1---SUMMARY OF SIGNIFICANT A CCO UNTING POLICIES
Reporting Entity
The Central Contra Costa Sanitary District, a special district and a public entity established under the Sanitary
District Act of 1923,provides sever 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 general-purpose
financial statements present Central Contra Costa Sanitary District and its component unit. The component unit
discussed in the following paragraph is included in the District's reporting entity because of the significance of its
operational or financial relationship with the District.
Blended Component Unit-The Central Contra Costa Sanitary District Facilities Financing Authority,was
organized solely for the purpose of providing financial assistance to the District 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
Corporation has no members and the Board of Directors of the Corporation consist 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
Corporation.
Basis of Accounting
The District's financial statements are prepared on the accrual basis in accordance with accounting principles
generally accepted in the United States of America as promulgated by the Governmental Accounting Standards
Board(GASB). In addition,the District applies all applicable Financial Accounting Standards Board(FASB)
pronouncements issued on or before November 30, 1989,unless those pronouncements conflict with or contradict
GASB pronouncements.
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
k
charges;or where the governing body has decided that periodic determination of revenues earned, expenses
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 all liabilities of the enterprise are recorded on its statement of net assets,all revenues are
recognized when earned and all expenses,including depreciation, are recognized when incurred.
11
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 309 2005
NOTE W—SUM1Ir AR Y OF SIGNIFICANT A CCO UNTING POLICIES(CONTINUED)
Basis of Accounting(continued)
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.
When both restricted and unrestricted resources are available for use, it is the District's policy to use restricted
resources first,then unrestricted resources as they are needed.
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.
k
That portion of the District's net assets which is allocable to each of these sub-funds has been shown separately in
the accompanying financial statements.
The District's Board of Directors adopts annual budgets on a basis consistent with accounting principals generally
accepted in the United States of America.
12
f
CENTRAL CONTRA COSTA SANITARY DIS'T'RICT
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 309 2005
NOTE#1 ---SUM11 AR Y OF SIGNIFICANT A CCO UNTING POLICIES(CONTINUED)
Parts and Supplies
Parts and supplies are valued at average cost and are used primarily for internal purposes.
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$1,000.
i
Expenditures,which materially increase the value or life of a capital asset 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 as follows:
Years
i
.r
Sewage Collection Facilities 75
Sewage Treatment Plant and Pumping Plants 40
Buildings 50
Furniture and Equipment 7-15
Motor Vehicles 6-15
Defined Contribution Retirement Plans
District employees may defer a portion of their compensation under a District sponsored Deferred Compensation
Plan created in accordance with Internal Revenue Code Section 457. Under this Plan,participants are not taxed
on the deferred portion of their compensation until it is distributed to them; distributions may be made only at
termination,retirement,death, or in an emergency as defined by the Plan. The District does not make
contributions to the Plan.
On August 20, 1997,the provisions of the Internal Revenue Code covering section 457 were amended to require
existing plans to establish trusts for assets of plans so that they would not be subject to the right of general
creditors. The District amended its plan during the fiscal year ended June 30, 1999 to meet this requirement.
Consequently,at June 30,2005,the plans assets are held in trust for the exclusive benefit of the participants and
are not included in the District's financial statements.
The District also contributes to a money purchase plan created in accordance with Internal Revenue Code section
401 (a). Contributions to the plan are made in accordance with a memorandum of understanding stating that in
13
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a
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 309 2005
E
NOTE#1 SUM111ARy OF SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
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 Mn Social Security. The assets are held in trust and are not recorded on the books of the
District. The District contributed$1,272,813 to the plan during the year ended June 30, 2005.
Property Taxes L
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. L
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 ed an additional 1-'/z percent per month. Unsecured property tax is due on
P are charged
July 1 and becomes delinquent on August 31. The penalty percentage rates are the same as secured property tax.
Compensated Absences
The liability for vested vacation 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.
Statement of Cash Flows
For purposes of the statement of cash flows,all highly liquid investments,including restricted assets,are
considered to be cash equivalents.
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.
14
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 309 2005
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f NOTE#1-SUMMA Y OF SIGNIFICANT A CCO UNTI1 V NG POLICIES(CONTINUED)
Changes in Accounting Principles
In March 2003,the Governmental Accounting Standards Board(GASB)issued GASBS No.40,Deposit and
Investment Risk Disclosures an amendment of GASB Statement No. 3. This Statement addressed common deposit
and investment risks related to credit risk,concentration of credit risk,interest rate risk,and foreign current risk.
� y
As an element of interest rate risk,this Statement requires certain disclosures of investments that have fair values
that are highly sensitive to changes in interest rates. Deposit and investment policies related to the risks identified
in the Statement also should be disclosed. As such,the District has made the applicable required disclosures.
New Accounting Pronouncements
In November 2003, GASB issued GASBS No.42,Accounting and Financial Reporting for Impairment of Capital
Assets and for Insurance Recoveries. This Statement establishes guidance for accounting and reporting for
impairment of capital assets and for insurance recoveries,whether associated with an impaired capital asset or not.
This Statement is effective for periods beginning after December 31,2004, or during the 2005-06 fiscalear. The
District d y
does not believe this statement will have a significant impact on the financial statements.
In Jul 2004,GASB issued GASBS No.45 Accounting and Financial '
� Y g Reporting by Employers for
Postemployment Benefits Other Than Pensions. This Statement will require local governmental employers who
provide other postemployment benefits(OPEB)as part of the total compensation offered to employees to
recognize the expense and related liabilities(assets)in the government-wide financial statements of net assets and
activities. This Statement establishes standards for the measurement,recognition,and display of GPEB
expense/expenditures and related liabilities(assets),note disclosures,and,if applicable,required supplementary
information(RSI)in the financial reports of State and local governmental employers.
Current financial reporting practices for GPEB generally are based on pay-as-you-go financing approaches. They
fail to measure or recognize the cost of GPEB during the periods when employees render the services or to
provide relevant information about GPEB obligations and the extent to which progress is being made in funding
those obligations.
This Statement generally provides for prospective implementation-that is,that employers set the beginning net
GPEB obligation at zero as of the beginning of the initial year. The District will be required to implement the
provisions of this Statement for the fiscal year ended June 30,2007. The District is in the process of determining
the impact the implementation of this Statement will have on the government-wide statement of net assets and
activities.
In December 2004, GASB issued GASBS No.46,Net Assets Restricted by Enabling Legislation. This Statement
clarifies that a legally enforceable enabling legislation restriction is one that a party external to a government
such as citizens,public interest groups, or the judiciary-can compel a government to honor.The Statement states
that the legal enforceability of an enabling legislation restriction should be reevaluated if any of the resources
'. raised by the enabling legislation are used for a purpose not specified by the enabling legislation or if a
government has other cause for reconsideration.Although the determination that a particular restriction is not
legally enforceable may cause a government to review the enforceability of other restrictions, it should not
necessarily lead a government to the same conclusion for all enabling legislation restrictions.
15
CENTRAL CONTRA COSTA SANITARY DISTRICT
DOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 309 2005
NOTE#1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(CONTINUED)
This Statement also specifies the accounting and financial reporting requirements if new enabling legislation
replaces existing enabling legislation or if legal enforceability is reevaluated. Finally,this Statement requires
governments to disclose the portion of total net assets that is restricted by enabling legislation. The requirements
of this Statement are effective for financial statements for periods beginning atter June 15,2005. The District
does not believe this statement will have a significant impact on the financial statements.
NOTE#2--CASH AND CASH EQUI VALENTS
Summary of Investments
Investments as of June 30, 2005, are classified in the accompanying financial statements as follows:
• Cash and investments available for operations $69,1649 122
Restricted cash and investments 39613,196
Total Deposits and Investments $ 7297772318
General Authorizations
Limitations as the relate to interest rate risk,credit risk,and concentration of credit risk are indicated in the
y
schedules below:
Maximum Maximum Maximum
Authorized Remaining Percentage Investment
Investment Type Maturity of Portfolio In One Issuer.
U.S. Treasury Obligations 1 year None None
Banker's Acceptance 1 year(2) 40% 15%
Commercial Paper(1) 1 year(2) 25% 15%
Collateralized Certificates of Deposit 1 year(2) 30% 15%
County Pooled Investment Funds NIA None None
Local Agency Investment Fund(LAIF) NIA None None
(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
16
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 309 2005
M�W�Yt. w�►MMiw}K HK
NOTE#2--CASH AND CASH EQUIVALENTS(CONTINUED)
Authorized Under Debt Agreements
} Maximum Maximum Maximum
Authorized Remaining Percentage Investment
F�
Investment Type Maturity of Portfolio In One Issuer
Federal Securities None None None
Direct or indirect obligations of the following agencies of the USA: None None None
Export-Import Bank None None None
Farmers Home Administration None None None
Participation Certificates issued by the General Services Administration None None None
Mortgage-backed bonds or pass-through obligations issued
by GNMA,FNMA,FHLMC, or FHA None None None
Project notes issued by the US Department of HUD None None None
Public housing notes and bonds guaranteed by the USA None None None
Certificates of Deposit(fully insured by FDIC) None None None
Commercial Paper-US Corporations(1) 180 Days None None
Bankers acceptances (1) 270 Days None None
State Investment Pool(LAIF) None None None
Money Market Funds(1) None None None
(1) Rated highest short-term rating by S&P and Moody's
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. The District manages its 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.
17
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2005
NOTE#2--CASH AND CASH EQUIVALENTS(CONTINUED)
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 investment by maturity:
Fair Maturity
Investment Type Value Date
U.S. Treasuries $ 33,704,000 September to December 2005
Commercial Paper 12,0009000 July to October 2005
Money Market Mutual Funds 31613,196 8 days
Contra Costa County Treasurer Investment Pool 7609122 58.75 days
State Investment Pool(LAEF) 22,700,000 165 days
Total $ 7217773318
Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment
This is measured by the assignment of a rating by a nationally recognized statistical rating organization.
Presented below is the minimum rating required by the California Government Code,the Districts'investment
policy, or debt agreements, and the actual rating as of the year-end for each investment type.
Minimum Not Required
Fair Legal To Be Rating as-of Year End
Investment Type Value Rating Rated AAAm A Unrated
U.S.Treasuries $ 33,744,000 NIA $33,704,000 $ - $ - $ -
Commercial Paper 12,000,000 A - - 121004,040 - ,
Money Market Mutual Funds 31613,196 A - 396139196 - -
State Investment Pool 22,700,000 NIA - - - 22,7002000
Total $ 72,017,196 $33,704,000 $3,613,196 $12,400,004 $22,700,000
Concentration of Credit Risk
The investment policy of the District contains limitations on the amount that can be invested in any one issuer
beyond the amount stipulated by the California Government code(see General Authorizations above).
Investments in any one issuer(other than United States Treasuries,mutual funds,and external investment pools)
that represent five percent(5%)or more of the total investments are as follows:
Reported
Investment Type Issuer Amount
Commercial Paper Prudential $ 510009000
Commercial Paper Citicorp 59000,000
18
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 309 2005
NOTE#2--CASH AND CASH EQV7V LENTS(CONTINUED)
J
Investment 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 accounting financial
statements 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 the 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.
-T Investment in the State Investment Pool-The District is a voluntary participant in the Local Agency
Investment Fund(LAIF)that is regulated by California government code Section 16429 under the oversight of the
Treasurer of the State of California. The fair value of the District's investment in the pool is reported in the
accompanying financial statement 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 is recorded on the amortized cost
basis.
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
requirement 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 in the District's policy. The County Treasurer's Office will execute the
District's investments through such brokers,dealers,and financial institutions as are approved by the County
Treasurer,and through the State Treasurers Office for investment in the Local Agency Investment Fund.
NOTE#3--ACCOUNTS RECEIVABLE
At June 30,2005, accounts receivable are comprised of the following:
City of Concord(see Note S) $ 99935,160
All other 130759612
Total accounts receivable $ 11,0109772
19
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 309 2005
a
NOTE#4—PROPERTY, PLANT AND EQUIPMENT,AND CONSTRUCTION IN PROGRESS
Property,punt and equipment, and construction in progress are summarized below for the year ended June 30,
2005:
Balance
Beginning Transfer Balance
of Year Additions Retirements from CiP End of Year ,
At Cost
Capital assets not being depreciated
Land $ 16,780,269 $ - $ (3479000) $ - $ 16,4339269
Construction in progress 19,554,582 25,1479841 - (222264,062} 222438,361
Total nondepreciated assets 36,334,851 2591479841 (3479004 (2292649062) 3898712630
Capital assets being depreciated
Sewage collection system 1859746,757 - (7479000) 1193099116 1969308,873
Contributed sewer lines 132,4439827 5,1419420 - - 1379585,247
Outfall sewers 8,518,443 - - - 8,5189443
Sewage treatment plant 2373,5319642 - (5457000) 898649571 245,851,213
Recycled water infrastructure 898867294 - - 5069500 99392,794
Pumping stations 392641,580 - - 5899974 4092312554
Buildings 139232,054 - - 329735 1322649789
Furniture and equipment 132788,481 - (106,647) 9612166 149643,000
Motor vehicles 33,8909649 3289903 69,087 - 4,1509425
Total depreciated assets 643,6799687 594702323 (194672734) 22,264,462 6699946,338
Less accumulated
depreciation:
Sewage stem and lines 60 908 544 495832065 747,000 - 64,744,569
g system ( }
Sewage treatment plant 104,228,469 89060,437 (545,000) - 111,743,906
Recycled water infrastructure 1,864,381 3982109 - - 22262,490
Pumping stations 8,097,180 1,5089071 - - 9,6052251
Buildings 49267,749 3049969 - - 495729718
Furniture and equipment 92036,972 810,667 (98,670) - 99748,969
Motor vehicles 223959666 3769237 (697_4 - 2,7029816
Total accumulated
depreciation 190,798,921 169041,555 (1,4599757) - 20593809719
Total capital assets being
depreciated,net 452,8809766 (103571923 (79977) 22,2642062 464,5659619
Capital assets,net $ 489,215,617 $ 14,576,609 $ 3549977 $ - $ 54394377249
20
CENTRAL CONTRA COSTA SANITARY DIS'T'RICT
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 309 2005
s
w
NOTE#5--CONTRACTUAL ASSESSMENT DISTRICTS:
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 an amount equal to their share of the
construction cost and connection fee. The assessments plus interest are generally payable over 10 years. At year-
end,the receivable balance was$2,189,774.
NOTE#b--LONG-TERM DEBT
Revenue Bonds-2002
In May 2002,the District issued$16,565,000 of Revenue Installment Certificates for Wastewater Facilities
Improvements,with interest rates ranging from 4.0%to 5.0%. The bonds are secured by a pledge of revenue.
Principal payments are due annually on September 1,commencing in fiscal year 2005,and interest is payable
semi-annually on September 1 and March 1 of each year.
Refunding Revenue Bonds--1998
A
} In September 1998,the District issued$25,335,000 of Refunding Revenue Bonds with interest rates ranging from
3.5%and 4.7%. The Bonds are secured by a pledge of revenue. Principal payments are due annually on
September 1,and interest is payable semiannually on September 1 and March 1.
The District issued the 1998 Refunding Revenue Bonds to advance refund the 1994 Revenue Installment
Certificates,which had interest rates of 5.25 to 6.25%. The net proceeds were deposited in an escrow fund to
service and redeem the 1994 debt. As a result,the advance refunding met the requirements of an in-substance
debt defeasance,and the outstanding balance of the 1994 debt was removed from the District's accounts.
4
The excess of the amount required to be deposited into the escrow fund over the net carrying amount of the 1994
debt resulted in a deferred loss. The deferred loss is reported as reduction of the new debt and is being amortized
over the 15-year term of the new debt.
21
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2005
NOTE#6—LONG-TERM DEBT(CON77NUED)
Refunding Revenue Bonds—1998-Continued
The 2042 and 1998 Revenue Bonds debt service requirements are as follows:
2002 1998
Fiscal Year Debt Service Debt Service
Ending June 30, Requirement Requirement Total
2006 $ 122839461 $ 2,220,674 $ 325049135
2007 192809051 27218,570 394989631
2008 112709961 292172310 394882271
2009 192719461 292169178 394879239
2010 1,2652261 2,2162478 3p4819739
2011-2015 6,3282494 1190972013 17,4259507
2016-2020 6,3379333 - 693379333
,3 7,333
2021-2024 590809125 - 5 080i 125 �+
7
Total 2491169757 2221869223 469302,980
Amount representing interest (8,116,757) (4,241,223} (129357s980)
Principal outstanding 1690009000 179945,000 33,9451000
Less: Unamortized deferred loss on refunding at year end - (1,605,236) (1,605,236) "
169004,004 16,3399764 3293392764
Less: Current portion of revenue bonds (575,000) (1,485,040) (2906020002,
Long-term portion of revenue bonds $ 1594259000 $ 142854,764 $ 3092799764
Nater Reclamation Loan Contract
The District has entered uito a contract with the State of California State Water Resources Control Board(the
Board)where the Board advanced to the District$2,916,872 for design and construction costs for projects related
to recycled water treatment programs.
y
22
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0
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 309 2005
NOTE#6 LNC-TERM DEBT(COATfNUED)
Water Reclamation Loan Contract-Continued
The District must repay advances from the Board over a 20-year period beginning March 31, 1999,with an
interest rate of 2.6%. Debt service requirements are as follows:
Debt
Service
Years Requirements
2006 $ 1871119
2007 187,119
2008 1879119
2009 1872119
2010 1879119
2011-2015 935,596
2016-2019 5619359
Total 2,4321550
Amount representing interest (3909665)
2,041,885
Less: Current portion of Water Reclamation Loan Contract (134,030)
Long term portion of Water Reclamation Loan Contract $ 199072855
Local Improvement District Bonds
Within the District's boundaries,there exist several Improvement Districts,which were formed for the sole
purpose of financing sewer system improvements. The District has no oversight responsibility for these Districts
and is not liable for repayment of any bonds issued to finance these local district improvements. Contra Costa
County acts as the agent for the property owners in these districts in collecting assessments,forwarding
collections to bondholders,and initiating foreclosure procedures,if appropriate. The outstanding balance on these
bonds was$200,000 at June 30,2005.
23
CENTRAL CONTRA COSTA SANITARY DISTRICT
DOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 309 2005
NOTE#7--RISK MANAGEMENT
Insurance Coverage
The District's insurance coverage is as follows:
Self Insured
Deductible Per
T of Insurance Coverage Insurer Limits Occurrence
All-Risk Property
Fire California Sanitation Risk Management
Authority(CSRMA) $39496009860 $ 250,000
Boiler&Machinery
(Shared Limits per Occurrence) CSRMA $ 100,000,000 $ 2509000
Liability
Errors&Omissions Insurance Company of the State of
Pennsylvania(AIG) $ 1090009000 $ 5009004
ErnPOym ent Practices LiabilityAIG $ 1090009000 $ 1,000,000
Employment Practices Liability Lloyds of London $ 500,000 $ 500,000
General Liability AIG $ 10,000,000 $ 5009000
Auto Liability AIG $ 102000=000 $ 5009000
Pollution(General Aggregate)
General Liability American International Specialty Lines
Insurance Co. $ 59000,000 $ 5,000
Pollution Liability American International Specialty Lines
Insurance Co. $ 1090003000 $ 502000
Pollution(Legal Liability Aggregate) American International Specialty Lines
Insurance Co. $ 10,000,000 $ 502000
Workers' Compensation CSRMA $ 2597509000 $ -
Liability for Uninsured Claims
The Governmental Accounting Standards Board(GASB)requires state and local governments to record their
liability for uninsured claims in their financial statements.
24
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 309 2005
i ....�._�a.r-r..�a �c�e....,.-.+..—w..a... �•r--.•�.t��—--..—.. .—--. �•r.+i•.r.�w.s - ,..rrrr�:��r.�
J NOTE#7--RISK MANAGEMENT(CONTINUED)
Liability for Uninsured Claims-Continued
- 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
I periodic actuarial evaluations. The actuarial evaluations are typically performed every two years. For intervening
J years,the liability for uninsured claims is reviewed for adequacy based on claims activity during the intervening
period.
I For the fiscal years ended June 30,2005,2004, and 2003 settlements have not exceeded insurance coverage.
Changes in the District's estimated liability for uninsured claims for fiscal years 2005,2004,and 2003 are
summarized as follows:
2005 2004 2003
Beginning balance $ 4379360 $ 4379360 $ 379,710
Provisions for claims incurred In the current year
and changes in the liability for uninsured-
claims incurred in prior years 5512188 82,122 2159534
Claims and claim ad j ustment expenses paid (107,048) (82,122) (1579884)
M__ -Ending balance $ 8812500 $ 4379360 $ 437,360
NOTE#8—AGREEMENT WITH 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 capital costs expended. Service charges and contributions to capital
costs from the City totaled$6,603,000 and$2,608,000 respectively,for the year ended June 30,2005.
The District had the opportunity to make an unexpected capital purchase of real property adjacent to its existing
treatment plant. The City of Concord's share according to the terms of the above agreement is$905,255.
Because the purchase was unexpected,the District agreed to accept four equal annual payments beginning July 1,
2004 and annually thereafter on July 1. The interest shall accrue at 2.06%on a declining balance basis and each
installment payment will be in the amount of$246,000. At the end of June 30,2005, interest of$14,731 had
accrued for a total receivable balance of$724,160.
25
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2005
NOTE#9-PENSION PLAN
Plan Description
Substantially,all District full-time employees are required to participate in the Contra Costa County Employees'
Retirement Association, a cost-sharing multiple-employer public employee deferred benefit retirement plan
(Plan), governed by the County Employee's Retirement Law of 1937,as amended. The latest available actuarial
and financial information for the Plan is for the year ended December 31,2004. The Contra Costa Employees'
Retirement Association issues a publicly available financial report that includes financial statements and
supplemental information of the Plan. That report is available by writing to Contra Costa County Employees'
Retirement Association, 1355 Willow Way Suite 221,Concord, CA 94520-5728 or calling(925)546-5741.
The Plan provides for retirement,disability,and death and survivor benefits. Annual cost of living(CDL)
adjustments to retirement allowances can be granted by the Retirement Board as provided by State statutes.
Service retirements are based on age,length of service and final average salary. Subject to vested status,
employees can withdraw contributions plus interest credited,or leave them as a deferred retirement when they
terminate or transfer to a reciprocal retirement system.
Plan Contribution Requirement
The Plan requires employees to pay one-half of the basic retirement benefit and one-half of future CDL costs.
However,the District has chosen to pay the employee's basic contributions. The contribution,requirement and
from the District for the Ian year ended December 31,2004,was$5,893,440. These contributions
payment p y
represented 32%of covered payroll. The District's contribution for the plan years ended December 31,2003 and
2002 were$5,552,304 and$3,541,530 respectively and were equal to the District's required contributions and the
employee's basic contributions for each year.
NOTE#10—POST EMPL0YEMENT HEALTH CARE BENEFITS
F:.
The Districtp rovides certain health care and life insurance benefits for retired employees. These benefits are
provided for in negotiated employment agreements,commonly referred to as Memorandums of Understanding, r
which cover substantially all employees who reach normal retirement age while working for the District: These
benefits for active employees,are provided through a health maintenance organization and
benefits, and sirrular ben emp y p g
an insurance company whose premiums are based on the benefits paid during the year. The District recognizes
the cost of providing those benefits by expensing the annual insurance premiums,which were$1,610,474 for the
167 eligible retirees for the year ended June 30,2005.
y
a
,14
26
l
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 309 2005
J
NOTE#11—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 affect 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 purchase commitments relating to construction projects at June 30,2005 of$12,358,430.
r
J
J
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27
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i
i
i
i
i
SUPPLEMENTARY
I
I
I
I
I
I
CENTRAL CONTRA COSTA SANITARY DISTRICT
i
COMBINING SCHEDULE OF STATEMENT OF NET ASSETS
AS OF JUNE 309 2005
iMi-wMYM�f MrrMM►-YFwwwMl�MwMMNM�FWM/�MMr M`F .Mwa}iMMw.F4f/F MW�WM-MWYw.WMMww.MYwcFrM�FwvNW M.wMMWM #•Mwv
Running Sewer Self Debt
Expense Construction Insurance Service Eliminations Total
ASSETS
CURRENT ASSETS
9
Cash and investments available for operations $ 289,729 $ 652338,868 $3,535,525 $ - $ - $ 69,1645122
f Accounts receivable 716341442 32376,334 - - 11,010,772
Interest receivable - 70,594 - - 70594
+ Due from other sub-funds 69,8272324 5527577170 110039575 3822433271 164983 1,340) -
Parts and supplies 194962779 - - - 12496,779
Prepaid expenses 17241,647 - - - 172413647
TOTAL CURRENT ASSETS 80,489,921 12475423962 42539,100 38,2439271 (1643831,340) 82,9837914
NONCURRENT ASSETS
Restricted cash and investments - - - 31613,196 - 316132196
Land,property,plant and equipment,net
of accumulative depreciation 480,9985888 - - - - 48429983888
Construction in progress 22,438,361 - - - - 22,4389361
Contractual assessment district receivable - 21189,774 - - - 211893770
Revenue bond issuance costs,
net of amortization - - - 324,117 - 3242117
TOTAL ASSETS 583,9279170 _ 126,7_32,732, 415393100 4231761584 1647831, 592,5442246
LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 297972609 $ 19498,046 $ 19,190 $ - $ 41314,845
Due from other sub-funds 7610901239 825585,577 9801714 5,174,814 (16498312340) -
Interest payable - 2722988 - 494,492 - 7675480
Current portion of refunding revenue bonds - - - 25060,000 - 220609000
Current portion of water reclamation
loan contract - - - 1343030 - 1341030
Liability for uninsured clauns - - 881,504 - 8817500
Accrued compensation absences 4,8622902 - - - 4,862,942
Refundable deposits 1359009 526,716 - - - 661725
TOTAL CURRENT LIABILITIES 83,8855759 8498837327 198813404 718639332 (164,831,340) 1396829482
NONCURRENT LIABILITIES
Revenue bonds,net of current portion - - - 301,2790764 - 309279,764
Water reclamation loan contract,
1
- - -
net of current portion - ,907,855 159072855
TOTAL LIABILITIES _ 832885,759 84,883,327 198817404 ., 40,054,951- w(1649831,340)_ 45 870101
NET ASSETS:
Invested in capital assets,net of related debt 5032437,247 - - (349061,532) - 469,3759715
Restricted for debt service - - - 311183704 31118,704
Unrestricted (3,395,836) 41,849,405 2,657,696 33,068,461 - 74,179,726
TOTAL NET ASSETS $50%0411411 $ 41 849)405 $2,65 7,696 $ 2,125,633 $ - $ 546,6742145
28
OF
CENTRAL CONTRA COSTA SANITARY DISTRICT
COMBINING SCHEDULE OF STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED JUNE 309 2005
w,w+.....++rr.`w..w......w..r.www.+rw..vw.+.w..w.....+.r........wr.r-..wv..w.r�.---.......�—.....,r....�—.r.r�rw.+..+. .rwrww.wr..a.wrrrw4rn�rt .w...w+.r►M...w...w ...ww.vwr..rwr..nw�Mw..w.rrwwr..--......-.�:. _ r....+.+..rww.wwwww.ry.,w.+an....wrw
Running Sewer Self Debt ti
Expense Construction Insurance Service Eliminations Totals
Operating Revenues: F
Sewer service charges(SSC} $ 32,282,846 $ - $ - $ - $ - $ 321282,806
Service charges-City of Concord 69603,000 - - - -
616039000 L
Other service charges 6729887 - - - - 6722887
- -
Miscellaneous charges 612985 - - 6129851
Total operating revenues 40,171,544 - - - - _ 407171,544
Operating Expenses:
Sewage collection and pumping stations 89533,883 - - - - 895339883
Sewage treatment 181767,128 - - - - 181,7679128
Engineering 513117981 - - - - 593111,981
Administrative and general 9,681,994 - 111895693 - - 10,871,687
Depreciation _ 169041,555 - - - 1620419555
_
Total operating expenses 58 336 541 - 111899693 - - 59,526,234
- -
Operating Lass � �18,16429971 (1,189,693 19354_� (- �-. ,z690,._.�
Non-Operating Revenues(Expenses):
Taxes - 197,450 - 318129930 - 410109380
City of Concord cash contributions to-
capital costs - 296229731 - - - 2,5225,731
Customer cash contributions to capital
cost(SSC} 12,4939854 - - - 12,0932854 '
Permit and inspection fees 192327983 839,018 - - - 21,072,OOI u
Interest earnings 191,081 171579523 829028 881,560 195199192
Pump zone fees - 271939619 - - 2,1939619
Interest expense - - - (19775,857) - (12,7759857) "
Other income(expense) 661,240 1702143 2781333_ - - 12109Z716
Total non-operating revenues(expenses) - 220859304 - 19,274,338 360,361 29125,633, 231,8451,636`
Income(loss)before contributions
and transfers (1620799693) 192274,338 (8299332) 2,125,633 - 4114901,946
Contributed sewer lines 59530,848 - - - - 595301,848
Capital contributions-connection fees - 1077289717 - - - 1097289717
26,2562048..__-(26,256,44 -
Transfers - - -
Change In Net Assets 1597071,203 31,7479007 (8299332) 291259633 - 2497507511
Total Net Assets-Beginning 484,334,208 38,1027398 .3v487,1028 - - 5253923,634
Total Net Assets-Ending �$ 5009041,411 $ 41,8491445 $ 2,657 696 $ 271252633 $ - $ 546,16741145
29
CENTRAL CONTRA COSTA SANITARY DISTRICT
SCHEDULE OF RUNNING EXPENSES
COMPARISON OF BUDGET AND ACTUAL EXPENSES BY DEPARTMENT
FOR THE YEAR ENDED .TUNE 309 2005
Sewage Administrative Variance
Sewage Pumping Treatment and Favorable
Collection Stations Plant _En�:ring General Total Bud et� . ..(Unfavorable)_
Salaries and wages $ 392829762 $ 7633395 $ 62806,980 $ 430395669 $ 316619922 $18,554,728 $1924259872 $ 8717144
Employee Benefits 12753,668 3737278 375949943 230895085 359289216 1177393190 1212277350 4887164
Directors'Fees and Expense 497009 492009 50,000 991
Chemicals 1323348 8789201 190105549 191277000 1162451
Professional and Legal Services 93767 119166 137,347 2699666 427,946 376,995 (509951)
Outside Services 136,740 739194 476,719 3881240 847,548 199223441 210505480 127,639
Hauling and Disposal 76,891 51,805 3709933 361597 8151226 9875064 1713834
Repairs and Maintenance 5283078 1342297 1109592027 891)766 1893782 2,900,950 2,757,003 (143,947)
Materials and Supplies 518,388 34,271 7433979 1499160 129,664 19575,462 174809850 (94,612)
Utilities 739160 447,290 39534,203 442624 116,462 41215,739 450047850 (2102889)
Other 92,189 1861J006 512,708 107,635 4895725 088,263 13698,844 310,581
Less Capitalized Overhead and Benefits ._._ 394) 52,254 (121,731} (2,095,142} (213042517) 2,294 990} 9 527
Total $.._5,49 $ 2 097,634 -$ 18,767`w ..$ 5,311.981 $ 9,681 994 $423294,986 $43,890,91 $ 115959928
30
CENTRAL CONTRA COSTA SANITARY DISTRICT
RUNNING EXPENSE
SCHEDULE OF SUPPLEMENTAL NET ASSETS ANALYSIS
FOR THE YEAR ENDED JUNE 309 2005
Prior Year Balance $ 1099312545
2004-2005 Revenue 4292569846
2004-2005 Expense (58,336,541)
Add Back Depreciation Expense 169041,555 (38,140)
Net Assets Attributed to General Operations 101593,405
All Other Net Assets 489,148,006
Running Expense Net Assets $50090419411
h
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31
Central Contra Costa Sanitary District
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Central Contra Costa Sanitary District
Statistical Section
Table of Contents
Financial Trends
These schedules contain trend information to help the reader understand
how the District's financial performance has changed over time.
Changes is Net Assets and Statement of Net Assets - Last Three
FiscalYears.....................................................................................................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
TenFiscal Years..............................................................................................S-4
List of Largest Customers - Last Three Fiscal Years.........................................S-5
Assessed and Estimated Actual Valuation of Taxable Property - Last
TenFiscal Years.............................................................................................S-5
Property Tax and Sewer Service Charge Fees Levied and Collected -
LastTen Fiscal Years......................................................................................S-5
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.
Population Served - Last Ten Calendar Years .................................................5-S
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-9
Biosolids Produced and Plant Flow Comparisons - Last Ten Years................S-10
Miscellaneous Statistics ..................................................................................S-11
Sources: Unless otherwise noted, the information in these schedules is derived from
the comprehensive annual financial reports for the relevant year. The District
implemented GASB Statement 34 in the 2002-2003 fiscal year; schedules presented
include information beginning in that year.
Central Contra Costa Sanitary District
Changes in Net Assets and Statement of Net Assets
Last Three Fiscal Years
Changes in Net Assets 2002-2003 2003-2004 2004-2005
Operating Revenues:
Sewer Service Charges (SSC) 31,967,101 33,935,899 32,282,806
City of Concord 61321,452 61609,602 61 603,000
Other Service Charges 633,037 648,617 672,887
Miscellaneous Charges 506,812 560,454 612,851
Total Operating Revenue 39,428,402 41,754,572 40,171,544
Operating Expenses:
Salaries& Benefits 24,919,820 28,095,636 27,989,401
Chemicals, Utilities& Supplies 59735,379 51808,070 61801,750
Professional & Outside Services 29084,830 21282,408 2,3501387
Hauling, Disposal, Repairs& Maintenance 3,557,171 31871,749 31716,176
Self-Insurance 632,007 689,702 1,189,693
Depreciation 14,527,871 15,186,594 16,041,555
All Other 110182345 11042,809 11437,272
Total Operating Expenses 521475,423 56,976,968 59,5269234
Operating Loss (13,047,021) (15,222,396) (19,3541 690
Non-Operating Revenues (Expenses):
Property Taxes 81801,230 8,919j327 41010,380
Customer Contributions 71833,641 10,187,725 141716,585
Connection &Other Fees 19479,870 21936,298 41265,620
Interest Income 925j509 8311215 115191192
Interest Expense (1,153,349) (1,101,115) (11775,857)
All Other 11076,654 11467,877 11109,716
Total Non-Operating 18,963,555 23,241,327 23,845,636
Income Before Contributions and Transfers 51916,534 81018,931 414900946
Contributed Sewer Lines 71818,537 41410,808 51530,848
Capital Contributions- Connection Fees 51530,064 61585,984 10,728,717
CHANGE IN NET ASSETS 19,265,135 19,0159723 209750,511
Total Net Assets - Beginning 487,6429776 506,907,911 525,9239634
Total Net Assets- Ending 506,907,911 525,923,634 546,674,145
Statement of Net Assets 2002-2003 2003-2004 2004-2005
Investments in Capital Assets, Net of Related Debt 443,3509151 453,251,761 469,375,715
Restricted for Debt Service 41484,542 31035,944 31118,704
Unrestricted 59,073,218 69,6359929 74,179,726
Total Net Assets 506,907,911 525,923,634 546,674,145
The District implemented GASB 34 in the 2002-2003 fiscal year,one year earlier than required.
Source:Central Contra Costa Sanitary District Audited Financial Statements
S-1
f'
Central Contra Costa Sanitary District
Revenue By Type
Last Ten Fiscal Years
$90,000,000
$809000,000
Y
$709000,000
$609000,000
an $50,000,000
o $40,000,000
$30,000,000 L
$20,000,000
$10,000,000
°°Ncl °g� °g° NCI IT
Nip NCP
.._ Fiscal Year �.....� .
❑Total Operating ❑Total Non-Operating J
Operating Revenue
Fiscal Sewer Service City of Other Service Miscellaneous Total
Year Charges* Concord Charges Charges Operating
1995-1996 21,940,280 415399927 158,749 146,063 26,785,019
1996-1997 22,045,880 49827,711 145,978 148,745 27,168,314
1997-1998 22,474,802 416939646 547,682 202,239 27,918,369
1998-1999 23,063,532 49786,407 661,168 229,851 28,7407958
1999-2000 231165,616 51342,002 446,168 309,535 29,2639321
2000-2001 27,613,157 69610,774 6019270 345,295 35,170,496
2001-2002 31,228,855 51897,008 617x768 5089916 38,2529547
2002-2003 319967,101 61321,452 633,037 5069812 399428,402
2003-2004 33,935,899 6,609,602 648,617 560,454 41,754,572
2004-2005 32,2821806 6,603,000 6721887 6129851 441171,544
Non-Operating Revenue
Fiscal Property Customer Connection All Total
Year Taxes Contributions 1 &Other Fees Interest Other Non-O eratin t
1995-1996 5,447,103 71732,630 41853,347 31367,023 284,005 21j6841108
1996-1997 51578,943 6,0771079 59631,597 31585,807 21280,949 239154,375
6
1997-1998 51693,740 7,284,034 41314,339 39702,313 115529362 22,546,788
1998-1999 6,169,390 69556,005 51415,272 311279827 1589844 21,427,338
1999-2000 6,684,949 81733,886 5,7861188 21921,648 3309623 249457,294 r
2000-2001 79238,662 91636,912 510049261 2,9799749 408,120 25,2679704
2001-2002 71551,581 199006,658 593859527 114989751 1,0323527 34,475,044
2002-2003 81801,230 151652,178 7,0099934 925,509 11076,654 33,465,505
2003-2004 819199327 14,598,533 91522,282 831,215 1,467,877 35,339,234
2404-2005 41010,380 20,2471433 14,994,337 11519,192 11109,716 41,881,058
a
M1,
* Sewer Sery ce Charge(SSC)represents the Running Expense Fund portion of SSC County co,lections along with D'str ct d rect b'liings and counter collections.
*1 Customer Contra butions also include the porton of SSC that.s abcated to Sewer Construction Fund and City of Concord reimb-i rsement of capital costs
n add'tion due to change in GASB 33 reporting requ rements,$3 5 m I ion in 2000-2001 ,$14.4 m Dion n 2001-2002,$7.8 mi1on in 2002-03,$4.4 m.Ilion n ;
2003-2004 and$5 5 mi.l'on in 2004 2005 for deve,oper controbu-led sewer lines. %
Source Centra Contra Costa San'ary D str ct Aud ted Financial Statements
r
s,
9i
Central Contra Costa Sanitary District
Operating Expenses by Type
$601000j000
Last Ten Foscal Years
$55,000,000
$509000,000
$45,000,000
$40,000,000
$35,0009000 "' - .
c
$30,000,000 -
$25,000,000
$20,000,000
$15,000,000 -
$10,0001000 -
$5,000,000
NNE
00 q� °° o°' o0 0'` °�
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Fiscal Year
Salaries and Benefits Chemicals,Utilities&Supplies
Professional&Outside Services Hauling, Disposal, Repairs&Maintenance
Self-Insurance Depreciation
All ether
OPERATING EXPENSES
Fiscal l Salm Chemicals,llU141e3 Professional& Hauling.Disposal, Self Insurance Depreciation All Total Operating Non-Operating
s
Year and Bonatits F plies Outside Services Repairs&Maintenance Other Expenses _ Expenses
1995-1996 18,551,854 4,019,670 1,678,569 2,219,572 765,549 8,299,360 808,799 36,343,373 6,125
1996-1997 18,383,214 3,889,186 1,629,631 2,463,610 2,120,312 9,649,704 784,578 38,920,235 -
1997-1998 19,308,686 4,149,602 2,065,599 3,442,826 582,222 10,332,200 840,923 40,722,058 -
1998-1999 19,564,429 4,399,152 2,345,887 4,115,527 644,371 11,345,155 920,480 43,334,601 1,301,200
1999-2000 20,034,810 5,130,743 2,560 175 3,513..754 419,312 12,157,975 1,034,683 44,851,452 1,304,980
2000-2001 22,051,911 7,496,028 2,762,603 3,621,826 924,242 13,004,018 1,085,888 50,946,516 1,250,588
2001-2002 22,848,114 7,009,868 2,110,886 3.476,325 677,159 13,833,124 745,605 50,701,081 1,202,782
2002-2003 24,919,820 5,735.379 2,084,830 3,557,171 632,007 14,527,871 1,018,345 52,475,423 1,153,349
2003-2004 28.095,636 5,808,070 2,282,408 3,871,749 689,702 15,186,594 1,042,809 56 976,968 1,101,115
2004-2005 27,989,401 6801,750 2,350,387 3,716,176 1,189,693 16,041,555 1,437,272 59,526,234 1,775,857
Informational-wt graphed
Source:Central Contra Costa Sanitary District Audited Financial Statements
S-3
r
Central Contra Costa Sanitary District
Major (Revenue Base and Rates
Historical and Current Fees
Last Ten Fiscal Years
r
r
Annual Sewer Service Charge*1 Facility Pump
Fiscal Year Operations Capital Total Capacity Fee*2 Zone Fee*3
1995-1996 157 31 188 29572 348
1996-1997 157 31 188 21572 348
1997-1998 157 31 188 21572 348
1998-1999 157 31 188 21572 348
1999-2000 157 31 188 21572 348
2000-2001 185 15 200 21572 348
2001-2002 204 20 224 3,360 710
2002-2003 207 41 248 31360 710
2003-2004 218 54 272 3,983 988
2004-2005 1 204 76 280 31983 988
*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
$300
$250 -
$200 -�
cf a�
79
$150
C
c
4
$100 - -
$50
/9, 11.9,'�� j`9c9 j`�c9 'y� cP°o "P°o c�°o c�°o c�°o
6; ? �9 0, r, �? u?
s�� �� r� �� , i° io o p, ;'°
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Fiscal Year
0 Operations 0 Capi+a'
S-4
IL
Central Contra Costa Sanitary District
List Of Largest Customers
Last Three Fiscal Years
Percentage of Percentage of Percentage of
Operating Operating Operating
Ratepayer 2004-2005 Rank Revenue 2003-2004 Rank Revenue 2002-2003 Rank Revenue
City of Concord* $ 61603,000 1 15-81% $ 6,609,602 1 15.83% $ 6,321,452 1 16.0310
Contra Costa County General Services 294,670 2 0.71% 250,442 2 0.60% 222,619 2 0.56%
First Walnut Creek Mutual 225,190 3 0.54% 225,190 3 0.54% 206,246 3 0.52%
Park Regency 2229880 4 0.53% 222,880 4 0.53% 197,408 4 0.50%
Second Walnut Creek Mutual 210,000 5 0.50% 2109000 5 0.50% 158,224 5 0.40%
Sun Valley Mall 158,077 6 0.38% 158,077 6 0.38% 138,993 6 0.35%
ArchstoneTreat Commons Apartments 1429800 7 0.34% 142,800 7 0.34% 126,480 7 0.32%
Reflections San Ramon Apartments 1399062 8 0.33% 139,062 8 0.33% - _
Willows Shopping Center 112,797 9 0.27% 121,996 9 0.29% 103,321 9 0.26%
Kaiser Foundation Hospital 98,522 10 0.24% - - - _
St. Mary's College Contract - - - - 106,497 8 0.27%
Canyon Point Condominiums - - 97,440 10 0.23% 86,304 10 0.22%
Total $ 8,206,998 19.66% $ 811779489 19.58% $ 71667,544 19.45%
The District implemented GASB 34 in the 2002-2003 fiscal year,one year earlier than required.
Contract with the City of Concord to treat and dispose of wastewater for Concord/Clayton.
Source: Central Contra Costa Sanitary District Environmental Services Division
S-5
P
Central Contra Costa Sanitary District
Assessed and Estimated Actual Valuation of Taxable Property
Last Ten Fiscal Years
Fiscal Year. Local Secured Unsecured Total Chan2e,.�`.
1995-1996 28,7169946,594 11178,289,067 29,894,335,661 3%
1996-1997 29,533,4459439 1,115,907,444 30,649,352,883 3%
1997-1998 30,5821674,632 1,107,438,395 31,690,113,027 3%
1998-1999 32,514,783,517 1,119,407,570 33,634,191,087 6%
1999-2000 34,973,946,879 1,140,492,514 36,114,439,393 7%
2000-2001 38,029,210,584 11225,6081154 39,254,818,738 9%
2001-2002 409166,666,299 113759049,056 41,541,715,355 6%
2002-2003 43,172,880,129 11434,598,034 44,6071478,163 7%
2003-2004 46,821,339,668 11446,650,234 48,267,989,902 8%
2004-2005 50,577,841,843 11416,240,351 51,994,082,194 8%
Source: Contra Costa County Auditor-Controllers Office
Property Tax and Sewer Service Charge Fees Levied and Collected
Last Ten Fiscal Years
Property Tax* Sewer Service Charges*
Fiscal Year Levied&Collected Levied &Collected
1995-1996 5,528,481 25,834,161
1996-1997 51657,293 25,958,341
1997-1998 51863,085 26,437,148
1998-1999 61254,229 26,984,372
1999-2000 617239957 27,078,595
2000-2001 71228,881 29,253,537
2001-2002 71901,161 339650,005
2002-2003 814609674 371479,440
2003-2004 99013,484 41,4999031
2004-2005 41027,427 43,327,756
* General County taxes collected are the same as the amount levied since the County participates in California's alternative method of
apportionment called the Teeter Plan. The Teeter Plan as provided in Section 4701 et seq.of the State Revenue and Taxation Code,
establishes a mechanism for the County to advance the full amount of property tax and other levies to taxing agencies based on the
tax levy,rather than on the basis of actual tax collections. Although this system is a simpler method to administer,the County assu-
mes the risk of delinquencies. The County in return retains the penalties and accrued interest thereon.
Source: Contra Costa County Auditor-Controllers office
S-6
Central Contra Costa Sanitary District
Summary Of Debt Service
Last Ten Fiscal Years
Type Of Debt
4500000
4000000
3500000
3000000
2500000
c 2000000 --- - -
1500000 I
1000000
500000
_ t i
Rill 'qq
N.0i 0111I T IT
��X �°'Vo. �gq. goo. oo,�- oo�. oSO .
Fiscal Year
Revenue Bonds
_(1 &2002L E1 Recycled Water Loan
Summary By Type Of Debt
- -• - 7Debt
7otat Debt Servrce
Fiscal Total Total Total Debt RestrictionsYear Princi al Interest Debt Service Princi ai Interest Service Principal Interest Debt Service There is no maximum allowable
1995-1996 - 1,458,830 1,458,830 - - - - $ 1,458,830 $ 1,458,830 amount of debt that the District
1996-1997 $ 755,000 1,459,741 2,214,741 - - - $ 755,000 1,459,741 2,214,741 may borrow.
1997-1998 790,000 11421,245 2,211,245 - - - 790,000 1,421,245 2,211,245
1998-1999 835,000 1,005,749 1,840,749 $ 139,194 $ 47,925 $ 187;119 974,194 1,053,674 2,027,868 Revenue Pledge&Covenant:
1999-2000 725,000 1,013,715 1,738,715 114,900 72,219 187,119 839,900 1,085,934 1,925,834 The District pledges Property Tax
2000-2001 1,245,000 979,240 2,224,240 117,887 69,232 187,119 1,362,887 1,048,472 2,411,359 Revenue along with its ability to
2001-2002 1,285,000 993,407 2,278,407 120,952 66,167 187,119 1,405,952 1,059,574 2.465,526 raise Sewer Service Charge(SSC)
2002-2003 1,330,000 1,435,811 2,765,811 124,097 63,022 187,119 1,454,097 1,498,833 2,952,930 rates. Debt Coverage requirements
2003-2004 1,375,000 1,583,739 2,958,739 127,323 59,796 187,119 1,502,323 1,643,535 3,145,858 are discussed in the footnotes below.
2004-2005 1 1,995,000 1,719,3721 3,714,372 1 130,6341 56,485 187,119 2,125,6341 1,775,857 3,901.491
Debt Service Covera a Summag Debt Ratio ary
Total Total Operating Non-Operating Debt Service Capital Debt Service Debt to Sewer Service Cost of Debt
Fiscal Debt Operating Expenses less Revenue& Net Coverage Improvement Adjusted Net Coverage Expense Equivalent Per
Year Service Revenue Depreciation Contributions Revenue*i Net Revenue *2 Fees/Concord Revenue-3 (Adj.Net Revenue)*4 Ratio Units-5 Connection
1995-1996 $ 1.458,830 26,785,019 $ 28,044.013 21.684,108 20,425,114 14.00 7,007,472 13,417,642 9.20 5.20% 139.747 $ 10.44
1996-1997 21214,741 27,168,314 29,270,531 23,154,375 21,052,158 9.51 6,194,972 14,857,186 6.71 7.57% 140,420 15.77
1997-1998 2,211,245 27,918,369 30,389,858 22,546,78B 20,075,299 9.08 6,327,985 13,747,314 6.22 7.28°gip 143,152 15.45
1998-1999 2,027,868 28,740,958 31,989,446 21,427,338 18,178,850 8.96 6,457,432 11,721,418 5.78 5.34% 146,891 13.81
1999-2000 1,925,834 29,263,321 32,693,477 24,457,294 21,027,138 10.92 8,867,213 12,159,925 6.31 5.89% 147,552 13.05
2000-2001 2,411,359 35,170,496 37,942,498 25,267,704 22,495,702 9.33 7,927,822 14,567,880 6.04 6.36% 149,245 16.16
2001-2002 2,465,526 38,252,547 36,867,957 34,475,044 35,859,634 14.54 5,753,738 30,105,896 12.21 6.69% 153.073 16.11
2002-2003 2,952,930 39,428,402 37,947,552 33,465,505 34,946,355 11.83 7,023,589 27,922,766 9.46 7.78% 154,420 19.12
2003-2004 3,145,858 41,754,572 41,790,374 35,339,234 35,303,432 11.22 8,370,344 26,933,088 8.56 753% 155,200 20.27
2004-2005 1 3,901,491 1 40,171,544 1 43,484,679 41,881,058 38,567,923 1 9.89 13,351,448 1 25,216,475 1 6.45 A 8.97% 158,250 24.65
*1 Net Revenue=Operating Revenue less Tota!Operating Expenses less Depredation plus Non-Operating Revenue,
'2 This ratio must be above 1.00 to meet the Debt Rate Covenant.
*3 Adjusted Net Revenue-Net Revenue less Capital Improvement Fees(Connection Fees)and Clty of Concord Capital Charges.
*4 This ratio must be above 1.25 to meet the Debt Rate Covenant.
*5 Number of connections to the sewer system. Commercial customers based on water consumption,averaged using the residential fixed rate(SSG/O&M SSC Rate)
Source. Central Contra Costa Sanitary District Audited Financial Statements and Internal Accounting Records S-7
Central Contra Costa Sanitary District
Demographic and Economic Data
Population Served
Last Ten Calendar Years
Inside District Concord/ Total %
As Of January 1 Boundaries Clayton Served Chan e
1996 278,330 121,200 399,530 -1.1%
1997 281,650 121,850 403,500 1.0%
1998 287,320 124,030 411,350 1.9%
1999 290,780 125,610 416,390 1.2%
2000 294,170 126,300 420,470 1.0%
2001 291,230 135,150 426,380 1.4%
2002 2939080 134,920 428,000 0.4%
2003 302,675 135,900 4389575 2.5%
2004 303,980 1359845 4399825 0.3%
2005 308,428 135,780 444,208 1.0%
500,000
450,000
400,000 --- --
350,000 -
C 300,000
0
250,000
CL
0
CL 200,000
u
x
150,000
100,000 - - ---- -
50,000
--
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Year
17 Inside District Boundaries 11 Concord/Clayton
* Fluctuations from prior year due to population estimate revisions by the California Department of Finance.
Source. Central Contra Costa Sanitary District Environmental Services Division
fi
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Central Contra Costa Sanitary District
Full-tune Equivalent Employees by Department
Last Ten Fiscal Years
Pull-time Equivalent Employees as of June 30
- • .r..rrrrrrrr
Department 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
Administration 41 40 36 39 43 42 42 43 42 43
Engineering 69 68 71 62 64 67 67 70 71 76
Operations
Collection Systems 46 42 43 40 43 41 42 44 45 46
Plant 89 88 84 79 77 79 81 82 82 81
Pumping Station 5 5 7 7 7 7 7 8 9 9
Operations Total* 140 135 134 126 127 127 130 134 136 136
District Total 250 243 241 227 234 236 239 247 249 255
"Prior to Fiscal Year 2002,the current Operations Department was 3 separate departments. The totals listed above are the combined
totals for the years listed prior to the consolidation.
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Central Contra Costa Sanitary District
Biosolids Produced and Plant Flow Comparisons
Last Ten Fiscal Years
18,000 Blasolids Produced
16,000
r
14,000 -
12,000
10,000
I
12
8,000
6,000
4,000
2,000
p
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oo, oA, oo. �;� �;�• o,�;�• o�z ooZ Z
�g Ng No X,b do �o �0 20 (o Io
Racal Year
❑Sludge to Furnace ❑Ash to Reuse Site
Wet TonslYear
Fiscal Year Ash to Reuse Site
1995-1996 12,775 31550
1996-1997 149280 31863
1997-1998 151041 41184
1998-1999 15,847 5,353
1999-2000 16,476 41781
2000-2001 169881 51226
2001-2002 16,318 5,235
2002-2003 161053 51384
2003-2004 16,727 5,397
2004-2005 15,841 51074
Wet sludge,which at 22 to 28 percent solids,is purr ped to the multip e-hearth furnace for incineration. The tab'e above shows the dry tons per year of sludge to the
furnace,excluding the 72 to 78 percent water in the wet sludge.
In the multi-hearth furnace,the wet sludge is converted to dry ash. Water is added to the dry ash as it s loaded into trucks(rato 0 60 percent ash to 40 percent water)
to prevent the ash from blowing out of the truck durng transport.
Plant Flow Comparisons
Treatment Plant Treatment Plant Wastewater Recycled
F
Calendar Pipeline Permrted Capacity ADWF 2 Treated Water Produced
Year* Miles �rngd)*1 (mgd)•1 (mgd) Per Day*3 (mgd) Per Da)C3�
1995 19333 45.0 36.4 44.4 1.0
1996 1,333 45.0 38.5 45.9 1.0
1997 1,346 45,0 37.3 43.0 1.0
1998 11361 45.0 42.0 510 1.1
1999 11376 45.0 39.6 444 1.3
2000 1,391 45.0 40.8 45.5 1.4
2001 11400 45.0 38.4 42.1 1.5
2002 19400 53.8 39.4 43.1 1.5
2003 11400 53.8 40.0 42.9 1.4 4
2004 11400 53.8 40.6 44.7 1.5 L
' Data collected represents calendar year,therefore corr pVe 2005 tiara not yet avai,ab;e. '2 Average Dry Weather Fow-based on average of owest three monhhs
*1 rngd=M Kions of gallons per day '3 Annual average of actual flow.
So.rce: Central Cont,-a Costa Sanitary Dist,ict Engineer;ng and Plant Ope,at ons Depts
e In
Central contra Costa Sanitary District
Miscellaneous Statistics
June 30, 2005
Governing Body: Elected 5-Member Board of Directors
Governmental Structure: Established in 1946 under the Sanitary District Act of 1923
Staff: 255 full-time equivalent employees
Authority: California Health and Safety Code Section 4700 et. Seq.
Services: wastewater collection, treatment, and disposal
Household Hazardous Waste Facility
Recycled water
Service Area: 142 square miles
Total Population Served: 444,208
Operations: Total miles of trunk and sub-trunk sewers - 11400
Number of pumping stations- 19
Average Dry weather Flow-40.6 mgd
Permitted Plant Capacity: 53.8 mgd (million gallons per day)
Type Of Treatment: Discharge- Secondary; Reclamation -Tertiary
Sewer Service Charge: $280 annually per residential equivalent unit
Source: Central Contra Costa Sanitary District records
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