HomeMy WebLinkAbout06.d. [Revised] Attachment 1-Draft CAFR (Comprehensive Annual Financial Report)-2016C omprehensive A nnual Financial ReportCentral C o n t r a C o s t a Sanitary District
5019 Imhoff Place, Martinez, CA 94553CAFR
for the Fiscal Years ended June 30, 2016 and 2015
6.d.
Attachment 1 (Revised)
CENTRAL CONTRA COSTA SANITARY DISTRICT
MARTINEZ, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEARS ENDED JUNE 30, 2016 AND 2015
Prepared By:
Finance & Accounting Division
CENTRAL CONTRA COSTA SANITARY DISTRICT
Comprehensive Annual Financial Report
Table of Contents
For the Years Ended June 30, 2016 and 2015
INTRODUCTORY SECTION:
Letter of Transmittal ............................................................................................... i
Board of Directors ................................................................................................ vii
Mission Statement ................................................................................................ ix
Organization Chart ............................................................................................... x
Map of Service Area ............................................................................................. xi
Certificate of Achievement ................................................................................... xii
FINANCIAL SECTION:
Independent Auditors’ Report ............................................................................... 1
Management’s Discussion and Analysis .............................................................. 3
Basic Financial Statements
Statement of Net Position ........................................................................ 10
Statement of Revenues, Expenses and Changes in Net Position ........... 13
Statement of Cash Flows .................................................................... 14-15
Notes to Financial Statements - The accompanying notes are an
integral part of the basic financial statements .................................... 17-43
Required Supplementary Information
Schedule of Changes in the Net Pension Liability and Related Ratios -
Last 10 Years ......................................................................................... 46
Schedule of Contributions – Last 10 years .............................................. 47
Post Retirement Health Care Defined Benefit Plan - Schedule
of Funding Progress – Last Three Valuations ........................................ 48
Supplementary Information
Combining Schedule of Statement of Net Position .................................. 50
Combining Schedule of Statement of Revenues, Expenses and
Changes in Net Position - Enterprise Sub-Funds .................................. 51
Schedule of Running Expenses - Comparison of Budget and Actual
Expenses by Department ....................................................................... 52
Running Expense - Schedule of Supplemental Net Position Analysis ..... 53
STATISTICAL SECTION (Unaudited):
Changes in Net Position and Statement of Net Position -
Last Ten Fiscal Years ..................................................................................... S-1
Revenue by Type - Last Ten Fiscal Years ......................................................... S-2
Operating Expenses by Type - Last Ten Fiscal Years ....................................... S-3
Major Revenue Base and Rates - Historical and Current Fees -
Last Ten Fiscal Years ..................................................................................... S-4
CAFRIntroduction
Central Contra Costa Sanitary District
Protecting public health and the environment 5019 Imhoff Place, Martinez, CA 94553-4392
i
ii
Sewer Construction - accounts for non-operating revenues that are to be used for
acquisition or construction of plant, property, and equipment (also referred to as the
Capital Fund).
Self-Insurance - accounts for interest earnings on cash balances in this sub-fund
and cash allocations from other funds, as well as costs of insurance premiums and
claims not covered by the District’s insurance policies.
Debt Service – accounts for activity associated with the payment of the District’s
long term bonds and loans.
Each year, the Board adopts the following four budgets: Operations and Maintenance,
Capital Improvement and Sewer Construction, Self-Insurance, and Debt-Service. The
Board Finance Committee reviews disbursements prior to each regular Board meeting,
and disbursements are then approved by the full Board. Monthly financial statements
are issued to management and the Board. A detailed mid-year and annual budget
analysis are prepared and presented to the Board. District management is accountable
for variances and adhering to budget constraints. The District also has several
documented financial policies that are reviewed and updated as appropriate.
ASSESSING THE DISTRICT’S ECONOMIC CONDITION
Local Economy and Outlook
Nationally, the country continues its economic expansion, as most large metropolitan
areas have recovered from the recession of 2008. According to the Legislative
Analyst’s Office (LAO), personal incomes are projected to increase and unemployment
should continue to decrease in California through fiscal year 2018. The state’s
revenues will be about $1.7 billion lower than the previous fiscal year due to the state’s
main source of revenue coming from personal income tax which is highly volatile. This
decrease in revenues will be met with decreased spending of $1.2 billion. Reserves
should increase to $6.2 billion, which would allow little to no new spending commitments
in the near future. The state’s priorities continue to be to pay off existing debts and to
build up the rainy-day fund to help minimize the effects of boom and bust cycles.
According to the UCLA Anderson forecast, the U.S. should see slow but steady job
growth through 2018 led mostly by increases in consumer spending and housing. With
an increase in GDP, a strong labor market, increase in payrolls, and a steady
unemployment rate around 5%, there is increasing evidence of rising interest rates and
inflation in the near future. Employment in California is now at record levels, the number
of people employed, including farm labor and the self-employed, is at over 18 million
which is 6.2% above its previous peak.
Increased home values have led to growth and new connections in the service area
which continue to benefit the District. Concord and Walnut Creek continue to expand
their commercial and residential projects which have increased sewer service charges
and connections fees. The District and the bargaining units have agreed on a five-year
contract that will go to December 2017. The current labor contract progressively
eliminates employee retirement costs being paid for by the District. Payment of the
iii
unfunded liability is a major concern for the District as it is for many public entities. An
additional payment for the unfunded actuarial accrued liability is included as part of the
financial plan for the District to alleviate future fiscal obligation of the unfunded liability.
The District has an excellent reputation in all areas of public service, which include
finance, collection, treatment, training, safety, technology, capital projects, construction
and customer service. The District has balanced revenue sources, adequate reserves,
and a moderate debt obligation. The District reviews its rate and other charges
annually. The District can increase its sewer service charge rates when needed to make
up revenue shortfalls by providing public notice to all customers, holding a Public
Hearing, and obtaining approval by the Board of Directors. The District is also able to
obtain bond financing, as needed, due to the District’s AAA bond rating. The District
anticipates that it will continue to meet its mission and goals, continue to provide
excellent customer service and reasonable rates to its customers, and meet compliance
requirements given the current economic conditions.
Long-Term Financial Planning
District management analyzes and updates their strategic plan every two years, with the
six goals being: provide exceptional customer service, strive to meet regulatory
requirements, be a fiscally sound and effective water sector utility, develop and retrain a
highly trained and innovative workforce, maintain a reliable infrastructure, embrace
technology, innovation and environmental sustainability. Strategies to achieve each of
the goals are developed, as well as metrics to evaluate success. The District performs
a 10-year long-term cash flow forecast each year shortly before the budget process
begins. The main economic factors considered in long-range forecasting are: the
impact of state legislation and mandates, regulatory compliance, Governmental
Accounting Standards Board (GASB) requirements, negotiated salary increases and
employee benefits (including significant increases in retirement and health care costs),
energy costs and interpreting the energy market, housing growth, and infrastructure
renewal and replacement needs. The District has a significant amount of unfunded
actuarial liability for both pension and other post employment costs (OPEB) and various
options for managing these liabilities are revisited annually in the financial planning
process.
Relevant Financial Policies
Investment Policy: The District’s investment policies for District assets and GASB 45
Trust are reviewed and approved annually by the Board of Directors in accordance with
District investment policy. Section 53646 of the California Government Code governs
our investment practices, and is reviewed annually by staff, legal counsel and the
Board. No required changes were necessary. The Board receives monthly financial
statements that include District investment performance. Since 2008, the GASB 45
Trust investments are in a moderate investment strategy fund. The Board Finance
Committee reviews GASB 45 Trust quarterly financial statements to monitor the
District’s investment strategy.
Major Initiatives
The District’s vision is to be a high-performance organization that provides exceptional
customer service and regulatory compliance at responsible rates. Regulatory
iv
compliance is provided through utilizing best management practices in our operation of
our collection system and treatment facilities, as well as through continued investment
in our infrastructure.
The District has received the Platinum award from the National Association of Clean
Water Agencies (NACWA) for 18 straight years in recognition of 100% compliance with
our National Pollutant Discharge Elimination System (NPDES) permit. It has also
reduced the number of sanitary sewer overflows by more than 60% in the past 11 years
by improved sewer cleaning and a robust sewer rehabilitation program.
The District adopted a two year Strategic Business Plan for FY 16 -17 through FY 17-
18. The Strategic Business Plan establishes policy direction and identifies six goals with
key performance indicators that provide a roadmap for achieving increased
effectiveness and efficiencies. Continuing to be a fiscally sound and effective water
sector utility is one of the six goals in the strategic plan and the District’s strategies for
achieving this goal are to conduct long range financial planning and to manage costs.
The District continues to analyze current and future rates, costs, and cash flows to
ensure that they remain consistent with the cost of service study that was completed in
FY 2014-15. The District is seeking out new revenues and funding sources, such as
interagency agreements and possible state loan and grant opportunities.
In order to effectively manage assets to meet future state and federal regulatory
requirements, the District initiated an Asset Management Program and the preparation
of a Comprehensive Wastewater Master Plan to evaluate options for addressing future
regulatory requirements. The Master Plan will be completed in FY 2016-17.
AWARDS AND ACKNOWLEDGEMENTS
The Government Finance Officers Association of the United States and Canada
(GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to
the Central Contra Costa Sanitary District for its comprehensive annual financial report
for the fiscal year ended June 30, 2015. This was the sixteenth consecutive year that
the District has achieved this prestigious award. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our
current comprehensive annual financial report continues to meet the program’s
requirements and we are submitting it to the GFOA to determine its eligibility for
another certificate.
This report could not have been accomplished without the dedication and commitment
provided by District staff. I would like to express my appreciation to the following
employees who assisted in its preparation:
v
vi
CENTRAL CONTRA COSTA SANITARY DISTRICT
BOARD OF DIRECTORS
June 30, 2016
Tad J. Pilecki .................................................... President
Paul H. Causey .................................. President Pro-Tem
James A. Nejedly ................................................ Member
David R. Williams ................................................ Member
Michael R. McGill ................................................ Member
vii
(THIS PAGE INTENTIONALLY LEFT BLANK)
viii
0061-6/16
Vision, Mission, Values
Our Mission
To protect public health and the environment
Our Vision
To be a high-performance organization that provides exceptional customer service and
regulatory compliance at responsible rates
People
• Value customers and
employees
• Respect each other
• Work as a team
• Celebrate our
successes and learn
from our challenges
Our Values
Community
• Value water sector
partners
• Foster excellent
community relationships
• Be open, transparent
and accessible
• Build partnerships
• Understand service
level expectations
Principles
• Be truthful and honest
• Be fair, kind and
friendly
• Take ownership and
responsibility
Leadership and
Commitment
• Work effectively and
efficiently
• Promote a passionate
and empowered workforce
• Encourage continuous
growth and development
• Inspire dedication and
top-quality results
ix
General
Manager
Board
Members
Engineering &
Technical
Services
AdministrationSecretary of the
District
Counsel for the
District
Electorate
CENTRAL CONTRA COSTA SANITARY DISTRICT
Organization Chart - Composite
Operations
Information
Technology
Finance
Purchasing &
Materials
Services
Communication
& Intergov.
Relations
Collection
System
Operations
Plant
Maintenance
Plant
Operations
Capital Projects
Division
Environmental &
Regulatory
Compliance
Planning &
Development
Services
Risk
Management x
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§¨¦80
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ClaytonClayton
SanFranciscoBay
§¨¦680
¬«24
BeniciaBenicia
¬«4
SanPabloBay Suisun Bay
OrindaOrinda
AntiochAntioch
MartinezMartinez
DanvilleDanville
San RamonSan Ramon
PittsburgPittsburg
LafayetteLafayette
Walnut CreekWalnut Creek
Pleasant HillPleasant Hill
ConcordConcord
BerkeleyBerkeley
OaklandOakland
MoragaMoraga
AlamoAlamo
HerculesHercules
"
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"
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1 2
3
45
"67
14
891011 1213
15
1918
17
16 ´0 2 4
Miles
Central Contra Costa Sanitary DistrictMap of Service AreaJune 30, 2016
CCCSD Pumping Stations1. Martinez 11. Lower Orinda2. Fairview 12. Bates Blvd. - Orinda3. Maltby 13. Orinda Crossroads4. Clyde 14. Via Robles5. Concord Industrial 15. Moraga6. Buchanan Field North 16. San Ramon7. Buchanan Field South PRIVATELY OWNED:8. Sleepy Hollow 17. Wagner Ranch9. Acacia 18. Lower Wilder10. Flush Kleen 19. Upper Wilder
!CCCSD's Headquarters Office Building,Treatment Plant, and HHW Collection Facility
"CCCSD's Collection System OperationsDepartment (sewer maintenance)
HHW disposal services only
Wastewater treatment and HHW collectionfor 140,900 residents in Concord and Claytonby contract
Wastewater collection and treatment andHHW collection for 340,700 people
11. Lower Orinda12. Bates Blvd. - Orinda13. Orinda Crossroads14. Via Robles15. Moraga16. San RamonPRIVATELY OWNED:17. Wagner Ranch18. Lower Wilder19. Upper Wilder
Pumping Station
Privately Owned Pumping Station
xi
xii
CAFRFinancials
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
Central Contra Costa Sanitary District
Martinez, California
Report on Financial Statements
We have audited the accompanying financial statements of the Central Contra Costa Sanitary District (District) as of
and for the years ended June 30, 2016 and 2015, and the related notes to the financial statements, which
collectively comprise the District’s basic financial statements as listed in the Table of Contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America; this includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of the
financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our
audits in accordance with auditing standards generally accepted in the United States of America. Those standards
require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are
free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments,
the auditor considers internal control relevant to the District’s preparation and fair presentation of the financial
statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the District’s internal control. Accordingly, we express no such
opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position
of the Central Contra Costa Sanitary District as of June 30, 2016 and 2015, and the changes in financial position and
cash flows for the years then ended in conformity with accounting principles generally accepted in the United States
of America.
1
Emphasis of a Matter
Management adopted the provisions of Governmental Accounting Standards Board Statement No. 72-Fair Value
Measurement and Application, which became effective during the year ended June 30, 2016 as discussed in Note 1
to the financial statements.
The emphasis of this matter does not constitute a modification to our opinion.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management’s Discussion and
Analysis and Required Supplementary Information be presented to supplement the basic financial statements. Such
information, although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic or historical context. We have applied certain limited procedures
to the required supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express
an opinion or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the District’s basic financial statements as a whole. The Introductory Section, Supplemental Information and
Statistical Section, as listed in the Table of Contents are presented for purposes of additional analysis and are not
required parts of the basic financial statements.
The Supplemental Information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the financial statements. The information has been
subjected to the auditing procedures applied in the audit of the financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the financial statements or to the financial statements themselves, and other additional
procedures in accordance with generally accepted auditing standards in the United States of America. In our
opinion, the Supplemental Information is fairly stated in all material respects in relation to the basic financial
statements as a whole.
The Introductory and Supplemental Sections have not been subjected to the auditing procedures applied in the audit
of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Pleasant Hill, California
November 28, 2016
2
CAFRStatistics
Central Contra Costa Sanitary District
Changes in Net Position and Statement of Net Position
Changes in Net Position 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
Operating Revenues:
Sewer Service Charges (SSC)$35,057,668 $40,207,157 $43,087,454 $48,692,520 $49,095,870 $49,123,848 $56,770,984 $60,796,421 $70,023,512 $72,233,903
City of Concord 9,043,215 8,206,860 8,755,857 8,664,668 9,224,952 10,647,389 10,483,421 11,625,864 12,892,945 13,913,960
Other Service Charges 793,395 869,589 872,978 824,022 913,017 915,485 1,076,401 1,035,134 1,006,197 963,014
Miscellaneous Charges 863,843 595,980 667,855 650,876 662,721 929,917 751,880 544,589 593,780 623,659
Total Operating Revenue 45,758,121 49,879,586 53,384,144 58,832,086 59,896,560 61,616,639 69,082,686 74,002,008 84,516,434 87,734,536
Operating Expenses:
Salaries & Benefits 34,678,665 37,312,472 39,440,034 39,986,763 41,705,131 45,562,430 49,811,218 58,954,452 66,104,630 63,988,158
Chemicals, Utilities & Supplies 8,759,490 8,952,840 9,368,755 7,973,992 7,609,127 8,121,809 7,401,103 8,063,309 7,466,490 7,304,619
Professional & Outside Services 2,298,712 2,613,658 2,832,001 2,129,552 2,425,615 4,099,876 2,836,638 3,995,860 3,322,881 4,196,302
Hauling, Disposal, Repairs & Maintenance 4,105,082 3,863,555 3,938,129 3,808,635 3,916,789 4,077,741 4,239,421 4,041,355 4,758,260 5,780,533
Self-Insurance (net of transfers)(180,716)(215,004)90,876 (688,859)119,051 (65,688)159,961 214,290 496,381 72,486
Pension Expense - - - - - - - - (3,012,757) (9,778,389)
Depreciation 17,714,714 18,615,747 19,417,941 20,969,429 20,580,061 21,190,059 21,596,266 21,892,545 22,740,942 22,885,030
All Other 2,144,082 2,378,941 2,305,459 2,658,662 2,459,966 2,489,019 2,693,135 2,346,583 2,473,963 3,343,778
Total Operating Expenses 69,520,029 73,522,209 77,393,195 76,838,174 78,815,740 85,475,246 88,737,742 99,508,394 104,350,790 97,792,517
Operating Loss (23,761,908) (23,642,623) (24,009,051) (18,006,088) (18,919,180) (23,858,607) (19,655,056) (25,506,386) (19,834,356) (10,057,981)
Non-Operating Revenues (Expenses):
Property Taxes *11,762,731 12,254,168 12,539,375 12,260,123 12,213,624 12,047,169 13,010,477 13,093,841 14,083,331 14,835,167
Connection & Other Fees 1,615,308 1,335,160 1,093,756 776,348 895,825 903,810 1,169,809 1,575,251 1,843,942 2,546,723
Interest Income 3,257,773 2,527,621 1,033,095 570,024 673,990 294,938 405,474 359,288 318,475 562,308
Interest Expense (1,609,104) (1,518,142) (1,421,686) (1,553,467) (2,061,903) (1,919,375) (1,802,084) (1,996,689) (1,523,127) (1,427,641)
All Other *1,316,383 1,243,817 639,523 12,295 (523,209)931,660 951,100 932,464 1,828,530 1,195,095
Total Non-Operating 16,343,091 15,842,624 13,884,063 12,065,323 11,198,327 12,258,202 13,734,776 13,964,155 16,551,151 17,711,652
Income Before Contributions and Transfers (7,418,817) (7,799,999) (10,124,988) (5,940,765) (7,720,853) (11,600,405) (5,920,280) (11,542,231) (3,283,205) 7,653,671
Customer Contributions** 15,945,915 14,970,637 13,938,421 6,793,040 5,018,092 8,888,663 8,001,147 10,486,067 6,769,623 11,991,752
Contributed Sewer Lines 3,521,704 1,444,420 1,231,022 1,840,259 533,616 792,011 939,628 1,462,316 794,218 1,774,168
Capital Contributions - Connection Fees 8,917,658 9,259,160 5,025,493 7,078,635 3,515,804 5,724,833 6,091,529 8,224,517 6,673,298 8,543,758
CHANGE IN NET POSITION 20,966,460 17,874,218 10,069,948 9,771,169 1,346,659 3,805,102 9,112,024 8,630,669 10,953,934 29,963,349
Total Net Position - Beginning 562,769,417 583,735,877 601,610,095 611,680,043 621,451,212 622,797,871 626,602,973 635,714,997 644,345,666 563,607,078
Prior Period Adjustment - GASB 68 and 71 - - - - - - - - (91,692,522)-
Total Net Position - Ending $583,735,877 $601,610,095 $611,680,043 $621,451,212 $622,797,871 $626,602,973 $635,714,997 $644,345,666 $563,607,078 $593,570,427
Statement of Net Position 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
Investments in Capital Assets, Net of Related Debt $513,580,658 $531,119,639 $552,165,498 $531,324,187 $541,613,208 $549,462,506 $559,523,642 $568,006,023 $573,175,094 $581,844,903
Restricted for Debt Service 3,216,163 3,185,416 3,163,956 4,565,970 4,612,103 4,663,601 4,730,837 4,809,248 4,288,008 4,363,251
Unrestricted 66,939,056 67,305,040 56,350,589 85,561,055 76,572,560 72,476,866 71,460,518 71,530,395 (13,856,024) 7,362,273
Total Net Position $583,735,877 $601,610,095 $611,680,043 $621,451,212 $622,797,871 $626,602,973 $635,714,997 $644,345,666 $563,607,078 $593,570,427
* 2009-2010 property taxes includes Prop 1A loan receivable revenue and offset of $985,916. The revenue is offset by the provision for losses categorized in other.
** Classification reclassed 2010-11, prior years reclassed for consistency. Previously included in Non-Operating. Includes capital cost contributions from the City of Concord and customer contributions (SSC).
Source: Central Contra Costa Sanitary District Audited Financial Statements
Last Ten Fiscal Years
S-1
Fiscal Sewer Service City of Other Service Miscellaneous Total
Year Charges*Concord Charges Charges Operating
2006-2007 $35,057,668 $9,043,215 $793,395 $863,843 $45,758,121
2007-2008 40,207,157 8,206,860 869,589 595,980 49,879,586
2008-2009 43,087,454 8,755,857 872,978 667,855 53,384,144
2009-2010 48,692,520 8,664,668 824,022 650,876 58,832,086
2010-2011 49,095,870 9,224,952 913,017 662,721 59,896,560
2011-2012 49,123,848 10,647,389 915,485 929,917 61,616,639
2012-2013 56,770,984 10,483,421 1,076,401 751,880 69,082,686
2013-2014 60,796,421 11,625,864 1,035,134 544,589 74,002,008
2014-2015 70,023,512 12,892,945 1,006,197 593,780 84,516,434
2015-2016 72,233,903 13,913,960 963,014 623,659 87,734,536
Fiscal Property Customer Connections All Total Non-Operating
Year Taxes *1 Contributions *2 & Other Fees *3 Interest Other & Contributions
2006-2007 $11,762,731 $19,467,619 $10,532,966 $3,257,773 $1,316,383 $46,337,472
2007-2008 12,254,168 16,415,057 10,594,320 2,527,621 1,243,817 43,034,983
2008-2009 12,539,375 15,169,443 6,119,249 1,033,095 639,523 35,500,685
2009-2010 12,260,123 8,633,299 7,854,983 570,024 998,211 30,316,640
2010-2011 12,213,624 5,551,708 4,411,629 673,990 - 22,850,951
2011-2012 12,047,169 9,680,674 6,628,643 294,938 931,660 29,583,084
2012-2013 13,010,477 8,940,775 7,261,338 405,474 951,100 30,569,164
2013-2014 13,093,841 11,948,383 9,799,768 359,288 932,464 36,133,744
2014-2015 14,083,331 7,563,841 8,517,240 318,475 1,828,530 32,311,417
2015-2016 14,835,167 13,765,920 11,090,481 562,308 1,195,095 41,448,971
* Sewer Service Charge (SSC) represents the Running Expense Fund portion of SSC County collections along with District direct billings and counter collections.
contributed sewer lines beginning in 2000-2001, due to changes in GASB 33 reporting requirements.
*3 Includes connection fees, non-operating permit, inspection, and other fees.
Source: Central Contra Costa Sanitary District Audited Financial Statements
Operating Revenue
Non-Operating Revenue
*2 Customer Contributions include the portion of SSC that is allocated to Sewer Construction Fund, City of Concord reimbursement of capital costs, and developer
*1 2009-2010 property taxes include Prop 1A loan receivable revenue of $985,916.
$-
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
$140,000,000
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016Dollars
Fiscal Year
Central Contra Costa Sanitary District
Revenue By Type
Last Ten Fiscal Years
Operating Revenue Non-Operating Revenue
S-2
Fiscal Salaries Chemicals, Utilities Professional & Hauling, Disposal, Self-Insurance Depreciation Pension All Total Operating Non-Operating
Year and Benefits & Supplies Outside Services Repairs & Maintenance Expense*Other Expenses Expenses **
2006-2007 $34,678,665 $8,759,490 $2,298,712 $4,105,082 $519,284 $17,714,714 - $1,444,082 $69,520,029 $1,609,104
2007-2008 37,312,472 8,952,840 2,613,658 3,863,555 916,639 18,615,747 - 1,247,298 73,522,209 1,518,142
2008-2009 39,440,034 9,368,755 2,832,001 3,938,129 958,906 19,417,941 - 1,437,429 77,393,195 1,421,686
2009-2010 39,986,763 7,973,992 2,129,552 3,808,635 746,612 20,969,429 - 1,223,191 76,838,174 2,539,383
2010-2011 41,705,131 7,609,127 2,425,615 3,916,789 1,003,115 20,580,061 - 1,575,902 78,815,740 2,585,112
2011-2012 45,562,430 8,121,809 4,099,876 4,077,741 810,849 21,190,059 - 1,612,482 85,475,246 1,919,375
2012-2013 49,811,218 7,401,103 2,836,638 4,239,421 2,380,466 21,596,266 - 472,630 88,737,742 1,802,084
2013-2014 58,954,453 8,063,310 3,995,861 4,041,356 858,738 21,892,545 - 1,702,131 99,508,394 1,996,689
2014-2015 66,104,630 7,466,490 3,322,881 4,758,260 1,146,381 22,740,942 (3,012,757) 1,823,963 104,350,790 1,523,127
2015-2016 63,988,158 7,304,619 4,196,302 5,780,533 1,572,486 22,885,030 (9,778,389) 1,843,778 97,792,517 1,427,641
Informational - not graphed
* 2014-15 pension expense is a result of the implementation of GASB 68 & 71.
** 2009-2010 non-operating expenses includes Prop 1A loan receivable revenue offset of $985,916.
Source: Central Contra Costa Sanitary District Audited Financial Statements
OPERATING EXPENSES
$(20,000,000)
$(10,000,000)
$-
$10,000,000
$20,000,000
$30,000,000
$40,000,000
$50,000,000
$60,000,000
$70,000,000
$80,000,000
$90,000,000
$100,000,000
$110,000,000
2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016Dollars
Fiscal Year
Central Contra Costa Sanitary District
Operating Expenses by Type
Last Ten Fiscal Years
Salaries and Benefits Chemicals, Utilities & Supplies Professional & Outside Services Hauling, Disposal, Repairs & Maintenance
Self-Insurance Depreciation Pension Expense*All Other
S-3
Facility
Fiscal Year Operations Capital Total Capacity Fee *2
2006-2007 $213 $76 $289 $4,263
2007-2008 242 58 300 4,524
2008-2009 260 51 311 4,923
2009-2010 292 19 311 5,298
2010-2011 300 11 311 5,451
2011-2012 302 39 341 5,465
2012-2013 344 27 371 5,797
2013-2014 365 40 405 5,930
2014-2015 416 23 439 5,995
2015-2016 422 49 471 6,005
Pump
Fiscal Year Operations Capital Total Zone Fee *3
2006-2007 $213 $76 $289 $1,404
2007-2008 242 58 300 1,466
2008-2009 260 51 311 1,586
2009-2010 292 19 311 1,651
2010-2011 300 11 311 1,641
2011-2012 302 39 341 1,606
2012-2013 344 27 371 1,625
2013-2014 365 40 405 1,587
2014-2015 416 23 439 1,585
2015-2016 415 48 463 1,650
*1 All residential accounts paid a flat annual sewer service charge shown above per household through 2014-15. In 2015-16, as a result of a cost of service study, the District
changed to a two tier single family and multi family rate structure. 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
Central Contra Costa Sanitary District
Major Revenue Base and Rates
Historical and Current Fees
Last Ten Fiscal Years
Multi-Family Annual Sewer Service Charge (SSC) *1
Single Family Annual Sewer Service Charge (SSC) *1
S-4
Fiscal Year Local Secured Unsecured Total
2006-2007 $61,409,513,246 $1,533,076,135 $62,942,589,381 10.3%
2007-2008 66,416,736,187 1,583,187,663 67,999,923,850 8.0%
2008-2009 68,888,723,534 1,738,606,038 70,627,329,572 3.9%
2009-2010 68,640,287,188 1,723,710,536 70,363,997,724 -0.4%
2010-2011 67,889,370,916 1,647,537,385 69,536,908,301 -1.2%
2011-2012 67,486,938,247 1,591,574,852 69,078,513,099 -0.7%
2012-2013 67,538,246,870 1,604,518,295 69,142,765,165 0.1%
2013-2014 74,400,356,922 1,742,364,655 76,142,721,577 10.1%
2014-2015 80,431,132,956 1,739,342,301 82,170,475,257 7.9%
2015-2016 86,701,930,276 1,645,712,628 88,347,642,904 7.5%
Property Tax*Sewer Service Charges*
Fiscal Year Levied & Collected Levied & Collected
2006-2007 $11,860,961 144.2%$46,694,671 5.5%
2007-2008 12,092,637 2.0%48,883,932 4.7%
2008-2009 12,492,502 3.3%50,743,258 3.8%
2009-2010 11,253,233 **-9.9%50,896,210 0.3%
2010-2011 12,171,725 8.2%50,196,629 -1.4%
2011-2012 12,032,525 -1.1%54,586,208 8.7%
2012-2013 13,185,988 ***9.6%60,068,807 10.0%
2013-2014 13,108,176 -0.6%66,604,323 10.9%
2014-2015 14,195,300 8.3%72,622,738 9.0%
2015-2016 15,323,818 7.9%78,930,977 8.7%
* General County taxes collected are the same as the amount levied since the County participates in California's alternative method of
apportionment called the Teeter Plan. The Teeter Plan as provided in Section 4701 et seq. of the State Revenue and Taxation Code,
establishes a mechanism for the County to advance the full amount of property tax and other levies to taxing agencies based on the
tax levy, rather than on the basis of actual tax collections. Although this system is a simpler method to administer, the County assumes
the risk of delinquencies. The County in return retains the penalties and accrued interest thereon.
** Actual amount received from the County. Net of Prop 1A loan to state of $985,916.
*** Includes repayment of Prop 1A loan in June, 2013. The repayment amount includes $985,916 of principal and $65,545 of interest
for a total of $1,051,461.
Source: Contra Costa County Auditor-Controller's Office
% Change
Last Ten Fiscal Years
Central Contra Costa Sanitary District
Assessed and Estimated Actual Valuation of Taxable Property
Last Ten Fiscal Years
Property Tax and Sewer Service Charge Fees Levied and Collected
% Change
% Change
S-5
Percentage of Percentage of Percentage of Percentage of Percentage of
Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating
Customer Revenue Rank Revenue Revenue Rank Revenue Revenue Rank Revenue Revenue Rank Revenue Revenue Rank Revenue
City of Concord 1.$9,043,215 1 19.76% $8,206,860 1 16.45% $8,755,857 1 16.40% $8,664,668 1 14.73% $9,224,952 1 15.40%
Contra Costa County General Services 3.322,351 2 0.70% 316,854 3 0.64% 320,866 3 0.60% 305,880 2 0.52% 301,430 2 0.50%
First Walnut Creek Mutual 274,550 3 0.60% 285,000 4 0.57% 295,450 4 0.55% 295,450 3 0.50% 295,450 3 0.49%
Park Regency Apartments 257,788 4 0.56% 267,600 5 0.54% 277,412 5 0.52% 277,412 4 0.47% 277,412 4 0.46%
Second Walnut Creek Mutual Apts 216,750 5 0.47% 225,000 6 0.45% 233,250 6 0.44% 233,250 5 0.40% 233,250 5 0.39%
Sun Valley Mall 176,293 6 0.39% 183,380 8 0.37% 190,734 7 0.36% 197,566 6 0.34% 193,957 6 0.32%
Willows Shopping Center 3.128,303 7 0.28% - - - - - - - -
St. Mary's College Contract 127,355 8 0.28% 136,016 9 0.27% 126,222 8 0.24% - - - -
John Muir Health 3.121,613 9 0.27% 223,775 7 0.45% 125,292 9 0.23% - - - -
Bay Landing Apartments 104,040 10 0.23% - - - - 111,960 10 0.19% - -
Chevron Offices & Office Park 2.--340,389 2 0.68%363,739 2 0.68%165,561 7 0.28%--
Bay Landing Apartments --------111,960 8 0.19%
Archstone Apartments --------108,850 9-10 0.18%
Kaiser Foundation Hospital 3.--118,809 10 0.24%--136,753 8 0.23%--
Branch Creek Vista Apartmenst ----124,400 10 0.23%124,400 9 0.21%124,400 7 0.21%
Muirland @ Windemere Apartments --------108,850 9-10 0.18%
Total $10,772,258 23.54% $10,303,683 20.66% $10,813,222 20.26% $10,512,900 17.87% $10,980,511 18.33%
Percentage of Percentage of Percentage of Percentage of Percentage of
Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating
Customer Revenue Rank Revenue Revenue Rank Revenue Revenue Rank Revenue Revenue Rank Revenue Revenue Rank Revenue
City of Concord 1.10,647,389$ 1 17.28% 10,483,421$ 1 15.18% 11,625,864$ 1 15.71% 12,892,945$ 1 15.25% 13,913,960$ 1 15.86%
Contra Costa County General Services 3.292,384 4 0.47% 321,803 4 0.47% 419,590 2 0.57% 451,567 2 0.53% 638,608 2 0.73%
First Walnut Creek Mutual 323,950 2 0.53% 352,450 2 0.51% 384,750 3 0.52% 417,050 3 0.49% 439,850 3 0.50%
Park Regency Apartments 304,172 3 0.49% 330,932 3 0.48% 361,260 4 0.49% 391,588 4 0.46% 412,996 4 0.47%
Second Walnut Creek Mutual Apts 255,750 5 0.42% 278,250 5 0.40% 303,750 5 0.41% 329,250 5 0.39% 347,250 5 0.40%
Sun Valley Mall 203,037 6 0.33% 174,038 7 0.25% 211,866 6 0.29% 299,697 6 0.35% 283,613 6 0.32%
John Muir Health 3.- - 176,381 6 0.26% 148,374 8 0.20% - - 218,919 7 0.25%
San Ramon Unified School District - - - - ----215,044 8 0.25%
Willows Shopping Center 3.----145,091 10 0.20%--206,210 9 0.24%
Kaiser Foundation Hospital 3.------158,848 8 0.19%186,232 10 0.21%
Branch Creek Vista Apartments 136,400 7 0.22%148,400 9 0.21%162,000 7 0.22%175,600 7 0.21%--
Bay Landing Apartments 122,760 8 0.20%133,560 10 0.19%145,800 9 0.20%158,040 9 0.19%--
Archstone Apartments 119,350 10 0.19%----153,650 10 0.18%--
Muirland @ Windemere Apartments 119,350 10 0.19%----153,650 10 0.18%--
St. Mary's College Contract 119,407 9 0.19%158,480 8 0.23%-----
Total $12,643,949 20.52% $12,557,715 18.18% 13,908,345$18.79% 15,581,885$18.44% 16,862,681$19.22%
1. Contract with the City of Concord to treat and dispose of wastewater for Concord and Clayton.
2. Charges included irrigation in years 07-08 and 08-09.
3. Kaiser, John Muir Health, Willows Shopping Center, and County hospital are permitted industries.
Source: Central Contra Costa Sanitary District Environmental Services Division
2010-2011
2012-20132011-2012
Central Contra Costa Sanitary District
Sewer Service Charge
List Of Ten Largest Customers
Ten Fiscal Years
2007-2008 2008-20092006-2007
2015-20162013-2014 2014-2015
2009-2010
S-6
Fiscal Total Interest &Total Interest &Total Revenue Water Rec.Total Debt
Year Principal Debt Service Principal Amortization Debt Service Principal Amortization Debt Service Bonds Loan Outstanding
2006-2007 $2,135,000 $1,559,500 $3,694,500 $137,515 $49,604 $187,119 $2,272,515 $1,609,104 $3,881,619 $29,750,000 $1,770,340 $31,520,340
2007-2008 2,210,000 1,472,113 3,682,113 141,090 46,029 187,119 2,351,090 1,518,142 3,869,232 27,540,000 1,629,250 29,169,250
2008-2009 2,300,000 1,379,326 3,679,326 144,759 42,360 187,119 2,444,759 1,421,686 3,866,445 25,240,000 1,484,491 26,724,491
2009-2010 2,390,000 1,514,871 3,904,871 148,523 38,596 187,119 2,538,523 1,553,467 4,091,990 54,125,000 1,335,968 55,460,968
2010-2011 3,460,000 2,027,168 5,487,168 152,385 34,734 187,119 3,612,385 2,061,903 5,674,288 50,665,000 1,183,583 51,848,583
2011-2012 3,465,000 1,888,601 5,353,601 156,346 30,773 187,119 3,621,346 1,919,375 5,540,721 47,200,000 1,027,237 48,227,237
2012-2013 3,605,000 1,775,376 5,380,376 160,411 26,708 187,119 3,765,411 1,802,084 5,567,495 43,595,000 866,826 44,461,826
2013-2014 3,720,000 1,974,151 <a>5,694,151 164,581 22,537 187,118 3,884,581 1,996,688 5,881,269 39,875,000 702,245 40,577,245
2014-2015 3,865,000 1,504,939 5,369,939 168,860 18,258 187,118 4,033,860 1,523,197 5,557,057 36,010,000 533,385 36,543,385
2015-2016 2,210,000 1,413,772 3,623,772 173,251 13,869 187,120 2,383,251 1,427,641 3,810,892 33,800,000 360,134 34,160,134
Total Total Operating Non-Operating Debt Service Capital Debt Service Annual Debt Annual Debt Total Debt
Fiscal Debt Expenses less Revenue &Net Coverage Improvement Adjusted Net Coverage Service to Service per Outstanding
Year Service Depreciation *1 Contributions Revenue *2 (Net Revenue) *3 Fees/Concord Revenue *4 (Adj. Net Revenue) *5 Operating Exp.Customer Per Customer
2006-2007 $3,881,619 $45,758,121 $51,805,315 $46,337,472 $40,290,278 10.38 $12,353,170 $27,937,108 7.20 7.49%23.58 191.51
2007-2008 3,869,232 49,879,586 54,906,462 43,034,983 38,008,107 9.82 14,595,433 23,412,674 6.05 7.05%23.29 175.56
2008-2009 3,866,445 53,384,144 57,975,254 35,500,685 30,909,575 7.99 10,511,351 20,398,224 5.28 6.67%23.33 161.26
2009-2010 4,091,990 58,832,086 55,868,745 30,316,640 33,279,981 8.13 10,707,584 22,572,397 5.52 7.32%24.47 331.68
2010-2011 5,674,288 59,896,560 58,235,679 22,850,951 24,511,832 4.32 6,731,994 17,779,838 3.13 9.74%34.67 316.81
2011-2012 5,540,721 61,616,639 64,285,187 29,583,084 26,914,536 4.86 8,266,521 18,648,015 3.37 8.62%34.06 296.47
2012-2013 5,567,495 69,082,686 67,141,476 30,569,164 32,510,374 5.84 9,708,300 22,802,074 4.10 8.29%33.78 269.73
2013-2014 5,881,269 74,002,008 77,615,849 36,133,744 32,519,903 5.53 12,045,375 20,474,528 3.48 7.58%35.31 243.60
2014-2015 5,557,057 84,516,434 81,609,848 32,311,417 35,218,003 6.34 9,570,789 25,647,214 4.62 6.81%33.01 217.10
2015-2016 3,810,892 87,734,536 74,907,487 41,448,971 54,276,020 14.24 12,215,650 42,060,370 11.04 5.09%22.28 199.74
Note: Details regarding the District's outstanding debt can be found in the notes to the financial statements.
<a> GASB Statement No. 65 required that bond issuance costs of $315,287, previously being amoritized annually, be expensed in FY 2013-14. Debt Restrictions:
*1 2014-15 includes implementaion of pension expense reporting changes for GASB 68 & 71.Revenue Pledge & Covenant: The District pledges
*2 Net Revenue = Operating Revenue, less Total Operating Expenses less Depreciation, plus Non-Operating Revenue & Contributions.Property Tax Revenue along with its ability to raise Sewer
*3 This ratio must be above 1.00 to meet the Debt Rate Covenant (Net Revenue/Total Debt Service).Service Charge (SSC) rates. Debt Coverage requirements
*4 Adjusted Net Revenue = Net Revenue less Capital Improvement Fees (Connection Fees) and City of Concord Capital Charges.are discussed in the footnotes to the left.
*5 This ratio must be above 1.25 to meet the Debt Rate Covenant (Adjusted Net Revenue/Total Debt Service).
Operating
Revenue
Summary Of Debt Service
Last Ten Fiscal Years
Summary By Type Of Debt
Debt Ratios
Revenue Bonds (2009, 2002 & 1998)Water Reclamation Loan Total Debt Service Annual Expense
Debt Service Coverage Summary
TOTAL DEBT SERVICE OUTSTANDING
Interest &
Amortization
$0
$1,000,000
$2,000,000
$3,000,000
$4,000,000
$5,000,000
$6,000,000
Dollars Debt Service Paid Each Fiscal Year
$0
$15,000,000
$30,000,000
$45,000,000
$60,000,000
Dollars Outstanding Debt Each Fiscal Year
In 2009, the District issued Bonds which retired the 2002 and 1998 bond
debt and gained $30 million in net proceeds dedicated to fund Capital Improvements.
S-7
Inside District Concord/Total %
As Of January 1 Boundaries Clayton Served Change
2007 314,400 134,300 448,700 0.8%
2008 317,340 134,560 451,900 0.7%
2009 322,200 134,000 456,200 1.0%
2010 326,600 135,400 462,000 1.3%
2011 321,800 133,600 455,400 -1.4%
2012 326,900 134,200 461,100 1.3%
2013 332,600 134,900 467,500 1.4%
2014 335,009 135,856 470,865 0.7%
2015 339,029 137,357 476,386 1.2%
2016 340,667 140,916 481,583 1.1%
Source: Central Contra Costa Sanitary District Environmental Services Division
Estimated % of Total County Estimated % of Total County
Employers Employees Rank Employment Employees Rank Employment
Chevron Corporation 7,100 1 1.30% 10,000 1 1.92%
Bayer Healthcare Pharmaceuticals - - 500-999 T-2 0.14%
Bio-Rad Laboratories 1,100 8 0.20% 500-999 T-2 0.14%
C&H Sugar Co., Inc. - - 500-999 T-2 0.14%
Conoco Phillips Rodeo Refinery - - 500-999 T-2 0.14%
Macy's - - 500-999 T-2 0.14%
Nordstrom - - 500-999 T-2 0.14%
Safeway Inc. - - 500-999 T-2 0.14%
Shell Oil Products - - 500-999 T-2 0.14%
Tesoro Golden Eagle Refinery - - 500-999 T-2 0.14%
Kaiser Permanente 5,000 2 1.00% - -
AT&T 3,150 3 0.60% - -
Kaiser Foundation Hospital 2,300 4 0.50% - -
John Muir Medical Center 1,900 5 0.40% - -
John Muir/Mt. Diablo Medical Center 1,500 6 0.30% - -
24-Hour Fitness 1,200 7 0.20% - -
Doctors Medical Center 1,000 9 0.20% - -
Uss Posco Industries 975 10 0.20%
All Others 489,925 95.10% 504,950 96.82%
Total 515,150 100.0% 521,700 100.0%
Source: * County of Contra Costa, California, Comprehensive Annual Financial Report for 6/30/15, Statistical Section, principal employers excludes government employers.
List of Ten Largest Employers in Contra Costa County
Last Year and Eight Years Ago*
2007*2015*
Central Contra Costa Sanitary District
Demographic and Economic Data
Population Served
Last Ten Calendar Years
S-8
Fiscal Year Per Capita
Ended Personal Personal
June 30 Population* Income*Income*
2006 1,000,834 58,545,550,000 58,497 4.5%
2007 1,009,152 59,823,135,000 59,281 4.7%
2008 1,023,344 61,470,268,000 60,068 6.3%
2009 1,037,890 56,442,667,000 54,382 10.8%
2010 1,052,921 56,594,058,000 53,750 11.3%
2011 1,066,636 61,156,431,000 57,336 10.4%
2012 1,079,290 66,344,299,000 61,470 9.0%
2013 1,095,959 66,607,757,000 60,776 7.4%
2014 1,111,710 69,526,509,000 62,540 6.2%
2015 1,126,745 74,756,916,000 66,348 5.0%
N/A - Information not available at this time.
* U.S. Department of Commerce, Bureau of Economic Analysis. Estimates for 2010-2015 reflect county population estimates available as of March 2016.
** State of California, Employment Development Department (EDD), annual calendar figure.
Unemployment
Rate**
Average Annual
Central Contra Costa Sanitary District
Demographic and Economic Statistics
Contra Costa County
Last Ten Fiscal Years
S-9