HomeMy WebLinkAbout04. Approve the final Comprehensive Annual Financial Report (CAFR) as of 06-30-17 for submission to the Government Finance Officers AssociationPage 1 of 98
Item 4.
' CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
MEETING DATE: JANUARY4, 2018
SUBJECT: APPROVE THE FINAL COMPREHENSIVE ANNUAL FINANCIAL
REPORTAS OF JUNE 30, 2017 FOR SUBMISSION TO THE GOVERNMENT
FINANCE OFFICERS ASSOCIATION. APPROVAL RECOMMENDED BY
FINANCE COMMITTEE.
SUBMITTED BY: INITIATING DEPARTMENT:
THEAVASSALLO, FINANCE MANAGER ADMINISTRATION -FINANCE
REVIEWED BY: PHILIP R. LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION
ANN SASAKI, DEPUTY GENERAL MANAGER
Roger S. Bailey
General Manager
ISSUE
Board approval is requested to submit a Comprehensive Annual Financial Report (CAFR) to the
Government Finance Officers Association of United States and Canada (GFOA) for review and potential
recognition in the form of a Certificate of Achievement for Excellence in Financial Reporting.
BACKGROUND
The GFOA is a professional association of state/provincial and local finance officers in the United States
and Canada, and has served the public finance profession since 1906. The GFOA established the
Certificate of Achievement for Excellence in Financial Reporting Program in 1945 to encourage and
assist state and local governments to go beyond the minimum requirements of generally accepted
accounting principles (GAAP) and to prepare CAFR that provide transparency and full disclosure, and
then recognize individual governments that succeed in achieving that goal.
The District was awarded a Certificate of Achievement by the GFOA for the CAFR submitted for Fiscal
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Year 2015-16, and in the years since 2000. The Certificate of Achievement is the highest form of
recognition for excellence instate and local government financial reporting. In order to be awarded a
Certificate of Achievement, a government agency must publish an easily readable report in a prescribed
format report that complies with GAAP, Governmental Accounting Standards Board (GASB) and GFOA
program policy and requirements. The CAFR includes ten years of District historical, financial, and
statistical data. The CAFR provides a concise document for internal management use, as well as external
use with other agencies, and is posted on the District's website for the general public. A Certificate of
Achievement is valid for a period of one year.
The Finance Division has prepared the District's CAFR as of June 30, 2017. It is believed that the
current CAFR continues to meet the Certificate of Achievement Program requirements and staff is asking
for Board approval to submit it to the GFOA to determine its eligibility for another certificate.
A draft of the June 30, 2017 CAFR was provided to the full Board as part of the agenda packet for the
December 19, 2017 Finance Committee meeting. The Committee recommend minor additions which
were included in the final document. The final CAFR is included in the agenda packet under separate
cover.
Central San also intends to prepare its FY 2018-19 Budget to meet the requirements to achieve the
GFOA Distinguished Budget Award.
ALT ERNAT IVES/CONSIDERAT IONS
None.
FINANCIAL IMPACTS
There is an application fee for submission of a CAFR for review based on total revenues of the entity
applying. Based on this sliding fee schedule, the District's fee is $580.
COMMUNITY OUTREACH
COMMITTEE RECOMMENDATION
On December 19, 2017, the Finance Committee reviewed the draft June 30, 2017 CAFR and
recommended Board approval at the January 4, 2018 Board meeting.
RECOMMENDED BOARD ACTION
Review and approve the June 30, 2017 CAFR for submission to the GFOA.
Strategic Plan Tie -In
GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility
Strategy 2 - Manage Costs
ATTACHMENTS:
1. Comprehensive Annual Financial Report
January 4, 2018 Regular Board Meeting Agenda Packet - Page 53 of 235
Contra Costa Spnitp�
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5019 IMHOFF PLACE, MARTINEZ, CA 94553
MEb�.OMPREHENSIVE
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Page 4 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
MARTINEZ, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEARS ENDED JUNE 30, 2017 AND 2016
Prepared By:
Finance & Accounting Division
January 4, 2018 Regular Board Meeting Agenda Packet - Page 55 of 235
Page 5 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
Comprehensive Annual Financial Report
Table of Contents
For the Years Ended June 30, 2017 and 2016
INTRODUCTORY SECTION:
Letter of Transmittal
Boardof Directors................................................................................................vii
MissionStatement................................................................................................ ix
OrganizationChart............................................................................................... x
Mapof Service Area.............................................................................................A
Certificate of Achievement................................................................................... xii
FINANCIAL SECTION:
Independent Auditors' Report............................................................................... 1
Management's Discussion and Analysis..............................................................
3
Basic Financial Statements
Statements of Net Position.................................................................
10-11
Statements of Revenues, Expenses and Changes in Net Position..........
13
Statements of Cash Flows..................................................................
14-15
Statements of Fiduciary Net Position — Fiduciary Fund ...........................
16
Statements of Changes in Fiduciary Net Position - Fiduciary Fund ........
17
Notes to Financial Statements - The accompanying notes are an
integral part of the basic financial statements ....................................
19-52
Required Supplementary Information
Cost -Sharing Multiple Employer Defined Benefit Retirement Plan -
Schedule of Changes in the Net Pension Liability and Related Ratios. 54
Schedule of Contributions..................................................................... 55
Post -Retirement Health Care Defined Benefit Plan —
Schedule of Changes in the Net OPEB Liability and Related Ratios .... 56
Schedule of Contributions..................................................................... 57
Schedule of Funding Progress — Last Three Valuations ....................... 58
Supplementary Information
Combining Schedule of Statement of Net Position .................................. 60
Combining Schedule of Statement of Revenues, Expenses and
Changes in Net Position - Enterprise Sub -Funds .................................. 61
Schedule of Running Expenses - Comparison of Budget and Actual
Expenses by Department....................................................................... 62
Running Expense - Schedule of Supplemental Net Position Analysis ..... 63
STATISTICAL SECTION (Unaudited):
Changes in Net Position and Statement of Net Position -
LastTen Fiscal Years..................................................................................... S-1
Revenue by Type - Last Ten Fiscal Years.........................................................S-2
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Operating Expenses by Type - Last Ten Fiscal Years.......................................S-3
Major Revenue Base and Rates - Historical and Current Fees -
LastTen Fiscal Years.....................................................................................
S-4
Assessed and Estimated Actual Valuation of Taxable Property -
LastTen Fiscal Years.....................................................................................
S-5
Property Tax and Sewer Service Charge Fees Levied and Collected -
LastTen Fiscal Years.....................................................................................
S-5
Sewer Service Charge - List of Ten Largest Customers -
LastTen Fiscal Years.....................................................................................
S-6
Payments Under the Concord Agreement -
LastTen Fiscal Years.....................................................................................
S-7
Active Service Accounts and Fiscal Year Billings -
Sewer Service Charges..................................................................................S-7
Summary of Debt Service - Type, Debt Service Coverage, Debt Ratio -
LastTen Fiscal Years.....................................................................................
S-8
Demographic and Economic Data - Population Served -
LastTen Calendar Years................................................................................S-9
List of Nine Largest Employers in Contra Costa County -
Last Year and Eight Years Ago......................................................................S-9
Demographic and Economic Statistics - Contra Costa County -
LastTen Fiscal Years...................................................................................
S-10
Full-time Equivalent Positions Filled by Department -
Last Ten Fiscal Years...................................................................................
S-11
Number of Retirees and Surviving Spouses —
Last Ten Fiscal Years...................................................................................
S-11
Capital Asset and Operating Statistics —
Last Ten Calendar or Fiscal Years...............................................................S-12
Miscellaneous Statistics..................................................................................S-12
January 4, 2018 Regular Board Meeting Agenda Packet - Page 57 of 235
'�JTRODUCTI
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1) Central Contra Posta Sanitary District
December 11, 2017
Central Contra Costa Sanitary District Customers and
The Honorable Board of Directors,
Martinez, California:
State law requires that every general-purpose local government publish within six months
of the close of each fiscal year a complete set of audited financial statements. This report
is published to fulfill that requirement for the fiscal year ended June 30, 2017.
Management of Central Contra Costa Sanitary District (the District) assumes full
responsibility for the completeness and reliability of the information in these financial
statements, based upon a comprehensive system of internal controls that is established
for this purpose. Because the cost of internal control should not exceed anticipated
benefits, the objective is to provide reasonable, rather than absolute, assurance that the
financial statements are free of any material misstatements.
Maze & Associates has issued an unmodified ("clean") opinion on the District's financial
statements for the year ended June 30, 2017. The independent auditor's report is located
at the front of the financial section of this report.
Management's Discussion and Analysis report (MD&A) immediately follows the
independent auditor's report and provides a narrative introduction, overview, and analysis
of the basic financial statements. The MD&A complements this letter of transmittal and
should be read in conjunction with it.
PROFILE OF THE GOVERNMENT
History and Services Provided
The District was established in 1946 under the Sanitary District Act of 1923 and is located
about 30 miles east of San Francisco. The District builds, operates and maintains the
facilities required to collect and clean wastewater for approximately 345,000 residents of
Danville, Lafayette, Martinez, Moraga, Orinda, Pleasant Hill, San Ramon, Walnut Creek
and some of the unincorporated communities within central Contra Costa County. The
District also cleans wastewater for 140,000 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 conducting long-range financial planning and managing costs. The District has
® Recycled Paper
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approximately 1,500 miles of sewer pipeline, ranging in size from 4 inches to 102 inches
in diameter, and 19 sewage -pumping stations (three of which are privately owned) in the
District's sewage collection system. The District is the sole provider of wastewater service
within the District limits (see map of service area). Residents make up the largest
segment of the District's customer base representing approximately 81% of the Sewer
Service Charge revenue. The District's treatment capacity has grown from 4.5 million
gallons per day (mgd) in 1948 to 53.8 mgd currently. Bonds, state grants, federal grants,
and pay-as-you-go resources of the District have currently financed capital expenditures
and capacity expansions.
The District also operates an expanding Recycled Water Program that provides high-
quality recycled water for landscape irrigation at parks, school ballfields, and commercial
businesses near the District's treatment plant. Due to strong customer demand the
District maintained operation of its residential recycled water fill station, which allows
residential customers to obtain a maximum of 300 gallons of recycled water per trip for
use in hand watering lawns, landscaping, and gardens. The District is also pursuing new
recycled water projects to take advantage of the potential water supply that highly -treated
wastewater represents, and to expand recycled water availability to District customers,
and potentially, to put such water to beneficial use outside of the District's service territory
through water exchanges.
In addition to its wastewater responsibility, the District also operates and maintains a
permanent Household Hazardous Waste (HHW) Collection Facility in partnership with Mt.
View Sanitary District and other local governments. The HHW Collection Facility is
located adjacent to the District's wastewater treatment plant and seeks to keep pollutants
out of the sewer system, making this facility an important part of our overall Pollution
Prevention Program. Completing its twentieth year of operation, the HHW Facility
currently serves over 33,000 residential and small business customers annually, from
which over 2 million pounds of hazardous waste is collected and properly disposed of
each year. Another pollution prevention strategy of the District, is the Pharmaceutical
Collection Program, of which its thirteen collection sites collected over sixteen thousand
pounds of expired or unwanted medications. The District held a 20th anniversary
celebratory event for the facility in October 2017.
Organization, Accounting and Budgetary Controls
A five -member Board of Directors governs the District. Board members are elected on a
non-partisan basis and serve a four-year term. The Board appoints the General Manager,
who in accordance with policies established by the Board of Directors, manages District
affairs. The District employs 276, and has authorized 290, regular employees organized
in three departments led by Managers responsible for their budgets and expenses. The
three departments are: Administrative, Engineering, and Operations.
The District, by law, uses an enterprise fund to account for its operations and is run in a
manner similar to private industry. The District currently has one enterprise fund which is
comprised of four internal sub -funds:
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■ Running Expense - accounts for the general operations of the District. Substantially
all operating revenues and expenses are accounted for in this fund (also referred to
as Operations & Maintenance or O&M).
■ Sewer Construction - accounts for non-operating revenues that are to be used for
acquisition or construction of plant, property, and equipment (also referred to as the
Capital Fund).
■ Self -Insurance - accounts for interest earnings on cash balances in this sub -fund and
cash allocations from other funds, as well as costs of insurance premiums and claims
not covered by the District's insurance policies.
■ Debt Service — accounts for activity associated with the payment of the District's long
term bonds and loans.
Each year, the Board adopts the following four budgets: Operations and Maintenance,
Capital Improvement and Sewer Construction, Self -Insurance, and Debt -Service. The
Board Finance Committee reviews disbursements prior to each regular Board meeting,
and disbursements are then approved by the full Board. Monthly financial statements are
issued to management and the Board. A detailed mid -year and annual budget 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 in accordance with best practices.
ASSESSING THE DISTRICT'S ECONOMIC CONDITION
Local Economy and Outlook
According to the Legislative Analyst's Office (LAO), unemployment should continue to
remain around 4-5%, which many economists consider "full employment", for the next
several years. The state's revenues will be about $6.3 billion higher than the previous
fiscal year as a result of the healthy growth in personal income taxes. Productivity growth
however, has been weak in recent years and remains a challenge for the state as the
recent economic downturn has discouraged business investment and risk taking. This
could inhibit future growth of the economy in the next several years.
According to the UCLA Anderson forecast, the U.S. should continue to see slow but
steady growth, between 2-3%, while operating at full employment. The impacts of
hurricanes Harvey and Irma will lower growth slightly, but optimism for a growth inducing
tax reform and an infrastructure spending packages have been credited by some in
helping keep unemployment around or below the current 4.4%. Inflation is expected to
rise along as the economy operates at full employment, which could also lead to increases
in interest rates by roughly 25 basis points per quarter into 2019. The stock market
continues to reach record highs, however many economists predict stagnation in the near
future which would bring the price -to -earnings ratio closer to historical averages.
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 labor bargaining units have five-year contracts
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that expire in December 2017. Negotiations on successor agreements commenced
during fiscal year 2016-17 and have continued through December 2017. The existing
labor contract progressively reduced, and in fiscal year 2016-17 eliminated employee
retirement costs that were paid for by the District, while the District continues to pay the
employer share of retirement costs. Payment of the unfunded liability for pension and
other post employment benefits 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 and recent year budgets for the District to alleviate future fiscal
obligations 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 in recent years
maintained balanced revenue sources, adequate reserves, and minimal debt obligations.
The District reviews its rate and other charges annually, and adopted a two year rate
action in fiscal year 2016-17. The District can increase its sewer service charge rates
when needed to make up revenue shortfalls by providing public notice (as required by
Proposition 218) to all customers, holding a Public Hearing, and obtaining approval by
the Board of Directors. The District also maintains strong market access to obtain bond
financing, as needed, due to the District's AAA and Aa1 bond ratings. The District
anticipates that it will continue to meet its mission and goals, continue to provide excellent
customer service and responsible rates to its customers, and meet compliance
requirements given the current economic conditions.
Long -Term Financial Planning
District management analyzes and updates a 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 retain 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 unfunded actuarial liabilities for pension and other post
employment benefits (OPEB) are factored into the financial planning. The District
currently has an 80% funded ratio for the pension unfunded actuarial liability and a 53%
funded ratio for OPEB.
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. The District shortly after the close of fiscal year 2016-17
contributed $3.359 million to a new Section 115 pension trust to help potentially smooth
future pension contribution rates. Section 53646 of the California Government Code
governs our investment practices, and is reviewed annually by staff, legal counsel and
iv
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the Board. The Board receives monthly financial statements that include District
investment performance. The GASB 45 Trust and the Section 115 Pension Trusts are
governed by separate investment policies. Since 2008, the GASB 45 Trust funds are
invested in a moderate investment strategy. The new Section 115 pension trust funds
are invested accordingly to a moderately conservative strategy. The Board Finance
Committee reviews GASB 45 Trust and Section 115 Pension Trust quarterly financial
reports to monitor the District's investment performance.
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 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 19 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 12 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 was completed in FY 2016-17 and will be used
as a roadmap for the capital improvements for the next 20 years.
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, 2016. This was the seventeenth consecutive year that the District
has achieved this prestigious award. In order to be awarded a Certificate of Achievement,
V
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Page 13 of 98
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.
The District also had its Certificate of Excellence from the California Special Districts
Leadership Foundation renewed during September 2017. This award is achieved by
demonstrating the completion of essential governance transparency requirements, and
is renewed every two years.
This report could not have been accomplished without the dedication and commitment
provided by District staff. I would like to express my appreciation to the following
employees who assisted in its preparation:
■ The Finance and Accounting staff who compiled the information contained in this
document with a special thanks to Chris Thomas, Finance Administrator, Jamie King,
Accountant, and Amal Lyon, 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.
R
espectfully submitted,
Thea Vassallo
Finance Manager
Philip L6iber
Director of Finance & Administration
Vi
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CENTRAL CONTRA COSTA SANITARY DISTRICT
BOARD OF DIRECTORS
June 30, 2017
Paul H. Causey................................................. President
James A. Nejedly ............................... President Pro -Tem
Michael R. McGill ................................................ Member
Tad J. Pilecki...................................................... Member
David R. Williams ................................................ Member
Vii
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(THIS PAGE INTENTIONALLY LEFT BLANK)
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. Y ' Central Contra Costa
Sanitary District
VISION, MISSION,
VALUES
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
urOaltenges—
OUR MISSION
To protect public health and the environment
OUR VALUE S
Community
• Value water sector
partners
• Foster excellent
community relationships
• Be open, transparent
and accessible
• 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
• Inspire dedication and
top-quality results
�. -A
ix
January 4, 2018 Regular Board Meeting Agenda Packet - Page 67 of 235
CENTRAL CONTRA COSTA SANITARY DISTRICT
Organization Chart - Composite
Electorate
Board
Members
General
Manager
Secretary of the Director Deputy General Director
of
District Finance and Manager Engineering
&
Administration Technical Svcs.
Information Collection Capital Projects
System
Technology Operations Division
Plant Environmental &
Finance MaintenanceRegulatory
Id � Compliance
Purchasing & Planning &
Materials Plant Development
Services Operations Services
Communication Human
& Intergov. Resources
Relations
Risk
Management I x
January 4, 2018 Regular Board Meeting Agenda Packet - Page 68 of 235
Counsel for the
District
San
Pablo
Bay
ty
Hercules
0
Central Contra Costa Sanitary District
Map of Service Area
June 30, 2017
V
Benicia _
Suisun Bay
1❑
❑3 5
'Martinez
7
Concord
Page 18 of 98
Pleasant Hill
8 Walnut Creek
0❑9 14 0
10 11 12 Lafayette
13
Berkeley rR-.t Orinda
Morana
15
Oakla
�w
San
Francisco
Bay
Alamo
—_U Pittsburg
Clayton
San Ramon
16
N
\ 0 2
m
_ Miles
El Pumping Station
40 CCCSD's Headquarters Office Building, Privately Owned Pumping Station
Treatment Plant, and HHW Collection Facility
CCCSD's Collection System Operations
Department (sewer maintenance)
Wastewater collection and treatment and
HHW collection for 344,550 people
Wastewater treatment and HHW collection
for 139,650 residents in Concord and Clayton
by contract
HHW disposal services only
Antioch
CCCSD Pumping Stations
1.
Martinez
11.
Lower Orinda
2.
Fairview
12.
Bates Blvd. - Orinda
3.
Maltby
13.
Orinda Crossroads
4.
Clyde
14.
Via Roble
5.
Concord Industrial
15.
Moraga
6.
Buchanan Field North
16.
San Ramon
7.
Buchanan Field South
PRIVATELY OWNED:
8.
Sleepy Hollow
17.
Wagner Ranch
9.
Acacia
18.
Lower Wilder
10.
Flush Kleen
19.
Upper Wilder
January 4, 2018 Regular Board Meeting Agenda Packe! - Page 69 of 235
4
I
Page 19 of 98
xii
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uary 4, 2018 Regular Board Meeting Agenda Packet - Page 71
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t/A� M ACZTE
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
Central Contra Costa Sanitary District
Martinez, California
We have audited the accompanying financial statements of the business -type activities and the fiduciary fund of the
Central Contra Costa Sanitary District (District) as of and for the years ended June 30, 2017 and 2016, 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 respective net
position of the business -type activities and the fiduciary fund of the Central Contra Costa Sanitary District as of June
30, 2017 and 2016, and the respective changes in net position and cash flows, where applicable, for the years then
ended in accordance with accounting principles generally accepted in the United States of America.
T 925.930.0902
Accountancy Corporation r 925.930.0135
3478 Buskirk Avenue. Suite 215 a maZe0maM8WClateS.00m
Pleasant Hill, CA 94523 1 w mazeasseclates.com
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Emphasis of a Matter
Management adopted the provisions of Governmental Accounting Standards Board Statement No. 74 — Financial
Reporting for Post -employment Benefit Plans Other Than Pension Plans, which became effective during the year
ended June 30, 2017 and had material effects on the financial statements as discussed in Note 10.17. in the notes to
the financial statements.
The emphasis of this matter does not constitute a modification to our opinions.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that Management's Discussion and
Analysis and other Required Supplementary Information, as listed in the table of contents, 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 an opinion on the financial statements that collectively comprise
the District's financial statements as a whole. The Supplementary Information listed in the Table of Contents is
presented for purposes of additional analysis and is not a required part of the financial statements.
The Supplementary 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 auditing standards generally accepted in the United States of America. In our opinion,
the Supplementary Information is fairly stated in all material respects in relation to the 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.
3AA� k�
Pleasant Hill, California
November 16, 2017
January 4, 2018 Regular Board Meeting Agenda Packet - Page 73 of 235
Page 23 of 98
Jl Central Contra Costa Sanitary District
MANAGEMENT'S DISCUSSION AND ANALYSIS
This section of the Central Contra Costa Sanitary District's annual financial report presents an analysis
of the District's financial performance during the fiscal year ended June 30, 2017. This information is
presented in conjunction with the audited financial statements, which follow this report.
FINANCIAL HIGHLIGHTS
The District's 2016-17 financial highlights are listed below. These results are discussed in more detail
later in the report.
• The District's total ending net position increased by $33.1 million or 5.57% in 2016-17. This is
mainly due to increases in operating and non-operating revenues and capital contributions.
• Total revenues in 2016-17 increased by $2.4 million or 2.25%. The total Sewer Service Charge
(SSC) rate increased for single family homes by 6.79% to $503 and 5.18% for multi -family
homes to $487. Increased property values in the service area lead to an increase in property
taxes.
• Total 2016-17 expenses increased by $3.56 million or 3.59%. This is mainly due to an increase
in the pension expense adjustment.
• Capital Contributions increased in 2016-17 by $4.3 million or 19.10%. The increase is mainly
due to an increase in contributions from the City of Concord and a higher allocation of SSC to
customer contributions to capital costs.
• The District implemented GASB Statement No. 74 during the 2016-17 fiscal year which required
additional footnote disclosures and financial statements for the assets in the District's OPEB trust
account. The District will be required to report the total OPEB liability on their financial
statements in fiscal year 2017-18 with the implementation of GASB Statement No. 75.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report includes the Management's Discussion and Analysis report, the independent auditor's
report and the basic financial statements of the District. The financial statements also include notes that
explain information in the financial statements in more detail. This report also contains other
supplementary information in addition to the basic financial statements.
REOUIRED FINANCIAL STATEMENTS
The District's financial statements report information utilizing methods similar to those used by private
sector companies. These statements offer short and long-term financial information about the District's
activities.
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Statement of Net Position - reports the District's current financial resources (short-term
spendable resources) with capital assets, deferred outflows of resources, long-term obligations,
and deferred inflows of resources.
Statement of Revenues, Expenses and Changes in Net Position - reports the District's
operating and non-operating revenues by major source along with operating and non-operating
expenses and capital contributions.
Statement of Cash Flows - reports the District's cash flows from operating activities, non -
capital financing activities, capital and related financing activities, investing activities, and non-
cash activities.
STATEMENT OF NET POSITION
The following table shows the condensed statement of net position of the Central Contra Costa Sanitary
District for the past three fiscal years:
Table 1 - Condensed Statement of Net Position
% Increase
Fiscal Year Ended June 30 (Decrease)
FY 16-17 FY 16-17
vs. vs.
2016-17 2015-16 2014-15 FY 15-16 FY 14-15
Current Assets
$ 105,876,117
$ 95,584,553
$ 82,554,355
10.77%
28.25%
Capital Assets
632,452,631
616,005,037
609,718,479
2.67%
3.73%
Other Non-current Assets
10,057,548
7,580,512
7,832,901
32.68%
28.40%
Total Assets
748,386,296
719,170,102
700,105,735
4.06%
6.90%
Deferred Outflows of
Resources - Pension
Related
29,078,203
34,464,472
12,420,138
-15.63%
134.12%
Current Liabilities
13,720,331
10,986,379
10,029,487
24.88%
36.80%
Non -Current Liabilities
121,055,247
127,458,808
127,324,915
-5.02%
-4.92%
Total Liabilities
134,775,578
138,445,187
137,354,402
-2.65%
-1.88%
Deferred Inflows of
Resources - Pension
related
16,051,905
21,618,960
11,564,393
-25.75%
38.80%
Net Investment in
Capital Assets
600,770,254
581,844,903
573,175,094
3.25%
4.81%
Restricted - Debt Service
4,449,437
4,363,251
4,288,008
1.98%
3.76%
Unrestricted
21,417,325
7,362,273
(13,856,024)
190.91%
254.57%
Total Net Position
$ 626,637,016
$ 593,570,427
$ 563,607,078
5.57%
11.18%
The total net position of the District increased from $563.6 million in 2014-15 to $593.6 million in
2015-16 and increased to $626.6 million in 2016-17. The District's total assets have increased by $29.2
million or 4.06% compared to 2015-16, and $48.3 million or 6.90% compared to 2014-15. The total
liabilities decreased $3.7 million or -2.65% compared to 2015-16, and decreased $2.6 million or -1.88%
compared to 2014-15. The increase in net position over the three-year period totals $63.0 million or
11.18% and is the result of the combination of net income, capital contributions, and the implementation
of GASB 68 and GASB 71 which required the District to record the Net Pension Liability.
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By far the largest portion of the District's net position (95.87%) reflects its investment in capital assets
(e.g. land, buildings, machinery, equipment, intangible assets, and sewer line infrastructure), less any
related debt used to acquire those assets that are still outstanding. The District uses these capital assets
to provide services to its ratepayers; consequently, these assets are not available for future spending.
Although the District's investment in its capital assets is reported net of debt, it should be noted that the
funds needed to repay this debt must be provided from other sources, since the capital assets themselves
cannot be used to liquidate these liabilities. There is currently $4.4 million restricted for debt service.
The remaining balance of $21.4 million in unrestricted net position increased by $14.1 million from
2015-16 and increased by $35.3 million from 2014-15 due to increased operating and non-operating
revenues and capital contributions.
REVIEW OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
The table below shows the condensed statement of revenues, expenses, and changes in net position for
the District for the past three fiscal years:
Table 2 - Condensed Statement of Revenues, Expenses, and Changes in Net Position
% Increase
Fiscal Year Ended June 30 (Decrease)
FY 16-17 FY 16-17
vs. vs.
2016-17 2015-16 2014-15 FY 15-16 FY 14-15
Sewer Service Charges (SSC)
$ 86,989,488
$ 86,147,863
$ 82,916,457
0.98%
4.91%
Other Service Charges and
Miscellaneous
1,635,953
1,586,673
1,599,977
3.11%
2.25%
TotalOperating Revenue
88,625,441
87,734,536
84,516,434
1.02%
4.86%
Property Tax
16,318,874
14,835,167
14,083,331
10.00%
15.87%
Permit & Inspection Fees
2,600,888
2,546,723
1,843,942
2.13%
41.05%
Interest and All Other
1,728,082
1,757,403
2,147,005
-1.67%
-19.51%
Total Non -Operating
Revenues
20,647,844
19,139,293
18,074,278
7.88%
14.24%
Total Revenues
109,273,285
106,873,829
102,590,712
2.25%
6.51%
Total Labor and Benefits
62,305,898
63,988,158
66,104,630
-2.63%
-5.75%
Chemicals & Utilities
6,106,904
5,053,263
5,532,237
20.85%
10.39%
Repairs and Maintenance
4,662,918
4,891,062
3,873,557
-4.66%
20.38%
Professional, Legal and
Outside Services
3,891,224
4,196,302
3,322,881
-7.27%
17.10%
Materials & Supplies
2,008,100
2,251,356
1,934,253
-10.80%
3.82%
Hauling and Disposal
999,168
889,471
884,703
12.33%
12.94%
Self -Insurance Expense
697,792
1,600,617
1,333,518
-56.40%
-47.67%
Pension Expense
4,080,558
9,778,389
3,012,757
-58.27%
35.44%
All Other
1,981,186
1,815,647
1,636,826
9.12%
21.04%
Depreciation Expense
22,892,153
22,885,030
22,740,942
0.03%
0.66%
Operating Expenses
1017464,785
97,792,517
104,350,790
3.76%
-2.77%
-Total
Non -Operating Expense -
Interest Expense
1,313,398
1,427,641
1,523,127
-8.00%
-13.77%
Total Expenses
102,778,183
99,220,158
105,873,917
3.59%
-2.92%
January 4, 2018 Regular Board Meeting Agenda Packet - Page 76 of 235
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Table 2 - Condensed Statement of Revenues, Expenses, and Changes in Net Position
(Continued)
% Increase
Fiscal Year Ended June 30 (Decrease)
FY 16-17 FY 16-17
vs. vs.
2016-17 2015-16 2014-15 FY 15-16 FY 14-15
Income Before Capital
Contributions
6,495,102
7,653,671
3,283,205
-15.14%
297.83%
Customer Contributions SSC
16,628,105
11,991,752
6,769,623
38.66%
145.63%
Contributed Sewer Lines
2,899,042
1,774,168
794,218
63.40%
265.02%
Capital Contributions -
Connection Fees
7,044,340
8,543,758
6,673,298
-17.55%
5.56%
Total Capital Contributions
26,571,487
22,309,678
14,237,139
19.10%
86.64%
Change in Net Position
33,066,589
29,963,349
10,953,934
10.36%
201.87%
Beginning Net Position
593,570,427
563,607,078
644,345,666
5.32%
-7.88%
Restatement -
Implementation of GASB 68
and GASB 71
-
-
91,692,522
-
100%
Ending Net Position
$ 626,637,016
$ 593,570,427
$ 563,607,078
5.57%
11.18%
Revenue
Total operating revenues increased from $84.5 million in 2014-15 to $87.7 million in 2015-16 and to
$88.6 million in 2016-17. Operating revenues increased by $0.89 million or 1.02% compared to 2015-
16, and increased by $4.1 million or 4.86% comparing 2016-17 to 2014-15.
Total non-operating revenue increased from $18.1 million in 2014-15 to $19.1 million in 2015-16 and to
$20.6 million in 2016-17. An increase compared to 2015-16 by $1.5 million or 7.88%, and increased by
$2.6 million or 14.24% comparing 2016-17 to 2014-15.
Total revenues increased from $102.6 million in 2014-15 to $106.9 million in 2015-16 to $109.3 million
in 2016-17. The change in total revenue resulted in an increase of $2.4 million or 2.25% comparing
2016-17 to 2015-16, and increased by $6.7 million or 6.51% comparing 2016-17 to 2014-15. There was
a 6.79% rate increase for single family homes and a 5.18% rate increase for multi -family homes in
2016-17, a 7.29% rate increase for single family homes and a 5.47% rate increase for multi -family
homes in 2015-16, and an 8.40% SSC general rate increase in 2014-15. The Sewer Service Charge
allocation to cover capital costs increased to 15.70% in 2016-17 from 10.33% in 2015-16 and 5.24% in
2014-15. Property tax revenue increased by $1.5 million or 10.00% from 2016-17 to 2015-16, and $2.2
million or 15.87% comparing 2016-17 to 2014-2015 due to the continued increase in property values.
Expenses
Total expenses decreased from $105.9 million in 2014-15 to $99.2 million in 2015-16 and increased to
$102.8 million in 2016-17. In 2016-17, total expenses increased by $3.6 million or 3.59% compared to
2015-16. Comparing 2016-17 to 2014-15, total expenses were $3.1 million or -2.92% lower. Increase
from 2015-16 is mainly due to reduction in pension expense adjustments. Depreciation expense
increased due to new capital additions. Non-operating expense is mainly driven by debt service interest
expense.
6
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Total income before capital contributions went from -$3.3 million in 2014-15, to $7.7 million in 2015-
16, and $6.5 million in 2016-17.
Total capital contributions in 2016-17 were $26.6 million compared to $22.3 million in 2015-16 and
$14.2 million in 2014-15. This was mainly due to higher customer contributions SSC in 2016-17 due to
the rate increase, a shift of the internal SSC revenue allocation, and volatility in connection fees due to
the fluctuation of the housing and construction markets. The total change in net position increased by
$3.1 million or 10.36% when comparing 2016-17 to 2015-16 and increased $22.1 million or 201.87%
when comparing 2016-17 to 2014-15.
CAPITAL ASSETS
Capital assets for fiscal years 2016-17, 2015-16 and 2014-15 totaled $632.5 million, $616.0 million, and
$609.7 million, respectively. Capital assets include the District's entire major infrastructure including
wastewater treatment facilities, sewers, land, buildings, pumping stations, vehicles, intangible assets and
furniture and equipment exceeding our capitalization policy limit of $5,000, net of depreciation. As of
June 30, 2017, the District's investment in capital assets totaled $632.5 million, an increase of $16.4
million or 2.67% over the capital asset balance of $616.0 million at June 30, 2016. Capital assets
increased by $22.7 million or 3.73% comparing 2016-17 to 2014-15. A comparison of the District's
capital assets over the past three fiscal years is presented below:
Table 3 - Capital Assets
% Increase
Fiscal Year Ended June 30 (Decrease)
FY 16-17 FY 16-17
vs. vs.
2016-17 2015-16 2014-15 FY 15-16 FY 14-15
Land
$ 17,320,570
$ 17,320,570
$ 17,320,570
0.00%
0.00%
Collection System
351,503,806
341,412,320
331,167,382
2.96%
6.14%
-Sewage
Contributed Sewer Lines
157,791,719
154,863,632
153,091,464
1.89%
3.07%
Outfall Sewers
11,371,574
11,371,574
11,339,298
0.00%
0.28%
Treatment Plant
333,962,356
323,360,945
320,717,418
3.28%
4.13%
-Sewage
Recycled Water Infrastructure
20,292,366
19,215,350
19,065,139
5.60%
6.44%
Pumping Stations
57,278,141
56,270,149
56,046,563
1.79%
2.20%
Buildings
44,238,508
42,412,648
42,412,648
4.30%
4.30%
Intangible Assets
4,941,707
4,936,407
4,875,507
0.11%
1.36%
Furniture & Equipment
14,012,837
12,627,569
10,886,007
10.97%
28.72%
Motor Vehicles
7,614,982
7,378,730
6,883,134
3.20%
10.63%
Construction In Progress
33,388,571
24,480,982
13,958,646
36.39%
139.20%
Subtotal
1,053,717,137
1,015,650,876
987,763,776
3.75%
6.68%
Less Accumulated
Depreciation
421,264,506
399,645,839
378,045,297
5.41%
11.43%
Total Capital Assets (net of
depreciation)
$ 632,452,631
$ 616,005,037
$ 609,718,479
2.67%
3.73%
7
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The major reasons for the increase in capital assets, net of depreciation, of $16.4 million from 2015-16
to 2016-17 and $22.7 million from 2014-15 to 2016-17, are as follows:
• Sewer pipe ongoing renovations, upgrades, expansion, pumping station improvements, and
contributed sewer lines increased by $14.0 million comparing 2016-17 to 2015-16 and $26.3
million comparing 2016-17 to 2014-15.
• Treatment plant infrastructure renovations, upgrades, equipment, and improvements increased by
$10.6 million comparing 2016-17 to 2015-16 and $13.2 million comparing 2016-17 to 2014-15.
• All other asset categories, including construction in progress, increased by $11.6 million
comparing 2016-17 to 2015-16 and increased by $24.6 million comparing 2016-17 to 2014-15.
• Capital asset increases are offset by an increased subtraction of accumulated depreciation of
$21.6 million comparing 2016-17 to 2015-16 and $43.2 million comparing 2016-17 to 2014-15
due to increasing capital asset investment and its associated depreciation expense.
See Note 5 in the audited financial statements.
DEBT ADMINISTRATION
The total debt obligations for fiscal years 2016-17, 2015-16 and 2014-15 totaled $31.7 million, $34.2
million, and $36.5 million, respectively. As of June 30, 2017, the District's outstanding debt totaled
$31.7 million, which is a decrease of $2.5 million or -7.25% over the debt balance of $34.2 million at
June 30, 2016. Debt decreased by $4.9 million or -13.30% comparing 2016-17 to 2014-15. The 2009
certificates of participation and the 1999 State Water Resources Control Board Water Reclamation Loan
principal and related interest for both decrease annually due to the scheduled principal payments. The
District did not issue any new debt this fiscal year. The source of funds for repayment of debt issued for
expansion purposes is the state property taxes received. A comparison of the District's debt service for
the past three fiscal years is presented below:
Table 4 — Debt Outstanding
Outstanding Balance - Fiscal Year Ended June 30 % Increase (Decrease)
FY 16-17 FY 16-17
vs. vs.
2016-17 2015-16 2014-15 FY 15-16 14-15
Revenue Bonds
$ 31,500,000 $
33,800,000 $
36,010,000
-6.80%
-12.52%
Water Reclamation Loan
182,377
360,134
533,385
-49.36%
-65.81%
Total Debt Service
$ 31,682,377 $
34,160,134 $
36,543,385
-7.25%
-13.30%
See Note 6 in the audited financial statements.
January 4, 2018 Regular Board Meeting Agenda Packet - Page 79 of 235
Page 29 of 98
ECONOMIC AND OTHER FACTORS
The Federal and State of California economies continue to grow at a modest 2-3% and are operating at
near full employment. Unemployment rates are projected to be between 4-5% through 2019. Changes
in property values and income tax regulations could potentially effect the property tax revenue in the
near future. The State is now faced with the challenge of providing affordable housing to the larger
markets. There is optimism for a federal tax reform and an infrastructure improvement spending
package which should help continue to stimulate growth in the national and local economy. Changes in
the state budget have a significant impact on the District. Federal and State economic challenges will
continue into the future and will have a trickle-down effect on local government.
Items specifically impacting the District are:
• Current Employee Memorandum of Understanding contracts end as of December 17, 2017.
• Current and future legislation impacting public employee pensions is still being litigated,
currently requiring higher employee contributions and lower pensions by eliminating spiking.
• Potential changes to the healthcare providers in order to reduce operating costs.
• The necessary replacement and upgrading of existing infrastructure.
• Implementation of the Comprehensive Wastewater Master Plan.
• Housing market continues to show improvement which impacts the District's property tax
revenues, and development and user fees.
• Regulatory requirements becoming more stringent, causing the District to spend more on
compliance, both for operations and maintenance costs and capital projects. This may require
debt financing for large capital projects in the near future.
In addition to making efforts to reduce spending and improve process efficiencies, the District has the
ability to raise the SSC to meet its long-term commitments. The District has a Standard and Poor's
AAA rating, and can obtain bond financing if necessary.
FINANCIAL CONTACT
The financial report is designed to provide the District's customers and creditors with a general
overview of District finances and to demonstrate the District's accountability for the money it receives.
If you have questions about this report or need additional financial information, contact: Finance
Manager Thea Vassallo, Central Contra Costa Sanitary District, 5019 Imhoff Place, Martinez, CA
94553.
January 4, 2018 Regular Board Meeting Agenda Packet - Page 80 of 235
Page 30 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF NET POSITION
JUNE 30, 2017 AND 2016
ASSETS
CURRENT ASSETS
Cash and cash equivalents (Note 2)
Short term investments (Note 2)
Accounts receivable, net (Note 3)
Interest receivable
Parts and supplies
Prepaid expenses
Total current assets
NON-CURRENT ASSETS
Restricted cash and cash equivalents (Notes I.F. and 2)
Restricted investments (Note 2)
Assessment Districts receivable (Note 4)
Net OPEB asset (Note 10)
Capital assets:
Nondepreciable (Note 5)
Depreciable, net of accumulated depreciation (Note 5)
Total capital assets, net
Total non-current assets
TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES
Pension related (Note 9)
2017 2016
$41,346,327
$32,451,718
39,000,000
39,000,000
19,965,896
19,018,549
14,665
181,707
2,089,765
2,146,172
3,459,464
2,786,407
105,876,117 95,584,553
236,702
100,000
4,856,450
4,856,450
1,311,825
1,515,818
3,652,571
1,108,244
55,650,848
46,737,959
576,801,783
569,267,078
632,452,631
616,005,037
See accompanying notes to financial statements
10
January 4, 2018 Regular Board Meeting Agenda Packet - Page 81 of 235
642,510,179 623,585,549
748,386,296 719,170,102
29,078,203 34,464,472
(Continued)
Page 31 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF NET POSITION
JUNE 30, 2017 AND 2016
LIABILITIES
CURRENT LIABILITIES
Accounts payable and accrued expenses
Interest payable
Refunding Water Revenue Bonds - current portion (Note 6)
Water Reclamation Loan Contract - current portion (Note 6)
Accrued compensated absences - current portion (Note 1.J.)
Provision for uninsured claims (Note 7)
Refundable deposits
Total current liabilities
NON-CURRENT LIABILITIES
Refunding Water Revenue Bonds, noncurrent portion (Note 6)
Water Reclamation Loan Contract, noncurrent portion (Note 6)
Accrued compensated absences, noncurrent portion (Note LJ.)
Collective net pension liability (Note 9)
Total non-current liabilities
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
Pension related (Note 9)
NET POSITION (Note 11)
2017 2016
$8,908,133
$6,174,225
558,380
592,380
2,405,000
2,300,000
182,377
177,756
457,000
448,000
807,079
1,000,000
402,362
294,018
13,720,331 10,986,379
29,095,000
31,500,000
-
182,378
4,113,131
4,029,542
87,847,116
91,746,888
121,05 5,247
127,458, 808
134,775,578
13 8,445,187
16,051,905
21,618,960
Net investment in capital assets 600,770,254 581,844,903
Restricted for debt service 4,449,437 4,363,251
Unrestricted 21,417,325 7,362,273
TOTAL NET POSITION $626,637,016 $593,570,427
See accompanying notes to financial statements
11
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This Page Left Intentionally Blank
January 4, 2018 Regular Board Meeting Agenda Packet - Page 83 of 235
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
FOR THE YEARS ENDED JUNE 30, 2017 AND 2016
2017 2,016
OPERATING REVENUES
Page 33 of 98
Sewer service charges (SSC)
$73,138,235
$72,233,903
Service charges - City of Concord (Note 8)
13,851,253
13,913,960
Other services charges
1,029,500
963,014
Miscellaneous charges
606,453
623,659
Total operating revenues
88,625,441
87,734,536
OPERATING EXPENSES
Sewage collection and pumping stations
16,826,922
16,977,612
Sewage treatment
25,631,809
25,959,525
Engineering
15,342,640
16,301,976
Recycled water
970,640
559,272
Administrative and general
23,881,179
24,887,491
Pension expense adjustments (Note 9)
(4,080,558)
(9,778,389)
Depreciation (Note 5)
22,892,153
22,885,030
Total operating expenses
101,464,785
97,792,517
OPERATING (LOSSES)
(12,839,344)
(10,057,981)
NONOPERATING REVENUES (EXPENSES)
Taxes
16,318,874
14,835,167
Permit and inspection fees
2,600,888
2,546,723
Interest earnings
761,838
562,308
Interest expense
(1,313,398)
(1,427,641)
Other income (expense), net
966,244
1,195,095
Total nonoperating revenues (expenses), net
19,334,446
17,711,652
INCOME BEFORE CAPITAL CONTRIBUTIONS
6,495,102
7,653,671
CAPITAL CONTRIBUTIONS
City of Concord contributions to capital costs (Note 8) 4,476,961 3,671,892
Customer contributions to capital cost (SSC) 12,151,144 8,319,860
Contributed sewer lines 2,899,042 1,774,168
Capital contributions - connection fees 7,044,340 8,543,758
Total capital contributions 26,571,487 22,309,678
CHANGE IN NET POSITION 33,066,589 29,963,349
NET POSITION, BEGINNING OF YEAR 593,570,427 563,607,078
NET POSITION, END OF YEAR $626,637,016 $593,570,427
See accompanying notes to financial statements
13
January 4, 2018 Regular Board Meeting Agenda Packet - Page 84 of 235
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 2017 AND 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers
Payments to employees and related benefits
Net cash provided (used) by operating activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Receipt of taxes
Inspection/permit fees and other non-operating income
Cash flows from noncapital financing activities
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contributions
Connection fees
Acquisition and construction of capital assets
Proceeds from disposal of capital assets
Interest paid on long-term debt
Principal payments on long-term debt
Cash flows (used for) capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Redemption of investments
Acquisition of investments
Interest received
Cash flows from (used for) investing activities
NET INCREASE (DECREASE) IN CASH
Cash, beginning of year
Cash, end of year
See accompanying notes to financial statements
14
January 4, 2018 Regular Board Meeting Agenda Packet - Page 85 of 235
2017
Page 34 of 98
2016
$87,882,087 $86,011,329
(40,233,129) (42,386,633)
(42,646,197) (41,204,947)
5,002,761 2,419,749
16,318,874 14,835,167
3,567,132 3,741,818
19,886,006 18,576,985
19,527,147
13,765,920
7,044,340
8,543,758
(39,595,091)
(29,535,660)
255,344
364,072
(1,347,398)
(1,457,108)
(2,477,757)
(2,383,251)
(16,593,415) (10,702,269)
43,807,079 15,498,572
(44,000,000) (39,000,000)
928,880 440,668
735,959 (23,060,760)
9,031,311 (12,766,295)
32,551,718 45,318,013
$41,583,029 $32,551,718
(Continued)
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 2017 AND 2016
Reconciliation of operating (loss) to net cash provided by
operating activities:
Operating (losses)
Adjustments to reconcile operating losses to cash
flows from operating activities:
Depreciation
Changes in assets and liabilities:
Receivables, net
Parts and supplies
Prepaid expenses
Net OPEB asset
Accounts payable and accrued expenses
Accrued payroll and related expenses
Refundable deposits
Net pension liability
Net cash provided (used) by operating activities
SCHEDULE OF NON CASH ACTIVITY
Change in fair value of investments
Capital asset donations
Total non cash activity
CASH AND CASH EQUIVALENTS, AS PRESENTED ON
STATEMENT OF NET POSITION:
Unrestricted cash and cash equivalents
Restricted cash and cash equivalents
Page 35 of 98
2017 2016
($12,839,344) ($10,057,981)
22,892,153 22,885,030
(743,354)
(1,723,207)
56,407
(66,737)
(673,057)
(229,613)
(2,544,327)
98,521
2,733,908
799,784
92,589
445,271
108,344
47,070
(4,080,558)
(9,778,389)
$5,002,761 $2,419,749
$928,880 $440,668
2,899,052 1,774,168
$3,827,932 $2,214,836
$41,346,327 $32,451,718
236,702 100,000
Total cash and cash equivalents at end of year $41,583,029 $32,551,718
See accompanying notes to financial statements
15
January 4, 2018 Regular Board Meeting Agenda Packet - Page 86 of 235
Page 36 of 98
CENTRAL CONTRA COUNTY SANITARY DISTRICT
STATEMENTS OF FIDUCIARY NET POSITION
FIDUCIARY FUND
OTHER POST -EMPLOYMENT BENEFIT TRUST FUND
JUNE 30, 2017 AND 2016
ASSETS
Investments with Trustees:
Cash equivalents
Equity securities
Equity mutual funds
Total investments
Total Assets
NET POSITION
2017 2016
$1,137,442 $1,574,922
26,564,682 20,039,811
24,626,243 21,088,421
51,190,925 41,128,232
$52,328,367 $42,703,154
Net position held in trust for OPEB benefits $52,328,367 $42,703,154
See accompanying notes to basic financial statements
16
January 4, 2018 Regular Board Meeting Agenda Packet - Page 87 of 235
Contributions:
District
CENTRAL CONTRA COUNTY SANITARY DISTRICT
STATEMENTS OF CHANGES IN FIDUCIARY NET POSITION
FIDUCIARY FUND
OTHER POST -EMPLOYMENT BENEFIT TRUST FUND
FOR THE YEARS ENDED JUNE 30, 2017 AND 2016
ADDITIONS
Total contributions
Investment income:
Net appreciation in fair value of investments
Interest, dividends and other
Less: investment expenses
Total net investment income
Change in net position
Total additions
NET POSITION
2017
2016
Page 37 of 98
$5,028,700 $2,631,600
5,028,700 2,631,600
3,802,694
(505,729)
932,882
783,027
(139,063)
(123,480)
4,596,513
153,818
9,625,213
2,785,418
9,625,213
2,785,418
Beginning of year as adjusted (Note 1.N.) 42,703,154 39,917,736
End of year $52,328,367 $42,703,154
See accompanying notes to basic financial statements
January 4, 2018 Regular Board Meeting Agenda Paget - Page 88 of 235
Page 38 of 98
This Page Left Intentionally Blank
January 4, 2018 Regular Board Meeting Agenda Packet - Page 89 of 235
Page 39 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 1— DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
A. Reporting Entity
The Central Contra Costa Sanitary District (District), a special district and a public entity
established under the Sanitary District Act of 1923, provides sewer service for the incorporated
and unincorporated areas under its jurisdiction. A Board of Directors comprised of five elected
members governs the District.
As required by accounting principles generally accepted in the United States of America, these
basic financial statements present the financial statements of Central Contra Costa Sanitary
District and its component unit. The component unit discussed in the following paragraph is
blended in the District's reporting entity because of the significance of its operational and
financial relationship with the District.
Blended Component Unit - Component units are legally separate organizations for which the
District is financially accountable. Component units may also include organizations that are
fiscally dependent on the District, in that the District approves their budget, the issuance of their
debt or the levying of their taxes. In addition, component units are other legally separate
organizations for which the District is not financially accountable but the nature and significance
of the organization's relationship with the District is such that exclusion would cause the District's
financial statements to be misleading or incomplete. For financial reporting purposes, the
component unit discussed below is reported in the District's financial statements because of the
significance of its relationship with the District. The component unit, although a legally separate
entity, is reported in the financial statements using the blended presentation method as if it were
part of the District's operations because the Governing Board of the component unit is the same
as of Governing Board of the District and because its purpose is to finance facilities to be used for
the direct benefit of the District. The Central Contra Costa Sanitary District Facilities Financing
Authority (Authority) was organized solely for the purpose of providing financial assistance to the
District. The Authority does this by acquiring, constructing, improving and financing various
facilities, land and equipment purchases, and by leasing or selling certain facilities, land and
equipment for the use, benefit and enjoyment of the public served by the District. The Authority
has no employees and the Board of Directors of the Authority consists of the same persons who
are serving as the Board of Directors of the District. There are no separate basic financial
statements prepared for the Authority.
B. Basis of Accounting
The District's financial statements are prepared on the accrual basis of accounting. The District
applies all applicable Governmental Accounting Standards Board (GASB) pronouncements for
certain accounting and financial reporting guidance.
19
January 4, 2018 Regular Board Meeting Agenda Packet - Page 90 of 235
Page 40 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 1— DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
The District is a proprietary entity; it uses an enterprise fund format to report its activities for
financial statement purposes. Enterprise funds are used to account for operations that are
financed and operated in a manner similar to private business enterprises, where the intent of the
governing body is that the cost and expenses, including depreciation, of providing goods or
services to its customers be financed or recovered primarily through user charges; or where the
governing body has decided that periodic determination of revenues earned, expense incurred,
and net income is appropriate for capital maintenance, public policy, management control,
accountability, or other purposes.
Enterprise funds are used to account for activities similar to those in the private sector, where the
proper matching of revenues and costs is important and the full accrual basis of accounting is
required. With this measurement focus, all assets and liabilities of the enterprise are recorded on
its statement of net position, all revenues are recognized when earned and all expenses, including
depreciation, are recognized when incurred.
Enterprise funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services and producing and
delivering goods in connection with an enterprise fund's principal ongoing operations. The
principal operating revenues of the District are charges to customers for services. Operating
expenses for the District include the costs of sales and services, administrative expenses, and
depreciation on capital assets. All revenues and expenses not meeting this definition are reported
as non-operating revenues and expenses.
For internal operating purposes, the District's Board of Directors has established four separate
sub -funds, each of which includes a separate self -balancing set of accounts and a separate Board
approved budget for revenues and expenses. These sub -funds are combined into the single
enterprise fund presented in the accompanying financial statements. The nature and purpose of
these sub -funds are as follows:
Running Expense - Running Expense accounts for the general operations of the District.
Substantially all operating revenues and expenses are accounted for in this sub -fund.
Sewer Construction - Sewer Construction accounts for non-operating revenues, which are
to be used for acquisition or construction of plant, property and equipment.
Self -Insurance - Self -Insurance accounts for interest earnings on cash balances in this
sub -fund and cash allocations from other sub -funds, as well as for costs of insurance
premiums and claims not covered by the District's insurance coverage.
Debt Service - Debt Service accounts for activity associated with the payment of the
District's long term bonds and loans.
That portion of the District's net position which is allocable to each of these sub -funds has been
shown separately in the accompanying supplementary information to the financial statements.
The District's Board of Directors adopts annual budgets on a basis consistent with accounting
principles generally accepted in the United States of America.
20
January 4, 2018 Regular Board Meeting Agenda Packet - Page 91 of 235
Page 41 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 1— DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
The District reports its Other Post -Employment Benefit Trust Fund as a fiduciary fund. The
Fund consists of the Public Agencies Post -Retirement Health Care Plan, which was established in
2005, amended and restated in 2007. The fundamental purpose of the trust is to fund post -
employment benefits (other than pension benefits), such as medical, dental, vision, life insurance,
long-term care and similar benefits.
C. Investments
Investments held at June 30, 2017 and 2016 with original maturities greater than one year, are
stated at fair value. Fair value is estimated based on quoted market prices at year-end. All
investments not required to be reported at fair value are stated at cost or amortized cost.
D. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. The
District categorizes its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. The fair value hierarchy categorizes the inputs to
valuation techniques used to measure fair value into three levels based on the extent to which
inputs used in measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2 inputs are inputs — other than quoted prices included within level 1 — that are
observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of the
fair value hierarchy, the measurement is considered to be based on the lowest priority level input
that is significant to the entire measurement.
E. Prepaid Expenses
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in the financial statements.
F. Bank Escrow Deposit
An escrow agreement was formed between the District and the National Park Service for the
right-of-way through the John Muir National Historic Site, in lieu of issuing a performance bond.
The current right-of-way permit is 10 years, but is renewable and must remain in effect so long as
there is sewage running through the area; therefore, it is unlikely that the escrow funds will ever
be released to the District. These funds are listed as restricted cash in the financial statements.
21
January 4, 2018 Regular Board Meeting Agenda Packet - Page 92 of 235
Page 42 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 1— DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
G. Parts and Supplies
Parts and supplies are valued at average cost and are used primarily for internal purposes.
H. Property, Plant, and Equipment
Purchased capital assets are stated at historical cost. Capital assets contributed to the District are
reported at acquisition value. The capitalization threshold for capital assets is $5,000.
Expenditures which materially increase the value or life of capital assets are capitalized and
depreciated over the remaining useful life of the asset.
Depreciation of exhaustible capital assets has been provided using the straight-line method over
the asset's useful life as follows:
Years
Sewage Collection Facilities 75
Intangible Assets 75
Sewage Treatment Plant and Pumping Plants 40
Buildings 50
Furniture and Equipment 5-15
Motor Vehicles 7-15
I. Property Taxes
Property tax revenue is recognized in the fiscal year for which the tax is levied. The County of
Contra Costa levies, bills and collects property taxes for the District; all material amounts are
collected by June 30.
General County taxes collected are the same as the amount levied since the County participates in
California's alternative method of apportionment called the Teeter Plan. The Teeter Plan as
provided in Section 4701 at seq. of the State of Revenue and Taxation Code establishes a
mechanism for the County to advance the full amount of property tax and other levies to taxing
agencies based on the tax levy, rather than on the basis of actual tax collections. Although this
system is a simpler method to administer, the County assumes the risk of delinquencies. The
County in return retains the penalties and accrued interest thereon.
Secured property tax bills are mailed once a year, during the month of October on the current
secured tax roll, to the owner of the property as of the lien date (January 1). Payments can be
made in two installments, and are due on November 1 and February 1. Delinquent accounts are
assessed a penalty of 10 percent. Accounts which remain unpaid on June 30 are charged an
additional 1% percent per month. Unsecured property tax is due on July 1 and becomes
delinquent on August 31. The penalty percentage rates are the same as secured property tax.
22
January 4, 2018 Regular Board Meeting Agenda Packet - Page 93 of 235
Page 43 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 1— DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
T. Compensated Absences
The liability for vested vacation, compensatory time, and sick pay is recorded as an expense when
earned. District employees have a vested interest in 100 percent of accrued vacation time and 85
percent of accrued sick time for employees hired before May 1, 1985. Employees hired after May
1, 1985 have a vested interest in up to 40 percent of their sick time, based upon length of
employment with the District.
The changes in compensated absences were as follows for fiscal years ended June 30:
The current portion of the liability to be used within the next year is estimated by management to
be approximately 10% of the ending balance.
K. Statement of Cash Flows
For purposes of the statement of cash flows, all highly liquid investments, including restricted
assets, with maturities of three months or less when purchased, are considered to be cash
equivalents. Included therein are petty cash, bank accounts, and the State of California Local
Agency Investment Fund (LAIF). Restricted assets are debt service amounts maintained by
fiduciaries and not available for general expenses.
L. 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.
23
January 4, 2018 Regular Board Meeting Agenda Packet - Page 94 of 235
2017
2016
Beginning Balance
$4,477,542
$4,032,271
Additions
627,663
558,479
Payments
(535,074)
(113208)
Ending Balance
$4,570,131
$4,477,542
Current Portion
$457,000
$448,000
The current portion of the liability to be used within the next year is estimated by management to
be approximately 10% of the ending balance.
K. Statement of Cash Flows
For purposes of the statement of cash flows, all highly liquid investments, including restricted
assets, with maturities of three months or less when purchased, are considered to be cash
equivalents. Included therein are petty cash, bank accounts, and the State of California Local
Agency Investment Fund (LAIF). Restricted assets are debt service amounts maintained by
fiduciaries and not available for general expenses.
L. 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.
23
January 4, 2018 Regular Board Meeting Agenda Packet - Page 94 of 235
Page 44 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 1— DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
M. Implementation of Governmental Accounting Standards Board (GASB) Pronouncements
GASB Statement No. 74 — Financial Reporting for Post -employment Benefit Plans Other Than
Pension Plans - The objective of this Statement is to improve the usefulness of information about
postemployment benefits other than pensions (other postemployment benefits or OPEB) included
in the general purpose external financial reports of state and local governmental OPEB plans for
making decisions and assessing accountability. This Statement results from a comprehensive
review of the effectiveness of existing standards of accounting and financial reporting for all
postemployment benefits (pensions and OPEB) with regard to providing decision -useful
information, supporting assessments of accountability and interperiod equity, and creating
additional transparency. This statement is effective for periods beginning after December 15,
2015 and required the District to include fiduciary fund statements for its trust with PARS as well
as additional disclosures in Note 10 of the notes to the basic financial statements.
GASB Statement No. 77 — Tax Abatement Disclosures. This Statement establishes financial
reporting standards for tax abatement agreements entered into by state and local governments.
The disclosures required by this Statement encompass tax abatements resulting from both (a)
agreements that are entered into by the reporting government and (b) agreements that are entered
into by other governments and that reduce the reporting government's tax revenues. The
statement is effective for the periods beginning after December 15, 2015, or the 2016-2017 fiscal
year and had no impact on the District's financial statements.
GASB Statement No. 82 — Pension Issues — an amendment of GASB Statements No. 67, No. 68,
and No. 73. The objective of this Statement is to address certain issues that have been raised with
respect to Statements No. 67, Financial Reporting for Pension Plans, No. 68, Accounting and
Financial Reporting for Pensions, and No. 73, Accounting and Financial Reporting for Pensions
and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to
Certain Provisions of GASB Statements 67 and 68. Specifically, this Statement addresses issues
regarding (1) the presentation of payroll -related measures in required supplementary information,
(2) the selection of assumptions and the treatment of deviations from the guidance in an Actuarial
Standard of Practice for financial reporting purposes, and (3) the classification of payments made
by employers to satisfy employee (plan member) contribution requirements. This statement is
effective for the periods beginning after June 15, 2015, or the 2016-2017 fiscal year and had no
significant impact on the District's financial statements.
N. New Fund
During the current fiscal year, the District added a new fiduciary fund, Other Post -Employment
Benefits (OPEB) Trust Fund, as required by the implementation of GASB Statement No. 74,
Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. The District
made an adjustment for $39,917,736 in fiscal year 2016 to setup beginning net position in this
fund.
24
January 4, 2018 Regular Board Meeting Agenda Packet - Page 95 of 235
Page 45 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 2 — CASH AND INVESTMENTS
A. Summary of Cash and Investments
Cash and 'investments as of June 30, are classified in the accompanying financial statements as
follows:
Cash and cash equivalents
Short term investments
Restricted cash and cash equivalents
Restricted investments
Total District Cash and Investments
Cash and investments held with OPEB trust
Total Cash and Investments
B. Policies and Practices
2017
$41,346,327
39,000,000
236,702
4,856,450
85,439,479
2016
$32,451,718
39,000,000
100,000
4,856,450
76,408,168
52,328,367 42,703,154
$137,767,846 $119,111,322
The District is authorized under California Government Code to make direct investments in local
agency bonds, notes, or warrants within the State: U.S. Treasury instruments, registered State
warrants or treasury notes, securities of the U.S. Governments, or its agencies, commercial paper,
certificates of deposit placed with commercial banks and/or savings with loan companies, and
certificates of participation. State code and the District's investment policy prohibit the District
from investing in investments with a rating of less than A or equivalent.
25
January 4, 2018 Regular Board Meeting Agenda Packet - Page 96 of 235
Page 46 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 2 — CASH AND INVESTMENTS (Continued)
C. General Authorizations
Limitations as they relate to interest rate risk, credit risk, and concentration of credit risk are
indicated in the schedules below:
(1) Prime quality; limited to corporations with assets over $500,000,000
Treasury Notes and LAIF.
(2) Prior approval ofthe Board of Directors must be obtained to acquire maturities beyond one year, excluding
Treasury Notes and LAIR
January 4, 2018 Regular Board Meeting Agenda Packet - Page 97 of 235
District
District
California State Limits
Policy
Policy
Maximum
Maximum
Maximum
Maximum
Percentage
Minimum
Remaining
Percentage
Investment
of Portfolio
Credit
Authorized Investment Type
Maturity
of Portfolio
In One Issuer
(Per Issuer)
Quality
U.S. Treasury Obligations
5 years
None
None
100%
N/A
U.S. Government Agency Issues
5 years
None
None
100%
N/A
Money Market Funds
N/A
20%
10%
10%
A
Negotiable Certificates of Deposit
5 years
30%
30%
30%
AA
Banker's Acceptances
180
40%
400/.
5%
N/A
Commercial Paper (1)
270
25%
10%
5%
A-1
MediumTermNotes
5years
30%
5%
5%
AA
Collateralized Certificates of Deposit (2)
5 years
30%
None
30%
Aaa
Supranationals
5 years
300/.
5%
5%
AA
County Pooled Investment Funds
N/A
None
None
100%
N/A
Local Agency Investment Fund (LAIF)
N/A
None
$65 million
100%
N/A
(1) Prime quality; limited to corporations with assets over $500,000,000
Treasury Notes and LAIF.
(2) Prior approval ofthe Board of Directors must be obtained to acquire maturities beyond one year, excluding
Treasury Notes and LAIR
January 4, 2018 Regular Board Meeting Agenda Packet - Page 97 of 235
Page 47 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 2 — CASH AND INVESTMENTS (Continued)
D. Fair Value Hierarchy
The District categorizes its fair value measurements within the fair value hierarchy established by
generally accepted accounting principles. The hierarchy is based on the valuation inputs used to
measure fair value of the assets. Level 1 inputs are quoted prices in an active market for identical
assets; Level 2 inputs are significant other observable inputs; and Level 3 inputs are significant
unobservable inputs.
The following is a summary of the fair value hierarchy of the fair value of investments of the
District as of June 30, 2017:
Investment Type
Investments Reported at Fair Value:
U.S. Federal Agency Securities -FHLB
U.S. Treasury Notes
Commercial Paper - BNP Paribas
Total Investments
Investments Reported at Cost:
Certificates ofDeposit- Non -Negotiable
Mutual Funds in OPEB Trust
Investments Uncategorized:
California Local Agency Investment Fund
Total Investments
Cash in bank
Total Cash and Investments
Level l
$15,000,000
2017
Level 2
$20,000,000
4,000,000
$15,000,000 $24,000,000
Total
$20,000,000
15,000,000
4,000,000
39,000,000
4,856,450
52,328,367
30,200,000
126,384,817
11,383,029
$137,767,846
U.S. Treasury Notes totaling $15 million, classified in Level 1 of the fair value hierarchy are
valued using a quoted price in an active market for an identical asset. U.S. Federal Agency
Securities and Commercial Paper totaling $20 million and $4 million, respectively, classified in
Level 2 of the fair value hierarchy, is valued using matrix pricing techniques maintained by
various pricing vendors. Matrix pricing is used to value securities based on the securities'
relationship to benchmark quoted prices.
4l
January 4, 2018 Regular Board Meeting Agenda Packet - Page 98 of 235
Page 48 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 2 — CASH AND INVESTMENTS (Continued)
The following is a summary of the fair value hierarchy of the fair value of investments of the
District as of June 30, 2016:
Investment Type
Investments Reported at Fair Value:
Commercial Paper - ABBEY
Commercial Paper - Credit Agricole
Commercial Paper - Toyota Motor Credit
Commercial Paper - JP Morgan
Commercial Paper - Standard Charter
Certificates of Deposit -ABBEY
Certificates of Deposit -Union Bank
Certificates of Deposit - BNP Paribas
Total Investments
Investments Reported at Cost:
Certificates ofDeposit -Non-Negotiable
Mutual Funds in OPEB Trust
Investments Uncategorized
California Local Agency Investment Fund
Total Investments
Cash in bank
Total Cash and Investments
2016
Level 2 Total
$4,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
$39,000,000
$4,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
5,000,000
39,000,000
4,856,450
42,703,154
32,300,000
118,859,604
251,718
$119,111,322
Commercial Paper and Certificates of Deposit totaling $24 million and $15 million in 2016,
classified in Level 2 of the fair value hierarchy, is valued using matrix pricing techniques
maintained by various pricing vendors. Matrix pricing is used to value securities based on the
securities' relationship to benchmark quoted prices.
E. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value
of an investment; generally, the longer the maturity of an investment, the greater the sensitivity of
its fair value to changes in market interest rates. It is the District's policy to manage exposure to
interest rate risk by purchasing a combination of shorter term and longer term investments and by
timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to
maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
District policy is that investment maturities do not exceed one year, with the exception of Treasury
Notes or Local Agency Investment Fund; however, investments can be held longer with Board
approval.
28
January 4, 2018 Regular Board Meeting Agenda Packet - Page 99 of 235
Page 49 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 2 — CASH AND INVESTMENTS (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
investments by maturity, as of June 30:
2017
12 Months More than 12 Months
Investment Type orless 12 Months Maturity or less
Certificates ofDeposit - Debt Reserye
Certificates ofDeposit-ABBEY
Certificates ofDeposit - Union Bank
Certificates ofDeposit - BNP Paribas
Commercial Paper - ABBEY
Commercial Paper - Credit Agricole
Commercial Paper - Toyota Motor Credit
Commercial Paper - JP Morgan
Commercial Paper - Standard Charter
Commercial Paper - BNP Paribas New York
U.S, Treasury Notes
U.S Federal Agency Securities -FIILB
California Local Agency Investment Fund
Mutual Funds (in OPEB Trust)
Total Investments
Cash in bank
Total Cash and Investments
F. Credit Risk
$4,856,450
$4,000,000
15,000,000
20,000,000
30,200,000
52,328,367
121,528,367 4,856,450
11,383,029
$132,911,396 $4,856,450
4/28/20
$4,856,450
5,000,000
5,000,000
5,000,000
4,000,000
5,000,000
5,000,000
5,000,000
5,000,000
2016
Maturity
4/28/17
4/27/17
7/22/16
10/26/16
7/22/16
10/25/16
7/22/16
1/20/17
1/26/17
7/19/17
17/7/17
7/20/17
Not applicable
32,300,000 Not appheable
Not applicable
42,703,154 Not applicable
118,859,604
251,718
$119,111,322
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the actual rating as of June 30, of each
investment type:
Investment Type
Rated Aaa:
Certificates of Deposit
U.S. Federal Agency Securities - FHLB
Commercial Paper
Rated P-1:
Commercial Paper - BNP Paribas
Total Rated Investments
Not rated:
Certificates of Deposit - non-negotiable
Mutual Funds in OPEB Trust
California Local Agency Investment Fund
U.S. Treasury Notes
Cash in Bank
Total Cash and Investments
29
Totals
2017 2016
$20,000,000
4,000,000
24,000,000
4,856,450
52,328,367
30,200,000
15,000,000
11,383,029
$137,767,846
January 4, 2018 Regular Board Meeting Agenda Packet - Page 100 of 235
$15,000,000
24,000,000
39,000,000
4,856,450
42,703,154
32,300,000
251,718
$119,111,322
Page 50 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 2 — CASH AND INVESTMENTS (Continued)
G. Concentration of Credit Risk
Investments in LAIF — The District is a voluntary participant in LAIF which is regulated by the
California Government Code under the oversight of the Treasurer of the State of California.
LAIF is not registered with the Securities and Exchange Commission. The fair value of the
District's investment in this pool is reported in the accompanying financial statements at amounts
based upon the District's pro -rata share of the fair value provided by LAIF for the entire LAIF
portfolio (in relation to the amortized cost of that portfolio). The balance available for
withdrawal is based on the accounting records maintained by LAIF, which are recorded on an
amortized cost basis. At June 30, 2017 and 2016, these investments matured in an average of 194
and 167 days, respectively.
Investments in County Treasury — The District is considered to be a voluntary participant in an
external investment pool. The fair value of the District's investment in the pool is reported in the
financial statements in cash and cash equivalents at amounts based upon the District's pro -rata
share of the fair value provided by the County Treasurer for the entire portfolio (in relation to
amortized cost of that portfolio). The balance available for withdrawal is based on the accounting
records maintained by the County Treasurer, which is recorded on the amortized cost basis.
H. Custodial Credit Risk - Investments
Custodial risk for investments is the risk that, in the event of the failure of the counterparty (e.g.
the broker-dealer) to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The California
Government Code does not contain legal or policy requirements that would limit the exposure to
custodial credit risk. The District's policy is to use the services of the Treasurer's Office of the
County of Contra Costa, which will transact the District's investment decisions in compliance
with the requirements of the District's policy. The County Treasurer's Office will execute the
District's investments through such broker-dealers and financial institutions as are approved by
the County Treasurer, and through the State Treasurer's Office for investment in the Local
Agency Investment Fund.
NOTE 3 —ACCOUNTS. RECEIVABLE
Accounts receivable for the years ended June 30 are comprised of the following:
City of Concord (see Note 8)
Household Hazardous Waste Partners
All Other
Total Accounts Receivable
30
2017
$18,328,214
753,686
2016
$17,585,852
727,513
883,996 705,184
$19,965,896 $19,018,549
January 4, 2018 Regular Board Meeting Agenda Packet - Page 101 of 235
Page 51 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 4 — ASSESSMENT DISTRICTS RECEIVABLE
The District established the Contractual Assessment District (CAD) program to help homeowners
finance the cost of connecting to the District. The construction costs associated with the project
within the program are capitalized and depreciated. Individual homeowners are assessed at an
amount equal to their share of the construction costs and connection fee. The assessments, plus
interest, are generally payable over 10 years. The CAD receivable balance at June 30, 2017 and
2016 was $217,778 and $257,159, respectively.
The District also established the Alhambra Valley Assessment District (AVAD) to provide
services to residents in the Alhambra Valley in Martinez. Residents have the choice to pay cash
or finance the construction costs and connection fees. The AVAD receivable balance at June 30,
2017 and 2016 was $1,094,047 and $1,258,659, respectively.
The total receivable balance at June 30, 2017 and 2016 for CAD and AVAD was $1,311,825 and
$1,515,818, respectively, and is shown as a non-current asset on the Statement of Net Position.
31
January 4, 2018 Regular Board Meeting Agenda Packet - Page 102 of 235
Page 52 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 5 — CAPITAL ASSETS
Property, plant and equipment, and construction in progress are summarized below for the year
ended June 30, 2017:
Capital assets not being depreciated:
Land
Easements (intangible)
Construction in Progress
Total nondepreciated assets
Capital assets being depreciated:
Sewage collection system
Contributed sewer lines
Outfall sewers
Sewage treatment plant
Recycled water infrastructure
Pumping stations
Buildings
Furniture and equipment
Motor vehicles
Total depreciated assets
Less accumulated depreciation:
Sewage collection system
Contributed sewer lines
Outfall sewers
Sewage treatment plant
Recycled water infrastructure
Pumping stations
Buildings
Furniture and equipment
Motor vehicles
Total accumulated depreciation
Total capital assets being
depreciated, net
Capital assets, net
Balance at
Transfers &
Balance at
June 30, 2016
Additions
Retirements
Adjustments
June 30, 2017
$17,320,570
$17,320,570
4,936,407
$5,300
4,941,707
24,480,982
$36,696,049
($255,344)
(27,533,116)
33,388,571
46,737,959
36,696,049
(255,344)
(27,527,816)
55,650,848
341,412,320
(335,000)
10,426,486
351,503,806
154,863,632
2,899,042
(5,440)
34,485
157,791,719
11,371,574
11,371,574
323,360,945
(550,000)
11,151,411
333,962,356
19,215,350
1,077,016
20,292,366
56,270,149
1,007,992
57,278,141
42,412,648
1,825,860
44,238,508
12,627,569
(159,988)
1,545,256
14,012,837
7,378,730
(223,058)
459,310
7,614,982
968,912,917
2,899,042
(1,273,486)
27,527,816
998,066,289
64,587,611
4,690,151
(335,000)
68,942,762
57,268,867
2,097,574
(5,440)
59,361,001
3,465,586
151,395
3,616,981
210,866,708
10,065,439
(550,000)
220,382,147
8,060,811
805,541
8,866,352
30,884,104
2,220,533
33,104,637
11,617,825
1,258,681
12,876,506
8,188,890
1,231,360
(159,988)
9,260,262
4,705,437
371,479
(223,058)
4,853,858
399,645,839
22,892,153
(1,273,486)
421,264,506
569,267,078
(19,993,111)
-
27,527,816
576,801,783
$616,005,037
$16,702,938
($255,344)
-
$632,452,631
32
January 4, 2018 Regular Board Meeting Agenda Packet - Page 103 of 235
Page 53 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 5 — CAPITAL ASSETS (Continued)
Property, plant and equipment, and construction in progress are summarized below for the year
ended June 30, 2016:
61,147,639
4,544,975
(1,105,003)
64,587,611
Contributed sewer lines
55,204,677
Balance at
(2,000)
57,268,867
Transfers &
Balance at
151,179
June 30, 2015
Additions
Retirements
Adjustments
June 30, 2016
Capital assets not being depreciated:
210,866,708
Recycled water infrastructure
7,276,987
783,824
Land
$17,320,570
28,643,263
2,245,841
(5,000)
$17,320,570
Easements (intangible)
4,875,507
1,230,599
$60,900
4,936,407
Construction in Progress
13,958,646
$27,713,804
($364,072)
(16,827,396)
24,480,982
Total nondepreciated assets
36,154,723
27,713,804
(364,072)
(16,766,496)
46,737,959
Capital assets being depreciated:
399,645,839
Total capital assets being
Sewage collection system
331,167,382
573,563,756
(1,105,003)
11,349,941
341,412,320
Contributed sewer lines
153,091,464
1,774,168
(2,000)
- $616,005,037
154,863,632
Outfall sewers
11,339,298
32,276
11,371,574
Sewage treatment plant
320,717,418
(100,000)
2,743,527
323,360,945
Recycled water infrastructure
19,065,139
150,211
19,215,350
Pumpingstations
56,046,563
(5,000)
228,586
56,270,149
Buildings
42,412,648
42,412,648
Furniture and equipment
10,886,007
47,688
1,693,874
12,627,569
Motor vehicles
6,883,134
(72,485)
568,081
7,378,730
Total depreciated assets
951,609,053
1,821,856
(1,284,488)
16,766,496
968,912,917
Less accumulated depreciation
Sewage collection system
61,147,639
4,544,975
(1,105,003)
64,587,611
Contributed sewer lines
55,204,677
2,066,190
(2,000)
57,268,867
Outfall sewers
3,314,407
151,179
3,465,586
Sewage treatment plant
200,602,861
10,363,847
(100,000)
210,866,708
Recycled water infrastructure
7,276,987
783,824
8,060,811
Pumpingstations
28,643,263
2,245,841
(5,000)
30,884,104
Buildings
10,387,226
1,230,599
11,617,825
Furniture and equipment
7,049,851
1,139,039
8,188,890
Motor vehicles
4,418,386
359,536
(72,485)
4,705,437
Total accumulated depreciation
378,045,297
22,885,030
(1,284,488)
399,645,839
Total capital assets being
depreciated, net
573,563,756
(21,063,174)
16,766,496 569,267,078
Capital assets, net
$609,718,479
$6,650,630
($364,072)
- $616,005,037
33
January 4, 2018 Regular Board Meeting Agenda Packet - Page 104 of 235
Page 54 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 6 — LONG-TERM DEBT
A. Summary of Activity
The changes in the District's long-term obligations during the year ended June 30, 2017 consisted
of the following:
2009 Series A Certificates of Participation
Wastewater Revenue
3.45-3.78%, due 9/1/2029
2009 Series B Certificates of Participation
Wastewater Revenue
.40-3.79%, due 9/1/2029
1999 State Water Resources Control Board
Water Reclamation Loan
2.60%, due 3/31/2018
Total Long -Teri Debt
Less current portion
Original Amount
Issue Balance Balance due within
Amount June 30, 2016 Retirements June 30, 2017 one year
$19,635,000 $19,635,000 $19,635,000
34,490,000 14,165,000 $2,300,000 11,865,000 $2,405,000
2,916,872 360,134 177,757 182,377 182,377
34,160,134 $2,477,757 31,682,377 $2,587,377
(2,477,756) (2,587,377)
$31,682,378 $29,095,000
The changes in the District's long-term obligations during the year ended June 30, 2016 consisted
of the following:
2009 Series A Certificates of Participation
Wastewater Revenue
3.45-3.78%, due 9/1/2029
2009 Series B Certificates of Participation
Wastewater Revenue
.40-3.79%, due 9/1/2029
1999 State Water Resources Control Board
Water Reclamation Loan
2.60%, due 3/31/2018
Total Long -Term Debt
Less current portion
Original Amount
Issue Balance Balance due within
Amount June 30, 2015 Retirements June 30, 2016 one year
$19,635,000 $19,635,000 $19,635,000
34,490,000 16,375,000 $2,210,000 14,165,000 $2,300,000
2,916,872 533,385 173,251 360,134 177,756
36,543,385 $2,383,251 34,160,134 $2,477,756
(2,383,251) (2,477,756)
$34,160,134 $31,682,378
34
January 4, 2018 Regular Board Meeting Agenda Packet - Page 105 of 235
Page 55 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 6 — LONG-TERM DEBT (Continued)
B. Debt Service Requirements
The 2009 Revenue COP debt service requirements are as follows:
Fiscal Year
Series A
Fading
Series A
Series
B
Total
35% Tax
Net
June 30,
Principal
Interest
Principal
Interest
Principal
Interest
Subsidy
Total
2018
$1,190,840
$2,405,000
$424,175
$2,405,000
$1,615,015
($416,794)
$3,603,221
2019
1,190,840
2,480,000
329,483
2,480,000
1,520,323
(416,794)
3,583,529
2020
1,190,840
2,580,000
226,950
2,580,000
1,417,790
(416,794)
3,580,996
2021
$1,660,000
1,118,907
1,025,000
175,583
2,685,000
1,294,490
(391,617)
3,587,873
2022
1,715,000
1,028,060
1,070,000
124,167
2,785,000
1,152,227
(359,821)
3,577,406
2023-2027
9,550,000
3,540,805
2,305,000
78,208
11,855,000
3,619,013
(1,239,282)
14,234,731
2028-2030
6,710,000
524,874
6,710,000
524,874
(183,706)
7,051,168
Total
$19,635,000
$9,785,166
$11,865,000
$1,358,566
$31,500,000
$11,143,732
($3,424,808)
$39,218,924
As part of the Federal budget sequestration, the Internal Revenue Service (IRS) has announced
that, as of March 1, 2017, credit payments claimed by issuers of certain tax credit bonds,
including Build America Bonds, may be subject to a reduction of 6.9%.
C. 2009 Wastewater Revenue Certificates of Participation
On November 12, 2009 and December 3, 2009 the District issued two Certificates of Participation
(COP).
The 2009 Wastewater Revenue Certificates of Participation, Series A and Series B were issued
for $19,635,000 and $34,490,000, respectively. The Series A COP are federally taxable "Build
America Bonds" which have a direct 35% interest rate subsidy from the Federal Government.
Yields on this series range from 3.45% to 3.78%, net of the subsidy. The Series B COP are tax
exempt bonds that were used to refund the 1998 and 2002 bond issues and raise an additional $30
million in new proceeds with yields ranging from .40% to 3.79%.
The two bonds total $54,125,000, and are secured by a pledge of tax and net revenues of the
wastewater system. Principal payments began annually on September 1, 2010 with semi-annual
payments due on September 1 and March 1 of each year. Both bonds will be fully amortized as of
September 1, 2029. The refunded portion of the original bonds will be paid off based on the
original amortization schedule.
D. Water Reclamation Loan Contract
The District entered into a contract with the State of California State Water Resources Control
Board (Board), which advanced the District $2,916,872 for design and construction costs for
projects related to recycled water treatment programs.
35
January 4, 2018 Regular Board Meeting Agenda Packet - Page 106 of 235
Page 56 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 6 — LONG-TERM DEBT (Continued)
The District must repay advances from the Board over a 20 -year period beginning March 31,
1999, with an interest rate of 2.60%. There is one remaining payment consisting of $182,377 in
principal and $4,742 of interest for a total of $187,119, which will be made during fiscal year
2017-2018.
NOTE 7 — RISK MANAGEMENT
The District is exposed to various risks of loss including torts, theft of, damage to, and
destruction of assets, errors and omissions, injuries to employees, and natural disasters. To
manage these risks, the District joined with other entities to form the California Sanitation Risk
Management Authority (CSRMA), a public entity risk pool currently operating as a common risk
management and insurance program for the member entities. The purpose of CSRMA is to
spread the adverse effects of losses among the member entities and to purchase excess insurance
as a group, thereby reducing its cost. Through CSRMA, the District purchases property
insurance and workers' compensation insurance.
A. Insurance Coverage
The District's insurance coverage is as follows:
Type of Coverage Insurer
All -Risk Property:
Special Form Properly Alliant Property Insurance Program (APIP)
Crone National Union Fire Ins. Co.
Liability:
Fiduciary Liability Insurance
Pollution- General Liability
Environmental Exposure (GLEE)
Commercial Environment Excess
Special Excess Liability Coverage -ANNE
Excess Following Form Liability Policy
Employment Practice Liability
Workers' Compensation:
Excess Workers' Compensation
RLI Insurance Company
Aspen Specialty Ins. Co.
Aspen Specialty Ins. Co.
Security National Ins. Co.
Allied World Assurance Company (U. S), Inc.
Hiscox Insurance Co. (Bermuda) Ltd
Safety National Casualty Corporation
�T441
January 4, 2018 Regular Board Meeting Agenda Packet - Page 107 of 235
9,000,000 50,000
10,000,000 500,000
5,000,000 -
500,000 35,000
Statutory
Self Insured
Deductible Per
Limits
Occurrence
$553,087,101
$250,000
1,000,000
2,500
1,000,000
-
1,000,000
5,000
9,000,000 50,000
10,000,000 500,000
5,000,000 -
500,000 35,000
Statutory
Page 57 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 7 — RISK MANAGEMENT (Continued)
B. Provision for Uninsured Claims
The Governmental Accounting Standard Board (GASB) requires state and local governments to
record their liability for uninsured claims in their financial statements. The District's policy is to
maintain a reserve for claims of $1,500,000 which is equivalent to three claims at $500,000 per
occurrence. The District's actuary has calculated its potential liability as of June 30, 2017 to be
$807,079.
The District's uninsured claims activity and exposure relates primarily to its general and
automobile liability program. The District records its estimated liability for uninsured claims in
this area based on the results of periodic actuarial evaluations. The actuarial evaluations are
typically performed every two years. For intervening years, the liability for uninsured claims is
reviewed for adequacy based on claims activity during the intervening period.
For fiscal years ended June 30, 2017, 2016, and 2015, settlements have not exceeded insurance
coverage. Changes in the District's estimated liability for retained losses are summarized as
follows as of June 30:
Beginning balance
Provisions forclaims incurred in the current year
and changes in the liability for retained -
losses incurred in prioryears
Claims paid and/or adjustments
Ending balance
NOTE 8 — AGREEMENT WITH THE CITY OF CONCORD
2017 2016 2015
$1,000,000 $1,000,000 $1,000,000
(127,214) 888,745 499,956
(65,707) (888,745) (499,956)
$807,079 $1,000,000 $1,000,000
In 1974, the District and the City of Concord (the City) entered into a cost-sharing agreement
under which the District became responsible for providing sewage treatment facilities and
services to the City. Under this agreement, the City pays a service charge for its share of
operating, maintenance and administrative costs and makes a contribution for its share of
facilities and makes a contribution for its share of facilities capital costs expended. Service
charges and contributions to capital costs from the City totaled $13,581,253 and $4,476,961
respectively, for the year ended June 30, 2017, for a total of $18,058,214. Service charges and
contributions to capital costs from the City totaled $13,913,960 and $3,671,892, respectively, for
the year ended June 30, 2016, for a total of $17,585,852.
37
January 4, 2018 Regular Board Meeting Agenda Packet - Page 108 of 235
Page 58 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 9 — PENSION PLANS
A. Contra Costa County Employees' Retirement Association Pension Plan
Plan Descriptions — Substantially all District permanent employees are required to participate in
the Contra Costa County Employees' Retirement Association (CCCERA), a cost-sharing multiple
employer public defined benefit retirement plan (Plan), governed by the County Employee's
Retirement Law of 1937, as amended, and the California Public Employees' Pension Reform Act
of 2013 (PEPRA). The latest available actuarial and financial information for the Plan is for the
year ended December 31, 2016. CCCERA issues a publicly available financial report that
includes financial statements and supplemental information of the Plan. That report is available
by writing to Contra Costa County Employees' Retirement Association, 1355 Willow Way, Suite
221, Concord, CA 94520-5728 or by calling (925) 521-3960.
Benefits Provided — The Plan provides for retirement, disability, and death and survivor benefits.
Annual cost of living (COL) adjustments to retirement allowances can be granted by the
Retirement Board as provided by State statutes. Retirement benefits are based on age, length of
service, date of membership and final average salary.
Subject to vested status, employees can withdraw contributions plus interests credited, or leave
them as a deferred retirement when they terminate, or transfer to a reciprocal retirement system.
The Plans' provisions and benefits in effect at June 30, 2017, are summarized as follows:
Membership date
Benefit formula
Benefit vesting schedule
Benefit payments
Retirement age
Monthly benefits, as a % of eligible compensation
Required employee contribution rates
Required employer contribution rates
Mseellaneous
On or after
Prior to January 1, 2013 January 1, 2013
2% at 55
10 years service
monthly for life
50
0% to 100%
11.76%
55.36%
2% at 62
5 years service
monthly for life
52
No limit
12.06%
50.43%
Contributions — The Plan requires employees to pay a portion of the basic retirement benefit and
a portion of future COL costs. However, the District has paid part of the employees' basic
contributions in accordance with the Memorandum of Understanding (MOU). Employees must
pay the COL portion of the employee rate. For the year ended June 30, 2017, the contributions to
the Plan were $17,854,714.
38
January 4, 2018 Regular Board Meeting Agenda Packet - Page 109 of 235
Page 59 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 9 — PENSION PLANS (Continued)
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to
Pensions - As of June 30, 2017, the District reported net pension liabilities for its proportionate
share of the net pension liability of the Plan as follows:
Miscellaneous
Proportionate Share of Net Pension Liability
2017 2016
$87,847,116 $91,746,888
Total Net Pension Liability $87,847,116 $91,746,888
The District's net pension liability for the Plan is measured as the proportionate share of the net
pension liability. The net pension liability of the Plan is measured as of December 31, 2016, and
the total pension liability for the Plan used to calculate the net pension liability was determined by
an actuarial valuation as of December 31, 2015 rolled forward to December 31, 2016 using
standard update procedures. The District's proportion of the net pension liability was based on a
projection of the District's long-term share of contributions to the pension plan relative to the
projected contributions of all participating employers, actuarially determined. The District's
proportionate share of the net pension liability for the Plan as of December 31, 2015, 2016, and
2017 were as follows:
Reporting Date for
Proportion of the
Employer under GASB 68
Net Pension
as of December 31
Liability
2015
7.488%
2016
6.088%
2017
6.273%
For the year ended June 30, 2017, the District recognized negative pension expense of
$4,080,558. At June 30, 2017, the District reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Pension contributions subsequent to measurement date
Differences between expected and actual experience
Changes of assumptions or other inputs
Deferred Outflows Deferred Inflows
of Resources of Resources
$9,004,848
$7,205,850
2,541,979 1,661
Change in proportion and differences between employer
contributions and proportionate share of contributions 2,023,895 8,844,394
Net difference between projected and actual earnings
on pension plan investments
Total
39
15,507,481
$29,078,203 $16,051,905
January 4, 2018 Regular Board Meeting Agenda Packet - Page 110 of 235
Proportionate share of the
Plan Fiduciary Net
Proportionate share
Net Pension Liability as a
Pension as a
of Net Pension
Covered
percentage of its covered
percentage of the Total
Liability
Payroll
payroll
Pension Liability
$89,535,510
$27,930,233
332.77%
73.86%
91,746,888
30,552,659
315.70%
74.14%
87,847,116
32,501,073
278.14%
76.44%
For the year ended June 30, 2017, the District recognized negative pension expense of
$4,080,558. At June 30, 2017, the District reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Pension contributions subsequent to measurement date
Differences between expected and actual experience
Changes of assumptions or other inputs
Deferred Outflows Deferred Inflows
of Resources of Resources
$9,004,848
$7,205,850
2,541,979 1,661
Change in proportion and differences between employer
contributions and proportionate share of contributions 2,023,895 8,844,394
Net difference between projected and actual earnings
on pension plan investments
Total
39
15,507,481
$29,078,203 $16,051,905
January 4, 2018 Regular Board Meeting Agenda Packet - Page 110 of 235
Page 60 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 9 — PENSION PLANS (Continued)
At June 30, 2016, the District reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Pension contributions subsequent to measurement date
Differences between expected and actual experience
Changes of as sumptions or other inputs
Change in proportion and differences between employer
contributions and proportionate share of contributions
Net difference between projected and actual earnings
on pension plan investments
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$9,349,978
$9,262,284
3,422,162 2,601
1,387,107 12,354,075
20,305,225
$34,464,472 $21,618,960
The $9,004,848 reported as deferred outflows of resources related to contributions subsequent to
the measurement date will be recognized as a reduction of the net pension liability in the year
ended June 30, 2018.
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized as pension expense as follows:
Year Ended
June 30
2018
2019
2020
2021
2022
40
Annual
Amortization
($164,716)
630,717
3,609,732
(54,283)
January 4, 2018 Regular Board Meeting Agenda Packet - Page 111 of 235
Page 61 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 9 — PENSION PLANS (Continued)
Actuarial Assumptions — The total pension liabilities in the December 31, 2015 actuarial
valuations were determined using the following actuarial assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Amortization Method
Actuarial Assumptions:
Discount Rate
Inflation Rate
Payroll Growth
Projected Salary Increase
Cost of Living Adjustments
Investment Rate of Return
Mortality
Miscellaneous
December 31, 2015
December 31, 2016
Entry Age Actuarial Cost Method
Level percent of payroll
7.00%
2.75%
2.75%(l)
4.00% -13.25% (2)
2.75%
7.00%(3)
RP -2014 Healthy Annuitant Mortality Table
(1) Plus "across the board" real salary increases of 0.5% per year
(2) Vary by service, including inflation
(3) Net of pension plan investment expenses, including inflation
Discount Rate — The discount rate used to measure the total pension liability was 7% for the Plan.
The projection of cash flows used to determine the discount rate assumed plan member
contributions will be made at the current contribution rate and that employer contributions will be
made at rates equal to the actuarially determined contribution rates. For this purpose, only
employee and employer contributions that are intended to fund benefits for current plan members
and their beneficiaries are included. Projected employer contributions that are intended to fund
the service costs for future plan members and their beneficiaries, as well as projected
contributions from future plan members, are not included. Based on those assumptions, the
pension plan's fiduciary net position was projected to be available to make all projected future
benefit payments for current plan members. Therefore, the long-term expected rate of return on
pension plan investments was applied to all periods of projected benefit payments to determine
the total pension liability as December 31, 2016.
41
January 4, 2018 Regular Board Meeting Agenda Packet - Page 112 of 235
Page 62 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 9 — PENSION PLANS (Continued)
The long-term expected rate of return on pension plan investments was determined in 2017 using
a building-block method in which expected future real rates of return (expected returns, net of
inflation) are developed for each major asset class. The target allocation and projected arithmetic
real rates of return for each major asset class, after deducting inflation, but before investment
expenses, used in the derivation of the long-term expected investment rate of return assumption
are summarized in the following table:
A change in the discount rate would affect the measurement of the Total Pension Liability (TPL).
A lower discount rate results in a higher TPL and higher discount rates results in a lower TPL.
Because the discount rate does not affect the measurement of assets, the percentage change in the
Net Pension Liability (NPL) can be very significant for a relatively small change in the discount
rate. The table below shows the sensitivity of the NPL to a one percent decrease and a one percent
increase in the discount rate:
Miscellaneous
1% Decrease 6.00%
Net Pension Liability $139,044,846
Current Discount Rate 7.00%
Net Pension Liability $87,847,116
1% Increase 8.00%
Net Pension Liability $46,135,827
42
January 4, 2018 Regular Board Meeting Agenda Packet - Page 113 of 235
Long -Term
Target
Expected Real
Asset Class
Allocation
Rate of Return
Large Cap U.S. Equity
6%
5.75%
Developed International Equity
10%
6.99%
Emerging Markets Equity
14%
8.95%
Short -Term Govt/Credit
24%
0.20%
U.S. Treasury
2%
0.30%
Real Estate
7%
4.45%
Cash & Equivalents
1%
-0.46%
Risk Diversifying Strategies
2%
4.30%
Private Credit
17%
6.30%
Private Equity
17%
8.10%
Total
100%
A change in the discount rate would affect the measurement of the Total Pension Liability (TPL).
A lower discount rate results in a higher TPL and higher discount rates results in a lower TPL.
Because the discount rate does not affect the measurement of assets, the percentage change in the
Net Pension Liability (NPL) can be very significant for a relatively small change in the discount
rate. The table below shows the sensitivity of the NPL to a one percent decrease and a one percent
increase in the discount rate:
Miscellaneous
1% Decrease 6.00%
Net Pension Liability $139,044,846
Current Discount Rate 7.00%
Net Pension Liability $87,847,116
1% Increase 8.00%
Net Pension Liability $46,135,827
42
January 4, 2018 Regular Board Meeting Agenda Packet - Page 113 of 235
Page 63 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 9 — PENSION PLANS (Continued)
B. Deferred Compensation Plan
District employees may defer a portion of their compensation under a District sponsored Deferred
Compensation Plan created in accordance with Internal Revenue Code Section 457. The plan
was established by the District's Board of Directors and any amendments to the plan must be
authorized by the Board of Directors. Under this plan, participants are not taxed on the deferred
portion of their compensation until it is distributed to them; distributions may be made only at
termination, retirement, death, or in an emergency as defined by the plan. The District does not
make contributions to the plan.
The plan's 457 assets are held in trust with ICMA Retirement Corporation for the exclusive
benefit of the participants and are not included in the District's financial statements.
C. 401 (a) Defined Contribution Plan
The District also contributes to a money purchase plan created in accordance with Internal
Revenue Code section 401(a). The plan was established by the District's Board of Directors and
any amendments to the plan must be authorized by the Board. Contributions to the plan are made
in accordance with a memorandum of understanding stating that in lieu of making payments to
Social Security, the District contributes to the 401(a) Plan an amount equal to that which would
have been contributed to Social Security on behalf of its employees as long as the District is not
required to participate in Social Security. The District contributed $1,964,899 and $1,856,025 to
the Plan during the years ended June 30, 2017 and 2016, respectively.
The 401(a) money purchase plan assets are held in trust with ICMA Retirement Corporation for
the exclusive benefit of the participants and are not included in the District's financial statements.
NOTE 10 — POST EMPLOYMENT HEALTH CARE BENEFITS
A. Plan Description
The District's defined benefit post employment healthcare plan (DPHP) provides medical benefits
to eligible retired District employees and beneficiaries. DPHP is part of the Public Agency
portion of the Public Agency Retirement System (PARS), an agent multiple -employer plan
administered by PARS, which acts as a common investment and administrative agent for
participating public employees within the State of California. A menu of benefit provisions as
well as other requirements is established by the State statute with the Public Employees'
Retirement Law. DPHP selects optional benefit provisions from the benefit menu by contract
with PARS and adopts those benefits through District resolution. PARS issues a separate
Comprehensive Annual Financial Report. Copies of the PARS annual financial report may be
obtained from PARS, 4350 Von Karman Ave., Suite 100, Newport Beach, CA 92660, by calling
1(800) 540-6369, or by emailing info@pars.org.
43
January 4, 2018 Regular Board Meeting Agenda Packet - Page 114 of 235
Page 64 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 10 — POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
B. Funding Policy
GASB Statement No. 45 set rules for computing the employer's expense for retiree benefits other
than pension, called OPEB. The expense, called the annual OPEB Cost (AOC), is determined
similarly to pensions. The annual required contribution (ARC) of the employer, represents a level
of funding that, if paid on an ongoing basis, is projected to cover normal annual costs each year
and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30
years.
When an agency contributes more than the ARC, there is a net OPEB asset (NOA); when the
contribution is less than the ARC, a net OPEB obligation (NOO) results. The District had a net
OPEB asset of $3,652,571 and $1,108,244 as of June 30, 2017 and 2016, respectively.
Because of the volatility of the investment market, the District Board voted to make monthly
installments into the OPEB Trust to take advantage of dollar -cost -averaging.
C. Annual OPEB Cost and Net OPEB Asset
For 2017, the District's annual OPEB cost (expense) was $7,235,000. The District contributed
$4,750,627 for retiree health care premiums and $5,028,700 to the PARS trust for a total of
$9,779,327 The following table summarizes the changes in the District's net OPEB (Asset) at
June 30, 2017:
44
January 4, 2018 Regular Board Meeting Agenda Packet - Page 115 of 235
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 10 — POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Net OPEB Obligation (Asset) at June 30, 2015
Annual Required Contribution (ARC)
$7,866,000
Interest on Net OPEB Asset
(79,000)
Adjustment to ARC
103,000
Annual OPEB Cost (AOC)
7,890,000
Contributions Made:
7,235,000
Health care premiums paid
(5,159,879)
Contributions to PARS trust
(2,631,600)
Increase (decrease) in net OPEB obligation
Net OPEB Obligation (Asset) at June 30, 2016
Annual Required Contribution (ARC)
7,866,000
Interest on Net OPEB Asset
(69,000)
Implicit Subsidy
(654,000)
Adjustment to ARC
92,000
Annual OPEB Cost (AOC)
7,235,000
Contributions Made:
Net OPEB
Health care premiums paid
(4,750,627)
ARC Contributions to PARS trust
(2,528,700)
Additional Contributions to PARS trust
(2,500,000)
Increase (decrease) in net OPEB obligation
$8,125,000
Net OPEB Obligation (Ass et) at June 30, 2017
Page 65 of 98
($1,206,765)
98,521
(1,108,244)
(2,544,327)
($3,652,571)
The District's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan,
and the OPEB asset for the past three years are presented below:
45
January 4, 2018 Regular Board Meeting Agenda Packet - Page 116 of 235
Percentage of
Annual OPEB
Actual
AOC
Current Year
Net OPEB
Fiscal Year
Cost (AOC)
Contribution
Contributed
AOC
Obligation (Asset)
June 30, 2015
$8,125,000
$8,124,087
100%
$913
($1,206,765)
June 30, 2016
7,890,000
7,791,479
99%
98,521
(1,108,244)
June 30, 2017
7,235,000
9,779,327
135%
(2,544,327)
(3,652,571)
45
January 4, 2018 Regular Board Meeting Agenda Packet - Page 116 of 235
Page 66 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 10 — POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
D. Funded Status and Funding Progress
Per PARS, trust assets as of June 30, 2017 and 2016, including trust contributions and interest,
total $52,328,367 and $42,703,154, respectively. Actuarial valuations of an ongoing plan involve
estimates of the value of reported amounts and assumptions about the probability of occurrence
of events far into the future. Examples include assumptions about future employment, mortality,
and the health care cost trend. The funded status of the plan and the annual required
contributions of the employer are subject to continual revision, as actual results are compared
with past expectations and new estimates are made about the future. The schedule of funding
progress information below and the required supplementary information immediately following
the notes to the financial statements presents multiyear trend information that shows whether the
actuarial value of the plan assets is increasing or decreasing over time, relative to the actuarial
liabilities for benefits. Trend data from the most recent actuarial study is presented below:
July 1, 2016 $48,913,000 $102,943,000
E. Actuarial Methods and Assumptions
$54,030,000 47.51% $32,501,073 166%
Projections for benefits for financial reporting purposes are based on the substantive plan (the
plan as understood by the employer and plan members) and include the types of benefits provided
at the time of each valuation as well as the historical pattern of sharing benefit costs between the
employer and plan members. The actuarial methods and assumptions used include techniques
that are designed to reduce short-term volatility in actuarial accrued liabilities and actuarial value
of assets, consistent with the long-term perspective of the calculations.
The District's most recent actuarial valuation was prepared as of July 1, 2016 and was finalized
on February 17, 2017. The July 1, 2014 actuarial valuation results are budgeted in fiscal year
2016-17.
46
January 4, 2018 Regular Board Meeting Agenda Packet - Page 117 of 235
Unfunded
Unfunded
(Overfunded)
Cost Method
(Overfunded)
Actuarial
Actuarial
Actuarial
Actuarial
Covered Payroll
Liability as
Actuarial Value of
Accrued
Accrued
Funded (Active Plan
Percentage of
Valuation Assets
Liability
Liability
Ratio Members)
Covered Payroll
Date (A)
(B)
(B - A) UAAL
(AB) (C)
[(A — B)/Cl
July 1, 2016 $48,913,000 $102,943,000
E. Actuarial Methods and Assumptions
$54,030,000 47.51% $32,501,073 166%
Projections for benefits for financial reporting purposes are based on the substantive plan (the
plan as understood by the employer and plan members) and include the types of benefits provided
at the time of each valuation as well as the historical pattern of sharing benefit costs between the
employer and plan members. The actuarial methods and assumptions used include techniques
that are designed to reduce short-term volatility in actuarial accrued liabilities and actuarial value
of assets, consistent with the long-term perspective of the calculations.
The District's most recent actuarial valuation was prepared as of July 1, 2016 and was finalized
on February 17, 2017. The July 1, 2014 actuarial valuation results are budgeted in fiscal year
2016-17.
46
January 4, 2018 Regular Board Meeting Agenda Packet - Page 117 of 235
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 10 — POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
The following is a summary of the actuarial assumptions and methods:
Valuation Date
Actuarial Cost Method
Amortization Method
Average Remaining Period
Actuarial Assumptions:
Inflation Rate
Investment Rate of Return
Projected Salary Increases
Post -Retirement Benefit Increases
Health Care Cost Trend Rates
F. OPEB Trust Fund
July 1, 2016
Entry Age Level Dollar
Level Dollar/Closed
18 years
3.00%
6.25%
2.75%
No planned changes
Medical - 7.2% grading to 5% in 2021 - 22
Medicare Part B - same as medical trend
Dental - 4%
Page 67 of 98
Plan Administration — The District administers the District's retiree healthcare benefit plan — a
single -employer defined benefit OPEB plan that provides healthcare benefits for eligible
employees of the District.
Fiscal Year Ended
6/30/2017
Plan Type Single Employer
OPEB Trust Yes
Special Funding Situation No
Nonemployer Contributing Entity No
Plan Membership — As described in the table in Note 10, plan membership varies based on
different employee bargaining groups. As of June 30, 2017, membership in the plan consisted of
the following:
Number of
Covered Employees
Retirees and beneficiaries receiving benefits
Active plan members
Total
47
January 4, 2018 Regular Board Meeting Agenda Packet - Page 118 of 235
258
276
534
Page 68 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 10 — POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Benefits Provided and Contribution Information — Post -employment healthcare and similar
benefit allowances are provided to eligible employees who retire from the District or to their
surviving spouses. As noted in the table above, there were 534 participants receiving these
healthcare benefits as of June 30, 2017.
Contribution Information — PARS establishes rates for each employer based on an actuarially
determined rate for each employer. For the year ended June 30, 2017, the District's average
contribution rate was 32.1% of covered -employee payroll. Plan members are not required to
contribute to the plan.
For the year ended June 30, 2017, the District contributed $10,433,327 in relation to the
actuarially determined contribution.
Investment Policy — PARS offers different investment portfolios as part of the investment
vehicle. The District invests in "Moderate" portfolio; the primary goal of the Capital
Appreciation objective is growth of income and principal. The major portions of the assets are
invested in the equity securities and market fluctuations are expected. The portfolio is
constructed to control risk through four layers of diversification — asset classes (cash, fixed
income, equity), investment styles (large cap, small cap, international, value, growth), managers
and securities. Disciplined mutual fund selections and monitoring helps to drive return potential
while reducing portfolio risk.
The following is the District's adopted asset allocation policy as of June 30, 2017:
Target
Allocation
Asset Class Component:
Equity 50%
Find Income 45%
Cash 5%
Total 100%
Investment Concentration — As of June 30, 2017, the District did not have investments in any
one organization exceeding 5% of the District's investments.
Investment Rate of Return — For the year ended June 30, 2017, the annual money -weighted rate
of return on investments, net of investment expense, was 6.25%. The money -weighted rate of
return expresses investment performance, net of investment expense, adjusted for the changing
amounts actually invested.
48
January 4, 2018 Regular Board Meeting Agenda Packet - Page 119 of 235
Page 69 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 10 — POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Net OPEB Liability — The components of the net OPEB liability of the District at June 30, 2017,
were as follows:
Measurement Date - 6/30/2017
Total OPEB Liability
Plan Fiduciary Net Position (FNP)
District's Net OPEB Liability
Plan Fiduciary Net Position as a
Percentage of the Total OPEB Liability
Fis cal Year Faded
6/30/17
$ 102,752,608
(52,328,367)
$ 50,424,241
50.9%
During fiscal year 2016-17, the District implemented GASB Statement No. 74, as discussed in
Note LM., which required additional footnote disclosures and the reporting of the Fiduciary Fund
Assets in the OPEB Trust Fund. GASB Statement No. 75 will be effective for fiscal year 2017-
18 and will require the District to record the Total Unfunded OPEB Liability on the Statement of
Net Position.
Actuarial Assumptions — The total OPEB liability was determined by an actuarial valuation as of
June 30, 2017, using the following actuarial assumptions:
Measurement Date
Funding Policy
Trend
Healthcare Participation for Future Retirees
Actuarial Assumptions:
Discount Rate
Inflation
Investment Rate of Return
Mortality
June 30, 2017
Full pre -funding to PARS trust
PARS portfolio: Moderate
Pre -Medicare - 7.01/6 for 2017, decreasing to
5.0% for 2021 and later
Medicare - 7.2% for 2017, decreasing to
5.0% for 2021 and later
Not in RHSA: 95%
In RHSA: 50% (implied subsidy only)
6.25%
3.00%
6.25% (2)
Derived using CCCERA's Membership Data for all Funds (3)
(1) Crossover analysis showed benefit payments always fully funded by plan assets
(2) Net of investment expenses
(3) The mortality table used was developed based on CCCERA's specific data. The table includes 20 years of mortality improvements
using RP -2000 Combined Healthy Mortality Table projected with Scale AA to 2030. For more details on this table, please refer to
the CCCERA 2012-2014 experience study report available on the CCCERA website.
January 4, 2018 Regular Board Meeting Agenda Packet - Page 120 of 235
Page 70 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 10 — POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
The target allocation and projected arithmetic real rates of return, after deducting inflation, but
before investment expenses, used in the derivation of the long-term expected investment rate of
return assumption for each major asset class are summarized below:
Discount Rate — The discount rates used to measure the total OPEB liability were 6.25% as of
June 30, 2017. The projection of cash flows used to determine the discount rate assumed that
District contributions will be made at rates equal to the actuarially determined contribution rates.
Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available
to make all projected future benefit payments of current plan members. Therefore, the long term
expected rate of return on OPEB plan investments was applied to all periods of projected benefit
payments to determine the total OPEB liability.
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate — In accordance with
GASB 74, regarding the disclosure of the sensitivity of the net OPEB liability to changes in the
discount rate, the following table presents the net OPEB liability of the Plan as of June 30, 2017,
calculated using the discount rate of 6.25%, as well as what the Plan's net OPEB liability would
be if it were calculated using a discount rate that is 1 -percentage -point lower or 1 -percentage
point higher than the current rate:
Discount Rate
1% Decrease Current 1% Increase
(5.25%) (6.25%) (7.25%)
Net OPEB Liability $ 63,678,892 $ 50,424,241 $ 39,523,773
50
January 4, 2018 Regular Board Meeting Agenda Packet - Page 121 of 235
Target
Expected Real
Allocation
Rate of Return
Asset Class Component:
Equity
50%
5.35%
Fixed Income
45%
1.55%
Cash
5%
0.45%
Assumed Long -Term Rate of Inflation
3.00%
Assumed Long -Term Investment Expenses
0.30%
Discount Rate
6.25%
Discount Rate — The discount rates used to measure the total OPEB liability were 6.25% as of
June 30, 2017. The projection of cash flows used to determine the discount rate assumed that
District contributions will be made at rates equal to the actuarially determined contribution rates.
Based on those assumptions, the OPEB plan's fiduciary net position was projected to be available
to make all projected future benefit payments of current plan members. Therefore, the long term
expected rate of return on OPEB plan investments was applied to all periods of projected benefit
payments to determine the total OPEB liability.
Sensitivity of the Net OPEB Liability to Changes in the Discount Rate — In accordance with
GASB 74, regarding the disclosure of the sensitivity of the net OPEB liability to changes in the
discount rate, the following table presents the net OPEB liability of the Plan as of June 30, 2017,
calculated using the discount rate of 6.25%, as well as what the Plan's net OPEB liability would
be if it were calculated using a discount rate that is 1 -percentage -point lower or 1 -percentage
point higher than the current rate:
Discount Rate
1% Decrease Current 1% Increase
(5.25%) (6.25%) (7.25%)
Net OPEB Liability $ 63,678,892 $ 50,424,241 $ 39,523,773
50
January 4, 2018 Regular Board Meeting Agenda Packet - Page 121 of 235
Page 71 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 10 — POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Sensitivity of the Net OPEB Liability to Changes in the Healthcare Cost Trend Rates — The
following presents the net OPEB liability of the District, as well as what the District's net OPEB
liability would be if it were calculated using healthcare cost trend rates that are 1 -percentage -
point lower or 1 -percentage -point higher than the current healthcare cost trend rates:
Healthcare Trend Rate
1% Decrease Current 1% Increase
6.00% decreasing 7.00% decreasing 8.00% decreasing
to 4.00% to 5.00% to 6.00%
Net OPEB Liability $ 39,132,526 $ 50,424,241 $ 64,225,602
NOTE 11— NET POSITION
Net Position is the excess of all the District's assets and deferred outflows of resources over all its
liabilities and deferred inflows of resources, regardless of fund. Net Position is divided into three
captions:
Net Investment in Capital Assets describes the portion of Net Position which is represented by
the current net book value of the District's capital assets, less the outstanding balance of any debt
issued to finance these assets.
Restricted describes the portion of Net Position which is restricted as to use by the terms and
conditions of agreements with outside parties, governmental regulations, laws, or other
restrictions which the District cannot unilaterally alter.
Unrestricted describes the portion of Net Position which is not restricted as to use.
NOTE 12 — LEASE COMMITMENTS
The District leases various facilities and equipment under operating leases. Following is a
summary of operating lease commitments as of June 30, 2017:
Fiscal Year Office
Ending Equipment Facilities Total
2018 $248,212 $33,922 $282,134
Total $248,212 $33,922 $282,134
Total rental expense for the fiscal years ended June 30, 2017 and 2016 was $168,336 and
$279,636, respectively.
51
January 4, 2018 Regular Board Meeting Agenda Packet - Page 122 of 235
Page 72 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2017 and 2016
NOTE 13 — COMMITMENTS AND CONTINGENCIES
Commitments and contingencies, undeterminable in amount, include normal recurring pending
claims and litigation. In the opinion of management, based upon discussion with legal counsel,
there is no pending litigation which is likely to have a material adverse effect on the financial
position of the District.
Claims and losses are recorded when they are reasonably probable of being incurred and the
amount is estimable. Insurance proceeds and settlements are recorded when received.
The District has a number of purchase commitments for ongoing operating and capital projects
that involve multi-year contracts. Purchase commitments related to these multi-year contracts are
approximately $16,006,727 and $21,187,890 as of June 30, 2017 and 2016, respectively.
52
January 4, 2018 Regular Board Meeting Agenda Packet - Page 123 of 235
Page 73 of 98
REQUIRED SUPPLEMENTARY INFORMATION
53
January 4, 2018 Regular Board Meeting Agenda Packet - Page 124 of 235
CENTRAL CONTRA COSTA SANITARY DISTRICT
Cost -Sharing Multiple Employer Defined Benefit Retirement Plan
As of fiscal year ended June 30, 2017
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
Last 10 Years*
2017 2016
Net Change in Total Pension Liability
Service Cost
Interest on the Total Pension Liability
Expensed portion ofcurrent-period changes in proportion and
difference between employer's contributions and proportionate
share of contributions
Expensed portion ofcurrent-period benefit changes
Expensed portion ofcurrent-period difference between expected
and actual experience in the Total Pension Liability
Expensed portion ofcurrent-period changes ofassumptions or
other inputs
Member contnbutions
Projected earnings on plan investments
Expensed portion of current -period differences between actual and
projected earnings on plan investments
Administrative expense
Other
Recognition ofbeginning ofyear deferred outflows ofresources as
pension expense
Recognition ofbeginning ofyear deferred inflows ofresources as
pension expense
Net amortization of deferred amounts from changes in proportion
and differences between employer's contributions and
proportionate share ofcontributions
Net change in total pension liability
Reconciliation of Net Pension Liability
Beginning Net Pension Liability
Pension expense
Employer contributions
New net deferred inflows/outflows
Change in allocation of prior deferred inflows/outflows
New net deferred flows due to change in proportion
Recognition of prior deferred inflows/outflows
Recognition of prior deferred flows due to change in proportion
Net pension liability - ending
Plan fiduciary net position as a percentage ofthe total pension
liability
Page 74 of 98
2015
$ 12,802,725 $
11,744,271 $
14,396,402
37,390,012
35,450,291
42,024,521
327,813
(3,509,681)
533,503
(275,839)
(836,604)
(2,988,813)
543,221
972,205
(1,231)
(5,608,003)
(5,196,358)
(5,860,025)
(30,774,476)
(30,472,528)
(34,980,271)
(83,909)
5,198,286
(200,059)
536,021
494,025
522,670
(563,858)
40,685
-
6,402,259
(3,558,862) (2,593,424)
(2,976,178)
$ 13,617,705 $
533,503 -
11,824,671 $ 13,446,697
$ 91,746,888 $
89,535,510 $
110,183,830
13,617,705
11,824,671
13,446,697
(18,043,391)
(22,752,611)
(24,451,234)
(1,320,379)
21,270,461
(11,564,393)
543,221
2,163,011
-
1,170,291
(12,354,075)
1,920,610
(2,843,397)
2,593,424
-
2,976,178
(533,503)
-
$ 87,847,116 $
91,746,888 $
89,535,510
76.44%
74.14%
73.86%
Covered payroll $ 32,501,073 $ 30,552,659 $ 27,930,233
Net pension liability as percentage of covered payroll 278.14% 315.70% 332.77%
Notes to Schedule:
Changes in assupEp&ns - In 2017, amounts reported as changes in assumptions resulted primarily from adjustments to
expected retirement ages of general employees.
* Fiscal year 2015 was the 1st year of implementation, therefore only three years are shown.
54
January 4, 2018 Regular Board Meeting Agenda Packet - Page 125 of 235
CENTRAL CONTRA COSTA SANITARY DISTRICT
Cost -Sharing Multiple Employer Defined Benefit Retirement Plan
As of fiscal year ending June 30, 2017
SCHEDULE OF CONTRIBUTIONS
Last 10 Years*
Actuarially determined contribution
Contributions in relation to the actuarially determined contributions
Contribution deficiency (excess)
Covered payroll
Contributions as a percentage of covered -employee payroll
Notes to Schedule
Measurement Date:
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation
Salary increases
Investment rate of return
Retirement age
Mortality
2017 2016
Page 75 of 98
2015
$ 18,043,391 $ 22,752,611 $ 24,451,234
18,043,3 91 22,752,611 24,451,234
$ 32,501,073 $ 30,552,659 $ 27,930,233
55.52%
12/31/2016
74.47% 87.54%
Entry age
Level percentage of payroll, closed
7 years * *
5 -year semi-annually
2.75%
4%-13.25%
7.0%, net of pension plan investment
expense, including inflation
50 years Classic, 52 years PEPRA
RP -2014 Healthy Annuitant Mortality Table
with setbacks and forwards
* Fiscal year 2015 was the 1st year of implementation, therefore only three years are shown.
** Remaining balance of December 31, 2007 UAAL is amortized over a fixed (decreasing or closed) period
with 7 years remaining as of December 31, 2015. Any changes in UAAL after December 31, 2007 will be
separately amortized over a fixed 18 -year period effective with that valuation. Any changes in UAAL due
to plan amendments will be amortized over a 10 -year fixed period effective with that valuation.
55
January 4, 2018 Regular Board Meeting Agenda Packet - Page 126 of 235
Page 76 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
Post -Retirement Health Care Defined Benefit Plan
As of fiscal year ended June 30, 2017
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS
Last 10 Years*
Plan Fiduciary Net Position
Contributions - employer
Contributions - employee
Net investment income
Benefit payments including refunds
Administrative expense
Net change in Fiduciary Net Position
Beginning Fiduciary Net Position
Plan Fiduciary Net Position - ending (b)
$ 10,433,327
4,735,576
(5,404,627)
(139,063)
9,625,213
42,703,154
$ 52,328,367
Net OPEB Liability - ending (a) - (b) $ 50,424,241
Plan fiduciary net position as a percentage of the total OPEB liability 50.9%
Covered -employee payroll $ 32,501,073
Net pension OPEB as percentage of covered -employee payroll 155%
Notes to Schedule:
Benefit changes: None
Changes in assumptions: None
* Fiscal year 2017 was the 1 st year of implementation, therefore only one year is shown.
6V
January 4, 2018 Regular Board Meeting Agenda Packet - Page 127 of 235
2017
Net Change in Total OPEB Liability
Service cost
$ 2,295,667
Interest
6,203,230
Difference between expected and actual experience
-
Changes of assumptions
-
Changes of benefit terms
-
Benefit payments including refunds
(5,404,627)
Net change in Total OPEB Liability
3,094,270
Beginning Net OPEB Liability
99,658,338
Net OPEB Liability - ending (a)
$ 102,752,608
Plan Fiduciary Net Position
Contributions - employer
Contributions - employee
Net investment income
Benefit payments including refunds
Administrative expense
Net change in Fiduciary Net Position
Beginning Fiduciary Net Position
Plan Fiduciary Net Position - ending (b)
$ 10,433,327
4,735,576
(5,404,627)
(139,063)
9,625,213
42,703,154
$ 52,328,367
Net OPEB Liability - ending (a) - (b) $ 50,424,241
Plan fiduciary net position as a percentage of the total OPEB liability 50.9%
Covered -employee payroll $ 32,501,073
Net pension OPEB as percentage of covered -employee payroll 155%
Notes to Schedule:
Benefit changes: None
Changes in assumptions: None
* Fiscal year 2017 was the 1 st year of implementation, therefore only one year is shown.
6V
January 4, 2018 Regular Board Meeting Agenda Packet - Page 127 of 235
Page 77 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
Post -Retirement Health Care Defined Benefit Plan
As of fiscal year ending June 30, 2017
SCHEDULE OF CONTRIBUTIONS
Last 10 Years*
Actuarially determined contribution
Contributions in relation to the actuarially determined contributions
Contribution deticiency (excess)
Covered -employee payroll
Contributions as a percentage of covered -employee payroll
Notes to Schedule
Measurement Date:
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation
Healthcare cost trend rates
Salary increases
Investment rate of return
Retirement age
Mortality
Benefit changes: None
Changes in assumptions: None
2017
$ 7,866,000
10,433,327
$ (2,567,327)
$ 32,501,073
32.1%
6/30/2017
Entry age, level dollar
Level dollar/closed
18 years
5 -year rolling period
3.00%
Pre -Medicare - 8.0% for 2015, decreasing to 5.0%
for 2021 and later
Medicare- 8.3% for 2015, decreasing to 5.0% for
2021 and later
3.25%
6.25%, net of plan investment expense
57.2
Mortality improvement projected to
year 2030 with Scale AA
* Fiscal year 2017 was the 1 st year of implementation, therefore only one year is shown.
57
January 4, 2018 Regular Board Meeting Agenda Packet - Page 128 of 235
Page 78 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
Post -Retirement Health Care Defined Benefit Plan
Schedule of Funding Progress
As of fiscal year ended June 30, 2017
Last Three Valuations
58
January 4, 2018 Regular Board Meeting Agenda Packet - Page 129 of 235
Unfunded
(Overfunded)
Cost Method
(Overfunded)
Actuarial
Actuarial
Actuarial
Actuarial
Covered Payroll
Liability as
Actuarial
Value of
Accrued
Accrued
Funded
(Active Plan
Percentage of
Valuation
Assets
Liability
Liability
Ratio
Members)
Covered Payroll
Date
(A)
(B)
(B—A)UAAL
(AB)
(C)
[(A—B)/C]
July 1, 2012
$22,481,000
$100,498,000
$78,017,000
22.37%
$24,305,548
321%
July 1, 2014
33,695,000
103,904,000
70,209,000
32.43%
27,930,233
251%
July 1, 2016
48,913,000
102,943,000
54,030,000
47.51%
32,501,073
166%
58
January 4, 2018 Regular Board Meeting Agenda Packet - Page 129 of 235
Page 79 of 98
SUPPLEMENTARY INFORMATION
W
January 4, 2018 Regular Board Meeting Agenda Packet - Page 130 of 235
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Short term investments
Accounts receivable
Interest receivable
Parts and supplies
Prepaid expenses
Total current assets
NON-CURRENT ASSETS:
Restricted cash and equivalents
Restricted investments
Assessment Districts receivable
Net OPEB asset
CAPITAL ASSETS
Nondepreciable
Depreciable, net of accumulated depreciation
Total capital assets, net
Total non-current assets
TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES
Pension related
LIABILITIES
CURRENT LIABILITIES:
Accounts payable and accrued expenses
Interest payable
Refunding Water Revenue Bonds - current portion
Water Reclamation Loan Contract - current portion
Accrued compensated absences - current portion
Liability for uninsured claims
Refundable deposits
Total current liabilities
NON-CURRENT LIABILITIES:
Refunding Water Revenue Bonds, noncurrent portion
Accrued compensated absences, noncurrent portion
Net pension liability
Total noncurrent liabilities
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
Pension related
NET POSITION
Net investment in capital assets
Restricted for debt service
Unrestricted
TOTAL NET POSITION
Page 80 of 98
CENTRAL CONTRA COSTA SANITARY DISTRICT
COMBINING SCHEDULE OF NET POSITION
ENTERPRISE SUB -FUNDS
JUNE 30, 2017
Running
Sewer
Self
Debt
Expense
Construction
Insurance
Service Elimination
Total
$1,115,613
$33,504,281
$6,726,433
$41,346,327
37,000,000
2,000,000
39,000,000
15,297,687
4,668,209
19,965,896
$14,665
14,665
2,089,765
2,089,765
3,459,464
3,459,464
58,962,529
40.172,490
6,726,433
14,665
105,876,117
100,000
136,702
236,702
4,856,450
4,856,450
1,311,825
1,311,825
3,652,571
3,652,571
55,650,848
576,801,783
632,452,631
636,205,202 1,311,825 4,993,152
695,167,731 41,484,315 6,726,433 5,007,817
29,078,203
3,024,789 5,822,672 60,672
558,380
2,405,000
182,377
457,000
807,079
146,119 256,243
3,627,908 6,078,915 867,751 3,145,757
55,650,848
576,801,783
632,452,631
642,510,179
748,386,296
29,078,203
8,908,133
558,380
2,405,000
182,377
457,000
807,079
402.362
13,720,331
29,095,000 29,095,000
4,113,131 4,113,131
87,847,116 87,847,116
91,960,247 29,095,000 121,055,247
95.588.155 6.078.915 867.751 32.240.757 - 134.775.578
16,051,905 16,051,905
632,452,631 (31,682,377) 600,770,254
4,449,437 4,449,437
(19,846,757) 35,405,400 5,858,682 21,417,325
$612,605,874 $35,405,400 $5,858,682 ($27,232,940) $626,637,016
January 4, 2018 Regular Board Meeting Agenda Packet - Page 131 of 235
CENTRAL CONTRA COSTA SANITARY DISTRICT
COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
ENTERPRISE SUB -FUNDS
FOR THE YEAR ENDING JUNE 30, 2017
OPERATING REVENUES
Sewer service charges (SSC)
Service charges - City of Concord
Other services charges
Miscellaneous charges
Total operating revenues
OPERATING EXPENSES
Sewage collection and pumping stations
Sewage treatment
Engineering
Recycled water
Administrative and general
Pension expense
Depreciation
Total operating expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Taxes
Permit and inspection fees
Interest earnings
Interest expense
Other income (expense), net
Total nonoperating revenues
NET INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS
CAPITAL CONTRIBUTIONS AND TRANSFERS
City of Concord contributions to capital costs
Customer contributions to capital cost (SSC)
Contributed sewer lines
Capital contributions - connection fees
Transfers In (Out)
Total capital contributions and transfers
CHANGE IN NET POSITION
NET POSITION, BEGINNING OF YEAR
NET POSITION, END OF YEAR
Running Sewer Self
Expense Construction Insurance
$73,138,235
13,851,253
1,029,500
606,453
88,625,441
16,826,922
25,631,809
15,342,640
970,640
24,181,287 $697,792
(4,080,558)
22,892,153
Page 81 of 98
Debt
Service Elimination Total
$73,138,235
13,851,253
1,029,500
606,453
88,625,441
16,826,922
25,631,809
15,342,640
970,640
($997,900) 23,881,179
(4,080,558)
22,892,153
101,764,893
697,792
(997,900)
101,464,785
(13,139,452)
(697,792)
997,900
(12,839,344)
$12,577,156
$3,741,718
16,318,874
2,181,221
419,667
2,600,888
77,223
588,387
46,792
49,436
761,838
(1,313,398)
(1,313,398)
910,655
55,589
997,900
(997,900)
966,244
3,169,099
13,640,799
1,044,692
2,477,756
(997,900)
19,334,446
(9,970,353)
13,640,799
346,900
2,477,756
6,495,102
4,476,961
4,476,961
12,151,144
12,151,144
2,899,042
2,899,042
7,044,340
7,044,340
30,640,630
(30,899,661)
172,844
86,187
33,539,672
(7,227,216)
172,844
86,187
26,571,487
23,569,319
6,413,583
519,744
2,563,943
33,066,589
589,036,555
28,991,817
5,338,938
(29,796,883)
593,570,427
$612,605,874
$35,405,400
$5,858,682
($27,232,940)
$626,637,016
61
January 4, 2018 Regular Board Meeting Agenda Packet - Page 132 of 235
CENTRAL CONTRA COSTA SANITARY DISTRICT
Schedule of Running Expenses
Comparison of Budget and Actual Expenses by Department
June 30, 2017
January 4, 2018 Regular Board Meeting Agenda Packet - Page 133 of 235
Sewage
Variance
Sewage
Treatment
Pumping
Recycled
Favorable
Administration
Engineering
Collection
Plant
Station
Water
Total
Budget
(Unfavorable)
Salaries and Wages
$6,294,088
$8,764,886
$5,733,331
$9,693,046
$946,052
$362,933
$31,794,336
$33,158,707
$1,364,371
Employee Benefits
13,415,972
6,788,627
4,937,415
8,019,057
743,147
258,526
34,162,744
37,511,904
3,349,160
Less Capitalized
Overhead and Benefits
(30,775)
(3,409,675)
(38,720)
(135,518)
-
-
(3,614,688)
(3,744,593)
(129,905)
Total Salaries and Benefits
19,679,285
12,143,838
10,632,026
17,576,585
1,689,199
621,459
62,342,392
66,926,018
4,583,626
Directors' Fees and Expense
136,315
-
-
-
-
-
136,315
168,555
32,240
Chemicals
-
-
-
1,046,350
328,092
51,648
1,426,090
1,920,000
493,910
Utilities
116,383
180,819
164,312
3,416,933
610,841
191,526
4,680,814
4,315,790
(365,024)
Repairs and Maintenance
721,567
97,766
1,823,745
1,768,081
249,917
1,842
4,662,918
5,222,852
559,934
Hauling and Disposal
-
481,910
122,098
385,376
9,784
-
999,168
941,050
(58,118)
Professional and Legal Services 428,005
169,401
9,498
3,422
-
36,275
646,601
630,750
(15,851)
Outside Services
1,415,994
1,442,372
144,183
122,034
91,163
28,877
3,244,623
3,980,175
735,552
Self Insurance
920,000
-
-
-
-
-
920,000
920,000
-
N Materials and Supplies
146,060
361,812
742,704
719,738
33,043
4,743
2,008,100
2,100,025
91,925
Other
617,678
464,722
121,705
593,290
54,612
34,270
1,886,277
2,685,703
799,426
Total
$24,181,287
$15,342,640
$13,760,271
$25,631,809
$3,066,651
$970,640
$82,953,298
$89,810,918
$6,857,620
January 4, 2018 Regular Board Meeting Agenda Packet - Page 133 of 235
CENTRAL CONTRA COSTA SANITARY DISTRICT
RUNNING EXPENSE
SCHEDULE OF SUPPLEMENTAL NET POSITION ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 30, 2017
Prior Year Balance
2016 -2017 Revenue
2016 - 2017 Expense
Add Back Depreciation Expense
Net Position Attributed to General Operations
Net Position Attributed to All Other
Running Expense Net Position
63
January 4, 2018 Regular Board Meeting Agenda Packet - Page 134 of 235
Page 83 of 98
$16,434,521
$91,794,540
(101,764,893)
22,892,153 12,921,800
29,356,321
583,249,553
$612,605,874
Page 84 of 98
This Page Left Intentionally Blank
January 4, 2018 Regular Board Meeting Agenda Packet - Page 135 of 235
Page 85 of 98
Central Contra Costa Sanitary District
Statistical Section
Table of Contents
Financial Trends
Page 86 of 98
These schedules contain trend information to help the reader understand how the
District's financial performance has changed over time.
Changes in Net Position and Statement of Net Position -
Last Ten Fiscal Years......................................................................................S-1
Revenue by Type - Last Ten Fiscal Years.........................................................S-2
Operating Expenses by Type - Last Ten Fiscal Years......................................S-3
Revenue Capacity
These schedules contain information to help the reader assess the District's most
significant revenue sources.
Major Revenue Base and Rates - Historical and Current Fees -
Last Ten Fiscal Years......................................................................................S-4
Assessed and Estimated Actual Valuation of Taxable Property -
Last Ten Fiscal Years......................................................................................S-5
Property Tax and Sewer Service Charge Fees Levied and Collected -
Last Ten Fiscal Years......................................................................................S-5
Sewer Service Charge - List of Ten Largest Customers -
Last Ten Fiscal Years......................................................................................S-6
Payments under the Concord Agreement — Last Ten Fiscal Years...................S-7
Active Service Accounts and Fiscal Year Billings — Sewer Service Charges ....S-7
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-8
Demographic and Economic Information
This schedule offers demographic and economic indicators to help the reader
understand the environment within which the District's financial activities take place.
Demographic and Economic Data - Population Served -
Last Ten Calendar Years................................................................................ S-9
List of Ten Largest Employers in Contra Costa County -
Last Year and Eight Years Ago......................................................................S-9
Demographic and Economic Statistics - Contra Costa County -
Last Ten Fiscal Years....................................................................................S-10
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 Positions Filled by Department - Last Ten Fiscal Years..S-11
Number of Retirees and Surviving Spouses - Last Ten Fiscal Years ..............S-11
Capital Asset and Operating Statistics - Last Ten Calendar or Fiscal Years ...S-12
Miscellaneous Statistics..................................................................................S-12
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
J&naac�al4r,40At8 "ulwlB)oat4EMeeting Agenda Packet - Page 137 of 235
Central Contra Costa Sanitary District
39,440,034
39,986,763
41,705,131
45,562,430
49,811,218
58,954,452
66,104,630
63,988,158
62,342,392
8,952,840
Changes in Net Position and Statement of
Net Position
7,609,127
8,121,809
7,401,103
8,063,309
7,466,490
7,304,619
8,115,004
2,613,658
2,832,001
Last Ten Fiscal Years
2,425,615
4,099,876
2,836,638
3,995,860
3,322,881
4,196,302
3,891,224
3,863,555
3,938,129
3,808,635
Changes in Net Position
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015.2016
2016-2017
Operating Revenues:
159,961
214,290
496,381
72,486
(300,108)
-
-
-
-
-
Sewer Service Charges (SSC)
$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
$73,138,235
City of Concord
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
13,851,253
Other Service Charges
869,589
872,978
824,022
913,017
915,485
1,076,401
1,035,134
1,006,197
963,014
1,029,500
Miscellaneous Charges
595,980
667,855
650,876
662,721
929,917
751,880
544,589
593,780
623,659
606,453
Total Operating Revenue
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
88,625,441
Operating Expenses:
Salaries & Benefits
Chemicals, Utilities & Supplies
Professional & Outside Services
Hauling, Disposal, Repairs & Maintenance
Self -Insurance (net of transfers)
Pension Expense
Depreciation
All Other
Total Operating Expenses
Operating Loss
Non -Operating Revenues (Expenses):
Property Taxes *
Connection & Other Fees
Interest Income
Interest Expense
All Other *
Total Non -Operating
Income Before Contributions and Transfers
Customer Contributions**
Contributed Sewer Lines
Capital Contributions - Connection Fees
CHANGE IN NET POSITION
Total Net Position - Beginning
Prior Period Adjustment - GASB 68 and 71
Total Net Position - Ending
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
62,342,392
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
8,115,004
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
3,891,224
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
5,662,086
(215,004)
90,876
(688,859)
119,051
(65,688)
159,961
214,290
496,381
72,486
(300,108)
-
-
-
-
-
-
-
(3,012,757)
(9,778,389)
(4,080,558)
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
22,892,153
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
2,942,592
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
101,464,785
(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)
(12,839,344)
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
16,318,874
1,335,160
1,093,756
776,348
895,825
903,810
1,169,809
1,575,251
1,843,942
2,546,723
2,600,888
2,527,621
1,033,095
570,024
673,990
294,938
405,474
359,288
318,475
562,308
761,838
(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)
(1,313,398)
1,243,817
639,523
12,295
(523,209)
931,660
951,100
932,464
1,828,530
1,195,095
966,244
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
19,334,446
(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
6,495,102
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
16,628,105
1,444,420
1,231,022
1,840,259
533,616
792,011
939,628
1,462,316
794,218
1,774,168
2,899,042
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
7,044,340
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
33,066,589
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
(91,692,522)
$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
$626,637,016
Statement of Net Position
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
Investments in Capital Assets, Net of Related Debt
$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
$600,770,254
Restricted for Debt Service
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
4,449,437
Unrestricted
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
21,417,325
Total Net Position
$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
$626,637,016
• 2009-2010 property taxes includes Prop 1A loan receivable revenue and offset of $985,916. The revenue is offset by the provision for losses categorized in other.
" Classification reclassed 2010-11, prior years reclassed for consistency. Previously included in Non -Operating. Includes capital cost contributions from the City of Concord and customer contributions (SSC).
Source: Central Contra Costa Sanitary District Audited Financial Statements
S-1
January 4, 2018 Regular Board Meeting Agenda Packet - Page 138 of 235
N
R
O
G
$160,000,000
$140,000,000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000
$20,000,000
Central Contra Costa Sanitary District
Revenue By Type
Last Ten Fiscal Years
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
Fiscal Year
oOperating Revenue oNon-Operating Revenue
Oneratina Revenue
Fiscal
Year
Sewer Service
Charges*
City of
Concord
Other Service
Charges
Miscellaneous
Charges
Total
Operating
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
2016-2017
73,138,235
13,851,253
1,029,500
606,453
1 88,625,441
Non-Ooeratina Revenue
Fiscal
Year
Property
Taxes *1
Customer
Contributions *2
Connections
& Other Fees *3
Interest
All
Other
Total Non -Operating
& Contributions
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
2016-2017
16,318,874
19,527,147
9,645,228
761,838
966,244
47,219,331
* Sewer Service Charge (SSC) represents the Running Expense Fund portion of SSC County collections along with District direct billings and counter collections.
*1 2009-2010 property taxes include Prop 1A loan receivable revenue of $985,916.
*2 Customer Contributions include the portion of SSC that is allocated to Sewer Construction Fund, City of Concord reimbursement of capital costs, and developer
contributed sewer lines beginning in 2000-2001, due to changes in GASB 33 reporting requirements.
*3 Includes connection fees, non-operating permit, inspection, and other fees. S-2
Source: Central Contra Costa Sanitary District Audited Financial Statements
January 4, 2018 Regular Board Meeting Agenda Packet - Page 139 of 235
$110,000,000
$100,000,000
$90,000,000
$80,000,000
$70,000,000
$60,000,000
$50,000,000
$40,000,000
$30,000,000
$20,000,000
$10,000,000
$(10,000,000)
$(20,000,000)
Central Contra Costa Sanitary District
Operating Expenses by Type
Last Ten Fiscal Years
2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
Fiscal Year
■ Salaries and Benefits
■ Self -Insurance
2012-2013 2013-2014 2014-2015 2015-2016 2016-2017
❑ Chemicals, Utilities & Supplies ❑ Professional & Outside Services ❑ Hauling, Disposal, Repairs & Maintenance
Q Depreciation ■ Pension Expense* ❑AII Other
OPERATING EXPENSES
Fiscal
Year
Salaries
and Benefits M
Chemicals, Utilities
& Supplies
Professional &
Outside Services
Hauling, Disposal,
Repairs & Maintenance
Self -Insurance
M
Depreciation
Pension
Expense*
All
Other Md
Total Operating
Expenses
2007-2008
$37,312,472
$8,952,840
$2,613,658
$3,863,555
$916,639
$18,615,747
$1,247,298
$73,522,209
2008-2009
39,440,034
9,368,755
2,832,001
3,938,129
958,906
19,417,941
1,437,429
77,393,195
2009-2010
39,986,763
7,973,992
2,129,552
3,808,635
746,612
20,969,429
1,223,191
76,838,174
2010-2011
41,705,131
7,609,127
2,425,615
3,916,789
1,003,115
20,580,061
1,575,902
78,815,740
2011-2012
45,562,430
8,121,809
4,099,876
4,077,741
810,849
21,190,059
1,612,482
85,475,246
2012-2013
49,811,218
7,401,103
2,836,638
4,239,421
2,380,466
21,596,266
472,630
88,737,742
2013-2014
58,954,453
8,063,310
3,995,861
4,041,356
858,738
21,892,545
1,702,131
99,508,394
2014-2015
66,104,630
7,466,490
3,322,881
4,758,260
1,146,381
22,740,942
($3,012,757)
1,823,963
104,350,790
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
2016-2017
62,342,392
8,115,004
3,891,224
5,662,086
619,892
22,892,153
(4,080,558)
2,022,592
101,464,785
* 2014-2015 pension expense is a result of the implementation of GASB 68 & 71.
** 2009-2010 non-operating expenses includes Prop 1A loan receivable revenue offset of $985,916.
Source: Central Contra Costa Sanitary District Audited Financial Statements
S-3
January 4, 2018 Regular Board Meeting Agenda Packet - Page 140 of 235
Non -Operating
Expenses **
$1,518,142
1,421,686
2,539,383
2,585,112
1,919,375
1,802,084
1,996,689
1,523,127
1,427,641
1,313,398
Infnrmafinnal - nnf nranh.,
Fiscal Year
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
Central Contra Costa Sanitary District
Major Revenue Base and Rates
Historical and Current Fees
Last Ten Fiscal Years
Single Family Annual Sewer Service Charge (SSC) *1
Operations
Capital
Total
$242
$58
$300
260
51
311
292
19
311
300
11
311
302
39
341
344
27
371
365
40
405
416
23
439
422
49
471
2016-2017 1 $432 $71 $503
Fiscal Year
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
Multi -Family Annual Sewer Service Charge (SSC) *1
Operations
Capital
Total
$242
$58
$300
260
51
311
292
19
311
300
11
311
302
39
341
344
27
371
365
40
405
416
23
439
415
48
463
2016-2017 1 $418 $69 $487
Facility
Capacity Fee *2
$4,524
4,923
5,298
5,451
5,465
5,797
5,930
5,995
6,005
$5,948
Pump
Zone Fee *3
$1,466
1,586
1,651
1,641
1,606
1,625
1,587
1,585
1,650
$1,608
*1 All residential accounts paid a flat annual sewer service charge shown above per household through 2014-2015. In 2015-2016, 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
S-4
January 4, 2018 Regular Board Meeting Agenda Packet - Page 141 of 235
Central Contra Costa Sanitary District
Assessed and Estimated Actual Valuation of Taxable Property
Last Ten Fiscal Years
Fiscal Year
Local Secured
Unsecured
Total
% Change
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%
2016-2017
92,006,863,080
1,704,263,642
93,711,126,722
6.1%
Property Tax and Sewer Service Charge Fees Levied and Collected
Last Ten Fiscal Years
General County taxes collected are the same as the amount levied since the County participates in California's alternative method of
apportionment called the Teeter Plan. The Teeter Plan as provided in Section 4701 et seq. of the State Revenue and Taxation Code,
establishes a mechanism for the County to advance the full amount of property tax and other levies to taxing agencies based on the
tax levy, rather than on the basis of actual tax collections. Although this system is a simpler method to administer, the County assumes
the risk of delinquencies. The County in return retains the penalties and accrued interest thereon.
** Actual amount received from the County. Net of Prop 1A loan to state of $985,916.
Includes repayment of Prop 1A loan in June, 2013. The repayment amount includes $985,916 of principal and $65,545 of interest
for a total of $1,051,461.
Source: Contra Costa County Auditor -Controller's Office
S-5
January 4, 2018 Regular Board Meeting Agenda Packet - Page 142 of 235
Property Tax*
Sewer Service Charges*
Fiscal Year
Levied & Collected
% Change
Levied & Collected
% Change
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%
2016-2017
16,428,089
7.2%
83,601,971
5.9%
General County taxes collected are the same as the amount levied since the County participates in California's alternative method of
apportionment called the Teeter Plan. The Teeter Plan as provided in Section 4701 et seq. of the State Revenue and Taxation Code,
establishes a mechanism for the County to advance the full amount of property tax and other levies to taxing agencies based on the
tax levy, rather than on the basis of actual tax collections. Although this system is a simpler method to administer, the County assumes
the risk of delinquencies. The County in return retains the penalties and accrued interest thereon.
** Actual amount received from the County. Net of Prop 1A loan to state of $985,916.
Includes repayment of Prop 1A loan in June, 2013. The repayment amount includes $985,916 of principal and $65,545 of interest
for a total of $1,051,461.
Source: Contra Costa County Auditor -Controller's Office
S-5
January 4, 2018 Regular Board Meeting Agenda Packet - Page 142 of 235
Central Contra Costa Sanitary District
Sewer Service Charge
List Of Ten Largest Customers
Ten Fiscal Years
S-6
January 4, 2018 Regular Board Meeting Agenda Packet - Page 143 of 235
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
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.
$8,206,860
1
16.45%
$8,755,857
1
16.40%
$8,664,668
1
14.73%
$9,224,952
1
15.40%
10,647,389
1
17.28%
Chevron Offices & Office Park 2.
340,389
2
0.68%
363,739
2
0.68%
165,561
7
0.28%
-
-
-
-
Contra Costa County General Services 3.
316,854
3
0.64%
320,866
3
0.60%
305,880
2
0.52%
301,430
2
0.50%
292,384
4
0.47%
First Walnut Creek Mutual
285,000
4
0.57%
295,450
4
0.55%
295,450
3
0.50%
295,450
3
0.49%
323,950
2
0.53%
Park Regency Apartments
267,600
5
0.54%
277,412
5
0.52%
277,412
4
0.47%
277,412
4
0.46%
304,172
3
0.49%
Second Walnut Creek Mutual Apts
225,000
6
0.45%
233,250
6
0.44%
233,250
5
0.40%
233,250
5
0.39%
255,750
5
0.42%
John Muir Health 3.
223,775
7
0.45%
125,292
9
0.23%
-
-
-
-
-
-
Sun Valley Mall
183,380
8
0.37%
190,734
7
0.36%
197,566
6
0.34%
193,957
6
0.32%
203,037
6
0.33%
St. Mary's College Contract
136,016
9
0.27%
126,222
8
0.24%
-
-
-
-
119,407
9
0.19%
Kaiser Foundation Hospital 3.
118,809
10
0.24%
-
-
136,753
8
0.23%
-
-
-
-
Bay Landing Apartments
-
-
111,960
10
0.19%
111,960
8
0.19%
122,760
8
0.20%
Archstone Apartments
-
-
-
-
108,850
9-10
0.18%
119,350
10
0.19%
Branch Creek Vista Apartments
124,400
10
0.23%
124,400
9
0.21%
124,400
7
0.21%
136,400
7
0.22%
Muirland @ Windemere Apartments
-
-
-
-
-
108,850 9-10
0.18%
119,350
10
0.19%
Total
$10,303,683
20.66%
$10,813,222
20.26%
$10,512,900
17.87%
$10,980,511
18.33%
$12,643,949
20.52%
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
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.
$10,483,421
1
15.18%
$11,625,864
1
15.71%
$12,892,945
1
15.25%
$13,913,960
1
15.86%
13,851,253
1
15.63%
Contra Costa County General Services 3.
321,803
4
0.47%
419,590
2
0.57%
451,567
2
0.53%
638,608
2
0.73%
547,943
2
0.62%
First Walnut Creek Mutual
352,450
2
0.51%
384,750
3
0.52%
417,050
3
0.49%
439,850
3
0.50%
462,650
3
0.52%
Park Regency Apartments
330,932
3
0.48%
361,260
4
0.49%
391,588
4
0.46%
412,996
4
0.47%
434,404
4
0.49%
Second Walnut Creek Mutual Apts
278,250
5
0.40%
303,750
5
0.41%
329,250
5
0.39%
347,250
5
0.40%
365,250
5
0.41%
John Muir Health 3.
176,381
6
0.26%
148,374
8
0.20%
-
-
218,919
7
0.25%
322,601
6
0.36%
Sun Valley Mall
174,038
7
0.25%
211,866
6
0.29%
299,697
6
0.35%
283,613
6
0.32%
298,005
7
0.34%
San Ramon Unified School District
-
-
-
-
-
215,044
8
0.25%
225,339
8
0.25%
Branch Creek Vista Apartments
148,400
9
0.21%
162,000
7
0.22%
175,600
7
0.21%
-
-
194,800
9
0.22%
Kaiser Foundation Hospital 3.
-
-
-
-
158,848
8
0.19%
186,232
10
0.21%
186,281
10
0.21%
Bay Landing Apartments
133,560
10
0.19%
145,800
9
0.20%
158,040
9
0.19%
-
-
-
-
Willows Shopping Center 3.
-
-
145,091
10
0.20%
-
-
206,210
9
0.24%
Archstone Apartments
-
-
153,650
10
0.18%
-
-
Muirland @ Windemere Apartments
-
-
153,650
10
0.18%
-
St. Mary's College Contract
158,480
8
0.23%
-
-
-
-
Total
$12,557,715
18.18%
$13,908,345
18.79%
$15,581,885
18.44%
$16,862,681
19.22%
$16,888,526
19.06%
1. Contract with the City of Concord to treat and dispose of wastewater for Concord and
Clayton.
2. Charges included irrigation in years 2007-2008 and 2008-2009.
3. Kaiser, John Muir Health, Willows Shopping Center, and County hospital are permitted industries.
Source: Central Contra Costa Sanitary District Environmental Services Division
S-6
January 4, 2018 Regular Board Meeting Agenda Packet - Page 143 of 235
Central Contra Costa Sanitary District
Payments Under the Concord Agreement
Fiscal Year
Discharge Volume (mg)
2007-08
4,217
2008-09
3,924
2009-10
4,077
2010-11
4,507
2011-12
4,279
2012-13
4,213
2013-14
3,914
2014-15
3,826
2015-16
3,878
2016-17
4,800
User Group
Residential
Mixed Use
Office
Food Service
Hotel/Motel
Government
Market/Supermarket
Schools
Businesses
Automotive/Car Wash
Recreation/Entertainment
All Other User Groups
Subtotal
Last 10 Fiscal Years
Service Charges
Capital Contributions
Total
$8,206,860
$5,336,273
$13,543,133
8,755,857
5,485,858
14,241,715
8,664,668
3,628,949
12,293,617
9,224,952
3,216,190
12,441,142
10,647,389
2,541,688
13,189,077
10,483,421
3,616,771
14,100,192
11,625,864
3,820,858
15,446,722
12,892,945
2,897,491
15,790,436
13,913,960
3,671,892
17,585,852
13,851,253
4,476,961
18,328,214
Central Contra Costa Sanitary District
Active Service Accounts and Fiscal Year Billings
Sewer Service Charges
Fiscal Year 2016-2017
No. of Accounts
113,045
213
772
234
22
174
48
251
429
241
103
872
116,404
Partial Year Charges (Counter)
Prior Year Adjustments
Total FY 2016-2017 Sewer Service Charge Revenue
2016-2017 Sewer
Percentage
Service Charge Billings
Residential Unit Equivalents
of Total
$68,963,633
137,105
81%
2,669,727
5,308
3%
2,330,477
4,633
3%
2,120,572
4,216
2%
1,180,440
2,347
1%
870,631
1,731
1%
851,179
1,692
1%
841,767
1,673
1%
726,188
1,444
1%
630,563
1,254
1%
562,221
1,118
1%
3,320,804
6,602
4%
$85,068,203
169,122
100%
$256,532
(35,356)
$85,289,379
S-7
January 4, 2018 Regular Board Meeting Agenda Packet - Page 144 of 235
$6,000,000
$5,000,000
$4,000,000
m $3,000,000
0
D
$2,000,000
$1,000,000
$0
ry�0 'Yooa ryo,�o ti�11 ti�1ry `Lo.3 ryo,�a 'Yo,�S 'Yo,�6 ry�,�'1
Summary Of Debt Service
Last Ten Fiscal Years
Debt Service Paid Each Fiscal Year
Outstanding Debt Each Fiscal Year
In 2009, the District issued Bonds which retired the 2002 and 1998 bond
$60,000,000 1 debt and gained $30 million in net proceeds dedicated to fund Capital Improvements.
$45,000,000
w
$30,000,000
0
G
$15,000,000
$0
ryo o�oo ti� off* ^ryo^ ti� �tio^ atio^ y� ego^
110^O� rt� ry0 ryo ry0 n0 ryo ry0 ry0
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 2013-2014.
*1 2014-2015 includes implementaion of pension expense reporting changes for GASB 68 & 71.
*2 Net Revenue = Operating Revenue, less Total Operating Expenses less Depreciation, plus Non -Operating Revenue & Contributions.
*3 This ratio must be above 1.00 to meet the Debt Rate Covenant (Net Revenue/Total Debt Service).
*4 Adjusted Net Revenue = Net Revenue less Capital Improvement Fees (Connection Fees) and City of Concord Capital Charges.
*5 This ratio must be above 1.25 to meet the Debt Rate Covenant (Adjusted Net Revenue/Total Debt Service).
Source: Central Contra Costa Sanitary District Audited Financial Statements and Internal Accounting Records
January 4, 2018 Regular Board Meeting Agenda Packet - Page 145scg 235
Debt Restrictions:
Revenue Pledge & Covenant. The District pledges
Property Tax Revenue along with its ability to raise Sewer
Service Charge (SSC) rates. Debt Coverage requirements
are discussed in the footnotes to the left.
Reserve Requirement at June 30, 2017: $4,856,450
Balance in reserve account at June 30, 2017: $4,856,450
Summary By Type Of Debt
, Total Debt Service Annual Ex ense
Lei =K9111111.2
Interest &
Total
Fiscal
Interest & Total Interest & Total
Revenue - .. • -
Year
Principal
Amortization
Debt Service
Principal Amortization Debt Service Principal Amortization Debt Service
Bonds .. •
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 13,868
187,119
2,383,251
1,427,640
3,810,891
33,800,000
360,134 34,160,134
2016-2017
1 2,300,000
1 1,304,036
1 3,604,036
1 177,757 9,362
1 187,119
1 2,477,757
1 1,313,398
3,791,155
1 31,500,000
182,377 1 31,682,377
ohmillin Debt Service Covera a Summary M
Debt Ratios
Total
Total Operating
Non-OperatingDebt
Service
Capital
Debt Service
Annual Debt
Annual Debt
Total Debt
Fiscal
Debt
Operating
Expenses less
Revenue &
Net
Coverage
Improvement
Adjusted Net
Coverage
Service to
Service per
Outstanding
Year
Service
Revenue
Depreciation *1
Contributions
Revenue *2
(Net Revenue) *3
Fees/Concord
Revenue *4
(Adj. Net Revenue) *5
Operating Exp.
Customer
Per Customer
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
3,810,891
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
2016-2017
3,791,155
88,625,441
78,572,632
47,219,331
57,272,140
15.11
11,521,301
45,750,839
12.07
4.83%
22.36
186.85
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 2013-2014.
*1 2014-2015 includes implementaion of pension expense reporting changes for GASB 68 & 71.
*2 Net Revenue = Operating Revenue, less Total Operating Expenses less Depreciation, plus Non -Operating Revenue & Contributions.
*3 This ratio must be above 1.00 to meet the Debt Rate Covenant (Net Revenue/Total Debt Service).
*4 Adjusted Net Revenue = Net Revenue less Capital Improvement Fees (Connection Fees) and City of Concord Capital Charges.
*5 This ratio must be above 1.25 to meet the Debt Rate Covenant (Adjusted Net Revenue/Total Debt Service).
Source: Central Contra Costa Sanitary District Audited Financial Statements and Internal Accounting Records
January 4, 2018 Regular Board Meeting Agenda Packet - Page 145scg 235
Debt Restrictions:
Revenue Pledge & Covenant. The District pledges
Property Tax Revenue along with its ability to raise Sewer
Service Charge (SSC) rates. Debt Coverage requirements
are discussed in the footnotes to the left.
Reserve Requirement at June 30, 2017: $4,856,450
Balance in reserve account at June 30, 2017: $4,856,450
Central Contra Costa Sanitary District
Demographic and Economic Data
Population Served
Last Ten Calendar Years
Source: Central Contra Costa Sanitary District Environmental Services Division
List of Ten Largest Employers in Contra Costa County
Last Year and Eight Years Ago*
Employers
Chevron Corporation
AAA Northern California, Nevada & Utah
Bay Alarm Co.
Bay Area Rapid Transit
Bio -Rad Laboratories
John Muir Medical Center
Kaiser Permanente
La Raza Market
St. Mary's College
USS -POSCO Industries
John Muir/Mt. Diablo Medical Center
Doctors Medical Center
Liberty Mutual Insurance Co.
Kaiser Foundation Hospital
Sutter Delta Medical Center
All Others
Total
2008*
Estimated
Inside District
Concord/
Total
%
As Of January 1
Boundaries
Clayton
Served
Change
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%
2017
344,591
139,654
484,245
0.6%
Source: Central Contra Costa Sanitary District Environmental Services Division
List of Ten Largest Employers in Contra Costa County
Last Year and Eight Years Ago*
Employers
Chevron Corporation
AAA Northern California, Nevada & Utah
Bay Alarm Co.
Bay Area Rapid Transit
Bio -Rad Laboratories
John Muir Medical Center
Kaiser Permanente
La Raza Market
St. Mary's College
USS -POSCO Industries
John Muir/Mt. Diablo Medical Center
Doctors Medical Center
Liberty Mutual Insurance Co.
Kaiser Foundation Hospital
Sutter Delta Medical Center
All Others
Total
2008*
Estimated
% of Total County
% of Total County
Employees
Rank
Employment
4,700
1
0.94%
1,700
4
0.34%
1,900
3
0.38%
900
9
0.18%
975
8
0.19%
1,500
5
0.30%
1,000
6-7
0.20%
1,000
6-7
0.20%
2,300
2
0.46%
850
10
0.17%
484,375
96.64%
501,200
100.0%
2016*
Estimated
% of Total County
Employees Rank
Employment
10,000+ 1
1.90%
5,000-9,999 2
1.42%
1,000-4,999 T-3
0.47%
1,000-4,999 T-3
0.47%
1,000-4,999 T-3
0.47%
1,000-4,999 T-3
0.47%
1,000-4,999 T-3
0.47%
1,000-4,999 T-3
0.47%
1,000-4,999 T-3
0.47%
1,000-4,999 T-3
0.47%
489,500 92.92%
527,000 100.0%
Source: * County of Contra Costa, California, Comprehensive Annual Financial Report for June 30, 2016, Statistical Section, principal employers excludes government employers
January 4, 2018 Regular Board Meeting Agenda Packet - Page 146 of 2S59
Central Contra Costa Sanitary District
Demographic and Economic Statistics
Contra Costa County
Last Ten Fiscal Years
Fiscal Year
Per Capita
Ended
Personal
Personal
June 30
Population*
Income*
Income*
2007
1,009,152
$59,823,135,000
$59,281
2008
1,023,344
61,470,268,000
60,068
2009
1,037,890
56,442,667,000
54,382
2010
1,052,875
56,594,058,000
53,752
2011
1,066,126
61,156,431,000
57,363
2012
1,078,242
66,344,299,000
61,530
2013
1,094,030
66,607,757,000
60,883
2014
1,108,996
69,818,812,000
62,957
2015
1,123,231
76,517,699,000
68,123
2016
1,135,127
80,412,324,000
70,840
Average Annual
Unemployment
Rate**
4.7%
6.3%
10.8%
11.3%
10.4%
9.0%
7.4%
6.2%
5.0%
4.4%
U.S. Department of Commerce, Bureau of Economic Analysis. Estimates for 2010-2016 reflect county population estimates available as of March 2017.
State of California, Employment Development Department (EDD), annual calendar figure.
S-10
January 4, 2018 Regular Board Meeting Agenda Packet - Page 147 of 235
Central Contra Costa Sanitary District
Full-time Equivalent Positions Filled by Department
Last Ten Fiscal Years
Number of Retirees and Surviving Spouses as of June 30
Last Ten Fiscal Years
District Total 178 187 201 215 237 244 243 244 249 259
Source: Central Contra Costa Sanitary District Finance and Human Resources Divisions
S-11
January 4, 2018 Regular Board Meeting Agenda Packet - Page 148 of 235
Full-time Equivalent Positions Filled as of June 30
Department
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Administration
45
45
45
44
39
39
44
46
49
43
Engineering
76
80
76
75
71
75
73
72
88
88
Operations
Collection Systems
50
52
47
44
47
56
55
56
55
55
Plant
77
82
78
74
71
76
81
88
79
83
Pumping Station
11
10
10
8
7
8
8
8
7
7
Operations Total
138
144
135
126
125
140
144
152
141
145
District Total
259
269
256
245
235
254
261
270
278
276
Number of Retirees and Surviving Spouses as of June 30
Last Ten Fiscal Years
District Total 178 187 201 215 237 244 243 244 249 259
Source: Central Contra Costa Sanitary District Finance and Human Resources Divisions
S-11
January 4, 2018 Regular Board Meeting Agenda Packet - Page 148 of 235
Central Contra Costa Sanitary District
Capital Asset and Operating Statistics
Last Ten Calendar or Fiscal Years
Collection Systems/Pumping Stations/Outfall Sewers
Pipeline Miles
Number of pumping stations (owned)
Recycled Water
Recycled Water Pipeline
Recycled Water Produced per day
Number of Recycled Water Customers
Residential Recycled Water Fill Station Customers
Household Hazardous Waste (HHW) - Inception 1997/1998
Program Participation (Number of cars)
Percentage of Households in Service Area
Operating Cost per Car
Pounds of HHW per Car
Pharmaceutical Collection Proaram - Inception 2009
Number of Collection Sites
Pounds of Expired or Unwanted medications Collected
Miscellaneous Statistics
Other Data
Calendar
1,500
1,500
1,500
1,500
Millions of Gallons per Day (mgd)
1,526
1,526
1,519
1,519
Treatment Plant
Year
2007
2008
2009
2010 2011 2012
2013
2014
2015
2016
Treatment Plant Permitted Capacity
Calendar
53.8
53.8
53.8
53.8 53.8 53.8
53.8
53.8
53.8
53.8
Average Dry Weather Flow (ADWF)
Calendar
38.6
36.6
32.5
38.9 37.2 33.2
33.8
30.4
29.1
30.8
Wastewater Treated per day
Calendar
41.2
41.0
37.0
40.6 41.9 39.8
36.8
35.6
31.8
35.4
35
35
37
43
52
Tons per Year
N/A
N/A
N/A
N/A
Sludge to Furnace (Dry)*1
Fiscal
15,340
15,212
15,299
15,056 15,790 15,097
14,590
16,789
16,623
17,031
Ash to Reuse Site (Wet)*2
Fiscal
4,418
4,177
4,082
3,814 3,850 3,667
3,618
3,811
3,651
4,230
*1 In the multi -hearth furnace, the wet sludge is converted to dry
ash. Water is added to the
dry ash as it is loaded into trucks (ratio of 60 percent ash to 40 percent water) to prevent the ash from blowing out of the
truck during transport.
*2 Wet sludge, which at 19 to 27 percent solids, is pumped to
the multiple -hearth furnace for
incineration. The table above shows the dry tons
per year of sludge to the furnace, excluding the 73
to 81 percent water in the wet sludge.
Collection Systems/Pumping Stations/Outfall Sewers
Pipeline Miles
Number of pumping stations (owned)
Recycled Water
Recycled Water Pipeline
Recycled Water Produced per day
Number of Recycled Water Customers
Residential Recycled Water Fill Station Customers
Household Hazardous Waste (HHW) - Inception 1997/1998
Program Participation (Number of cars)
Percentage of Households in Service Area
Operating Cost per Car
Pounds of HHW per Car
Pharmaceutical Collection Proaram - Inception 2009
Number of Collection Sites
Pounds of Expired or Unwanted medications Collected
Miscellaneous Statistics
Other Data
Calendar
1,500
1,500
1,500
1,500
1,500
1,526
1,526
1,519
1,519
1,519
Calendar
17
17
17
16
16
16
16
16
16
16
Calendar
10.5 miles
10.5 miles
10.5 miles
10.5 miles
10.5 miles
10.5 miles
10.5 miles
13 miles
13 miles
13 miles
Calendar
1.6 mgd
1.5 mgd
1.6 mgd
1.5 mgd
1.6 mgd
1.6 mgd
1.6 mgd
1.6 mgd
1.6 mgd
1.5 mgd
Calendar
30
31
30
33
35
35
35
37
43
52
Calendar
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
1,020
2,259
Fiscal
27,940
28,210
29,347
29,441
29,112
29,119
30,379
31,779
33,468
33,037
Fiscal
14.5%
14.4%
15.0%
15.6%
15.4%
15.4%
15.9%
16.6%
16.8%
16.7%
Fiscal
$61
$76
$76
$82
$87
$93
$83
$78
$72
$80
Fiscal
71
67
65
68
67
68
66
63
64
65
Calendar
N/A
N/A
5
10
10
10
12
13
13
13
Calendar
N/A
N/A
4,747
8,960
9,434
12,240
12,428
14,041
15,366
16,485
Governing Body:
Elected 5 -Member Board of Directors
Governmental Structure:
Established in 1946 under the Sanitary District Act of 1923
Staff:
276 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
Residential and Truck Recycled Water Fill Station
Pharmaceutical Collection Program (13 -Collection Sites)
Type Of Treatment:
Discharge - Secondary; Reclamation - Tertiary
Service Area:
144 square miles
Total Population Served:
484,245
Sewer Service Charge:
$503 for single family homes and $487 for multi -family homes.
Source: Central Contra Costa Sanitary District records
S-12
January 4, 2018 Regular Board Meeting Agenda Packet - Page 149 of 235