HomeMy WebLinkAbout04.d. Review final draft Comprehensive Annual Financial Report (CAFR) as of June 30, 2018 for submission to the Government Finance Officers Association (GFOA) Page 1 of 96
Item 4.d.
CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
DRAFT
MEETING DATE: DECEMBER 18, 2018
SUBJECT: REVIEW FINAL DRAFT COMPREHENSIVE ANNUAL FINANCIAL REPORT
(CAFR)AS OF JUNE 30, 2018 FOR SUBMISSION TO THE GOVERNMENT
FINANCE OFFICERS ASSOCIATION (GFOA)
SUBMITTED BY: INITIATING DEPARTMENT:
CHRIS THOMAS, FINANCE ADMINISTRATOR ADMINISTRATION-FINANCE
REVIEWED BY: PHILIP 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 for Excellence in Financial Reporting by the GFOA
for the report submitted for Fiscal Year 2016-17. The Certificate of Achievement is the highest form of
recognition for excellence instate and local government financial reporting. I n order to be awarded a
Certificate of Achievement, a government agency must publish an easily readable report in a prescribed
format report that complies with GAAP, Governmental Accounting Standards Board (GASB) and GFOA
program policy and requirements. The CAFR includes ten years of District historical, financial, and
statistical data. The CAFR provides a concise document for internal management use, as well as external
use with other agencies, and is posted on the District's website for the general public. A Certificate of
Achievement is valid for a period of one year.
The Finance and Accounting Division has prepared the District's CAFR as of June 30, 2018. Itis
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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
ce rtif i cate.
A draft of the June 30, 2018 CAFR was provided to the full Board as part of the agenda packet for the
December 18, 2018 Finance Committee meeting. The Committee did not recommend any changes.
The final CAF R is included in the agenda packet under separate cover.
ALT ERNAT IVES/CONSIDERATIONS
None.
FINANCIAL IMPACTS
There is an application fee for submission of a CAFR for review based on total revenues of the entity
applying. Based on this sliding fee schedule, the District's fee is $580.
COMMITTEE RECOMMENDATION
On December 18, 2018, the Finance Committee reviewed the draft June 30, 2018 CAFR and
recommended Board approval.
RECOMMENDED BOARD ACTION
Review and approve the June 30, 2018 CAF R for submission to the G FOA.
Strategic Plan Tie-In
GOAL THREE:Be a Fiscally Sound and Effective Water Sector Utility
Strategy 1 - Conduct long-range financial planning, Strategy 2- Manage costs
ATTACHMENTS:
1. CAFR for June 30, 2018 and 2017
December 18, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 188 of 288
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December 18, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 189 of 288
Page 4 of 96
CENTRAL CONTRA COSTA SANITARY DISTRICT
MARTINEZ, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEARS ENDED JUNE 305 2018 AND 2017
Prepared By:
Finance & Accounting Division
December 18, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 190 of 288
Page 5 of 96
CENTRAL CONTRA COSTA SANITARY DISTRICT
Comprehensive Annual Financial Report
Table of Contents
For the Years Ended June 30, 2018 and 2017
INTRODUCTORY SECTION:
Letterof Transmittal............................................................................................... i
Boardof Directors...............................................................................................viii
MissionStatement................................................................................................ix
OrganizationChart ............................................................................................... x
Mapof Service Area.............................................................................................xi
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.................................... 19-49
Required Supplementary Information
Cost-Sharing Multiple Employer Defined Benefit Retirement Plan -
Schedule of Changes in the Net Pension Liability and Related Ratios . 52
Schedule of Contributions ..................................................................... 53
Post-Retirement Health Care Defined Benefit Plan —
Schedule of Changes in the Net OPEB Liability and Related Ratios .... 54
Schedule of Investment Return Rate .................................................... 54
Schedule of Contributions ..................................................................... 55
Supplementary Information
Combining Schedule of Statement of Net Position .................................. 58
Combining Schedule of Statement of Revenues, Expenses and
Changes in Net Position - Enterprise Sub-Funds .................................. 59
Schedule of Running Expenses - Comparison of Budget and Actual
Expenses by Department....................................................................... 60
Running Expense - Schedule of Supplemental Net Position Analysis..... 61
STATISTICAL SECTION (Unaudited):
Changes in Net Position and Statement of Net Position -
Last Ten Fiscal Years.....................................................................................S-1
Revenue by Type - Last Ten Fiscal Years.........................................................S-2
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Operating Expenses by Type - Last Ten Fiscal Years.......................................S-3
Major Revenue Base and Rates - Historical and Current Fees -
Last Ten Fiscal Years.....................................................................................S-4
Assessed and Estimated Actual Valuation of Taxable Property -
Last Ten Fiscal Years.....................................................................................S-5
Property Tax and Sewer Service Charge Fees Levied and Collected -
Last Ten Fiscal Years.....................................................................................S-5
Sewer Service Charge - List of Ten Largest Customers -
Last Ten Fiscal Years.....................................................................................S-6
Payments Under the Concord Agreement -
Last Ten 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 -
Last Ten Fiscal Years.....................................................................................S-8
Demographic and Economic Data - Population Served -
Last Ten 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 -
Last Ten 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
December 18, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 192 of 288
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Page 8 of 96
CENTRAL SAN
rENTRAL CONTRA COSTA SANITARY DISTRICT 5019 IMHOFF PLACE, MARTINEZ, CA 9A553-,4392
December 19, 2918
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 36, 2918.
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 39, 2918. 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 39 miles east of San Francisco. The District builds, operates and maintains the
facilities required to collect and clean wastewater for approximately 348,699 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 141,699 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
at responsible rates, through conducting long-range financial planning and managing
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costs. The District has approximately 1,500 miles of sewer pipeline, ranging in size from
4 inches to 102 inches in diameter, and 19 sewage-pumping stations (three of which are
privately owned) in the District's sewage collection system. The District is the sole
provider of wastewater service within the District limits (see map of service area).
Residents make up the largest segment of the District's customer base representing
approximately 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, although in recent
years, pay-as-you go resources have funded the capital program.
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 21st year of operation, the HHW Facility currently
serves over 35,000 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 seventeen thousand pounds
of expired or unwanted medications.
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 afour-year term. The Board appoints the General Manager,
who in accordance with policies established by the Board of Directors, manages District
affairs. The District employed 274 employees at year end, 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:
ii
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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. District management is accountable for variances
and adhering to overall budget constraints. The Board has delegated various contracting
and spending authority to the General Manager, as specified by an adopted Board policy.
Additional limited contracting and spending authority is further delegated to certain staff
classifications as specified by internal signature limits - the District also has several
documented financial policies (including debt management and fiscal reserves) 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), California's unemployment should
continue to remain around 3.5 - 4%, which many economists consider "full employment",
for the next several years. The economic outlook assumes continued moderate growth
with notably higher wage and salary growth in the near future. The state's 2018-19
General Fund revenues are budgeted to be about $3.5 billion higher than the previous
fiscal year as a result of the healthy growth in personal income and corporate taxes.
There is consensus belief that the current economic expansion is expected to continue
through the end of the decade, however there are several factors that will influence the
path of the state's economy in ways that are difficult to anticipate. Such factors are: tight
labor markets, Federal Reserve actions, and international trade.
According to the UCLA Anderson forecast, the U.S. should continue to see slow but
steady GDP growth, between 2-3%, while operating at full employment. Real GDP is
projected to drop to 2% in 2019 and 1% in 2020. Business investment may increase by
7% in 2018 and 2019 as a result of the recent reductions in corporate tax rates, and is
expected to continue being the driving force in economic growth. However, even with
economic growth and increased wages, affordable housing continues to be a challenge
for citizens living in high-demand areas and fast-growing cities, such as the San Francisco
bay area.
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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 agreed upon new
contracts which are effective through April 17, 2022, with such agreements approved by
the Board on November 1, 2018. The previous labor contracts progressively reduced,
and in fiscal year 2016-17 eliminated the District contributions toward the employee share
of employee retirement costs, while the District continues to pay the employer share of
retirement costs. Payment of the unfunded liability for pension and other post
employment benefits has been a major concern for the District as it is for many public
entities. An additional payment for the unfunded actuarial accrued liability ("UAAL") is
included as part of the financial plan and recent year budgets for the District to alleviate
future fiscal obligations of the unfunded liability. Routine amortization, investment
performance, and the additional payments toward the URAL have resulted in substantial
declines in pension and OPEB liabilities in recent years.
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 as required to maintain financial
stability and cover projected cost increases 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 has maintained an essentially flat O&M budget since
FY 2014-15, while budgeted investment in capital projects has increased over this period.
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's 2009 debt was refinanced
in September 2018 to save a projected $8.2 million in interest costs through 2029. 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 and other goals as specified in its strategic plan for the coming years.
Long-Term Financial Planning
District management analyzes and updates a strategic plan every two years, with the six
goals being: provide exceptional customer service and maintain an excellent reputation
in the community; strive to meet regulatory requirements; be a fiscally sound and effective
wastewater utility; recruit, develop and retain a highly trained and safe workforce;
maintain a reliable infrastructure; and embrace technology, innovation and environmental
sustainability. Strategies to achieve each of the goals are developed, as well as metrics
to evaluate success. Performance on achievement of the goals in the plan is reported
quarterly to the Board of Directors. 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 projected
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changes 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
also considered in the financial planning process. The District currently has an 83%
funded ratio for the pension unfunded actuarial liability and a 56% funded ratio for OPEB,
with the funded ratio for OPEB expected to increase to approximately 75% with a move
to CaIPERs as the healthcare plan provider in 2019.
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. During fiscal year 2017-18 the District contributed $5.359
million to a new IRS Section 115 pension prefunding trust to help potentially smooth future
pension contribution costs and to increase the pension funded ratio. Section 53646 of
the California Government Code governs our investment practices, and is reviewed
annually by staff, legal counsel and 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 have been invested with a moderate investment strategy,
reflecting the relatively long-term horizon for use of the funds. The new Section 115
pension trust funds are invested using a moderately conservative strategy, reflecting the
potentially somewhat shorter term need for the funds. The two trusts are managed by an
outside investment advisor subject to investment policies adopted by the Board. 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 20 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 13 years
by improved sewer cleaning and a robust sewer rehabilitation program.
The District had a two-year Strategic Business Plan for FY 2016-17 through FY 2017-18,
and adopted an updated plan covering FY 2018-19 and FY 2019-20. 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.
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, and anticipates an update of that study in FY 2018-19. The District is seeking out
new revenues and funding sources, such as interagency agreements and possible state
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loan and grant opportunities. State Revolving Fund loan applications are planned for
submission by December 2018 to finance certain projects in the 10 year capital plan.
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 has been
used as a roadmap for the capital improvements for the next 20 years. Individual projects
are proposed in an annual capital improvement budget, and brought to the Board for
approval above specified limits. In May 2018, the Board approved the adoption of the
Uniform Construction Cost Accounting Act, which will provide a streamlined contracting
and approval process for smaller capital projects.
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, 2017. This was the eighteenth consecutive year that the District has
achieved this prestigious award. In order to be awarded a Certificate of Achievement, a
government must publish an easily readable and efficiently organized comprehensive
annual financial report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our
current comprehensive annual financial report continues to meet the program's
requirements and we are submitting it to the GFOA to determine its eligibility for another
certificate.
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, Diana Diaz,
Accountant, and Amal Lyon, Accountant.
■ The outgoing Finance Manager, Thea Vassallo, who retired with 20 years of service
in August 2018.
■ The Reproduction and Graphics Team who creatively and professionally prepared this
finished document.
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■ Engineering and operations staff who provided much of the statistical information
included in this document.
■ The District's Board of Directors and Management Team for their support in preparing
this document as well as their day-to-day support in conducting the financial
operations of the District in a prudent and responsible manner.
Respectfully submitted,
tia
Philip L iber
Director of Finance &Administration
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CENTRAL CONTRA COSTA SANITARY DISTRICT
BOARD OF DIRECTORS
June 30, 2018
James A. Nejedly..............................................President
David R. Williams...............................President Pro-Tem
Paul H. Causey...................................................Member
Michael R. McGill................................................Member
Tad J. Pilecki ......................................................Member
Viii
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40„ arn Ew�CS D CENTF�AL SAN ' •- . • �.
CENTRAL CONTRA COSTA SANITARY DISTRICT
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VISI (DN � M *411%
V A LU
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OUR VISION
To be a high-performance organization that provides exceptional customer service and
regulatory compliance at responsible rates
OUR MISSION
To protect public health and the environment
OUR VALUES
People Community Principles Leadership and
• Value customers • Value water sector . Be truthful and honest Commitment
and employees partners • Be fair, kind and . Promote a passionate and
• Respect each other • Foster excellent friend[yempowered workforce
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• Work as a team community relationships . Encourage continuous
• Take ownership and g
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• • Be open,transparent rent res onsi bi lit growth and development
Work effectively p y
and efficient) and access ble . Inspire dedication and
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• Celebrate our • Understand service top-quality results
successes and learn level expectations . Provide a safe and
from our challenges . guildartnershi s healthful environment
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CENTRAL CONTRA COSTA SANITARY DISTRICT
Organization Chart - Composite
Electorate
Board
Members
General
Manager
F I I
Director of Director of
Secretary of the Deputy General Counsel for the
Finance and Engineering &
District Administration Manager Technical Svcs. District
Information Collection Capital Projects
Technology System Division
Operations
Plant Environmental &
Finance Maintenance Regulatory
Compliance
Purchasing & Plant Planning &
Materials Operations Development
Services Services
Communication Human
& I ntergov. Resources
Relations
Risk x
Management
December 18, 2018 Regular FINAN eting Agenda Packet- Page 203 of 288
Page 18 of 96
Central Contra Costa Sanitary District
Map of Service Area
June 30, 2018
Benicia
San
Pablo Suisun Bay jo
Bay
2 4
Herculesa
❑ Efl 4 ittsburg
o
rtinez
F-61
d �
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Concord Antioch
Pleasant Hill
Clayton
F8-Rj Walnut Creek
F-91
10 11
F121 Lafayette
Y
� 1
Berkeley Orinda
°-
Alamo
Moraga
:._P'
C Danville
Oakland
San Ramon
15
San N
Francisco
Bay 0 2 4
Miles
Pumping Station
CCCSD's Headquarters Office Building,
Treatment Plant, and HHW Collection Facility Privately Owned Pumping Station
CCCSD's Collection System Operations CCCSD Pumping Stations
Department(sewer maintenance) 1. Martinez 11. Lower Orinda
2. Fairview 12. Bates Blvd. -Orinda
Wastewater collection and treatment and 3. Maltby 13. Orinda Crossroads
HHW collection for 348,330 people 4. Clyde 14. Moraga
Wastewater treatment and HHW collection 5. Concord Industrial 15. San Ramon
for 140,590 residents in Concord and Clayton 6. Buchanan Field North PRIVATELY OWNED:
by contract 7. Buchanan Field South 16. Wagner Ranch
8. Sleepy Hollow 17. Lower Wilder
HHW disposal services only 9. Acacia 18. Upper Wilder
10. Flush Kleen
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Page 19 of 96
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Central Contra Costa Sanitary District
California
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2017
P 7�
Executive Director/CEO
xii
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ffAkk M A E
ASSOCIATE
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, 2018 and 2017, 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 opinions 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
301 2018 and 2017, 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
34 7 8 Buski rk Ave n ue,;quite 21� E maze@mazeassociates.com
Pleasant Hill,CA 94523 W mazea sociate a om
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Change in Accounting Principles
Management adopted the provisions of Governmental Accounting Standards Board Statement No. 75 —Accounting
and Financial Reporting for Post-employment Benefits Other Than Pensions, which became effective during the
year ended June 30, 2018 and had material effects on the financial statements as discussed in Note 11 B and Note 10
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.
Pleasant Hill, California
December 4, 2018
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Allioll Central Costa Sanitary District
Protecting public health and the environment 5019 Imhoff Place,Martinez, CA 94553-4392
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, 2018. This information is
presented in conjunction with the audited financial statements, which follow this report.
FINANCIAL HIGHLIGHTS
The District's 2017-18 financial highlights are listed below. These results are discussed in more detail
later in the report.
• The District's total ending net position decreased by $5.7 million or -0.90% in 2017-18. This is
mainly due to increases in operating and non-operating revenues and capital contributions.
• Total revenues in 2017-18 increased by $5.7 million or 5.28%. The total Sewer Service Charge
(SSC) rate increased for single family homes by 5.37% to $530 and 5.34% for multi-family
homes to $513. Increased property values in the service area lead to an increase in property
taxes.
• Total 2017-18 expenses increased by $8.1 million or 7.91%. This is mainly due to an increase
in additional contributions to the OPEB UAAL and the implementation of GASB 75 which
required the District to record a liability and expense to reflect the balance and activity of its total
Net OPEB Liability.
• Capital Contributions increased in 2017-18 by $5.2 million or 19.53%. 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.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual report includes the Management's Discussion and Analysis report, the independent auditor's
report and the basic financial statements of the District. The financial statements also include notes that
explain information in the financial statements in more detail. This report also contains other
supplementary information in addition to the basic financial statements.
REQUIRED FINANCIAL STATEMENTS
The District's financial statements report information utilizing methods similar to those used by private
sector companies. These statements offer short and long-term financial information about the District's
activities.
• Statement of Net Position — reports the District's current financial resources (short-term
spendable resources) with capital assets, deferred outflows of resources, long-term obligations,
and deferred inflows of resources.
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• 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 17-18 FY 17-18
vs. vs.
2017-18 2016-17 2015-16 FY 16-17 FY 15-16
Current Assets $ 119,043,984 $ 105,876,117 $ 95,584,553 12.44% 24.54%
Capital Assets 652,402,342 632,452,631 616,005,037 3.15% 5.91%
Other Non-Current Assets 1114621838 1010571548 715801512 13.97% 51.21%
Total Assets 78239093164 7483386,296 71951705102 4.61% 8.86%
Deferred Outflows of
Resources- Pension &
OPEB Related 2135333421 2930783203 3454645472 -25.95% -37.52%
Current Liabilities 1414411630 1317201331 10,9861379 5.26% 31.45%
Non-Current Liabilities 14019521831 12110551247 12714583808 16.44% 10.59%
Total Liabilities 15553945461 13437753578 13854455187 15.30% 12.24%
Deferred Inflows of
Resources- Pension
Related 2830763634 1630513905 2156185960 74.91% 29.87%
Net Investment in
Capital Assets 623,307,342 600,770,254 581,844,903 3.75% 7.13%
Restricted - Debt Service 434213504 434493437 41363,251 -0.63% 1.34%
Unrestricted 6,757,356 21,417,325 733621273 -131.55% -191.78%
Total Net Position $ 62059715490 $ 62656375016 $ 59355703427 -0.90% 4.62%
The total net position of the District increased from $593.6 million in 2015-16 to $626.6 million in
2016-17 and decreased to $621.0 million in 2017-18. The District's total assets have increased by $34.5
million or 4.61% compared to 2016-17, and $63.7 million or 8.86% compared to 2015-16. The total
liabilities increased $20.6 million or 15.30% compared to 2016-17, and increased $16.9 million or
12.24% compared to 2015-16. The increase in net position over the three-year period totals $27.4
million or 4.62% and is the result of the combination of net income, capital contributions, and the
implementation of GASB 75 which required the District to record the Net OPEB Liability.
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By far the largest portion of the District's net position (100.4%) 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 negative balance of$6.8 million in unrestricted net position decreased by $28.2 million
from 2016-17 and decreased by $14.1 million from 2015-16 due to increased operating and non-
operating revenues and capital contributions, and the implementation of GASB 75 which required the
District to record the Net OPEB Liability in the Statement of Net Position.
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 17-18 FY 17-18
vs. vs.
2017-18 2016-17 2015-16 FY 16-17 FY 15-16
Sewer Service Charges SSC $ 9017971844 $ 8619891488 $861147,863 4.38% 5.40%
Other Service Charges and
Miscellaneous 136981591 136351953 115861673 3.83% 7.05%
Total Operating Revenue 929496,435 8836253441 8757349536 4.37% 5.43%
Property Tax 17,650,741 16,318,874 14,835,167 8.16% 18.98%
Permit& Inspection Fees 215921137 216001888 2,546,723 -0.34% 1.78%
Interest and All Other 212991187 117281082 117571403 33.05% 30.83%
Total Non-Operating
Revenues 2295423065 2096473844 1991399293 9.17% 17.78%
Total Revenues 11550389500 10992733285 10698735829 5.28% 7.64%
Total Labor and Benefits 6818621484 6213051898 6319881158 10.52% 7.62%
Chemicals & Utilities 513743271 631061904 5,053,263 -12.00% 6.35%
Repairs and Maintenance 414281947 416621918 4,8911062 -5.02% -9.45%
Professional, Legal and
Outside Services 219881280 338913224 411961302 -23.20% -28.79%
Materials & Supplies 211033331 230081100 2,2511356 4.74% -6.57%
Hauling and Disposal 110323064 9993168 889,471 3.29% 16.03%
Self-Insurance Expense 788,689 6971792 11600,617 13.03% -50.73%
Pension Expense 4,441,2 (41080)558) (9,778,389 8.84% -54.58%
OPEB Expense 515451563 - - 100.00% 100.00%
All Other 114361950 139811186 118151647 -27.47% -20.86%
Depreciation Expense 21,561,704 22,892,153 22,885,030 -5.81% -5.78%
Total Operating Expenses 109,681,078 10194643785 9717925517 8.10% 12.16%
Non-Operating Expense -
Interest Expense 15230,680 113139398 194279641 -6.30% -13.8006
Total Expenses $110,911,758 $ 102,778,183 $99,220,158 7.91% 11.78%
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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 17-18 FY 17-18
vs. vs.
2017-18 2016-17 2015-16 FY 16-17 FY 15-16
Income Before Capital
Contributions 43126,742 654955102 736535671 -36.46% -46.08%
Customer Contributions SSC 2034253514 1616281105 1139913752 22.84% 70.33%
Contributed Sewer Lines 230031614 218991042 137743168 -30.89% 12.93%
Capital Contributions-
Connection Fees 913311420 710441340 815431758 32.47% 9.22%
Total Capital Contributions 3137605548 2655715487 2233093678 19.53% 42.36%
Change in Net Position 3538873290 3350665589 2959633349 8.53% 19.77%
Beginning Net Position 62636373016 59355705427 56336073078 5.57% 11.18%
Prior Period Adjustment-
GASB 75 Note 1 M 4135525816 - - - -
Ending Net Position $ 62059715490 $ 62656375016 $ 59355705427 -0.90% 4.62%
Revenue
Total operating revenues increased from $87.7 million in 2015-16 to $88.6 million in 2016-17 and to
$92.5 million in 2017-18. Operating revenues increased by $3.9 million or 4.37% compared to 2016-17,
and increased by $4.8 million or 5.43% comparing 2017-18 to 2015-16.
Total non-operating revenue increased from $19.1 million in 2015-16 to $20.6 million in 2016-17 and to
$22.5 million in 2017-18. An increase compared to 2016-17 by $1.9 million or 9.17%, and increased by
$3.4 million or 17.78% comparing 2017-18 to 2015-16.
Total revenues increased from $106.9 million in 2015-16 to $109.3 million in 2016-17 to $115.0 million
in 2017-18. The change in total revenue resulted in an increase of $5.7 million or 5.28% comparing
2017-18 to 2016-17, and increased by $8.1 million or 7.64% comparing 2017-18 to 2015-16. There was
a 5.37% rate increase for single family homes and a 5.34% rate increase for multi-family homes in
2017-18, a 6.79% rate increase for single family homes and a 5.18% rate increase for multi-family
homes in 2016-17, and a 7.29% rate increase for single family homes and a 5.47% rate increase for
multi-family homes in 2015-16. The Sewer Service Charge allocation to cover capital costs increased to
15.70% in 2017-18 from 14.25% in 2016-17 and 10.33% in 2015-16. Property tax revenue increased by
$1.3 million or 8.16% from 2017-18 to 2016-17, and $2.8 million or 18.98% comparing 2017-18 to
2015-2016 due to the continued increase in property values.
Expenses
Total expenses increased from $99.2 million in 2015-16 to $102.8 million in 2016-17 and increased to
$110.9 million in 2017-18. In 2017-18, total expenses increased by $8.1 million or 7.91% compared to
2016-17. Comparing 2017-18 to 2015-16, total expenses were $11.7 million or 11.78% higher.
Increase from 2015-16 is mainly due to additional contributions to pension and OPEB UAAL, the
implementation of GASB 75, and the pension and OPEB expense adjustments. Non-operating expense
is mainly driven by debt service interest expense.
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Total income before capital contributions went from $7.7 million in 2015-16, to $6.5 million in 2016-17,
and $4.1 million in 2017-18.
Total capital contributions in 2017-18 were $31.8 million compared to $26.6 million in 2016-17 and
$22.3 million in 2015-16. This was mainly due to higher customer contributions SSC in 2017-18 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
$2.8 million or 8.53% when comparing 2017-18 to 2016-17 and increased $5.9 million or 19.77% when
comparing 2017-18 to 2015-16.
CAPITAL ASSETS
Capital assets for fiscal years 2017-18, 2016-17 and 2015-16 totaled $652.4 million, $632.4 million, and
$616.0 million, respectively. Capital assets include the District's entire major infrastructure including
wastewater treatment facilities, sewers, land, buildings, pumping stations, vehicles, intangible assets and
furniture and equipment exceeding our capitalization policy limit of$5,000, net of depreciation. As of
June 30, 2018, the District's investment in capital assets totaled $652.4 million, an increase of $20.0
million or 3.15% over the capital asset balance of $632.4 million at June 30, 2017. Capital assets
increased by $36.4 million or 5.91% comparing 2017-18 to 2015-16. 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 17-18 FY 17-18
vs. vs.
2017-18 2016-17 2015-16 FY 16-17 FY 15-16
Land $ 17,320,570 $ 17,320,570 $ 17,320,570 0.00% 0.00%
Sewage Collection System 37912471498 35115031806 341,4121320 7.89% 11.08%
Contributed Sewer Lines 159,795,333 157,791,719 154,863,632 1.27% 3.18%
Outfall Sewers 1133713574 1133711574 111371,574 0.00% 0.00%
Sewage Treatment Plant 34136753108 333,962,356 323,360,945 2.31% 5.66%
Recycled Water Infrastructure 20,292,366 20,292,366 19,215,350 0.00% 5.60%
Pumping Stations 5713271020 5712781141 5612701149 0.09% 1.88%
Buildings 4412381508 4412381508 4214121648 0.00% 4.30%
Intangible Assets 439493507 439411707 4,936,407 0.16% 0.27%
Furniture & Equipment 1338411424 1410121837 1216271569 -1.22% 9.61%
Motor Vehicles 736951424 736141982 713781730 1.06% 4.29%
Construction In Progress 35,820,635 3313881 571 24,480,982 7.28% 46.32%
Subtotal 1109395749967 1,053,717,137 1501556509876 3.78% 7.67%
Less Accumulated
Depreciation 44111721625 421,2641506 39916451839 4.73% 10.39%
Total Capital Assets (net of
depreciation) $ 652,4025342 1 $ 632,4525631 1 $ 616,005,037 3.15% 5.91
The major reasons for the increase in capital assets, net of depreciation, of$20.0 million from 2016-17
to 2017-18 and $36.4 million from 2015-16 to 2017-18, are as follows:
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• Sewer pipe ongoing renovations, upgrades, expansion, pumping station improvements, and
contributed sewer lines increased by $29.8 million comparing 2017-18 to 2016-17 and $43.8
million comparing 2017-18 to 2015-16.
• Treatment plant infrastructure renovations, upgrades, equipment, and improvements increased by
$7.8 million comparing 2017-18 to 2016-17 and $18.3 million comparing 2017-18 to 2015-16.
• All other asset categories, including construction in progress, increased by $2.3 million
comparing 2017-18 to 2016-17 and increased by $14.0 million comparing 2017-18 to 2015-16.
• Capital asset increases are offset by an increased subtraction of accumulated depreciation of
$20.0 million comparing 2017-18 to 2016-17 and $41.6 million comparing 2017-18 to 2015-16
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 2017-18, 2016-17 and 2015-16 totaled $29.1 million, $31.7
million, and $34.2 million, respectively. As of June 30, 2018, the District's outstanding debt totaled
$29.1 million, which is a decrease of$2.6 million or -8.17% over the debt balance of$31.7 million at
June 30, 2017. Debt decreased by $5.1 million or -14.83% comparing 2017-18 to 2015-16. 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.
2017-18 2016-17 2015-16 FY 15-16 FY 14-15
Revenue Bonds $ 29,095,000 $ 31,500,000 $ 33,800,000 -7.63% -13.92%
Water Reclamation Loan - 1821377 3603134 -100.00% -100.00%
Total Debt Service $ 2930953000 $ 3136823377 $ 3431603134 -8.17% -14.83%
See Note 6 in the audited financial statements.
ECONOMIC AND OTHER FACTORS
The State of California's economy continues to grow at a modest 2-3% and is currently operating at full
employment. California unemployment rate is projected to be between 34% through 2020. Changes in
property values and income tax regulations could potentially effect the property tax revenue in the near
future. The federal tax reform has been targeted to increase business development which should
continue to stimulate growth in the state and local economies. Federal and State economic challenges
will continue into the future and could have a trickle-down effect on local government.
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Items specifically impacting the District are:
• Current and future legislation impacting public employee pensions is still being litigated,
currently requiring higher employee contributions and lower pensions by eliminating spiking.
• 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 was able to refinance the 2009 debt in September 2018 to save a projected $8.2 million
in interest costs through 2029.
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: Director of
Finance & Administration Philip Leiber, Central Contra Costa Sanitary District, 5019 Imhoff Place,
Martinez, CA 94553.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF NET POSITION
JUNE 30, 2018 AND 2017
ASSETS 2018 2017
CURRENT ASSETS
Cash and cash equivalents(Note 2) $5711371987 $4113461327
Short term investments(Note 2) 3410001000 391000,000
Accounts receivable,net(Note 3) 22196100 19,965,896
Interest receivable 991384 141665
Parts and supplies 212451055 210891765
Prepaid expenses 215991758 31459,464
Total current assets 1191043,984 10518761117
NON-CURRENT ASSETS
Restricted cash and cash equivalents(Notes I.F. and 2) 514971153 236,702
Restricted investments(Note 2) 418561450 41856,450
Assessment Districts receivable(Note 4) 11109,235 1,311,825
Net OPEB asset - 316521571
Capital assets:
Nondepreciable(Note 5) 581090,712 5516501848
Depreciable,net of accumulated depreciation(Note 5) 594,311,630 57618011783
Total capital assets,net 65214021342 632,4521631
Total non-current assets 663,8651180 64215101179
TOTAL ASSETS 78219091164 74813861296
DEFERRED OUTFLOWS OF RESOURCES
Pension related(Note 9) 21,503,021 29,0781203
OPEB related(Note 10) 301400 -
Total Deferred Outflows of Resources 2115331421 2910781203
(Continued)
See accompanying notes to financial statements
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CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF NET POSITION
JUNE 30, 2018 AND 2017
LIABILITIES 2018 2017
CURRENT LIABILITIES
Accounts payable and accrued expenses $916641738 $81908,133
Interest payable 534,330 558,380
Refunding Water Revenue Bonds-current portion(Note 6) 2148000 2,4051000
Water Reclamation Loan Contract-current portion(Note 6) - 1821377
Accrued compensated absences-current portion(Note 1.J.) 4641500 4571000
Provision for uninsured claims(Note 7) 8821230 8071079
Refundable deposits 4151832 4021362
Total current liabilities 14,441,630 13,7201331
NON-CURRENT LIABILITIES
Refunding Water Revenue Bonds,noncurrent portion(Note 6) 2616151000 2910951000
Accrued compensated absences,noncurrent portion(Note 1.J.) 41181,377 4,113,131
Net pension liability(Note 9) 6318061000 8718471116
Net OPEB liability(Note 10) 4613501454 -
Total non-current liabilities 14019521831 121,0551247
TOTAL LIABILITIES 155,3941461 13417751578
DEFERRED INFLOWS OF RESOURCES
Pension related(Note 9) 2810761634 16,0511905
Total Deferred Inflows of Resources 28,076,634 1610511905
NET POSITION(Note 11)
Net investment in capital assets 623,307,342 60017701254
Restricted for debt service 4,421,504 4,4491437
Unrestricted (61757,356) 2114171325
TOTAL NET POSITION $62019711490 $6261637,016
See accompanying notes to financial statements
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CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF REVENUES,EXPENSES AND CHANGES IN NET POSITION
FOR THE YEARS ENDED JUNE 30,2018 AND 2017
2018 2017
OPERATING REVENUES
Sewer service charges(SSC) $75,8247)221 $73,13871235
Service charges-City of Concord(Note 8) 1419731623 1318511253
Other services charges 17,0781594 110297,500
Miscellaneous charges 619,997 606,453
Total operating revenues 9214961435 8816251441
OPERATING EXPENSES
Sewage collection and pumping stations 157,9541881 1618267,922
Sewage treatment 2610501876 2516311809
Engineering 16,472,501 15,342,640
Recycled water 1710237)757 97071640
Administrative and general 277,5131001 2318817,179
Pension expense adjustments(Note 9) (4,441,205) (4,080,558)
OPEB expense adjustments(Note 10) 5,545,563 -
Depreciation(Note 5) 21715617)704 227)89271153
Total operating expenses 10916811078 10114641785
OPERATING(LOSSES) (17,184,643) (12,839,344)
NONOPERATING REVENUES(EXPENSES)
Taxes 17716507)741 167)31871874
Permit and inspection fees 27,5921137 216007,888
Interest earnings 1,223,349 7611838
Interest expense (1,230,680) (1,313,398)
Other income(expense),net 1710757)838 96671244
Total nonoperating revenues(expenses),net 21,311,385 1913341446
INCOME BEFORE CAPITAL CONTRIBUTIONS 471126,742 6,49571102
CAPITAL CONTRIBUTIONS
City of Concord contributions to capital costs(Note 8) 6713647)725 4747671961
Customer contributions to capital cost(SSC) 1410601789 12,151,144
Contributed sewer lines 27,0031614 218997,042
Capital contributions-connection fees 9,331,420 7,044,340
Total capital contributions 317,7601548 2615717,487
CHANGE IN NET POSITION 351887,290 33,066,589
NET POSITION,BEGINNING OF YEAR 62616371016 59315701427
Prior period adjustment for implementation of GASB Statement 75(Note 1113) (41)552,816) -
NET POSITION,END OF YEAR $62019711490 $62616371016
See accompanying notes to financial statements
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CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30,2018 AND 2017
2018 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $8917031121 $87188207
Payments to suppliers (41,555,023) (40,2331129)
Payments to employees and related benefits (41,035,510) (42,646,197)
Net cash provided(used)by operating activities 711121588 502,761
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Receipt of taxes 17,650,741 16,318,874
Inspection/permit fees and other non-operating income 316671975 3,567,132
Cash flows from noncapital financing activities 21,318,716 190606
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contributions 22,429,128 19,527,147
Connection fees 9,331,420 7,044,340
Acquisition and construction of capital assets (41,511,415) (39,5951091)
Proceeds from disposal of capital assets - 255,344
Interest paid on long-term debt (1,254,730) (1,347,398)
Principal payments on long-term debt (2,587,377) (2,477,757)
Cash flows(used for)capital and related financing activities (13,592,974) (16,5931415)
CASH FLOWS FROM INVESTING ACTIVITIES
Redemption of investments 72,075,151 43071079
Acquisition of investments (67,000,000) (44,000,000)
Interest received 1,138,630 92800
Cash flows from(used for)investing activities 61213,781 735,959
NET INCREASE(DECREASE)IN CASH 21,052,111 9,031,311
Cash,beginning of year 41,583,029 32,5511718
Cash,end of year $62,635,140 $41,583,029
(Continued)
See accompanying notes to financial statements
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CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30,2018 AND 2017
2018 2017
Reconciliation of operating(loss)to net cash provided by
operating activities:
Operating(losses) ($17,184,643) ($12,839,344)
Adjustments to reconcile operating losses to cash
flows from operating activities:
Depreciation 21,561,704 22,892,153
Changes in assets and liabilities:
Receivables,net (2,793,314) (743,354)
Parts and supplies (155,290) 56,407
Prepaid expenses 859,706 (673,057)
Net OPEB asset 3,652,571 (2,544,327)
Accounts payable and accrued expenses 75605 2,733,908
Accrued payroll and related expenses 751746 92,589
Refundable deposits 131470 1081344
Net pension liability (4,441,205) (4,080,558)
Net OPEB liability 4,767,238 -
Net cash provided(used)by operating activities $7,112,588 $5,002,761
SCHEDULE OF NON CASH ACTIVITY
Change in fair value of investments $1,138,630 $928,880
Capital asset donations 210031614 2,899,052
Total non cash activity $311421244 $3,827,932
CASH AND CASH EQUIVALENTS,AS PRESENTED ON
STATEMENT OF NET POSITION:
Unrestricted cash and cash equivalents $5711371987 $411346,327
Restricted cash and cash equivalents 5,497,153 236,702
Total cash and cash equivalents at end of year $62,635,140 $41,583,029
See accompanying notes to financial statements
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CENTRAL CONTRA COUNTY SANITARY DISTRICT
STATEMENTS OF FIDUCIARY NET POSITION
FIDUCIARY FUND
OTHER POST-EMPLOYMENT BENEFIT TRUST FUND
JUNE 30,2018 AND 2017
2018 2017
ASSETS
Investments with Trustees:
Cash equivalents(Note 2) $116351346 $111371442
Equity securities 151961,335 26,5641682
Equity mutual funds 4119991998 2416261243
Total investments 5915961679 52,328,367
Total Assets $5915961679 $52,328,367
NET POSITION
Net position held in trust for OPEB benefits $591596,679 $52,3285367
See accompanying notes to basic financial statements
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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 30,2018 AND 2017
2018 2017
ADDITIONS
Contributions:
District $319461500 $510281700
Total contributions 319461500 510281700
Investment income:
Net appreciation in fair value of investments 21500,297 3021694
Interest,dividends and other 9591972 9321882
Less: investment expenses (138,457) (139,063)
Total net investment income 313211812 4,596,513
Total additions 712681312 916251213
Change in net position 712681312 9,625,213
NET POSITION
Beginning of year 521328,367 42,7031154
End of year $591596,679 $52,3281367
See accompanying notes to basic financial statements
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
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.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
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.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
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, 2018 and 2017 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.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
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
L 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 11/2 percent per month. Unsecured property tax is due on July 1 and becomes
delinquent on August 31. The penalty percentage rates are the same as secured property tax.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
NOTE 1—DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
J. 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:
2018 2017
Beginning Balance $4,5701131 $4,4771542
Additions 3261791 6271663
Payments (251,045) (535,074)
Ending Balance $4,6451877 $4,5701131
Current Portion $4641500 $4571000
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.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
NOTE 1–DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
M. Implementation of Governmental Accounting Standards Board(GASB)Pronouncements
GASB Statement No. 75 Accounting and Financial Reporting for Post-employment Benefits
Other Than Pensions. The primary objective of this Statement is to improve accounting and
financial reporting by state and local governments for post-employment benefits other than
pensions (other post-employment benefits or OPEB). It also improves information provided by
state and local governmental employers about financial support for OPEB that is provided by
other entities. This Statement results from a comprehensive review of the effectiveness of existing
standards of accounting and financial reporting for all post-employment benefits (pensions and
OPEB) with regard to providing decision-useful information, supporting assessments of
accountability and inter-period equity, and creating additional transparency. This statement
required the District to make a prior period adjustment. As a result, the beginning net position
was reduced by $41,552,816.
GASB Statement No. 81 –Irrevocable Split-Interest Agreements. This Statement requires that a
government that receives resources pursuant to an irrevocable split-interest agreement recognize
assets, liabilities, and deferred inflows of resources at the inception of the agreement.
Furthermore, this Statement requires that a government recognize assets representing its
beneficial interests in irrevocable split-interest agreements that are administered by a third party,
if the government controls the present service capacity of the beneficial interests. This Statement
requires that a government recognize revenue when the resources become applicable to the
reporting period. The implementation of this pronouncement did not have a financial impact on
the District.
GASB Statement No. 85 – Omnibus. The objective of this Statement is to address practice
issues that have been identified during implementation and application of certain GASB
Statements. This Statement addresses a variety of topics including issues related to blending
component units, goodwill, fair value measurement and application, and postemployment benefits
(pensions and other postemployment benefits [OPEB]). This statement was implemented by the
District in the current year. See Note 10 for additional information.
GASB Statement No. 86 – Certain Debt Extinguishment Issues. The primary objective of this
Statement is to improve consistency in accounting and financial reporting for in-substance
defeasance of debt by providing guidance for transactions in which cash and other monetary
assets acquired with only existing resources—resources other than the proceeds of refunding
debt—are placed in an irrevocable trust for the sole purpose of extinguishing debt. This
Statement also improves accounting and financial reporting for prepaid insurance on debt that is
extinguished and notes to financial statements for debt that is defeased in substance. The
implementation of this pronouncement did not have a financial impact on the District.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
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:
2018 2017
Cash and cash equivalents $5711371987 $41,346,327
Short term investments 3410001000 3910001000
Restricted cash and cash equivalents 1001000 2361702
Restricted investments 418561450 418561450
Total District Cash and Investments 9610941437 8514391479
Cash and investments held with Pension trust 513971153
Cash and investments held with OPEB trust 5915961679 52,328,367
Total Cash and Investments $16110881269 $13717671846
B. Policies and Practices
The District is authorized under California Government Code to make direct investments in local
agency bonds, notes, or warrants within the State: U.S. Treasury instruments, registered State
warrants or treasury notes, securities of the U.S. Governments, or its agencies, commercial paper,
certificates of deposit placed with commercial banks and/or savings with loan companies, and
certificates of participation. State code and the District's investment policy prohibit the District
from investing in investments with a rating of less than A or equivalent.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
NOTE 2—CASH AND INVESTMENTS (Continued)
C. Genual Authorizations
Limitations as they relate to interest rate risk, credit risk, and concentration of credit risk are
indicated in the schedules below:
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% 40% 5% N/A
Commercial Paper(1) 270 25% 10% 5% A-1
Medium Term Notes 5 years 30% 5% 5% AA
Collateralized Certificates of Deposit(2) 5 years 30% None 30% Aaa
Supranationals 5 years 30% 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
(2)Prior approval of the Board of Directors must be obtained to acquire maturities beyond one year,excluding
Treasury Notes and LAIF.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
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, 2018:
2018
Investment Type Level 2 Total
Investments Reported at Fair Value:
U.S.Federal Agency Securities-FHLB $190000 $190000
Commercial Paper-General Electric 7,50000 7,50000
Commercial Paper-Mitsubishi UFGUnion Bank 2,50000 2,50000
Commercial Paper-Chevron 50000 50000
Total Investments $340000 340000
Investments Measured at Cost:
Certificates of Deposit-Non-Negotiable 4,856450
Investments Exempt from Fair Value Hierarchy:
California Local Agency Investment Fund 520000
Total Investments 9018561450
Cash and investments held with Pension trust 513971153
Cash and investments held with OPEB trust 59,596,679
Cash in bank 512371987
Total Cash and Investments $16110881269
U.S. Federal Agency Securities and Commercial Paper totaling $19 million and $15 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.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
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, 2017:
2017
Investment Type Level 1 Level Total
Investments Reported at Fair Value:
U.S.Federal Agency Securities-FHLB $20,000,000 $20,000,000
U.S.Treasury Notes $15,000,000 15,000,000
Commercial Paper-BNP Paribas 4,000,000 4,000,000
Total Investments $15,000,000 $24,000,000 39,000,000
Investments Reported at Cost:
Certificates of Deposit-Non-Negotiable 4,856,450
Investments Uncategorized:
California Local Agency Investment Fund 30,200,000
Total Investments 74,056,450
Cash and investments held with OPEB trust 52,328,367
Cash in bank 11,383,029
Total Cash and Investments $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.
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.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
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:
2018
12 Months More than
Investment Type or less 12 Months Maturity
Certificates of Deposit-Debt Reserve $4,856,450 4/28/20
Commercial Paper-General Electric $2,500,000 7/25/18
Commercial Paper-Mitsubishi UFG Union Bank 2,500,000 7/27/18
Commercial Paper-General Electric 5,000,000 9/6/18
Commercial Paper-Chevron 5,000,000 9/6/18
U.S Federal Agency Securities-FHLB 4,000,000 7/18/18
U.S Federal Agency Securities-FHLB 5,000,000 7/25/18
U.S Federal Agency Securities-FHLB 5,000,000 12/5/18
U.S Federal Agency Securities-FHLB 5,000,000 5/25/19
California Local Agency Investment Fund 52,000,000
Total Investments 86,000,000 4,856,450
Cash and investments held with Pension trust 5,397,153
Cash and investments held with OPEB trust 59,596,679
Cash in bank 5,237,987
Total Cash and Investments $156,231,819 $4,856,450
2017
12 Months More than
Investment Type or less 12 Months Maturity
Certificates of Deposit-Debt Reserve $4,856,450 4/28/20
Commercial Paper-BNP Paribas New York $4,000,000 7/19/17
U.S.Treasury Notes 15,000,000 12/7/17
U.S Federal Agency Securities-FHLB 20,000,000 7/20/17
California Local Agency Investment Fund 30,200,000 Not applicable
Total Investments 69,200,000 4,856,450
Cash and investments held with OPEB trust 52,328,367
Cash in bank 11,383,029
Total Cash and Investments $132,911,396 $4,856,450
F. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of
the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the actual rating as of June 30, of each
investment type as provided by Moody's investment rating system, of which a P -1 rating is the
top rating for short term investments.
DRAFT 29
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
NOTE 2—CASH AND INVESTMENTS (Continued)
Totals
Investment Type 2018 2017
Rated P-1:
U.S.Federal Agency Securities-FHLB $19001000 $20,000,000
Commercial Paper-General Electric 7,50000
Commercial Paper-Mitsubishi UFGUnion Bank 2,50000
Commercial Paper-Chevron 50000
Commercial Paper-BNP Paribas New York 4100000
Total Rated Investments 340000 240000
Not rated:
Certificates of Deposit-non-negotiable 4,856450 41856450
California Local Agency Investment Fund 520000 30,20000
U.S.Treasury Notes 150000
Cash and investments held with Pension trust 5,397,153
Cash and investments held with OPEB trust 59,596,679 52,328,367
Cash in Bank 5,237,987 11,383,029
Total Cash and Investments $16108,269 $1371767,846
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, 2018 and 2017,these investments matured in an average of 193
and 194 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.
DRAFT 30
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
NOTE 2—CASH AND INVESTMENTS (Continued)
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:
2018 2017
City of Concord(see Note 8) $21,338,348 $18,328,214
Household Hazardous Waste Partners 821,874 75306
All Other 801,578 8831996
Total Accounts Receivable $22,9611800 $19,9651896
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, 2018 and
2017 was $162,781 and $217,778, 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,
2018 and 2017 was $946,454 and$1,094,047, respectively.
The total receivable balance at June 3 0, 2018 and 2017 for CAD and AVAD was $1,109,23 5 and
$1,311,825, respectively, and is shown as a non-current asset on the Statement of Net Position.
DRAFT 31
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
NOTE 5—CAPITAL ASSETS
Property, plant and equipment, and construction in progress are summarized below for the year
ended June 30, 2018:
Balance at Transfers& Balance at
June 30,2017 Additions Retirements Adjustments June 30,2018
Capital assets not being depreciated:
Land $17,320,570 $17,320,570
Easements(intangible) 4,941,707 $7,800 4,949,507
Construction in Progress 33,388,571 $39,507,801 (37,075,737) 35,820,635
Total nondepreciated assets 55,650,848 39,507,801 (37,067,937) 58,090,712
Capital assets being depreciated:
Sewage collection system 351,503,806 ($364,004) 28,107,696 379,247,498
Contributed sewer lines 157,791,719 2,003,614 159,795,333
Outfall sewers 11,371,574 11,371,574
Sewage treatment plant 333,962,356 7,712,752 341,675,108
Recycled water infrastructure 20,292,366 20,292,366
Pumping stations 57,278,141 48,879 57,327,020
Buildings 44,238,508 44,238,508
Furniture and equipment 14,012,837 (1,264,023) 1,092,610 13,841,424
Motor vehicles 7,614,982 (25,558) 106,000 7,695,424
Total depreciated assets 998,066,289 2,003,614 (1,653,585) 37,067,937 1,035,484,255
Less accumulated depreciation:
Sewage collection system 68,942,762 4,947,051 (364,004) 73,525,809
Contributed sewer lines 59,361,001 2,130,488 61,491,489
Outfall sewers 3,616,981 151,395 3,768,376
Sewage treatment plant 220,382,147 8,427,628 228,809,775
Recycled water infrastructure 8,866,352 813,973 9,680,325
Pumping stations 33,104,637 2,183,806 35,288,443
Buildings 12,876,506 1,278,155 14,154,661
Furniture and equipment 9,260,262 1,239,776 (1,264,023) 9,236,015
Motor vehicles 4,853,858 389,432 (25,558) 5,217,732
Total accumulated depreciation 421,264,506 21,561,704 (1,653,585) 441,172,625
Total capital assets being
depreciated,net 576,801,783 (19,558,090) 37,067,937 594,311,630
Capital assets,net $632,452,631 $19,949,711 $652,402,342
DRAFT 32
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
NOTE 5—CAPITAL ASSETS (Continued)
Property, plant and equipment, and construction in progress are summarized below for the year
ended June 30, 2017:
Balance at Transfers& Balance at
June 30,2016 Additions Retirements Adjustments June 30,2017
Capital assets not being depreciated:
Land $17,320,570 $17,320,570
Easements(intangible) 4,936,407 $5,300 4,941,707
Construction in Progress 24,480,982 $36,696,049 ($255,344) (27,533,116) 33,388,571
Total nondepreciated assets 46,737,959 36,696,049 (255,344) (27,527,816) 55,650,848
Capital assets being depreciated:
Sewage collection system 341,412,320 (335,000) 10,426,486 351,503,806
Contributed sewer lines 154,863,632 2,899,042 (5,440) 34,485 157,791,719
Outfall sewers 11,371,574 11,371,574
Sewage treatment plant 323,360,945 (550,000) 11,151,411 333,962,356
Recycled water infrastructure 19,215,350 1,077,016 20,292,366
Pumping stations 56,270,149 1,007,992 57,278,141
Buildings 42,412,648 1,825,860 44,238,508
Furniture and equipment 12,627,569 (159,988) 1,545,256 14,012,837
Motor vehicles 7,378,730 (223,058) 459,310 7,614,982
Total depreciated assets 9681912,917 2,899,042 (1,273,486) 27,527,816 998,066,289
Less accumulated depreciation:
Sewage collection system 64,587,611 4,690,151 (335,000) 68,942,762
Contributed sewer lines 57,268,867 2,097,574 (5,440) 59,361,001
Outfall sewers 3,465,586 151,395 3,616,981
Sewage treatment plant 210,866,708 10,065,439 (550,000) 220,382,147
Recycled water infrastructure 8,060,811 805,541 8,866,352
Pumping stations 30,884,104 2,220,533 33,104,637
Buildings 11,617,825 1,258,681 12,876,506
Furniture and equipment 8,188,890 1,231,360 (159,988) 9,260,262
Motor vehicles 4,705,437 371,479 (223,058) 4,853,858
Total accumulated depreciation 399,645,839 22,892,153 (1,273,486) 421,264,506
Total capital assets being
depreciated,net 569,267,078 (19,993,111) 27,527,816 576,801,783
Capital assets,net $616,005,037 $16,702,938 ($255,344) $632,452,631
DRAFT 33
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
NOTE 6—LONG-TERM DEBT
A. Summary of Activity
The changes in the District's long-term obligations during the year ended June 30, 2018 consisted
of the following:
Original Amount
Issue Balance Balance due within
Amount June 30,2017 Retirements June'30,2018 one year
2009 Series A Certificates of Participation
Wastewater Revenue
3 % due 9/1/2029 $1965000 $1965000 $1965000
, , , , , , ,
2009 Series B Certificates of Participation
Wastewater Revenue
.40-3.79%,due 9/1/2029 3414901000 11186500 $2140500 9,46000 $2,4801000
1999 State Water Resources Control Board
Water Reclamation Loan
2.60%,due 3/31/2018 219161872 182,377 182,377
Total Long-Term Debt 311682,377 $21587,377 29,09500 $2,4801000
Less Current Portion (21587,377) (2,480,000)
Long Term Portion $29109500 $26,61500
The changes in the District's long-term obligations during the year ended June 30, 2017 consisted
of the following:
Original Amount
Issue Balance Balance due within
Amount June 30,2016 Retirements June 30,2017 one year
2009 Series A Certificates of Participation
Wastewater Revenue
3.45-3.78%,due 9/1/2029 $1916351000 $1916351000 $1916351000
2009 Series B Certificates of Participation
Wastewater Revenue
.40-3.79%,due 9/1/2029 34,4901000 14,165,000 $2,3001000 11051000 $2,4051000
1999 State Water Resources Control Board
Water Reclamation Loan
2.60%,due 3/31/2018 219161872 3601134 1771757 1821377 1821377
Total Long-Term Debt 34,160,134 $21477,757 311682,377 $21587,377
Less current portion (2,477,756) (2,587,377)
$31,682,378 $29,09500
DRAFT 34
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
NOTE 6—LONG-TERM DEBT (Continued)
B. Debt Service Requirements
The 2009 Revenue COP debt service requirements are as follows:
Fiscal Year Series A
Ending Series A Series B Total 35%Tax Net
June 30, Principal Interest Principal Interest Principal Interest Subsidy Total
2019 $1,190,840 $2,480,000 $329,483 $ 2,480,000 $1,520,323 (416,794.00) $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 1,775,000 931,413 1,125,000 68,375 2,900,000 999,788 (325,995) 3,573,793
2024-2028 9,920,000 2,931,816 1,180,000 9,833 11,100,000 2,941,649 (1,026,135) 13,015,514
2029-2030 4,565,000 202,450 4,565,000 202,450 (70,858) 4,696,592
Total $19,635,000 $8,594,326 $9,460,000 $934,391 $29,095,000 $9,528,717 ($3,008,014) $35,615,703
As part of the Federal budget sequestration, the Internal Revenue Service (IRS) has announced
that, as of March 1, 2018, credit payments claimed by issuers of certain tax credit bonds,
including Build America Bonds,may be subject to a reduction of 6.6%.
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 $19,6315,000 and $34,490,000, respectively. The Series A COP are federally taxable "Build
America Bonds" which have a direct 35% interest rate subsidy from the Federal Government.
Yields on this series range from 3.45% to 3.78%, net of the subsidy. The Series B COP are tax
exempt bonds that were used to refund the 1998 and 2002 bond issues and raise an additional $30
million in new proceeds with yields ranging from .40%to 3.79%.
The two bonds total $54,125,000, and are secured by a pledge of tax and net revenues of the
wastewater system. Principal payments began annually on September 1, 2010 with semi-annual
payments due on September 1 and March 1 of each year. Both bonds will be fully amortized as of
September 1, 2029. The refunded portion of the original bonds will be paid off based on the
original amortization schedule.
D. Water Reclamation Loan Contract
The District entered into a contract with the State of California State Water Resources Control
Board(Board),which advanced the District$2,916,872 for design and construction costs for
projects related to recycled water treatment programs. The District must repay advances from the
Board over a 20-year period beginning March 31, 1999,with an interest rate of 2.60%. As of June
30, 2018 the last payment consisting of$182,377 in principal and$4,742 of interest for a total of
$187,119, was paid off.
DRAFT 35
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
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:
Self Insured
Deductible Per
Type of Coverage Insurer Limits Occurrence
All-Risk Property:
Special Form Property Alliant Property Insurance Program $554,248,174 $250,000
Crime National Union Fire Ins.Co. 1,000,000 2,500
Liability:
Fiduciary Liability Insurance RLI Insurance Company 1,000,000 -
Pollution-General Liability Aspen Specialty Ins.Co. 1,00OW 500
Commercial Environment Excess Aspen Specialty Ins.Co. 100000 5000
Special Excess Liability Coverage-ANML Security National Ins.Co. - 50000
Excess Following Form Liability Policy Allied World Assurance Company(U.S),Inc. 5,000,000 100000
Employment Practice Liability Hiscox Insurance Co.(Bermuda)Ltd. 1,00000 3500
Workers'Compensation:
Excess Workers'Compensation Safety National Casualty Corporation Statutory -
DRAFT 36
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
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, 2018 to be
$882,230.
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, 2018, 2017, and 2016, settlements have not exceeded insurance
coverage. Changes in the District's estimated liability for retained losses are summarized as
follows as of June 30:
2018 2017 2016
Beginning balance $807,079 $1,000,000 $1,000,000
Provisions for claims incurred in the current year
and changes in the liability for retained-
losses incurred in prior years 243,897 (127,214) 888,745
Claims paid and/or adjustments (168,746) (65,707) (888,745)
Ending balance $882,230 $807,079 $1,000,000
NOTE 8—AGREEMENT WITH THE CITY OF CONCORD
In 1974, the District and the City of Concord (the City) entered into a cost-sharing agreement
under which the District became responsible for providing sewage treatment facilities and
services to the City. Under this agreement, the City pays a service charge for its share of
operating, maintenance and administrative costs and makes a contribution for its share of
facilities and makes a contribution for its share of facilities capital costs expended. Service
charges and contributions to capital costs from the City totaled $14,973,623 and $6,364,725
respectively, for the year ended June 30, 2018, for a total of$21,338,348. 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.
DRAFT 37
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
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, 2017. 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 30,2018,are summarized as follows:
NEseellaneous
On or after
Membership date Prior to January 1,2013 January 1,2013
Benefit formula 2%at 55 2%at 62
Benefit vesting schedule 10 years service 5 years service
Benefit payments monthly for life monthly for life
Retirement age 50 52
Monthly benefits,as a%of eligible compensation 0%to 100% No limit
Required employee contribution rates 11.85% 11.70%
Required employer contribution rates 53.39% 48.01%
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, 2018, the contributions to
the Plan were $17,113,394.
DRAFT 38
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
NOTE 9—PENSION PLANS (Continued)
Pension Liabilities,Pension Expenses and Deferred Outflows/Inflows of Resources Related to
Pensions-As of June 30, 2018,the District reported net pension liabilities for its proportionate
share of the net pension liability of the Plan as follows:
Proportionate Share of Net Pension Liability
2018 2017
Miscellaneous $6318061000 $8718471116
Total Net Pension Liability $6318061000 $8718471116
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, 2017, 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, 2016 rolled forward to December 31, 2017 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, 2016, 2017, and
2018 were as follows:
Proportionate share of the Plan Fiduciary Net
Reporting Date for Proportion of the Proportionate share Net Pension Liability as a Pension as a
Employer under GASB 68 Net Pension of Net Pension Covered percentage of its covered percentage of the Total
as of December 31 Liability Liability Payroll payroll Pension Liability
2016 6.088% $91174608 $29,0611743 315.70% 74.14%
2017 6.273% 8718471116 31,584,169 278.14% 76.44%
2018 7.863% 6318061000 33,3061938 191.57% 83.58%
For the year ended June 30, 2018, the District recognized negative pension expense of
$414411205. At June 30, 2018, the District reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $8,5331670
Differences between expected and actual experience $612901561
Changes of assumptions or other inputs 0241151 782
Change in proportion and differences between employer
contributions and proportionate share of contributions 1110451200 513341713
Net difference between projected and actual earnings
on pension plan investments 1614501578
Total $21,5031021 $28,0761634
DRAFT 39
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
NOTE 9—PENSION PLANS (Continued)
At June 30, 2017, the District reported deferred outflows of resources and deferred inflows of
resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date $904,848
Differences between expected and actual experience $7,205,850
Changes of assumptions or other inputs 2,541,979 1,661
Change in proportion and differences between employer
contributions and proportionate share of contributions 2,0231895 8,8441394
Net difference between projected and actual earnings
on pension plan investments 15,5071481
Total $29,078,203 $16,051,905
The $8,533,670 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, 2019.
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 Annual
June 30 Amortization
2019 ($3,599,296)
2020 (208,682)
2021 (51236,162)
2022 (6,0631143)
DRAFT 40
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
NOTE 9—PENSION PLANS (Continued)
Actuarial Assumptions — The total pension liabilities in the December 31, 2016 actuarial
valuations were determined using the following actuarial assumptions:
Miscellaneous
Valuation Date December 31,2016
Measurement Date December 31,2017
Actuarial Cost Method Entry Age Actuarial Cost Method
Amortization Method Level percent of payroll
Actuarial Assumptions:
Discount Rate 7.00%
Inflation Rate 2.75%
Payroll Growth 2.75%(1)
Projected Salary Increase 4.00%- 13.25%(2)
Cost of Living Adjustments 2.75%
Investment Rate of Return 7.00%(3)
Mortality 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 7.0% 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, 2017.
DRAFT 41
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
NOTE 9—PENSION PLANS (Continued)
The long-term expected rate of return on pension plan investments was determined in 2018 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:
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 $1161617,009
Current Discount Rate 7.00%
Net Pension Liability $6318061000
1%Increase 8.00%
Net Pension Liability $20,709,123
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
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 $2,034,759 and $1,964,899 to
the Plan during the years ended June 30, 2018 and 2017,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. General Information about the District's Other Post Employment Benefit(OPEB)Plan
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 through PARS, which acts as a common investment agent for participating public
employees within the State of California. The District is the plan administrator. 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.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
NOTE 10—POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
Benefit Terms — Post-employment healthcare and similar benefit allowances are provided to
eligible employees who retire from the District or to their surviving spouses.
Employees Covered by Benefit Tums—Membership in the plan consisted of the following at the
measurement date of June 30,2018 June 30,2018:
Active employees 274
Inactive employees or beneficiaries currently
receiving benefit payments 278
Inactive employees entitled to but not yet
receiving benefit payments 0
Total 552
B. Net OPER Liability
Actuarial Methods and Assumptions— The District's net OPEB liability was measured as of June
30, 2018 and the total OPEB liability used to calculate the net OPEB liability was determined by an
actuarial valuation dated July 1, 2016 that was rolled forward using standard update procedures to
determine the $105,947,197 total OPEB liability as of June 30, 2018, based on the following
actuarial methods and assumptions:
Actuarial Assumptions
Valuation Date July 01,2016
Measurement Date June 30,2018
Actuarial Cost Method Entry Age Normal,Level Dollar
Actuarial Assumptions:
Contribution and Funding District contributes full ADC less benefit payments to PARS trust
Benefits payments paid outside the trust
PARS portfolio:Moderate
Long-Term Expected Rate of
Return on Investments 6.25%at June 30,2018,net of investment expenses
Discount Rate 6.25%at June 305 2018
6.25%at June 30,2017
Crossover analysis showed benefit payments always fully funded by
plan assets
General Inflation 3.00%per annum
Mortality,Disability,Termination,
Retirement CCCERA 2012-2014 Experience Study
Mortality Improvement Mortality improvement projected generationally with Scale MP-15
Medical Trend Pre-Medicare-7.0%for 2017/18,decreasing to 5.0%for 2021/22
and later
Medicare-7.2%for 2017/18,,decreasing to 5.0%for 2021/22 and
later
Dental Trend 4.0%
Healthcare Participation for future
Retirees Currently Covered:100%
Currently Waived Coverage:95%
Self-Pay Board Members:50%
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
NOTE 10—POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
The underlying mortality assumptions were based on the mortality improvement projected
generationally with Scale MP-15 and all other actuarial assumptions used in the July 1, 2016
valuation were based on the results of a July 1, 2016 actuarial experience study for the period of
July 1, 2017 to June 30, 2018
The long-term expected rate of return on OPEB plan investments was determined using a building-
block method in which expected future real rates of return (expected returns, net of OPEB plan
investment expense and inflation) are developed for each major asset class. These ranges are
combined to produce the long-term expected rate of return by weighting the expected future real
rates of return by the target asset allocation percentage and by adding expected inflation. The target
allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Long-Term
Target Expected Real
Asset Class Component Allocation Rate of Return
Global Equity 48.0% 4.82%
Fixed Income 45.0% 1.47%
REIT's 2.0% 3.76%
Cash 5.0% 0.06%
Total 100.0%
Discount Rate — The discount rate used to measure the total OPEB liability was 6.25%. 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 OPEB
payments for current active and inactive employees and beneficiaries. 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.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
NOTE 10—POST EMPLOYMENT HEALTH CARE BENEFITS(Continued)
C. Changes in Net OPER Liability
The changes in the net OPEB liability follows:
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(As s e t)
(a) (b) (a)-(b)
Balance at 6/30/17 $102,75208 $52,328,367 $50424,241
Changes Recognized for the Measurement Period:
Service Cost 2,370,276 2,370,276
Interest on the total OPEB liability 6,396,063 6,396,063
Changes in benefit terms
Differences between expected and actual experience
Changes of assumptions
Contributions from the employer 9,649,750 (9,649,750)
Contributions from the employee
Net investment income 3,354,822 (3,354,822)
Administrative expenses (5,571,750) (5,571,750)
Benefit payments (164,446) 164446
Net changes 3,194,589 7>8n376 (4,073,787)
Balance at 6/30/18 $105,947,197 $59,596,743 $46,350454
D. Sensitivity of the Net OPER Liability to Changes in the Discount Rate and 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 a discount rate that is 1-percentage-point lower
(5.25%)or 1-percentage-point higher(7.25%)than the current discount rate:
Net OPEB Liability/(Asset)
Discount Rate -1% Discount Rate Discount Rate +1%
(5.25 %) (6.25%) (7.25%)
$59,893,914 $4613501454 $35,19904
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:
Net OPEB Liability/(Asset)
Current Healthcare Cost
1% Decrease Trend Rates 1% Increase
$331053,134 $461350,454 $621640,542
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
NOTE 10—POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
E. OPER Expense and Deferred Outflows/Inflows of Resources Related to OPER
For the year ended June 30, 2018, the District recognized OPEB expense of$5,545,563. At June
301 2018,the District reported deferred outflows and inflows of resources related to OPEB from the
following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Employer contributions made subsequent to the measurement date
Differences between actual and expected experience 0 0
Changes of assumptions 0 0
Net differences between projected and actual earnings on
plan investments $30,400 0
Total $30,400 $0
$30,400 reported as deferred outflows of resources related to contributions subsequent to the
measurement date will be recognized as a reduction of the OPEB liability in the year ended June 30,
2019. Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to OPEB will be recognized as part of OPEB expense as follows:
Year Annual
Ended June 30 Amortization
2019 $71600
2020 7,600
2021 7,600
2022 7,600
$30,400
OPER Liabilities, OPER Expenses and Deferred Outflows/Inflows of Resources Related to
OPER - For purposes of measuring the net OPEB liability, deferred outflows of resources and
deferred inflows of resources related to OPEB, and OPEB expense, information about the
fiduciary net position of the District's OPEB Plan and additions to/deductions from the OPEB
Plan's fiduciary net position have been determined on the same basis as they are reported by the
District's defined benefit post employment healthcare plan (DPHP). For this purpose, benefit
payments are recognized when currently due and payable in accordance with the benefit terms.
Investments are reported at fair value.
F. Annual Money-Weighted Rate of Return on Investments
For the years ended June 30, 2018 and 2017, the annual money-weighted rate of return on
investments,net of investment expense,were 5.96% and 6.25%. The money-weighted rate of return
expresses investment performance net of investment expense, adjusted for the changing amounts
actually invested.
DRAFT 47
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
NOTE 11—NET POSITION
A. 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.
B. Net Position Restatements
Management adopted the provisions of the following Governmental Accounting Standards Board
(GASB) Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits
Other than Pensions (OPEB), which became effective during the year ended June 30, 2018. In
June 2015, GASB issued Statement No. 75 and the intention of this Statement is to improve the
usefulness of information for decisions made by the various users of the financial reports of
governments whose employees — both active employees and inactive employees — are provided
with postemployment benefits other than pensions by requiring recognition of the entire net
OPEB liability and a more comprehensive measure of OPEB expense.
The implementation of the Statement required the District to make prior period adjustments. As a
result,the beginning net position was restated and reduced by $41,552,816. See Note 10.
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, 2018:
Fis cal Year Office
Ending Equipment Facilities Total
2019 $3421106 $1301873 $4721979
Total $342,106 $1301873 $472,979
Total rental expense for the fiscal years ended June 30, 2018 and 2017 was $313,492 and
$168,336 respectively.
DRAFT 48
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2018 and 2017
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$17,997,738 and $16,006,727 as of June 30, 2018 and 2017,respectively.
NOTE 14—SUBSEQUENT EVENTS
On September 13, 2018 the District issued two Wastewater Revenue Refunding Bonds (Bonds).
The 2018 Wastewater Revenue Refunding Bonds, Series A and B (federally taxable)were issued
for $15,1315,000 and $4,315,000, respectively. The Bonds were issued to defease and refund all
of the District's outstanding obligations with respect to the $19,635,000 original principal amount
of 2009 Wastewater Revenue Certificates of Participation, Series A and all of the District's
outstanding obligations with respect to the $34,490,000 original principal amount of 2009
Wastewater Revenue Certificates of Participation, Series B, and pay costs issuing the Bonds.
The two bonds total $19,450,000 and are secured by a pledge of tax and net revenues of the
wastewater system. Principal payments begin annually on September 1, 2020 and 2019 for the
Series A and B Bonds, respectively, with semi-annual interest payments due on September 1 and
March 1 of each year. Yields range from 1.396% to 2.34% and 2.62% to 3.12% for the Series A
and Series B Bonds, respectively.
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REQUIRED SUPPLEMENTARY INFORMATION
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CENTRAL CONTRA COSTA SANITARY DISTRICT
C o s t-Sharing M ultiple E mploye r D e fine d B e ne fit Re tire me nt Plan
As of fis cal ye ar a nde d June 30,2018
SCHEDULE OF CHANGES IN THE NET PENSION LIABILITY AND RELATED RATIOS
Last 10 Ye ars*
2018 2017 2016 2015
Net Change in Total Pension Liability
Service Cost $16,824,515 $12,802,725 $11,744,271 $14,396,402
Interest on the Total Pension Liability 48,499,837 37,390,012 35,450,291 42,024,521
Expensed portion of current-period changes in proportion and
difference between employer's contributions and proportionate
share of contributions 2,760,509 327,813 (3,509,681) 533,503
Expensed portion of current-period benefit changes
Expensed portion of current-period difference between expected
and actual experience in the Total Pension Liability (515,890) (275,839) (836,604) (2,988,813)
Expensed portion of current-period changes of assumptions or
other inputs 972,205 (1,231)
Member contributions (7,646,322) (5,608,003) (5,196,358) (5,860,025)
Projected earnings on plan investments (40,879,748) (30,774,476) (30,472,528) (34,980,271)
Expensed portion of current-period differences between actual and
projected earnings on plan investments (7,365,020) (83,909) 5,198,286 (200,059)
Administrative expense 724,963 536,021 494,025 522,670
Other 96,447 (563,858) 40,685
Recognition of beginning of year deferred outflows of resources as
pension expense 8,034,476 6,402,259
Recognition of beginning of year deferred inflows ofresources as
pension expense (4,917,635) (3,558,862) (2,593,424)
Net amortization of defen-ed amounts from changes in proportion
and differences between employer's contributions and
proportionate share of contributions (2,648,365) (2,976,178) 533,503
Net change in total pension liability $12,967,767 $13,617,705 $11,824,671 $13,446,697
Reconciliation of Net Pension Liability
Beginning Net Pension Liability $87,847,116 $91,746,888 $89,535,510 $110,183,830
Pension expense 12,967,767 13,617,705 11,824,671 13,446,697
Employer contributions (17,880,152) (18,043,391) (22,752,611) (24,451,234)
New net deferred inflows/outflows (31,306,965) (1,320,379) 21,270,461 (11,564,393)
Change in allocation of prior deferred inflows/outflows 2,764,089 543,221 2,163,011
New net deferred flows due to change in proportion 9,882,621 1,170,291 (12,354,075) 1,920,610
Recognition of prior deferred inflows/outflows (3,116,841) (2,843,397) 2,593,424
Recognition of prior deferred flows due to change in proportion 2,648,365 2,976,178 (533,503)
Net pension liability-ending $63,806,000 $87,847,116 $91,746,888 $89,535,510
Plan fiduciary net position as a percentage of the total pension
liability 83.58% 76.44% 74.14% 73.86%
Covered payroll $33,306,938 $31,584,169 $29,601,743 $27,930,233
Net pension liability as percentage of covered payroll 191.57% 278.14% 315.70% 332.77%
Notes to Schedule:
Changes in assumMfions-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 four years are shown.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
Cost-Sharing Multiple Employer Defined Bene fit Retirement Plan
As of fiscal year ending June 30,2018
SCHEDULE OF CONTRIBUTIONS
Last 10 Years*
2018 2017 2016 2015
Actuarially determined contribution $ 17,880,152 $ 18,043,391 $ 22,752,611 $ 24,451,234
Contributions in relation to the actuarially determined
contributions 17,880,152 18,043,391 22,752,611 24,451,234
Contribution deficiency(excess) - - - -
Covered payroll $ 33,306,938 $ 31,584,169 $ 29,601,743 $ 27,930,233
Contributions as a percentage of covered-employee payroll 53.68% 57.13% 76.86% 87.54%
Notes to Schedule
Measurement Date: 12/31/2017
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age
Amortization method Level percentage of payroll,closed
Remaining amortization period 6 years**
Asset valuation method 5-year semi-annually
Inflation 2.75%
Salary increases 4%-13.25%
Investment rate of return 7.0%,net of pension plan investment expense,
including inflation
Retirement age 50 years Classic,52 years PEPRA
Mortality RP-2014 Healthy Annuitant Mortality Table
with setbacks and forwards
*Fiscal year 2015 was the 1st year of implementation,therefore only four years are shown.
**Remaining balance of December 31,2007 UAAL is amortized over a fixed(decreasing or closed)period
with 6 years remaining as of December 31,2016. 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.
DRAFT 53
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CENTRAL CONTRA COSTA SANITARY DISTRICT
POST-RETIREMENT HEALTH CARE DEFINED BENEFIT PLAN
SCHEDULE OF CHANGES IN THE NET OPEB LIABILITY AND RELATED RATIOS
Single Employer
Last 10 fiscal years*
Measurement Date 6/30/18 6/30/17
Total OPEB Liability
Service Cost $2,370,276 $2,295,667
Interest 61396,063 6,203,230
Changes in benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments (5,571,750) (5,404,627)
Net change in total OPEB liability 31194,589 3,094,270
Total OPEB liability-beginning 102,75208 99,658,338
Total OPEB liability-ending(a) $105,947,197 $102,75208
Plan fiduciary net position
Contributions-employer $9,649,750 $10,433,327
Contributions-employee
Net investment income 3,354,822 4,735,576
Administrative expense (164,446) (5,404,627)
Benefit payments (5,571,750) (139,063)
Net change in plan fiduciary net position 71268,376 9,625,213
Plan fiduciary net position-beginning 52,328,367 42,703,154
Plan fiduciary net position-ending(b) $59,596,743 $52,328,367
Net OPEB liability-ending(a)-(b) $46,350,454 $50,424,241
Plan fiduciary net position as a percentage of the total OPEB liability 56.25% 50.93%
Covered-employee payroll $36,638,935 $32,501,073
Net OPEB liability as a percentage of covered-employee payroll 126.51% 155.15%
Notes to schedule:
*Fiscal year 2017 was the first year of implementation,therefore only two years are shown.
CENTRAL CONTRA COSTA SANITARY DISTRICT
POST-RETIREMENT HEALTH CARE DEFINED BENEFIT PLAN
SCHEDULE OF INVESTMENT RETURN RATE
2018 2017
Annual money weighted rate of return,
net of investment expense 5.96% 6.25%
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CENTRAL CONTRA COSTA SANITARY DISTRICT
POST-RETIREMENT HEALTH CARE DEFINED BENEFIT PLAN
SCHEDULE OF CONTRIBUTIONS
Single Employer
Last 10 fiscal years*
Fiscal Year Ended June 30, 2018 2017
Actuarially determined contribution $7,524,000 $7,866,000
Contributions in relation to the
actuarially determined contribution 91649,750 10,4331327
Contribution deficiency(excess) ($2,1251750) ($2,567,327)
Covered-employee payroll $361638,935 $32,501,073
Contributions as a percentage of
covered-employee payroll 26.34% 32.10%
Notes to Schedule
Methods and assumptions used to determine contribution rates:
Valuation Date 7/l/2016
Actuarial Cost Method: Entry Age Normal, Level Dollar
Amortization Method: Level dollar over closed 18 year period
Asset Valuation Method: Investment gains and losses spread over 5-year rolling period
not less than 80%nor greater than 120% of market value
Actuarial Assumptions:
Discount Rate 6.25%
General Inflation 3.00%
Medical Trend Pre-Medicare- 7.0%for 2017/18, decreasing to 5.0% for
2021/22 and later
Medicare- 7.2% for 2017/18, decreasing to 5.0%for 2021/22
and later
Dental Trend 4.00%
Mortality Rate CCCERA 2012-2014 Experience Study
Mortality Improvement Mortality improvement projected generationally with
Scale MP-15
* Fiscal year 2017 was the first year of implementation,therefore only two years are shown.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
COMBINING SCHEDULE OF NET POSITION
ENTERPRISE SUB-FUNDS
JUNE 30,2018
Running Sewer Self Debt
Expense Construction Insurance Service Elimination Total
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $29,683,539 $20,285,073 $7,169,375 $57,137,987
Short term investments 14,000,000 20,000,000 34,000,000
Accounts receivable 16,398,841 6,562,959 22,961,800
Interest receivable $99,384 99,384
Parts and supplies 2,245,055 2,245,055
Prepaid expenses 2,599,758 2,599,758
Total current assets 64,927,193 46,848,032 7,169,375 99,384 - 119,043,984
NON-CURRENT ASSETS:
Restricted cash and equivalents 5,497,153 5,497,153
Restricted investments 4,856,450 4,856,450
Assessment Districts receivable 1,109,235 1,109,235
CAPITAL ASSETS
Nondepreciable 58,090,712 58,090,712
Depreciable,net of accumulated depreciation 594,311,630 594,311,630
Total capital assets,net 652,402,342 - - - - 652,402,342
Total non-current assets 657,899,495 1,109,235 - 4,856,450 - 663,865,180
TOTAL ASSETS 722,826,688 47,957,267 7,169,375 4,955,834 - 782,909,164
DEFERRED OUTFLOWS OF RESOURCES
Pension related 21,503,021 - - - - 21,503,021
OPEB related 30,400 - - - - 30,400
Total deferred outflows 21,533,421 21,533,421
LIABILITIES
CURRENT LIABILITIES:
Accounts payable and accrued expenses 2,967,496 6,690,144 7,098 9,664,738
Interest payable 534,330 534,330
Refunding Water Revenue Bonds-current portion 2,480,000 2,480,000
Accrued compensated absences-current portion 464,500 464,500
Liability for uninsured claims 882,230 882,230
Refundable deposits 155,011 260,821 415,832
Total current liabilities 3,587,007 6,950,965 889,328 3,014,330 - 14,441,630
NON-CURRENT LIABILITIES:
Refunding Water Revenue Bonds,noncurrent portion 26,615,000 26,615,000
Accrued compensated absences,noncurrent portion 4,181,377 4,181,377
Net pension liability 63,806,000 63,806,000
Net OPEB liability 46,350,454 46,350,454
Total noncurrent liabilities 114,337,831 - - 26,615,000 - 140,952,831
TOTAL LIABILITIES 117,924,838 6,950,965 889,328 29,629,330 - 155,394,461
DEFERRED INFLOWS OF RESOURCES
Pension related 28,076,634 - - - - 28,076,634
NET POSITION
Net investment in capital assets 652,402,342 (29,095,000) 623,307,342
Restricted for debt service 4,421,504 4,421,504
Unrestricted (54,043,705) 41,006,302 6,280,047 (6,757,356)
TOTAL NET POSITION $598,358,637 $41,006,302 $6,280,047 ($24,673,496) - $620,971,490
DRAFT 58
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CENTRAL CONTRA COSTA SANITARY DISTRICT
COMBINING SCHEDULE OF REVENUES,EXPENSES,AND CHANGES IN NET POSITION
ENTERPRISE SUB-FUNDS
FOR THE YEAR ENDING JUNE 30,2018
Running Sewer Self Debt
Expense Construction Insurance Service Elimination Total
OPERATING REVENUES
Sewer service charges(SSC) $75,824,221 $75,824,221
Service charges-City of Concord 14,973,623 14,973,623
Other services charges 1,078,594 1,078,594
Miscellaneous charges 619,997 619,997
Total operating revenues 92,496,435 - - - - 92,496,435
OPERATING EXPENSES
Sewage collection and pumping stations 15,954,881 15,954,881
Sewage treatment 26,050,876 26,050,876
Engineering 16,472,501 16,472,501
Recycled water 1,023,757 1,023,757
Administrative and general 27,845,484 $788,689 ($1,121,172) 27,513,001
Pension expense (4,441,205) (4,441,205)
OPEB expense 5,545,563 5,545,563
Depreciation 21,561,704 21,561,704
Total operating expenses 110,013,561 - 788,689 - (1,121,172) 109,681,078
OPERATING INCOME(LOSS) (17,517,126) - (788,689) - 1,121,172 (17,184,643)
NONOPERATING REVENUES(EXPENSES)
Taxes $13,918,715 $3,732,026 17,650,741
Permit and inspection fees 2,215,920 376,217 2,592,137
Interest earnings 268,195 777,226 91,898 86,030 1,223,349
Interest expense (1,230,680) (1,230,680)
Other income(expense),net 1,054,830 21,008 1,121,172 (1,121,172) 1,075,838
Total nonoperating revenues 3,538,945 15,093,166 1,213,070 2,587,376 (1,121,172) 21,311,385
NET INCOME(LOSS)BEFORE CAPITAL (13,978,181) 15,093,166 424,381 2,587,376 - 4,126,742
CONTRIBUTIONS AND TRANSFERS
CAPITAL CONTRIBUTIONS AND TRANSFERS
City of Concord contributions to capital costs 6,364,725 6,364,725
Customer contributions to capital cost(SSC) 14,060,789 14,060,789
Contributed sewer lines 2,003,614 2,003,614
Capital contributions-connection fees 9,331,420 9,331,420
Transfers In(Out) 39,280,146 (39,249,198) (3,016) (27,932)
Total capital contributions and transfers 41,283,760 (9,492,264) (3,016) (27,932) - 31,760,548
CHANGE IN NET POSITION 27,305,579 5,600,902 421,365 2,559,444 35,887,290
NET POSITION,BEGINNING OF YEAR 612,605,874 35,405,400 5,858,682 (27,232,940) - 626,637,016
Prior period adjustment (41,552,816) (41,552,816)
NET POSITION,END OF YEAR $598,358,637 $41,006,302 $6,280,047 ($24,673,496) - $620,971,490
DRAFT 59
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y
CENTRAL CONTRA COSTA SANITARY DISTRICT
Schedule of Running Expenses
Comparison of Budget and Actual Expenses by Department
For the Year Ended June 30,2018
Sewage Variance
Sewage Treatment Pumping Recycled Favorable
Administration Engineering Collection Plant Station Water Total Budget (Unfavorable)
Salaries and Wages $6,401,312 $9,828,945 $6,131,155 $10,123,952 $970,127 $391,983 $33,847,474 $34,797,628 $950,154
Employee Benefits 17,454,730 7,149,700 4,894,560 7,815,438 737,446 300,452 38,352,326 36,752,619 (1,599,707)
Less Capitalized
Overhead and Benefits (36,334) (3,114,993) (27,133) (158,856) - - (3,337,316) (3,972,203) (634,887)
Total Salaries and Benefits 23,819,708 13,863,652 10,998,582 17,780,534 1,707,573 692,435 68,862,484 67,578,044 (1,284,440)
Directors'Fees and Expense 138,462 - - - - - 138,462 168,631 30,169
Chemicals - - - 840,117 115,950 69,061 1,025,128 1,482,000 456,872
Utilities 119,789 180,978 151,034 3,195,408 532,526 169,408 4,349,143 4,639,790 290,647
Repairs and Maintenance 829,433 104,634 1,047,768 2,247,081 195,120 4,911 4,428,947 5,299,754 870,807
Hauling and Disposal - 514,212 128,592 379,069 10,191 - 1,032,064 1,023,975 (8,089)
Professional and Legal Services 507,411 165,023 922 2,743 - (12,395) 663,704 807,600 143,896
Outside Services 1,264,858 767,580 63,001 126,754 47,080 55,303 2,324,576 3,452,717 1,128,141
Self Insurance 585,000 - - - - - 585,000 585,000 -
Materials and Supplies 114,260 367,396 738,815 840,126 42,057 677 2,103,331 2,059,325 (44,006)
o Other 466,563 509,026 122,047 639,044 53,623 44,357 1,834,660 2,616,751 782,091
Total $27,845,484 $16,472,501 $13,250,761 $26,050,876 $2,704,120 $1,023,757 $87,347,499 $89,713,587 $2,366,088
December 18, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 266 of 288
Page 81 of 96
CENTRAL CONTRA COSTA SANITARY DISTRICT
RUNNING EXPENSE
SCHEDULE OF SUPPLEMENTAL NET POSITION ANALYSIS
FOR THE FISCAL YEAR ENDED JUNE 3012018
Prior Year Balance $12,9211800
2017-2018 Revenue $9610351380
2017-2018 Expense (110,013,561)
Add Back Depreciation Expense 2115611704 715831523
Net Position Attributed to General Operations 2015051323
Net Position Attributed to All Other 577,853,314
Running Expense Net Position $59813581637
DRAFT 61
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Central Contra Costa Sanitary District
Statistical Section
Table of Contents
Financial Trends
These schedules contain trend information to help the reader understand how the
District's financial performance has changed over time.
Changes 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
D maibi�relZrt2Odr8tlf Ldearft ISP ANCE Committee Meeting Agenda Packet- Page 270 of 288
Central Contra Costa Sanitary District
Changes in Net Position and Statement of Net Position
Last Ten Fiscal Years
Changes in Net Position 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Operating Revenues:
Sewer Service Charges(SSC) $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 $75,824,221
City of Concord 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 14,973,623
Other Service Charges 872,978 824,022 913,017 915,485 1,076,401 1,035,134 1,006,197 963,014 1,029,500 1,078,594
Miscellaneous Charges 667,855 650,876 662,721 929,917 751,880 544,589 593,780 623,659 606,453 619,997
Total Operating Revenue 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 92,496,435
Operating Expenses:
Salaries&Benefits 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 68,862,484
Chemicals,Utilities&Supplies 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 7,477,602
Professional&Outside Services 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 2,988,280
Hauling,Disposal,Repairs&Maintenance 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 5,461,011
Self-Insurance(net of transfers) 90,876 (688,859) 119,051 (65,688) 159,961 214,290 496,381 72,486 (300,108) (332,483)
Pension/OPEB Expense - - - - - - (3,012,757) (9,778,389) (4,080,558) 1,104,358
Depreciation 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 21,561,704
All Other 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 2,558,122
Total Operating Expenses 77,393,195 76,838,174 78,815,740 85,475,246 88,737,742 99,508,394 104,350,790 97,792,517 101,464,785 109,681,078
Operating Loss (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) (17,184,643)
Non-Operating Revenues(Expenses):
Property Taxes* 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 17,650,741
Connection&Other Fees 1,093,756 776,348 895,825 903,810 1,169,809 1,575,251 1,843,942 2,546,723 2,600,888 2,592,137
Interest Income 1,033,095 570,024 673,990 294,938 405,474 359,288 318,475 562,308 761,838 1,223,349
Interest Expense (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) (1,230,680)
All Other* 639,523 12,295 (523,209) 931,660 951,100 932,464 1,828,530 1,195,095 966,244 1,075,838
Total Non-Operating 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 21,311,385
Income Before Contributions and Transfers (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 4,126,742
Customer Contributions** 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 20,425,514
Contributed Sewer Lines 1,231,022 1,840,259 533,616 792,011 939,628 1,462,316 794,218 1,774,168 2,899,042 2,003,614
Capital Contributions-Connection Fees 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 9,331,420
CHANGE IN NET POSITION 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 35,887,290
Total Net Position-Beginning 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
Prior Period Adjustment-GASB 68 and 71 - - - - - - (91,692,522) - - -
Prior Period Adjustment-GASB 75 - - - - - - - - - (41,552,816)
Total Net Position-Ending $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 $620,971,490
Statement of Net Position 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Investments in Capital Assets,Net of Related Debt $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 $623,307,342
Restricted for Debt Service 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 4,421,504
Unrestricted 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 (6,757,356)
Total Net Position $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 $620,971,490
*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
December 18, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 271 of 288
Central Contra Costa Sanitary District
Revenue By Type
Last Ten Fiscal Years
$160,000,000
$140,000,000
$120,000,000
N $100,000,000
L
$80,000,000
O
$60,000,000
$40,000,000
$20,000,000
$-
2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Fiscal Year
13Operating Revenue 13Non-Operating Revenue
Operating Revenue
Fiscal Sewer Service City of Other Service Miscellaneous Total
Year Charges* Concord Charges Charges Operating
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 6627721 5978967560
2011-2012 497123,848 1076477389 915,485 9297917 6176167639
2012-2013 567770,984 1074837421 1,076,401 7517880 6970827686
2013-2014 6077967421 1176257864 1,0357134 5447589 7470027008
2014-2015 7070237512 1278927945 170067197 5937780 8475167434
2015-2016 727233,903 1379137960 963,014 6237659 8777347536
2016-2017 737138,235 1378517253 1,029,500 6067453 8876257441
2017-2018 75,8247221 1479737623 1,078,594 6197997 9274967435
Non-Operating Revenue
Fiscal Property Customer Connections All Total Non-Operating
Year Taxes*1 Contributions*2 &Other Fees*3 Interest Other &Contributions
2008-2009 $1275397375 $15,169,443 $671197249 $1,0337095 $6397523 $3575007685
2009-2010 1272607123 8,6337299 778547983 5707024 9987211 3073167640
2010-2011 1272137624 575517708 474117629 6737990 - 2278507951
2011-2012 1270477169 976807674 676287643 2947938 9317660 2975837084
2012-2013 1370107477 8,940,775 772617338 405,474 9517100 3075697164
2013-2014 1370937841 1179487383 977997768 3597288 9327464 3671337744
2014-2015 1470837331 7,5637841 875177240 3187475 178287530 3273117417
2015-2016 1478357167 137765,920 1170907481 562,308 171957095 4174487971
2016-2017 1673187874 1975277147 976457228 761,838 9667244 4772197331
2017-2018 1776507741 2274297128 1179237557 172237349 170757838 5473027613
* 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
Decembers 8Fc'261�rk&dndll FpItRI L tWIN&6 IM, gwimatA �a Packet- Page 272 of 288
Central Contra Costa Sanitary District
Operating Expenses by Type
Last Ten Fiscal Years
$110,000,000
$100,000,000
$90,000,000
$80,000,000
$70,000,000
N $60,000,000
M
$50,000,000
o $40,000,000
$30,000,000
$20,000,000
$10,000,000
$-
$(10,000,000)
$(20,000,000)
2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
Fiscal Year
❑Salaries and Benefits ❑Chemicals,Utilities&Supplies ❑Professional&Outside Services ❑Hauling,Disposal,Repairs&Maintenance
❑Self-Insurance ❑Depreciation ❑Pension/OPEB Expense* ❑AII Other
OPERATING EXPENSES
Fiscal Salaries Chemicals,Utilities Professional& Hauling,Disposal, Self-Insurance Depreciation Pension/OPEB All Total Operating Non-Operating
Year and Benefits &Supplies Outside Services Repairs&Maintenance Expense* Other Expenses Expenses**
2008-2009 $39,440,034 $9,368,755 $2,832,001 $3,938,129 $958,906 $19,417,941 - $1,437,429 $77,393,195 $1,421,686
2009-2010 39,986,763 7,973,992 25129,552 3,808,635 746,612 20,969,429 - 152235191 76,8385174 2,539,383
2010-2011 4157055131 7,609,127 254255615 359165789 1,003,115 2055805061 - 155755902 78,8155740 2,585,112
2011-2012 4555625430 8,121,809 450995876 450775741 810,849 2151905059 - 156125482 85,4755246 1,919,375
2012-2013 4958115218 754015103 258365638 452395421 2,380,466 2155965266 - 4725630 88,7375742 1,802,084
2013-2014 585954,453 850635310 3,995,861 45041,356 8585738 21,892,545 - 157025131 995508,394 159965689
2014-2015 665104,630 754665490 3,322,881 45758,260 151465381 225740,942 ($350125757) 1,823,963 10453505790 155235127
2015-2016 635988,158 753045619 45196,302 55780,533 155725486 22,885,030 (957785389) 1,843,778 975792,517 154275641
2016-2017 625342,392 851155004 3,891,224 55662,086 6195892 22,892,153 (450805558) 2,022,592 10154645785 153135398
2017-2018 68,8625484 75477,602 25988,280 5,4615011 252,517 215561,704 1,1045358 15973,122 109,6815078 1,230,680
Informational-not graphed
* 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
December 18, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 273 of 288
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 Facility
Fiscal Year Operations Capital Total Capacity Fee*2
2008-2009 $260 $51 $311 $4,923
2009-2010 292 19 311 5,298
2010-2011 300 11 311 51451
2011-2012 302 39 341 51465
2012-2013 344 27 371 5,797
2013-2014 365 40 405 51930
2014-2015 416 23 439 5,995
2015-2016 422 49 471 61005
2016-2017 432 71 503 5,948
2017-2018 $447 $83 $530 $6,300
Multi-Family Annual Sewer Service Charge (SSC)*1 Pump
Fiscal Year Operations Capital Total Zone Fee*3
2008-2009 $260 $51 $311 $1,586
2009-2010 292 19 311 11651
2010-2011 300 11 311 1,641
2011-2012 302 39 341 1,606
2012-2013 344 27 371 11625
2013-2014 365 40 405 1,587
2014-2015 416 23 439 11585
2015-2016 415 48 463 11650
2016-2017 418 69 487 11608
2017-2018 $432 $81 $513 $1,639
*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
December 18, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 274 of 288
Central Contra Costa Sanitary District
Assessed and Estimated Actual Valuation of Taxable Property
Last Ten Fiscal Years
Fiscal Year Local Secured Unsecured Total % Change
2008-2009 $68,88877237534 $1773876067038 $70762773297572 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 67753872467870 1760475187295 69714277657165 0.1%
2013-2014 74,400,356,922 1,742,364,655 76,142,721,577 10.1%
2014-2015 80743171327956 1773973427301 82717074757257 7.9%
2015-2016 86770179307276 1764577127628 88734776427904 7.5%
2016-2017 92,006,863,080 1,704,263,642 93,711,126,722 6.1%
2017-2018 97,298,029,346 1,722,229,970 99,020,259,316 5.7%
Property Tax and Sewer Service Charge Fees Levied and Collected
Last Ten Fiscal Years
Property Tax* Collection Sewer Service Charges* Collection
Fiscal Year Levied & Collected Percentage % Change Levied & Collected Percentage % Change
2008-2009 $1274927502 100% 3.3% $5077437258 100% 3.8%
2009-2010 1172537233 ** 100% -9.9% 5078967210 100% 0.3%
2010-2011 1271717725 100% 8.2% 5071967629 100% -1.4%
2011-2012 1270327525 100% -1.1% 5475867208 100% 8.7%
2012-2013 1371857988 *** 100% 9.6% 6070687807 100% 10.0%
2013-2014 1371087176 100% -0.6% 6676047323 100% 10.9%
2014-2015 1471957300 100% 8.3% 7276227738 100% 9.0%
2015-2016 1573237818 100% 7.9% 7879307977 100% 8.7%
2016-2017 1674287089 100% 7.2% 8376017971 100% 5.9%
2017-2018 1773007475 100% 5.3% 8779447554 100% 5.2%
* 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
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December 18, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 275 of 288
Central Contra Costa Sanitary District
Sewer Service Charge
List Of Ten Largest Customers
Ten Fiscal Years
2008-2009 2009-2010 2010-2011 2011-2012 2012-2013
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. $8,755,857 1 16.40% $8,664,668 1 14.73% $9,224,952 1 15.40% $10,647,389 1 17.28% $10,483,421 1 15.18%
Chevron Offices&Office Park 2. 363,739 2 0.68% 165,561 7 0.28% - - - - - -
Contra Costa County General Services 3. 320,866 3 0.60% 305,880 2 0.52% 301,430 2 0.50% 292,384 4 0.47% 321,803 4 0.47%
First Walnut Creek Mutual 295,450 4 0.55% 295,450 3 0.50% 295,450 3 0.49% 323,950 2 0.53% 352,450 2 0.51%
Park Regency Apartments 277,412 5 0.52% 277,412 4 0.47% 277,412 4 0.46% 304,172 3 0.49% 330,932 3 0.48%
Second Walnut Creek Mutual Apts 233,250 6 0.44% 233,250 5 0.40% 233,250 5 0.39% 255,750 5 0.42% 278,250 5 0.40%
Sun Valley Mall 190,734 7 0.36% 197,566 6 0.34% 193,957 6 0.32% 203,037 6 0.33% 174,038 7 0.25%
St.Mary's College Contract 126,222 8 0.24% - - - - 119,407 9 0.19% 158,480 8 0.23%
John Muir Health 3. 125,292 9 0.23% - - - - - - 176,381 6 0.26%
Branch Creek Vista Apartments 124,400 10 0.23% 124,400 9 0.21% 124,400 7 0.21% 136,400 7 0.22% 148,400 9 0.21%
Kaiser Foundation Hospital 3. - - 136,753 8 0.23% - - - - - -
Bay Landing Apartments - - 111,960 10 0.19% 111,960 8 0.19% 122,760 8 0.20% 133,560 10 0.19%
Archstone Apartments - - - - 108,850 9-10 0.18% 119,350 10 0.19% - -
Muirland @ Windemere Apartments - - - - 108,850 9-10 0.18% 119,350 10 0.19% - -
Total $10,813,222 20.26% $10,512,900 17.87% $10,980,511 18.33% $12,643,949 20.52%
12,557,715 18.18%
2013-2014 2014-2015 2015-2016 2016-2017 2017-2018
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. $11,625,864 1 15.71% $12,892,945 1 15.25% $13,913,960 1 15.86% $13,851,253 1 15.63% $14,973,623 1 16.19%
Contra Costa County General Services 3. 419,590 2 0.57% 451,567 2 0.53% 638,608 2 0.73% 547,943 2 0.62% 556,782 2 0.60%
First Walnut Creek Mutual 384,750 3 0.52% 417,050 3 0.49% 439,850 3 0.50% 462,650 3 0.52% 487,350 3 0.53%
Park Regency Apartments 361,260 4 0.49% 391,588 4 0.46% 412,996 4 0.47% 434,404 4 0.49% 457,596 4 0.49%
Second Walnut Creek Mutual Apts 303,750 5 0.41% 329,250 5 0.39% 347,250 5 0.40% 365,250 5 0.41% 387,750 5 0.42%
Sun Valley Mall 211,866 6 0.29% 299,697 6 0.35% 283,613 6 0.32% 298,005 7 0.34% 354,208 6 0.38%
John Muir Health 3. 148,374 8 0.20% - - 218,919 7 0.25% 322,601 6 0.36% 278,589 7 0.30%
San Ramon Unified School District - - - - 215,044 8 0.25% 225,339 8 0.25% 247,766 8 0.27%
Willows Shopping Center 3. 145,091 10 0.20% - - 206,210 9 0.24% - - 236,285 9 0.26%
Branch Creek Vista Apartments 162,000 7 0.22% 175,600 7 0.21% - - 194,800 9 0.22% 205,200 10 0.22%
Kaiser Foundation Hospital 3. - - 158,848 8 0.19% 186,232 10 0.21% 186,281 10 0.21% - -
Bay Landing Apartments 145,800 9 0.20% 158,040 9 0.19% - - - - - -
Archstone Apartments - - 153,650 10 0.18% - - - - - -
Muirland @ Windemere Apartments - - 153,650 10 0.18% - - - - - -
Total $13,908,345 18.79% $15,581,885 18.44% $16,862,681 19.22% $16,888,526 19.06% $18,185,149 19.66%
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
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December 18, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 276 of 288
Central Contra Costa Sanitary District
Payments Under the Concord Agreement
Last 10 Fiscal Years
Fiscal Year Discharge Volume (mg) Service Charges Capital Contributions Total
2008-09 3,924 $8,755,857 $5,485,858 $14,241,715
2009-10 4,077 8,664,668 3,628,949 125293,617
2010-11 4,507 9,224,952 3,216,190 1254415142
2011-12 45279 1056475389 255415688 1351895077
2012-13 45213 10,4835421 356165771 1451005192
2013-14 35914 11,625,864 358205858 1554465722
2014-15 35826 1258925945 2,8975491 15,790,436
2015-16 35878 1359135960 356715892 1755855852
2016-17 45800 13,8515253 454765961 18,3285214
2017-18 45265 14,973,623 653645725 2153385348
Central Contra Costa Sanitary District
Active Service Accounts and Fiscal Year Billings
Sewer Service Charges
Fiscal Year 2017-2018
2017-2018 Sewer Percentage
User Group No. of Accounts Service Charge Billings Residential Unit Equivalents of Total
Residential 1135602 $7253515472 1365512 81%
Mixed Use 423 55761,927 105872 6%
Office 967 253195555 45377 3%
Hotel/Motel 23 15174,330 25216 1%
Food Service 164 150985961 25074 1%
Businesses 384 6625265 15250 1%
Recreation/Entertainment 137 6515823 15230 1%
Automotive/Car Wash 240 6305988 15191 1%
Market/Supermarket 40 4825969 911 1%
Industrial Permitted 9 4775127 900 1%
All Other User Groups 994 450975581 75731 5%
Subtotal 1165983 $8957085998 1695262 100%
Partial Year Charges (Counter) $4435523
Prior Year Adjustments (2675511)
Total FY 2017-2018 Sewer Service Charge Revenue $8958855010
S-7
December 18, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 277 of 288
Summary Of Debt Service
Last Ten Fiscal Years
Debt Service Paid Each Fiscal Year Outstanding Debt Each Fiscal Year
$6,000,000 In 2009,the District issued Bonds which retired the 2002 and 1998 bond
$60,000,000 debt and gained$30 million in net proceeds dedicated to fund Capital Improvements.
$5,000,000
$4,000,000 $45,000,000
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Summary B Type Of Debt
Revenue Bonds(2009,2002&1998 - '- 11 11 � Total Debt Service Annual Expense • = •
Fiscal Interest& Total Interest& Total Interest& Total Revenue - '- • . -•
Year Principal Amortization Debt Service Princi al Amortization Debt Service Principal Amortization Debt Service Bonds •. • • •
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 2,300,000 1,304,036 3,604,036 177,757 9,362 187,119 2,477,757 1,313,398 3,791,155 31,500,000 182,377 31,682,377
2017-2018 1 2,405,000 1 1,225,938 1 3,630,938 1 182,377 1 4,742 1 187,119 1 2,587,377 1 1,230,680 1 3,818,057 1 29,095,000 1 - 29,095,000
Debt Service Coverage Summary Debt Ratios
Total Total Operating Non-Operating Debt Service Capital Debt Service Annual Debt Annual Debt Total Debt
Fiscal Debt Operating Expenses less Revenue& Net Coverage Improvement Adjusted Net Coverage Service to Service per Outstanding
Year Service Revenue Depreciation*1 Contributions Revenue*2 (Net Revenue)*3 Fees/Concord Revenue*4 (Adj.Net Revenue)*5 Operating Exp. Customer Per Customer
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
2017-2018 1 3,818,057 1 92,496,435 1 88,119,374 1 51,841,253 1 56,218,314 1 14.72 15,696,145 1 40,522,169 1 10.61 1 4.33% 22.51 171.56
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. Debt Restrictions:
*1 2014-2015 includes implementaion of pension expense reporting changes for GASB 68&71. Revenue Pledge&Covenant: The District pledges
*2 Net Revenue=Operating Revenue,less Total Operating Expenses less Depreciation,plus Non-Operating Revenue&Contributions. Property Tax Revenue along with its ability to raise Sewer
*3 This ratio must be above 1.00 to meet the Debt Rate Covenant(Net Revenue/Total Debt Service). Service Charge(SSC)rates. Debt Coverage requirements
*4 Adjusted Net Revenue=Net Revenue less Capital Improvement Fees(Connection Fees)and City of Concord Capital Charges. are discussed in the footnotes to the left.
*5 This ratio must be above 1.25 to meet the Debt Rate Covenant(Adjusted Net Revenue/Total Debt Service). Reserve Requirement at June 30,2018:$4,856,450
Balance in reserve account at June 30,2018:$4,856,450
Source: Central Contra Costa Sanitary District Audited Financial Statements and Internal Accounting Records
December 18, 2018 Regular FINANCE Committee Meeting Agenda Pack'4- Page 278 of 288
Central Contra Costa Sanitary District
Demographic and Economic Data
Population Served
Last Ten Calendar Years
Inside District Concord/ Total %
As Of January 1 Boundaries Clayton Served Change
2009 3221200 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 1341200 4611100 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 4841245 0.6%
2018 348,333 140,590 488,923 1.0%
Source: Central Contra Costa Sanitary District Environmental Services Division
List of Ten Largest Employers in Contra Costa County
Last Year and Eight Years Ago*
2009* 2017*
Estimated % of Total County Estimated % of Total County
Employers Employees Rank Employment Employees Rank Employment
Chevron Corporation 41700 1 0.99% 101000+ 1 1.89%
Bay Alarm Co. - - 11000-41999 T-2 0.56%
St. Mary's College - - 11000-41999 T-2 0.56%
Bio-Rad Laboratories 11700 4 0.36% 11000-41999 T-2 0.56%
Job Connections - - 11000-41999 T-2 0.56%
John Muir Medical Center 11900 3 0.40% 11000-41999 T-2 0.56%
Kaiser Permanente - - 11000-41999 T-2 0.56%
La Raza Market - - 11000-41999 T-2 0.56%
Martinez Medical Offices - - 11000-41999 T-2 0.56%
USS-POSCO Industries 975 8 0.20% 11000-41999 T-2 0.56%
Kaiser Foundation Hospital 21300 2 0.49% - -
John Muir/Mt. Diablo Medical Center 11500 5 0.32% - -
24 Hour Fitness 11300 6 0.27% - -
Doctors Medical Center 11000 7 0.21% - -
Contra Costa Newspaper, Inc. 900 9 0.19% - -
Bank of the West 800 10 0.17%
All Others 456,725 96.40% 495,400 93.07%
Total 473,800 100.0% 5321400 100.0%
Source: * County of Contra Costa,California,Comprehensive Annual Financial Report for June 30,2017,Statistical Section,principal employers excludes government employers.
December 18, 2018 Regular FINANCE Committee Meeting Agenda Pacl� - Page 279 of 288
Central Contra Costa Sanitary District
Demographic and Economic Statistics
Contra Costa County
Last Ten Fiscal Years
Fiscal Year Per Capita Average Annual
Ended Personal Personal Unemployment
June 30 Population* Income* Income* Rate**
2008 110235344 $60,281,111,000 $58,906 6.3%
2009 150375890 56,296,792,000 545242 10.8%
2010 150525799 56,882,501,000 545030 11.3%
2011 150665182 61,498,902,000 575681 10.4%
2012 150795093 66,772,041,000 615878 9.0%
2013 150955310 67529051155000 615435 7.4%
2014 1,110,971 71,164,468,000 645056 6.2%
2015 1,126,027 77,914,957,000 695195 5.0%
2016 151385645 82520454255000 725195 4.4%
2017 151475439 87581052795000 765527 3.8%
U.S.Department of Commerce,Bureau of Economic Analysis. Estimates for 2010-2016 reflect county population estimates available as of March 2018.
** State of California,Employment Development Department(EDD),annual calendar figure.
S-10
December 18, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 280 of 288
Central Contra Costa Sanitary District
Full-time Equivalent Positions Filled by Department
Last Ten Fiscal Years
Full-time Equivalent Positions Filled as of June 30
Department 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Administration 45 45 44 39 39 44 46 49 43 43
Engineering 80 76 75 71 75 73 72 88 88 89
Operations
Collection Systems 52 47 44 47 56 55 56 55 55 54
Plant 82 78 74 71 76 81 88 79 83 81
Pumping Station 10 10 8 7 8 8 8 7 7 7
Operations Total 144 135 126 125 140 144 152 141 145 142
District Total 269 256 245 235 254 261 270 278 276 274
Number of Retirees and Surviving Spouses as of June 30
Last Ten Fiscal Years
District Total 187 201 215 237 244 243 244 249 259 278
Source: Central Contra Costa Sanitary District Finance and Human Resources Divisions
S-11
December 18, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 281 of 288
Central Contra Costa Sanitary District
Capital Asset and Operating Statistics
Last Ten Calendar or Fiscal Years
Millions of Gallons per Day(mgd)
Treatment Plant Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
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 36.6 32.5 38.9 37.2 33.2 33.8 30.4 29.1 30.8 33.3
Wastewater Treated per day Calendar 41.0 37.0 40.6 41.9 39.8 36.8 35.6 31.8 35.4 43.2
Tons per Year
Sludge to Furnace(Dry)*1 Fiscal 15,212 15,299 15,056 15,790 15,097 14,590 16,789 16,623 17,031 17,105
Ash to Reuse Site(Wet)*2 Fiscal 4,177 4,082 3,814 3,850 3,667 3,618 3,811 3,651 4,230 3,956
*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 Other Data
Pipeline Miles Calendar 1,500 1,500 1,500 1,500 1,526 1,526 1,519 1,519 1,519 1,535
Number of pumping stations(owned) Calendar 17 17 16 16 16 16 16 16 16 15
Recycled Water
Recycled Water Pipeline Calendar 10.5 miles 10.5 miles 10.5 miles 10.5 miles 10.5 miles 10.5 miles 13 miles 13 miles 13 miles 13 miles
Recycled Water Produced per day Calendar 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 1.58 mgd
Number of Recycled Water Customers Calendar 31 30 33 35 35 35 37 43 52 52
Residential Recycled Water Fill Station Customers Calendar N/A N/A N/A N/A N/A N/A N/A 1,020 2,259 2,313
Household Hazardous Waste(HHW)-Inception 1997/1998
Program Participation(Number of cars) Fiscal 28,210 29,347 29,441 29,112 29,119 30,379 31779 33,468 33,037 35,640
Percentage of Households in Service Area Fiscal 14.4% 15.0% 15.6% 15.4% 15.4% 15.9% 16.6% 16.8% 16.7% 18.1%
Operating Cost per Car Fiscal $76 $76 $82 $87 $93 $83 $78 $72 $80 $77
Pounds of HHW per Car Fiscal 67 65 68 67 68 66 63 64 65 64
Pharmaceutical Collection Program-Inception 2009
Number of Collection Sites Calendar N/A 5 10 10 10 12 13 13 13 13
Pounds of Expired or Unwanted medications Collected Calendar N/A 4747 8,960 9,434 12,240 12428 14,041 15,366 16,485 17,337
Miscellaneous Statistics
Governing Body: Elected 5-Member Board of Directors
Governmental Structure: Established in 1946 under the Sanitary District Act of 1923
Staff: 274 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: 488,923
Sewer Service Charge: $530 for single family homes and$513 for multi-family homes.
Source: Central Contra Costa Sanitary District records S-12
December 18, 2018 Regular FINANCE Committee Meeting Agenda Packet- Page 282 of 288