HomeMy WebLinkAbout08. Approve final CAFR for FY ended 06-30-19 for submission to GFOA Page 1 of 91
Item 8.
CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
MEETING DATE: DECEMBER 19, 2019
SUBJECT: APPROVE THE FINAL COMPREHENSIVE ANNUAL FINANCIAL REPORT
(CAFR) FOR THE FISCAL YEAR ENDED JUNE 30, 2019 FOR SUBMISSION
TO THE GOVERNMENT FINANCE OFFICERS ASSOCIATION (GFOA)
SUBMITTED BY: INITIATING DEPARTMENT:
KEVIN MIZUNO, FINANCE MANAGER 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) issued by the Government Accounting Standards Board (GASB) 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 the fiscal year ended June 30, 2018. The Certificate of Achievement is the
highest form of recognition for excellence in state and local government financial reporting. I n order to be
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awarded a Certificate of Achievement, a government agency must publish an easily readable report in a
prescribed format report that complies with GAAP as well as GFOA program requirements. The CAFR
includes ten years of District historical, financial, and statistical data. The CAFR provides a concise
document for internal management use, as well as external use with other agencies, and is posted on the
District's website for the general public. A Certificate of Achievement is valid for a period of one year.
The Finance Division has prepared the District's CAFR as of June 30, 2019. Management is confident
that the current CAFR continues to meet the Certificate of Achievement for Excellence in Financial
Reporting Program requirements and staff is requesting for Board approval to submit it to the GFOA to
determine its eligibility for another certificate.
ALTERNATIVES/CONSIDERATIONS
The Board could elect not to pursue the GFOA award for the financial report. Pursuing the award is
advised, a best practice, and consistent with Central San's strategic plan to goal to provide exceptional
customer service and maintain an excellent reputation in the community.
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 $560. Appropriations necessary to cover
this cost were incorporated in the adopted budget for the current fiscal year ending June 30, 2020.
COMMITTEE RECOMMENDATION
On December 18, 2019, the Finance Committee reviewed the draft CAFR for the fiscal year ended June
30, 2019 and recommended Board approval at the December 19, 2019 Board meeting.
RECOMMENDED BOARD ACTION
Review and approve the CAFR for the fiscal year ended June 30, 2019 for submission to the GFOA.
Strategic Plan re-In
GOAL ONE: Provide Exceptional Customer Service
Strategy 3- Maintain a strong reputation in the community
GOAL THREE: Be a Fiscally Sound and Effective Water Sector Utility
Strategy 1 - Conduct long-range financial planning, Strategy 2- Manage costs
GOAL SIX: Embrace Technology, Innovation and Environmental Sustainability
Strategy 1 -Augment the region's water supply
ATTACHMENTS:
1. Comprehensive Annual Financial Report for the Fiscal Years Ended J une 30, 2019 and 2018
December 19, 2019 Regular Board Meeting Agenda Packet- Page 104 of 260
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COMPREHENSIVE
ANNUAL
FINANCIAL REPOR
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FOR THE FiSCALYEARS ENDED UNE , 2019 AND 201 8
Page 4 of 91
CENTRAL CONTRA COSTA SANITARY DISTRICT
MARTINEZ, CALIFORNIA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE YEARS ENDED JUNE 30, 2019 AND 2018
Prepared By:
Finance Division
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CENTRAL CONTRA COSTA SANITARY DISTRICT
Comprehensive Annual Financial Report
Table of Contents
For the Years Ended June 30, 2019 and 2018
INTRODUCTORY SECTION:
Letterof Transmittal............................................................................................... i
Board of Directors...............................................................................................viii
MissionStatement................................................................................................ix
OrganizationChart ............................................................................................... x
Mapof Service Area .............................................................................................A
Certificate of Achievement...................................................................................xii
FINANCIAL SECTION:
Independent Auditors' Report............................................................................... 1
Management's Discussion and Analysis .............................................................. 5
Basic Financial Statements
Statements of Net Position ................................................................. 12-13
Statements of Revenues, Expenses and Changes in Net Position.......... 14
Statements of Cash Flows.................................................................. 15-16
Statements of Fiduciary Net Position — Fiduciary Fund ........................... 17
Statements of Changes in Fiduciary Net Position - Fiduciary Fund ........ 18
Notes to Financial Statements - The accompanying notes are an
integral part of the basic financial statements.................................... 19-48
Required Supplementary Information
Cost-Sharing Multiple Employer Defined Benefit Retirement Plan -
Proportionate Share of Net Pension Liability......................................... 50
Schedule of Contributions ..................................................................... 51
Post-Retirement Health Care Defined Benefit Plan —
Schedule of Changes in the Net OPEB Liability and Related Ratios .... 52
Schedule of Investment Return Rate .................................................... 52
Schedule of Contributions ..................................................................... 53
Supplementary Information
Combining Schedule of Statement of Net Position .................................. 56
Combining Schedule of Statement of Revenues, Expenses and
Changes in Net Position - Enterprise Sub-Funds .................................. 57
STATISTICAL SECTION (Unaudited):
Changes in Net Position and Statement of Net Position -
Last Ten Fiscal Years.....................................................................................S-1
Revenue by Type - Last Ten Fiscal Years.........................................................S-2
Operating Expenses by Type - Last Ten Fiscal Years.......................................S-3
Major Revenue Base and Rates - Historical and Current Fees -
Last Ten Fiscal Years.....................................................................................S-4
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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
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CENTRALSAN
CENTRAL CONTRA COSTA SANITARY DISTRICT
December 9, 2019
Central Contra Costa Sanitary District Customers and
The Honorable Board of Directors,
Martinez, California:
State law requires that every general-purpose local government publish within six months
of the close of each fiscal year a complete set of audited financial statements. This report
is published to fulfill that requirement for the fiscal year ended June 30, 2019.
Management of Central Contra Costa Sanitary District (the District) assumes full
responsibility for the completeness and reliability of the information in these financial
statements, based upon a comprehensive system of internal controls that is established
for this purpose. Because the cost of internal control should not exceed anticipated
benefits, the objective is to provide reasonable, rather than absolute, assurance that the
financial statements are free of any material misstatements.
Maze & Associates has issued an unmodified ("clean") opinion on the District's financial
statements for the year ended June 30, 2019. The independent auditors' 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 auditors' 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
approximately 30 miles east of San Francisco. The District builds, operates and maintains
the facilities required to collect and clean wastewater for approximately 353,000 residents
of Danville, Lafayette, Martinez, Moraga, Orinda, Pleasant Hill, San Ramon, Walnut
Creek and some of the unincorporated communities within central Contra Costa County.
The District also treats wastewater for approximately 142,000 residents of the Cities of
Concord and Clayton under a 1974 contract with the City of Concord.
The District is committed to protecting the public health and preserving the environment
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 80% of the Sewer Service Charge operating revenue. The District's
treatment capacity has grown tremendously from a modest 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 non-drinking purposes such as landscape irrigation at schools,
parks, playgrounds, median strips and playing fields, as well as dust control and industrial
process uses. 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 also actively pursues new recycled water
expansion opportunities to take advantage of the potential water supply that highly-
treated wastewater represents, particularly given California's limited water supply. Goals
of this program include expanding recycled water availability to District customers, and
potentially, putting our valuable recycled water resource to beneficial use outside of the
District's service territory through water exchanges. The District continues to
enthusiastically promote this program with the position that recycling water is good for the
environment and provides an economic benefit to the community by ensuring a reliable,
drought-proof water supply for our local businesses and parks.
In addition to its responsibility to collect and treat wastewater, the District also undertakes
pollution prevention initiatives through the operation and maintenance of 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 a vital part of our overall Pollution Prevention
Program. Having completed its 22nd year of operation, the HHW Facility currently serves
over 35,000 residential and small business customers annually, from which over two
million pounds of hazardous waste is collected and properly disposed of each year. In
conjunction with its HHW facility, the District's Pharmaceutical Collection Program
encourages pollution prevention having collected over seventeen thousand pounds of
expired or unwanted medications between its thirteen collection sites.
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 four-year staggered terms. 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 permanent regular full-time employees organized in three departments
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led by the Deputy General Manager and Department Directors responsible for their
budgets and expenses. The three departments are: Administration, Engineering and
Technical Services, and Operations.
The District, by law, uses an enterprise fund structure to account for its operations and is
run in a manner similar to private industry. The District currently has one enterprise fund
which is comprised of four internal sub-funds:
■ Running Expense - accounts for the general operations of the District. Substantially
all operating revenues and expenses are accounted for in this fund (also referred to
as Operations & Maintenance or O&M).
■ Sewer Construction - accounts for non-operating revenues that are to be used for
acquisition or construction of plant, property, and equipment (also referred to as the
Capital Fund).
■ 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, investments, and fiscal
reserves) that are reviewed and updated in accordance with best practices as well as
changes in laws and regulations.
ASSESSING THE DISTRICT'S ECONOMIC CONDITION
Local EconomV and Outlook
As of October 2019, the current economic expansion is now the longest on record for the
United States. According to the State of California's Legislative Analyst's Office (LAO),
the U.S economy will continue to grow in the coming years, although at a somewhat
slower pace than in recent years. Based on this outlook, the LAO expects continued
modestly paced growth of the California economy, continuing to add jobs although more
slowly than in recent years. According to the California Employment Development
Department (EDD), the Contra Costa County workforce grew modestly by approximately
0.56% from October 2018 to October 2019. During this same timeframe, unemployment
in Contra Costa County decreased slightly from 3.0% to 2.7%, marginally outpacing
California as a whole, which decreased from 4.1% to 3.9%. Although positive news, this
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record low unemployment adversely translates into slower anticipated job growth given a
limited number of Californians seeking employment. Following a decline through much
of 2019, California's housing markets are expected to rebound slightly, largely in
response to falling mortgage interest rates. All this news aside, while California's
economy is still expanding, the rate of growth appears to be slowing and uncertainties
about the stock market, trade disputes, and speculation of a recession in the horizon
continue to cloud economic forecasts.
Long-Term Financial Planning
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. This positive reputation and long-term outlook has served the
District well, most recently evidenced by the significant customer support and unanimous
Board of Directors approval of a four-year sewer service charge rate increase. Following
the public noticing process and a public hearing stipulated by Proposition 218, the sewer
service charge rates approved in April 2019 will be effective from July 2019 through June
2023. The four-year sewer service charge rate increases range from 5.25% to 4.75%
and are a critical component of implementing the treatment plant and collection system
capital improvement projects specified in the District's 20-year master plan adopted in
2017. Annually, prior to the start of each fiscal year through 2023, the Board of Directors
will review whether the approved rate increase will be put into effect at the approved, or
a lesser level.
In conjunction with the approved sewer service charge rates, the District's most recently
adopted long-term financial plan anticipates two debt issuances totaling approximately
$154 million to finance its treatment plant and collection system capital improvement
program through the fiscal year ending June 30, 2024. While the current strategy is to
initially pursue low interest and federally subsidized State Revolving Fund (SRF) loan
financing through the California Water Board, District could alternatively seek affordable
bond financing given the District's strong AAA and Aa1 bond credit ratings. During the
fiscal year, the District was informed that it's application for $89.6 million of SRF funding
for the Solids Handling Project that is scheduled to be implemented in the next several
years was tentatively approved. This lower cost financing is anticipated to allow for a
reduction in the $154 million projected total debt issuance, or lower rates.
District management analyzes and updates a strategic plan every two years, with the six
goals being: (1) provide exceptional customer service and maintain an excellent
reputation in the community; (2) strive to meet regulatory requirements; (3) be a fiscally
sound and effective wastewater utility; (4) recruit, develop and retain a highly trained and
safe workforce; (5) maintain a reliable infrastructure; and (6) embrace technology,
innovation and environmental sustainability. Strategies to achieve each of these six 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 financial plan cash flow forecast each year shortly before the budget process
begins. The main economic factors considered in this long-term forecasting exercise are:
the impact of state legislation and mandates, regulatory compliance, Governmental
Accounting Standards Board (GASB) requirements, negotiated labor terms (including
iv
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projected 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 accrued liabilities for the District's pension OPEB plans are also
considered in the financial planning process. The District currently has a relatively strong
fiduciary net position of approximately 77.9% and 84.7% for its pension and OPEB plans
respectively. The noted pension funding percentage is on the market value basis as of
December 31, 2018. The District also maintains $8.4 million in a pension prefunding trust
that is dedicated to meeting pension obligations.
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.
Relevant Financial Policies
Investment Policy: The investment policies for District assets, the GASB 45 (OPEB)
Trust, and the Pension Prefunding Trust are reviewed and approved annually by the
Board of Directors. During fiscal year 2018-19 the District contributed an additional $2.5
million to its IRS Section 115 pension prefunding trust as a mechanism to hedge against
potential future employer pension contribution rate volatility. As noted, the Trust had a
balance of $8.4 million at fiscal year-end. 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 Prefunding
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 Section 115 Pension Prefunding trust funds
are invested using a moderately conservative strategy, reflecting the relatively shorter
term need for the funds. These two irrevocable 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.
Manor 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 Peak Performance Award from the National
Association of Clean Water Agencies (NACWA) for 21 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 15 years by improved sewer cleaning and a robust sewer rehabilitation program.
v
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During the current year, the District approved a two-year Strategic Plan for FY 2018-19
and FY 2019-20. As noted previously, the Strategic 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 they remain consistent with the cost of
service study most recently completed in FY 2014-15. The District is seeking out new
revenues and funding sources, such as interagency agreements and possible state loan
and grant opportunities.
In order to effectively manage assets to meet future state and federal regulatory
requirements, the District initiated an Asset Management Program and the preparation of
a Comprehensive Wastewater Master Plan to evaluate options for addressing future
regulatory requirements. The Master Plan was completed in FY 2016-17 and 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. Furthermore, 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, 2018. This was the nineteenth 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 2019. 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:
Vi
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■ 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, Amal Lyon, Accountant, and Jamie King, Interim Accountant.
■ The Reproduction and Graphics Team who creatively and professionally prepared this
finished document.
■ Engineering &Technical Services Department as well as Operations Department 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,
T. Kevin Mizuno
Finance Manager
/U4
Philip Leiber
Director of Finance & Administration
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CENTRAL CONTRA COSTA SANITARY DISTRICT
BOARD OF DIRECTORS
June 30, 2019
David R. Williams..............................................President
Michael R. McGill...............................President Pro-Tem
Paul H. Causey ..................................................Member
James A. Nejedly................................................Member
Tad J. Pilecki .....................................................Member
Viii
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.�000D CENTRAL SAN
CENTRAL CONTRA COSTA SANITARY DISTRICT
VISION , /\AISS
1
VALUES
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 friendly empowered workforce
community relationships • Encourage continuous
• Work as a team • Take ownership and g
• Work effectively • Be open,transparent responsibility growth and development
and efficiently and accessible • Inspire dedication and
• Celebrate our • Understand service top-quality results
successes and learn level expectations • Provide a safe and
from our challenges • guild partnerships healthful environment
_ .._ -
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Central Contra Costa Sanitary District Service Area
June 30, 2019 Date: 10/30/19
680
Benicia
Suisun Barr
Sara
Pablo
Say so
Hercules 1 2 5 4 Pittsburg
Martinez • °�'
6
7 Antioch
Concord
`:Pleasant Hill
Clayton
Walnut Creek
9 �
.10 11 12
13 Lafayette
Berkeley
Orinda
Alamo
24 Moraga
14 68U
Danville
Oakland
AA San Ramon
-San
Francisco
Ray 15
Legend o 2 4
Pump or Lift Station
Central San's Headquarter, Treatment Plant, •�•
• and HHW Collection Facility Q Privately Owned Pump Station Miles
Central San's Collection System Operations Pump and Lift Stations
Department(sewer maintenance) Building 1. Martinez 11. Lower Orinda
2. Fairview 12. Bates Blvd. -Orinda
Wastewater collection and treatment and 3. Maltby 13. Orinda Crossroads
HHW collection for 352,733 people
4. Clyde 14. Moraga
JWastewater treatment and HHW collection 5. Concord Industrial 15. San Ramon
for 141,542 residents in Concord and Clayton 6. Buchanan Field North 16. Wagner Ranch
by contract 7. Buchanan Field South 17. Lower Wilder
8. Sleepy Hollow 18. Upper Wilder
HHW disposal services only 9. Acacia
10. Flush Kleen
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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 3.0, 2018
aa��
Executive Director/CEO
December 19, 2019 Regular Board Meeting Agenda Packet- Page 121 of 260
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F1 M ACZTE
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
Central Contra Costa Sanitary District
Martinez, California
We have audited the accompanying financial statements of the business-type activities and the fiduciary fund of the
Central Contra Costa Sanitary District (District) as of and for the years ended June 30, 2019 and 2018, 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.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the business-type activities and the fiduciary fund of the Central Contra Costa Sanitary District
as of June 30,2019 and 2018,and the respective changes in financial positions 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 F 925.930.0135
3478 Buskirk Avenue,Suite 215 a maze®mazeassociates.com
Pleasant Hill.CA 94523 1 w mazeassociates.com
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Emphasis of Matter
Management adopted the provisions of the following Governmental Accounting Standards Board Statements,which
became effective during the year ended June 30,2019 as discussed in Note 1 to the financial statements:
Governmental Accounting Standards Board Statement 88 — Certain Disclosures Related to Debt
including Direct Borrowings and Direct Placements. See Note 6 to the financial statements for relevant
disclosures.
The emphasis of this matter does not constitute a modification of our opinion.
Report on Summarized Comparative Information
We have previously audited the District's June 30,2018 financial statements, and we expressed an unmodified audit
opinions on those audited financial statements in our report dated December 4, 2018. In our opinion,the summarized
comparative information presented herein as of and for the year ended June 30, 2018 is consistent, in all material
respects,with the audited financial statements from which it has been derived.
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.
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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 9, 2019
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This Page Left Intentionally Blank
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Central Contra Costa Sanitary District
Protecting public 5019 Imhoff Place,Martinez, CA 94553-43
MANAGEMENT'S DISCUSSION AND ANALYSIS
This section of the Central Contra Costa Sanitary District's (District) annual financial report presents an
analysis of the District's financial performance during the fiscal year ended June 30,2019(2018-19). This
information is presented in conjunction with the audited financial statements,which follow this report.
FINANCIAL HIGHLIGHTS
The District's 2018-19 financial highlights are listed below. These results are discussed in more detail
later in the report.
• The District's total ending net position increased by $83.2 million or 13.39% in 2018-19. This
increase is primarily a result of the negative Other Post Employment Benefits (OPEB) expense
adjustment recognized as a result of the transition to CalPERS Healthcare, reducing medical
premium rates for current and retired participants, as well as increases in capital contributions.
• Total revenues in 2018-19 decreased by $4.5 million or 3.88%. The total annual sewer service
charge rate increased for single family homes by 6.53%to$567 and 6.56%for multi-family homes
to $549. Increased property values in the service area led to an increase in property taxes.
• Total 2018-19 expenses decreased by$36.6 million or 33.01%. This is mainly due the combination
of the negative OPEB expense adjustment that was recognized as a result of the District
transitioning to CalPERS healthcare administration significantly reducing current and retiree
medical premiums as well as interest savings arising from the 2018 debt refinancing.
• Capital Contributions increased in 2018-19 by $15.1 million or 47.63%. 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
The District operates as a utility enterprise and presents its financial statements using the economic
resources measurement focus and the full accrual basis of accounting. As an enterprise fund,the District's
basic financial statements are comprised of two components:financial statements and notes to the financial
statements. This report also contains other supplementary information in addition to the basic financial
statements themselves.
In accordance with the GASB Codification of Governmental Accounting and Financial Reporting
Standards, the District's annual financial balances and transactions are summarized and reported in the
following financial statements:
• 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
Year Ending June 30 2019 vs.2018 2019 vs.2017
$Increase %Increase $Increase %Increase
2019 2018 2017 (Decrease) (Decrease) (Decrease) (Decrease)
Assets
Current assets $138,987,589 $119,043,984 $105,876,117 $19,943,605 16.75% $33,111,472 31.27%
Capital assets,net 677,392,935 652,402,342 632,452,631 24,990,593 3.83% 44,940,304 7.11%
Other non-current assets 9,752,616 11,462,838 10,057,548 (1,710,222) -14.92% (304,932) -3.03%
Total assets 826,133,140 782,909,164 748,386,296 43,223,976 5.52% 77,746,844 10.39%
Deferred outflows
Pension related 46,715,613 21,503,021 29,078,203 25,212,592 117.25% 17,637,410 60.66%
OPEB related 2,836,089 30,400 - 2,805,689 9229.24% 2,836,089 0.00%
Total deferred outflows 49,551,702 21,533,421 29,078,203 28,018,281 130.12% 20,473,499 70.41%
Liabihtie s
Current liabilities 14,404,545 14,441,630 13,720,331 (37,085) -0.26% 684,214 4.99%
Long-term liabilities 126,547,399 140,952,831 121,055,247 (14,405,432) -10.22% 5,492,152 4.54%
Total liabilities 140,951,944 155,394,461 134,775,578 (14,442,517) -9.29% 6,176,366 4.58%
Deferred inflows
Pension related 23,736,976 28,076,634 16,051,905 (4,339,658) -15.46% 7,685,071 47.88%
OPEB related 6,864,360 - - 6,864,360 100.00% 6,864,360 0.00%
Total deferred inflows 30,601,336 28,076,634 16,051,905 2,524,702 8.99% 14,549,431 90.64%
Net position
Net investment in capital assets 655,586,304 623,307,342 600,770,254 32,278,962 5.18% 54,816,050 9.12%
Restricted (271,370) 4,421,504 4,449,437 (4,692,874) -106.14% (4,720,807) -106.10%
Unrestricted 48,816,628 (6,757,356) 21,417,325 55,573,984 -822.42% 27,399,303 127.93%
Total net position $704,131,562 $620,971,490 $626,637,016 $83,160,072 13.39% $77,494,546 12.37%
The total net position of the District decreased from$626.6 million in 2016-17 to $621.0 million in 2017-
18 and increased to $704.1 million in 2018-19. The District's total assets have increased by$43.2 million
or 5.52% compared to 2017-18, and $77.7 million or 10.39% compared to 2016-17. Total liabilities
decreased$14.4 million or 9.29% compared to 2017-18 and increased$6.2 million or 4.58% compared to
2016-17. The increase in net position over the three-year period totals $77.5 million, or 12.37%,resulting
primarily from the District's transition to Ca1PERS for healthcare administration, creating short and long-
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term savings through more affordable health premiums active and retired employee participants, (2) a
significant increase in capital contributions, and(3)the 2018 bond refunding.
By far the largest portion of the District's net position(93.1%)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 is 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 related 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 discharge these liabilities. The balance of$48.8 million in unrestricted net position increased
by $55.6 million from 2017-18 and increased by $27.4 million from 2016-17. As noted previously, this
increase was primarily a result of the District transitioning to a more economical healthcare administrator,
reducing current healthcare premiums for active and retired employee participants as well as significant
reductions to the net OPEB liability.
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
Year Ending June 30 2019 vs.2018 2019 vs.2017
$Increase %Increase $Increase %Increase
2019 2018 2017 (Decrease) (Decrease) (Decrease) (Decrease)
Revenues:
Operating revenues
Sewer service charges $ 83,862,200 $ 91,876,438 $ 88,018,988 $(8,014,238) -8.72% $(4,156,788) -4.72%
Other 1,815,966 619,997 606,453 1,195,969 192.90% 1,209,513 199.44%
Total operating revenue 85,678,166 92,496,435 88,625,441 (6,818,269) -7.37% (2,947,275) -3.33%
Non-operating revenues
Property taxes 18,251,794 17,650,741 16,318,874 601,053 3.41% 1,932,920 11.84%
Permit and inspection fees 2,648,708 2,592,137 2,600,888 56,571 2.18% 47,820 1.84%
Investment earnings 2,573,964 1,223,649 761,838 1,350,315 110.35% 1,812,126 237.86%
Other 1,424,520 1,075,838 966,244 348,682 32.41% 458,276 47.43%
Total non-operating revenue 24,898,986 22,542,365 20,647,844 2,356,621 10.45% 4,251,142 20.59%
Total revenues 110,577,152 115,038,800 109,273,285 (4,461,648) -3.88% 1,303,867 1.19%
Expenses
Operating expense other than depreciation 52,295,571 88,119,374 78,572,632 (35,823,803) -40.65% (26,277,061) -33.44%
Depreciation 20,983,353 21,561,704 22,892,153 (578,351) -2.68% (1,908,800) -8.34%
Non-operating expenses 1,025,006 1,230,680 1,313,398 (205,674) -16.71% (288,392) -21.96%
Total expenses 74,303,930 110,911,758 102,778,183 (36,607,828) -33.01% (28,474,253) -27.70%
Income before capital contributions 36,273,222 4,127,042 6,495,102 32,146,180 778.92% 29,778,120 458.47%
Capital contributions 46,886,850 31,760,548 26,571,487 15,126,302 47.63% 20,315,363 76.46%
Increase in net position 83,160,072 35,887,590 33,066,589 47,272,482 131.72% 50,093,483 151.49%
Beginning net position,as restated 620,971,490 585,084200 * 593,570,427 35,887,290 6.13% 27,401,063 4.62%
Ending net position $704,131,562 $620,971,790 $626,637,016 $83,159,772 13.39% $77,494,546 12.37%
*Net position as of June 30,2018 was restated due to the implementation of Governmental Accounting Standards Board(GASB)Statement No.75.
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Revenue
Total operating revenues increased from $88.6 million in 2016-17 to $92.5 million in 2017-18 and
decreased to $85.7 million in 2018-19. Operating revenues decreased by$6.8 million or 7.37% compared
to 2017-18, and by $2.9 million or 3.33% comparing 2018-19 to 2016-17. The reduction in operating
revenues is largely attributable to a sizable and planned increase in the proportion of sewer service charges
allocated to the capital improvement program, which is reported as non-operating capital contributions.
Total non-operating revenue increased from $20.6 million in 2016-17 to $22.5 million in 2017-18 and to
$24.9 million in 2018-19. Total non-operating revenues in 2018-19 increased compared to 2017-18 by
$2.4 million or 10.46% and increased by $4.3 million or 20.59% comparing 2018-19 to 2016-17.
Total revenues increased from $109.3 million in 2016-17 to $115.0 million in 2017-18 and decreased to
$110.6 million in 2018-19. The change in total revenue represented a decrease of$4.5 million or 3.88%
comparing 2018-19 to 2017-18 and an increase of$1.3 million or 1.19% comparing 2018-19 to 2016-17.
There was a 6.53%rate increase for single family homes and a 6.56%rate increase for multi-family homes
in 2018-19, a 5.37% rate increase for single family homes and a 5.34% rate increase for multi-family
homes in 2017-18, and a 6.79%rate increase for single family homes and a 5.18%rate increase for multi-
family homes in 2016-17. The sewer service charge allocation to cover capital costs increased to 29.40%
in 2018-19 from 15.60% in 2017-18 and 14.25% in 2016-17. Property tax revenue increased by $0.6
million or 3.41%from 2017-18 to 2018-19, and$1.9 million or 11.84%comparing 2018-19 to 2016-2017
due to the continued increase in property values, a healthy real estate market, and development of
residential and commercial real estate in the region.
Expenses
Total expenses increased from $102.8 million in 2016-17 to $110.9 million in 2017-18 and decreased to
$74.3 million in 2018-19. In 2018-19, total expenses decreased by $36.6 million or 33.01% compared to
2017-18. Comparing 2018-19 to 2016-17, total expenses were $28.5 million or 27.70% lower. The
decrease from 2017-18 to 2018-19 is mainly attributable to the negative OPEB expense adjustment
recognized as a result of the District transitioning to Ca1PERS Healthcare, reducing medical premium
rates for active and retired employee participants. Non-operating expenses are mainly driven by interest
expense.
Total income before capital contributions went from $6.5 million in 2016-17, to $4.1 million in 2017-18,
spiking even further to $36.3 million in 2018-19 as result of the healthcare transition noted previously.
Total capital contributions in 2018-19 were$46.9 million compared to$31.8 million in 2017-18 and$26.6
million in 2016-17. This increase was mainly derived from three factors: (1) a shift of the internal sewer
service charge revenue allocation from operating to capital, (2) a 5.25% increase in the sewer service
charge rate, and (3) more connection fee revenue arising from robust housing and construction
development markets.
CAPITAL ASSETS
Net capital assets for fiscal years 2018-19, 2017-18 and 2016-17 totaled $677.4 million, $652.4 million,
and $632.5 million, respectively. Net 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, less depreciation.
As of June 30,2019,the District's investment in capital assets totaled$677.4 million, an increase of$25.0
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million or 3.83% over the net capital asset balance of$652.4 million at June 30, 2018. Net capital assets
increased by $44.9 million or 7.11% comparing 2018-19 to 2016-17. A comparison of the District's
capital assets, net of depreciation, over the past three fiscal years is presented below:
Table 3 — Net Capital Assets
Year Ending June 30 2019 vs.2018 2019 vs.2017
$Increase %Increase $Increase %Increase
2019 2018 2017 (Decrease) Decrease (Decrease) (Decrease)
Structures,buildings,and
equipment $609,205,177 $594,311,630 $576,801,783 $14,893,547 2.5% $32,403,394 5.6%
Land and rights of way 22,270,077 22,270,077 22,262,277 - 0.0% 7,800 0.0%
Construction in progress 45,917,681 35,820,635 33,388,571 10,097,046 28.2% 12,529,110 37.5%
Total 677,392,935 652,402,342 632,452,631 24,990,593 30.7% 44,940,304 7.1%
The increase in capital assets, net of depreciation, of$25.0 million from 2017-18 to 2016-17 and $45.0
million from 2016-17 to 2018-19 is a result of an expanding capital improvement program over these
years. This year's major addition to construction-in-progress includes the following:
Project Description Capital Outlay
Solids handling facility improvements (7348) $ 4,727,501
Mechanical and concrete renovations (7351) 4,280,650
North Orinda sewer renovation(8445) 3,535,938
Plant operations building seismic upgrades (7362) 2,714,844
Piping renovations phase 9(7330) 2,613,403
Walnut Creek sewer renovation phase 13(8455) 2,604,854
Lafayette sewer renovation phase 12(8446) 2,499,090
Moraga/Crossroads pump station project(8436) 2,080,508
Total $ 25,056,788
Refer to Note 5 in the audited financial statements for additional details on the District's capital assets.
DEBT ADMINISTRATION
The total debt obligations for fiscal years 2018-19, 2017-18 and 2016-17 totaled $21.8 million, $29.1
million, and$31.7 million,respectively. As of June 30,2019,the District's outstanding debt totaled$21.8
million, which is a decrease of$7.3 million or 25.05% over the debt balance of$29.1 million at June 30,
2018. Debt decreased by $9.7 million or 30.77% comparing 2018-19 to 2016-17. The reduction in debt
obligations is due to the refinancing of the 2009 certificates of participation during 2018-19, see Note 6
for detailed information. The source of funds primarily securing repayment of debt issued for capital
improvement purposes is secured ad valorem property taxes.
ECONOMIC FACTORS,NEXT YEAR'S BUDGET, AND RATES
The District operates as an enterprise fund primarily funded by fees charged to external customers for
services. The District charges rates and fees to customers to cover the costs of operation and maintenance
of the sewage collection and treatment system as well as costs associated with its capital improvement
program. External factors that may affect the District's financial position include, but are not limited to
the following:
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• Regulatory requirements becoming more stringent, causing the District to spend more
on compliance, both for operations and maintenance costs as well as capital
improvement and replacement projects. This may require debt financing for large
capital projects in the foreseeable future.
• Legislation impacting public employee pension obligations is still being litigated, the
results of which could adversely impact future employer pension obligations.
• The economic cycle, creating volatility with capacity/connection fee revenues as new
development projects are highly sensitive to the economic cycle. The economic cycle
also impacts the Federal and State budgets and legislation, which could affect the
District's ability to secure grant funding and low interest loans.
• Interest rate and/or investment return, which directly impacts investment earnings,
borrowing costs, and which has an adverse relationship to employer pension and OPEB
contribution requirements.
• The consumer price index (CPI), which is a measure of inflation. The CPI for the San
Francisco-Oakland-Hayward area directly impacts the cost of living adjustments
provided in the employee MOUS. Various cost pressures also affect spending for
contracted services as well as materials and supplies.
• Changes in assessed property values, which affect the District's non-operating ad
valorem property tax revenue. When the housing market improves, overall assessed
property values increase, thereby increasing the District's property tax receipts.
Conversely, any decline in the housing market will decrease property values and
correspondingly decrease ad valorem property tax receipts for the District.
These factors, to the extent known, were considered in preparing the District's budget. In June 2019, the
District's Board of Directors adopted an operating and maintenance budget of$87.6 million and sewer
construction capital budget of $66.2 million for the year ending June 30, 2020. Following customer
outreach,public noticing, and a Public Hearing stipulated by Proposition 218, in April 2019 the District's
Board of Directors approved new sewer service charges for the four-year timeframe spanning July 1,2019
to June 30, 2023 with the condition that each year the District shall re-assess whether the increase is still
justified and necessary.
The sewer service charges for the year ending June 30, 2020 incorporates an average rate increase of
5.25%, essential to help address an expanded capital improvement program as well as increases in
operating and maintenance costs. Over the next four fiscal years the District is planning for a greatly
expanded capital improvement program to modernize the District's ageing infrastructure, expand the
capacity and redundancy of existing facilities, address ever-growing regulatory requirements regarding
the protection of public health and the environment and to ensure the sustainability of infrastructure. To
help finance these greatly expanded capital improvement and replacement initiatives,the District currently
plans to seek debt financing in an amount up to $154 million over the next three fiscal years, although this
amount may be further reduced through positive year-end budgetary variances and other unanticipated
factors.
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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: Kevin Mizuno, Finance
Manager, 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 30,2019 AND 2018
ASSETS 2019 2018
CURRENT ASSETS
Cash and cash equivalents(Note 2) $57,648,783 $57,137,987
Short term investments(Note 2) 53,000,000 34,000,000
Accounts receivable,net(Note 3) 24,736,062 22,951,186
Employee computer loans receivable(Note 3) 15,736 10,614
Interest receivable - 99,384
Parts and supplies 2,185,998 2,245,055
Prepaid expenses 1,401,010 2,599,758
Total current assets 138,987,589 119,043,984
NON-CURRENT ASSETS
Restricted cash and cash equivalents(Notes I.F. and 2) 8,537,951 5,497,153
Restricted investments(Note 2) - 4,856,450
Assessment Districts receivable(Note 4) 1,214,665 1,109,235
Capital assets:
Nondepreciable(Note 5) 68,187,758 58,090,712
Depreciable,net of accumulated depreciation(Note 5) 609,205,177 594,311,630
Total capital assets,net 677,392,935 652,402,342
Total non-current assets 687,145,551 663,865,180
TOTAL ASSETS 826,133,140 782,909,164
DEFERRED OUTFLOWS OF RESOURCES
Pension related(Note 9) 46,715,613 21,503,021
OPEB related(Note 10) 2,836,089 30,400
Total deferred outflows of resources 49,551,702 21,533,421
(Continued)
See accompanying notes to financial statements
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CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF NET POSITION
JUNE 30,2019 AND 2018
LIABILITIES 2019 2018
CURRENT LIABILITIES
Accounts payable and accrued expenses $9,956,746 $9,664,738
Interest payable 288,505 534,330
Refunding Water Revenue Bonds-current portion(Note 6) 2,145,000 2,480,000
Accrued compensated absences-current portion(Note 1.J.) 504,700 464,500
Provision for uninsured claims(Note 7) 1,157,797 882,230
Refundable deposits 351,797 415,832
Total current liabilities 14,404,545 14,441,630
NON-CURRENT LIABILITIES
Refunding Water Revenue Bonds,noncurrent portion(Note 6) 19,661,631 26,615,000
Accrued compensated absences,noncurrent portion(Note LJ.) 4,542,903 4,181,377
Net pension liability(Note 9) 90,430,104 63,806,000
Net OPEB liability(Note 10) 11,912,761 46,350,454
Total non-current liabilities 126,547,399 140,952,831
TOTAL LIABILITIES 140,951,944 155,394,461
DEFERRED INFLOWS OF RESOURCES
Pension related(Note 9) 23,736,976 28,076,634
OPEB related(Note 10) 6,864,360 -
Total deferred inflows of resources 30,601,336 28,076,634
NET POSITION(Note 11)
Net investment in capital assets 655,586,304 623,307,342
Restricted for debt service (271,370) 4,421,504
Unrestricted 48,816,628 (6,757,356)
TOTAL NET POSITION $704,131,562 $620,971,490
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 30,2019 AND 2018
2019 2018
OPERATING REVENUES
Sewer service charges(SSC) $68,656,908 $75,824,221
Service charges-City of Concord(Note 8) 15,205,292 14,973,623
Other services charges 1,126,239 1,078,594
Miscellaneous charges 689,727 619,997
Total operating revenues 85,678,166 92,496,435
OPERATING EXPENSES
Sewage collection and pumping stations 17,213,848 15,954,881
Sewage treatment 26,342,221 26,050,876
Engineering 16,334,241 16,472,501
Recycled water 1,189,921 1,023,757
Administrative and general 24,522,508 27,513,001
Pension expense adjustments(Note 9) (2,928,146) (4,441,205)
OPEB expense adjustments(Note 10) (30,379,022) 5,545,563
Depreciation(Note 5) 20,983,353 21,561,704
Total operating expenses 73,278,924 109,681,078
OPERATING(LOSSES) 12,399,242 (17,184,643)
NONOPERATING REVENUES(EXPENSES)
Taxes 18,251,794 17,650,741
Permit and inspection fees 2,648,708 2,592,137
Interest earnings 2,573,964 1,223,349
Interest expense (1,025,006) (1,230,680)
Other income(expense),net 1,424,520 1,075,838
Total nonoperating revenues(expenses),net 23,873,980 21,311,385
INCOME BEFORE CAPITAL CONTRIBUTIONS 36,273,222 4,126,742
CAPITAL CONTRIBUTIONS
City of Concord contributions to capital costs(Note 8) 7,973,516 6,364,725
Customer contributions to capital cost(SSC) 28,588,625 14,060,789
Contributed sewer lines 2,179,641 2,003,614
Capital contributions-connection fees 8,145,068 9,331,420
Total capital contributions 46,886,850 31,760,548
CHANGE IN NET POSITION 83,160,072 35,887,290
NET POSITION,BEGINNING OF YEAR 620,971,490 626,637,016
Prior period adjustment for implementation of GASB Statement 75 - (41,552,816)
NET POSITION,END OF YEAR $704,131,562 $620,971,490
See accompanying notes to financial statements
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CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30,2019 AND 2018
2019 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $83,782,738 $89,703,121
Payments to suppliers (43,260,212) (41,555,023)
Payments to employees and related benefits (40,179,456) (41,035,510)
Net cash provided by operating activities 343,070 7,112,588
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Receipt of taxes 18,251,794 17,650,741
Inspection/permit fees and other non-operating income 4,073,228 3,667,975
Net cash provided by noncapital financing activities 22,325,022 21,318,716
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contributions 36,562,141 20,425,514
Connection fees 8,145,068 9,331,420
Acquisition and construction of capital assets (43,794,305) (39,507,801)
Interest paid on long-term debt (1,270,831) (1,254,730)
Principal payments on long-term debt (7,288,369) (2,587,377)
Net cash used for capital and related financing activities (7,646,296) (13,592,974)
CASH FLOWS FROM INVESTING ACTIVITIES
Redemption of investments 98,856,450 72,075,151
Acquisition of investments (113,000,000) (67,000,000)
Interest received 2,673,348 1,138,630
Net csh provided by investing activities (11,470,202) 6,213,781
NET INCREASE(DECREASE)IN CASH 3,551,594 21,052,111
Cash,beginning of year 62,635,140 41,583,029
Cash,end of year $66,186,734 $62,635,140
(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 30,2019 AND 2018
2019 2018
Reconciliation of operating(loss)to net cash provided by
operating activities:
Operating income(losses) $12,399,242 ($17,184,643)
Adjustments to reconcile operating losses to cash
flows from operating activities:
Depreciation 20,983,353 21,561,704
Changes in assets and liabilities:
Receivables,net (1,895,428) (2,793,314)
Parts and supplies 59,057 (155,290)
Prepaid expenses 1,198,748 859,706
Net OPEB asset - 3,652,571
Accounts payable and accrued expenses 292,008 756,605
Accrued payroll and related expenses 401,726 75,746
Refundable deposits (64,035) 13,470
Claims 275,567
Net pension liability (2,928,146) (4,441,205)
Net OPEB liability (30,379,022) 4,767,238
Net cash provided(used)by operating activities $343,070 $7,112,588
SCHEDULE OF NON CASH ACTIVITY
Change in fair value of investments $2,673,348 $1,138,630
Capital asset donations 2,179,641 2,003,614
Total non cash activity $4,852,989 $3,142,244
CASH AND CASH EQUIVALENTS,AS PRESENTED ON
STATEMENT OF NET POSITION:
Unrestricted cash and cash equivalents $57,648,783 $57,137,987
Restricted cash and cash equivalents 8,537,951 5,497,153
Total cash and cash equivalents at end of year $66,186,734 $62,635,140
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 30,2019 AND 2018
2019 2018
ASSETS
Investments with Trustees:
Cash equivalents(Note 2) $1,570,229 $1,635,346
Equity securities 17,716,355 15,961,335
Equity mutual funds 46,639,520 41,999,998
Total investments 65,926,104 59,596,679
Total Assets $65,926,104 $59,596,679
NET POSITION
Net position held in trust for OPEB benefits $65,926,104 $59,596,679
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 30,2019 AND 2018
2019 2018
ADDITIONS
Contributions:
District $1,582,800 $3,946,500
Total contributions 1,582,800 3,946,500
Investment income:
Net appreciation in fair value of investments 4,920,923 2,500,297
Interest,dividends and other 959,972
Less:investment expenses (174,298) (138,457)
Total net investment income 4,746,625 3,321,812
Total additions 6,329,425 7,268,312
Change in net position 6,329,425 7,268,312
NET POSITION
Beginning of year 59,596,679 52,328,367
End of year $65,926,104 $59,596,679
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 30,2019 and 2018
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
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 30,2019 and 2018
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.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2019 and 2018
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, 2019 and 2018 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 30,2019 and 2018
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 30,2019 and 2018
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 (one employee hired prior
to this date remains on the plan). 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 time
may be applied towards pension service time and/or cashed out upon retirement.
The changes in compensated absences were as follows for fiscal years ended June 30:
2019 2018
Beginning Balance $4,645,877 $4,570,131
Additions 661,215 326,791
Payments (259,489) (251,045)
Ending Balance $5,047,603 $4,645,877
Current Portion $504,700 $464,500
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 30,2019 and 2018
NOTE 1 —DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
M. Implementation of Governmental Accounting Standards Board(GASB)Pronouncements
GASB Statement No. 83, Certain Asset Retirement Obligations (GASB Statement No. 83),
addresses accounting and financial reporting for certain assets retirement obligations (AROs). An
ARO is a legally enforceable liability associated with the retirement of a tangible capital asset.
GASB Statement No. 83 statement requires the current value of a government's AROs to
annually be adjusted for the effects of general inflation or deflation, and relevant factors that may
significantly change the estimated asset retirement outlays. This statement also requires
disclosure of information about the nature of a government's AROs, the methods and
assumptions used for the estimates of the liabilities, and the estimated remaining useful life of the
associated tangible capital assets. GASB Statement No. 83 is effective for the District's fiscal
year ending June 30,2019. This Statement had no significant effect on the financial statements.
GASB Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings
and Direct Placements(GASB Statement No. 88), to improve the information that is disclosed in
noted to government financial statements related to debt, including direct borrowings and direct
placements. It also clarifies which liabilities governments should include when disclosing
information related to debt. It requires that additional essential information related to debt be
disclosed in noted to financial statements, including unused lines of credit; assets pledged as
collateral for the debt; and terms specified in debt agreements related to significant events of
default with finance-related consequences, significant termination events with finance-related
consequences, and significant subjective acceleration clauses. This statement had no significant
effect on the financial statements.
N. Reclassification
For the year ended June 30,2019,certain classifications have been changed to improve financial
statement presentation. For comparative purposes,prior year balances have been reclassified to
conform with the fiscal year 2019 presentation.
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:
2019 2018
Cash and cash equivalents $57,648,783 $57,137,987
Short term investments 53,000,000 34,000,000
Restricted cash and cash equivalents 117,135 100,000
Restricted investments - 4,856,450
Total District Cash and Investments 110,765,918 96,094,437
Cash and investments held with Pension trust 8,420,816 5,397,153
Cash and investments held with OPEB trust 65,926,104 59,596,679
Total Cash and Investments $185,112,838 $161,088,269
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2019 and 2018
NOTE 2—CASH AND INVESTMENTS(Continued)
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.
Investments purchases and sales are coordinated by the District's Treasurer, Contra Costa
County, at the request of the District.
C. General 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 Maxirmtm 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 200/6 100/o 100/. A
Negotiable Certificates of Deposit 5 years 300/. 300/a 30% AA
Banker's Acceptances 180 401% 40% 5% N/A
Commercial Paper(1) 270 25% 100/o 5% A-1
Medium Term Notes 5years 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 LAIR
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2019 and 2018
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 30,2019:
2019
Investment Type Level 1 Level Total
Investments Reported at Fair Value:
Treasury Bill $13,000,000 $13,000,000
U.S.Federal Agency Securities-FHLB $30,000,000 30,000,000
U.S.Federal Agency Securities-FHLMC 10,000,000 10,000,000
Total Investments $13,000,000 $40,000,000 53,000,000
Investments lrempt from Fair Value Hierarchy:
California Local Agency Investment Fund 43,200,000
Total Investments 96,200,000
Cash and investments held with Pension trust 8,420,816
Cash and investments held with OPEB trust 65,926,104
Cash in bank 14,565,918
Total Cash and Investments $185,112,838
U.S. Treasury Notes totaling $13 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 totaling $40 million 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 30,2019 and 2018
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 30,2018:
2018
Investment Type Level 2 Total
Inves tments Reported at Fair Value:
U.S.Federal Agency Securities -FHLB $19,000,000 $19,000,000
Commercial Paper-General Electric 7,500,000 7,500,000
Commercial Paper-Mitsubishi UFG Union Bank 2,500,000 2,500,000
Commercial Paper-Chevron 5,000,000 5,000,000
Total Investments $34,000,000 34,000,000
Investments Measured at Cost:
Certificates of Deposit-Non-Negotiable 4,856,450
Investments&empt from Fair Value Hierarchy:
California Local Agency Investment Fund 52,000,000
Total Investments 90,856,450
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 $161,088,269
U.S. Federal Agency Securities and Commercial paper totaling to $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.
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 30,2019 and 2018
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:
2019
12 Months
Investment Type or less Maturity
United States Treasury Bill $8,000,000 8/29/19
United States Treasury Bill 5,000,000 9/19/19
U.S Federal Agency Securities -FHLB 5,000,000 7/22/19
U.S Federal Agency Securities -FHLB 10,000,000 7/23/19
U.S Federal Agency Securities -FHLB 5,000,000 10/1/19
U.S Federal Agency Securities -FHLB 5,000,000 11/18/19
U.S Federal Agency Securities -FHLB 5,000,000 12/11/19
U.S.Federal Agency Securities-FHLMC 5,000,000 7/23/19
U.S.Federal Agency Securities-FHLMC 5,000,000 11/12/19
California Local Agency Investment Fund 43,200,000
Total Investments 96,200,000
Cash and investments held with Pension trust 8,420,816
Cash and investments held with OPEB trust 65,926,104
Cash in bank 14,565,918
Total Cash and Investments $185,112,838
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 UFGUnion 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 S4,856,450
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2019 and 2018
NOTE 2—CASH AND INVESTMENTS (Continued)
Investment 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,
2019 and 2018,these investments matured in an average of 173 and 193 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 mounts 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
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.
Totals
Investment Type 2019 2018
Rated P-1:
U.S.Federal Agency Securities -FHLB $30,000,000 $19,000,000
U.S.Federal Agency Securities -FHLMC 10,000,000
Commercial Paper-General Electric 7,500,000
Commercial Paper-Mitsubishi UFGUnion Bank 2,500,000
Commercial Paper-Chevron 5,000,000
Total Rated Investments 40,000,000 34,000,000
Not rated:
Certificates of Deposit-non-negotiable 4,856,450
California Local Agency Investment Fund 43,200,000 52,000,000
U.S.Treasury Notes 13,000,000
Cash and investments held with Pension trust 8,420,816 5,397,153
Cash and investments held with OPEB trust 65,926,104 59,596,679
Cash in Bank 14,565,918 5,237,987
Total Cash and Investments $185,112,838 $161,088,269
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2019 and 2018
NOTE 2—CASH AND INVESTMENTS(Continued)
G. Custodial Credit Risk-Investments
Custodial risk for investments is the risk that, in the event of the failure of the counterparty (e.g.
the broker-dealer) to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The California
Government Code does not contain legal or policy requirements that would limit the exposure to
custodial credit risk. The District's policy is to use the services of the Treasurer's Office of the
County of Contra Costa, which will transact the District's investment decisions in compliance
with the requirements of the District's policy. The County Treasurer's Office will execute the
District's investments through such broker-dealers and financial institutions as are approved by
the County Treasurer, and through the State Treasurer's Office for investment in the Local
Agency Investment Fund.
NOTE 3—ACCOUNTS RECEIVABLE
Accounts receivable for the years ended June 30 are comprised of the following:
2019 2018
City of Concord(see Note 8) $23,178,808 $21,338,348
Household Hazardous Waste Partners 831,653 821,874
All Other 725,601 801,578
Total Accounts Receivable $24,736,062 $22,961,800
Employee Computer Loans Receivable:
The District provides loans to its employees for the purchase of personal computers. These loans
are payable through payroll deductions of $100 until the loan is paid off. The interest rate
associated with the loan is based of the most current Local Agency Investment Fund(LAIF)rate.
The maximum amount each employee may borrow is $2,000. The loans receivable balances were
as follows as of June 30:
2019 2018
Employee Computer Loans $10,614 $10,294
Additions 18,141 14,954
Payments (13,019) (14,634)
Long-term Portion $15,736 $10,614
30
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2019 and 2018
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, 2019 and
2018 was $394,662 and$162,781,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,
2019 and 2018 was$820,003 and$946,454,respectively.
The total receivable balance at June 30, 2019 and 2018 for CAD and AVAD was $1,214,665 and
$1,109,235,respectively,and is shown as a non-current asset on the Statement of Net Position.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2019 and 2018
NOTE 5—CAPITAL ASSETS
Property, plant and equipment, and construction in progress are summarized below for the year
ended June 30,2019:
Balance at Transfers& Balance at
June 30,2018 Additions Retirements Adjustments June 30,2019
Capital assets not being depreciated:
Land $17,320,570 $17,320,570
Easements(intangible) 4,949,507 4,949,507
Construction in Progress 35,820,635 $43,794,305 ($33,697,259) 45,917,681
Total nondepreciated assets 58,090,712 43,794,305 (33,697,259) 68,187,758
Capital assets being depreciated:
Sewage collection system 379,247,498 ($1,000) 14,838,354 394,084,852
Contributed sewer lines 159,795,333 2,179,641 369,807 162,344,781
Outfall sewers 11,371,574 11,371,574
Sewage treatment plant 341,675,108 (775,000) 14,076,185 354,976,293
Recycled water infrastructure 20,292,366 20,292,366
Pumping stations 57,327,020 57,327,020
Buildings 44,238,508 140,971 44,379,479
Furniture and equipment 13,841,424 (49,736) 788,250 14,579,938
Motor vehicles 7,695,424 (322,498) 118,034 7,490,960
Enterprise software 3,365,658 3,365,658
Total depreciated assets 1,035,484,255 2,179,641 (1,148,234) 33,697,259 1,070,212,921
Less accumulated depreciation:
Sewage collection system 73,525,809 5,233,352 (1,000) 78,758,161
Contributed sewer lines 61,491,489 2,160,843 63,652,332
Outfall sewers 3,768,376 151,394 3,919,770
Sewage treatment plant 228,809,775 7,669,380 (775,000) 235,704,155
Recycled water infrastructure 9,680,325 675,337 10,355,662
Pumping stations 35,288,443 2,020,755 37,309,198
Buildings 14,154,661 1,273,070 15,427,731
Furniture and equipment 9,236,015 1,229,242 (49,736) 10,415,521
Motor vehicles 5,217,732 401,697 (322,498) 5,296,931
Enterprise software 168,283 168,283
Total accumulated depreciation 441,172,625 20,983,353 (1,148,234) 461,007,744
Total capital assets being
depreciated,net 594,311,630 (18,803,712) 33,697,259 609,205,177
Capital assets,net $652,402,342 $24,990,593 $677,392,935
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2019 and 2018
NOTE 5—CAPITAL ASSETS(Continued)
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
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2019 and 2018
NOTE 6—LONG-TERM DEBT
A. Summary of Activity
The changes in the District's long-term obligations during the year ended June 30,2019 consisted
of the following:
Original Amount
Issue Balance Balance due within
Amount June 30,2018 Additions Retirements June 30,2019 one year
2018 Series A Wastewater Revenue
Refunding Bonds
1.39-2.34%,due 9/1/2029 $15,135,000 $15,135,000 $15,135,000
2018 Series B Wastewater Revenue
Refunding Bonds
2.62-3.12%,due 9/1/2023 4,315,000 4,315,000 4,315,000 $2,145,000
2009 Series A Certificates of Participation
Wastewater Revenue
3.45-3.78°/x,due 9/1/2029 19,635,000 $19,635,000 $19,635,000
2009 Series B Certificates of Participation
Wastewater Revenue
.40-3.79%,due 9/1/2029 34,490,000 9,460,000 9,460,000
Total long-term debt 29,095,000 19,450,000 29,095,000 19,450,000 $2,145,000
Add:Unamortized premium
Wastewater Revneue Bonds 2,777,190 420,559 2,356,631
Total Long-Term Debt,net 29,095,000 $22,227,190 $29,515,559 21,806,631 $2,145,000
Less Current Portion (2,480,000) (2,145,000)
Long Tenn Portion $26,615,000 $19,661,631
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
3.45-3.78%,due 9/1/2029 $19,635,000 $19,635,000 $19,635,000
2009 Series B Certificates of Participation
Wastewater Revenue
.40-3.79%,due 9/1/2029 34,490,000 11,865,000 $2,405,000 9,460,000 $2,480,000
1999 State Water Resources Control Board
Water Reclamation Loan
2.60%,due 3/31/2018 2,916,872 182,377 182,377
Total Long-Term Debt 31,682,377 $2,587,377 29,095,000 $2,480,000
Less current portion (2,587,377) (2,480,000)
$29,095,000 $26,615,000
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2019 and 2018
NOTE 6—LONG-TERM DEBT (Continued)
B. Debt Service Requirements
The 2018 Wastewater Revenue Refunding debt service requirements are as follows:
Fiscal Year
Ending Series A Series B Total
June 30, Principal Interest Principal Interest Principal Interest
2020 $744,500 $2,145,000 $92,915 $2,145,000 $837,415
2021 $1,225,000 720,000 515,000 57,605 1,740,000 777,605
2022 1,270,000 663,750 535,000 42,477 1,805,000 706,227
2023 1,335,000 598,625 550,000 26,172 1,885,000 624,797
2024 1,395,000 530,375 570,000 8,892 1,965,000 539,267
2025-2029 8,060,000 1,507,500 8,060,000 1,507,500
2030 1,850,000 46,250 1,850,000 46,250
Total $15,135,000 $4,811,000 $4,315,000 $228,061 $19,450,000 $5,039,061
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 $19,635,000 and $34,490,000, respectively. The Series A COP are federally taxable "Build
America Bonds" which have a direct 35% interest rate subsidy from the Federal Government.
Yields on this series range from 3.45%to 3.78%, net of the subsidy. The Series B COP were 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 were 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 would fully amortized as of
September 1, 2029. As of June 30, 2019,the outstanding amount of$29,095,000 in principal and
$9,528,717 of interest was fully refunded by the 2018 Wastewater Revenue Refunding Bonds,
Series A&B.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2019 and 2018
NOTE 6—LONG-TERM DEBT(Continued)
D. 2018 Series A and B Wastewater Revenue Refunding Bonds
On September 13, 2018 the District issued two Wastewater Revenue Refunding Bonds (Bonds).
The 2018 Wastewater Revenue Refunding Bonds, Series A (tax-exempt) and B (federally
taxable) were issued for $15,135,000 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. The outstanding bonds from direct borrowings related to business-type
activities of$19,450,000 contain a provision that in an event of default, the U.S. Bank National
Association (Trustee) has the right to accelerate the total unpaid principal amounts of the bonds.
The official statement contains an event of default clause that changes the timing of the
repayments of outstanding amounts to become immediately due if the District is unbale to make
payment. Principal payments begin annually on September 1, 2020 and 2021 for the Series B and
A Bonds, respectively, with semi-annual interest payments due on September 1 and March 1 of
each year. Yields range from 1.39% to 2.34% and 2.62% to 3.12% for the Series A and Series B
Bonds,respectively.
The refunding resulted in an overall debt service savings of$7,455,312. The net present value of
the debt service savings is called an economic gain and amounted to $2,603,897.
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.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2019 and 2018
NOTE 7—RISK MANAGEMENT (Continued)
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 $602,045,193 $250,000
Crime National Union Fire Ins.Company 1,000,000 2,500
Liability:
Fiduciary Liability Insurance RLI Insurance Company 1,000,000 -
Pollution-General Liability Aspen Specialty Ins.Company 10,000,000 50,000
Commercial Environment Excess Aspen Specialty Ins.Company 1,000,000 5,000
Special Excess Liability Coverage-ANML Security National Ins.Company 10,000,000 500,000
Excess Following Form Liability Policy Allied World Assurance Company(U.S),1 5,000,000 10,000,000
Employment Practice Liability Hiscox Insurance Company(Bermuda)Ltd. 1,000,000 35,000
Workers'Compensation:
Excess Workers'Compensation Safety National Casualty Corporation Statutory -
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, 2019 to be
$1,157,797.
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, 2019, 2018, and 2017, settlements have not exceeded insurance
coverage. Changes in the District's estimated liability for retained losses are summarized as
follows as of June 30:
2019 2018 2017
Beginning balance $882,230 $807,079 $1,000,000
Provisions for claims incurred in the current year
and changes in the liability for retained-
losses incurred in prior years 623,961 243,897 (127,214)
Claims paid and/or adjustments (348,394) (168,746) (65,707)
Ending balance $1,157,797 $882,230 $807,079
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2019 and 2018
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 capital costs expended. Service charges and contributions to capital costs from the City
totaled $15,205,292 and $7,973,516 respectively, for the year ended June 30, 2019, for a total of
$23,178,808. 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.
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, 2018. 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 on their website at www.cecera.org.
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 30,2019,are summarized as follows:
Mscellaneous
Membership date Prior to January 1,2013 On or after January 1,2013
Benefit vesting schedule 10 years service 5 years service
Benefit payments monthly for life monthly for life
Leave cash out pensionable? Yes No
Benefit%per year of service 2% 2%
Final pensionable salary formula Highest 12 consecutive Annual average of highest
months 36 consecutive months
Annual benefit cap Hired before 1/1/1996-None $145,666
Hired 1/1/1996-12/31/2012-
$275,000
Minimum Retirement age(with benefit reductions) 50 52
Required employee contribution rates 11.96% 11.20%
Required employer contribution rates 51.83% 45.67%
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2019 and 2018
NOTE 9—PENSION PLANS(Continued)
Contributions—The Plan requires employees to pay a portion of the basic retirement benefit and
a portion of future COL costs. For the year ended June 30, 2019, the District's contributions to
the Plan were $17,282,356.
Pension Liabilities,Pension Expenses and Deferred Outflows/Inflows of Resources Related to
Pensions-The District reported net pension liabilities for its proportionate share of the net
pension liability of the Plan as follows as of June 30:
Proportionate Share of Net Pension Liability
2019 2018
Miscellaneous $90,430,104 $63,806,000
Total Net Pension Liability $90,430,104 $63,806,000
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, 2018, 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, 2017 rolled forward to December 31, 2018 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, 2017, 2018, and
2019 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
2017 6.273% $87,847,116 $31,584,169 278.14% 76.44%
2018 7.863% 63,806,000 33,306,938 191.57% 83.58%
2019 6.332% 90,430,104 33,793,159 267.60% 77.86%
For the year ended June 30, 2019, the District recognized pension expense of$14,899,558. At
June 30, 2019, 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 $8,840,759
Differences between expected and actual experience 2,612,669 $1,965,766
Changes of assumptions or other inputs 530,124 4,606,404
Change in proportion and differences between employer
contributions and proportionate share of contributions 7,636,777 17,164,806
Net difference between projected and actual earnings
on pension plan investments 27,095,284
Total $46,715,613 $23,736,976
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2019 and 2018
NOTE 9—PENSION PLANS(Continued)
The $8,840,759 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 30,2020.
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
2020 $5,124,501
2021 1,403,504
2022 475,439
2023 7,134,434
Total $14,137,878
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 $8,533,670
Differences between expected and actual experience $6,290,561
Changes of assumptions or other inputs 1,924,151 782
Change in proportion and differences between employer
contributions and proportionate share of contributions 11,045,200 5,334,713
Net difference between projected and actual earnings
on pension plan investments 16,450,578
Total $21,503,021 $28,076,634
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2019 and 2018
NOTE 9—PENSION PLANS(Continued)
Actuarial Assumptions — The total pension liabilities in the December 31, 2017 actuarial
valuations were determined using the following actuarial assumptions:
Miscellaneous
Valuation Date December 31,2017
Measurement Date December 31,2018
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 3.75%- 15.25%
Cost of Living Adjustments 2.75%
Investment Rate of Return 7.00%
Mortality RP-2014 Healthy Annuitant Mortality Table
(1) Plus"across the board"real salary increases of 0.5%per year
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 31,2018.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2019 and 2018
NOTE 9—PENSION PLANS(Continued)
The long-term expected rate of return on pension plan investments was determined in 2019 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
Expected Real
Target Rate of
Asset Class Allocation Return
Large Cap U.S.Equity 5% 5.44%
Developed International Equity 13% 6.54%
Emerging Markets Equity 11% 8.73%
Short-Term Govt/Credit 23% 0.84%
U.S.Treasury 3% 1.05%
Private Equity 8% 9.27%
Risk Diversifying Strategies 7% 3.53%
Global Infrastructure 3% 7.90%
Private Credit 12% 5.80%
REIT 1% 6.80%
Value add Real Estate 5% 8.80%
Opportunistic Real Estate 4% 12.00%
Risk Parity 5% 5.80%
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 $145,193,990
Current Discount Rate 7.00%
Net Pension Liability $90,430,104
1%Increase 8.00%
Net Pension Liability $45,564,431
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2019 and 2018
NOTE 9—PENSION PLANS(Continued)
B. 457(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 (b). 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 (b) 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 $2,123,939 and $2,034,759 to
the Plan during the years ended June 30, 2019 and 2018,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 30,2019 and 2018
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 Terms—Membership in the plan consisted of the following at the
measurement date of June 30,2019:
Active employees 274
Inactive employees or beneficiaries currently
receiving benefit payments 268
Inactive employees entitled to but not yet
receiving benefit payments 3
Total 545
B. Net OPEB Liability
Actuarial Methods and Assumptions—The District's net OPEB liability was measured as of June
30,2019 and the total OPEB liability used to calculate the net OPEB liability was determined by an
actuarial valuation dated July 1, 2018 that was rolled forward using standard update procedures to
determine the $77,838,865 total OPEB liability as of June 30, 2019, based on the following
actuarial methods and assumptions:
Actuarial As sumptions
Valuation Date July 1,2018
Measurement Date June 30,2019
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 6.25%at June 30,2018
Discount Rate 5.75%at June 30,2019
General Inflation 2.75%per annum
Mortality,Disability,Termination, CCCERA 2012-2014 Experience Study
Mortality Improvement Mortality improvement projected generationally with Scale MP-15
Medical Trend Non-Medicare-7.5%for 2019/20,decreasing to 4.0%for 2075/76 and later
Medicare-6.5%for 2019/20,decreasing to 4.0%for 2075/76 and later
Dental Trend 3.75%annually
Healthcare Participation for future 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 30,2019 and 2018
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, 2018
valuation were based on the results of a July 1, 2018 actuarial experience study for the period of
July 1,2018 to June 30, 2019.
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 5.75%. 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 30,2019 and 2018
NOTE 10—POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
C. Changes in Net OPEB Liability
The changes in the net OPEB liability follows:
Increase (Decrease)
Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (a)-(b)
Balance at June 30,2018 $105,947,197 $59,596,743 $46,350,454
Changes Recognized for the Measurement Period:
Service Cost 2,447,310 2,447,310
Interest on the total OPEB liability 6,596,612 6,596,612
Changes in benefit terms (27,603,524) (27,603,524)
Differences between expected and actual experience (7,346,935) (7,346,935)
Changes of assumptions 3,495,645 3,495,645
Contributions from the employer 7,280,240 (7,280,240)
Contributions from the employee
Net investment income 4,920,923 (4,920,923)
Benefit payments (5,697,440) (5,697,440)
Administrative expenses (174,362) 174,362
Net changes (28,108,332) 6,329,361 (34,437,693)
Balance at June 30,2019 $77,838,865 $65,926,104 $11,912,761
D. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost
Trend Rates
The following presents the net OPEB liability of the District at June 30, 2019, 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(4.75%)or 1-percentage-point higher(6.75%)than the current discount rate:
Net OPEB Liability/(Asset)
Discount Rate-1% Discount Rate Discount Rate+1%
(4.75%) (5.75%) (6.75%)
$21,919,793 $11,912,761 $3,680,123
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
$2,521,940 $11,912,761 $23,463,943
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2019 and 2018
NOTE 10—POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
E. OPEB Expense and Deferred OutflowsJnflows of Resources Related to OPEB
For the year ended June 30, 2019, the District recognized negative OPEB expense of$23,098,782.
At June 30, 2019, 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 $5,960,721
Changes of assumptions $2,836,089
Net differences between projected and actual earnings on 903,639
plan investments
Total $2,836,089 $6,864,360
Amounts reported as deferred outflows and (inflows) of resources related to OPEB will be
recognized as part of OPEB expense as follows:
Year Annual
Ended June 30 Amortization
2020 ($950,668)
2021 (950,668)
2022 (950,668)
2023 (958,267)
2024 (218,000)
Total ($4,028,271)
OPEB Liabilities, OPEB Expenses and Deferred Outflows/Inflows of Resources Related to
OPEB — 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, 2019 and 2018, the annual money-weighted rate of return on
investments,net of investment expense,were 7.20%and 5.96%. The money-weighted rate of return
expresses investment performance net of investment expense, adjusted for the changing amounts
actually invested.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2019 and 2018
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.
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 30,2019:
Fis cal Year Office
Ending June 30, Equipment Facilities Total
2020 $342,106 $130,873 $472,979
Total $342,106 $130,873 $472,979
Total rental expense for both the fiscal years ended June 30,2019 and 2018 was $313,492.
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$29,402,558 and$17,997,738 as of June 30,2019 and 2018,respectively.
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REQUIRED SUPPLEMENTARY INFORMATION
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CENTRAL CONTRA COSTA SANITARY DISTRICT
Cost-Sharing Multiple Employer Defined Benefit Retirement Plan
As of fiscal year ending June 30,2019
PROPORTIONATE SHARE OF NET PENSION LIABILITY
Last 10 Fiscal Years'
December 31,
Measurement date 2018 2017 2016 2015 2014
Proportion of the net pension
liability 6.33% 7.86% 6.27% 6.09% 7.49%
Proportionate share of the net
pension liability $ 90,430,104 $ 63,806,000 $ 87,847,116 $ 91,746,888 $ 89,535,510
Covered Payrod $ 37,088,954 $ 36,405,155 $ 33,825,261 $ 31,149,979 $ 29,647,993
Proportionate share of the net
pension liability as a percentage
of covered payroll 243.82% 175.27% 259.71% 294.53% 302.00%
Fiduciary net position as a
percentage of the total pension
liability 77.86% 83.58% 76.44% 74.14% 73.86%
1 The fiscal year ending June 30,2015 was the first year of implementation. Accordingly only five years are shown.
Z Covered payroll represents compensation earnable and pensionable compensation for the measurement period ended
December 31st. Only compensation earnable and pensionable compensation that would possibly go into the
determination of retirement benefits are included.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
Cost-Sharing Multiple Employer Defined Benefit Retirement Plan
As of fiscal year ending June 30,2019
SCHEDULE OF CONTRIBUTIONS
Last 10 Years*
2019 2018 2017 2016 2015
Actuarially determined contribution $ 17,520,615 $ 17,880,152 $ 18,043,391 $ 22,752,611 $ 24,451,234
Contributions in relation to the actuarially determined
contributions 17,520,615 17,880,152 18,043,391 22,752,611 24,451,234
Contribution deficiency(excess) - - - - -
Covered payroll $ 38,479,260 $ 36,638,935 $ 35,178,106 $ 32,675,243 $ 30,093,339
Contributions as a percentage of covered-employee payroll 45.53% 48.80% 51.29% 69.63% 81.25%
Notes to Schedule
Measurement Date: 12/31/2018
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age
Amortization method Level percentage of payroll,closed
Remaining amortization period 5 years**
Asset valuation method 5-year semi-annually
Inflation 2.75%
Salary increases 3.75%-15.25%
Investment rate ofretum 7.0%,net ofpension 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 five years are shown.
**Remaining balance ofDecember 31,2007 UAAL is amortized over a fixed(decreasing or closed)period
with 5 years remaining as of December 31,2017. 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.
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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 June 30, 2019 June 30,2018 June 30, 2017
Total OPEB Liability
Service Cost $2,447,310 $2,370,276 $2,295,667
Interest 6,596,612 6,396,063 6,203,230
Changes in benefit terms (27,603,524)
Differences between expected and actual experience (7,346,935)
Changes of assumptions 3,495,645
Benefit payments (5,697,440) (5,571,750) (5,404,627)
Net change in total OPEB liability (28,108,332) 3,194,589 3,094,270
Total OPEB liability-beginning 105,947,197 102,752,608 99,658,338
Total OPEB liability-ending(a) $77,838,865 $105,947,197 $102,752,608
Plan fiduciary net position
Contributions-employer $7,280,240 $9,649,750 $10,433,327
Contributions-employee
Net investment income 4,920,923 3,354,822 4,735,576
Administrative expense (174,362) (164,446) (5,404,627)
Benefit payments (5,697,440) (5,571,750) (139,063)
Net change in plan fiduciary net position 6,329,361 7,268,376 9,625,213
Plan fiduciary net position-beginning 59,596,743 52,328,367 42,703,154
Plan fiduciary net position-ending(b) $65,926,104 $59,596,743 $52,328,367
Net OPEB liability-ending(a)-(b) $11,912,761 $46,350,454 $50,424,241
Plan fiduciary net position as a percentage of the total OPEB liability 84.70% 56.25% 50.93%
Covered payroll $38,479,260 $36,638,935 $35,178,106
Net OPEB liability as a percentage of covered-employee payroll 30.96% 126.51% 143.34%
Notes to schedule:
*Fiscal year 2017 was the first year of implementation,therefore only three years are shown.
CENTRAL CONTRA COSTA SANITARY DISTRICT
POST-RETIREMENT HEALTH CARE DEFINED BENEFIT PLAN
SCHEDULE OF INVESTMENT RETURN RATE
2019 2018 2017
Annual money weighted rate of return,
net of investment expense 7.20% 5.96% 6.25%
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SCHEDULE OF CONTRIBUTIONS
Single Employer
Last 10 fiscal years*
Fiscal Year Ended June 30, 2019 2018 2017
Actuarially determined contribution $7,524,000 $7,866,000 $7,866,000
Contributions in relation to the
actuarially determined contribution 7,280,240 10,433,327 10,433,327
Contribution deficiency(excess) $243,760 ($2,567,327) ($2,567,327)
Covered payroll $38,479,260 $36,638,935 $35,178,106
Contributions as a percentage of
covered payroll 18.92% 28.48% 29.66%
Notes to Schedule
Methods and assumptions used to determine contribution rates:
Valuation Date 7/1/2016
Actuarial Cost Method: Entry Age Normal,Level Dollar
Amortization Method: Level dollar over closed 17 year period
Asset Valuation Method: Investment gains and losses spread over 5-year rolling
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 3.75%
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 three years are shown.
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SUPPLEMENTARY INFORMATION
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CENTRAL CONTRA COSTA SANITARY DISTRICT
COMBINING SCHEDULE OF NET POSITION
ENTERPRISE SUB-FUNDS
JUNE 30,2019
Running Sewer Self Debt
Expense Construction Insurance Service Elimination Total
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $27,150,115 $23,115,187 $7,383,481 $57,648,783
Short term investments 20,000,000 33,000,000 53,000,000
Accounts receivable 16,696,326 8,039,736 24,736,062
Employee computer loans receivable 15,736 15,736
Parts and supplies 2,185,998 2,185,998
Prepaid expenses 1,401,010 1,401,010
Total current assets 67,449,185 64,154,923 7,383,481 138,987,589
NON-CURRENT ASSETS:
Restricted cash and equivalents 8,520,816 $17,135 8,537,951
Assessment Districts receivable 1,214,665 1,214,665
CAPITAL ASSETS
Nondepreciable 68,187,758 68,187,758
Depreciable,net of accumulated depreciation 609,205,177 609,205,177
Total capital assets,net 677,392,935 677,392,935
Total non-current assets 685,913,751 1,214,665 17,135 687,145,551
TOTAL ASSETS 753,362,936 65,369,588 7,383,481 17,135 826,133,140
DEFERRED OUTFLOWS OF RESOURCES
Pension related 46,715,613 46,715,613
OPEB related 2,836,089 2,836,089
Total deferred outflows 49,551,702 49,551,702
LIABILITIES
CURRENT LIABILITIES:
Accounts payable and accrued expenses 3,126,190 6,783,894 46,662 9,956,746
Interest payable 288,505 288,505
Refunding Water Revenue Bonds-current portion 2,145,000 2,145,000
Accrued compensated absences-current portion 504,700 504,700
Liability for uninsured claims 1,157,797 1,157,797
Refundable deposits 181,011 170,786 351,797
Total current liabilities 3,811,901 6,954,680 1,204,459 2,433,505 14,404,545
NON-CURRENT LIABILITIES:
Refunding Water Revenue Bonds,noncurrent portion 19,661,631 19,661,631
Accrued compensated absences,noncurrent portion 4,542,903 4,542,903
Net pension liability 90,430,104 90,430,104
Net OPEB liability 11,912,761 11,912,761
Total noncurrent liabilities 106,885,768 19,661,631 126,547,399
TOTAL LIABILITIES 110,697,669 6,954,680 1,204,459 22,095,136 140,951,944
DEFERRED INFLOWS OF RESOURCES
Pension related 23,736,976 23,736,976
OPEB related 6,864,360 6,864,360
Total deferred inflows 30,601,336 30,601,336
NET POSITION
Net investment in capital assets 677,392,935 (21,806,631) 655,586,304
Restricted for debt service (271,370) (271,370)
Unrestricted (15,777,302) 58,414,908 6,179,022 48,816,628
TOTAL NET POSITION $661,615,633 $58,414,908 $6,179,022 ($22,078,001) $704,131,562
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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 30,2019
Running Sewer Self Debt
Expense Construction Insurance Service Elimination Total
OPERATING REVENUES
Sewer service charges(SSC) $68,656,908 $68,656,908
Service charges-City of Concord 15,205,292 15,205,292
Other services charges 1,126,239 1,126,239
Miscellaneous charges 689,727 689,727
Total operating revenues 85,678,166 85,678,166
OPERATING EXPENSES
Sewage collection and pumping stations 17,213,848 17,213,848
Sewage treatment 26,342,221 26,342,221
Engineering 16,334,241 16,334,241
Recycled water 1,189,921 1,189,921
Administrative and general 24,262,569 $1,125,404 ($865,465) 24,522,508
Pension expense (2,928,146) (2,928,146)
OPEB expense (30,379,022) (30,379,022)
Depreciation 20,983,353 20,983,353
Total operating expenses 73,018,985 1,125,404 (865,465) 73,278,924
OPERATING INCOME(LOSS) 12,659,181 (1,125,404) 865,465 12,399,242
NONOPERATING REVENUES(EXPENSES)
Taxes $14,749,226 $3,502,568 18,251,794
Permit and inspection fees 2,362,622 286,086 2,648,708
Interest earnings 1,279,132 1,121,528 170,867 2,437 2,573,964
Interest expense (1,025,006) (1,025,006)
Other income(expense),net 1,388,847 35,673 865,465 (865,465) 1,424,520
Total nonoperating revenues 5,030,601 16,192,513 1,036,332 2,479,999 (865,465) 23,873,980
NET INCOME(LOSS)BEFORE CAPITAL 17,689,782 16,192,513 (89,072) 2,479,999 36,273,222
CONTRIBUTIONS AND TRANSFERS
CAPITAL CONTRIBUTIONS AND TRANSFERS
City of Concord contributions to capital costs 7,973,516 7,973,516
Customer contributions to capital cost(SSC) 28,588,625 28,588,625
Contributed sewer lines 2,179,641 2,179,641
Capital contributions-connection fees 8,145,068 8,145,068
Transfers In(Out) 43,387,573 (43,491,116) (11,953) 115,496
Total capital contributions and transfers 45,567,214 1,216,093 (11,953) 115,496 46,886,850
CHANGE IN NET POSITION 63,256,996 17,408,606 (101,025) 2,595,495 83,160,072
NET POSITION,BEGINNING OF YEAR 598,358,637 41,006,302 6,280,047 (24,673,496) 620,971,490
NET POSITION,END OF YEAR $661,615,633 $58,414,908 $6,179,022 ($22,078,001) $704,131,562
57
December 19, 2019 Regular Board Meeting Agenda Packet- Page 179 of 260
Page 78 of 91
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December 19, 2019 Regular Board Meeting Agenda Packet- Page 180
Page 79 of 91
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 - 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 robC-re�brt2@dr9tlf LdwrB9wd Meeting Agenda Packet- Page 181 of 260
Central Contra Costa Sanitary District
Changes in Net Position and Statement of Net Position
Last Ten Fiscal Years
Changes in Net Position 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
Operating Revenues:
Sewer Service Charges(SSC) $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 $68,656,908
City of Concord 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 15,205,292
Other Service Charges 824,022 913,017 915,485 1,076,401 1,035,134 1,006,197 963,014 1,029,500 1,078,594 1,126,239
Miscellaneous Charges 650,876 662,721 929,917 751,880 544,589 593,780 623,659 606,453 619,997 689,727
Total Operating Revenue 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 85,678,166
Operating Expenses:
Salaries&Benefits 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 65,071,382
Chemicals,Utilities&Supplies 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 8,093,144
Professional&Outside Services 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 3,276,763
Hauling,Disposal,Repairs&Maintenance 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 5,755,590
Self-Insurance(net of transfers) (688,859) 119,051 (65,688) 159,961 214,290 496,381 72,486 (300,108) (332,483) 1,039,444
Pension/OPEB Expense - - - - - (3,012,757) (9,778,389) (4,080,558) 1,104,358 (33,307,168)
Depreciation 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 20,983,353
All Other 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 2,366,416
Total Operating Expenses 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 73,278,924
Operating Loss (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) 12,399,242
Non-Operating Revenues(Expenses):
Property Taxes' 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 18,251,794
Connection&Other Fees 776,348 895,825 903,810 1,169,809 1,575,251 1,843,942 2,546,723 2,600,888 2,592,137 2,648,708
Interest Income 570,024 673,990 294,938 405,474 359,288 318,475 562,308 761,838 1,223,349 2,573,964
Interest Expense (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) (1,025,006)
All Other' 12,295 (523,209) 931,660 951,100 932,464 1,828,530 1,195,095 966,244 1,075,838 1,424,520
Total Non-Operating 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 23,873,980
Income Before Contributions and Transfers (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 36,273,222
Customer Contributions- 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 36,562,141
Contributed Sewer Lines 1,840,259 533,616 792,011 939,628 1,462,316 794,218 1,774,168 2,899,042 2,003,614 2,179,641
Capital Contributions-Connection Fees 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 8,145,068
CHANGE IN NET POSITION 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 83,160,072
Total Net Position-Beginning 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
Prior Period Adjustment-GASB 68 and 71 - - - - - (91,692,522) - - - -
Prior Period Adjustment-GASB 75 (41,552,816)
Total Net Position-Ending $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 $704,131,562
Statement of Net Position 2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
Net Investment in Capital Assets $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 $655,586,304
Restricted 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 (271,370)
Unrestricted 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) 48,816,628
Total Net Position $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 $704,131,562
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
December 19, 2019 Regular Board Meeting Agenda Packet- Page 182 of X60
Central Contra Costa Sanitary District
Revenue By Type
Last Ten Fiscal Years
$180,000,000
$160,000,000
$140,000,000
$120,000,000
i $100,000,000
A
o $80,000,000
C
$60,000,000
$40,000,000
$20,000,000
$-
2009-2010 2010-2011 2011-2012 2012.2013 2013-2014 2014-2015 2015-2016 2016.2017 2017.2018 2018-2019
Fiscal Year
GOperating Revenue Mon-Operating Revenue
Operating Revenue
Fiscal Sewer Service City of Other Service Miscellaneous Total
Year Charges" Concord Charges Charges Operating
2009-2010 $48,692,520 $8,664,668 $824,022 $650,876 $58,832,086
2010-2011 49,095,870 9,224,952 913,017 662,721 59,896,560
2011-2012 49,123,848 10,647,389 915,485 929,917 61,616,639
2012-2013 56,770,984 10,483,421 1,076,401 751,880 69,082,686
2013-2014 60,796,421 11,625,864 1,035,134 544,589 74,002,008
2014-2015 70,023,512 12,892,945 1,006,197 593,780 84,516,434
2015-2016 72,233,903 13,913,960 963,014 623,659 87,734,536
2016-2017 73,138,235 13,851,253 1,029,500 606,453 88,625,441
2017-2018 75,824,221 14,973,623 1,078,594 619,997 92,496,435
2018-2019 68,656,908 15,205,292 1,126,239 689,727 85,678,166
Non-Operating Revenue
Fiscal Property Customer Connections All Total Non-Operating
Year Taxes"1 Contributions"2 &Other Fees*3 Interest Other &Contributions
2009-2010 $12,260,123 $8,633,299 $7,854,983 $570,024 $998,211 $30,316,640
2010-2011 12,213,624 5,551,708 4,411,629 673,990 - 22,850,951
2011-2012 12,047,169 9,680,674 6,628,643 294,938 931,660 29,583,084
2012-2013 13,010,477 8,940,775 7,261,338 405,474 951,100 30,569,164
2013-2014 13,093,841 11,948,383 9,799,768 359,288 932,464 36,133,744
2014-2015 14,083,331 7,563,841 8,517,240 318,475 1,828,530 32,311,417
2015-2016 14,835,167 13,765,920 11,090,481 562,308 1,195,095 41,448,971
2016-2017 16,318,874 19,527,147 9,645,228 761,838 966,244 47,219,331
2017-2018 17,650,741 22,429,128 11,923,557 1,223,349 1,075,838 54,302,613
2018-2019 18,251,794 38,741,782 10,793,776 2,573,964 1,424,520 71,785,836
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.
Source:Central Contra Costa Sanitary District Audited Financial Statements
S-2
December 19, 2019 Regular Board Meeting Agenda Packet- Page 183 of 260
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
$60,000,000
$50,000,000
$40,000,000
c $30,000,000
o $20,000,000
$10,000,000
$-
$(10,000,000)
$(20,000,000)
$(30,000,000)
$(40,000,000)
$(50,000,000)
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
Fiscal Year
❑Salaries and Benefits []Chemicals,Utilities&Supplies DProfessional&Outside Services DHauling,Disposal,Repairs&Maintenance
❑Self-Insurance El Depreciation ❑Pension/OPEB Expense* ElAll 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
2009-2010 $39,986,763 $7,973,992 $2,129,552 $3,808,635 $746,612 $20,969,429 $1,223,191 $76,838,174 $2,539,383
2010-2011 41,705,131 7,609,127 2,425,615 3,916,789 1,003,115 20,580,061 1,575,902 78,815,740 2,585,112
2011-2012 45,562,430 8,121,809 4,099,876 4,077,741 810,849 21,190,059 1,612,482 85,475,246 1,919,375
2012-2013 49,811,218 7,401,103 2,836,638 4,239,421 2,380,466 21,596,266 472,630 88,737,742 1,802,084
2013-2014 58,954,453 8,063,310 3,995,861 4,041,356 858,738 21,892,545 1,702,131 99,508,394 1,996,689
2014-2015 66,104,630 7,466,490 3,322,881 4,758,260 1,146,381 22,740,942 ($3,012,757) 1,823,963 104,350,790 1,523,127
2015-2016 63,988,158 7,304,619 4,196,302 5,780,533 1,572,486 22,885,030 (9,778,389) 1,843,778 97,792,517 1,427,641
2016-2017 62,342,392 8,115,004 3,891,224 5,662,086 619,892 22,892,153 (4,080,558) 2,022,592 101,464,785 1,313,398
2017-2018 68,862,484 7,477,602 2,988,280 5,461,011 252,517 21,561,704 1,104,358 1,973,122 109,681,078 1,230,680
2018-2019 65,071,382 8,093,144 3,276,763 5,755,590 1,039,444 20,983,353 (33,307,168) 2,366,416 73,278,924 1,025,006
Informational-not graphed
Source:Central Contra Costa Sanitary District Audited Financial Statements
*Reflects pension/OPEB adjuestment at year-end to comply with the provisions of GASB Statements No.68 and 75. Budgeted pension/OPEB emloyer contributions made during
the year are reported under"Salaries and Benefits".
December 19, 2019 Regular Board Meeting Agenda Packet- Page 184 ot5260
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
2009-2010 $292 $19 $311 $5,298
2010-2011 300 11 311 5,451
2011-2012 302 39 341 5,465
2012-2013 344 27 371 5,797
2013-2014 365 40 405 5,930
2014-2015 416 23 439 5,995
2015-2016 422 49 471 6,005
2016-2017 432 71 503 5,948
2017-2018 447 83 530 6,300
2018-2019 $400 $167 $567 $6,700
Multi-Family Annual Sewer Service Charge (SSC)*1 Pump
Fiscal Year Operations Capital Total Zone Fee*3
2009-2010 $292 $19 $311 $1,651
2010-2011 300 11 311 1,641
2011-2012 302 39 341 1,606
2012-2013 344 27 371 1,625
2013-2014 365 40 405 1,587
2014-2015 416 23 439 1,585
2015-2016 415 48 463 1,650
2016-2017 418 69 487 1,608
2017-2018 432 81 513 1,639
2018-2019 $388 $161 $549 $1,636
'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 19, 2019 Regular Board Meeting Agenda Packet- Page 185 of 260
Central Contra Costa Sanitary District
Assessed and Estimated Actual Valuation of Taxable Property
Last Ten Fiscal Years
Fiscal Year Local Secured Unsecured Total % Change
2009-2010 $68,640,2877188 $17723,710,536 $70,363,997,724 -0.4%
2010-2011 67,889,370,916 1,647,537,385 69,536,908,301 -1.2%
2011-2012 67,486,938,247 1,591,574,852 69,078,513,099 -0.7%
2012-2013 67,538,246,870 1,604,518,295 69,142,765,165 0.1%
2013-2014 74,400,356,922 1,742,364,655 76,142,721,577 10.1%
2014-2015 80,431,132,956 1,739,342,301 82,170,475,257 7.9%
2015-2016 86,701,930,276 1,645,712,628 88,347,642,904 7.5%
2016-2017 92,006,863,080 1,704,263,642 93,711,126,722 6.1%
2017-2018 97,298,029,346 1,722,229,970 99,020,259,316 5.7%
2018-2019 102,984,718,407 1,801,374,862 104,786,093,269 5.8%
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
2009-2010 $11,253,233 ** 100% -9.9% $5078967210 100% 0.3%
2010-2011 12,171,725 100% 8.2% 50,196,629 100% -1.4%
2011-2012 12,032,525 100% -1.1% 54,586,208 100% 8.7%
2012-2013 13,185,988 *** 100% 9.6% 60,068,807 100% 10.0%
2013-2014 13,108,176 100% -0.6% 66,604,323 100% 10.9%
2014-2015 14,1957300 100% 8.3% 72,622,738 100% 9.0%
2015-2016 15,3237818 100% 7.9% 78,930,977 100% 8.7%
2016-2017 16,4287089 100% 7.2% 83,601,971 100% 5.9%
2017-2018 17,3007475 100% 5.3% 87,944,554 100% 5.2%
2018-2019 18,3527620 100% 6.1% 95,298,869 100% 8.4%
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
December 19, 2019 Regular Board Meeting Agenda Packet- Page 186 of A0
Central Contra Costa Sanitary District
Sewer Service Charge
Ten Largest Customers
Last Ten Fiscal Years
2009-2010 2010-2011 2011-2012 2012-2013 2013-2014
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. $8,664,668 1 14.73% $9,224,952 1 15.40% $10,647,389 1 17.28% $10,483,421 1 15.18% $11,625,864 1 15.71%
Contra Costa County General Services 3. 305,880 2 0.52% 301,430 2 0.50% 292,384 4 0.47% 321,803 4 0.47% 384,750 3 0.52%
First Walnut Creek Mutual 295,450 3 0.50% 295,450 3 0.49% 323,950 2 0.53% 352,450 2 0.51% 361,260 4 0.49%
Park Regency Apartments 277,412 4 0.47% 277,412 4 0.46% 304,172 3 0.49% 330,932 3 0.48% 303,750 5 0.41%
Second Walnut Creek Mutual Apts 233,250 5 0.40% 233,250 5 0.39% 255,750 5 0.42% 278,250 5 0.40% 211,866 6 0.29%
Sun Valley Mall 197,566 6 0.34% 193,957 6 0.32% 203,037 6 0.33% 174,038 7 0.25% 148,374 8 0.20%
Chevron Offices&Office Park 2. 165,561 7 0.28% - - - - - - 419,590 2 0.57%
Kaiser Foundation Hospital 3. 136,753 8 0.23% - - - - - - - -
BranchCreekVistaApartments 124,400 9 0.21% 124,400 7 0.21% 136,400 7 0.22% 148,400 9 0.21% 162,000 7 0.22%
Bay Landing Apartments 111,960 10 0.19% 111,960 8 0.19% 122,760 8 0.20% 133,560 10 0.19% 145,800 9 0.20%
St.Mary's College Contract - - - - 119,407 9 0.19% 158,480 8 0.23% - -
John Muir Health 3. - - - - 176,381 6 0.26% 145,091 10 0.20%
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 $10,512,900 17.87% $10,980,511 18.33% $12,643,949 20.52% $12,557,715 18.18% $13,908,345 18.79%
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019
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. $12,892,945 1 15.25% $13,913,960 1 15.86% $13,851,253 1 15.63% $14,973,623 1 16.19%
15,205,292 1 16.44%
First Walnut Creek Mutual 417,050 3 0.49% 439,850 3 0.50% 462,650 3 0.52% 487,350 3 0.53% 521,550 2 0.56%
Park Regency Apartments 391,588 4 0.46% 412,996 4 0.47% 434,404 4 0.49% 457,596 4 0.49% 489,708 3 0.53%
Sun Valley Mall 299,697 6 0.35% 283,613 6 0.32% 298,005 7 0.34% 354,208 6 0.38% 453,512 4 0.49%
John Muir Health 3. - - 218,919 7 0.25% 322,601 6 0.36% 278,589 7 0.30% 413,900 5 0.45%
Second Walnut Creek Mutual Apts 329,250 5 0.39% 347,250 5 0.40% 365,250 5 0.41% 387,750 5 0.42% 411,750 6 0.45%
Bishop Ranch City Center - - - - - - - - 315,106 7 0.34%
San Ramon Unified School District - 215,044 8 0.25% 225,339 8 0.25% 247,766 8 0.27% 266,550 8 0.29%
Kaiser Foundation Hospital 3. 158,848 8 0.19% 186,232 10 0.21% 186,281 10 0.21% - - 244,180 9 0.26%
Branch Creek Vista Apartments 175,600 7 0.21% - - 194,800 9 0.22% 205,200 9 0.22% 219,600 10 0.24%
Contra Costa County General Services 3. 451,567 2 0.53% 638,608 2 0.73% 547,943 2 0.62% 556,782 2 0.60% - -
Willows Shopping Center 3. - - 206,210 9 0.24% - - 188,828 10 0.20%
Bay Landing Apartments 158,040 9 0.19% - - - -
Archstone Apartments 153,650 10 0.18%
Muirland @ Windemere Apartments 153,650 10 0.18% - - - -
Total $15,581,885 18.44% $16,862,681 19.22% $16,888,526 19.06% $18,137,692 19.61% $18,541,148 20.05%
1. Contract with the City of Concord to treat and dispose of wastewater for the cities of Concord and Clayton. The City of Clayton contracts with the City of Concord for the maintenance,operation,and capital replacementlimprovement
of its sewage collection system,which runs through the City of Concord.
2. Charges included irrigation in years 2009-2010.
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 19, 2019 Regular Board Meeting Agenda Packet- Page 187 of 260
Central Contra Costa Sanitary District
Payments Under the Concord Agreement
Last 10 Fiscal Years
Fiscal Year Discharge Volume (mg) Service Charges Capital Contributions Total
2009-10 4,077 $8,664,668 $3,628,949 $12,293,617
2010-11 4,507 9,224,952 3,216,190 12,441,142
2011-12 4,279 10,647,389 2,541,688 13,189,077
2012-13 4,213 10,483,421 3,616,771 14,100,192
2013-14 3,914 11,625,864 3,820,858 15,446,722
2014-15 3,826 12,892,945 2,897,491 15,790,436
2015-16 3,878 13,913,960 3,671,892 17,585,852
2016-17 4,800 13,851,253 4,476,961 18,328,214
2017-18 4,265 14,973,623 6,364,725 21,338,348
2018-19 4,512 15,205,292 7,973,516 23,178,808
Central Contra Costa Sanitary District
Active Service Accounts and Fiscal Year Billings
Sewer Service Charges
Fiscal Year 2018-2019
2018-2019 Sewer Percentage
User Group No. of Accounts Service Charge Billings Residential Unit Equivalents of Total
Residential 114,101 $77,787,351 137,191 80%
Mixed Use 428 6,322,681 11,151 7%
Office 964 2,498,062 4,406 3%
Hotel/Motel 23 1,374,546 2,424 1%
Food Service 163 1,113,313 1,964 1%
Businesses 175 871,268 1,537 1%
Recreation/Entertainment 251 846,826 1,494 1%
Automotive/Car Wash 387 705,933 1,245 1%
Market/Supermarket 135 711,653 1,255 1%
Industrial Permitted 242 715,534 1,262 1%
All Other User Groups 626 4,071,455 7,181 4%
Subtotal 117,495 $97,018,622 171,110 100%
Partial Year Charges (Counter) $334,031
Prior Year Adjustments (107,120)
Total FY 2018-2019 Sewer Service Charge Revenue $97,245,533
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December 19, 2019 Regular Board Meeting Agenda Packet- Page 188 of 260
Summary Of Debt Service
Last Ten Fiscal Years
Debt Service Paid Each Fiscal Year Outstanding Debt Each Fiscal Year
$7,000,000 In 2019,the District issued refunding Bonds for$19,450,000 which defeased the
$60,000,000
outstanding 2009 Bonds.
$6,000,000
$5,000,000 $45,000,000
m $4.000,000
p° $3,000,000 G $30,000,000
$2,000,000
$15,000,000
$1,000,000
$0 tin 6
^ati°
1°
Type Of Debt
Revenue Bonds 2019&2009 Total Debt Service Annual Ex ense • =
Fiscal Interest& Total Interest&* Total Interest& Total Revenue ■
Year Principal Amortization Debt Service Principal Amortization Debt Service Principal Amortization Debt Service Bonds •,
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 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 2,405,000 1,225,938 3,630,938 182,377 4,742 187,119 2,587,377 1,230,680 3,818,057 29,095,000 (0) 29,095,000
2018-2019 1,025,006 1,025,006 1,025,006 1,025,006 21,806,631 21,806,631
Debt Service Coverage ummary 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
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 3,818,057 92,496,435 88,119,374 51,841,253 56,218,314 14.72 15,696,145 40,522,169 10.61 4.33% 22.51 171.56
2018-2019 1,025,006 85,678,166 52,295,571 70,760,830 104,143,425 101.60 16,118,584 88,024,841 85.88 1.96% 5.98 127.15
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:
*12014-2015 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 RevenuefTotal Debt Service).
Source:Central Contra Costa Sanitary District Audited Financial Statements and Internal Accounting Records
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December 19, 2019 Regular Board Meeting Agenda Packet- Page 189 of 260
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
2010 326,600 135,400 462,000 1.3%
2011 321,800 133,600 455,400 -1.4%
2012 326,900 134,200 461,100 1.3%
2013 332,600 134,900 467,500 1.4%
2014 335,009 135,856 470,865 0.7%
2015 339,029 137,357 476,386 1.2%
2016 340,667 140,916 481,583 1.1%
2017 344,591 139,654 484,245 0.6%
2018 348,333 140,590 488,923 1.0%
2019 352,733 141,542 494,275 1.1%
Source: Central Contra Costa Sanitary District Environmental Services Division
List of Ten Largest Employers in Contra Costa County
Last Year and Eight Years Ago*
2018* 2009
Estimated %of Total County Estimated %of Total County
Employers Employees Rank Employment Employees Rank Employment
Chevron Corporation 10,000+ 1 1.82% 4,700 1 0.99%
Bay Alarm Co. 1,000-4,999 T-2 0.56%
St. Mary's College 1,000-4,999 T-2 0.56%
Bio-Rad Laboratories 1,000-4,999 T-2 0.56% 1,700 4 0.36%
Job Connections 1,000-4,999 T-2 0.56%
John Muir Medical Center 1,000-4,999 T-2 0.56% 1,900 3 0.40%
Kaiser Permanente 1,000-4,999 T-2 0.56%
La Raza Market 1,000-4,999 T-2 0.56%
Martinez Medical Offices 1,000-4,999 T-2 0.56%
USS-POSCO Industries 1,000-4,999 T-2 0.56% 975 8 0.20%
Kaiser Foundation Hospital - 2,300 2 0.49%
John Muir/Mt. Diablo Medical Center 1,500 5 0.32%
24 Hour Fitness 1,300 6 0.27%
Doctors Medical Center 1,000 7 0.21%
Contra Costa Newspaper, Inc. 900 9 0.19%
Bank of the West - 800 10 0.17%
All Others 511,900 93.14% 456,725 96.40%
Total 548,900 100.0% 473,800 100.0%
Source: * County of Contra Costa,California,Comprehensive Annual Financial Report for June 30,2018,Statistical Section,principal employers excludes government employers.
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December 19, 2019 Regular Board Meeting Agenda Packet- Page 190 of 260
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**
2009 1 ,037,890 $56,296,792,000 $54,242 10.8%
2010 1 ,052,799 56,882,501,000 54,030 11.3%
2011 1 ,066,182 61,498,902,000 57,681 10.4%
2012 1 ,079,093 66,772,041,000 61,878 9.0%
2013 1 ,095,310 67,290,115,000 61,435 7.4%
2014 1 ,110,971 71,164,468,000 64,056 6.2%
2015 1 ,126,027 77,914,957,000 69,195 5.0%
2016 1 ,138,645 82,204,425,000 72,195 4.4%
2017 1 ,147,439 87,810,279,000 76,527 3.8%
2018 1 ,150,215 94,900,003,000 82,506 2.7%
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.
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December 19, 2019 Regular Board Meeting Agenda Packet- Page 191 of 260
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 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Administration 45 44 39 39 44 46 49 43 43 41
Engineering 76 75 71 75 73 72 88 88 89 90
Operations
Collection Systems 47 44 47 56 55 56 55 55 54 54
Plant 78 74 71 76 81 88 79 83 81 77
Pumping Station 10 8 7 8 8 8 7 7 7 12
Operations Total 135 126 125 140 144 152 141 145 142 143
District Total 256 245 235 254 261 270 278 276 274 274
Number of Retirees and Surviving Spouses as of June 30
Last Ten Fiscal Years
District Total 201 215 237 244 243 244 249 259 278 268
Source: Central Contra Costa Sanitary District Finance and Human Resources Divisions
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December 19, 2019 Regular Board Meeting Agenda Packet- Page 192 of 260
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 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
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 32.5 38.9 37.2 33.2 33.8 30.4 29.1 30.8 33.3 31.8
Wastewater Treated per day Calendar 37.0 40.6 41.9 39.8 36.8 35.6 31.8 35.4 43.2 36.0
Tons per Year
Sludge to Furnace(Dry)*1 Fiscal 15,299 15,056 15,790 15,097 14,590 16,789 16,623 17,031 16,279 16,498
Ash to Reuse Site(Wet)*2 Fiscal 4,082 3,814 3,850 3,667 3,618 3,811 3,651 4,230 3,475 3,577
*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 1,526 1,526 1,519 1,519 1,519 1,535 1,535
Number of pumping stations(owned) Calendar 17 16 16 16 16 16 16 16 15 15
Recycled Water
Recycled Water Pipeline Calendar 10.5 miles 10.5 miles 10.5 miles 10.5 miles 10.5 miles 13 miles 13 miles 13 miles 13 miles 13 miles
Recycled Water Produced per day Calendar 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 1.47 mgd
Number of Recycled Water Customers Calendar 30 33 35 35 35 37 43 52 52 52
Residential Recycled Water Fill Station Customers Calendar N/A N/A N/A N/A N/A N/A 1,020 2,259 2,313 2,365
Household Hazardous Waste(HHW)-Inception 1997/1998
Program Participation(Number of cars) Fiscal 29,347 29,441 29,112 29,119 30,379 31,779 33,468 33,037 35,640 36,108
Percentage of Households in Service Area Fiscal 15.0% 15.6% 15.4% 15.4% 15.9% 16.6% 16.8% 16.7% 18.1% 18.4%
Operating Cost per Car Fiscal $76 $82 $87 $93 $83 $78 $72 $80 $77 $78
Pounds of HHW per Car Fiscal 65 68 67 68 66 63 64 65 64 61
Pharmaceutical Collection Program-Inception 2009
Number of Collection Sites Calendar 5 10 10 10 12 13 13 13 13 13
Pounds of Expired or Unwanted medications Collected Calendar 4,747 8,960 9,434 12,240 12,428 14,041 15,366 16,485 17,337 17,178
Miscellaneous Statistics
Governing Body: 5-Member Board of Directors elected at large
Governmental Structure: Established in 1946 under the Sanitary District Act of 1923
Staff: 274 full-time equivalent employees(290 budgeted/authorized)
Authority: California Health and Safety Code Section 4700 et.Seq.
Services: Wastewater collection,treatment,and disposal
Household Hazardous Waste(HHW)Facility
Recycled Water
Residential and Truck Recycled Water Fill Station
Pharmaceutical Collection Program(13-Collection Sites)
Retail HHW Collection Program
Type Of Treatment: Discharge-Secondary;Reclamation-Tertiary
Service Area: 144 square miles
Total Population Served: 494,275(HHW service area 530,383)
Sewer Service Charge: $567 for single family homes and$549 for multi-family homes.
Source: Central Contra Costa Sanitary District records S-12
December 19, 2019 Regular Board Meeting Agenda Packet- Page 193 of 260