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HomeMy WebLinkAbout06. (Handout) Summary of Finance Committee changes to CAFR Attachment 3 FY 2019-20 CAFR Changes The following changes were made to the attached FY 2019-20 CAFR as a result of the Finance Committee's review at its meeting on December 15,2020. CAFR Location on # Pg.# page Description Change Reason for Change 1 ii Third and Previously stated: Update transmittal fourth Having completed its 22nd year of operation,the HHW Facility currently serves over 35,000 residential and small letter to reflect sentences of business customers annually,from which over two million pounds of hazardous waste is collected and properly operational changes fourth disposed of each year. In conjunction with its HHW facility,the District's Pharmaceutical Collection Program resulting from COVID- paragraph encourages pollution prevention having collected over seventeen thousand pounds of expired or unwanted 19 and most recent medications between its thirteen collection sites. In conjunction with its HHW facility,the District's collection statistics Pharmaceutical Collection Program encourages pollution prevention having collected over seventeen thousand provided by divisions pounds of expired or unwanted medications between its thirteen collection sites. presented in statistical section Replaced with: Having completed its 23rd year of operation,the HHW Facility served over 27,000 residential and small business customers. Over two million pounds of hazardous waste is typically collected and properly disposed of in normal operating years. To comply with stay-at-home orders issued by the Contra Costa County Health Officer and reduce the risk of exposure to COVID-19 for Central San's employees and its customers at the onset of the pandemic,the HHW facility was temporarily closed for three months during the fiscal year. While a necessary and prudent measure at that time,this action adversely impacted the amount of hazardous waste collected. In conjunction with its HHW facility,the District's Pharmaceutical Collection Program encourages pollution prevention having collected nearly ten thousand pounds of expired or unwanted medications between its thirteen collection sites in _____________________________________ calendarXear 2019__ 2 iv Fourth Previously stated: Clarify that rate sentence The four-year sewer service charge rate increases range from 5.25%to 4.75%and are a critical component of increases are subject to second implementing the treatment plant and collection system capital improvement projects specified in the District's 20-annual Board review. paragraph year master plan adopted in 2017. Replaced with: The four-year sewer service charge rate increases range from 5.25%to 4.75%,subject to a Board review for continued necessity prior to the start of the fiscal year. The planned increases 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. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Attachment 4 CAFR Location on # Pg.# page Description Change Reason for Change 3 iv First sentence Previously stated: Use wider estimate for of third In conjunction with the approved sewer service charge rates,the District's most recently adopted long-term debt needs of financial paragraph financial plan anticipated two debt issuances totaling approximately$173 million to finance its treatment plant plan but still make and collection system capital improvement program through the fiscal year ending June 30,2024. The current and reference to currently primary strategy is to pursue low interest and federally subsidized State Revolving Fund loan financing through anticipated amount of the California Water Board. Board SRF loan Replaced with: In conjunction with the approved sewer service charge rates,the District's adopted long-term financial plan anticipated two debt issuances totaling$150-200 million to finance its treatment plant and collection system capital improvement program through the fiscal year ending June 30,2024. The current and primary strategy is to pursue low interest and federally subsidized State Revolving Fund loan financing through the California Water Board,with a loan of$173 million pending finalization as of December 2020. 4 iv-v Previously stated: Replace reference to 7 District management analyzes and updates a strategic plan every two years,with the seven current goals being: goals in new strategic (1)provide exceptional service and maintain an excellent reputation;(2)meet regulatory requirements and plan,to the 6 goals in promote sustainability;(3)manage finances wisely and prudently;(4)recruit,empower,and engage a highly the former strategic trained and safe workforce;(5)maintain facilities and equipment to be dependable,resilient,and long lasting;(6) plan effective during FY explore new technologies for continuous improvement;and(7)preserve business continuity during pandemic 2019-20. As the CAFR is events or major natural disasters. Strategies to achieve each of these seven goals are developed,as well as metrics a historical"look back" to evaluate success. document,information should generally reflect Replaced with: facts and circumstances District management analyzes and updates a strategic plan every two years,with the six goals in effect during in place during the fiscal fiscal year 2019-20 being: (1)provide exceptional customer service and maintain an excellent reputation in the year being presented. community; (2)strive to meet regulatory requirements; (3)be a fiscally responsible 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. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 5 v First sentence Previously stated: As the CAFR is a of last The District's vision is to be a high-performance organization that provides exceptional customer service and historical"look back" paragraph regulatory compliance at responsible rates. document,information should generally reflect Replaced with: facts and circumstances The District's vision statement in effect during fiscal year 2019-20 was to be a high-performance organization that in place during the fiscal provides exceptional customer service and regulatory compliance at responsible rates. The Board adopted a new year being presented. slightly revised vision statement effective for fiscal years 2020-21 and 2021-22 which will be reflected in next year's report. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Attachment 4 CAFR Location on # Pg.# page Description Change Reason for Change 6 v Second Previously stated: Replace"both trusts"to sentence of During fiscal year 2019-20 the District contributed an additional$1,250,000 to both trusts as a mechanism to "each trust"to clarify third hedge against potential future employer pension contribution rate volatility. $1.25M contribution paragraph was made to each trust Replaced with: separately,not$1.25M During fiscal year 2019-20 the District contributed an additional$1,250,000 to each trust as a mechanism to split between both hedge against potential future employer pension contribution rate volatility. trusts. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 7 vi First sentence Previously stated: Eliminate reference to of second During FY 2019-20,the District approved a two-year Strategic Plan for FY 2020-21 and FY 2021-22.As noted "as noted previously" paragraph previously,the Strategic Plan establishes policy direction and identifies seven goals with key performance based on other changes indicators that provide a roadmap for achieving increased effectiveness and efficiencies to version of vision statement and strategic Replaced with: plan referenced. As the During FY 2019-20,the District approved a new two-year Strategic Plan for FY 2020-21 and FY 2021-22. The new CAFR is a historical Strategic Plan establishes policy direction and identifies seven goals with key performance indicators that provide "look back"document, a roadmap for achieving increased effectiveness and efficiencies. information should generally reflect facts and circumstances in place during the fiscal year being presented. ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 8 ix n/a Replace new Mission,Vision&Values page with old one in effect during FY 2019-20 As the CAFR is a historical"look back" document,information should generally reflect facts and circumstances in place during the fiscal ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------Fear beinpresented_---- 9 4 Net Position Percentage formulas were inversed,for the following categories: Correct percentage variance (1) 2020 vs.2019 Restricted Net Position formula errors percentages in (2) 2020 vs.2018 Unrestricted Net Position Table 1.