HomeMy WebLinkAbout10. Accept the independently audited Annual Comprehensive Financial Report for fiscal year ended June 30, 2021 Page 1 of 106
Item 10.
CENTRAL SAN BOARD OF DIRECTORS
POSITION PAPER
MEETING DATE: JANUARY 13, 2022
SUBJECT: ACCEPT (1) THE AUDITED COMPARATIVE ANNUAL COMPREHENSIVE
FINANCIAL REPORT (ACFR) FOR THE FISCAL YEARS ENDED JUNE 30,
2021, AND 2020 PERFORMED BY MAZE &ASSOCIATES, AND (2) THE
INDEPENDENTAUDITORS' MEMORANDUM ON INTERNAL CONTROL AND
REQUIRED COMMUNICATIONS FOR THE FISCAL YEAR ENDED JUNE 30,
2021
SUBMITTED BY: INITIATING DEPARTMENT:
KEVIN MIZUNO, FINANCE MANAGER ADMINISTRATION-FINANCE
REVIEWED BY: PHILIP LEIBER, DIRECTOR OF FINANCE AND ADMINISTRATION
ROGER S. BAILEY, GENERAL MANAGER
Roger S. Bailey
General Manager
ISSUE
The comparative audited ACFR of Central San for the fiscal years ended June 30, 2021, and 2020, and
the independent auditors' memorandum on internal control and required communications for the year
ended June 30, 2021, are being submitted to the Board.
BACKGROUND
Independent Audit Results
The independent audit firm of Maze &Associates has completed their eighth consecutive audit of Central
San's annual financial statements for the fiscal years ended June 30, 2021, and 2020, and has issued their
audit opinion thereon. The objective of this annually required independent audit is the expression of an
opinion as to whether the basic financial statements are fairly presented, in all material respects, in
conformity with United States generally accepted accounting principles (GAAP) and to report on the
fairness of the supplementary information in relation to the financial statements taken as a whole. The audit
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is conducted in accordance with auditing standards generally accepted in the United States (GAAS).
GAAS require the independent auditor to plan and perform the audit to obtain reasonable, but not
absolute, assurance about whether the financial statements are free from material misstatement.
Procedures performed necessary to gather sufficient audit evidence supporting their opinion are based on
a comprehensive assessment of Central San's financial risks, and consider both internal control risks and
inherent business risks. Management is pleased to announce Central San's independent auditor's report
for the fiscal years ending June 30, 2021, and 2020 expresses an unmodified (clean)opinion. As always,
the Independent Auditors' Report including the audit opinion is included on Page 1 of the attached ACFR
(Attachment 1). The ACFR is the new name for the report previously known as the Comprehensive Annual
Financial Report (CAFR).
In accordance with Califomia Govemment Code Section 53891, information from the audit is also used
to prepare an annual report filed with the State Controller's Office (SCO). This report is referred to as the
Financial Transactions Report(FTR), and is prepared following strict reporting guidelines published by
the SCO annually. Now that the annual independent audit has been completed, the FTR for the fiscal year
ended June 30, 2021, will be remitted electronically by the January 31, 2022, reporting deadline. The
audited financial statements will also be sent to the Contra Costa County Auditor-Controller's Office, the
Contra Costa County Board of Supervisors, the Bond Rating Agencies, and posted to the Electronic
Municipal Market Access (EMMA)website as required by continuing disclosure requirements for Central
San's bond and certificate debt issuances.
I n accordance with GAAS, in the performance of their audit of the annual financial statements, the
independent auditors evaluated Central San's internal controls over financial reporting. Based on their
observations during the course of the audit, the independent auditors advise management of any
significant deficiencies or material misstatements and any recommendations to improve the system of
internal accounting controls. The independent auditors are required to communicate certain matters to
those charged with governance at the conclusion of the audit, which is addressed by their"Memorandum
on Internal Control and Required Communications" (Attachment 2). In addition to the clean audit opinion,
Management is also pleased to report there were no significant deficiencies or material misstatements
identified by the auditors as part of this year's audit.
Financial Summary
Pursuant to GAAP, as a stand-alone business-type governmental entity, Central San uses an enterprise
fund format to report its activities for financial statement purposes. Under this enterprise fund format, all
non-fiduciary sub-funds of the Central San (i.e. Running Expense, Sewer Construction, Self-I nsurance,
Debt Service) are consolidated into a single reporting unit and reported in a Statement of Net Position;
Statement of Revenues, Expenses and Changes in Net Position; and a Statement of Cash Flows. This
consolidated reporting unit is considered an "opinion unit" and is what Central San's independent auditors
have rendered their(clean) opinion on. Accordingly, the emphasis of the annual audited financial
statements is at the District-wide level pursuant to GAAP, and not at the sub-fund level.
Central San's total ending net position increased by$57.7 million or 7.5% in 2020-21. This increase is
primarily due to the additional pension-related deferred outflows and negative pension expense adjustment
recognized as a result of a $70.8 contribution made to the Contra Costa County Employee Retirement
Association, the Central San's pension plan administrator. This significant contribution was made in June
2021 to pay off the pension plan's Unfunded Actuarily Accrued Liability(UAAL) in conjunction with the
issuance of the 2021 Wastewater Revenue Certificates of Participation (COPs). COPs with par value of
$50.57 million were issued to generate, with premium, $58.0 million of proceeds to finance a portion of the
capital improvement budget in the current and following fiscal years, allowing for the redirection sewer
service charges from Central San's capital budget to its operating and maintenance budget, and use in the
pension pay-down.
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Previously, the Finance Committee has inquired about Central San's accrued employee compensated
absences liability, specifically asking for additional information of the portion of the liability attributable to
employee sick leave accruals earned and compensable upon termination. The total balance of
compensated absences payable reflected on the ACFR as of the fiscal year ended June 30, 2021, is
$5.09 million, of which $1.40 million (27.6%) pertains to employee sick leave accruals. This $1.40 million
accrual attributable to sick leave reflects employee sick time vested and payable upon termination as of
June 30, 2021. Sick time may be used by employees while employed for eligible leave or be applied
towards pension service time and/or cashed out upon retirement as permitted in labor agreements
currently in place. As disclosed in the ACFR's compensated absences footnote, employees hired prior to
May 1, 1985, have a vested interest 85% of accrued sick time, and the last employee hired prior to this
date retired in the fiscal year ended June 30, 2021. Employees hired on or after May 1, 1985 have a
vested interest in up to 40% of their sick time, based upon length of employment with Central San.
The payout of long-term compensated absences is a cash-only transaction with the expense being
accrued and recognized in Central San's financials as earned pursuant to GAAP. Absent significant
turnover or significant changes to payout caps, this obligation generally grows with payroll (i.e., employee
step increases, promotions, inflationary cost of living adjustments, etc.). Attachment 3 provides a historical
trend of the sick leave compensated absences liability for the current year's ACFR being presented today
for the year ended June 30, 2021, as well as the six fiscal years prior to this. The chart illustrates that while
the compensated absences liability has gradually grown as expected, the portion attributable to sick leave
accruals has decreased.
GFOA Award Program
The Government Finance Officers Association (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.
On August 25, 2021, Central San 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, 2020, representing the
21 st consecutive year Central San has received the award. The Certificate of Achievement is the highest
form of recognition for excellence instate and local government financial reporting. In order to be awarded
a Certificate of Achievement, a government agency must publish an easily readable report in a prescribed
format report that complies with GAAP as well as GFOA program requirements. The ACFR includes ten
years of Central San's historical, financial, and statistical data. The ACFR provides a concise document
for internal management use, as well as external use with other agencies, and is posted on Central San's
website for the general public. A Certificate of Achievement is valid for a period of one year.
The Finance Division has prepared the Central San's ACFR as of June 30, 2021. Management is
confident that the current ACFR continues to meet the Certificate of Achievement for Excellence in
Financial Reporting Program requirements and intends to submit it to the GFOA to determine its eligibility
for another certificate.
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ALTERNATIVES/CONSIDERATIONS
Acceptance of the documents by the Board is standard and customary.
The Board could direct staff not to pursue the GFOA award for the ACFR. However, 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
The acceptance of the audited ACFR for the comparative fiscal years ending June 30, 2021, and 2020
does not have direct fiscal impact on Central San. Staff intends to submit the attached ACFR to the
G FOA for the Certificate ofAchievement for Excellence in Financial Reporting program, for which there
is an application fee for submission of a ACFR for review based on total revenues of the entity applying.
Based on this sliding fee schedule, Central San's fee is expected to be $560. Funding necessary to
cover this cost was included in the adopted budget for the current fiscal year ending June 30, 2022.
COMMITTEE RECOMMENDATION
The Finance Committee reviewed this matter at its meeting on December 21, 2021 and recommended
board acceptance of 1)the audited comparative Annual Comprehensive Financial Report (ACFR)for the
fiscal years ended June 30, 2021, and 2020 performed by Maze &Associates, and (2)the independent
auditors' memorandum on internal control and required communications for the fiscal year ended June 30,
2021.
RECOMMENDED BOARD ACTION
Accept the audited ACFR for the fiscal years ended June 30, 2021, and 2020, and the auditors'
memorandum on internal control and required communications for the fiscal year ended June 30, 2021.
Strategic Plan re-In
GOAL THREE: Fiscal Responsibility
Strategy 1—Maintain financial stability and sustainability, Strategy 2—Ensure integrity and transparency in financial
management
ATTACHMENTS:
1. Annual Comprehensive Financial Report for Fiscal Years Ended June 30, 2021 and 2020
2. Memorandum on Internal Control and Required Communications
3. Sick Leave Accrual Trend Chart
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CENTRALSAN
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CENTRAL CONTRA COSTA SANITARY
DISTRICT
MARTINEZ, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEARS ENDED JUNE 30, 2021 AND 2020
Prepared By:
Finance Division
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CENTRAL CONTRA COSTA SANITARY DISTRICT
Annual Comprehensive Financial Report
Table of Contents
For the Years Ended June 30, 2021 and 2020
INTRODUCTORY SECTION:
Letterof Transmittal............................................................................................... i
Board of Directors.................................................................................................ix
MissionStatement................................................................................................ x
OrganizationChart ...............................................................................................A
Mapof Service Area ............................................................................................xii
Certificate of Achievement..................................................................................xiii
FINANCIAL SECTION:
Independent Auditors' Report............................................................................... 1
Management's Discussion and Analysis .............................................................. 3
Basic Financial Statements
Statements of Net Position ................................................................. 10-11
Statements of Revenues, Expenses and Changes in Net Position.......... 13
Statements of Cash Flows.................................................................. 14-15
Notes to Financial Statements - The accompanying notes are an
integral part of the basic financial statements.................................... 17-45
Required Supplementary Information
Cost-Sharing Multiple Employer Defined Benefit Retirement Plan -
Schedule of Proportionate Share of Net Pension Liability..................... 48
Schedule of Contributions ..................................................................... 49
Post-Retirement Health Care Defined Benefit Plan —
Schedule of Changes in the Net OPEB Liability and Related Ratios .... 50
Schedule of Contributions..................................................................... 51
Supplementary Information
Combining Schedule of Statement of Net Position .................................. 54
Combining Schedule of Statement of Revenues, Expenses and
Changes in Net Position - Enterprise Sub-Funds .................................. 55
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
Assessed and Estimated Actual Valuation of Taxable Property -
Last Ten Fiscal Years.....................................................................................S-5
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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 -
LastTen 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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NNUAL OMPREH ENSIV
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CENTRAL SAN
CENTRAL CONTRA
December 28, 2021
Central Contra Costa Sanitary District Customers and
The Honorable Board of Directors,
Martinez, California:
California Government Code section 26909 requires an audit to be completed and filed
with the California State Controller's Office within twelve months after the close of the
fiscal year. This report is published to fulfill that requirement for the fiscal year ended
June 30, 2021 (FY 2020-21).
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.
The District's independent auditors, Maze & Associates, has issued an unmodified
("clean") opinion on the District's financial statements for the year ended June 30, 2021.
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 344,000 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 141,000 residents of the Cities of
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Concord and Clayton under a 1974 (and as subsequently amended) 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
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). The
residential segment makes up the largest segment of the District's customer base
representing approximately 81% 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 been the
primary financing mechanism for the District's capital program, although a bond offering
in June 2021 will fund capital expenditures for a portion of FY 2020-21 and FY 2021-22
needs.
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 by augmenting
the region's water supply through a water exchange project currently being evaluated with
Contra Costa Water District and Santa Clara Valley Water District. The District continues
to actively 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 local schools, parks, and businesses.
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 Mountain 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 24t" year of operation, the HHW Facility served over
36,000 residential and small business customers. On average, over two million pounds
of hazardous waste is collected and properly disposed of annually. While volumes
temporarily declined in the prior year due to a short-term closure at the onset of the
COVID-19 pandemic, HHW collection rebounded in FY 2021 having collected
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approximately 2.7 million pounds of waste. In conjunction with its HHW facility, the
District's Pharmaceutical Collection Program encourages pollution prevention having
collected just over 5,600 pounds of expired or unwanted medications between its thirteen
collection sites in calendar year 2021. Although this is a decline from last year's nearly
10,000 pounds of medications collected, the number of non-District collection sites has
increased to over 40 sites, which improves access to proper disposal in our service area.
Organization, Accounting and Budgetary Controls
A five-member Board of Directors (the Board) governs the District. Board members each
serve a different electoral district and are elected by voters from their electoral district on
a non-partisan basis serving four-year staggered terms. The Board appoints the General
Manager, who in accordance with policies established by the Board, manages District
affairs. The District employed 278 permanent regular full-time employees at year end out
of 291 authorized permanent regular full-time positions. These employees are organized
into three departments steered by an Executive Governance unit. Department Directors
oversee and are responsible for the budgets and expenses of each department and their
underlying divisions. The three departments are: Administration, Engineering and
Technical Services, and Operations.
As a California municipal utility, the District charges fees to external users for providing
sewer collection and treatment services. Accordingly, pursuant to generally accepted
accounting principles issued by the Governmental Accounting Standards Board, the
District uses full accrual enterprise fund accounting to account for its operations, which is
similar, though not identical, to private industry. The District currently has one enterprise
fund for financial reporting purposes, which is comprised of the following four internal sub-
funds for internal accounting purposes:
■ 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 the Operations & Maintenance or "O&M" Fund).
■ 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 (i.e. Sewer Construction), Self-Insurance, and Debt-Service. The
Board, Finance Committee and management review interim financial reports and
operational disbursements monthly. 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
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documented financial policies (including debt management, investments, fiscal reserves,
etc.) that are periodically reviewed and updated to ensure their consistency with best
practices as well as changes in laws and regulations.
ASSESSING THE DISTRICT'S ECONOMIC CONDITION
Local Economy and Outlook
According to the State of California's Legislative Analyst's Office's (LAO), despite the
ongoing global pandemic and its disparate health and economic impacts on Californians,
revenues are growing at historical rates with the state projecting a $31 billion surplus for
allocation in FY 2022-23. Based on this outlook, the LAO examined the state's budget
condition through FY 2025-26 and assessed its capacity for new commitments, such as
spending increases or tax reductions. The LAO has found that the state budget does in
fact have such capacity, finding the operating surpluses range from $3-$8 billion over that
multiyear period. The LAO's FY 2022-23 fiscal outlook also acknowledges this positive
news is tempered by questions of the long-term sustainability of this revenue growth as
well as recent reports on inflation. In the months following the close of FY 2020-21,
resurgent consumer demand met with continued frictions in production and transport of
many goods has led to higher-than-normal growth in the prices of many goods and
services. To put this in context, since June 2021, annual price inflation has exceeded 5%
compared to an average of 2% over the last decade. While the LAO report recognizes
the consensus among economic forecasters is this uptick in inflation will abate by next
year, it also acknowledges this forecast comes with significant uncertainty, underscored
by reports of further acceleration of inflation in October 2021.
According to the California Employment Development Department (EDD), the Contra
Costa County workforce decreased by approximately 3.4% from October 2020 to October
2021. During this same timeframe, unemployment in Contra Costa County decreased
from 8.4% to 5.3%, remaining slightly below California as a whole, which decreased from
9.0% to 6.1%. This downward trend is positive news, particularly in comparison to the
peak of 15.1% reported in Contra Costa County in April 2020 near the onset of the
COVID-19 pandemic.
Long-Term Financial Planning
The District has an excellent reputation in providing public service, which includes
transparent and accessible governance, financial reporting and management, sewage
collection and treatment, training, workforce safety, capital improvements and
replacements, innovative use of technology, and customer service. This positive
reputation and long-term outlook has served the District well, 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
annual increases range from 5.25% to 4.75%, subject to a Board review for continued
necessity prior to the start of each fiscal year. The planned increases are a critical
component of implementing the treatment plant and collection system capital
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improvement projects specified in the District's 20-year master plan adopted in 2017. Due
to the financial hardships brought on by the COVID-19 pandemic and related lock downs
in 2020, the Board took action and passed customer relief measures to prevent further
burdens on its customers. Specific measures taken included the freezing of rate
increases scheduled for FY 2020-21 and refunding schools' sewer service charges to
reflect a drop in water consumption while schools implemented remote learning in FY
2019-20, which continued into FY 2020-21.
In conjunction with the approved sewer service charge rates, the District's long-term
financial plan initially 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. This plan initially involved the District pursuing low interest
and federally subsidized State Revolving Fund loan financing up to $173 million through
the California Water Board necessary to finance the rehabilitation, replacement, and
upgrading of the solids handling incineration facility. Given the solids handling projects'
significant and continued growth in cost estimates, in September 2021 the Board changed
course from a continued major investment in incineration, and instead directed staff to
develop plans to transition the solids handling process towards digestion, consistent with
the District's long-term master plan, but on an accelerated basis. While this alternative
approach will still necessitate debt financing, the exact financial impact of this transition
to the Capital Improvement Program is still uncertain and currently being assessed by
staff, but is expected to cost less than the previous path. Staff anticipates the completion
of a revised 10-year Capital Improvement Program incorporating this significant change
in time for the upcoming Financial Planning workshop anticipated to occur in March 2022.
District management analyzes and updates a strategic plan every two years, with the
seven goals in effect during FY 2020-21 being:
1. Customer and Community - Provide exceptional customer service and maintain
an excellent reputation,
2. Environmental Stewardship - Meet regulatory requirements and promote
sustainability,
3. Fiscal Responsibility - Manage finances wisely and prudently,
4. Workforce Development - Recruit, empower, and engage a highly trained and
safe workforce,
5. Infrastructure Reliability - Maintain facilities and equipment to be dependable,
resilient, and long-lasting,
6. Innovation and Optimization - Explore new technologies for continuous
improvement, and
7. Agility and Adaptability - Preserve business continuity during pandemic events
or major natural disasters.
Strategies to achieve each of these seven 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. The District updates a 10-year financial plan each year prior to
the completion, presentation, and adoption of the annual budget. The main economic
factors considered in this long-term forecasting exercise are: the impact of state
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legislation and mandates, regulatory compliance, GASB reporting requirements,
negotiated labor contract terms (including 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
(UAAL) for the District's pension and other post-employment benefit (OPEB) plans are
also considered in the financial planning process. Pursuant to the most recently issued
independent actuarial reports, the District currently has a strong fiduciary net position in
both plans of approximately 85.8% for its pension plan as of December 31, 2020 and
99.16% for its OPEB plan as of June 30, 2021. A Section 115 Pension Prefunding Trust
also has additional resources available to be used towards pension liabilities. When
incorporating these additional restricted trust assets, the pension plan's funded status is
elevated to 88.4% as of December 31, 2020. Most significantly, in conjunction with the
issuance of $50.57 million in certificates of participation generating $58.0 million in
proceeds to finance the capital budget, the District allocated additional sewer service
charges to the O&M Fund necessary to pay down the full $70.8 million balance of the
pension plan's UAAL effectively fully funding the pension plan as of June 30, 2021. This
significant transaction is not reflected in CCCERA's actuarial results as it was effectuated
after the report's December 31, 2020 valuation date.
The District anticipates that it will continue to meet its mission and goals, continue to
provide excellent customer service at responsible rates to its customers, and meet
compliance requirements and other goals as specified in its strategic plan for the
foreseeable future.
Relevant Financial Policies
Investment policies for the District's assets, the OPEB Trust, and the Pension Prefunding
Trust are reviewed and approved annually by the Board. During FY 2020-21 the District
Board directed an additional $1,250,000 be contributed to the Pension Prefunding Trust
as a mechanism to hedge against potential future employer pension contribution rate
volatility. As this described previously, the Pension Prefunding Trust was subsequently
utilized in June 2021 to pay off the balance of the pension plan's UAAL. Section 53646
of the California Government Code governs the District's investment practices, with
changes in legislation being considered in the Board's annual review of District
investment policies. Additionally, the Board receives quarterly financial statements that
include District investment portfolio reports. The OPEB Trust and the Section 115
Pension Prefunding Trusts are governed by separate investment policies. Since 2008,
the OPEB Trust funds has 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 the OPEB Trust and Section 115 Pension Trust performance
on a quarterly basis.
Major Initiatives
The District's vision statement in effect during FY 2020-21 was to be an industry-leading
organization known for environmental stewardship, innovation, and delivering exceptional
Vi
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Page 16 of 106
customer service at responsible rates. The Board and Management strives to achieve
this vision through the establishment of a Strategic Plan that establishes seven
overarching goals (as outlined previously), each with their own specific underlying
strategies, initiatives, and key success measures.
The District has received the Platinum award from the National Association of Clean
Water Agencies (NACWA) for 24 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 85% in the past 18 years
by improved sewer cleaning and a robust sewer rehabilitation program.
As described previously, the District reviews and adopts a Strategic Plan every two years.
During FY 2021-22, the District Board and Management have been developing the new
Strategic Plan for FY 2022-23 and FY 2023-24, which is expected to be completed and
adopted in the Spring of 2022, prior to the adoption of the FY 2022-23 budget. The District
continues to analyze current and future rates, costs, and cash flows to ensure they remain
consistent with the cost of service study initially adopted in FY 2014-15 then subsequently
reassessed for viability and re-adopted by the Board in FY 2018-19.
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 is intended
to be used as a roadmap for capital improvements for the next two decades. 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 provides for 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 District
for its annual comprehensive financial report (ACFR) for the fiscal year ended June 30,
2020. This was the 21St consecutive year that the District has achieved this prestigious
award. In order to receive the award, a government must publish an easily readable and
efficiently organized ACFR. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of
one year only. We believe that our current ACFR continues to meet the program's
requirements and we are submitting it to the GFOA to determine its eligibility for another
certificate.
Vii
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Page 17 of 106
This report could not have been accomplished without the dedication and commitment
provided by District staff. We would like to express our appreciation to the following
employees who assisted in its preparation:
■ The Finance Division who compiled the information contained in this document with a
special thanks to: Christopher Thomas, Accounting Supervisor; Olivia Ruiz,
Accounting Supervisor; Amal Lyon, Accountant; and Sue Goodrich, Temporary
Accountant.
■ The Reproduction and Graphics Team who creatively and professionally edited this
the ACFR for publication.
■ 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,
`?
Philip Leiber, CPA T. Kevin Mizuno, CPA
Director of Finance & Administration Finance Manager
Viii
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Page 18 of 106
CENTRAL CONTRA COSTA SANITARY DISTRICT
BOARD OF DIRECTORS
June 30, 2021
Tad J. Pilecki ....................................................President
David R. Williams...............................President Pro-Tem
Barbara D. Hockett.............................................Member
Mariah N. Lauritzen ............................................Member
Michael R. McGill................................................Member
X
January 13, 2022 Special Board Meeting Agenda Packet- Page 122 of 260
Page • of 1.
2 SO CENTRAL SAN
CENTRAL CONTRA COSTA SANITARY DISTRICT
VISION7 MISSIU
VA U S
OUR MISSION
To protect public health and the environment
OUR VISION
To be an industry-leading organization known for environmental stewardship,
innovation, and delivering exceptional customer service at responsible rates
OUR VALUES
PEOPLE COMMUNITY PRINCIPLES LEADERSHIPAND
Respect customers Collaborate with • Be truthful and COMMITMENT
and employees water sector honest Promote a passionate
Work effectively partners • Be fair, kind, and and empowered
and efficiently as a Foster community friendly workforce
team relationships Take ownership and Encourage continuous
Celebrate our Be open, transparent, responsibility growth and
successes and and accessible development
learn from our Understand service Inspire dedication and
challenges level expectations top-quality results
Provide a safe and
healthful environment
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January 13, 2022 Special Board Meeting Agenda Packet- Page 124 of 260
Page 21 of 106
Central Contra Costa Sanitary District Service Area
• . June 30, 2021 Date: 12/13/2021
680
Benicia
Suisun Bay
San
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and HHW Collection Facility 1:1 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
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HHW collection for 344,254 people 4. Clyde 14. Moraga
❑ Wastewater treatment and HHW collection 5. Concord Industrial 15. San Ramon
for 140,541 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 J1
xii
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Page 22 of 106
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Central Contra Costa Sanitary District
California
For its Comprehensive Annual
Financial Report
For the Fiscal Year Ended
June 30, 2020
P.
Executive Director/CEO
XIII
January 13, 2022 Special Board Meeting Agenda Packet- Page 126 of 260
NNUALCOMPREHENSIV
FINANCIAL REPORT
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Page 24 of 106
Fl. MAZE
& ASSOCIATES
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 of the Central Contra Costa
Sanitary District (District) as of and for the years ended June 30, 2021 and 2020, 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 of the Central Contra Costa Sanitary District as of June 30,2021 and
2020, 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.
Change in Accounting Principles
Management adopted the provisions of Governmental Accounting Standards Board Statement No. 84 —Fiduciary
Activities,which became effective during the year ended June 30,2021 and established the new fund type, Custodial
Funds,and eliminated the fund type of Agency Funds as discussed in Note 1 M to the financial statements.
T 925.930.0902
Accountancy Corporation F 925.930.0135
3478 Buskirk Avenue,Suite 215 a maze@mazeassociates.com
Pleasant Hill,CA 94523 w mazeassociates.com
January 13, 2022 Special Board Meeting Agenda Packet- Page 128 of 260
Page 25 of 106
Management early adopted the provisions of Governmental Accounting Standards Board Statement No. 98 — The
Annual Comprehensive Financial Report which changes the name of the Comprehensive Annual Financial Report to
Annual Comprehensive Financial Report.
Report on Summarized Comparative Information
We have previously audited the District's June 30,2020 financial statements, and we expressed an unmodified audit
opinions on those audited financial statements in our report dated December 3, 2020. In our opinion, the
summarized comparative information presented herein as of and for the year ended June 30,2020 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.
The Introductory and Statistical 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 28, 2021
2
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` Central Contra Costa Sanitary District
Protecting public r the environmentI Place,
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 30,2021 (2020-21). This
information is presented in conjunction with the audited financial statements, which follow this report.
FINANCIAL HIGHLIGHTS
The District's 2020-21 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 $57.7 million or 7.52% in 2020-21. This
increase is primarily due to the additional pension-related deferred outflows and negative pension
expense adjustment recognized as a result of a$70.8 contribution made to the Contra Costa County
Employee Retirement Association, the District's pension plan administrator. This significant
contribution was made in June 2021 to pay off the pension plan's Unfunded Actuarily Accrued
Liability (URAL) in conjunction with the issuance of the 2021 Wastewater Revenue Certificates
of Participation (COPS). COPS in the amount of$58.0 million were issued to finance a portion of
the capital improvement budget in the current and following fiscal years, allowing for the
redirection sewer service charges from the District's capital budget to its operating and
maintenance budget.
• Total revenues in 2020-21 increased by$5.2 million or 4.64%. Despite the Board's action in May
2020 to freeze the sewer service charge rate increase scheduled for 2020-21 as a customer relief
measure in response to customer hardships faced by the pandemic, revenue attributable to sewer
service charges and secured property taxes still grew over the prior year due to continued property
value growth and development increasing the District's regional customer base. While total annual
sewer service charge rate was previously approved to increase by 5.18%(to$629)for single family
homes and 5.30% (to $569) for multi-family homes, the Board-approved customer relief measure
resulted in these increases not being collected in 2020-21. Increased property values in the service
area led to an increase in property taxes of$1.6 million or 8.69%.
• Total 2020-21 expenses increased by $4.7 million or 4.61%. This increase is largely attributable
to budget savings in the prior fiscal year from temporary operational setbacks and disruptions
following the shelter-in-place mandates by the State and County in response to the COVID-19
pandemic in the Spring of 2020.
• Capital Contributions decreased in 2020-21 by$6.4 million or 12.1%. The decrease is mainly due
to a decrease in contributions from the City of Concord for its share of treatment plant and other
eligible capital project costs as well as a reduced allocation of sewer service charges allocated to
finance the capital improvement budget following the issuance of the 2021 Wastewater
Certificates of Participation (2021 COPS) in June 2021.
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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.
• 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:
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Table 1 - Condensed Statement of Net Position
Year Ending June 30 2021 vs.2020 2021 vs.2019
$Increase %Increase $Increase %Increase
2021 2020 2019 (Decrease) (Decrease) (Decrease) (Decrease)
Assets
Current assets $136,391,239 $164,102,632 $138,987,589 $(27,711,393) -16.89% $ (2,596,350) -1.87%
Capital assets,net 760,567,573 711,564,564 677,392,935 49,003,009 6.89% 83,174,638 12.28%
Other non-current assets 36,572,236 11,478,481 9,752,616 25,093,755 218.62% 26,819,620 275.00%
Total assets 933,531,048 887,145,677 826,133,140 46,385,371 5.23% 107,397,908 13.00%
Deferred outflows
Pension related 95,805,386 26,670,166 46,715,613 69,135,220 259.22% 49,089,773 105.08%
OPEB related 4,117,730 2,176,533 2,836,089 1,941,197 89.19% 1,281,641 45.19%
Total deferred outflows 99,923,116 28,846,699 49,551,702 71,076,417 246.39% 50,371,414 101.65%
Liabilitie s
Current liabilities 28,102,111 15,854,317 14,404,545 12,247,794 77.25% 13,697,566 95.09%
Long-term liabilities 119,474,622 97,013,922 126,547,399 22,460,700 23.15% (7,072,777) -5.59%
Total liabilities 147,576,733 112,868,239 140,951,944 34,708,494 30.75% 6,624,789 4.70%
Deferred inflows
Pension related 48,100,435 30,761,867 23,736,976 17,338,568 56.36% 24,363,459 102.64%
OPEB related 12,287,769 4,601,542 6,864,360 7,686,227 100.00% 5,423,409 79.01%
Total deferred inflows 60,388,204 35,363,409 30,601,336 25,024,795 70.76% 29,786,868 97.34%
Net position
Net investment in capital assets 684,834242 692,117,172 655,586,304 (7,282,930) -1.05% 29,247,938 4.46%
Restricted 34,929,105 2,639 (271,370) 34,926,466 -1323473.51% 35,200,475 -12971.40%
Unrestricted 105,725,880 75,640,917 48,816,628 30,084,963 39.77% 56,909,252 -116.58%
Total net position $825,489,227 $767,760,728 $704,131,562 $ 57,728,499 7.52% 8121,357,665 17.24%
The total net position of the District increased from $704.1 million in 2018-19 to $767.8 million in 2019-
20 and increased to $825.5 million in 2020-21. The District's total assets have increased by$46.4 million
or 5.23% compared to 2019-20, and $107.4 million or 13.0% compared to 2018-19. Total liabilities
increased$34.7 million or 30.75% compared to 2019-20 and increased$6.6 million or 4.7% compared to
2018-19. The increase in net position over the three-year period totals$121.4 million,or 17.24%,resulting
largely from the District's transition to CalPERS for healthcare insurance, creating short and long-term
savings through more affordable health premiums for active and retired employee participants as well as
a significant increase in capital contributions for a largely pay-as-you-go capital program over that three
year timeframe.
As a public utility relying heavily on a complex infrastructure network, unsurprisingly by far the largest
portion of the District's net position(83.0%) 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 generally
be used to discharge these liabilities. The balance of$105.7 million in unrestricted net position increased
by $30.1 million from 2019-20 and increased by $56.9 million from 2018-19. As noted previously, this
increase was primarily a result of the District transitioning to a more economical provider for healthcare
insurance, reducing current healthcare premiums for active and retired employee participants as well as
resulting in significant reductions to the long-term net OPEB liability.
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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 2021 vs.2020 2021 vs.2019
$Increase %Increase $Increase %Increase
2021 2020 2019 (Decrease) (Decrease) (Decrease) (Decrease)
Revenues:
Operating revenues
Sewer service charges $ 87,327,907 $ 85,332,494 $ 83,862,200 $ 1,995,413 2.34% $ 3,465,707 4.13%
Other 1,914,654 1,890,285 1,815,966 24,369 1.29% 98,688 5.43%
Total operating revenue 89,242,561 87,222,779 85,678,166 2,019,782 2.32% 3,564,395 4.16%
Non-operating revenues
Property taxes 20,516,826 18,876,886 18,251,794 1,639,940 8.69% 2,265,032 12.41%
Permit and inspection fees 2,440,187 2,251,245 2,648,708 188,942 8.39% (208,521) -7.87%
Investment earnings 1,678,028 2,310269 2,573,964 (632,241) -27.37% (895,936) -34.81%
Other 3,193,569 1,219,811 1,424,520 1,973,758 161.81% 1,769,049 124.19%
Total non-operating revenue 27,828,610 24,658,211 24,898,986 3,170,399 12.86% 2,929,624 11.77%
Total revenues 117,071,171 111,880,990 110,577,152 5,190,181 4.64% 6,494,019 5.87%
Expenses
Operating expense other than depreciation 83,913,477 79,462,379 52,295,571 4,451,098 5.60% 31,617,906 60.46%
Depreciation 21,531,302 21,253,062 20,983,353 278,240 1.31% 547,949 2.61%
Non-operating expenses 542,226 604,851 1,025,006 (62,625) -10.35% (482,780) -47.10%
Total expenses 105,987,005 101,320,292 74,303,930 4,666,713 4.61% 31,683,075 42.64%
Income before capital contributions 11,084,166 10,560,698 36,273,222 523,468 4.96% (25,189,056) -69.44%
Capital contributions 46,644,333 53,068,468 46,886,850 (6,424,135) -12.11% (242,517) -0.52%
Increase in net position 57,728,499 63,629,166 83,160,072 (5,900,667) -9.27% (25,431,573) -30.58%
Beginning net position,as restated 767,760,728 704,131,562 620,971,490 63,629,166 9.04% 146,789,238 23.64%
Ending net position $825,489,227 $767,760,728 $704,131,562 $ 57,728,499 7.52% $121,357,665 17.24%
Revenue
Total operating revenues increased from $85.7 million in 2018-19 to $87.2 million in 2019-20 and
increased to $89.2 million in 2020-21. Operating revenues increased by $2.0 million or 2.32% compared
to 2019-20 and increased by $3.6 million or 4.2% comparing 2020-21 to 2018-19. This modest increase
in operating revenues is largely attributable to a slight decrease in the proportion of sewer service charges
allocated to the capital improvement program, which is reported as non-operating capital contributions,
following the issuance of the 2021 COPS and related payoff of the pension plan UAAL in June 2021 (after
the actuarial measurement date).
Total non-operating revenue decreased from $24.9 million in 2018-19 to $24.7 million in 2019-20 and
increased to $27.8 million in 2020-21. Total non-operating revenues in 2020-21 increased compared to
2019-20 by$3.2 million or 12.86%and increased by$2.9 million or 11.77%comparing 2020-21 to 2018-
19.
Total revenues increased from $110.6 million in 2018-19 to $111.9 million in 2019-20 and increased to
$117.1 million in 2020-21. The change in total revenue represented an increase of$5.2 million or 4.64%
comparing 2020-21 to 2019-20 and an increase of$6.5 million or 5.87% comparing 2020-21 to 2018-19.
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As described previously, despite the Board's action in May 2020 to freeze the sewer service charge rate
increase scheduled for 2020-21 as a customer relief measure in response to customer hardships faced by
the pandemic,revenue attributable to sewer service charges and secured property taxes still grew over the
prior year due to continued property value growth and development increasing the District's regional
customer base. While total annual sewer service charge rate was previously approved to increase by
5.18%(to$629)for single family homes and 5.30%(to$569)for multi-family homes,the Board-approved
customer relief measure resulted in these increases not being collected in 2020-21. Property tax revenue
increased by$1.6 million or 8.69%from 2019-20 to 2020-21, and$2.3 million or 12.4%comparing 2020-
21 to 2018-19 due to the continued increase in assessed property values, a healthy real estate market, and
development of residential and commercial real estate in the region.
Expenses
Total expenses increased from $74.3 million in 2018-19 to $101.3 million in 2019-20 and increased to
$106.0 million in 2020-21. In 2020-21, total expenses increased by $4.7 million or 4.61% compared to
2019-20. Comparing 2020-21 to 2018-19,total expenses were $31.7 million or 42.64%higher. As noted
previously, this increase is largely attributable to budget savings in the prior fiscal year from temporary
operational setbacks and disruptions following the shelter-in-place mandates by the State and County in
response to the COVID-19 pandemic in the Spring of 2020. Non-operating expenses are mainly driven
by interest expense.
Total income before capital contributions went from $36.3 million in 2018-19, to $10.6 million in 2019-
20, and increased to $11.1 million in 2020-21. The significant reduction from 2018-19 to 2019-20 was
driven largely by savings attributable to the transition to Ca1PERS healthcare as noted previously.
Total capital contributions in 2020-21 were$46.6 million compared to$53.1 million in 2019-20 and$46.9
million in 2018-19. This decrease was mainly derived from a decrease in the allocation of sewer service
charges to the capital program following the issuance of the 2021 COPs and payoff of the pension UAAL
in June 2021 as described previously.
CAPITAL ASSETS
Net capital assets for fiscal years 2020-21, 2019-20 and 2018-19 totaled $760.6 million, $711.6 million,
and $677.4 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 the District's capitalization policy limit of $5,000, less
depreciation. As of June 30, 2021, the District's investment in capital assets totaled $760.6 million, an
increase of$49.0 million or 43.8% over the net capital asset balance of$711.6 million at June 30, 2020.
Net capital assets increased by $83.1 million or 12.3% comparing 2020-21 to 2018-19. 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 2021 vs.2020 2021 vs.2019
$Increase %hicrease $hicrease %Increase
2021 2020 2019 (Decrease) (Decrease) (Decrease) (Decrease)
Structures,buildings,and
equipment $631,932,004 $613,794,504 $609,205,177 $18,137,500 3.0% $22,726,827 3.7%
Land and rights of way 22,290,077 22,290,077 22,270,077 - 0.0% 20,000 0.1%
Construction in progress 106,345,492 75,479,983 45,917,681 30,865,509 40.9% 60,427,811 131.6%
Total 760,567,573 711,564,564 677,392,935 49,003,009 43.8% 83,174,638 12.3%
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The increase in capital assets, net of depreciation, of$49.0 million from 2019-20 to 2020-21 and $83.2
million from 2018-19 to 2020-21 is a result of an expanding capital improvement program over these
years, where spending has exceeded annual depreciation and recent capital spending being largely
financed by pay-as-you-go resources rather than debt. This year's major addition to construction-in-
progress includes the following:
Project Description Capital Outlay
Moraga/Crossroads pump station project(8436) $ 14,148,216
Filter Plant&Clearwell Improvements Ph. lA(7361) 8,068,424
Outfall Improvements Ph.7(7353) 5,054,203
WC Sewer Renovations Ph. 14(8460) 4,155,140
Martinez Sewer Renovation Ph.6(8458) 3,665,295
Lafayette Sewer Renovation Ph 14(8459) 3,362,734
Danville Sewer Renovation Ph 3(8456) 3,006,827
ERP Replacement(8250) 2,739,651
Solids Handling Facility Improvements (7348) 2,720,704
So.Orinda Sewer Renovation Ph.8(8461) 2,372,923
Total $ 49,294,117
Refer to Note 5 in the audited financial statements for additional details on the District's capital assets.
DEBT ADMINISTRATION
The total debt obligations, excluding liabilities related to pension, OPEB and compensated absences
liabilities, for fiscal years 2020-21, 2019-20 and 2018-19 totaled $75.7 million, $19.4 million, and $21.8
million, respectively. As of June 30, 2021,the District's outstanding debt totaled $75.7 million, which is
an increase of$56.3 million or 289.4% over the debt balance of$19.4 million at June 30, 2020. Debt
increased by$53.9 million or 247.3%comparing 2020-21 to 2018-19. The increase in debt obligations is
due to the issuance of the 2021 COPS in the amount of$58.0 million. The primary source of funds pledged
to and securing the repayment of debt issuances for the capital improvement program is ad valorem
secured property taxes. Refer to Note 6 for additional information on the District's outstanding debt
obligations.
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:
• 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.
• The economic cycle, creating volatility with capacity/connection fee revenues as new development
projects are highly sensitive to the economic cycle.
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• 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. Higher than anticipated inflation may also adversely impact spending for contracted services,
energy, chemicals, and other materials/supplies necessary for wastewater collection and treatment
services.
• Changes in assessed property values, which affect the District's non-operating ad valorem secured
property tax revenue. When the housing market grows, overall assessed property values increase,
thereby increasing the District's property tax revenues. 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 2020, the
District's Board of Directors adopted an operating and maintenance budget of$90.7 million and sewer
construction capital improvement budget of $88.0 million for the fiscal year ending June 30,
2021. 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.
While the Board-approved customer relief measures effectively froze sewer service charge rates in the
fiscal year ended June 30, 2021, sewer service charge rates for the fiscal year ending June 30, 2022 return
back to the rates previously adopted by the Board in 2019. Accordingly, next fiscal year sewer service
charges will include the 5.25% rate increase not collected in 2020-21 as well as the 4.75% rate increase
previously approved and scheduled for 2021-22. While forgone for one year due to unprecedented
challenges faced during the pandemic, these approved rate increases are critical to meet the needs of an
greatly expanded capital improvement program in the next few years. As designed in the District's
financial model, steady but controlled sewer service charge rate increases help prevent spikes in revenue
needs from customers in future years when annual capital spending is expected to significantly, but
temporarily, outpace annual revenues. This pay-as-you-go approach, paired with necessary debt
financing, ultimately helps to achieve rate stability. Primary drivers for the expansion of the capital
improvement program include the need to enhance and modernize the District's ageing infrastructure to
meet new regulatory requirements and ensure the sustainability of its infrastructure as the region's
population grows driving an increased demand for service capacity.
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 accountability and transparency for the rate and tax payer
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 30,2021 AND 2020
ASSETS 2021 2020
CURRENT ASSETS
Cash and cash equivalents(Note 2) $49,027,092 $111,856,324
Short term investments(Note 2) 54,700,000 20,000,000
Accounts receivable,net(Note 3) 27,009,462 27,985,589
Employee computer loans receivable(Note 3) 10,684 12,893
Interest receivable 37,772 256,559
Parts and supplies 3,086,194 2,295,555
Prepaid expenses 2,520,035 1,695,712
Total current assets 136,391,239 164,102,632
NON-CURRENT ASSETS
Restricted cash and cash equivalents(Notes I.F.and 2) 35,076,226 10,422,954
Assessment Districts receivable(Note 4) 1,496,010 1,055,527
Capital assets:
Nondepreciable(Note 5) 128,635,569 97,770,060
Depreciable,net of accumulated depreciation(Note 5) 631,932,004 613,794,504
Total capital assets,net 760,567,573 711,564,564
Total non-current assets 797,139,809 723,043,045
TOTAL ASSETS 933,531,048 887,145,677
DEFERRED OUTFLOWS OF RESOURCES
Pension related(Note 9) 95,805,386 26,670,166
OPEB related(Note 10) 4,117,730 2,176,533
Total deferred outflows of resources 99,923,116 28,846,699
(Continued)
See accompanying notes to financial statements
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CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF NET POSITION
JUNE 30,2021 AND 2020
LIABILITIES 2021 2020
CURRENT LIABILITIES
Accounts payable and accrued expenses $15,161,757 $11,785,558
Interest payable 248,632 269,772
Current portion of long-term obligations(Note 6) 10,450,000 1,740,000
Accrued compensated absences-current portion(Note 1.J.) 509,400 535,200
Provision for uninsured claims(Note 7) 1,455,065 1,221,293
Refundable deposits 277,257 302,494
Total current liabilities 28,102,111 15,854,317
NON-CURRENT LIABILITIES
Non-current portion of long-term obligations(Note 6) 65,283,331 17,707,392
Accrued compensated absences,noncurrent portion(Note 1.J.) 4,584,692 4,817,572
Net pension liability(Note 9) 48,886,895 64,117,450
Net OPEB liability(Note 10) 719,704 10,371,508
Total non-current liabilities 119,474,622 97,013,922
TOTAL LIABILITIES 147,576,733 112,868,239
DEFERRED INFLOWS OF RESOURCES
Pension related(Note 9) 48,100,435 30,761,867
OPEB related(Note 10) 12,287,769 4,601,542
Total deferred inflows of resources 60,388,204 35,363,409
NET POSITION(Note 11)
Net investment in capital assets 684,834,242 692,117,172
Restricted for debt service 34,929,105 2,639
Unrestricted 105,725,880 75,640,917
TOTAL NET POSITION $825,489,227 $767,760,728
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 30,2021 AND 2020
2021 2020
OPERATING REVENUES
Sewer service charges(SSC) $72,325,340 $70,408,903
Service charges-City of Concord(Note 8) 15,002,567 14,923,591
Other services charges 1,171,378 1,176,242
Miscellaneous charges 743,276 714,043
Total operating revenues 89,242,561 87,222,779
OPERATING EXPENSES
Sewage collection and pumping stations 18,183,752 16,671,998
Sewage treatment 24,783,779 26,998,492
Engineering 15,278,784 15,564,466
Recycled water 2,037,788 1,205,526
Administrative and general 94,563,373 21,408,746
Pension expense adjustments (67,027,225) 757,666
OPEB expense adjustments (3,906,774) (3,144,515)
Depreciation(Note 5) 21,531,302 21,253,062
Total operating expenses 105,444,779 100,715,441
OPERATING(LOSSES) (16,202,218) (13,492,662)
NONOPERATING REVENUES(EXPENSES)
Taxes 20,516,826 18,876,886
Permit and inspection fees 2,440,187 2,251,245
Interest earnings 1,678,028 2,310,269
Interest expense (542,226) (604,851)
Other income(expense),net 3,193,569 1,219,811
Total nonoperating revenues(expenses),net 27,286,384 24,053,360
INCOME BEFORE CAPITAL CONTRIBUTIONS 11,084,166 10,560,698
CAPITAL CONTRIBUTIONS
City of Concord contributions to capital costs(Note 8) 10,064,155 11,393,000
Customer contributions to capital cost(SSC) 30,156,394 32,829,958
Contributed sewer lines 923,468 1,761,808
Connection fees 5,500,316 7,083,702
Total capital contributions 46,644,333 53,068,468
CHANGE IN NET POSITION 57,728,499 63,629,166
NET POSITION,BEGINNING OF YEAR 767,760,728 704,131,562
NET POSITION,END OF YEAR $825,489,227 $767,760,728
See accompanying notes to financial statements
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CENTRAL CONTRA COSTA SANITARY DISTRICT
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30,2021 AND 2020
2021 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers $89,780,414 $84,135,233
Payments to suppliers (43,269,319) (43,500,766)
Payments to employees and related benefits (180,801,046) (36,604,529)
Net cash provided by operating activities (134,289,951) 4,029,938
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Receipt of taxes 20,516,826 18,876,886
Inspection/permit fees and other non-operating income 5,633,756 3,471,056
Net cash provided by noncapital financing activities 26,150,582 22,347,942
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Capital contributions 40,220,549 44,222,958
Connection fees 5,500,316 7,083,702
Acquisition and construction of capital assets (69,610,843) (53,662,883)
Interest paid on long-term debt (563,366) (623,584)
Proceeds from issuance of debt 50,570,000
Bond premium 7,870,179
Principal payments on long-term debt (2,154,240) (2,359,239)
Net cash used for capital and related financing activities 31,832,595 (5,339,046)
CASH FLOWS FROM INVESTING ACTIVITIES
Redemption of investments 145,000,000 100,000,000
Acquisition of investments (179,700,000) (67,000,000)
Interest received 1,896,815 2,053,710
Net cash provided by investing activities (32,803,185) 35,053,710
NET INCREASE(DECREASE)IN CASH (109,109,959) 56,092,544
Cash,beginning of year 122,279,278 66,186,734
Cash,end of year $13,169,319 $122,279,278
(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 30,2021 AND 2020
2021 2020
Reconciliation of operating(loss)to net cash provided by
operating activities:
Operating income(losses) ($87,136,217) ($13,492,662)
Adjustments to reconcile operating losses to cash
flows from operating activities:
Depreciation 21,531,302 21,253,062
Changes in assets and liabilities:
Receivables,net 537,853 (3,087,546)
Parts and supplies (790,639) (109,557)
Prepaid expenses (824,323) (294,702)
Accounts payable and accrued expenses 3,376,199 1,828,812
Accrued payroll and related expenses (258,680) 305,169
Refundable deposits (25,237) (49,303)
Claims 233,772 63,496
Net pension liability (67,027,207) 757,684
Net OPEB liability (3,906,774) (3,144,515)
Net cash provided(used)by operating activities ($134,289,951) $4,029,938
SCHEDULE OF NON CASH ACTIVITY
Change in fair value of investments $1,896,815 $2,053,710
Capital contributions 923,468 1,761,808
Total non cash activity $2,820,283 $3,815,518
CASH AND CASH EQUIVALENTS,AS PRESENTED ON
STATEMENT OF NET POSITION:
Unrestricted cash and cash equivalents $49,027,092 $111,856,324
Restricted cash and cash equivalents 35,076,226 10,422,954
Total cash and cash equivalents at end of year $84,103,318 $122,279,278
See accompanying notes to financial statements
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2021 and 2020
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 30,2021 and 2020
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 30,2021 and 2020
NOTE 1 —DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
C. Investments
Investments held at June 30, 2021 and 2020 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.
G. Parts and Supplies
Parts and supplies are valued at average cost and are used primarily for internal purposes.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2021 and 2020
NOTE 1 —DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
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 1'/z 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 30,2021 and 2020
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 (the last employee hired
prior to this date retired during the fiscal year ending June 30, 2021). 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:
2021 2020
Beginning Balance $5,352,772 $5,047,603
Additions 283,779 755,277
Payments (542,459) (450,108)
Ending Balance $5,094,092 $5,352,772
Current Portion $509,400 $535,200
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 30,2021 and 2020
NOTE 1 —DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
M. New Governmental Accounting Standards Board Statement Pronouncement
GASB 84 — Fiduciary Activities — The objective of this Statement is to improve guidance
regarding the identification of fiduciary activities for accounting and financial reporting purposes
and how those activities should be reported. The District implemented the provisions of this
Statement during the year ended June 30, 2021. As a result, the District determined that the
activities of the Other Post-Employment Benefit Trust Fund should no longer be reported in the
Other Post-Employment Benefit Trust Fund, since the District does not have control of the assets
of the OPEB Plan as a whole. Therefore, the Other Post-Employment Benefit Trust Fund is no
longer reported in the financial statements as of July 1,2020.
N. Prior-Period Comparative Statements
The basic financial statements include certain prior-year summarized comparative information in
total, but not at the level of detail required for a presentation in accordance with generally
accepted accounting principles. Accordingly, such information should be read in conjunction
with the District's financial statements for the year ended June 30, 2020, from which the
summarized information was derived.
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:
2021 2020
Cash and cash equivalents $49,027,092 $111,856,324
Short term investments 54,700,000 20,000,000
Restricted cash and cash equivalents 35,029,105 100,000
Total District Cash and Investments 138,756,197 131,956,324
Cash and Investments held with Pension Trust 47,121 10,322,954
Total Cash and Investments $138,803,318 $142,279,278
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2021 and 2020
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 Maximum Maximum Percentage Minimum
Remaining Percentage Investment of Portfolio Credit
Authorized Investment Type Maturity of Portfolio In One Issuer (Per Issuer) Quality
U.S.Treasury Obligations 5 years None None 100% N/A
U.S.Government Agency Issues 5 years None None 100% N/A
Money Market Funds N/A 20% 10% 10% A
Negotiable Certificates of Deposit 5 years 30% None 5% AA
Banker's Acceptances 180 40% 40% 5% N/A
Commercial Paper(1) 270 25% 10% 10% A-1
Medium Term Notes 5 years 30% None 5% AA
Collateralized Certificates of Deposit(2) 5 years None None 20% 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 $75 million 100% N/A
Government Investment Pools(CAMP,CalTrust,etc) N/A None $75 million 100% N/A
(1)Prime quality;limited to corporations with assets over$500,000,000
(2)Prior approval of the Board of Directors must be obtained to acquire maturities beyond one year,excluding
Treasury Notes and LAIF.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2021 and 2020
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:
2021
Investment Type Level Total
Investments Reported at Fair Value:
U.S.Treasury Obligations $25,000,000 $25,000,000
Total $25,000,000 25,000,000
Investments Measured at Amortized Cost:
Money Market Funds 386,779
External Investment Pool(Exempt):
California Local Agency Investment Fund 29,700,000
Investments Exempt from Fair Value Ifierarchy:
Restricted Cash 34,642,326
Cash and Investments held with Pension Trust 47,121
Cash in bank and On Hand 49,027,092
Total Cash and Investments $138,803,318
U.S. Treasury Obligations totaling $25 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 30,2021 and 2020
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:
2020
Investment Type Level 2 Total
Investments Reported at Fair Value:
U.S. Federal Agency Securities -FHLB $20,000,000 $20,000,000
Total Investments $20,000,000 20,000,000
Investments Exempt from Fair Value Hierarchy:
California Local Agency Investment Fund 75,000,000
Total Investments 95,000,000
Cash and Investments held with Pension Trust 10,322,954
Cash in bank 36,956,324
Total Cash and Investments $142,279,278
U.S. Federal Agency Securities totaling $20 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.
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 may not exceed five years, 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 30,2021 and 2020
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:
2021
12 Months
Investment Type or less Maturity
U.S Treasury Obligations $25,000,000 7/15/2021
California Local Agency Investment Fund 29,700,000
Money Market Funds 386,779
Total 55,086,779
Restricted Cash 34,642,326
Restricted Cash and Investments held with Pension Trust 47,121
Cash in bank 49,027,092
Total Cash and Investments $138,803,318
2020
12 Months
Investment Type or less Maturity
U.S Federal Agency Securities-FHLB $20,000,000 9/25/2020
California Local Agency Investment Fund 75,000,000
Total Investments 95,000,000
Restricted Cash 100,000
Restricted Cash and Investments held with Pension Trust 10,322,954
Cash in bank 36,856,324
Total Cash and Investments $142,279,278
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,
2021 and 2020, these investments had weighted average maturities of 291 and 191 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.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2021 and 2020
NOTE 2—CASH AND INVESTMENTS (Continued)
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 2021 2020
Rated P-1:
U.S.Treasury Obligations $25,000,000
U.S.Federal Agency Securities $20,000,000
Money Market Funds 386,779
Total Rated Investments 25,386,779 20,000,000
Not rated:
California Local Agency Investment Fund 29,700,000 75,000,000
Restricted Cash and Cash Equivalents 34,642,326 100,000
Cash and Investments held with Pension Trust 47,121 10,322,954
Cash in Bank 49,027,092 36,856,324
Total Cash and Investments $138,803,318 $142,279,278
G. Concentration of Credit Risk
There are no covered investments that represent in excess of 5% of the District's total
investments as of June 30,2021.
H. Custodial Credit Risk—Investments
Custodial risk for investments is the risk that, in the event of the failure of the counterparty (e.g.
the broker-dealer) to a transaction, a government will not be able to recover the value of its
investment or collateral securities that are in the possession of another party. The California
Government Code does not contain legal or policy requirements that would limit the exposure to
custodial credit risk. As a voluntary pool participant, the County Treasurer's office transacts 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.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2021 and 2020
NOTE 3—ACCOUNTS RECEIVABLE
Accounts receivable for the years ended June 30 are comprised of the following:
2021 2020
City of Concord(see Note 8) $25,112,937 $26,362,258
Household Hazardous Waste Partners 1,077,027 832,005
All Other 819,498 791,326
Total Accounts Receivable $27,009,462 $27,985,589
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:
2021 2020
Employee Computer Loans $12,893 $15,736
Additions 11,123 11,640
Payments (13,332) (14,483)
Total Loan Receivable $10,684 $12,893
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, 2021 and 2020 was $914,700 and $339,613,
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, 2021 and 2020 was
$581,310 and$715,914,respectively.
The total receivable balance at June 30, 2021 and 2020 for CAD and AVAD was $1,496,010 and
$1,055,527,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 30,2021 and 2020
NOTE 5—CAPITAL ASSETS
Property, plant and equipment, and construction in progress are summarized below for the year ended
June 30,2021:
Balance at Transfers& Balance at
June 30,2020 Additions Retirements Adjustments June 30,2021
Capital assets not being depreciated:
Land $17,320,570 $17,320,570
Easements(intangible) 4,969,507 4,969,507
Construction in Progress 75,479,983 $69,610,843 ($38,745,334) 106,345,492
Total nondepreciated assets 97,770,060 69,610,843 (38,745,334) 128,635,569
Capital assets being depreciated:
Sewage collection system 412,002,475 ($1,600,000) 5,147,655 415,550,130
Contributed sewer lines 164,093,221 923,468 (92,846) 1,096,657 166,020,500
Outfall sewers 11,371,574 11,371,574
Sewage treatment plant 358,464,912 (1,040,000) 21,912,538 379,337,450
Recycled water infrastructure 20,451,891 (1,000,000) 7,920,957 27,372,848
Pumping stations 57,327,020 202,089 57,529,109
Buildings 44,439,279 299,598 44,738,877
Furniture and equipment 15,276,163 1,068,066 16,344,229
Motor vehicles 8,711,241 (338,233) 1,097,774 9,470,782
Enterprise software 3,365,658 3,365,658
Total depreciated assets 1,095,503,434 923,468 (4,071,079) 38,745,334 1,131,101,157
Less accumulated depreciation:
Sewage collection system 84,206,907 5,601,580 (1,600,000) 88,208,487
Contributed sewer lines 65,806,229 2,172,218 (92,846) 67,885,601
Outfall sewers 4,071,165 150,553 4,221,718
Sewage treatment plant 243,532,001 7,844,525 (1,040,000) (3,650,507) 246,686,019
Recycled water infrastructure 10,899,878 727,687 (1,000,000) 3,650,507 14,278,072
Pumping stations 39,171,133 1,862,006 41,033,139
Buildings 16,704,923 1,284,668 17,989,591
Furniture and equipment 11,520,782 996,530 12,517,312
Motor vehicles 5,291,063 554,969 (338,233) 5,507,799
Enterprise software 504,849 336,566 841,415
Total accumulated depreciation 481,708,930 21,531,302 (4,071,079) 499,169,153
Total capital assets being
depreciated,net 613,794,504 (20,607,834) 38,745,334 631,932,004
Capital assets,net $711,564,564 $49,003,009 $760,567,573
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2021 and 2020
NOTE 5—CAPITAL ASSETS(Continued)
Property, plant and equipment, and construction in progress are summarized below for the year ended
June 30,2020:
Balance at Transfers& Balance at
June 30,2019 Additions Retirements Adjustments June 30,2020
Capital assets not being depreciated:
Land $17,320,570 $17,320,570
Easements(intangible) 4,949,507 $20,000 4,969,507
Construction in Progress 45,917,681 $53,662,883 (24,100,581) 75,479,983
Total nondepreciated assets 68,187,758 53,662,883 (24,080,581) 97,770,060
Capital assets being depreciated:
Sewage collection system 394,084,852 ($3,000) 17,920,623 412,002,475
Contributed sewer lines 162,344,781 1,761,808 (35,836) 22,468 164,093,221
Outfall sewers 11,371,574 11,371,574
Sewage treatment plant 354,976,293 3,488,619 358,464,912
Recycled water infrastructure 20,292,366 159,525 20,451,891
Pumping stations 57,327,020 57,327,020
Buildings 44,379,479 59,800 44,439,279
Furniture and equipment 14,579,938 (40,750) 736,975 15,276,163
Motor vehicles 7,490,960 (472,290) 1,692,571 8,711,241
Enterprise software 3,365,658 3,365,658
Total depreciated assets 1,070,212,921 1,761,808 (551,876) 24,080,581 1,095,503,434
Less accumulated depreciation:
Sewage collection system 78,758,161 5,451,745 (2,999) 84206,907
Contributed sewer lines 63,652,332 2,189,734 (35,837) 65,806,229
Outfall sewers 3,919,770 151,395 4,071,165
Sewage treatment plant 235,704,155 7,827,846 243,532,001
Recycled water infrastructure 10,355,662 544,216 10,899,878
Pumping stations 37,309,198 1,861,935 39,171,133
Buildings 15,427,731 1,277,192 16,704,923
Furniture and equipment 10,415,521 1,146,011 (40,750) 11,520,782
Motor vehicles 5,296,931 466,422 (472,290) 5,291,063
Enterprise software 168,283 336,566 504,849
Total accumulated depreciation 461,007,744 21,253,062 (551,876) 481,708,930
Total capital assets being
depreciated,net 609,205,177 (19,491,254) 24,080,581 613,794,504
Capital assets,net $677,392,935 $34,171,629 $711,564,564
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2021 and 2020
NOTE 6—LONG-TERM DEBT
A. Summary of Activity
The changes in the District's long-term obligations during the year ended June 30,2021 consisted
of the following:
Original Amount
Issue Balance Balance due within
Amount June 30,2020 Additions Retirements June 30,2021 one year
2018 Series A Wastewater Revenue
Refunding Bonds
1.39-2.34%,due 9/1/2029 $15,135,000 $15,135,000 $1,225,000 $13,910,000 $1,270,000
2018 Series B Wastewater Revenue
Refunding Bonds
2.62-3.12%,due 9/1/2023 4,315,000 2,170,000 515,000.00 1,655,000 535,000
2021 Wastewater Revenue Certificates
of Participation
0.05%-0.62%due 9/1/2028 50,570,000 $50,570,000 50,570,000 8,645,000
Total long-term debt 17,305,000 50,570,000 1,740,000 66,135,000 10,450,000
Add:Unamortized premium
Revenue Bonds/Certificates 2,142,392 7,670,179 214,240 9,598,331
Total Long-Term Debt,net 19,447,392 $58,240,179 $1,954,240 75,733,331 $10,450,000
Less Current Portion (1,740,000) (10,450,000)
Long Term Portion $17,707,392 $65283,331
The changes in the District's long-term obligations during the year ended June 30,2020 consisted
of the following:
Original Amount
Issue Balance Balance due within
Amount June 30,2019 Retirements June 30,2020 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 $1,225,000
2018 Series B Wastewater Revenue
Refunding Bonds
2.62-3.12%,due 9/1/2029 4,315,000 4,315,000 $2,145,000 2,170,000 515,000
Total long-term debt 19,450,000 2,145,000 17,305,000 1,740,000
Add:Unamortized premium
Wastewater Revenue Bonds 2,356,631 214,239 2,142,392
Total Long-Term Debt,net 21,806,631 $2,359,239 19,447,392 $1,740,000
Less Current Portion (2,145,000) (1,740,000)
Long Term Portion S 19,661,631 $17,707,392
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2021 and 2020
NOTE 6—LONG-TERM DEBT(Continued)
B. Debt Service Requirements
The debt service requirements are as follows:
Fiscal Year 2018 Wastewater Revenue Refuding 2021 Wastewater Revenue
Ending Series A Series B Certificates of Participation Total
June 30, Principal Interest Principal Interest Principal Interest Principal Interest
2022 $1,270,000 $663,750 $535,000 $42,477 $8,645,000 $1,734,832 $10,450,000 $2,441,059
2023 1,335,000 598,625 550,000 26,172 8,865,000 1,874,625 10,750,000 2,499,422
2024 1,395,000 530,375 570,000 8,892 5,125,000 1,524,875 7,090,000 2,064,142
2025 1,465,000 458,875 5,630,000 1256,000 7,095,000 1,714,875
2026 1,535,000 383,875 6,165,000 961,125 7,700,000 1,345,000
2027-2031 6,910,000 711,000 16,140,000 998,250 23,050,000 1,709,250
Total $13,910,000 $3,346,500 $1,655,000 $77,541 $50,570,000 $8,349,707 $66,135,000 $11,773,748
C. 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 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.
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 outstanding balance at June 30, 2021 amounted to $15,565,000.
D. 2021 Wastewater Revenue Certificates of Participation
On June 1, 2021, the District issued new Wastewater Revenue Certificates of Participation. The
2021 Wastewater Revenue Certificates of Participation was issued for $50,570,000. The
Certificates were issued to finance certain improvements to the Wastewater System which is
owned and operated by the District. The repayment of the Certificates will come from the
revenues derived from operation of the Wastewater System, tax revenues, consisting of the ad
valorem property taxes received by the District. The first principal payment is due on March 1,
2022 and then September 1 of each year thereafter. Yield ranges from 0.05% to 0.62% for the
Certificates. The outstanding balance at June 30, 2021 amounted to $50,570,000.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2021 and 2020
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. The District also commenced an Enterprise Risk Management
program during the fiscal year ended June 30, 2020, where the primary risks facing the agency
are identified,monitored and reported on to the Board.
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 Hudson Insurance Company 1,000,000 -
Pollution-General Liability Aspen Specialty Ins.Company 1,000,000 5,000-50,000
Commercial Environment Excess Aspen Specialty Ins.Company 1,000,000 5,000-50,000
Special Excess Liability Coverage-ANML Various 15,000,000 500,000
Excess Following Form Liability Policy Allied World Assurance Company(U.S.),Inc. 10,000,000 10,000,000
Employment Practice Liability Indian Harbor Insurance Company 500,000 30,000
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, 2021 to be
$1,455,065.
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 latest report was dated December 23, 2020. For intervening
years, the liability for uninsured claims is reviewed for adequacy based on claims activity during
the intervening period.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2021 and 2020
NOTE 7—RISK MANAGEMENT (Continued)
For fiscal years ended June 30, 2021, 2020, and 2019, settlements have not exceeded insurance
coverage. Changes in the District's estimated liability for retained losses are summarized as
follows as of June 30:
2021 2020 2019
Beginning balance $1,221,293 $1,157,797 $882,230
Provisions for claims incurred in the current year
and changes in the liability for retained-
losses incurred in prior years 596,645 257,075 275,567
Claims paid and/or adjustments (362,873) (193,579)
Ending balance $1,455,065 $1,221,293 $1,157,797
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$15,002,567 and$10,064,155 respectively, for the year ended June 30, 2021, for a total of
$25,066,772. Service charges and contributions to capital costs from the City totaled$14,923,591
and$11,393,000 respectively, for the year ended June 30,2020, for a total of$26,316,591.
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, 2020. 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, 1200 Concord Ave.,
Suite 300, Concord, CA 94523 or on their website at www.cccera.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.
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NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2021 and 2020
NOTE 9—PENSION PLANS(Continued)
The Plans' provisions and benefits in effect at June 30,2021, are summarized as follows:
Miscellaneous
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 months Annual average of highest 36
consecutive months
Annual benefit cap Hired before 1/1/1996-None $153,671
Hired 1/1/1996- 12/31/2012-
�290.000
Minimum Retirement age(with benefit reductions) 50 52
Required employee contribution rates 8.12%-15.42% 11.06%
Required employer contribution rates 50.84% 45.87%
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, 2021, the District's contributions to
the Plan were $17,968,524.
Pension Liabilities,Pension Expenses and Deferred Outflowsl7nflows 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
2021 2020
Miscellaneous $48,886,895 $64,117,450
Total Net Pension Liability $48,886,895 $64,117,450
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, 2020, 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, 2019 rolled forward to December 31, 2020 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.
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NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2021 and 2020
NOTE 9—PENSION PLANS(Continued)
The District's proportionate share of the net pension liability for the Plan as of December 31,
2019,2020, and 2021 were as follows:
Proportionate share of the Plan Fiduciary Net
Reporting Date for Proportion of the Net Pension Liability as a Pension as a
Employer under GASB 68 Net Pension Proportionate share of Covered percentage of its covered percentage of the Total
as of June 30 Liability Net Pension Liability Payroll payroll Pension Liability
2019 6.332% $90,430,104 $33,793,159 267.60% 77.86%
2020 7.420% 64,117,450 36,087,017 177.67% 85.05%
2021 10.594% 48,886,895 37,131,965 131.66% 89.100/0
For the year ended June 30, 2021, the District recognized pension expense of$13,284,517. At
June 30, 2021, 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 $70,944,418
Differences between expected and actual experience 9,049,592 ($1,240,201)
Changes of assumptions or other inputs (4,869,641)
Change in proportion and differences between employer
contributions and proportionate share of contributions 15,811,376 (6,746,064)
Net difference between projected and actual earnings
on pension plan investments (35,244,529)
Total $95,805,386 ($48,100,435)
The $9,152,719 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 30,2022.
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
2022 ($8,617,706)
2023 2,397,163
2024 (13,194,117)
2025 (3,824,807)
Total ($23,239,467)
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NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2021 and 2020
NOTE 9—PENSION PLANS(Continued)
At June 30, 2020, 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 $8,971,970
Differences between expected and actual experience 9,160,932 ($956,369)
Changes of assumptions or other inputs (3,889,681)
Change in proportion and differences between employer
contributions and proportionate share of contributions 8,537,264 (11,042,919)
Net difference between projected and actual earnings
on pension plan investments (14,872,898)
Total $26,670,166 ($30,761,867)
Actuarial Assumptions — The total pension liabilities in the December 31, 2020 actuarial
valuations were determined using the following actuarial assumptions:
Miscellaneous
Valuation Date December 31,2018
Measurement Date December 31,2020
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 Pub-2010 General Healthy Retiree Amount-Weighted
Above-Median 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 (TPL) was 7.00%
as of December 31, 2020 and December 31, 2019. The projection of cash flows used to determine
the discount rate assumed employer and employee contributions will be made at rates equal to the
actuarially determined contribution rates. For this purpose, only employer and employee
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 Plan 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 TPL as of both December 31, 2020 and
December 31,2019.
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NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2021 and 2020
NOTE 9—PENSION PLANS(Continued)
The long-term expected rate of return on pension plan investments was determined in 2021 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 7% 3.53%
Global Infrastructure 3% 7.90%
Private Credit 12% 5.80%
REIT 1% 6.80%
Value Add Real Estate 5% 8.800/0
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 at June 30,2021:
Miscellaneous
I%Decrease 6.00%
Net Pension Liability $108,606,076
Current Discount Rate 7.00%
Net Pension Liability $48,886,895
1%Increase 8.000/0
Net Pension Liability ($34,625)
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NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2021 and 2020
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 Mission Square Retirement (formerly ICMA-RC)
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 $2,795,431 and $2,222,449 to
the Plan during the years ended June 30,2021 and 2020,respectively.
The 401(a) money purchase plan assets are held in trust with Mission Square Retirement
(formerly ICMA-RC) 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 30,2021 and 2020
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 30,2021:
Active employees 272
Inactive employees or beneficiaries currently
receiving benefit payments 261
Inactive employees entitled to but not yet
receiving benefit payments
Total 533
B. Net OPEB Liability
Actuarial Methods and Assumptions—The District's net OPEB liability was measured as of June
30,2021 and the total OPEB liability used to calculate the net OPEB liability was determined by an
actuarial valuation dated July 1, 2020 that was rolled forward using standard update procedures to
determine the $85,326,987 total OPEB liability as of June 30, 2021, based on the following
actuarial methods and assumptions:
Actuarial Assumptions
Valuation Date July 1,2020
Measurement Date June 30,2021
Actuarial Cost Method Entry Age Normal,Level Percent of Pay
Actuarial Assumptions:
Contribution and Funding Policy District contributes full ADC less benefit payments to PARS trust
Benefits payments paid outside the trust
PARS portfolio:Moderate
Long-Term Expected Rate of
Return on Investments 5.75%at June 30,2020
Discount Rate 5.50%at June 30,2021
General Inflation 2.75%Annually
Mortality,Disability,Termination,
Retirement CCCERA 2015-17 Experience Study
Mortality Improvement Mortality improvement projected generationally with Scale MP-2018
Medical Trend Non-Medicare-7%for 2022,decreasing to an ultimate rate of 4%in 2076
Medicare(Non-Kaiser)-6.1%for 2022,decreasing to an ultimate rate of 4%in 2076
Medicare(Kaiser)-5%for 2022,decreasing to an ultimate rate of 4%in 2076
Dental Trend 3.75%annually
Healthcare Participation Currently Covered: 100%
for future Retirees Currently Waived Coverage:95%
Self-Pay Board Members:50%
Changes of assumptions Discount rate was updated based on recent capital market assumptions
Medical trend rate was decreased for Kaiser Senior Advantage plans
Mortality,retirement,disability,and termination rates updated based on
new experience study
Mortality improvement scale was updated to Scale MP-2018
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2021 and 2020
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, 2020
valuation were based on the results of a July 1, 2020 actuarial experience study for the period of
July 1,2020 to June 30, 2021.
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 50.0% 4.56%
Fixed Income 45.0% 0.78%
Cash 5.0% -0.50%
Total 100.0%
Discount Rate — The discount rate used to measure the total OPEB liability was 5.50%. 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 30,2021 and 2020
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 30,2020 $80,359,688 $69,988,180 $10,371,508
Changes Recognized for the Measurement Period:
Adjustment to beginning balance* (138,800) 138,800
Service Cost 2,249,861 2,249,861
Interest on the total OPEB liability 4,616,239 4,616,239
Changes in benefit terms
Differences between expected and actual experiei 3,219,980 3,219,980
Changes of assumptions (464,535) (464,535)
Contributions from the employer 4,654,246 (4,654,246)
Contributions from the employee
Net investment income 14,958,207 (14,958,207)
Benefit payments (4,654,246) (4,654,246)
Administrative expenses (200,304) 200,304
Net changes 4,967,299 14,619,103 (9,651,804)
Balance at June 30,2021 $85,326,987 $84,607,283 $719,704
*Adjustment to reconcile prior year Fiduciary Net Position and PARS audited asset statements
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, 2021, 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(4.50%)or 1-percentage-point higher(6.50%)than the current discount rate:
Net OPEB Liability/(Asset)
Discount Rate-1% Discount Rate Discount Rate+1%
(4.50 %) (5.50%) (6.50%)
$12,453,533 $719,704 ($8,837,363)
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
($9,880,589) $719,704 $13,887,732
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2021 and 2020
NOTE 10—POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
E. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 2021,the District recognized negative OPEB expense of$747,472. At
June 30, 2021, the District reported deferred outflows and inflows of resources related to OPEB
from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between actual and expected experience $2,600,753 ($3,188,293)
Changes of assumptions 1,516,977 (375,201)
Net differences between projected and actual earnings on (8,724,275)
plan investments
Total $4,117,730 ($12287,769)
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
2022 ($2,447,152)
2023 (2,454,751)
2024 (1,714,482)
2025 (1,659,634)
2026 105,980
Total ($8,170,039)
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.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2021 and 2020
NOTE 10—POST EMPLOYMENT HEALTH CARE BENEFITS (Continued)
G. Disclosure of the Other Post-Employment Benefit Plan Trust Fiduciary Fund
The District implemented the provisions of Governmental Accounting Standards Board Statement
No. 84 — Fiduciary Activities during the year ended June 30, 2021. As a result, the District
determined that the Other Post-Employment Benefits Trust Fund fiduciary activities should no
longer be reported as a Fiduciary Fund, since the District does not have control of the assets of the
Public Agencies Post-Retirement Healthcare Plan as a whole. Therefore the Other Post-
Employment Benefits Trust Fund is no longer reported in the financial statements as a fiduciary
fund as of July 1,2020.
NOTE 11—NET POSITION
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:
Fiscal Year
Ending June 30, Facilities Total
2021 $332,642 $332,642
Total $332,642 $332,642
Total rental expense for both the fiscal years ended June 30, 2021 and 2020 was $332,642 and
$320,342,respectively.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30,2021 and 2020
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$59,973,759 and$49,817,490 as of June 30,2021 and 2020,respectively.
NOTE 14—SUBSEQUENT EVENTS
Increase to Self Insurance Reserve
On December 2, 2021 the District's Board approved revisions to its Fiscal Reserves Policy (BP
017), increasing the Catastrophic Loss Emergency Reserve of the Self Insurance Fund from $5.0
million to 7.5 million. The intent of this increase is to capture projected increases in future losses
driven by inflation since the reserve was last increased in 2015. The funding source for this
increase is available reserves in the District's Rate Stabilization Fund Reserve Account.
Approval of State Revolving Loan
On December 9, 2021, the District's application for a state revolving fund loan in the amount of
$173.1 million was authorized by the California State Water Resources Control Board. The loan
is a critical financing element in the District's long-term Capital Improvement Budget,
specifically for the large"Solids Handling Facilities Improvement Project". The December 2021
approved loan will finance the reimbursement of approximately $15.0 million in planning and
design costs of this project. The loan has a 30 year term, maturing on July 31, 2055, with a fixed
interest rate of 0.85% Debt service payments are set to commence one-year following the
completion of construction, anticipated in the fiscal year ending June 30,2025.
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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 30,2021
PROPORTIONATE SHARE OF NET PENSION LIABILITY
Last 10 Fiscal Years'
December 31,
Measurement date 2020 2019 2018 2017 2016 2015 2014
Proportion of the net pension
liability 10.590/0 7.42% 6.33% 7.86% 6.27% 6.09% 7.49%
Proportionate share of the net
pension liability $48,886,895 $64,117,450 $90,430,104 $63,806,000 $87,847,116 $91,746,888 $89,535,510
CoveredPayroll2 $37,131,965 $36,087,019 $33,793,159 $33,306,738 $31,584,169 $29,061,743 $29,647,993
Proportionate share of the net
pension liability as a percentage
of covered payroll 131.66% 177.67% 267.60% 191.57% 278.14% 315.70% 302.00%
Fiduciary net position as a
percentage of the total pension
liability 89.100/0 85.05% 77.86% 83.58% 76.44% 74.14% 73.86%
I The fiscal year ending June 30,2015 was the first year of implementation.
2 Covered payroll represents compensation earnable and pensionable compensation for the measurement period ended December 31st. Only compensation
eamable and pensionable compensation that would possibly go into the determination of retirement benefits are included.
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Cost-Sharing Multiple Employer Defined Benefit Retirement Plan
As of fiscal year ending June 30,2021
SCHEDULE OF CONTRIBUTIONS
Last 10 Years*
2021 2020 2019 2018 2017 2016 2015
Actuarially determined contribution $ 70,944,418 $ 18,046,778 $ 17,520,615 $ 17,880,152 $ 18,043,391 $ 22,752,611 $ 24,451,234
Contributions in relation to the actuarially determined
contributions 70,944,418 18,046,778 17,520,615 17,880,152 18,043,391 22,752,611 24,451,234
Contribution deficiency(excess) - - - - - - -
Covered payroll $ 41,625,151 $ 40,356,579 $ 38,479,260 $ 36,638,935 $ 35,178,106 $ 32,675,243 $ 30,093,339
Contributions as apercentage ofcovered-employee
payroll 170.441% 44.72% 45.53% 48.80% 51.29% 69.63% 81.25%
Notes to Schedule
Measurement Date: 12/31/2020
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age
Amortization method Level percentage ofpayroll,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.
**Remaining balance of December 31,2007 UAAL is amortized over a fixed(decreasing or closed)period with 4 years remaining as of December 31,2018 and 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.Effective
December 31,2013,any changes in UAAL due to plan amendments(with the exception of a change due to retirement incentives)will be amortized over a 10-year fixed
period effective with that valuation.
49
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Page 73 of 106
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 30,2021 June 30,2020 June 30,2019 June 30,2018 June 30,2017
Total OPEB Liability
Service Cost $2,249,861 $2,184,331 $2,447,310 $2,370,276 $2,295,667
Interest 4,616,239 4,482,146 6,596,612 6,396,063 6,203,230
Changes in benefit terms (27,603,524)
Differences between expected and actual experience 3219,980 (7,346,935)
Changes of assumptions (464,535) 3,495,645
Benefit payments (4,654,246) (4,145,654) (5,697,440) (5,571,750) (5,404,627)
Net change in total OPEB liability 4,967,299 2,520,823 (28,108,332) 3,194,589 3,094,270
Total OPEB liability-beginning 80,359,688 77,838,865 105,947,197 102,752,608 99,658,338
Total OPEB liability-ending(a) $85,326,987 $80,359,688 $77,838,865 $105,947,197 $102,752,608
Plan fiduciary net position
Contributions-employer $4,654,246 $5,395,654 $7,280,240 $9,649,750 $10,433,327
Contributions-employee
Adjustment to Beginning Balance (138,800)
Net investment income 14,958,207 2,994,909 4,920,923 3,354,822 4,735,576
Administrative expense (200,304) (182,833) (174,362) (164,446) (5,404,627)
Benefit payments (4,654,246) (4,145,654) (5,697,440) (5,571,750) (139,063)
Net change in plan fiduciary net position 14,619,103 4,062,076 6,329,361 7,268,376 9,625,213
Plan fiduciary net position-beginning 69,988,180 65,926,104 59,596,743 52,328,367 42,703,154
Plan fiduciary net position-ending(b) $84,607283 $69,988,180 $65,926,104 $59,596,743 $52,328,367
Net OPEB liability-ending(a)-(b) $719,704 $10,371,508 $11,912,761 $46,350,454 $50,424,241
Plan fiduciary net position as a percentage of
the total OPEB liability 99.16% 87.09% 84.70% 56.25% 50.93%
Covered payroll $41,625,151 $40,356,579 $38,479,260 $36,638,935 $35,178,106
Net OPEB liability as a percentage
of covered-employee payroll 1.73% 25.70% 30.96% 126.51% 143.34%
Notes to schedule:
*Fiscal year 2017 was the first year of implementation.
50
January 13, 2022 Special Board Meeting Agenda Packet- Page 177 of 260
Page 74 of 106
CENTRAL CONTRA COSTA SANITARY DISTRICT
POST-RETIREMENT HEALTH CARE DEFINED BENEFIT PLAN
SCHEDULE OF CONTRIBUTIONS
Single Employer
Last 10 fiscal years*
Fiscal Year Ended June 30, 2021 2020 2019 2018 2017
Actuarially determined contribution $3,917,000 $3,906,000 $7,524,000 $7,866,000 $7,866,000
Contributions in relation to the
actuarially determined contribution 4,654,246 5,395,654 7,280,240 10,433,327 10,433,327
Contribution deficiency(excess) ($737,246) ($1,489,654) $243,760 ($2,567,327) ($2,567,327)
Covered payroll $41,625,151 $40,356,579 $38,479,260 $36,638,935 $35,178,106
Contributions as a percentage of
covered payroll 11.18% 13.37% 18.92% 28.48% 29.66%
Notes to Schedule
Methods and assumptions used to determine contribution rates:
Valuation Date July 1,2020
Actuarial Cost Method: Entry Age Normal,Level Percent of Pay
Amortization Method: Level dollar
Asset Valuation Method: Investment gains and losses spread over 5-year rolling period
Actuarial Assumptions:
Discount Rate 5.50%at June 30,2021
General Inflation 2.75%Annually
Medical Trend Non-Medicare-7%for 2022,decreasing to an ultimate rate of 4%in 2076
Medicare(Non-Kaiser)-6.1%for 2022,decreasing to an ultimate rate of 4%in 2076
Medicare(Kaiser)-5%for 2022,decreasing to an ultimate rate of 4%in 2076
Dental Trend 3.75%annually
Mortality Rate CCCERA 2012-2014 Experience Study
Mortality Improvement Mortality improvement projected generationally with Scale MP-2018
51
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SUPPLEMENTARY INFORMATION
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CENTRAL CONTRA COSTA SANITARY DISTRICT
COMBINING SCHEDULE OF NET POSITION
ENTERPRISE SUB-FUNDS
JUNE 30,2021
Running Sewer Self Debt
Expense Construction Insurance Service Elimination Total
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $18,371,736 $30,283,225 $372,131 $49,027,092
Short term investments 21,100,000 26,000,000 7,600,000 54,700,000
Accounts receivable 16,880,754 10,128,708 27,009,462
Employee computer loans receivable 10,684 10,684
Interest receivable 14,994 16,283 6,495 37,772
Due from other funds 5,906 35,008,465 35,014,371
Parts and supplies 3,086,194 3,086,194
Prepaid expenses 2,520,035 2,520,035
Total current assets 61,990,303 101,436,681 7,978,626 171,405,610
NON-CURRENT ASSETS:
Restricted cash and equivalents 147,121 $34,929,105 35,076,226
Assessment Districts receivable 1,496,010 1,496,010
CAPITAL ASSETS
Nondepreciable 128,635,569 128,635,569
Depreciable,net of accumulated depreciation 631,932,004 631,932,004
Total capital assets,net 760,567,573 760,567,573
Total non-current assets 760,714,694 1,496,010 34,929,105 797,139,809
TOTAL ASSETS 822,704,997 102,932,691 7,978,626 34,929,105 968,545,419
DEFERRED OUTFLOWS OF RESOURCES
Pension related 95,805,386 95,805,386
OPEB related 4,117,730 4,117,730
Total deferred outflows 99,923,116 99,923,116
LIABILITIES
CURRENT LIABILITIES:
Accounts payable and accrued expenses 5,351,973 9,739,076 70,708 15,161,757
Interest payable 248,632 248,632
Current portion of long-term obligations 10,450,000 10,450,000
Accrued compensated absences-current portion 509,400 509,400
Liability for uninsured claims 1,455,065 1,455,065
Refundable deposits 180,342 96,915 277,257
Due to other funds 35,008,465 5,906 35,014,371
Total current liabilities 41,050,180 9,841,897 1,525,773 10,698,632 63,116,482
NON-CURRENT LIABILITIES:
Non-current portion of long-term obligations 65,283,331 65,283,331
Accrued compensated absences,noncurrent portion 4,584,692 4,584,692
Net pension liability 48,886,895 48,886,895
Net OPEB liability 719,704 719,704
Total noncurrent liabilities 54,191,291 65,283,331 119,474,622
TOTAL LIABILITIES 95,241,471 9,841,897 1,525,773 75,981,963 182,591,104
DEFERRED INFLOWS OF RESOURCES
Pension related 48,100,435 48,100,435
OPEB related 12,287,769 12,287,769
Total deferred inflows 60,388,204 60,388,204
NET POSITION
Net investment in capital assets 760,567,573 (75,733,331) 684,834,242
Restricted for debt service 34,929,105 34,929,105
Unrestricted 6,430,865 93,090,794 6,452,853 (248,632) 105,725,880
TOTAL NET POSITION $766,998,438 $93,090,794 $6,452,853 ($41,052,858) $825,489,227
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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 30,2021
Running Sewer Self Debt
Expense Construction Insurance Service Elimination Total
OPERATING REVENUES
Sewer service charges(SSC) $72,325,340 $72,325,340
Service charges-City of Concord 15,002,567 15,002,567
Other services charges 1,171,378 1,171,378
Miscellaneous charges 743,276 743,276
Total operating revenues 89,242,561 89,242,561
OPERATING EXPENSES
Sewage collection and pumping stations 18,183,752 18,183,752
Sewage treatment 24,783,779 24,783,779
Engineering 15,278,784 15,278,784
Recycled water 2,037,788 2,037,788
Administrative and general 93,755,104 $808,269 94,563,373
Pension expense (67,027,225) (67,027,225)
OPEB expense (3,906,774) (3,906,774)
Depreciation 21,531,302 21,531,302
Total operating expenses 104,636,510 808,269 105,444,779
OPERATING INCOME(LOSS) (15,393,949) (808,269) (16,202,218)
NONOPERATING REVENUES(EXPENSES)
Taxes $18,005,615 $2,511,211 20,516,826
Permit and inspection fees 2,176,156 264,031 2,440,187
Interest earnings 1,379,985 245,046 $41,803 11,194 1,678,028
Interest expense (542,226) (542,226)
Other income(expense),net 3,403,933 29,815 (808,269) (240,179) 808,269 3,193,569
Total nonoperating revenues 6,960,074 18,544,507 (766,466) 1,740,000 808,269 27,286,384
NET INCOME(LOSS)BEFORE CAPITAL (8,433,875) 18,544,507 (766,466) 1,740,000 11,084,166
CONTRIBUTIONS AND TRANSFERS
CAPITAL CONTRIBUTIONS AND TRANSFERS
City of Concord contributions to capital costs 10,064,155 10,064,155
Customer contributions to capital cost(SSC) 30,156,394 30,156,394
Contributed sewer lines 923,468 923,468
Capital contributions-connection fees 5,500,316 5,500,316
Transfers In(Out) 69,239,283 (46,906,369) 745,419 (23,078,333)
Total capital contributions and transfers 70,162,751 (1,185,504) 745,419 (23,078,333) 46,644,333
CHANGE IN NET POSITION 61,728,876 17,359,003 (21,047) (21,338,333) 57,728,499
NET POSITION,BEGINNING OF YEAR 705,269,562 75,731,791 6,473,900 (19,714,525) 767,760,728
NET POSITION,END OF YEAR $766,998,438 $93,090,794 $6,452,853 ($41,052,858) $825,489,227
55
January 13, 2022 Special Board Meeting Agenda Packet- Page 182 of 260
NNUAL OMPREH ENSIV
FINANCIAL E PO RT
ISTIC
7-T,
-•�
L � _
1. ♦ 1-
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1. A
Central Contra Costa Sanitary District
Changes in Net Position and Statement of Net Position
Last Ten Fiscal Years
Changes in Net Position 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021
Operating Revenues:
Sewer Service Charges(SSC) $49,123,848 $56,770,984 $60,796,421 $70,023,512 $72,233,903 $73,138,235 $75,824,221 $68,656,908 $70,408,903 $72,325,340
City of Concord 10,647,389 10,483,421 11,625,864 12,892,945 13,913,960 13,851,253 14,973,623 15,205,292 14,923,591 15,002,567
Other Service Charges 915,485 1,076,401 1,035,134 1,006,197 963,014 1,029,500 1,078,594 1,126,239 1,176,242 1,171,378
Miscellaneous Charges 929,917 751,880 544,589 593,780 623,659 606,453 619,997 689,727 714,043 743,276
Total Operating Revenue 61,616,639 69,082,686 74,002,008 84,516,434 87,734,536 88,625,441 92,496,435 85,678,166 87,222,779 89,242,561
Operating Expenses:
Salaries&Benefits 45,562,430 49,811,218 58,954,452 66,104,630 63,988,158 62,342,392 68,862,484 65,071,382 62,672,096 134,187,829
Chemicals,Utilities&Supplies 8,121,809 7,401,103 8,063,309 7,466,490 7,304,619 8,115,004 7,477,602 8,093,144 8,088,750 8,738,404
Professional&Outside Services 4,099,876 2,836,638 3,995,860 3,322,881 4,196,302 3,891,224 2,988,280 3,276,763 2,684,034 4,160,807
Hauling,Disposal,Repairs&Maintenance 4,077,741 4,239,421 4,041,355 4,758,260 5,780,533 5,662,086 5,461,011 5,755,590 5,435,406 5,751,355
Self-Insurance(net of transfers) (65,688) 159,961 214,290 496,381 72,486 (300,108) (332,483) 1,039,444 1,110,798 550,000
Pension/OPEB Expense - - - (3,012,757) (9,778,389) (4,080,558) 1,104,358 (33,307,168) (2,386,849) (70,933,999)
Depreciation 21,190,059 21,596,266 21,892,545 22,740,942 22,885,030 22,892,153 21,561,704 20,983,353 21,253,062 21,531,302
All Other 2,489,019 2,693,135 2,346,583 2,473,963 3,343,778 2,942,592 2,558,122 2,366,416 1,858,144 1,459,081
Total Operating Expenses 85,475,246 88,737,742 99,508,394 104,350,790 97,792,517 101,464,785 109,681,078 73,278,924 100,715,441 105,444,779
Operating Loss (23,858,607) (19,655,056) (25,506,386) (19,834,356) (10,057,981) (12,839,344) (17,184,643) 12,399,242 (13,492,662) (16,202,218)
Non-Operating Revenues(Expenses):
Property Taxes 12,047,169 13,010,477 13,093,841 14,083,331 14,835,167 16,318,874 17,650,741 18,251,794 18,876,886 20,516,826
Connection&Other Fees 903,810 1,169,809 1,575,251 1,843,942 2,546,723 2,600,888 2,592,137 2,648,708 2,251,245 2,440,187
Interest Income 294,938 405,474 359,288 318,475 562,308 761,838 1,223,349 2,573,964 2,310,269 1,678,028
Interest Expense (1,919,375) (1,802,084) (1,996,689) (1,523,127) (1,427,641) (1,313,398) (1,230,680) (1,025,006) (604,851) (542,226)
All Other* 931,660 951,100 932,464 1,828,530 1,195,095 966,244 1,075,838 1,424,520 1,219,811 3,193,569
Total Non-Operating 12,258,202 13,734,776 13,964,155 16,551,151 17,711,652 19,334,446 21,311,385 23,873,980 24,053,360 27,286,384
Income Before Contributions and Transfers (11,600,405) (5,920,280) (11,542,231) (3,283,205) 7,653,671 6,495,102 4,126,742 36,273,222 10,560,698 11,084,166
Customer Contributions* 8,888,663 8,001,147 10,486,067 6,769,623 11,991,752 16,628,105 20,425,514 36,562,141 44,222,958 40,220,549
Contributed Sewer Lines 792,011 939,628 1,462,316 794,218 1,774,168 2,899,042 2,003,614 2,179,641 1,761,808 923,468
Capital Contributions-ConnectionFees 5,724,833 6,091,529 8,224,517 6,673,298 8,543,758 7,044,340 9,331,420 8,145,068 7,083,702 5,500,316
CHANGE IN NET POSITION 3,805,102 9,112,024 8,630,669 10,953,934 29,963,349 33,066,589 35,887,290 83,160,072 63,629,166 57,728,499
Total Net Position-Beginning 622,797,871 626,602,973 635,714,997 644,345,666 563,607,078 593,570,427 626,637,016 620,971,490 704,131,562 767,760,728
Prior Period Adjustment-GASB 68 and 71 - - - (91,692,522) - - - - - -
Prior Period Adjustment-GASB 75 (41,552,816)
Total Net Position-Ending $626,602,973 $635,714,997 $644,345,666 $563,607,078 $593,570,427 $626,637,016 $620,971,490 $704,131,562 $767,760,728 $825,489,227
Statement of Net Position 2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021
Net Investment in Capital Assets $549,462,506 $559,523,642 $568,006,023 $573,175,094 $581,844,903 $600,770,254 $623,307,342 $655,586,304 $692,117,172 $684,834,242
Restricted 4,663,601 4,730,837 4,809,248 4,288,008 4,363,251 4,449,437 4,421,504 (271,370) 2,639 34,929,105
Unrestricted 72,476,866 71,460,518 71,530,395 (13,856,024) 7,362,273 21,417,325 (6,757,356) 48,816,628 75,640,917 105,725,880
Total Net Position $626,602,973 $635,714,997 $644,345,666 $563,607,078 $593,570,427 $626,637,016 $620,971,490 $704,131,562 $767,760,728 $825,489,227
Source:Central Contra Costa Sanitary Distract Audiled Financial Statements
S-1
January 13, 2022 Special Board Meeting Agenda Packet- Page 184 of 260
Central Contra Costa Sanitary District
Revenue By Type
Last Ten Fiscal Years
$180,000,000
$160,000,000
$140,000,000
$120,000,000
N $100,000,000
16
6 $80,000,000
D
$60,000,000
$40,000,000
$20,000,000
$-
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021
Fiscal Year
■Operating Revenue oNon-Operating Revenue
Operating Revenue
Fiscal Sewer Service City of Other Service Miscellaneous Total
Year Charges* Concord Charges Charges Operating
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
2019-2020 70,408,903 14,923,591 1,176,242 714,043 87,222,779
2020-2021 72,325,340 15,002,567 1,171,378 743,276 89,242,561
Non-Operating Revenue
Fiscal Property Customer Connections All Total Non-Operating
Year Taxes Contributions*1 &Other Fees*2 Interest Other &Contributions
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
2019-2020 18,876,886 45,984,766 9,334,947 2,310,269 1,219,811 77,726,679
2020-2021 20,516,826 41,144,017 7,940,503 1,678,028 3,193,569 74,472,943
* Sewer Service Charge(SSC)represents the Running Expense Fund portion of SSC County collections along with District direct billings and counter collections.
*1 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.
*2 Includes connection fees,non-operating permit,inspection,and other fees.
Source:Central Contra Costa Sanitary District Audited Financial Statements
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January 13, 2022 Special Board Meeting Agenda Packet- Page 185 of 260
Central Contra Costa Sanitary District
Operating Expenses by Type
Last Ten Fiscal Years
$179,000,000
$129,000,000
$79,000,000
m
0
$29,000,000
$(21,000,000)
$(71,000,000)
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021
Fiscal Year
❑Salaries and Benefits ❑Chemicals,Utilities&Supplies ❑Professional&Outside Services ❑Hauling,Disposal,Repairs&Maintenance
■Self-Insurance ❑Depreciation oPension/OPEB Expense* ❑AII Other
OPERATING EXPENSES
Fiscal Salaries Chemicals,Utilities Professional& Hauling,Disposal, Self-Insurance Depreciation PensionlOPEB All Total Operating Non-Operating
Year and Benefits &Supplies Outside Services Repairs&Maintenance Expense* Other Expenses Expenses
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
2019-2020 62,672,096 8,088,750 2,684,034 5,435,406 1,110,798 21,253,062 (2,386,849) 1,858,144 100,715,441 604,851
2020-2021 134,187,829 8,738,404 4,160,807 5,751,355 550,000 21,531,302 (70,933,999) 1,459,081 105,444,779 542,226
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".
January 13, 2022 Special Board Meeting Agenda Packet- Page 186 of 261303
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
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
2019-2020 408 190 598 6,589
2020-2021 $277 $352 $629 $6,803
Multi-Family Annual Sewer Service Charge (SSC)"1 Pump
Fiscal Year Operations Capital Total Zone Fee"3
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
2019-2020 386 180 566 1,586
2020-2021 $262 $334 $596 $1,585
*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
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January 13, 2022 Special Board Meeting Agenda Packet- Page 187 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
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%
2019-2020 108,704,671,836 1,863,018,759 110,567,690,595 5.5%
2020-2021 110,795,231,142 1,848,644,910 112,643,876,052 1.9%
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
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 14,195,300 100% 8.3% 72,622,738 100% 9.0%
2015-2016 15,323,818 100% 7.9% 78,930,977 100% 8.7%
2016-2017 16,428,089 100% 7.2% 83,601,971 100% 5.9%
2017-2018 17,300,475 100% 5.3% 87,944,554 100% 5.2%
2018-2019 18,352,620 100% 6.1% 95,298,869 100% 8.4%
2019-2020 19,348,103 100% 5.4% 100,863,356 100% 5.8%
2020-2021 20,233,423 100% 4.6% 100,603,114 100% -0.3%
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.
"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
January 13, 2022 Special Board Meeting Agenda Packet- Page 188 of 26505
Central Contra Costa Sanitary District
Sewer Service Charge
Ten Largest Customers
Last Ten Fiscal Years
2011-2012 2012-2013 2013-2014 2014-2015 2015-2016
Percentage of Percentage of Percentage of Percentage of Percentage of
Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating
Customer Revenue Rank Revenue Revenue Rank Revenue Revenue Rank Revenue Revenue Rank Revenue Revenue Rank Revenue
City of Concord 1. $10,647,389 1 17.28% $10,483,421 1 15.18% $11,625,864 1 15.71% $12,892,945 1 15.25% $13,913,960 1 15.86%
First Walnut Creek Mutual 323,950 2 0.53% 352,450 2 0.51% 361,260 4 0.49% 417,050 3 0.49% 439,850 3 0.50%
Park Regency Apartments 304,172 3 0.49% 330,932 3 0.48% 303,750 5 0.41% 391,588 4 0.46% 412,996 4 0.47%
Contra Costa County General Services 2. 292,384 4 0.47% 321,803 4 0.47% 384,750 3 0.52% 451,567 2 0.53% 638,608 2 0.73%
Second Walnut Creek Mutual Apts 255,750 5 0.42% 278,250 5 0.40% 211,866 6 0.29% 329,250 5 0.39% 347,250 5 0.40%
Sun Valley Mall 203,037 6 0.33% 174,038 7 0.25% 148,374 8 0.20% 299,697 6 0.35% 283,613 6 0.32%
Chevron Offices&Office Park - - - - 419,590 2 0.57% - - -
Kaiser Foundation Hospital 2. - - - - - - 158,848 8 0.19% 186,232 10 0.21%
Branch Creek Vista Apartments 136,400 7 0.22% 148,400 9 0.21% 162,000 7 0.22% 175,600 7 0.21% -
Bay Landing Apartments 122,760 8 0.20% 133,560 10 0.19% 145,800 9 0.20% 158,040 9 0.19%
St.Mary's College Contract 119,407 9 0.19% 158,480 8 0.23% - - - - - -
John Muir Health 2. - - 176,381 6 0.26% 145,091 10 0.20% - - 206,210 9 0.24%
Archstone Apartments 119,350 10 0.19% - - - - 153,650 10 0.18% - -
Muirland @ Windemere Apartments 119,350 10 0.19% 153,650 10 0.18% - -
John Muir Health 2. - - - - 218,919 7 0.25%
San Raman Unified School District - - - - 215,044 8 0.25%
Total $12,643,949 20.52% $12,557,715 18.18% $13,908,345 18.79% $15,581,885 18.44%
16,862,681 18.73%
2016-2017 2017-2018 2018-2019 2019-2020 2020-2021
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. $13,851,253 1 15.63% $14,973,623 1 16.19% $15,205,292 1 16.44% $14,923,591 1 16.13%
15,048,782 1 16.27%
Contra Costa County General Services 2. 547,943 2 0.62% 556,782 2 0.60% - - 733,416 2 0.79% 740,223 2 0.80%
First Walnut Creek Mutual 462,650 3 0.52% 487,350 3 0.53% 521,550 2 0.56% 537,700 3 0.58% 537,700 3 0.58%
Park Regency Apartments 434,404 4 0.49% 457,596 4 0.49% 489,708 3 0.53% 504,872 4 0.55% 504,872 4 0.55%
Second Walnut Creek Mutual Apts 365,250 5 0.41% 387,750 5 0.42% 411,750 6 0.45% 424,500 5 0.46% 424,500 5 0.46%
John Muir Health 2. 322,601 6 0.36% 278,589 7 0.30% 413,900 5 0.45% 391,245 6 0.42% 362,718 6 0.39%
Sun Valley Mall 298,005 7 0.34% 354,208 6 0.38% 453,512 4 0.49% 373,171 7 0.40% 339,061 7 0.37%
St.Mary's College Contract - - - - - - - - 242,777 8 0.26%
Branch Creek Vista Apartments 194,800 9 0.22% 205,200 9 0.22% 219,600 10 0.24% 226,400 10 0.24% 226,400 9 0.24%
San Ramon Unified School District 225,339 8 0.25% 247,766 8 0.27% 266,550 8 0.29% 283,631 9 0.31% 215,229 10 0.23%
Bishop Ranch City Center - - - - 315,106 7 0.34% 335,017 8 0.36% - -
Kaiser Foundation Hospital 2. 186,281 10 0.21% - - 244,180 9 0.26% - -
Willows Shopping Center 2. - - 188,828 10 0.20% - - - -
Total $16,888,526 19.06% $18,137,692 19.61% $18,541,148 20.05% $18,733,543 20.25% $18,642,262 20.15%
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 replacement/improvement
of its sewage collection system,which runs through the City of Concord.
2. 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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January 13, 2022 Special Board Meeting Agenda Packet- Page 189 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
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
2019-20 4,383 14,923,591 11,393,000 26,316,591
2020-21 3,922 15,048,782 10,064,155 25,112,937
Central Contra Costa Sanitary District
Active Service Accounts and Fiscal Year Billings
Sewer Service Charges
Fiscal Year 2020-2021
2020-2021 Sewer Percentage of
User Group No. of Parcels Service Charge Billings Residential Unit Equivalents Total
Residential 113,527 $81,485,212 136,263 80%
Mixed Use 2,102 7,744,489 12,951 8%
Office 1,033 2,602,370 4,352 3%
Hotel/Motel 182 1,502,705 2,513 1%
Food Service 23 1,313,211 2,196 1%
Government 203 857,044 1,433 1%
Schools 13 798,641 1,336 1%
Recreation/Entertainment 384 767,428 1,283 1%
Businesses 42 759,758 1,270 1%
Automotive/Car Wash 246 714,510 1,195 1%
Market/Supermarket 147 668,595 1,118 1%
Industrial Permitted 40 582,635 974 1%
All Other User Groups 492 2,461,480 4,800 2%
Subtotal 118,434 $102,258,079 171,684 100%
Partial Year Charges(Counter) $296,337
Prior Year Adjustments (72,682)
Total FY 2020-2021 Sewer Service Charge Revenue $102,481,734
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January 13, 2022 Special Board Meeting Agenda Packet- Page 190 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 2021,the District issued COP's for$58.OM,see Note 6
$6,000,000 $75,000,000
$5,000,000 $60,000,000
a $4,000,000 m $45,000,000
o° $3,000,000 c
$30,000,000
$2,000,000
$1,000,000 -16 $15,000,000 -
$0 LLIML $0
p^�" p^O p'`a p'`O p'`6 O^� O^p OHO OHO Oti^ o^ry o o^� o^o ^6 0 0^0 0^0 otio oti
Summary By Type Of Debt
Revenue Bonds 2018&2009 Total Debt Service Annual Expense • = •
Fiscal Interest& Total Interest& Total Interest& Total Rev.Bonds • -
Year Princi al Amortization Debt Service Principal Amortization Debt Service Principal Amortization Debt Service &COP's •- •
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 <e 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 - 29,095,000
2018-2019 - 1,025,006 1,025,006 - - - - 1,025,006 1,025,006 21,806,631 21,806,631
2019-2020 2,145,000 604,851 2,749,851 2,145,000 604,851 2,749,851 19,447,392 19,447,392
2020-2021 1,740,000 542,226 2,282,226 1,740,000 542,226 2,282,226 75,733,331 75,733,331
Debt Service Coverage Summar Debt Ratios
Total Total Operating Non-Operating Debt Service Capital Debt Service Annual Debt Annual Debt Total Debt
FFiscal Debt Operating Expenses less Revenue& Net Coverage Improvement Adjusted Net Coverage Service to Service per Outstanding
ear Service Revenue Depreciation*1 Contributions Revenue*2 (Net Revenue)*3 Fees/Concord Revenue*4 (Adj.Net Revenue)*5 Operating Exp. Customer Per Customer
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
2019-2020 2,749,851 87,222,779 79,462,379 77,121,828 84,882,228 30.87 18,476,702 63,795,526 23.20 3.46% 15.93 112.65
2020-2021 1 2,282,226 1 89,242,561 1 83,913,477 73,930,717 1 79,259,801 34.73 15,564,471 63,695,330 27.91 2.72% 13.32 441.92
Note: Details regarding the District's outstanding debt can be found in the notes to the financial statements.
<a>GASB Statement No.65 required that bond issuance costs of$315,287,previously being amoritized annually,be expensed in FY 2013-2014. Debt Restrictions:
*1 2014-2015 includes implementaion of pension expense reporting changes for GASB 68&71. Revenue Pledge&Covenant: The District pledges
*2 Net Revenue=Operating Revenue,less Total Operating Expenses less Depreciation,plus Non-Operating Revenue&Contributions. Property Tax Revenue along with its ability to raise Sewer
*3 This ratio must be above 1.00 to meet the Debt Rate Covenant(Net Revenue/Total Debt Service). Service Charge(SSC)rates. Debt Coverage requirements
*4 Adjusted Net Revenue=Net Revenue less Capital Improvement Fees(Connection Fees)and City of Concord Capital Charges.In FY 2019-20 the Board, are discussed in the footnotes to the left.
by Resolution,adopted rate stabilization fund reserve accounts for the O&M and Sewer Construction funds,contributing initial seed monies of$2.61 million.
*5 This ratio must be above 1.25 tor�meeetl the Debt
pRate Covenant(Adjusted Net Revenue/Total Debt Service).
$'o�rCe�Ce"ratral�(;'oht�C� r41taa%gatlrlcYR-u7ite�Finaee �n Ac end efP k� i�gP c�s 191 Of 260
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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
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%
2020 342,149 141,480 483,629 -2.2%
Source: Central Contra Costa Sanitary District Environmental Services Division
List of Ten Largest Employers in Contra Costa County
Last Year and Eight Years Ago*
2020 2012'
Estimated %of Total County Estimated %of Total County
Employers Employees Rank Employment Employees Rank Employment
Chevron Corporation 10,000+ 1 2.11% 1,329 3 0.28%
St. Mary's College 1,000-4,999 T-2 0.63%
Bio-Rad Laboratories 1,000-4,999 T-2 0.63% 900 9 0.19%
Job Connections 1,000-4,999 T-2 0.63%
John Muir Medical Center 1,000-4,999 T-2 0.63% 2,200 1 0.46%
Kaiser Permanente 1,000-4,999 T-2 0.63% 2,000 2 0.42%
La Raza Market 1,000-4,999 T-2 0.64%
Martinez Medical Offices 1,000-4,999 T-2 0.64%
USS-POSCO Industries 1,000-4,999 T-2 0.64%
Target Corporation - 1,262 4 0.26%
Walmart Stores, Inc. 1,150 5 0.24%
Doctors Medical Center - 937 7 0.19%
Contra Costa Newspaper, Inc. - 1,140 6 0.24%
Shell/Martinez Refinery - 900 8 0.19%
Texaco Inc. - 800 10 0.17%
All Others 439,500 92.82% 465,281 97.36%
Total 473,500 100.0% 477,899 100.0%
Source: ' County of Contra Costa,California,Comprehensive Annual Financial Report for June 30,2020,Statistical Section,principal employers excludes government employers.
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January 13, 2022 Special Board Meeting Agenda Packet- Page 192 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**
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%
2019 1,153,526 98,423,318,000 85,324 7.9%
2020 1,152,333 106,318,748,000 92,264 5.3%
U.S.Department of Commerce,Bureau of Economic Analysis. Estimates for 2020-2021 reflect county population estimates available as of October 2021.
State of California,Employment Development Department(EDD),annual calendar figure.
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January 13, 2022 Special Board Meeting Agenda Packet- Page 193 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 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Administration 39 39 44 46 49 43 43 41 44 51
Engineering 71 75 73 72 88 88 89 90 89 90
Operations
Collection Systems 47 56 55 56 55 55 54 54 53 55
Plant 71 76 81 88 79 83 81 77 81 75
Pumping Station 7 8 8 8 7 7 7 12 7 7
Operations Total 125 140 144 152 141 145 142 143 141 137
District Total 235 254 261 270 278 276 274 274 274 278
Number of Retirees and Surviving Spouses as of June 30
Last Ten Fiscal Years
District Total 237 244 243 244 249 259 278 268 269 261
Source: Central Contra Costa Sanitary District Finance and Human Resources Divisions
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January 13, 2022 Special Board Meeting Agenda Packet- Page 194 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 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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 37.2 33.2 33.8 30.4 29.1 30.8 33.3 31.8 34.1 29.5
Wastewater Treated per day Calendar 41.9 39.8 36.8 35.6 31.8 35.4 43.2 36.0 41.2 35.3
Tons per Year
Sludge to Furnace(Dry)'1 Fiscal 15,790 15,097 14,590 16,789 16,623 17,031 16,279 16,498 16,056 16,029
Ash to Reuse Site(Wet)•2 Fiscal 3,850 3,667 3,618 3,811 3,651 4,230 3,475 3,577 3,450 3,410
'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 1,526 1,526 1,519 1,519 1,519 1,535 1,535 1,535 1,535
Number of pumping stations(owned) Calendar 16 16 16 16 16 16 15 15 15 15
Recycled Water
Recycled Water Distribution Pipeline(miles) Calendar 11.7 11.7 14.3 14.3 14.6 14.6 14.6 14.6 14.6 14.6
Average Recycled Water Produced(million gallons per day) Calendar 1.8 1.7 1.7 1.6 1.7 1.5 1.6 1.6 1.6 1.4
Number of Recycled Water Customers Sites Calendar 29 29 29 29 43 47 47 49 50 58
Commercial Truck Fill Use(million gallons per year) Calendar <0.1 <0.1 <0.1 0.3 4.4 0.4 0.6 0.6 4.6 4.8
Commercial Truck Fill Customers Calendar 3 2 1 11 37 26 14 13 12 6
Estimated Residential Fill Station Use(million gallons per year) Calendar N/A N/A N/A N/A 11.8 6.5 2.5 2.3 1.3 1.0
Residential Fill Station Customer Visits Calendar N/A N/A N/A N/A 55,552 28,598 11,633 9,780 5,671 4,635
Household Hazardous Waste(HHW)-Inception 1997/1998
Program Participation(Number of cars) Fiscal 29,112 29,119 30,379 31,779 33,468 33,037 35,640 36,108 27,818 35,634
Percentage of Households in Service Area Fiscal 15.4% 15.4% 15.9% 16.6% 16.8% 16.7% 18.1% 18.4% 14.0% 17.9%
Operating Cost per Car Fiscal $87 $93 $83 $78 $72 $80 $77 $78 $100 $95
Pounds of HHW per Car Fiscal 67 68 66 63 64 65 64 61 61 76
Pharmaceutical Collection Program-Inception 2009
Number of Collection Sites Calendar 10 10 12 13 13 13 13 13 12 12
Pounds of Expired or Unwanted medications Collected Calendar 9,434 12,240 12,428 14,041 15,366 16,485 17,337 17,178 9,918 5,645
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: 278 full-time equivalent employees(292 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(12-Collection Sites)
Retail HHW Collection Program
Type Of Treatment: Discharge-Secondary;Reclamation-Tertiary
Service Area: 146 square miles
Total Population Served: 484,795(HHW service area 518,900)
Sewer Service Charge: $567 for single family homes and$549 for multi-family homes.
Source: Central Contra Costa Sanitary District records S-12
January 13, 2022 Special Board Meeting Agenda Packet- Page 195 of 260
Page 92 of 106
Attachment 2
CENTRAL CONTRA COSTA SANITARY DISTRICT
MEMORANDUM ON INTERNAL CONTROL
AND
REQUIRED COMMUNICATIONS
FOR THE YEAR ENDED
JUNE 30,2021
January 13, 2022 Special Board Meeting Agenda Packet- Page 196 of 260
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CENTRAL CONTRA COSTA SANITARY DISTRICT
MEMORANDUM ON INTERNAL CONTROL
AND
REQUIRED COMMUNICATIONS
For the Year Ended June 30,2021
Table of Contents
Page
Memorandum on Internal Control...................................................................................................l
Scheduleof Other Matters.......................................................................................................3
Required Communications...............................................................................................................7
SignificantAudit Matters...........................................................................................................7
AccountingPolicies................................................................................................................7
Unusual Transactions, Controversial or Emerging Areas.....................................................8
AccountingEstimates.............................................................................................................8
Disclosures..............................................................................................................................9
Difficulties Encountered in Performing the Audit................................................................9
Corrected and Uncorrected Misstatements............................................................................9
Disagreements with Management..........................................................................................9
Management Representations.................................................................................................9
Management Consultations with Other Independent Accountants......................................9
Other Audit Findings or Issues.............................................................................................10
Other Information Accompanying the Financial Statements..............................................10
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Fl. M ACZTE
MEMORANDUM ON INTERNAL CONTROL
To the Board of Directors
Central Contra Costa Sanitary District
Martinez, California
In planning and performing our audit of the basic financial statements of the Central Contra Costa Sanitary
District (District) as of and for the year ended June 30, 2021, in accordance with auditing standards generally
accepted in the United States of America, we considered the District's internal control over financial reporting
(internal control) as a basis for designing our auditing procedures that are appropriate in the circumstances for
the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the District's internal control. Accordingly, we do not express an opinion on the
effectiveness of the District's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the District's financial
statements will not be prevented, or detected and corrected, on a timely basis.
Our consideration of internal control was for the limited purpose described in the first paragraph and was not
designed to identify all deficiencies in internal control that might be material weaknesses. In addition, because
of inherent limitations in internal control, including the possibility of management override of controls,
misstatements due to error or fraud may occur and not be detected by such controls. Given these limitations,
during our audit we did not identify any deficiencies in internal control that we consider to be material
weaknesses. However,material weaknesses may exist that have not been identified.
Included in the Schedule of Other Matters are recommendations not meeting the above definitions that we
believe to be of potential benefit to the District.
This communication is intended solely for the information and use of management, Board of Directors, others
within the organization, and agencies and pass-through entities and is not intended to be and should not be used
by anyone other than these specified parties.
Pleasant Hill, California
December 28, 2021
T 925.930.0902
Accountancy Corporation F 925.930.0135
3478 Buskirk Avenue,Suite 215 a maze@mazeassociates.com
Pleasant Hill,CA 94523 w mazeassociates.com
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CENTRAL CONTRA COSTA SANITARY DISTRICT
SCHEDULE OF OTHER MATTERS
FOR THE YEAR ENDED JUNE 30,2021
2021-01 New GASB Pronouncements Not Yet Effective
The following comment represents new pronouncements taking effect in the next few years. We have cited
them here to keep you abreast of developments:
EFFECTIVE FISCAL YEAR 2021/22:
GASB 87—Leases
The objective of this Statement is to better meet the information needs of financial statement users by improving
accounting and financial reporting for leases by governments. This Statement increases the usefulness of
governments' financial statements by requiring recognition of certain lease assets and liabilities for leases that
previously were classified as operating leases and recognized as inflows of resources or outflows of resources
based on the payment provisions of the contract. It establishes a single model for lease accounting based on the
foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a
lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required
to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and
consistency of information about governments' leasing activities.
A lease is defined as a contract that conveys control of the right to use another entity's nonfinancial asset (the
underlying asset) as specified in the contract for a period of time in an exchange or exchange-like
transaction. Examples of nonfinancial assets include buildings, land,vehicles, and equipment. Any contract that
meets this definition should be accounted for under the leases guidance, unless specifically excluded in this
Statement.
GASB 89—Accountinz for Interest Cost Incurred before the End of a Construction Period
The objectives of this Statement are (1)to enhance the relevance and comparability of information about capital
assets and the cost of borrowing for a reporting period and (2) to simplify accounting for interest cost incurred
before the end of a construction period.
This Statement establishes accounting requirements for interest cost incurred before the end of a construction
period. Such interest cost includes all interest that previously was accounted for in accordance with the
requirements of paragraphs 5-22 of Statement No. 62, Codification of Accounting and Financial Reporting
Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, which are superseded by
this Statement. This Statement requires that interest cost incurred before the end of a construction period be
recognized as an expense in the period in which the cost is incurred for financial statements prepared using the
economic resources measurement focus. As a result, interest cost incurred before the end of a construction
period will not be included in the historical cost of a capital asset reported in a business-type activity or
enterprise fund.
This Statement also reiterates that in financial statements prepared using the current financial resources
measurement focus, interest cost incurred before the end of a construction period should be recognized as an
expenditure on a basis consistent with governmental fund accounting principles.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
SCHEDULE OF OTHER MATTERS
FOR THE YEAR ENDED JUNE 30,2021
EFFECTIVE FISCAL YEAR 2022/23:
GASB 91 –Conduit Debt Oblikations
The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by
issuers and eliminate diversity in practice associated with (1) commitments extended by issuers, (2)
arrangements associated with conduit debt obligations, and(3)related note disclosures. This Statement achieves
those objectives by clarifying the existing definition of a conduit debt obligation; establishing that a conduit debt
obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of
additional commitments and voluntary commitments extended by issuers and arrangements associated with
conduit debt obligations; and improving required note disclosures.
A conduit debt obligation is defined as a debt instrument having all of the following characteristics:
• There are at least three parties involved:
(1) an issuer
(2) a third-party obligor, and
(3) a debt holder or a debt trustee.
• The issuer and the third-party obligor are not within the same financial reporting entity.
• The debt obligation is not a parity bond of the issuer, nor is it cross-collateralized with other debt of the
issuer.
• The third-party obligor or its agent, not the issuer, ultimately receives the proceeds from the debt
issuance.
• The third-party obligor, not the issuer, is primarily obligated for the payment of all amounts associated
with the debt obligation(debt service payments).
All conduit debt obligations involve the issuer making a limited commitment. Some issuers extend additional
commitments or voluntary commitments to support debt service in the event the third party is, or will be, unable
to do so.
An issuer should not recognize a conduit debt obligation as a liability. However, an issuer should recognize a
liability associated with an additional commitment or a voluntary commitment to support debt service if certain
recognition criteria are met. As long as a conduit debt obligation is outstanding, an issuer that has made an
additional commitment should evaluate at least annually whether those criteria are met. An issuer that has made
only a limited commitment should evaluate whether those criteria are met when an event occurs that causes the
issuer to reevaluate its willingness or ability to support the obligor's debt service through a voluntary
commitment.
This Statement also addresses arrangements—often characterized as leases—that are associated with conduit
debt obligations. In those arrangements, capital assets are constructed or acquired with the proceeds of a conduit
debt obligation and used by third-party obligors in the course of their activities. Payments from third-party
obligors are intended to cover and coincide with debt service payments. During those arrangements, issuers
retain the titles to the capital assets. Those titles may or may not pass to the obligors at the end of the
arrangements.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
SCHEDULE OF OTHER MATTERS
FOR THE YEAR ENDED JUNE 30,2021
GASB 91—Conduit Debt Oblikations(Continued)
Issuers should not report those arrangements as leases, nor should they recognize a liability for the related
conduit debt obligations or a receivable for the payments related to those arrangements. In addition, the
following provisions apply:
• If the title passes to the third-party obligor at the end of the arrangement, an issuer should not recognize
a capital asset.
• If the title does not pass to the third-party obligor and the third party has exclusive use of the entire
capital asset during the arrangement, the issuer should not recognize a capital asset until the
arrangement ends.
• If the title does not pass to the third-party obligor and the third party has exclusive use of only portions
of the capital asset during the arrangement, the issuer, at the inception of the arrangement, should
recognize the entire capital asset and a deferred inflow of resources. The deferred inflow of resources
should be reduced, and an inflow recognized, in a systematic and rational manner over the term of the
arrangement.
This Statement requires issuers to disclose general information about their conduit debt obligations, organized
by type of commitment, including the aggregate outstanding principal amount of the issuers' conduit debt
obligations and a description of each type of commitment. Issuers that recognize liabilities related to supporting
the debt service of conduit debt obligations also should disclose information about the amount recognized and
how the liabilities changed during the reporting period.
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Fl. M ACZTE
REQUIRED COMMUNICATIONS
To the Board of Directors
Central Contra Costa Sanitary District
Martinez, California
We have audited the basic financial statements of the Central Contra Costa Sanitary District (District) for the
year ended June 30, 2021. Professional standards require that we communicate to you the following information
related to our audit under generally accepted auditing standards.
Significant Audit Matters
Accounting Policies
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the District are included in Note 1 to the financial statements. No new accounting
policies were adopted and the application of existing policies was not changed during the year except as follows:
GASB 84- Fiduciary Activities
The objective of this Statement is to improve guidance regarding the identification of fiduciary activities
for accounting and financial reporting purposes and how those activities should be reported.
This Statement establishes criteria for identifying fiduciary activities of all state and local governments.
The focus of the criteria generally is on (1) whether a government is controlling the assets of the
fiduciary activity and (2) the beneficiaries with whom a fiduciary relationship exists. Separate criteria
are included to identify fiduciary component units and postemployment benefit arrangements that are
fiduciary activities.
An activity meeting the criteria should be reported in a fiduciary fund in the basic financial statements.
Governments with activities meeting the criteria should present a statement of fiduciary net position and
a statement of changes in fiduciary net position. An exception to that requirement is provided for a
business-type activity that normally expects to hold custodial assets for three months or less.
This Statement describes four fiduciary funds that should be reported, if applicable: (1) pension (and
other employee benefit) trust funds, (2) investment trust funds, (3) private-purpose trust funds, and (4)
custodial funds. Custodial funds generally should report fiduciary activities that are not held in a trust or
equivalent arrangement that meets specific criteria.
A fiduciary component unit, when reported in the fiduciary fund financial statements of a primary
government, should combine its information with its component units that are fiduciary component units
and aggregate that combined information with the primary government's fiduciary funds.
T 925.930.0902
Accountancy Corporation F 925.930.0135
3478 Buskirk Avenue,Suite 215 a maze@mazeassociates.com
Pleasant Hill,CA 94523 w mazeassociates.com
January 13, 2022 Special Board Meeting Agenda Packet- Page 206 of 260
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This Statement also provides for recognition of a liability to the beneficiaries in a fiduciary fund when
an event has occurred that compels the government to disburse fiduciary resources. Events that compel a
government to disburse fiduciary resources occur when a demand for the resources has been made or
when no further action, approval, or condition is required to be taken or met by the beneficiary to
release the assets.
The pronouncement became effective, and as disclosed in Note 1M to the financial statements.
GASB 90—Maiority Equity Interests(an amendment of GASB Statements No. 14 and No. 61)
The primary objectives of this Statement are to improve the consistency and comparability of reporting
a government's majority equity interest in a legally separate organization and to improve the relevance
of financial statement information for certain component units. It defines a majority equity interest and
specifies that a majority equity interest in a legally separate organization should be reported as an
investment if a government's holding of the equity interest meets the definition of an investment. A
majority equity interest that meets the definition of an investment should be measured using the equity
method, unless it is held by a special-purpose government engaged only in fiduciary activities, a
fiduciary fund, or an endowment (including permanent and term endowments) or permanent fund.
Those governments and funds should measure the majority equity interest at fair value.
For all other holdings of a majority equity interest in a legally separate organization, a government
should report the legally separate organization as a component unit, and the government or fund that
holds the equity interest should report an asset related to the majority equity interest using the equity
method. This Statement establishes that ownership of a majority equity interest in a legally separate
organization results in the government being financially accountable for the legally separate
organization and,therefore,the government should report that organization as a component unit.
This Statement also requires that a component unit in which a government has a 100 percent equity
interest account for its assets, deferred outflows of resources, liabilities, and deferred inflows of
resources at acquisition value at the date the government acquired a 100 percent equity interest in the
component unit. Transactions presented in flows statements of the component unit in that circumstance
should include only transactions that occurred subsequent to the acquisition.
The pronouncement became effective,but did not have a material effect on the financial statements.
Unusual Transactions, Controversial or Emerging Areas
We noted no transactions entered into by District during the year for which there is a lack of authoritative
guidance or consensus. All significant transactions have been recognized in the financial statements in the
proper period.
Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on
management's current judgments. Those judgments are normally based on knowledge and experience about past
and current events and assumptions about future events. Certain accounting estimates are particularly sensitive
because of their significance to the financial statements and because of the possibility that future events
affecting them may differ significantly from those expected. The most sensitive estimates affecting the District's
financial statements are depreciation, claims liability and actuarial estimates for net pension liability and net
other post-employment benefits liability.
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The value of the assets, liability and assumptions used to determine annual required contributions for other post-
employment benefits is determined by an actuary study provided to the District as of June 30, 2021. The value
of the District's net pension liability was obtained from an actuarial valuation provided by CCCERA.
Management's estimate of depreciation is based on the estimated useful lives of the capital assets, and its
estimate of claims is based on the District Attorney's estimates of current and potential litigation, as well as
actuary studies provided for the District as of June 30, 2021. We evaluated the key factors and assumptions used
to develop the depreciation expense and claims liability and reviewed the current actuary study and determined
that they are reasonable in relation to the basic financial statements taken as a whole.
Disclosures
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit,
other than those that are clearly trivial, and communicate them to the appropriate level of management. We did
not propose any audit adjustments that, in our judgement, could have a significant effect, either individually or
in the aggregate, on the District's financial reporting process.
Professional standards require us to accumulate all known and likely uncorrected misstatements identified
during the audit, other than those that are trivial, and communicate them to the appropriate level of management.
We have no such misstatements to report to the Board of Directors.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing
matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the
auditor's report. We are pleased to report that no such disagreements arose during the course of our audit.
Management Representations
We have requested certain representations from management that are included in a management representation
letter dated December 28, 2021.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an
accounting principle to the governmental unit's financial statements or a determination of the type of auditor's
opinion that may be expressed on those statements, our professional standards require the consulting accountant
to check with us to determine that the consultant has all the relevant facts. To our knowledge,there were no such
consultations with other accountants.
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Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the District's auditors. However, these discussions
occurred in the normal course of our professional relationship and our responses were not a condition to our
retention.
Other Information Accompanying the Financial Statements
We applied certain limited procedures to the required supplementary information that accompanies and
supplements the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the required supplementary information and do not express an
opinion or provide any assurance on the required supplementary information.
We were engaged to report on the supplementary information,which accompany the financial statements but are
not required supplementary information. With respect to this supplemental information, we made certain
inquiries of management and evaluated the form, content, and methods of preparing the information to
determine that the information complies with accounting principles generally accepted in the United States of
America, the method of preparing it has not changed from the prior period, and the information is appropriate
and complete in relation to our audit of the financial statements. We compared and reconciled the supplemental
information to the underlying accounting records used to prepare the financial statements or to the financial
statements themselves.
This information is intended solely for the use of the Board of Directors and management and is not intended to
be, and should not be,used by anyone other than these specified parties.
Pleasant Hill, California
December 28, 2021
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Attachment 3
Compensated Sick Leave Accrual Trend
$6,000,000 30.0%
22.3% L27.6%
$5,000,000 25.0%
$4,000,000 $5.35M 20.0%
$5.09M
$3,000,000 15.0%
$2,000,000 $1.20M $1.40M 10.0%
$1,000,000 — 5.0%
$- 0.0%
2015 2016 2017 2018 2019 2020 2021
Fiscal Year Ended June 30th
IIIIIIIIIIIIIIIII�Accrued Sick Leave Liability (left axis)
Total Compensated Absences Accrued Liability (left axis)
Sick Leave Share of Total (right axis)
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