HomeMy WebLinkAbout03.d. Review draft Position Paper to Accept 1) ACFR for FY June 30, 2023 and 2) Independent Auditors' Memo on Internal Control and Required Communications for the FY June 30, 2023Page 1 of 117
Item 3.d.
MEETING DATE:
NOVEMBER 27, 2023
BOARD OF DIRECTORS
POSITION PAPER
SUBJECT: REVIEW DRAFT POSITION PAPER TO ACCEPT (1) THE AUDITED
ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE
FISCAL YEAR ENDED JUNE 30, 2023, PERFORMED BY MAZE &
ASSOCIATES, AND (2)THE INDEPENDENT AUDITORS' MEMORANDUM
ON INTERNAL CONTROLAND REQUIRED COMMUNICATIONS FOR THE
FISCAL YEAR ENDED JUNE 30, 2023
SUBMITTED BY:
INITIATING DEPARTMENT:
KEVIN MIZUNO, FINANCE MANAGER ADMINISTRATION -FINANCE
REVIEWED BY: PHILIP LEIBER, DEPUTYGENERAL MANAGER -ADMINISTRATION
ROGER S. BAILEY, GENERAL MANAGER
ISSUE
The audited ACFR of Central San for the Fiscal Year ended June 30, 2023, and the independent auditors'
memorandum on internal control and required communications for the year ended June 30, 2023, are
being submitted to the Board for acceptance.
BACKGROUND
Independent Audit Results
The independent audit firm of Maze & Associates has completed their audit of Central San's annual
financial statements for the Fiscal Year ended June 30, 2023, 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 is conducted in accordance
with Generally Accepted Auditing Standards in the United States (GAAS). GAAS requires 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 incorporate an element of both internal control risks and inherent business
risks. Management is pleased to announce Central San's independent auditor's report for the fiscal year
ended June 30, 2023, expresses an unmodified (clean) opinion.
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The Independent Auditors' Report including the audit opinion is included on Pagel of the attached ACFR
(Attachment 1).
In accordance with California Government Code Section 53891, information from the audit is also used
to prepare an annual report filed with the California State Controller's Office (SCO). This report is referred
to as the Financial Transactions Report (FTR) and is prepared following the 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, 2023, will be remitted electronically by the January 31, 2024, reporting deadline.
The audited financial statements will also be sent to the Contra Costa County Auditor -Controllers 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 notify 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 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 -Insurance,
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 $72.8 million or 8.17 percent in 2022-23. This
increase is primarily due to the deferred inflows related to the pension plan decreasing by $126.8 million
offset by a net pension asset of $53.5 million in the prior year transforming to a net pension liability of
$37.8 million. Also, the deferred outflows related to the pension and OPEB plans decreased by a
combined $49.8 million from the prior year. These large changes in pension and OPEB plan related
deferred inflows, outflows, assets, and liabilities are attributable to Central San's plans being nearly fully
funded, making them highly susceptible to the investment market volatility experienced over the past year.
I n addition to market volatility considerations, timing also has an important impact on the performance of
the post -retirement benefit trusts. For instance, while both plans reported significant investment losses for
the calendar year ended December 31, 2022, they reported noteworthy returns for Fiscal Year ended
June 30, 2023, which is reflected in the ACFR (reported on a fiscal year, not calendar year, basis).
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
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requirements of Generally Accepted Accounting Principles (GAAP) issued by the Government
Accounting Standards Board (GASB), and to prepare an ACFR that provides transparency and full
disclosure, and then recognize individual governments that succeed in achieving that goal.
On August 2, 2023, Central San was awarded a Certificate ofAchievement for Excellence in Financial
Reporting by the GFOA for the report submitted for the Fiscal Year ended June 30, 2022, representing
the 23rd consecutive year Central San has received the award. The Certificate of Achievement is the
highest form of recognition for excellence in state 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 the 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, 2023. 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.
Commentary on Draft Status ofACFR
The ACFR included with the Finance Committee agenda packet is in draft form, allowing for the Finance
Committee, serving as an "audit committee" in this capacity, to provide feedback on any critical items prior
to finalization of the audit and report. Central San's independent auditors anticipate issuing the final audit
opinion with signature after the November 27, 2023, Special Finance Committee meeting, but prior to the
forthcoming Board acceptance meeting in December 2023. Accordingly, the ACFR is clearly marked
"draft" and the audit opinion letter commencing on page 1 of the ACFR is unsigned at this time.
ALTERNATIVES/CONSIDERATIONS
Preparation of an audited ACFR is required by law for all California Special Districts. The Board's
acceptance of the ACFR and the related independent auditors' memorandum on internal control and other
required communications is a necessary formality to finalize and permanently record receipt of the report.
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 and goals to provide
exceptional customer service and maintain an excellent reputation in the community.
FINANCIAL IMPACTS
The acceptance of the independently audited ACFR for the Fiscal Year ended June 30, 2023, does not
have any direct fiscal impact on Central San.
Staff intends to submit the attached ACFR to the GFOA for the Certificate ofAchievement for
Excellence in Financial Reporting program, for which there is an application fee for submission of an
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, 2024.
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COMMITTEE RECOMMENDATION
The Finance Committee reviewed this matter at its special meeting on November 27, 2023, and
recommended
RECOMMENDED BOARD ACTION
Accept the independently audited ACFR and accompanying auditors' memorandum on internal control and
required communications for the Fiscal Year ended June 30, 2023.
Strategic Plan Tie -In
GOAL FOUR: Governance and Fiscal Responsibility
Strategy 3 - Maintain financial stability and sustainability
ATTACHMENTS:
1. Annual Comprehensive Financial Report for Fiscal Year Ended June 30, 2023 (DRAFT)
2. Auditors' Memorandum on Internal Control (DRAFT)
3. Presentation
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" � - - �--1
CENTRAL CONTRA COSTA
SANITARY DISTRICT
ANNUAL
COMPREHENSIVE
FINANCIAL REPOFORTH E FISCAL YEARS ENDED JUNE 30,2t'fC
Pag Of 11
Attachment 1
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. -4
.Aftwo1r
11111MMM - -
3
�y
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CENTRAL CONTRA COSTA SANITARY DISTRICT
MARTINEZ, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
THE YEAR END
WITH SUMMARIZED
THE YEAR
Prepared By:
Finance Division
3
INFORMATION
30, 2022
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CENTRAL CONTRA COSTA SANITARY DISTRICT
Annual Comprehensive Financial Report
Table of Contents
For the Year Ended June 30, 2023
INTRODUCTORY SECTION:
Letterof Transmittal................................................................................................................................................ i
Boardof Directors................................................................................................................................................viii
MissionStatement...................................................................................................................................................ix
OrganizationChart...................................................................................................................................................x
Mapof Service Area................................................................................................................................................xi
Certificateof Achievement................................................................................................................................. xii
FINANCIAL SECTION:
Independent Auditors' Report .............................................
Management's Discussion and Analysis .................'
Basic Financial Statements
Statement of Net Position ....................... ..... .
Statement of Revenues, Expenses an n�
Statement of Cash Flows ..................................
Notes to Financial Statementsam.accomp
integral part of the basic finan
Required Supplementary Information
Cost -Sharing Multiply
Post -Retirement
Schedula�
.........................................................1
►...................................................... 5
12-13
On' Net Position ................................. ....15
....................................................................16-17
notes are an
.............................................................19-51
ied Benefit Retirement Plan - Schedule of
Liability (Asset).........................................................53
........................................................................................... 54
DeT1`ed Benefit Plan -
Net OPEB Liability and Related Ratios..............................55
............................................................................................................ 56
fNet Position.............................................................................................. 58
f Revenues, Expenses and
on - Enterprise Sub-Funds....................................................................59
STATISTICAL SECTION (Unaudited):
Changes in Net Position and Statement of Net Position -
LastTen Fiscal Years......................................................................................................................................... 61
Revenue by Type - Last Ten Fiscal Years..................................................................................................... 62
Operating Expenses by Type - Last Ten Fiscal Years.............................................................................. 63
Major Revenue Base and Rates - Historical and Current Fees -
LastTen Fiscal Years......................................................................................................................................... 64
Assessed and Estimated Actual Valuation of Taxable Property -
LastTen Fiscal Years......................................................................................................................................... 65
Property Tax and Sewer Service Charge Fees Levied and Collected -
LastTen Fiscal Years......................................................................................................................................... 65
Sewer Service Charge - List of Ten Largest Customers -
LastTen Fiscal Years......................................................................................................................................... 66
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Payments Under the Concord Agreement
LastTen Fiscal Years......................................................................................................................................... 67
Active Service Accounts and Fiscal Year Billings -
SewerService Charges..................................................................................................................................... 67
Summary of Debt Service - Type, Debt Service Coverage, Debt Ratio -
LastTen Fiscal Years......................................................................................................................................... 68
Ratios of Outstanding Debt - Debt as a Percentage of Per Capita Personal Income -
LastTen Calendar Years.................................................................................................................................. 69
Demographic and Economic Data - Population Served -
LastTen Calendar Years.................................................................................................................................. 70
List of Nine Largest Employers in Contra Costa County -
LastYear and Eight Years Ago....................................................................................................................... 70
Demographic and Economic Statistics - Contra Costa County -
LastTen Fiscal Years......................................................................................................................................... 71
Full-time Equivalent Positions Filled by Department -
LastTen Fiscal Years........................................................................................................................... 72
Number of Retirees and Surviving Spouses -
Last Ten Fiscal Years..............................................................
Capital Asset and Operating Statistics -
Last Ten Calendar or Fiscal Years ..........................
Miscellaneous Statistics ........................................
...................................................... 72
........................................... 73
................. M............................................ 73
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 128 of 271
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Page 10 of 117
110ENTRAL SAN
December 8, 2023
Central Contra Costa Sanitary District Customers and
The Honorable Board of Directors,
Martinez, California:
California Government Code section 26909 requires an audit
California State Controller's Office within twelve months of
report is published to fulfill that requirement for the fiscal y_4
Management of Central Contra Costa Sanitary Distri
the completeness and reliability of the informatiol
comprehensive system of internal controls that is es
internal control should not exceed anticipa bey
rather than absolute, assurance that th
misstatements.
The District's independent audi
on the District's financial stater
report is located at the front of t
Management's Discus
auditors' report and 4-
statements. The MD8
with it.
completed and filed with the
close of the fiscal year. This
dune 30, 2023 (FY 2022-23).
trict) asses full responsibility for
inancial statements, based upon a
for this purpose. Because the cost of
objective is to provide reasonable,
k�nents are free of any material
Ptes, has issued an unmodified ("clean") opinion
ed June 30, 2023. The independent auditors'
of this report.
vereport (MD&A) immediately follows the independent
troduction, overview, and analysis of the basic financial
this letter of transmittal and should be read in conjunction
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 352,000 residents of Danville,
Lafayette, Martinez, Moraga, Orinda, Pleasant Hill, San Ramon, Walnut Creek and some of the
unincorporated communities within its District boundaries. The District also treats wastewater for
approximately 133,000 residents of the Cities of Concord and Clayton under a 1974 (and as
subsequently amended) contract with the City of Concord.
The District is committed to protecting 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
i
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District's sewage collection system. The District is the sole provider of wastewater collection and
treatment 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 83% of
the Sewer Service Charge operating revenue. The District's treatment capacity has grown
significantly from a modest 4.5 million gallons per day (mgd) in 1948 to 53.8 mgd currently. Bonds,
certificates of participation, state/federal grants, and pay-as-you-go local revenue sources of the
District have traditionally financed capital expenditures and capacity expansions. While pay -as -you
go local revenue sources have been the primary financing mechanism for the District's capital
program over the past decade, debt financing is expected to gradually increase. This is
demonstrated by the issuance of $50.6 million in certificates of participation in June 2021 and up to
$98.5 million in approved California Water Board State Revolving Fund loan proceeds over the next
few years (from an approved loan of $173 million). In addition to these approved debt issuances,
the District's long-range financial plan also anticipates the use of additional debt financing for UV
disinfection upgrades, solids handling, and nutrient removal infrastructure needs.
The District also operates a Recycled Water Program, in toll ation with Contra Costa Water
District, that provides high -quality recycled water for la irrigation at schools, parks,
playgrounds, median strips and playing fields, as well as con nd industrial process uses.
Due to strong customer demand, the District mainta' operatio its Residential Recycled
Water Fill Station, which allows residential Gusto to o tain a m um of 300 gallons of
recycled water per trip for use in hand watering la an ping, and gardens. The District also
actively pursues new recycled water expansion oppo ies to take advantage of the potential
water supply that highly -treated wastewat resen articularly given California's limited
water supply. The District has been collab p water agency partners to jointly
invest in a project that will enable the District co future nutrient discharge regulations
while producing a new water supply eas region's water shortage. The District recently
executed a Memorandum of Und ndi with st Bay Municipal Utility District (EBMUD) that
will evaluate several potential ycled r cts together, including an option for potable
reuse - introducing highly-trea c er into EBMUD's drinking water supply. The
District continues to activ o ater recycling, given the role this would have in addressing
the statewide water sh ge an a oping effects of climate change.
In addition to its res ibility t collect and treat wastewater, the District also undertakes
pollution prevention initi s t gh the operation and maintenance of a permanent Household
Hazardous Waste (HHW) C on 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 26th year of
operation, the HHW Facility served over 30,000 residential and small business customers. On
average, over two million pounds of hazardous waste is collected and properly disposed of
annually, collecting over 1.8 million pounds of waste in FY 2022-23. In conjunction with its HHW
program, the District's Pharmaceutical Collection Program further encourages pollution prevention
having approximately 5,600 pounds of expired or unwanted medications between its seven
collection sites in FY 2022-23.
Organization. Accounting and Budgetary Controls
A five -member Board of Directors governs the District. The Board sets policies, appoints officers,
and hires and oversees the District's General Manager, Secretary of the District, and District
Counsel. The Board positions are non -partisan and serve staggered four-year terms. The District
began a transition from an "at -large" election system to an area -based "by -division" election system
ii
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under the California Voting Rights Act in 2020. Two Board members were elected in November
2022 and were the first to represent their respective division as part of the by -district election
system (Divisions 2 and 3). Thereafter, the remaining three Board members shall be elected on a
by -division basis in November 2024 (Divisions 1, 4 and 5) completing Central San's transition to a
by -district election system. 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 fiscal year-end out of 294 authorized permanent regular full-time
positions for that fiscal year. 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.
The District charges fees to external users for providing sewer collection and treatment services,
and these fees comprise the primary revenue source. Accordingly, pursuant to generally accepted
accounting principles issued by the Governmental Accounting Stan ds Board (GASB), the District
uses full accrual enterprise fund accounting to account for its o ations, which is similar, though
not identical, to private industry. The District currently enterprise fund for financial
reporting purposes, which is comprised of the followi our nal sub -funds for internal
accounting purposes:
■ Running Expense - accounts for the general
operating revenues and expenses are accounte
Operations & Maintenance or "0&M" Fun
■ Sewer Construction - accounts for non -
or construction of plant, property, and equi e
■ Self -Insurance - accounts for WalOwt ear
allocations from other funds,
the District's insurance polil
■ Debt Service - accounts for
bonds and loans. A990011h.
of the District. Substantially all
this fund (also referred to as the
evef1W that are to be used for acquisition
FITOWferred to as the Capital Fund).
on cash balances in this sub -fund and cash
premiums and claims not covered by
with the payment of the District's long term
Each year, the Boar, dopts the llowTng four budgets: Operations and Maintenance, Capital
Improvement (i.e. Sew onstruc ), Self -Insurance, and Debt -Service. The Board and Finance
Committee review inters na reports on a quarterly basis for fiduciary purposes, with
management receiving mo ailed monthly budget -to -actual results for budget monitoring
purposes. District manageme t is accountable for monitoring variances and adhering to overall
budget constraints. The Board has delegated various contracting and spending authority to the
General Manager, as specified by an adopted Board policy. Additional limited contracting and
spending authority is further delegated to certain staff classifications as specified by internal
signature limits. The District also has several documented financial policies (i.e., debt management,
investments, fiscal reserves, pension and OPEB funding, etc.) that are periodically reviewed and
updated to ensure their consistency with best practices as well as changes in laws and regulations.
iii
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ASSESSING THE DISTRICT'S ECONOMIC CONDITION
Statewide Economy and Outlook
According to the State of California's Legislative Analyst's Office (LAO), despite the strong rebound
from the global pandemic observed in the prior year, significant rate hikes by the Federal Reserve
to curb growing inflation in calendar year 2022 and 2023 have led to weaknesses in certain parts of
the State's economy, particularly housing and financial markets. Many economists expect this
weakness to continue over the next year and have downgraded their outlook for the economy.
State tax collections in recent months have been weaker than estimated by the State's FY 2022-23
budget. Estimated income tax payments for 2022 were notably weaker than 2021, likely due to
falling stock prices, and reduced capital gains taxes. The LAO's FY 2023-24 fiscal outlook
anticipates a $25 billion budget deficit mainly attributable to lower revenue estimates from FY
2021-22 through FY 2023-24 by $41 billion, offset by reductions in spending. Their outlook
projects annual deficits declining from $17 billion to $8 billion over the next several years. These
estimates incorporate a risk of recession but do not reflect a rec ion scenario, which if it does
occur, could lead to revenues coming in $30 to $50 billion below outlook projections. The State
currently has roughly enough in reserves ($23 million) to he budget deficit, but not if a
recession occurs. The LAO is recommending a pause ud llocations to one-time and
temporary programs to reduce spending. A key ass tion in t ultiyear outlook is that
estimated revenues are expected to decline in the sh erm, hen stabs and remain largely flat
between FY 2023-2024 and FY 2024-25, and then g ag ' FY 2025-26 through 2026-27 after
the effects of inflation and corresponding Federal Rese e hikes subside.
According to the
unemployment
combination of h
economic growtl
Long -Term Financial Planning
The District strives to ma' n lent reputation in providing public service, which includes
transparent and access' gove ce, ancial reporting and management, sewage collection and
treatment, workforc ety, capit pr ements and replacements, innovative use of technology,
and customer service. a Board f Directors approved a four-year sewer service charge rate
adjustment schedule in 20 panning July 2019 through June 2023. The four-year sewer
service charge rate increase ed from 4.75% to 5.25% annually, subject to a Board review for
continued necessity prior to t e start of each fiscal year. The planned increases are a critical
component of implementing the treatment plant and collection system capital improvement
projects specified in the District's 20-year Master Plan adopted in 2017. In the spring of 2023, two
years of rate adjustments were adopted for the upcoming two fiscal years, with overall Sewer
Service Charge rates increasing by 1% and 4%, respectively.
As noted previously, in conjunction with the approved sewer service charge rates, the District's
latest 10-year financial plan anticipates some use of additional debt financing to address major
capital spending projects including upgrades to the UV disinfection system, solids handling, and
nutrient removal infrastructure needs. Despite this long-term ramping up in projected capital
financing needs, the FY 2023-24 capital budget is decreasing by approximately $19.8 million
(21.7%) from the prior year's adopted budget, largely attributable to project construction delays
related to pandemic related global materials supply chains. In total, capital budget carryovers
(unused spending authority carried forward to a subsequent year) into FY 2023-24 are
.e Contra Costa County
-ptember 2023. This
to slower than normal
iv
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approximately $78.8 million, which Management and the Board are taking into consideration while
forecasting sewer service charge revenue needs for FY 2023-24 and beyond.
District management analyzes and updates a strategic plan every two years, with the seven goals in
effect during FY 2022-23 being:
1. Customer and Community - Provide exceptional customer service,
2. Environmental Stewardship - Meet regulatory requirements, promote sustainability, and
identify and reduce contributions to climate change and mitigate its impacts,
3. Workforce Diversity & Development - Recruit, educate, empower, and retain a workforce
from diverse backgrounds,
4. Governance & Fiscal Responsibility - Uphold integrity, transparency, and wise financial
management in an effective governing model,
5. Safety & Security - Provide a safe, secure, and healthful workplace that foresees and
addresses threats,
6. Infrastructure Reliability - Maintain facilities and eqtjjAent to be dependable resilient,
7
and long lasting, and
Innovation & Agility
flexible and adaptable.
Strategies to achieve each of these seven goals are
Performance on achievement of the goals in thi
District updates a 10-year financial plan e
adoption of the annual budget. The main eco
exercise are: the impact of state legislation an
requirements, negotiated labor con term
health care costs), energy costs a ter ting
and infrastructure renewal an eDlac ne
(UAAL) for the District's
considered in the financiz
actuarial reports, the
92.4% for its Densio n
plan as of the June 30,
the December 31, 2022
plan is likely to remain I
account when developing
beyond.
improvement and remain
well as metrics to evaluate success.
irted quarterly to the Board. The
the completion, presentation, and
idered in this long-term forecasting
regulatory compliance, GASB reporting
:luding projected changes in retirement and
energy market, interest rates, housing growth,
The unfunded actuarial accrued liabilities
MOI!Wst-employment benefit (OPEB) plans are also
ss. Pursuant to the most recently issued independent
fiduciary net position in both plans of approximately
er 31, 2022 measurement date and 100.2% for its OPEB
date. Due to continued downturn in the markets since
, the District assumes the funded status of the pension
ie next actuarial study, which will also be taken into
-vice charge rates and allocations for FY 2024-25 and
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 at least biennially by the Board. During FY 2022-23 the District Board
directed an additional $1,000,000 be contributed to the OPEB Trust as a mechanism to hedge
against potential future employer OPEB contribution rate volatility. The Pension Prefunding Trust
was 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
v
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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 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 its
relatively shorter -term needs. 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 2022-23 was to be an innovative industry leader in
environmental stewardship and sustainability, while delivering exceptional 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 meaWes.
The District has received the Platinum award from the iMl Association of Clean Water
Agencies (NACWA) for 25 straight years in recognition rITOOoo pliance with our National
Pollutant Discharge Elimination System (NPDES) per It has reduced the number of
sanitary sewer overflows by more than 85% in the p 0 ye s by imp ed sewer cleaning and a
robust sewer rehabilitation program.
As described previously, the District review adopt trategic Plan every two years. In FY
2021-22, the District Board and Managemen e a Strategic Plan for FY 2022-23 and
FY 2023-24, which was completed and adopt by d in the Spring of 2022, immediately
prior to the adoption of the FY 2022- get. istrict continues to analyze current and future
rates, costs, and cash flows to en co tenc ith cost of service studies (initially adopted in
FY 2014-15 and then updated i 201 r th ur-year rate plan extending through FY 2022-
23).
In order to effectively age a s t�et future state and federal regulatory requirements, the
District initiated a sset Man men Program and the preparation of a Comprehensive
Wastewater Managem Ian to e luate options for addressing future regulatory requirements.
The latest Management P as pleted in FY 2016-17 and is intended to be used as a roadmap
for capital improvements ov 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 (UPCCA), 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, 2022. This was the 23ra
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.
vi
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 135 of 271
Page 16 of 117
A Certificate of Achievement for Excellence in Financial Reporting is valid for a period of one year
only. Management is confident the current ACFR continues to meet the program's requirements
and intends to submit it to the GFOA to determine its eligibility for another certificate.
This report could not have been accomplished without the dedication and commitment provided by
District staff. Management would like to express sincere 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; Diana Diaz, Accounting Supervisor
(Provisional) ; Amal Lyon, Accountant; and Tricia Cruz, Accountant.
■ The Reproduction and Graphics Team of the Communications & Intergovernmental Affairs
Division 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 do ent.
■ The District's Board of Directors and Management team f eir support in preparing this
document as well as their day-to-day support in overs he financial operations of the
District in a prudent and responsible manner
Respectfully submitted,
Philip Leiber, CPA
Deputy General Mangy
<_ N
Mizuno, CPA
Manager
vii
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 136 of 271
Page 17 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
BOARD OF DIRECTORS
June 30, 2023
Barbara D. Hockett........................................................................ President
Mariah N. Lauritzen ...................................................President Pro-Tem
Michael R. McGill.............................................................................. Member
TadJ. Pilecki....................................................................................... Member
Member
viii
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 137 of 271
-6D CENTRAL SAN
CENTRAL CONTRA COSTA SANITARY DISTRICT
MISSION, VISION,
& VALUES
OUR MISSION
To protect public health and the environment
OUR VISION
To be an innovative industry leader . -4nvironmental
stewardship and sustainability, whilp. aelivt ,ng exceptional
service at respons'. )le rates
OUR VAL.'rj
Our core values guide our -`1v deci. 'ons and how we fulfill
our mission, 'isiu, , -na goals
• CUSTOMER SERVICE
INNOVATION
We are responsive to our custc iers, r ,H XA/e We continuously improve and optimize our
deliver on our commitment to pi. + J sate, operations.
reliable, and cost-efficient ENVIRONMENTAL SUSTAINABILITY
EMPLOYEES We conduct our business to safeguard and
We empower our employ qs to d their best improve our planet.
work. Y,
W7NT-EGRITY
We hold ourselves accountable to a
high standard of honesty, reliability, and
transparency.
all backgrounds,
Actives, and we are
•inciples of equity and
Z1
."' .r _ stir® _
Page 19 of 117
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November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 139 of 271
Page 20 of 117
Central Contra Costa Sanitary District Service Area
J u ne 30, 2023 Date: 10/25/2023
Benicia
San Suisun Ba
Pablo
Bay
Hercules
4)
Martinez • j
O
Pleasant Hill
Wall
Lafayett
Berkeley O Orinda
10
Ilk
Legend
Central San's Headquarter, Treatment Plant,
and HHW Collection Facility
Central San's Collection System Operations
Department (sewer maintenance) Building
Wastewater collection and treatment and
HHW collection for 352,183 people
Wastewater treatment and HHW collection
for 133,489 residents in Concord and Clayton
by contract
HHW disposal services only
Concord
reek
ow
Danville
a
San Ramon
O�
PUmD and Lift Stations
1. Martinez
2. Fairview
3. Maltby
4. Clyde
5. Concord Industrial
6. Buchanan Field North
7. Buchanan Field South
8. Sleepy Hollow
9. Acacia
Pittsburg
10. Flush Kleen
11. Lower Orinda
12. Bates Blvd. - Orinda
13. Orinda Crossroads
14. Moraga
15. San Ramon
16. Wagner Ranch
17. Lower Wilder
18. Upper Wilder
O Pump or Lift Station 0
O'
Privately Owned Pump Station
Antioch
2 4 A
� II
Miles ^'
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 140 of 271
Page 21 of 117
Government Finance Officers Association
Centr
Certificate of
Achievement
a Sanitary District
alifornia
R'its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
xii
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 141 of 271
Page 22 of 117
42 of 271
Page 23 of 117
Fl. MAZE
&ASSOCIATES
INDEPENDENT AUDITORS' REPORT
To the Board of Directors
Central Contra Costa Sanitary District
Martinez, California
Opinions
We have audited the accompanying financial statements of the business -type activities of the Central Contra Costa
Sanitary District (District), California, as of and for the years ended June 30, 2023, and the related notes to the
financial statements, which collectively comprise the District's basic financial statements as listed in the Table of
Contents.
In our opinion, the financial statements referred to above present fairly,
financial position of the business -type activities of the District as of Ju
positions and, cash flows thereof for the years then ended in accor
accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing
Our responsibilities under those standards are further
Financial Statements section of our report. We are r
ethical responsibilities, in accordance with the releval
audit evidence we have obtained is sufficient and app
Responsibilities of Managementfor
Management is responsible for the
accounting principles generall
maintenance of internal co rel
from material misstatemen , eth
In preparing the financial statem
considered in the aggregate, that rai
twelve months beyond the financial
substantial doubt shortly thereafter.
Accountancy Corporation
3478 Buskirk Avenue, Suite 215
Pleasant Hill, CA 94523
�all material respects, the respective
, 2023, and the change in financial
with accounting principles generally
y accepted in the United States of America.
uditor's Responsibilities for the Audit of the
lendent of the District and to meet our other
,nt relating to our audit. We believe that the
a basis for our audit opinions
of these financial statements in accordance with
States of America; and for the design, implementation, and
on and fair presentation of financial statements that are free
iragement is required to evaluate whether there are conditions or events,
stantial doubt about the District's ability to continue as a going concern for
statement date, including any currently known information that may raise
r 925.930.0902
F 925.930.0135
e maze@mazeassociates.com
w mazeassociates.com
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 143 of 271
Page 24 of 117
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that
an audit conducted in accordance with generally accepted auditing standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control. Misstatements are considered material if there is a substantial likelihood that,
individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial
statements.
In performing an audit in accordance with generally accepted auditing standards, we:
• Exercise professional judgment and maintain professional
• Identify and assess the risks of material misstatement
or error, and design and perform audit procedures r
examining, on a test basis, evidence regarding theJ
• Obtain an understanding of internal control
are appropriate in the circumstances,
effectiveness of the District's internal co
4
• Evaluate the appropriateness
accounting estimates made
statements.
• Conclude whether,
raise substantial c]�
of time.
We are required to comm
scope and timing of the
identified during the audit.
throughout the audit.
statements, whether due to fraud
`risks. Such procedures include
6s in the financial statements.
audit in order to design audit procedures that
purpose of expressing an opinion on the
kpo such opinion is expressed.
Rlolicies used and the reasonableness of significant
well as evaluate the overall presentation of the financial
there are conditions or events, considered in the aggregate, that
ict's ability to continue as a going concern for a reasonable period
charged with governance regarding, among other matters, the planned
audit findings, and certain internal control -related matters that we
Report on Summarized Comparative Information
We have previously audited the District's June 30, 2022 financial statements, and we expressed an unmodified audit
opinions on those audited financial statements in our report dated December 8, 2022. In our opinion, the
summarized comparative information presented herein as of and for the year ended June 30, 2022 is consistent, in all
material respects, with the audited financial statements from which it has been derived.
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 144 of 271
Page 25 of 117
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 is the responsibility of management and, 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.
Supplementary Information
0Our audit was conducted for the purpose of forming opinions on the c tatements that collectively comprise
the District's basic financial statements. The accompanying Su entary ation, as listed in the Table of
Contents, is presented for purposes of additional analysis and i a required p the basic financial statements.
Such information is the responsibility of management and deriv om and relates directly to the underlying
accounting and other records used to prepare the basic finance ents. The information has been subjected to
the auditing procedures applied in the audit of the asic finan statements and certain additional procedures,
including comparing and reconciling such informati to th derlying accounting and other records used
to prepare the basic financial statements or to the is atements themselves, and other additional
procedures in accordance with auditing stan ds ge acce ed in the United States of America. In our
opinion, the Supplementary Information tated, all material respects, in relation to the basic financial
statements as a whole.
Other Information
Management is responsible he other rm3n included in the annual report. The other information comprises
the Introductory Section a tatistical tion listed in the Table of Contents, but does not include the basic
financial statements and our a is re thereon. Our opinions on the basic financial statements do not cover
the other information, and we do s an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information and
consider whether a material inconsistency exists between the other information and the basic financial statements, or
the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude
that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.
Pleasant Hill, California
DATE
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 145 of 271
Page 26 of 117
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 146 of 271
Page 27 of 117
Jl Central Contra Costa Sanitary District
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, 2023 (2022-23). This
information is presented in conjunction with the audited financial statements, which follow this report.
FINANCIAL HIGHLIGHTS
The District's 2022-23 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 $72.8
is primarily due to the deferred inflows related to the 4
offset by a net pension asset of $53.5 million in the i
$37.8 million. Also, the deferred outflows relate the
combined $46.9 million from prior year. Thes rge c
deferred inflows, outflows, assets, and liabilities a
fully funded, making them susceptible to tlye investm
year.
Total operating revenue, dec
attributable to the portion of
66.9% in prior year to 41.1°/
increase to the operational
after 2021 Wastewater -Lee
million in proceeds
partially offset byA
year due to multipll
n or 8.2% in 2022-23. This increase
si lan decreasing by $126.8 million
year ng to a net pension liability of
pension OPEB plans decreased by a
Jhges in pension and OPEB plan related
stable to the District's plans being nearly
arket volatility experienced over the past
ron oi41.2% in 2022-23. This decrease is directly
!s revenue allocated to operations decreasing from
ise of $49.0 million. In the prior year, a significant
rvice charge allocation was directed by the Board
of Participation (2021 COPS) were issued generating $58.0
dal projects in lieu of sewer service charges. This decrease is
q million in investment earnings when compared to the prior
,s from the Federal Reserve throughout 2022 and into 2023.
Total 2022-23 operatin ses other than depreciation increased by $7.3 million or 9.1%. This
increase is largely attribut e to an increase in pension -related expenses related to the increase in
the net pension liability, described previously.
• Capital Contributions increased in 2022-23 by $61.7 million or 255.3%. The increase is mainly due
to a reduced allocation of sewer service charges allocated to finance capital projects by the Board
following the issuance of the 2021 COPS, as noted previously. To a lesser extent, the increase was
also caused by an increase in capacity fees and contributions from the City of Concord for its flow -
based proportionate share of treatment plant and other eligible capital project costs.
November 27, 2023 Special FINANCE Committee Meting Agenda Packet - Page 147 of 271
Page 28 of 117
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 fiJor,al resources (short-term
spendable resources) with capital assets, deferred outflow sources, long-term obligations, and
deferred inflows of resources.
Statement of Re
and non-operatir
capital contributi
Statement of Ca
financing activit
activities.
ion-'I*orts the District's operating
Ling and non -operating expenses and
rom operating activities, non -capital
investing activities, and non -cash
0
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 148 of 271
Page 29 of 117
STATEMENT OF NET POSITION
The following table shows the condensed statement of net position of the District for the past three fiscal
years:
Table 1- Condensed Statement of Net Position
Assets
Current assets
Capital assets, net
Other non -current assets
Total assets
Deferred outflows
Pension related
OPEB related
Total deferred outflows
Liabilities
Current liabilities
Long-term liabilities
Total liabilities
Deferred inflows
Pension related
OPEB related
Lease related
Total deferred inflows
Netposition
Year Ending June 30
2023
2022
2021
$ 219,378,496
$ 174,679,739
$ 136,391,239
849,413,151
812,744,909
760,567,573
5,412,595
59,093,444
36,572,236
1,074,204,242
1,046,518,092
933,531,048
78,754,514
122,427,550
95,805,386
5,100,448
8,302,309
4,117,730
83,854,962
130,729,859
99,923,116
25,281, 001 27,956,046
104,306,325 72,665,537
129,587,326 100,621, 583
52,931,043 179,778,943
8,555,091 2,087,946
3,970,164 4,514,638
65,456,298 186,381,5271
Net investment in capital assets 781,637,137 747,646,783
Restricted 1,527 &0&4
Unrestricted 181,376,916 598,
Total net position $ 963,015,580 90,244,
2023 vs. 2022 2023 vs. 2021
$Increase % Increase $Increase % Increase
(Decrease) (Decrease) (Decrease) (Decrease)
$ 44,698,757 25.6% $ 82,987,257 60.8%
36,668,242 4.5% 88,845,578 11.7%
(53,680,8491 -90.8% (31,159,6411 -85.2%
27,686,150 2.6% 140,673,194 15.1%
(43,673,036) -35.7% (17,050,872) -17.8%
3 201 -38.6% 982,718 23.9%
(46,8 7) -3S.9% (16,068,154) -16.1%
28,102,111
W[2,6
-9.6%
(2,821,110)
-10.0%
119474622
31,6401W
43.5%
(15,168,2971
-12.7%
147,576,7
28,965,74
28.8%
(17,989,407)
-12.2%
48, 5
6,847,900)
-70.6%
4,830,608
10.0%
12,28 ,
6,467,145
309.7%
(3,732,678)
-30.4%
(544,4741
100.0%
3,970,164
100.0%
388,204 20,925,229)
-64.9%
5,068,094
8.4%
8 4,242
33,990,354
4.5%
96,802,895
14.1%
929,105
1,513
10807.1%
(34,927,578)
100.0%
725,880
38,778,872
27.2%
75,651,036
71.6%
8 89,227
$ 72,770,739
8.20X,
$ 137,526,353
16.7%
The total net position of the D' cr d from $890.2 million in 2021-22 to $963.0 million in 2022-23,
an increase of 8.2%. This is ncre?.0
$ 5 million, or 16.7% when compared to 2020-21. Total assets
increased $27.7 million 6% cod to 021-22 and increased $140.7 million or 15.1% compared to
2020-21. Total liabilities easmillion or 28.8% compared to 2021-22 and decreased $18.0
million or 12.2% compared to 0he increase in net position over the three-year period totals $137.5
million, or 16.7%, resulting mospension-related actuarily determined deferred inflows decreasing
from $179.8 million in 2021-22 tomillion in 2022-23 and the prior year's net pension asset of $53.5
million flipping to a net pension liability of $37.8 million.
As a public utility relying heavily on a complex infrastructure network, the largest portion of the District's
net position by far (81.2%) 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 wastewater treatment,
collection, and other services to its customers; 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 $178.5 million in
unrestricted net position reflects an increase of $35.9 million from 2021-22 and increased by $72.8 million
from 2020-21. As noted previously, this increase was primarily a result of a decrease in pension related
deferred inflows offset by an increase in the net pension liability.
7
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 149 of 271
Page 30 of 117
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
2023 vs. 2022 2023 vs. 2021
$ Increase % Increase $ Increase % Increase
2023
2022
2021 (Decrease) (Decrease) (Decrease) (Decrease)
Revenues
Operating revenues
Sewer service charges $
67,758,217
$ 116,767,447
$ 87,327,907 $ (49,009,230) -42.0% $ (19,569,690) -22.4%
Other
2,233,077
2,164,237
1,914,654 68,840 3.2% 318,423 16.6%
Total operating revenue
69,991,294
118,931,684
89,242,561 (48,940,390) -41.2% (19,251,267) -21.6%
Non -operating revenues
Property taxes
22,933,224
21,239,420
20,516,826 1,693,804 8.0% 2,416,398 11.8%
Permit and inspection fees
2,042,467
2,308,395
2,440,187 (265,928) -11.5% (397,720) -16.3%
Investment earnings
4,125,473
772,909
1,678,028 3,352,564 433.8% 2,447,445 145.9%
Other
1,203,563
2,053,331
3,193,569 (849,768) -41.4% (1,990,006) -62.3%
Total non -operating revenue
30,304,727
26,374,055
27,828,610 0 672 14.9% 2,476,117 8.9%
Total revenues
100,296,021
145,305,739
117,071,171 9,718) -31.0% (16,775,150) -14.3%
Expenses
Operating expense other than depreciation
87,1S0,184
79,894,599
83,913,47 S85 9.1% 3,236,707 3.9%
Depreciation
25,003,263
22,8S3,140
21,531& 2, 23 9.4% 3,471,961 16.1%
Non -operating expenses
1,177,471
1,950,841
SAW6 77 -39.6% 635,245 117.2%
Total expenses
113,330,918
104,698,580
10 '00S 8,632, 8.2% 7,343,913 6.9%
Income before capital contributions
(13,034,897)
40,607,159
084,16 (S3,642,056)-132.1% (24,119,063)-217.6%
Capital contributions
85,805,636
24,148,455
4 3 61,657,181 25S.3% 39,161,303 84.0%
Increase in net position
72,770,739
64,7
S7,728, 8,015,125 12.4% 15,042,240 26.1%
Beginning net position
890,244,841
82548 7
760.72 64,755,614 7.8% 122,484,113 16.0%
Ending net position $
963,015,580
$ 890,244,
$ 7 $ 72,770,739 8.2% $ 137,526,353 16.7%
Revenue
Total operating revenues decrease m $1 illi
in 2021-22 to $70.0 million in 2022-23, a decrease
of $48.9 million or 41.2%. This
is a
e
million or 21.6% when compared to 2020-21. This
decrease in operating reven
ri
attributable to a large decrease in the proportion of sewer
service charges authorized
a to operating and maintenance costs, and an offsetting increase
in funding for capital im ement
pr
ts.
Total non -operating revenue
rea
from $27.8 million in 2020-21 to $26.4 million in 2021-22 and
increased to $30.3 million in 2
Total non -operating revenues in 2022-23 increased compared to
2021-22 by $3.9 million or 14.9% a d increased by $2.5
million or 8.9% comparing 2022-23 to 2020-21.
Total revenues increased from $117.1 million in 2020-21 to $145.3 million in 2021-22 and decreased to
$100.3 million in 2022-23. The change in total revenue represented a decrease of $45.0 million or 31.0%
comparing 2022-23 to 2021-22 and a decrease of $16.8 million or 14.3% comparing 2022-23 to 2020-21.
Revenue attributable to secured property taxes grew over the prior year due to property value growth
attributable to Prop 13 valuation growth, property sales, as well as development within the District.
Accordingly, property tax revenue increased by $1.7 million or 8.0% from 2021-22 to 2022-23, and $2.4
million or 11.8% comparing 2022-23 to 2020-21. Sewer service charge rate collected in 2022-23 reflects an
increase of 4.5% (to $690) for single family homes and 4.6% (to $654) for multi -family homes.
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 150 of 271
Page 31 of 117
Expenses
Total expenses increased from $104.7 million in 2021-22 to $113.3 million in 2022-23, an increase of $8.6
million or 8.2%. This is an increase of $7.3 million or 6.9% when compared to 2020-21. As noted previously,
this increase from prior year is largely attributable to the net pension liability and recognition of a $15.0
million pension expense adjustment (see Note 9 in the audited financial statements) due to decreased market
performance of assets in the pension trust.
Total income before capital contributions went from $11.1 million in 2020-21, to $40.6 million in 2021-22,
and decreased to -$13.0 million in 2022-23. The significant decrease from 2021-22 to 2022-23 is attributable
to a larger portion of sewer service charges being allocated to operations, as described previously.
Total capital contributions in 2022-23 were $85.8 million compared to $24.1 million in 2021-22 and $46.6
million in 2020-21. As noted previously, this increase was mainly derived from an increase in the allocation
of sewer service charges to the capital program.
CAPITAL ASSETS
Net capital assets for fiscal years 2022-23, 2021-22 and 2020-21 to $849.4 million, $812.7 million, and
$760.6 million, respectively. Net capital assets include the Dist ' ire major infrastructure including
wastewater treatment facilities, sewers, land, buildings, pu g state vehicles, intangible assets and
furniture and equipment exceeding the District's capitaliza ' policy limi 5,000, less depreciation. As
of June 30, 2023, the District's investment in capital asset aled 9.4 milli , an increase of $36.7 million
or 4.5% over the net capital asset balance of $812.7 milli J 30, 2022. Net capital assets increased by
$88.8 million or 11.7% comparing 2022-23 to 2020-21. A arison of the District's capital assets, net of
depreciation, over the past three fiscal years is prIftliLd belo
Table 3 - Net Capital Assets
Year E 0
2023 vs. 2022
2023 vs. 2021
$Increase
% Increase
$Increase
% Increase
2023
2022 1
(Decrease)
(Decrease)
(Decrease)
(Decrease)
Structures, buildings, and
equipment
$ 700,065,6
$ 6 750 $ 631,932,004
$ 5,721,869
0.8%
$ 68,133,615
10.8%
Land and rights of way
22,5
2, 07 22,290,077
2,500
0.0%
294,930
1.3%
Construction in progress
126 525
81 106,345,492
30,943,873
32.3%
20,417,033
19.2%
Total
8 3,151
8 44,9 760,567,573
36,668,242
4.5%
88,845,578
11.7%
0
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Page 32 of 117
The increase in capital assets, net of depreciation, of $36.7 million from 2021-22 to 2022-23 and $88.8
million from 2020-21 to 2022-23 is a result of an expanding capital improvement program over these years
to address the replacement of aging treatment plant and collection system infrastructure, address regulatory
requirements, and improve the sustainability of operations and technology. In this timeframe, spending has
exceeded annual depreciation with capital outlays largely financed by pay-as-you-go resources (i.e., new
revenue and reserves) rather than debt. This year's major addition to construction -in -progress includes the
following:
Project Number Project Description
7361 Filter Plant & Clearwell Improvements Ph. 1A
100015
Electric Blower Improvements
7348
Solids Handling Facility Improvements Ph. 1A
8457
Pump Station Upgrades - Ph. 2
100023
Walnut Creek Renovation Ph. 16
8466
8464
7328
7369
100019
Danville Sewer Renovation Ph. 4
Martinez Sewer Renovation Ph. 7
Influent Pump Electrical Improvements
Piping Renovation - Ph. 10
Aeration Basins Diffuser Replacement &
Refer to Note 5 in the audited financial statements for
DEBT ADMINISTRATION
Total long-term debt, excluding liabilities
fiscal years 2022-23, 2021-22 and ?A
respectively. As of June 30, 2023, tt
of $3.7 million or 5.7% over the debt
or 10.5% comparing 2022-23 to
received from the Clean W
Solids Handling Facility I oveme
offset by the repayment o er out
repayment of debt issuance th
additional information on the
Capital Outlay
$ 8,289,958
5,787,796
5,508,639
4,608,040
4,330,621
3,451,855
2,573,435
2,315,449
1,697,440
1,570,664
$ 40,133,897
on the District's capital assets.
led to n, OPEB and compensated absences liabilities, for
to
ta $67.8 million, $64.1 million, and $75.7 million,
outsta ng debt totaled $67.8 million, which is an increase
ion at June 30, 2022. Debt decreased by $7.9 million
e increase in debt obligations is due to $15.6 million in proceeds
C
Fund in the current year to reimburse eligible costs for the
roject and are to be repaid after completion of the project,
Fng
debt. The primary source of funds pledged to and securing the
tal improvement program is property taxes. Refer to Note 6 for
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.
10
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 152 of 271
Page 33 of 117
• Interest rate and/or investment return, which directly impacts investment earnings, borrowing costs,
and employer pension and OPEB contribution requirements.
• Inflation, as measured using the consumer price index (CPI). The CPI for the San Francis co- 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
could 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 2023, the
District's Board of Directors adopted an operating and maintenance budget of $90.9 million and sewer
construction capital improvement budget of $71.2 million for the fiscal r ending June 30, 2023. Following
a cost of service study, customer outreach, public noticing, and a P is Hearing stipulated by Proposition
218, on June 30, 2023 the District's Board of Directors approved r service charges for the two-year
timeframe spanning July 1, 2023 to June 30, 2025. The new wer se charge rates reflect an overall
modest rate increase of 1% for the year ending June 30, 20 nd 4% for th ar ending June 30, 2025.
As designed in the District's financial model, steady but cm
prevent spikes in revenue needs from customers in future
to significantly, but temporarily, outpace annI
L
necessary debt financing, is designed with the intf a
both the District and its customers. Primar dri
include the need to enhance and mod ict'requirements and ensure the sustai ity o uc
increased demand for service canac
FINANCIAL CONTACT
This financial report is dlq
a general overview of the Di
and tax payer revenues it
information, contact: Kevin
Place, Martinez, CA 94553.
o sewer service charge rate increases help
when annual capital spending is expected
s. pay-as-you-go approach, paired with
r'd�Ce stability and avoid volatility, benefiting
nsion of the capital improvement program
ageing infrastructure to meet new regulatory
.ire as the region's population grows driving an
the District's customers, creditors, and other stakeholders with
and to demonstrate accountability and transparency for user fee
have questions about this report or need additional financial
-e Manager, Central Contra Costa Sanitary District, 5019 Imhoff
11
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Page 34 of 117
Central Contra Costa Sanitary District
Statements of Net Position
June 30, 2023 and 2022
ASSETS
CURRENT ASSETS
Cash and cash equivalents (Note 2)
Restricted cash and investments (Note 2)
Unrestricted investments (Note 2)
Restricted investments (Note 2)
Accounts receivable, net (Note 3)
Current portion of lease receivable (Note 12)
Interest receivable
Prepaid assets
Supplies & material inventory
Total current assets
NON -CURRENT ASSETS
Non -current portion of lease receivable (Note 12)
Assessment Districts receivable (Note 4)
Net pension asset (Note 9)
Net OPEB asset (Note 10)
Capital assets:
Nondepreciable (Note5)
Depreciable, net of accumulated depreciation (Note5)
Total non -current assets
TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES
Pension related (Note 9)
OPEB related (Note 10)
Total deferred outflows of
2023 2022
$23,058,319
$19,368,680
1,527
14
158,640,000
123,540,000
43,662
41,954
29,525,698
26,147,698
605,747
502,430
429,894
289,240
1,273,175
662,199
5,800,474
4,127,524
219,378,496
174,679,739
3,618,647
4,133,358
1,642,035
1,416,297
-
53,543,789
151,913
-
149,347,532
118,401,159
700,065,619
694,343,750
854,825,746
871,838,353
1,074,204,242
1,046,518, 092
1
78,754,514
122,427,550
5,100,448
8,302,309
83,854,962
130,729,859
notes to financial statements
12
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Page 35 of 117
Central Contra Costa Sanitary District
Statements of Net Position
June 30, 2023 and 2022
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Salaries & benefits payable
Interest payable
Provision for uninsured claims (Note 7)
Deposits payable
Compensated absences payable, current (Note 617)
Current portion of long-term obligations (Note 6)
Current portion of lease payable (Note 12)
Current portion of SBITAs (Note 12)
Total current liabilities
NON -CURRENT LIABILITIES
Net pension liability (Note 9)
Net OPEB liability (Note 10)
Non -current portion of long term obligations (Note 6)
Accrued compensated absences - non -current (Note 617)
Non -current portion of lease payable (Note 12)
Total non -current liabilities
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
Pension related (Note 9)
OPEB related (Note 10)
Lease receivable (Note 12)
Total deferred inflows of
NET POSITION (NOTE 11)
Net investment in capital ass
Restricted net position
Unrestricted net position
2023 2022
11,872,513
1,464,669
1,618,035
1,719,986
268,404
580,239
7,090,000
182,246
484,909
25.281.001
10,952,960
2,179,677
1,327,197
1,504,476
434,726
627,288
10,750,000
179,721
27,956,046
37,772,326
-
-
12,851,545
0,686,014
53,360,320
5,222,146
5,645,587
625,839
808,085
104,306,325
72,665,537
129,587,326
100,621,583
52,931,043
179,778,943
1
8,555,091
2,087,946
3,970,164
4,514,638
65,456,298
186,381,527
781,637,137 747,646,783
1,527 14
181,376,916 142,598,044
ON $963,015,580 $890,244,841
See accompanying notes to financial statements
13
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Page 36 of 117
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Page 37 of 117
Central Contra Costa Sanitary District
Statements of Revenues, Expenses and Changes in Net Position
For the Fiscal Years Ended June 30, 2023 and 2022
OPERATING REVENUES
Sewer service charge (SSC)
Sewage treatment cost sharing (Note 8)
Miscellaneous service charges
Total operating revenues
OPERATING EXPENSES
Salaries & benefits
Contracted services
Utilities & fuel
Chemicals
General supplies
Other operating expenses
Depreciation and amortization expense
Total operating expenses
OPERATING INCOME (LOSS)
NON -OPERATING REVENUES (EXPENSES)
Taxes
Permit and inspection fees
Grants
Investment income
Interest expense
Gain (loss) on sale of asset
Other non -operating income
Total non -operating revenues
INCOME (LOSS) BEFORE CAPIT4
CAPITAL CONTRIBUTIONS
Other government revenue - Concord _
Customer contributions to capital
Non -exchange capital contributions/donations
Capacity fees
Total capital contributions
CHANGE IN NET POSITION
NET POSITION, BEGINNING OF YEAR
NET POSITION, END OF YEAR
See accompanying notes to financial statements
2023
$50,109,215
17,649,002
2,233,077
69,991,294
60,809,719
10,585,951
8,174,185
2,175,040
2,675,384
2,729,905
25.003.263
2022
$100,680,646
16,086,801
2,164,237
118,931,684
55,911,207
9,623,004
6,524,066
1,820,344
2,627,899
2,257,107
23,044,770
7 101,808,396
(42,162,153) 17,123,289
22,933,224
2,042,467
4,125,473
(1,177,471)
129,918
1,073,645
29,127,256
(13,034,897)
9,956,648
67,227,158
1,456,478
7,165,352
85,805,636
72,770,739
890,244,841
21,239,420
2,308,395
996,177
772,909
(1,950,841)
(939,343)
1,057,154
23,483,871
40,607,159
7,799,702
10,267,767
1,496,013
4,584,973
24,148,455
64,755,614
825,489,227
$963,015,580 $890,244,841
15
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Central Contra Costa Sanitary District
Statements of Cash Flows
For the Fiscal Years Ended June 30, 2023 and 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers
Payments to employees and related benefits
Net cash provided by operating activities
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Receipt of taxes
Inspection/permit fees and other non -operating income
Net cash provided by noncapital financing activities
CASH FLOWS FROM CAPITAL AP
Capital contributions
Capacity fees
Acquisition and construction of
Interest paid on long-term debt
Proceeds from direct borrowin
Principal payments on long -ter
Net cash used for capital and
CASH FLOWS FROM INVESTING
Redemption of investments
Acquisition of investments
Interest received
Net cash provided by investin
NET INCREASE (DECREASE) IN
Cash, beginning of year
Cash, end of year
2023 2022
$66,517,474
$118,944,502
(27,699,052)
(25,220,586)
(56,257,900)
(53,523,454)
(17,439,478)
40,200,462
22,933,224 21,239,420
3,116,112 3,365,549
26,049,336 24,604,969
78, 640,2 84
19, 563,482
7,165,352
4,584,973
(61,720,324)
(75,132,106)
(1,132,112)
(864,539)
15,588,706
(11,923,012)
(11,623,011)
26,618,894 (63,471,201
191,500,000
30,000,000
?27,600,000)
(97,000,000)
4,564,109
973,100
(31,535,891)
(66,026,900)
3,692,860 (64,692,670)
19,410,648 84,103,318
$23,103,508 $19,410,648
16
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Page 39 of 117
Central Contra Costa Sanitary District
Statements of Cash Flows
For the Fiscal Years Ended June 30, 2023 and 2022
Reconciliation of operating (loss) to net cash provided by
operating activities:
Operating income (losses)
Adjustments to reconcile operating losses
to cash flows from operating activities:
Depreciation and amortization
Loss on disposal of asset
Changes in assets and liabilities:
Receivables, net
Parts and supplies
Prepaid expenses
Accounts payable and accrued expenses
Accrued payroll and related expenses
Deposits payable
Provision for uninsured claims
Net pension asset/liability
Net OPEB asset/liability
Lease/SBITA related
Net cash provided (used) by operating activities
SCHEDULE OF NON CASH ACTIVITY
Change in fair value of investments
Capital contributions
Total non cash activity
CASH AND CASH EQUIVALENTS, AS
STATEMENT OF NET POSITION:
Unrestricted cash and cash
Restricted cash and cash ec
Total cash and cash
notes to financial statements
2023 2022
($42,162,153) $17,123,289
25,003,263 23,044,769
129,918 (939,343)
(3,603,738)
952,161
(1,672,950)
(1,041,330)
(610,976)
1,857,836
919,553
(4,208,797)
(470,490)
1,178,783
(166,322)
157,469
215,510
49,411
8,141,251
3,412,120
`(3,334,452)
(2,252,561)
172,107
866,656
($17,439,478) $40,200,462
$4,564,109
$973,100
85,805,636
24,148,455
$90,369,745
$25,121,555
$23,058,319
$19,368,680
45,189
41,968
$23,103,508
$19,410,648
17
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Page 41 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
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 legal to organizations for which the
District is financially accountable. Component uni ay a Jude organizations that are
fiscally dependent on the District, in that the D ct approves r budget, the issuance of
their debtor the levying of their taxes. In addi ' co nent unit are other legally separate
organizations for which the District is no a y accountable but the nature and
significance of the organization's relationship e District is such that exclusion would
cause the District's financial state be ading or incomplete. For financial
reporting purposes, the component un is el is reported in the District's financial
statements because of the significance t a hip with the District. The component
unit, although a legally se p tity, eported in the financial statements using the
blended presentation m d as it w part of the District's operations because the
Governing Board of the on t same as of Governing Board of the District and
because its purpose is to 1 acilitie o be used for the direct benefit of the District. The
Central Contra Co . ry rictFacilitiesFinancing Authority (Authority) was organized
solely for the ose o vi financial assistance to the District. The Authority does
this by acq , constr ing, improving and financing various facilities, land and
equipment purc s, and leasing or selling certain facilities, land and equipment for the
use, benefit and e of the public served by the District. The Authority has no
employees and the Bo 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.
19
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Page 42 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
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 importa nd the full accrual basis of
accounting is required. With this measurement foc all assets and liabilities of the
enterprise are recorded on its statement of net posi ' evenues are recognized when
earned and all expenses, including depreciation,
Enterprise funds distinguish operating reve s an
Operating revenues and expenses generally 1
and delivering goods in connection with an ent i
The principal operating revenues o istrict
Operating expenses for the District i s
expenses, and depreciation on capital e
ogni�vhen incurred.
enses f?bm non -operating items.
in providing services and producing
se fund's principal ongoing operations.
charges to customers for services.
t f sales and services, administrative
enues and expenses not meeting this
definition are reported as no ting enues and expenses.
For internal operating pos ct's Board of Directors has established four
separate sub -funds, each inc s a separate self -balancing set of accounts and a
separate Board a u for revenues and expenses. These sub -funds are combined
into the single erpris n sented in the accompanying financial statements. The
nature and p se of thes b-funds are as follows:
Running E se,&Running Expense accounts for the general operations of the
District. Subs lly 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.
Rate Stabilization Accounts (RSA) have been stablished by the Board and consist of book
accounting in Running Expense and Serwer Construction Funds. Deposits and withdrawals
to/from RSA require Board approval.
20
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Page 43 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 1- DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
C. Investments
Investments held at June 30, 2023 and 2022, 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 th Air value hierarchy established
by generally accepted accounting principles. The fair v ierarchy categorizes the inputs
to valuation techniques used to measure fair value igfffflft levels based on the extent to
which inputs used in measuring fair value are
Level 1 inputs are quoted prices
liabilities.
Level 2 inputs are inputs -
observable for an asset or
Level 3 inputs are
If the fair value of an as!
the fair value hierarchy,
level input that islid"
E. Prepaid Exp
Certain payments N
recorded as prepaid
F. Parts and Supplies
rl
in
ctive mai Kets for identical assets or
quote ices included within level 1- that are
%hgLre'W or indirectly.
for an asset or liability.
R§ured using inputs from more than one level of
is considered to be based on the lowest priority
entire measurement.
FFs reflect costs applicable to future accounting periods and are
in the financial statements.
Parts and supplies are valued at average cost and are used primarily for internal purposes.
21
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Page 44 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 1- DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
G. 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 calculated using the straight-line method
over the asset's useful life as follows:
Se
In
Se
BL
Fu
M1
H. Property
Property 1
of Contra
are collecl
Property
participat
Teeter Ply
establishe
levies to
collection
risk of del
Years
75
75
40
50
5-15
7-15
axis levied. The County
ict; all material amounts
ivied since the County
led the Teeter Plan. The
?nue and Taxation Code
,f property tax and other
the basis of actual tax
the County assumes the
iccrued interest thereon.
Secured property tax bills are mailed once a year, during the month of October on the current
secured tax roll, to the owner of the property as of the lien date (January 1). Payments can
be made in two installments, and are due on November 1 and February 1. Delinquent
accounts are assessed a penalty of 10 percent. Accounts which remain unpaid on June 30 are
charged an additional 11/2 percent per month. Unsecured property tax is due on July 1 and
becomes delinquent on August 31. The penalty percentage rates are the same as secured
property tax.
22
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Page 45 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 1- DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
L 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.
I Use of Estimates
The preparation of financial statements in conformity wit counting principles generally
accepted in the United States of America requires m gement to make estimates and
assumptions that affect the reported amounts of a liabilities and disclosures of
contingent assets and liabilities at the date of t nanci atements and the reported
amounts of revenues and expenses during the orting perio ctual results could differ
from those estimates. 'A�
K. Lease
A lease is defined as a contract that n tr f the right to use another entity's
nonfinancial asset (the underlying asset cn the contract for a period of time in an
exchange or exchange -like tr on.
L. Prior Year Summarize mp !a1tion
The basic finan)7ait
include certain prior -year summarized comparative
information in al evel of detail required for a presentation in accordance
with generall epnting principles. Accordingly, such information should be read
in conjunction tis financial statements for the year ended June 30, 2022, from
which the summaration was derived.
M. New Governmental Accounting Standards Board (GASB) Statement Pronouncement
GASB Statement No. 96 - In May 2020, GASB Statement No. 96, Subscription -Based
Information Technology Arrangements (SBITAs) was issued. GASB Statement No. 96 (GASB
96) establishes uniform accounting and financial reporting requirements for SBITAs;
improves the comparability of government's financial statements; and enhances the
understandability, reliability, relevance, and consistency of information about SBITAs. GASB
96 applies to government agencies who are currently using information technology (IT)
software such as Office 365, Adobe, Zoom, and others as specified in their contracts. GASB 96
applies to all contracts meeting the definition of a SBITA, unless specifically excluded. As
defined in GASB Statement No. 96, paragraph 6, a SBITA is a contract that conveys control of
the right to use another party's (a SBITA vendor's) IT software, alone or in combination with
tangible capital assets (with underlying IT assets), as specified in the contract for a period of
time in an exchange or exchange -like transaction.
23
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 165 of 271
Page 46 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 2 - CASH AND INVESTMENTS
A. Summary of Cash and Investments
Cash and investments as of June 30, are classified in the accompanying financial statements as
follows:
Cash and cash equivalents
Unrestricted investments, current
Restricted cash and investments
Total District Cash and Investments
Restricted prefunding pension trust assets
Total Cash and Investments
B. Policies and Practices
The District is authorized under Califor
local agency bonds, notes, or warrant the Sty\U.S. Treasury instruments, registered
State warrants or treasury notes, s
commercial paper, certificates o deposi
loan companies, and cere
arti
policy prohibit the Distrm esti
equivalent.
are coordinated by the District's Treasurer, Contra Costa
2023 2022
$23,058,319 $19,368,680
158,640,000 123,540,000
1,527 14
1 99,846 142,908,694
43,662 41,954
$181�508 $142,950,648
Investments
County, at the
is Govei%ient Code to make direct investments in
rit h .S. Governments, or its agencies,
1 w commercial banks and/or savings with
ation. State code and the District's investment
n 'n investments with a rating of less than A or
24
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 166 of 271
Page 47 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 2 - CASH AND INVESTMENTS (Continued)
C. General Authorizations
Limitations as they relate to interest rate risk, credit risk, and concentration of credit risk are
indicated in the schedules below:
Maximum
Maximum Maximum Percentage Minimum
Remaining Percentage of Portfolio Credit
Authorized Investment Type Maturity of Portfolio (Per Issuer) Quality
U.S. Treasury Obligations
U.S. Government Agency Issues
Money Market Funds
Negotiable Certificates of Deposit
Banker's Acceptances
Commercial Paper (1)
Medium Term Notes
Collateralized Certficates of Deposit (2)
Supranationals
County Pooled Investment Funds
Local Agency Investment Fund (LAIF)
Government Investment Pools (CAMP, I
Municipal Investments
(1) Prime quality; limited to
5 years
5 years
N/A
5 vears
None
done
20%
30%
over $500,000,000
100%
100%
10%
5%
5%
10%
10%
20%
5%
100%
$75 million
None
5%
N/A
N/A
A
AA
N/A
A-1
AA
Aaa
AA
N/A
N/A
N/A
AA
25
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 167 of 271
Page 48 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 2 - CASH AND INVESTMENTS (Continued)
A 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:
2023
Investment Type evel 2 Total
Investments Reported at Fair Value:
U.S. Treasury Obligations $ 00,000 $107,000,000
U.S. Federal Agency Securities - FHLB 13, 000 13,500,000
Total $120,50 00 120,500,000
External Investment Pool (Exempt):
California Local Agency Investme4%,6, 45,600,000
Investments Exempt fro Val rarcq:
U.S. Treasury,ngationsnlaling $107.0 million classified in Level 2 of the fair value
hierarchy, is valu sing rix pricing techniques maintained by various pricing vendors.
Matrix pricing is use ue securities based on the securities' relationship to benchmark
quoted pricesU.S. Federal Agency Securities totaling $13.5 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.
Restricted Cash and Inve1,527
Cash and Investme eld wi ensio ust 43,662
Cash in bank and On 15,598,319
Totents $181,743,508
26
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet -Page 168 of 271
Page 49 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
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:
Investment Type
Investments Reported at Fair Value:
U.S. Treasury Obligations
U.S. Federal Agency Securities - FHLB
Total
External Investment Pool (Exempt):
Inve
Res
Cas
Cas
U.S. Tre;
totaling
matrix F
value se,
E. Interest
Interest
value of
sensitivi
manage
term inv
2022
Level Total
$48,500,000
$48,500,000
18,500,000
18,500,000
$67,000,000
67,000,000
64,000,000
14
41,954
11,908,680
$142,950,648
feral Agency Securities
�rarchy, is valued using
latrix pricing is used to
luoted prices.
adversely affect the fair
estment, the greater the
s the District's policy to
'shorter term and longer
)ortion of the portfolio is
maturing or coming clW 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.
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:
27
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 169 of 271
Page 50 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 2 - CASH AND INVESTMENTS (Continued)
Investment Type
U.S. Treasury Obligations
U.S. Federal Agency Securities - FHLB
California Local Agency Investment Fund
Total
Restricted Cash and Investments
Restricted Cash and Investments held with Pension Trust
Cash in bank
Total Cash and Investments
Investment Type
U.S. Treasury Obligations
U.S. Federal Agency Securities - FHLB
California Local Agency Investment Fund
Total
Restricted Cash and Investments
Restricted Cash and Investments held with Pension
Cash in bank
Total Cash and Investments
Investment in LAIF - ThIq
California Government Co
is not registered
investment in ool is
upon the Dist pro-rata
(in relation to t ortiz
based on the accou r
basis. At June 30, 202 c
and 311 days, respectively.
2023
12 Months
13 to 24
or Less
Months
Total
$104,500,000
$2,500,000
$107,000,000
13,500,000
13,500,000
45,600,000
45,600,000
163,600,000
2,500,000
166,100,000
1,527
43,662
15,598,319
$181,743,508
2022
12 Months 1
25 to 36
or Less Mon
Months
Total
$42&00$4,000,0
$2,500,000
$48,500,000
1
18,500,000
64,000,000
1244,000,000
2,500,000
131,000,000
14
41,954
11,908,680
$142,950,648
�y participant in LAIF which is regulated by the
the ov siaht of the Treasurer of the State of California. LAIF
calliLs and Exchange Commission. The fair value of the District's
rte the accompanying financial statements at amounts based
re o the fair value provided by LAIF for the entire LAIF portfolio
ost of that portfolio). The balance available for withdrawal is
ds maintained by LAIF, which are recorded on an amortized cost
2022, these investments had weighted average maturities of 260
Investments in County Treasury - The District is considered to be a voluntary participant in an
external investment pool. The fair value of the District's investment in the pool is reported in
the financial statements in cash and cash equivalents at amounts based upon the District's pro-
rata share of the fair value provided by the County Treasurer for the entire portfolio (in relation
to amortized cost of that portfolio). The balance available for withdrawal is based on the
accounting records maintained by the County Treasurer, which is recorded on the amortized
cost basis.
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 170 of 271
Page 51 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 2 - CASH AND INVESTMENTS (Continued)
F. Credit Risk
G.
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.
Investment Type
Rated P-1:
U.S. Federal Agency Securities - FHLB
AAA Rated:
U.S. Treasury Obligations
Total Rated Investments
Not Rated:
California Local Agency Investment F i
Restricted Cash and Investments
Cash and Investments held with Pensio
Cash in Bank
Total Cash and I
Concentration of
The investment
invested in a�
Investments i
investment pool
Totals
2023 2022
3,50 0 $18,500,000
00, 48,500,000
0,500,000 67,000,000
5,600,000 64,000,000
IN 1,527 14
43,662 41,954
5,598,319 11,908,680
$181,743,508 $142,950,648
istrict contain no limitations on the amount that can be
eyW that stipulated by the California Government Code.
other than U.S. Treasury securities, mutual funds, and external
nt 5 percent or more of total investments are as follows:
Reported Percentage of
InvestmM Type Amount Holdings
U.S. Federal Agency Securities - FHLB $13,500,000 8.1%
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.
29
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 171 of 271
Page 52 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 3 - ACCOUNTS RECEIVABLE
Accounts receivable for the years ended June 30, are comprised of the following:
City of Concord (see Note 8)
Household Hazardous Waste Partners
All Other
Total Accounts Receivable
Employee Computer Loans Receivable
2023 2022
$27,657,109 $23,934,463
948,222 877,608
920,367 1,335,627
$29,525,698 $26,147,698
The District provides loans to its employees for the purc
loans are payable through payroll deductions of $1000p
interest rate associated with the loan is based on th o
Fund (LAIF) rate in effect at the time of loan exec . TY
may borrow is $2,000. The loans receivable b ce are,
Employee Computer
Additions
Bank Escrow D
An escrow agSis
right-of-way
bond. The cu
so long as the
funds will ever be rel
financial statements.
of personal computers. These
th until the loan is paid off. The
Ct Local Agency Investment
m amount each employee
of June 30:
2022
$10,684
12,990
(13,462)
$10,212
mel etween the District and the National Park Service for the
o Muir National Historic Site, in lieu of issuing a performance
fy permit is 10 years, but is renewable and must remain in effect
nning through the area; therefore, it is unlikely that the escrow
to the District. These funds are listed as accounts receivable in the
30
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 172 of 271
Page 53 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
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, 2023 and 2022
were $720,859 and $738,052, 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, 2023 and 2022
were $265,204 and $429,201, respectively.
The District also established Septic to Sewer Financing (S2S ide low-cost financing to help
homeowners connect to the public sewer system and o erly don their septic tank. The
program is open to residential property owners with ate septic ms located near existing
sewer mains within Central San's service area. The S ceiv e balance June 30, 2023 and 2022,
were $655,972 and $249,044, respectively.
The total receivable balance at June 30, 2023 022, foAVAD and S2S were $1,642,035 and
$1,416,297, respectively and are shown as a n1&-ZTl11QhjLassNWn the Statement of Net Position.
31
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 173 of 271
Page 54 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 5 - CAPITAL ASSETS
Property, plant and equipment, and construction in progress are summarized below for the year
ended June 30, 2023:
Balance at
Transfers &
Balance at
July 1, 2022
Additions Retirements Adjustments
June 30, 2023
Capital assets not being depreciated:
Land
$17,320,570
-
$17,320,570
Easements (intangible)
5,261,937
$2,500
5,264,437
Construction in Progress
95,818,652
$59,097,479 (28,153,606)
126,762,525
Total nondepreciated assets
118,401,159
59,097,479 (28,151,106)
149,347,532
Capital assets being depreciated
Sewage collection system
443,262,940
-
($26,00 14,491,074
457,728,014
Contributed sewer lines
167,746,429
1,311,857
(89
-
168,968,603
Outfall sewers
16,872,714
-
1,136,534
18,009,248
Sewage treatment plant
392,167,194
-
9,190,613
401,357,807
Recycled water infrastructure
29,183,873
205,360
29,389,233
Pumpingstation
87,809,502
e<(5,105)
7,462
89,286,964
Buildings
44,819,817
7,694
44,827,511
Furniture and equipment
16,604,181
1,490,816
18,089,892
Motor vehicles
9,536,945
150,450
9,687,395
Enterprise software
3,682,802
1,103
3,683,905
Intangible right -to -use lease asset
1,165,199
-
2,476,187
Total depreciated assets
1,212, 96
&JIF845
(120,788)
28,151,106
1,243,504,759
Less accumulated depreciation:
Sewage collection system
94,898
6, 504
(5,898)
-
100,972,046
Contributed sewer lines
0,
15,679
(60,966)
72,267,828
Outfall sewers
8,945
231,478
4,640,423
Sewage treatment plant
54, 18
8,795,392
262,919,410
Recycled water infrastr a
06
830,161
15,895,987
Pumping station
404,352
3,003,150
43,407,502
Buildings
282,241
1,294,559
20,576,800
Furniture and equipment
294,323
821,336
(5,105)
14,110,554
Motor vehicles
5,531,119
525,621
61056,740
Enterprise software
1,193,838
368,336
1,562,174
Intangible right -to -use lease asset
191,629
838,047
1,029,676
Total accumulated depreciation
518,507,846
25,003,263
71,969
-
543,439,140
Total capital assets being depreciated, net
694,343,750
(22,380,418)
48,819
28,151,106
700,065,619
Capital assets, net
$812,744,909
$36,717,061
($48,819)
-
$849,413,151
32
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 174 of 271
Page 55 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 5 - CAPITAL ASSETS (Continued)
Property, plant and equipment, and construction in progress are summarized below for the year
ended June 30, 2022:
Balance at
July 1, 2021
Transfers &
Balance at
(restated) Additions
Retirements Adjustments
June 30, 2022
Capital assets not being depreciated:
Land
$17,320,570
-
$17,320,570
Easements (intangible)
4,969,507
$292,430
5,261,937
Construction in Progress
106,345,492 $73,636,093
(84,162,933)
95,818,652
Total nondepreciated assets
128,635,569 73,636,093
(83,870,503)
118,401,159
Capital assets being depreciated
Sewage collection system
Contributed sewer lines
Outfall sewers
Sewage treatment plant
Recycled water infrastructure
Pumping station
Buildings
Furniture and equipment
Motor vehicles
Enterprise software
Intangible right -to -use lease asset
Total depreciated assets
27,864,610
229,916
5,501,140
80,940
355,614
619,377
317,144
83,870,503
443,262,940
167,746,429
16,872,714
392,167,194
29,183,873
87,809,502
44,819,817
16,604,181
9,536,945
3,682,802
1,165,199
1,212,851,596
Less accumulated depreciation:
Sewage collection system
208,4
5,80 6
880,437
94,898,440
Contributed sewer lines
88
1000
31,514
70,113,115
Outfall sewers
18
187,227
-
4,408,945
Sewage treatment plant
9
8,369,194
(931,195)
254,124,018
Recycled water infrastruc8,787,754
15,065,826
Pumping station
3,13
2,421,213
(3,050,000)
40,404,352
Buildings
)6,6
9,591
1,292,650
19,282,241
Furniture and equipment7,312
872,673
(95,662)
13,294,323
Motor vehicles
7,799
564,490
(541,170)
5,531,119
Enterprise software
1,415
352,423
1,193,838
Intangible right -to -use lease asset
-
191,629
191,629
Total accumulated depreciation
499,169,153
23,044,769
(3,706,076)
518,507,846
Total capital assets being depreciated, net
633,097,203
(21,548,756)
(1,075,200) 83,870,503
694,343,750
Capital assets, net
$761,732,772
$52,087,337
($1,075,200) -
$812,744,909
33
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 175 of 271
Page 56 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 6 - LONG-TERM DEBT
A. Summary of Activity
The changes in the District's long-term obligations during the year ended June 30, 2023
consisted of the following:
Original Amount
Issue Balance Balance due within
Amount July 1, 2022 Additions Retirements June 30, 2023 one year
Bonds
2018 Series A Wastewater Revenue
Refunding Bonds
1.39%-2.34% due 9/1/2029
$151,350,000 $12,640,000
$1,335,000
$11,305,000
$1,395,000
2018 Series B Wastewater Revenue
Refunding Bonds
2.36%-3.12% due 9/1/2023
4,315,000 1,120,000
550,000
570,000
570,000
Certificates
of Participation
0.05%-0.62% due 9/1/2028
50,570,000 41,925,000
8,865,000
33,060,000
5,125,000
Direct Borrowing
Loan
Loan
173,105,000 $15,588,706
15,588,706
Total long-term debt
55,685, 15,588,706 000
60,523,706
7,090,000
Add: Unamortized Premium
Revenue Bonds/Certificates
8,4
1,173,012
7,252,308
-
Total long-term debt
64,110,32 5,588,706 $11,923,012
67,776,014
$7,090,000
Less Current Portion
(7,090,000)
Long Term Portion
60,320
$60,686,014
The changes in the Dis
s 10 m 0 gations during the year
ended June
30, 2022
consisted of the followin .
Original
Amount
Issue Balance
Balance
due within
mount July 1, 2021
Retirements
June 30, 2022
one year
2018 Series tewater Reven
Refunding B
1.39%-2.34%d 2029
$151,350,000 $13,910,000
$1,270,000
$12,640,000
$1,335,000
2018 Series B Waste
e
Refunding Bonds
2.36%-3.12% due 9/1/2 23
4,315,000 1,655,000
535,000
1,120,000
550,000
Certificates
of Participation
0.05%-0.62% due 9/1/2028
50,570,000 50,570,000
8,645,000
41,925,000
8,865,000
Total long-term debt
66,135,000
10,450,000
55,685,000
10,750,000
Add: Unamortized Premium
Revenue Bonds/Certificates
9,598,331
1,173,011
8,425,320
-
Total long-term debt
75,733,331
$11,623,011
64,110,320
$10,750,000
Less Current Portion
(10,450,000)
(10,750,000)
Long Term Portion
$65,283,331
$53,360,320
34
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 176 of 271
Page 57 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 6 - LONG-TERM DEBT (Continued)
.1
C.
Debt Service Requirements
The debt service requirements are as follows:
Fiscal Year
2018 Wastewater Revenue
Ending
Refunding Bonds Series A & B
June 30
Principal
Interest
2024
$1,965,000
$ 339, 667
2025
1,465,000
458,875
2026
1,535,000
383,875
2027
1,610,000
305,250
2028
1,685,000
222,875
2029-2033
3,615,000
182,875
Total
$11,875,000
$2,093,017
2021 Wastewater Revenue
Certificates of Participation
Principal
Interest
$5,125,000
$1,524,875
5,630,000
1,256,000
6,165,000
961,125
6,740,000
638,500
6,905,000
297,375
2,495,000
,375
$33,060,000
jff40,250
2018 Series A and B Wastewater Revenue Refun
On September 13, 2018 the District issue
(Bonds). The 2018 Wastewater Revenue F
(federally taxable) were issued for $15,13E
were issued to defease and refund a3Di
the $19,635,000 original principal
Participation, Series A and all of th$34,490,000 original princ' Participation, Series B, an y codebt service savings of 55,3
an economic gain and amo 0
Direct Borrowings
Principal Interest
$5,059,980
$1,512,405
5,097,201
1,549,626
5,431,525
1,417,647
$15,588,706
$4,479,678
Xewater fVvenue RefundingBonds
nds, Series A (tax-exempt) and B
,315,000, respectively. The Bonds
tanding obligations with respect to
astewater Revenue Certificates of
o nding obligations with respect to the
2009 Wastewater Revenue Certificates of
the Bonds. The refunding resulted in an overall
resent value of the debt service savings is called
97.
The two bondsrl$19, 0(lid are secured by a pledge of tax and net revenues of the
wastewater s . Theo landing bonds from direct borrowings related to business -type
activities of $19, 000 co in a provision that in an event of default, the U.S. Bank National
Association (Trust a e right to accelerate the total unpaid principal amounts of the
bonds. The official s ent 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, 2023 amounted
to $11,875,000.
35
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 177 of 271
Page 58 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 6 - LONG-TERM DEBT (Continued)
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 was 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, 2023 amounted to
$33,060,000.
E. Clean Water State Revolving Fund Loan
The District entered into a contract in December 2 T to bor funds from the State Water
Resources Control Board. The funds are in d for the S Handling Improvement
Project to rehabilitate and replace the slu dew ring cent fuges, cake pumps, and
furnace air pollution control equipment. Th m loan amount is $173,105,000, of
which the District has drawn $15,588,706. The I ears interest at 0.9 percent per year for
a term of 30 years. Repayments ar ule to mence in July 2027 following the
completion of the project. As of June 3 0 is ct owed $15,588,706 on the loan.
F. Compensated Absences w
The liability for vestedZtion4
ry time, and sick pay is recorded as an expense
when earned. Employeeter
Ma 1985 have a vested interest in up to 40 percent
ngth of employment with the District. The time may be
of their sick tim)ensate
applied towar ence
e and/or cashed out upon retirement.
The changes in c
bsences were as follows for fiscal years ended June 30:
2023 2022
Beginning Balance
$6,272,875 $5,094,092
Adjustments
(184,948) 1,364,591
Payments
(285,542) (185,808)
Ending Balance
$5,802,385 $6,272,875
Current Portion
$580,239 $627,288
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.
36
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 178 of 271
Page 59 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 7 - RISK MANAGEMENT
The District is exposed to various risks of loss including torts, theft of, damage to, and
destruction of assets, errors and omissions, injuries to employees, and natural disasters. To
manage these risks, the District joined with other entities to form the California Sanitation
Risk Management Authority (CSRMA), a public entity risk pool currently operating as a
common risk management and insurance program for the member entities. The purpose of
CSRMA is to spread the adverse effects of losses among the member entities and to purchase
excess insurance as a group, thereby reducing its cost. Through CSRMA, the District
purchases property insurance and workers' compensation insurance.
A. Insurance Coverage
The District's insurance coverage is as follows:
Type of Coverage
All -Risk Property:
Special Form Property
Crime
Liability:
Fiduciary Liabiltiy Insurance
Pollution - General Liabilty
Commercial Environment Excess
Excess Liabiltiy
Excess Liabiltiy
Excess Following Form Liability 1
Excess Following Form Liability I
Employment Practice Liabilty A
Worker's Coml
Excess Workers'
B. Provision
Insurer
Self Insured Deductible
Limits Per Occurrence
$659,500,809
L 1,000,000
1,000,000
1,000,000
1,000,000
2,000,000
3,000,000
5,000,000
5,000,000
500,000
National Casualty Company Statutory
$250,000
2,500
25,000
5,000 - 50,000
5,000 - 50,000
500,000
35,000
The Governmenta ou g Standard Board (GASB) requires state and local governments
to record their liabili ninsured claims in their financial statements. The District's policy
is to maintain a reser e for claims of $1,500,000 which is equivalent to three claims at
$500,000 per occurrence. The District's independent actuary has calculated its potential
liability as of June 30, 2023 to be $1,719,986.
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, 2022. For
intervening years, the liability for uninsured claims is reviewed for adequacy based on claims
activity during the intervening period.
37
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 179 of 271
Page 60 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 7 - RISK MANAGEMENT (Continued)
For fiscal years ended June 30, 2023, 2022, and 2021, settlements have not exceeded
insurance coverage. Changes in the District's estimated liability for retained losses are
summarized as follows as of June 30:
Beginning Balance
Provisions for claims incurred in the
current and changes in the liability for
retained -losses incurred in prior years
Claims paid and/or adjustments
Ending Balance
The District's Self Insurance program also
losses.
2023 2022 2021
$1,504,476 $1,455,065 $1,221,293
516,226 202,162 596,645
0,716 (152,751) (362,873)
$1,719 $1,504,476 $1,455,065
reserXomillion for catastrophic
NOTE 8 -AGREEMENT WITH THE CITY OF CONCORDN& I
In 1974, the District and the City of Con d Tntered into a cost -sharing agreement
under which the District QbDecaespo,
for p oviding sewage treatment facilities and
services to the City. Underne the City pays a service charge for its share of
operating, maintenancetrativ osts and makes a contribution for its share of
facilities capital costs ex rges and contributions to capital costs from the
City totaled $17,700 648 respectively, for the year ended June 30, 2023, for a
total of $27,657and contributions to capital costs from the City totaled
$16,086,801 $7,799, res tively, for the year ended June 30, 2022, for a total of
$23,934,463.
0.9
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 180 of 271
Page 61 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 9 - PENSION PLANS
A. Contra Costa County Employees'RetirementAssociation 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, 2022 providing the plan funded
status as of that date and contribution rates for the fiscal year ended June 30, 2023. 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 Co nco Ave., Suite 300, Concord, CA
94523 or on their website at www.cccera.org.
Benefits Provided - The Plan provides for 1
benefits. Annual cost of living (COL) adjustme
the Retirement Board as provided by State I
length of service, date of membership and fins
Subject to vested status, employees
leave them as a deferred retiremi
retirement system.
The Plans' provisions an
Membership date
Benefit vesting sch
Benefit payments
Leave cash out pen
Benefit % per year
Final pensionable s
Annual benefit cap
Minimum retirement age (with benefit reductions)
Normal retirement age (unreducted benefits)
Required employee contribution rates
Required employer contribution rates
and death and survivor
Fances can be granted by
lenefits are based on age,
ons plus interests credited, or
or transfer to a reciprocal
une 30, 2023, are summarized as follows:
Prior to January 1, 2013
10 years service
monthly for life
Yes
2%
Hired before 1/1/1996 - None
Hired 1/1/1996 - 12/31/2012 -
$330,000
50
55
8.47%-15.98%
17.04%
On or after January 1, 2013
5 years service
monthly for life
No
2%
Annual average of highest 36
consecutive months
$175,250
52
62
11.52%
11.46%
39
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 181 of 271
Page 62 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 9 - PENSION PLANS (Continued)
Contributions - The Plan requires employees to pay a portion of the basic retirement benefit
and a portion of future COL costs. For the year ended June 30, 2023, the District's
contributions to the Plan were $6,812,146.
Net Pension Liability, Pension Expenses and Deferred Outflows/Inflows of Resources
Related to Pensions - The District reported net pension liability for its proportionate share
of the net liability of the Plan in the amount of $37,772,326 for the year ended June 30,
2023. The District reported net pension asset for its proportionate share of the net pension
asset of the Plan in the amount of $53,543,789 for the year ended June 30, 2022.
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 easured as of December 31,
2022, and the total pension liability for the Plan used to c late the net pension liability was
determined by an actuarial valuation as of December 1 rolled forward to December
31, 2022 using standard update procedures. Th strict' portion of the net pension
liability was based on a projection of the Distr long-term e of contributions to the
pension plan relative to the projected contrib ns of participa g employers, actuarially
determined.
The District's proportionate share of tl
2021, 2022 and 2023 were as follows:
Reporting Date for
Employer under GASB
68 as of June 30
2021
202
202
the NgdWsion JWf Net
(53,543,789)
37,772,326
bility for the Plan as of December 31,
Proportionate Share of
Plan Fiduciary Net
the Net Pension Liability
Pension as a
Covered
as a Percentage of its
Percentage of the Total
Payroll
Covered Payroll
Pension Liability
$37,131,965
131.66%
89.10%
37,667,972
-142.15%
111.27%
40,424,238
93.44%
92.35%
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 182 of 271
Page 63 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 9 - PENSION PLANS (Continued)
For the year ended June 30, 2023, the District recognized a pension expense of $14,964,370.
At June 30, 2023, the District reported deferred outflows of resources and deferred inflows
of resources related to pensions from the following sources:
Pension contributions subsequent to measurement date
Differences between expected and actual experience
Changes of assumptions or other inputs
Change in proportion and differences between employer
contributions and proportionare share of contributions
Net difference betweeen projected and actual earnings
on pension plan investments
Total
The $2,902,793 reported as deferred ou
subsequent to the measurement date will b
liability in the year ended June 30, 2024.
Other amounts reported as deferred o
related to pensions will be recognized
Deferred Outflows Deferred Inflows
of Resources of Resources
$2,902,793
2,127,183 ($73,988)
2,764,855 (129,972)
48,567,158 (52,727,083)
392,525
1,754,514 ($52,931,043)
of resourc0Wlated to contributions
U&d as a reduction of the net pension
s and deferred inflows of resources
as follows:
0 $10,036,
2025 10,164,
2027 2,623,
Total $22,920
I nded` Annual
�26 96,
41
ion
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 183 of 271
Page 64 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 9 - PENSION PLANS (Continued)
Actuarial Assumptions - The total pension liability in the December 31, 2022 actuarial
valuations were determined using the following actuarial assumptions:
Valuation Date
Measurement Date
Actuarial Cost Method
Amortization Method
Actuarial Assumptions:
Discount Rate
Miscellaneous
December 31, 2022
December 31, 2022
Entry Age Actuarial Cost Method
Level percent of payroll
6.75%
2.50%
2.50% (1)
3.50%-14.00%
2.75%
6.75%
�e Amount -Weighted
ality Table, projected
imensional mortality
�ment scale MP-2021
Discount Rate - The di nt ra used t easure the Total Pension Liability (TPL) was
6.75% as of December 3 2 er 31, 2021. The projection of cash flows used to
determine the disco rat med employer and employee contributions will be made at
rates equal to th mined contribution rates. For this purpose, only employer
and employe tributio atN intended to fund benefits for current plan members and
their beneficia are inclu d. Projected employer contributions that are intended to fund
the service cost futu plan members and their beneficiaries, as well as projected
contributions from an members, are not included. Based on those assumptions, the
Plan Fiduciary Net Pos on 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 December 31, 2022 and December 31, 2021.
42
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 184 of 271
Page 65 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 9 - PENSION PLANS (Continued)
The long-term expected rate of return on pension plan investments was determined in 2023
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. These returns 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, adding expected inflation and
subtracting expected investment expenses and a risk margin. The target allocation and
projected arithmetic real rates of return for each major asset class, after deducting inflation,
but before investment expenses, used in the derivation of the long-term expected investment
rate of return assumption are summarized in the following table:
Long -Term
Target Ar' etic Real
Asset Class Allocation AMEeturn
Large Cap U.S. Equity
Small Cap U.S. Equity
Developed International Equi
Emerging Markets Equity
Core Fixed
10%
/o
00
6.17%
8.17%
0.39%
-0.14%
-0.73%
10.83%
5.93%
6.30%
7.20%
8.SO%
3.80%
2.40%
A change in the disc
Nate would affect the measurement of the Total Pension Liability
(TPL). A lower discoun 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, 2023:
Miscellaneous
1% Decrease 5.75%
Net Pension Liability (Asset) $103,941,595
Current Discount Rate 6.75%
Net Pension Liability (Asset) $37,772,326
1% Increase 7.75%
Net Pension Liability (Asset) ($16,442,222)
43
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 185 of 271
Page 66 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 9 - PENSION PLANS (Continued)
B. 457 (h) 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 noeuded in the District's financial
statements.
401 (a) Money Purchase Plan
The District also contributes to a money pui
Revenue Code section 401(a). The plan was
and any amendments to the plan must be au
are made in accordance with a memo
payments to Social Security, the Dist ri co
that which would have been contribute
as the District is not reauir�narti
The 401(a) Aft
(formerly ICMA-
District's financial
:reated in7accordance with Internal
by the District's Board of Directors
he Board. Contributions to the plan
ending stating that in lieu of making
he 401(a) Plan an amount equal to
y on behalf of its employees as long
Security. The District contributed
.-s ended June 30, 2023 and 2022,
e District as described previously,
ees elected to make mandatory
in assets are held in trust with Mission Square Retirement
usive benefit of the participants and are not included in the
A. General Information about the District's 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 Annual Comprehensive 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.
44
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 186 of 271
Page 67 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 10 - OTHER POST EMPLOYMENT BENEFITS (OPEB) PLAN
(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, 2023:
Active employees
Inactive employees or beneficiaries currently
receiving benefit payments
Inactive employees entitled to but not yet
receiving benefit payments
Total
B. Net OPEB Liability
273
275
548
Actuarial Methods and Assumptions - The rict' t OPEB liability was measured as of
June 30, 2023 and the total OPEB li*Q�tNotaEB
bility u alculate the net OPEB liability was
determined by an actuarial valuation y 1,at was rolled forward using standard
update procedures to determine the $ liability as of June 30, 2023, based
on the following actuarial methods and u
IL Miscellaneous
Valuation Date
July 22
Measurement Date
2023
Actuarial Cost Method
n Age Normal, Level Percent of Pay
Actuarial Assn
Contributi d Fun lic
District contributes full ADC
Discou e and Long-
5.25% at June 30, 2023
Expecte of Return on sets
5.50% at June 30, 2022
General Infla
2.50% Annually
Mortality, Disab T ation,
CCCERA 2018-20 Experience Study
Retirement
Mortality Improvement
Mortality projected fully generational with Scale MP-2021
Medical Trend
Non -Medicare - 8.50% for 2024, decreasing to an ultimate rate
Medicare (Non -Kaiser) - 7.50% for 2024, decreasing to an
ultimate rate of 3.45% in 2076
Medicate (Kaiser) - 6.25% for 2024, decreasing to an ultimate
rate of 3.45% in 2076
Dental and Vision Trend
3.50% annually
Healthcare Participation for Future
Currently Covered: 100%
Retirees
Currently Waived Coverage: 95%
Self -Pay Board Members: 50%
Changes of assumptions
General inflation changed to 2.50%
Discount rate was updated based on more recent capital
market assumptiopns and new inflation
CCCERA demographic assumptions were updated based on a
new experience study
Healthcare trend rates were updated
Medicare eligible implied subsidy assumptions were updated
Mortaility improvement scale was updated to Scale MP-2021
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 187 of 271
Page 68 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 10 - OTHER POST EMPLOYMENT BENEFITS (OPEB) PLAN
(Continued)
The underlying mortality assumptions were based on the mortality improvement projected
generationally with Scale MP-21 and all other actuarial assumptions used in the July 1, 2022
valuation were based on the results of a July 1, 2022 actuarial experience study for the period
of July 1, 2022 to June 30, 2023.
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 o thmetic real rates of return for
each major asset class are summarized in the following t
Tget Expected Real Rate
Asset Class Component ocation of Return
Global Equity 5 0 4.56%
Fixed Income .0% 0.78%
Cash 00 -0.50%
Total 1
Assumed Long-Termftet
nfl 2.50%
Expected Long -Ter ofR rn, Rounded 5.25%
Discount Rate - The
projection of c
contributions eb
Based on tho su
available to makeWi
beneficiaries. Therelq
applied to all periods
WWte used to measure the total OPEB liability was 5.25%. The
us to determine the discount rate assumed that District
r3V equal to the actuarially determined contribution rates.
the OPEB plan's fiduciary net position was projected to be
fon
OPEB payments for current active and inactive employees and
g-term expected rate of return on OPEB plan investments was
jected benefit payments to determine the total OPEB liability.
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 188 of 271
Page 69 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 10 - OTHER POST EMPLOYMENT BENEFITS (OPEB) PLAN
(Continued)
C.
W
Changes in Net OPEB Liability
The changes in the net OPEB liability follows:
Balance at July 1, 2022
Changes Recognized for the Measurement Period:
Service Cost
Interest on the total OPEB liability
Changes in benefit terms
Differences between expected and actual experience
Changes of assumptions
Contributions from the employer
Contributions from the employee
Net investment income '
Benefit payments
Administrative expenses
Net Changes
Balance at June 30, 2023
Sensitivity of the Net OPEB
Trend Rates
The following presents
the District's net ruWIIIIII
percentage -poi owe
discount rate.
Increase (Decrease)
Total OPEB
Plan Fiduciary
NetOPEB
Liability
Net Position
Liability/(Asset)
(a)
(b)
(a) - (b)
$87,991,154
$75,139,609
$12,851,545
2,215,263
00,936
$8 . 218
2,215,263
► 4,849,272
(5,519,185)
(4,270,646)
S4,862,308
(4,862,308)
632,562
(5,632,562)
(4,075,640)
-
(216,708)
216,708
6,202,522
(13,003,458)
$81,342,131
($151,913)
to t W aes in the Discount Rate and Healthcare Cost
of the District at June 30, 2023, as well as what
d be if it were calculated using a discount rate that is 1-
1-percentage-point higher (6.25%) than the current
Net OPEB Liability (Asset
Discoun'tWe -1% Discount Rate
(4.25%) (5.25%)
$9,930,924 ($151,913)
Discount Rate +1%
(6.25%)
($8,517,509)
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
($8,445,000) ($151,913) $11,298,025
47
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 189 of 271
Page 70 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 10 - OTHER POST EMPLOYMENT BENEFITS (OPEB) PLAN
(Continued)
E. OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 2023, the District recognized an OPEB expense of $1,527,856. At
June 30, 2023, the District reported deferred outflows and inflows of resources related to OPEB
from the following sources:
Deferred Outflows Deferred Inflows
of Resources
Differences between expected and actual experience $1,362,299
Changes of assumptions 197,865
Net difference betweeen projected and actual
earnings ,540,284
Total 00,448
Amounts reported as deferred outflows and
recognized as part of OPEB expense as follow,
(2,146,325)
(554,141)
($3,454,643)
of Resources
($4,893,694)
(3,661,397)
($8,555,091)
related to OPEB will be
OPEB Liabilities, B E nses and Deferred Outflows/inflows of Resources Related to
OPEB - For purpose asuring the net OPEB liability, deferred outflows of resources and
deferred inflows of res urces 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.
Flu*
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 190 of 271
Page 71 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
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, governmoal regulations, laws, or other
restrictions which the District cannot unilaterally alter.
Unrestricted describes the portion of Net Position Tch is nX
icted as to use.
NOTE 12 - LEASES AND SUBSCRIPTION -BASED INAFMATWN TECH LOGY AGREEMENTS
A. Lease Receivable
The District has entered into 10 multi-y lea e ents as the lessor for various parcels
of land. The terms of these leas re be one d ten years and the District will receive
monthly payments from ea The strict recognized $704,615 in lease revenue and
$234,534 in interest rev duri the c nt fiscal year related to these leases. As of June
30, 2023 and 2022, t ist e for lease payments were $4,224,394 and
$4,635,788, respecti . A e District has a deferred inflow of resources associated with
this lease that w m as revenue over the lease term. As of June 30, 2023 and
2022, the bal e of the er inflow of resources were $3,970,164 and $4,514,638,
respectively.
Leases ReceivalWe
Land
Less current portion
Non -current portion
Leases Receivable
Land
Less current portion
Non -current portion
Balance
July 1, 2022 Additions
$4,635,788 -
(411,394)
$4,224,394
Balance
July 1, 2021
(as restated) Additions
$5,092,905 -
(457,117)
$4,635,788
Balance
Retirements June 30, 2023
$411,394 $4,224,394
(605,747)
$3,618,647
Balance
Retirements June 30, 2022
$457,117 $4,635,788
(502,430)
$4,133,358
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 191 of 271
Page 72 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 12 - LEASES (Continued)
B. Lease Payable
A summary of lease transactions for the fiscal years ended June 30, 2023 and 2022, are as
follows:
Balance
Leases Payable July 1, 2022
Land $762,557
Equipment 225,249
Total $987,806
Less c
Non-(
LE
Land
Equip
Less c
Non-c
The Dist
and offii
$808,08
interest
value of
accumul
Balance
Additions Retirements June 30, 2023
- $66,909 $695,648
112,812 112,437
- $179,721 $808,085
(182,246)
$625,839
Balance
ants June 30, 2022
'84 $762,557
009 225,249
�93 $987,806
(179,721)
$808,085
essee for the use of land
the lease liability were
:e monthly principal and
terest rate of 0.83%. The
was $1,165,199 and had
The future principal and interest lease payments as of June 30, 2023, were as follows:
For the Year
Ended June 30
Principal
Interest
Total
2024
$182,246
$6,719
$188,965
2025
72,805
5,869
78,674
2026
75,900
5,134
81,034
2027
79,097
4,368
83,465
2028
82,399
3,570
85,969
2029-2032
315,638
5,724
321,362
$808,085
$31,384
$839,469
6Y11
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 192 of 271
Page 73 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2023 and 2022
NOTE 12 - LEASES (Continued)
C. Subscription -Based Information Technology Arrangements (SBITAs)
A summary of SBITA transactions for the fiscal year ended June 30, 2023, are as follows:
Balance
SBITA Payable July 1, 2022
Subscriptions -
Additions Retirements
$1,310,988 $826,079
Balance
une 30, 2023
$484,909
The District has entered into four multi -year SBITAs for the use of information technology
software. An initial lease liability was recorded in the amount of $1,310,988 during the
current fiscal year. As of June 30, 2023 the value of the SBIT current liability was $484,909.
The value of the right -to -use asset as of the end of the curr fiscal year was $1,310,988 and
had accumulated amortization of $646,419.
Commitments and contingencies,
pending claims and litigation. In tl
legal counsel, there is no pending li
on the financial position of the Disti
mum -year con
approximately
mount, include normal recurring
ment, based upon discussion with
v to have a material adverse effect
I easonably probable of being incurred and the
settlements are recorded when received.
itments for ongoing capital projects that involve
commitments related to these multi -year contracts are
k2,848,558 as of June 30, 2023 and 2022, respectively.
51
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 193 of 271
Page 74 of 117
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 194 of 271
CENTRAL CONTRA COSTA SANITARY DISTRICT
Cost -Sharing Multiple Employer Defined Benefit Retirement Plan
As of Fiscal Year Ending June 30, 2023
PROPORTIONATE SHARE OF NET PENSION LIABILITY (ASSET)
Last 10 Fiscal Years 1
December
Measurement date
2022
2021
2020
2019 201 2017
2016
2015
2014
Proportion of the net pension
liability
2.22%
22.04%
10.59%
7.42%
e* 6.33%
7.86%
6.27%
6.09%
7.49%
Proportionate share of the net
pension liability(asset)
$37,772,326
($53,543,789)
$48,886,895
$64,117,4
$ 0,104
$63,806,000
$87,847,116
$91,746,888
$89,535,510
Covered payroll
$40,424,238
$37,667,972
$37,131,965
019
93,159
$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
93.44%
-142.15%
66
67%
267.60%
191.57%
278.14%
315.70%
302.00%
Fiduciary net position as a
percentage of the total pension
liability
92.35%
111.ZaI11111h, %
85.05%
77.86%
83.58%
76.44%
74.14%
73.86%
1 The fiscal year ending June 30, 2015 was the first year of i entation
z Covered payroll represents compensation earnable and penswna pensation for the measurement period ended December 31st. Only compensation earnable and pensionable
compensation that would possibly go into the determination of retirelhent benefits are included
53
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 195 of 271
Actuarially determined contribtuion
Contributions in relation to the actuarially determined
contributions
Contributions deficiency (excess)
Covered payroll
Contributions as a percentage of covered -employee
payroll
Notes to Schedule
Measurement Date:
CENTRAL CONTRA COSTA SANITARY DISTRICT
Cost -Sharing Multiple Employer Defined Benefit Retirement Plan
As of Fiscal Year Ending June 30, 2023
SCHEDULE OF CONTRIBUTIONS
Last 10 Years*
2023 2022 2021 2020 2019 2018 2017 2016 2015
$6,812,146 $7,001,200 $70,944,418 $18,046,778 $17,520,615 $17,880,152 $18,043,391 $22,752,611 $24,451,234
6,812,146 7,001,200 70,944,418 18,046,778 17,520,615 17,880,152 18,043,391 22,752,611 24,451,234
$44,642,742
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Inflation
Salary increases
Investment rate of return
Retirement age
Mortality
17.11% 170.44%***
Entry Age
Level percentage of payroll,
3 years **
5-year semi-annually
2.50% '
3.50%-14.00%
6.750X, net of pension Ian ii
50 years Classic
Pub-2010 G Health
$36,638,935 $35,178,106 $32,675,243 $30,093,339
48.80% 51.29% 69.63% 81.25%
* Fiscal year 2015 was the first year of implementation
** Remaining balance of December 31, 2007 UAAL is amortized over a fixed (decr osed) period with 2 years remaining as of December 31, 2020 and 3 years remaining
as of December 31, 2019. Any changes in UAAL after December 31, 2007 will be sepa y amortized over a fixed 18-year period effective with thatvaluation. 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. The entire increase in UAAL resulting from a temporary retirement incentive will be funded in full upon adoption of the incentive.
***Includes one-time payment of $70.8 million to CCCERA to pay down the pension UAAL
54
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 196 of 271
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
Total OPEB Liability
Service Cost
Interest
Changes in benefit terms
Differences between expected and actual experience
Changes of assumptions
Benefit payments
Net change in total OPEB liability
Total OPEB liability - beginning
Total OPEB liability - ending (a)
Plan fiduciary net position
Contributions - employer
Contributions - employee
Adjustment to Beginning Balance
Net investment income
Administrative expense
Benefit payments
Net change in plan fiduciary net position
Plan fiduciary net position - beginning
Plan fiduciary net position - ending (b)
Net 0 P E B liability - ending (a)-(b)
Plan fiduciary net position as a percentage of
the total OPEB liability
Covered -employee payroll
Net OPEB liability as a percentage
of covered -employee payroll
Notes to schedule:
* Fiscal year 2017 was the first year of implementation
June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017
$2,215,263
$2,150,741
$2,249,861
$2,184,331
$2,447,310
$2,370,276
$2,295,667
4,849,272
4,696,247
4,616,239
4,482,146
6,596,612
6,396,063
6,203,230
(27,603,524)
(5,519,185)
3,219,980
(7,346,935)
(4,270,646)
(464,
3,495,645
(4,075,640)
(4,182,821)
46 6
45 654
(5,697,440)
(5,571,750)
(5,404,627)
(6,800,936)
2,664,167
299
2, 823
(28,108,332)
3,194,589
3,094,270
87,991,154
85,326,987
59,68
77,83 65
105,947,197
102,752,608
99,658,338
$81,190,218
$87,991,154
326
$80,359,688
$77,838,865
$105,947,197
$102,752,608
$4,862,308
$5,168�J,654,
$5,395,654
$7,280,240
$9,649,750
$10,433,327
(13M, 00)
5,632,562ql"90X2�)
09514,958,207 2,994,909 4,920,923 3,354,822 4,735,576
(216,70(200,304) (182,833) (174,362) (164,446) (5,404,627)
4 075 (4,654,246) (4,145,6541 (5,697,4401 (5,571,750) (139,063)
6,202,52 67, 14,619,103 4,062,076 6,329,361 7,268,376 9,625,213
4
X4,607,283 69,988,180 65,926,104 59,596,743 52,328,367 42,703,154
,342, 39,609 $84,607,283 $69,988,180 $65,926,104 $59,596,743 $52,328,367
151
100R9%
12,851,545 $719,704 $10,371,508 $11,912,761 $46,350,454 $50,424,241
85.39% 99.16% 87.09% 84.70% 56.25% 50.93%
44,642,742 40,961,867 41,625,151 40,356,579 38,479,260 36,638,935 35,178,106
-0.34% 31.37% 1.73% 25.70% 30.96% 126.51% 143.34%
55
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 197 of 271
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, 2023 2022 2021 2020 2019
2018 2017
Actuarially determined contribution
$3,331,000 $3,324,000
$3,917,000 $3,906,000 $7,524,000
$7,866,000 $7,866,000
Contributions in relation to the
actuarially determined contribution
4,862,308 5,168,000
4,654,246 5,395,65 7,280,240
10,433,327 10,433,327
Contribution deficiency (excess)
($1,53L,308) ($1,844,000)
($737,246) ($1,489,MprTW $243,760
($2,567,327) ($2,567,327)
Covered -employee payroll
$44,642,742 $40,961,867
$41,625,151 $40, MS79 479,260
$36,638,935 $35,178-106
Contributions as a percentage of
covered payroll
10.89% 12.62%
11.18% 13. % 920%1.
28.48% 29.66%
Notes to Schedule
Methods and assumptions used to determine contribution rates:
Valuation Date
July 1, 2022
Actuarial Cost Method
Entry Age Normal, Level Perce
ay
Amortization Method
Level dollar
Asset Valuation Method
Investment gains and losses
d g period
Actuarial Assumptions:
Discount Rate
5.25% at June 30,
General Inflation
2.50% annuall
Medical Trend
Non -Medicare - % for 2024,
reasing to an ultimate rate of 3.45% in 2076
Medicare (Non -Kai - 7.50%
2024, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Kaiser) - 6. 0
4, decreasing to an ultimate rate of 3.45% in 2076
Dental Trend
3.50% annually
Mortality Rate
CCCERA 2018-2020 Experience Study
Mortality Improvement
Mortality projected fully generationally with Scale MP-2021
* Fiscal year 2017 was the first year of implementation
56
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 198 of 271
Page 79 of 117
SUPPLEMENTARY INFORMATION
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 199 of 271
Page 80 of 117
ASSETS
CURRENT ASSETS
Cash and cash equivalents
Restricted cash and investments
Unrestricted investments
Restricted investments
Accounts receivable
Current portion of lease receivable
Interest receivable
Prepaid assets
Supplies & material inventory
Total current assets
NON -CURRENT ASSETS
Non -current portion of lease receivable
Assessment Districts receivable
Net OPEB asset
CAPITAL ASSETS
Nondepreciable
Depreciable, net of accumulated depreck
Total non -current assets
TOTAL ASSETS
DEFERRED OUTFLOWS OF RESOURCES
Pension related
OPEB related
Total deferred outflows of resources
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Salaries & benefits payable
Interest payable
Provision for uninsured claims
Deposits payable
Compensated absences payable, current
Current portion of long-term obligations
Current portion of lease payable
Current portion ofSBITAs
Total current liabilities
NON -CURRENT LIABILITIES
Net pension liability
Non -current portion of long term obligatio
Accrued compensated absences - non-curr
Non -current portion of lease payable
Total non -current liabilities
TOTAL LIABILITIES
DEFERRED INFLOWS OF RESOURCES
Pension related
OPEB related
Lease related
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted net position
Unrestricted net position
TOTAL NET POSITION
Central Contra Costa Sanitary District
Combining Schedule of Net Position
Enterprise Sub -Funds
June 30, 2023
Running Expense
Sewer Construction
Selflnsurance Debt Service
Totals
$14,779,964
$7,544,294
$734,061 -
$23,058,319
-
-
- $1,527
1,527
18,040,000
130,500,000
10,100,000 -
158,640,000
43,662
-
- -
43,662
19,500,717
10,024,981
29,525,698
605,747
-
- -
605,747
180,671
173,520
75,703
429,894
1,253,175
20,000
- -
1,273,175
5,800,474
5,800,474
60,204,410
148,262,795
10,909,764 1,527
219,378,496
3,618,647 -
- 1,642,035 -
3,618,647
1,642,035
49,805,302 9,445,696 1,814,969 68,521,359 129,587,326
52,931,043 52,931,043
8,555,091 - - - 8,555,091
3,970,164 3,970,164
65,456,298 65,456,298
849,413,151 (67,776,014) 781,637,137
- - - 1,527 1,527
32,568,332 140,459,134 9,094,795 (745,345) 181,376,916
$881,981,483 $140,459,134 $9,094,795 ($68,519,832) $963,015,580
S8
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 200 of 271
Page 81 of 117
OPERATING REVENUES
Sewer service charge (SSC)
Sewage treatment cost sharing
Miscellaneous service charges
Total operating revenues
OPERATING EXPENSES
Salaries & benefits
Contracted services
Utilities & fuel
Chemicals
General supplies
Other operating expenses
Asset purchases
Gain (loss) on sale of asset
Depreciation and amortization expense
Contra -expense capital outlays
Total operating expenses
OPERATING INCOME (LO
NON -OPERATING REVENUES (EXPENSES)
Taxes
Permit and inspection fees
Grants
Investment income
Interest expense
Gain (loss) on sale of asset
Other non -operating income
Total non -operating revenues (expense
INCOME (LOSS) BEFORE CAPITAL
CONTRIBUTIONS AND TRANSFERS
CAPITAL CONTRIBUTIONS AND TRANSFER'.
Other government revenue - Concord
Customer contributions to capital
Non -exchange capital contributions/donal
Capacity fees
Total capital contributions
Interfund transfers in/out
CHANGE IN NET POSITION
NET POSITION, BEGINNING OF YEAR
NET POTISION, END OF YEAR
Central Contra Costa Sanitary District
Combining Schedule of Revenues, Expenses and Changes in Net Position
Enterprise Sub -Funds
For the Fiscal Year Ended June 30, 2023
Runnine Expense Sewer Construction Self Insurance Debt Service Totals
$48,447,114 - $1,662,101 - $50,109,215
17,649,002 - - - 17,649,002
2,233,077 2,233,077
68,329,193 - 1,662,101 - 69,991,294
60,809,719
- -
60,809,719
10,127,978
- 452,173 $5,800
10,585,951
8,174,185
- -
8,174,185
2,175,040
- - -
2,175,040
2,675,384
-
2,675,384
1,220,704
- 1,509,201 -
2,729,905
25,003,263
25,003,263
110,186,273
961,374 5,800
112,153,447
(41,857,080)
299,273 (5,800)
(42,162,153)
- $11,028
11,905,088
22,933,224
1,706,192
5 -
2,042,467
959,893 40,938
224,642
4,125,473
(28,183)
- (1,149,288)
(1,177,471)
(48,819)
-
129,918
927,631 12
23,878 -
1,073,645
10,755,800 29,127,256
10,750,000 (13,034,897
9,956,648
-
67,227,158
1,456,478
7,165,352
85,805,636
(14,238,590)
(3,488,590)
72,770,739
(65,031,242)
890,244,841
($68,519,832)
$963,015,580
59
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 201 of 271
Page 82 of 117
z
w
(A
w
No
�rnberX7, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 202 of 271
Page 83 of 117
CENTRAL CONTRA COSTA SANITARY DISTRICT
STATISTICAL SECTION
This part of the District's Annual Comprehensive Financial Report presents detailed information as
a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the District's overall financial health.
Contents
Financial Position and Trends
These schedules contain current and trend information to help the reader
understand the District's financial position and how the District's financial
performance and well-being have changed over time.
Revenue Capacity
These schedules
most significant
Debt Capacity
These schedules
of the District's c
issue additional
Demographic and Ec,
These schedules
the reader under
activities take pl
Operating Informatic
These schedules
information in tl
and the activitie
Pages
61-63
64-67
•ict's
68-69
•dability
ity to
70-71
help
ncial
ovides
72-73
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 203 of 271
Central Contra Costa Sanitary District
Changes in Net Position and Statement of Net Position
Last Ten Fiscal Years
Changes in Net Position
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
Operating Revenues:
Sewer Service Charges (SSC)
$60,796,421
$70,023,512
$72,233,903
$73,138,235
$75,824,221
City of Concord
11,625,864
12,892,945
13,913,960
13,851,253
14,973,623
Other Service Charges
1,035,134
1,006,197
963,014
1,029,500
1,078,5
Miscellaneous Charges
544,589
593,780
623,659
606,453
61
Total Operating Revenue
74,002,008
84,516,434
87,734,536
88,625,441
92 5
Operating Expenses:
Salaries & Benefits
Chemicals, Utilities & Supplies
Professional & Outside Services
Hauling, Disposal, Repairs & Maintenance
Self -Insurance (net of transfers)
Pension/OPEB Expense
Depreciation
All Other
Total Operating Expenses
Operating Loss
Non -Operating Revenues (Expenses):
Property Taxes
Connection & Other Fees
Interest Income
Interest Expense
All Other *
Total Non -Operating
Income Before Contributions and Transfers
Customer Contributions*
Contributed Sewer Lines
Capital Contributions - Connection Fees
CHANGE IN NET POSITION
Total Net Position - Beginning
Prior Period Adjustment - GASH 68 and 71
Prior Period Adjustment - GASB 75
Total Net Position - Ending
Statement of Net Position
Net Investment in Capital Assets
Restricted
Unrestricted
Total Net Position
Source: Central Contra Costa Sanitary District Audited Financial Statements
2018-2019 2019-2020 2020-2021 2021-2022 2022-2023
68,656,908 $70,408,903 $72,325,340 $100,680,646 $50,109,215
15,205,292 14,923,591 15,002,567 16,086,801 17,649,002
1,126,239 1,176,242 1,171,378 - -
689,727 714,043 743,276 2,164,237 2,233,077
85,678,166 87,222,779 89,242,561 118,931,684 69,991,294
58,954,452
66,104,630
63,988,158
62:342:392
,162:484
82
62,672,096
134,167,829
55,538,097
56,002,920
8,063,309
7,466,490
7,304,619
8,115,004
7,477,602
8,14ft
8,088,750
8,738,404
10,972,308
13,024,609
3,995,860
3,322,881
4,196,302
3,891,224
2,988 0
3,27 ,
2,684,034
4,160,807
5,404,618
4,456,818
4,041,355
4,758,260
5,780,533
5,662:0
5,4
5,755,590
5,435,406
5,751,355
3,781,839
5,676,960
214,290
496,381
72,486
(300,10
83)
1,039,444
1,110,798
550,000
1,640,304
1,961,374
-
(3,012,757)
(9,778,389)
(4,080,558)
4,358
(33,307,168)
(2,386,849)
(70,933,999)
373,099
4,806,799
21,892,545
22,740,942
22,885,030
22,892,153
,561,704
20,983,353
21,253,062
21,531,302
23,044,768
25,003,263
2,346,583
2,473,963
3,343,778
,942,592
8,122
2,366,416
1,858,144
1,459,081
1,992,706
1,220,704
99,508,394
104,350,790
97,792,517
85
1 078
73,278,924
100,715,441
105,444,779
102,747,739
112,153,447
(25,506,386)
(19,834,356)
(10,057,961)
,83
17,1
12,399,242
(13,492,662)
(16,202,218)
16,183,945
(42,162,153)
13,093,841
14,083,331
14,83 7
17,650,741
18,251,794
18,876,886
20,516,826
21,239,420
22,933,224
1,575,251
1,843,942
8
2,592,137
2,648,708
2,251,245
2,440,187
2,308,395
2,042,467
359,288
316,475
2,3
38
1:223:349
2,573,964
2,310,269
1,678,028
772,909
4,125,473
(1,996,689)
(1,523,127)
1,427,641
(1,3 8)
(1,230,680)
(1,025,006)
(604,851)
(542,226)
(1,950,841)
(1,177,471)
932,464
1,828,530
1,195,09
96
1,075,838
1,424,520
1,219,811
3,193,569
2,053,331
1,203,563
13,964,155
16,551,151
17,711,
34,
21,311,385
23,873,980
24,053,360
27,286,384
24,423,214
29,127,256
(11,542,231)
(3,283,205)
1
,102
4,126,742
36,273,222
10,560,698
11,084,166
40,607,159
(13,034,897)
10,486,067
752
16,628,105
20,425,514
36,562,141
44,222,958
4O,22O,S49
18,067,469
77,183,806
1,462316
1,
2,899,042
2,003,614
2,179,641
1,761,808
923,468
1,496,013
1,456,478
8,224:517
,673,298
8,54
7,044,340
9,331,420
8,145,068
7,083,702
5,500,316
4,584,973
7,165,352
8,630,669
10,953,934
35,887,290
83,160,072
63,629,166
57,728,499
64,755,614
72,770,739
635,714,997
4,341:96 6
607,078
S93,S7O,427
626,637,016
620,971,490
704,131,562
767,760,728
825,489,227
890,244,841
-
92,522)
1963,349'33,066,589
-
-
-
-
-
-
-
-
(41,552,816)
$644,345,666
$56 8
3,570,427
$626,637,016
$620,971,490
$704,131,562
$767,760,728
$825,489,227
$890,244,841
$963,015,580
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020
2020-2021
2021-2022
2022-2023
$568,006,023
$573,175,094
$581,844,903
$600,770,254
$623,307,342
$655,586,304
$692,117,172
$684,834,242
$747,646,783
$781,637,137
4,809,248
4,288,008
4,363,251
4,449,437
4,421,504
(271,370)
2,639
34,929,105
14
1,527
71,530,395
(13,856,024)
7,362,273
21,417,325
(6,757,356)
48,816,628
75,640,917
105,725,880
142,598,044
181,376,916
$644,345,666
$563,607,078
$593,570,427
$626,637,016
$620,971,490
$704,131,562
$767,760,728
$825,489,227
$890,244,841
$963,015,580
61
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 204 of 271
Fiscal
Year
Sewer Service
Charges*
City of
Concord
ce
N097,
Miscellaneous
Charges
Total
Operating
2013 2014
$60,796,421
$ 864
134
$544,589
$74,002,008
2014-2015
70,023,512
1, 7
593,780
84,516,434
2015 2016
72,233,903
1 3,9
63, 14
623,659
87,734,536
2016-2017
73,138,235
13, 2
,500
606,453
88,625,441
2017 2018
75,824,
14,9
1,078,594
619,997
92,496,435
2018-2019
68,6 8
15,20 2
1,126,239
689,727
85,678,166
2019-2020
7 903
14,923,
1,176,242
714,043
87,222,779
2020-2021
7 340
1,171,378
743,276
89,242,561
2021-2022
100,6
1 801
-
2164237
118,931,684
2022-2023
109,
17,649,002
2:233:077
69,991,294
,iWF- fit -Operating Revenue
Fiscal
Year
Prope
Taxe
Custo
Contributio *1
onnections
& Other Fees *2
Interest
All
Other
Total Non -Operating
& Contributions
2013 2014
$13,093,841
$11,9 83
$9,799,768
$359,288
$932,464
$36,133,744
2014-2015
14,083,331
7 841
8,517,240
318,475
1,828,530
32,311,417
2015-2016
14,835,167
65,920
11,090,481
562,308
1,195,095
41,448,971
2016-2017
16,318,874
9,527,147
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
2021-2022
21,239,420
19,563,482
6,893,368
772,909
2,053,331
50,522,510
2022-2023
22,933,224
78,640,284
9,207,819
4,125,473
1,203,563
116,110,363
* Sewer Service Charge (SSC) represents the Running Expense Fund portion of SSC County collections along with District direct billings and counter colh
*1 Customer Contributions include the portion of SSC that is allocated to Sewer Construction Fund, City of Concord reimbursement of capital costs, an
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
62
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 205 of 271
$179,000,000
$129,000,000
s $79,000,000
ea
0
Ca $29,000,000
$(21,000,000)
$(71,000,000)
2013-2014 2014-2015
■ Salaries and Benefits
■ Self -Insurance
Central Contra Costa Sanitary District
Operating Expenses by Type
Last Ten Fiscal Years
2015-2016 2016-2017 2017-2018
Fiscal Y
ElChemicals, Utilities & Supplies
■ Depreciation _tA
9 2019-2020 2020-2021 2021-2022 2022-2023
Dutside Services ■ Hauling, Disposal, Repairs & Maintenance
Expense* ■ All Other
OPE
ING ENSES
Fiscal Salaries Chemicals, Utilities Professional & Hauli osal, ce Depreciation Pension/OPEB Total Operating
Non -Operating
Year
and Benefits A
& Supplies
Outside Services
Repairs & M e
Expense*
Expenses
Expenses
2013-2014 $58,954,453 $8,063,310 $3,995,861 4,0 $858,738 $21,892,545 - $1,702,131 $99,508,394
$1,996,689
2014-2015
66,104,630
7,466,490
3,322,8
58,2
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
4,196,30
0,533
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
62,086
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
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
(28,743,050)
542,226
2021-2022
55,911,196
10,972,308
5,031,519
3,781,839
1,640,304
23,044,768
373,099
1,992,706
102,747,739
1,950,841
2022-2023
56,002,920
13,024,609
4,456,818
5,676,960
1,961,374
25,003,263
4,806,799
1,220,704
112,153,447
1,177,471
Informational - notgraphed
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".
**Reflects payment to CCCERA of $70.6 million for pension liability pay -down
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 206 of 271
63
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
Fiscal Year
Operations
Capital
Self -Insurance Total
2013-2014
$365
$40
- $405
2014-2015
416
23
- 439
2015-2016
422
49
- 471
2016-2017
432
71
- 503
2017-2018
447
83
- 5
2018-2019
400
167
-
2019-2020
408
190
- 598
2020-2021
277
352
- 629
2021-2022
442
209
$10 60
2022-2023
$284
$396
$10 $690
Multi -Family Annual Sewer Service Charg
Fiscal Year
Operations
Capital
Self-Insuran Total
2013-2014
$365
$40
$405
2014-2015
416
23
439
2015-2016
415
48
- 463
2016-2017
418
69
487
2017-2018
432
81
513
2018-2019
388
16
- 549
2019-2020
386
180
- 566
2020-2021
262
334
- 596
2021-2022
418
198
$9 625
2022-2023
$269
$375
$9 $654
*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 multifamily 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
Facility
Capacity Fee *2
$5,930
5,995
6,005
5,948
6,300
6,700
6,589
6,803
6,803
$7,200
Pump
Zone Fee *3
$1,587
1,585
1,650
1,608
1,639
1,636
1,586
1,585
1,585
$2,011
64
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 207 of 271
Central Contra Costa Sanitary District
Assessed and Estimated Actual Valuation of Taxable Property
Last Ten Fiscal Years
Fiscal Year Local Secured Unsecured
Total
% Change
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
4,786,093,269
5.8%
2019-2020
108,704,671,836
1,863,018,75
67,690,595
5.5%
2020-2021
110,795,231,142
1,848,644
11 3,876,052
1.9%
2021-2022
115,098,221,080
1,974,85 6
117,073,071,396
3.9%
2022-2023
123,119,257,816
1,855,761,
124,975,019,385
6.7%
Prope
Property Tax*
Fiscal Year Levied & Collected
l Collected
Charges*
)llected
Collection
Percentage % Change
2013-2014
$13,108,176
1
� -0.6%
$66,604,323
100%
10.9%
2014-2015
14,195,300
0°
8.3%
72,622,738
100%
9.0%
2015-2016
15,323,818
°0
7.9%
78,930,977
100%
8.7%
2016-2017
16,428,089
10
7.2%
83,601,971
100%
5.9%
2017-2018
17,300,475
10
5.3%
87,944,554
100%
5.2%
2018-2019
18,352,620
/0
6.1%
95,298,869
100%
8.4%
2019-2020
19,348,103
0%
5.4%
100,863,356
100%
5.8%
2020-2021
20,233,423
100%
4.6%
100,603,114
100%
-0.3%
2021-2022
22,323,425
100%
10.3%
108,725,443
100%
8.1%
2022-2023
22,947,184
100%
2.8%
114,989,889
100%
5.8%
* 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.
Source: Contra Costa County Auditor -Controller's Office
6November 27, 2023 Special FINANCE Committee Meeting Agenda Packet5 Page 208 of 271
2013.2014
Central Contra Costa Sanitary District
Sewer Service Charge
Ten Largest Customers
Last Ten Fiscal Years
2014-2015
2015-2016
2016-2017
2017-2018
Sewer Service
Percentage of
Sewer Service
Percentage of
Sewer Service
Percentage of
Sewer Service
Percentage of
Sewer Service
Percentage of
Charges
Total Sewer
Charges
Total Sewer
Charges
Total Sewer
Charges
Total Sewer
Charges
Total Sewer
Customer
Collected
Rank
Service Charges
Collected
Rank
Service Charges
Collected
Rank
Service Charges
Collected
Rank
Service Charges
Collected
Rank
Service Charges
City of Concord 1.
$ 11,625,864
1
14.02%
$ 12,892,945
1
14.38%
$ 13,913,960
1
8%
$ 13,851,253
1
13.37%
14,973,623
1
°
13.46 /°
Chevron Offices & Office Park
419,590
2
0.51%
-
-
-
Contra Costa County General Services 2.
384,750
3
0.46%
451,567
2
0.50%
638,608
0.65%
547,943
2
0.53%
556,782
2
0.50%
First Walnut Creek Mutual
361,260
4
0.44%
417,050
3
0.47%
439,850
.45%
462,650
3
0.45%
487,350
3
0.44%
Park Regency Apartments
303,750
5
0.37%
391,588
4
0.44%
412,99
4
%
434,404
4
0.42%
457,596
4
0.41%
Second Walnut Creek Mutual Apts
211,866
6
0.26%
329,250
5
0.37%
347 0
5
365,250
5
0.35%
387,750
5
0.35%
Branch Creek Vista Apartments
162,000
7
0.20%
175,600
7
0.20%
-
194,800
9
0.19%
205,200
9
0.18%
Sun Valley Mall
148,374
8
0.18%
299,697
6
0.33%
613
6
0.29%
298,005
7
0.29%
354,208
6
0.32%
Bay Landing Apartments
145,800
9
0.18%
158,040
9
0.18%
-
-
-
-
-
-
John Muir Health 2.
145,091
10
0.18%
-
-
218,91
7
0.22%
322,601
6
0.31%
278,589
7
0.25%
St. Mary's College Contract
-
-
-
-
-
-
-
-
-
-
Kaiser Foundation Hospital 2.
158,848
8
0.18%
10
0.19%
186,281
10
0.18%
Archstone Apartments
-
-
153,650
10
0.17°u
-
-
-
-
-
Muirland @ Windemere Apartments
-
-
153,650
10
0.
-
-
-
-
-
-
Willows Shopping Center 2.
-
-
-
216,21
9
0.21%
-
-
188,828
10
0.17%
San Ramon Unified School District
44
8
0.22%
225,339
8
0.22%
247,766
8
0.22%
Total
$13,908,345
16.78%
$ 15,581,885
17.37
16,8
17.18%
$ 16,888,526
16.30%
18,137,692
°
16.31 /a
2018-2019
019-20
2020-2021
2021-2022
2022-2023
Sewer Service
Percentage of
Sewe ce
rcentage of
ewer Service
Percentage of
Sewer Service
Percentage of
Sewer Service
Percentage of
Charges
Total Sewer
C
Charges
Total Sewer
Charges
Total Sewer
Charges
Total Sewer
Customer
Collected
Rank
Service Charges
11
1
Collected
Rank
Service Charge
Collected
Rank
Service Chargg
Collected
Rank
Service Charges
City of Concord 1.
$ 15,205,292
1
12.63010
923,5
1
11.52%
$15,048,782
1
11.80%
$16,134,761
1
11.97%
$17,700,461
1
12.21%
First Walnut Creek Mutual
521,550
2
0.43%
700
0.42%
537,700
3
0.42%
593,750
2
0.44%
621,300
2
0.43%
Park Regency Apartments
489,708
3
0.4
2
0.39%
504,872
4
0.40%
557,500
3
0.41%
583,368
3
0.40%
Second Walnut Creek Mutual Apts
411,750
6
42
5
0.33%
424,500
5
0.33%
468,750
4
0.35%
490,500
4
0.34%
John Muir Health 2.
413,900
5
0.
391,
6
0.30%
362,718
6
0.28%
404,989
5
0.30%
434,624
5
0.30%
Branch Creek Vista Apartments
219,600
10
0.18
226,
10
0.17%
226,400
9
0.18%
250,000
6
0.19%
261,600
6
0.18%
Bay Landing Apartments
-
-
-
-
225,000
7
0.17%
235,440
7
0.16%
Archstone Apartments
198,876
10
0.15%
228,900
8
0.16%
Muirland @ Windemere Apartments
-
-
218,750
9
0.16%
228,900
9
0.16%
Kaiser Foundation Hospital 2.
244,180
9
0.20%
-
-
-
-
222,277
8
0.16%
225,383
10
0.16%
Contra Costa County General Services 2.
-
-
733,416
2
0.57%
740,223
2
0.58%
Sun Valley Mall
453,512
4
0.38%
373,171
7
0.29%
339,061
7
0.27%
St. Mary's College Contract
-
-
-
242,777
8
0.19%
San Ramon Unified School District
266,550
8
0.22%
283,631
9
0.22%
215,229
10
0.17%
Bishop Ranch City Center
315,106
7
0.26%
335,017
8
0.26%
Willows Shopping Center 2.
-
-
-
-
-
-
-
-
-
-
Total
$ 18,541,148
15.40%
$ 18,733,543
14.46%
$ 18,642,262
14.62%
$ 19,274,654
14.30%
$ 21,010,476
14.50%
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
66
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 209 of 271
Central Contra Costa Sanitary District
Payments Under the Concord Agreement
Last 10 Fiscal Years
Fiscal Year
Discharge Volume (mg)
Service Charges
Capital Contributions
Total
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
15,048,782
11,393,000
26,441,782
2020-21
3,922
15,048,782
10,064,155
25,112,937
2021-22
3,973
16,086,801
7,799,702
23,886,503
2022-23
4,754
17,700,461.
9,965,648
27,666,109
User Group
Residential
Office
Mixed Use
Food Service
Hotel/Motel
Businesses*
Market/Supermarket
Schools
Recreation/Entertainment
Industrial Permitted
Automotive/Car Wash
Skilled Nursing
All Other User Groups
Subtotal
Partial Year Charges (Counter)
Prior Year Adjustments
Total FY 2022-2023 Sewer Service Charge Revenue
250
44
549
119,097
834,474
767,413
3,261,534
$117,769,746
$607,007
(1,040,380)
$117,336,373
;idential Unit Eauivalents
141,979
4,988
3,755
3,534
1,845
1,712
1,509
1,481
1,423
1,407
1,209
1,112
4,727
170,681
Percentage of
Total
IUU"/o
67
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 210 of 271
Debt Service Paid Each Fiscal Year
$14,000,000
$12,000,000
$10,000,000
@ $8,000,000
m
p° $6,000,000
$4,000,000
$2,000,000
$0
Summary Of Debt Service
Last Ten Fiscal Years
.y0Nt,^�^6^� 1PN1. `L�^9 `loti� `L�ti^ `lotiry `L°tip
'1�^`S ,LO,^A' `L°^�' 'L�^6' `L°^'l' `L°^0 ,Lo•^9' ,V'p,
$75,000,000
$60,000,000
T $45,000,000
0
o $30,000,000
$15,000,000
$0
Outstanding Debt Each Fiscal Year
In 2021, the District issued COP's for $58.OM, see Note 6
o^° 0^1 ^° o^ oti° ory^ otiry oti�
SurnmarylEffivve0JAWt
evenue Bonds 2018 & 2009 & COP tal Debt Service Annual Expen 1
Fiscal
Interest &
Total
Interest & Total
Interest &
Total
Rev. Bonds
Year
Principal
$3,720,000
Amortization
$1,974,151 <a
Debt Service
$5,694,151
Principal
$164,581
Amortization ice
$22,537
al
$3, 1
Amortization
$1,996,688
Debt Service
$5,881,269
& COP's
$39,875,000
.
$702,245
$40,577,245
2013-2014
2014-2015
3,865,000
1,504,939
5,369,939
168,860
18,258 87,
03 60
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 7
3,251
1,427,640
3,810,891
33,800,000
660,134
34,160,134
2016-2017
2,300,000
1,304,036
3,604,036
177,757
9
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
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
2021-2022
10,450,000
1,482,288
11,932,288
10,450,000
1,482,288
11,932,288
64,110,319
64,110,319
2022-2023
10,750,000
1,326,410
12,076,410
10,750,000
1,326,410
12,076,410
67,776,015
67,776,015
Total
Debt Ser
Total Operatng on -Operating
ove ummar
Debt Service
Debt Ratios
Annual Debt Annual Debt Total Debt
Capital
Debt Service
Fiscal
Debt Operating
Expenses less venue &
et Coverage
Improvement
Adjusted Net
Coverage
Service to Service per Outstanding
Year
Service Revenue
Depreciation *1 tions
nue *2 (Net Revenue) *3
Fees Concord
Revenue *4
(Adj. Net Revenue) "5
Operating Exp. Customer Per Customer
2013-2014
$5,881,269
$74,002,008
$77,615,84:
$3 , 44
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
32,3
35,218,003
6.34
9,570,789
25,647,214
4.62
6.81a/o
33.01
217.10
2015-2016
3,810,891
87,734,536
74,907,487
41:448,
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
2,282,226
89,242,561
83,913,477
73,930,717
79,259,801
34.73
15,564,471
63,695,330
27.91
2.72%
13.32
441.92
2021-2022
11,932,288
118,931,684
80,231,165
50,522,510
89,223,029
7.48
12,384,675
76,838,354
6.44
14.87%
69.63
374.10
2022-2023
1 12,076,410
1 70,015,172
1 89,899,953
1 107,334,739
1 87,449,958
7.24
17,122,000
1 70,327,958
5.82
13.43%
70.47
395.49
Note: Details regarding the Districts 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.
*12014-2015 includes implementahm of pension expense reporting changes for GASB 68 & 71.
*2 Net Revenue = Operating Revenue, less Total Operating Expenses less Depreciation, plus Non -Operating Revenue & Contributions.
*3 This ratio must be above 1.00 to meet the Debt Rate Covenant (Net Revenue/Total Debt Service).
*4 Adjusted Net Revenue = Net Revenue less Capital Improvement Fees (Connection Fees) and City of Concord Capital Charges. In FY 2019-20 the Board,
by Resolution, adopted rate stabilization fund reserve accounts for the 0&M and Sewer Construction funds, contributing initial seed monies of $2.61 million.
*5 This ratio must be above 1.25 to meet the Debt Rate Covenant (Adjusted Net Revenue/Total Debt Service).
snNPverpa ,er,27.t?-p
Zry§i e jaJitFd'p`cNlq e Cn�Smmrit agAM tgraqo/� enda Packet -Page 211 of 271
68
Debt Restrictions:
Revenue Pledge & Covenant: The District pledges
Property Tax Revenue along with its ability to raise Sewer
Service Charge (SSC) rates. Debt Coverage requirements
are discussed in thefootnotes to the left
Central Contra Costa Sanitary District
Ratios of Outstanding Debt
Last Ten Fiscal Years
Fiscal Year
Total
Per Capita
Ended
Outstanding
Personal
June 30
Debt
Income*
2013
$44,461,826
$61,435
2014
40,577,245
64,056
2015
36,543,385
69,195
2016
34,160,134
72,195
2017
31,682,377
76,527
2018
29,095,000
82,506
2019
21,806,631
85,324
2020
19,447,392
92,264
2021
75,733,331
99,312
2022
64,110,319
95,047
* U.S. Department of Commerce, Bureau of Economic Analysis. Estimates for
Debt as a
Percentage
of Per Capita
Personal Income
0.138%
0.158%,
0.189%
0.21
0
84%
r,wlation*
,095,310
110,971
\4,
1,150,215
1,153,526
1,152,333
1,161,413
1,156,966
estimates available as of November 2023.
Debt
per
Capita
40.59
36.52
32.45
30.00
27.61
25.30
18.90
16.88
65.21
55.41
69
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 212 of 271
Central Contra Costa Sanitary District
Demographic and Economic Data
Population Served
Last Ten Calendar Years
Inside District
As Of January 1 Boundaries
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Source: Central Contra Costa Sanitary District Environmental Services Division
EmDlovers
Chevron Corporation
Kaiser Permanente
Bio-Rad Laboratories
John Muir Medical Center
La Raza Market
USS-POSCO Industries
Target Corporation
Walmart Stores, Inc.
Contra Costa Newspaper, Inc.
Doctors Medical Center
Shell/Martinez Refinery
Texaco Inc.
A110thers
Total
335,009
339,029
340,667
344,591
348,333
352,733
342,149
344,254
352,832
352,183
List of Ten Largest Ern
Last Year a
T1
7-4,9
T-1
T-2
T-2
,,T-2
1,000-4,999 T-2
499,600
531,600
Concord/
Clavton
135,856
137,357
140,916
139,654
140,A0
Costa County
% of Total County
1.89%
1.89%
0.56%
0.56%
0.56%
0.56%
93.98%
100.0%
Total
Served
470,865
476,386
481,583
484,245
488,923
494,275
483,629
484,795
487,329
485,672
2013*
Change
Estimated
% of Total County
Employees
Rank
Employment
1,329
3
0.24%
2,000
2
0.36%
900
9
0.16%
2,200
1
0.40%
1,262
4
0.23%
1,150
5
0.21%
937
6
0.21%
1,140
7
0.17%
900
8
0.16%
800
10
0.15%
536,100
97.71%
548,718 100.0%
Source: * County of Contra Costa, California, Annual Comprehensive Financial Report for June 30, 2022, Statistical Section, principal employers excludes government employers.
70
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 213 of 271
Central Contra Costa Sanitary District
Demographic and Economic Statistics
Contra Costa County
Last Ten Fiscal Years
Fiscal Year
Ended
June 30
2013
Population*
1,095,310
Personal
Income*
$67,290,115,000
Per Capita
Perso
In *
5
Average Annual
Unemployment
Rate**
7.4%
2014
1,110,971
71,164,468,000
64,
6.2%
2015
1,126,027
77,914,957,000
69,19
5.0%
2016
1,138,645
82,204,425,00
72,195
4.4%
2017
1,147,439
87,810,279,0
76,527
3.8%
2018
1,150,215
94,900,003,000
82,506
2.7%
2019
1,153,526
9 8,4 28,000 85,324
7.9%
2020
1,152,333
106,31
92,264
5.3%
2021
1,161,413
115,342, 8,0
99,312
6.4%
2022
1,156,966
�2965,
95,047
3.5%
* U.S. Department of Commerce, Bof
** State of California, Employment p
fates for 2021-2022 reflect county population estim;
annual calendar figure.
71
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 214 of 271
Central Contra Costa Sanitary District
Full-time Equivalent Positions Filled by Department
Last Ten Fiscal Years
Full-time Equivalent Positions Filled as of J 30
Department
2014
2015 2016 2017 8
2019
2020
2021
2022
2023
Administration
44
46 49 43
1
44
51
50
52
Engineering
73
72 88 88 89
90
89
90
92
83
Operations
Collection Systems
55
56 55 5 54
54
53
55
55
54
Optimization
8
Plant
81
88 81
77
81
75
73
74
Pumping Station
8
8 7 7
12
7
7
6
7
Operations Total
144
152 142
143
141
137
134
143
District Total
261
27 8 276 274
274
274
278
276
278
Number of Retirees and Surviving Spouses as of June 30
Last Ten Fiscal Years
District Total 243 244 249 259 278
Source: Central Contra Costa Sanitary District Finance and Human Resources Divisions
268 269 261 275 275
72
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 215 of 271
Central Contra Costa Sanitary District
Capital Asset and Operating Statistics
Last Ten Calendar or Fiscal Years
Treatment Plant
Treatment Plant Permitted Capacity
Average Dry Weather Flow (ADWF)
Wastewater Treated per day
Millions of Gallons per Day (mgd)
Year 2013
2014
2015 2016 2017 2018
2019
2020
2021
2022
Calendar 53.8
53.8
53.8 53.8 53.8 53.8
53.8
53.8
53.8
53.8
Calendar 33.8
30.4
29.1 30.8 33.3 31.8
34.1
33.2
29.5
30.9
Calendar 36.8
35.6
31.8 35.4 43.2 36.0
41.2
35.3
34.6
33.9
Tons per Year
Sludge to Furnace (Dry)*i
Fiscal 14,590 16,789 16,623
17,031
16,279
16,498
16,056
16,029
Ash to Reuse Site (Wet)*2
Fiscal 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�there,
excluding the 73 to 81 percent
water in
the wet sludge.
Collection Systems/Pumping Stations/Outfall Sewers
Other
Data
Pipeline Miles
Calendar 1,526 1,519
519
1,535
1,535
1,535
1,535
Number of pumping stations (owned)
Calendar 16 16 6
6
15
15
15
15
Recycled Water
Recycled Water Distribution Pipeline (miles)-3
Calendar 14.3 1 1 6
14.6
14.6
14.6
14.6
14.6
Average Recycled Water Produced (million gallons per day)
Calendar 1.7
1.5
1.6
1.6
1.6
1.4
Number of Recycled Water Customers Sites
Calendar 29 43
47
47
49
50
58
Commercial Truck Fill Use (million gallons per year)
Calendar <0.1 0. 4.4
0.4
0.6
0.6
4.6
4.8
Commercial Truck Fill Customers
Calendar 11 37
26
14
13
12
6
Estimated Residential Fill Station Use (million gallons per year)
Calendar N/A .8
6.5
2.5
2.3
1.3
1.0
Residential Fill Station Customer Visits
Calendar N 5
28,598
11,633
9,780
5,671
4,635
*3 In 2021, pipeline miles only include active pressurized recycled water mains and laterals.
Household Hazardous Waste (HH - Inception 1997/1998
Program Participation (Number of cars)
al 379 79 33,468
33,037
35,640
36,108
27,818
35,634
Percentage of Households in Service Area
al .6% 16.8%
16.7%
18.1%
18.4%
14.0%
17.9%
Operating Cost per Car
$78 $72
$80
$77
$78
$100
$95
Operating Cost per Hoursehold
Fisc $13.45 $13.25 $12.43
$13.64
$14.21
$14.59
$14.29
$17.24
Operating Cost per Pound
iscal $1.25 $1.24 $1.13
$1.24
$1.21
$1.27
$1.64
$1.24
Pounds of HHW per Car
1 66 63 64
65
64
61
61
76
Pharmaceutical Collection Program - Inception 2009
Number of Collection Sites
Calen 12 13 13
13
13
13
12
12
Pounds of Expired or Unwanted medications Collected
Cal 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 (294 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 (7-Collection Sites)
Retail HHW Collection Program
Type Of Treatment: Discharge - Secondary; Reclamation - Tertiary
Service Area: 146 square miles
Total Population Served: 487,329 (HHW service area 523,600)
Sewer Service Charge: $690 for single family homes and $654 for multi -family homes.
Source: Central Contra Costa Sanitary District records 73
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 216 of 271
15,959 15,879
3,627 3,510
1,535 1,541
15 15
13.5 13.8
1.5 1.7
53 57
5.5 0.6
9 18
5.1 6.7
22,208 29,124
33,658 30,327
16.7% 14.9%
$88 $105
$14.99 $16.00
$1.36 $1.74
65 61
8 7
5,396 5,662
Page 97 of 117
Attachment 2
CENTRAL CONTRA COSTA SANITIW
REQUIRED C
INS
CT
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 217 of 271
Page 98 of 117
Attachment 2
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 218 of 271
Page 99 of 117
Attachment 2
CENTRAL CONTRA COSTA SANITARY DISTRICT
MEMORANDUM ON INTERNAL CONTROL
AND
REQUIRED COMMUNICATIONS
For the Year Ended June 30, 2023
Table of Contents
Page
Memorandum on Internal Control....................................................................................................1
Scheduleof Other Matters...................................................................................................
3
Required Communications....................................................... .............................................15
Significant Audit Matters ............................................ ........................... ...........................15
Qualitative Aspects of Accounting Practices ............................................................15
AccountingEstimates ........................... ............................................................17
Corrected and Uncorrected Mis temen...................................................................17
Disagreements with Man ent. ................................................................................18
Management Representati...........................................................................................18
Management sultatio it er Independent Accountants.....................................18
OtherAudit Fin s or Iss.............................................................................................18
OtherMatters ............................................................................................................................18
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 219 of 271
Page 100 of 117
Attachment 2
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 220 of 271
Page 101 of 117
Attachment 2
[)4. 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, 2023, 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 t for the purpose of expressing an
opinion on the effectiveness of the District's internal control. Accord in e do not express an opinion on the
effectiveness of the District's internal control.
A deficiency in internal control exists when the design or oper of a co does not allow management or
employees, in the normal course of performing their assi functions, t vent, or detect and correct
misstatements on a timely basis. A material weakness i jdefi y, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility thrial misstatement of the District's financial
statements will not be prevented, or detected and cogeected, onely basis.
Our consideration of internal control was for the
designed to identify all deficiencies in inte cc
of inherent limitations in internal con ,
misstatements due to error or fraud occur
during our audit, we did not ident ny
weaknesses. However, material weakn ay
Included in the Schedi
believe to be of potenti�
dXcribed in the first paragraph and was not
ig e material weaknesses. In addition, because
possibility of management override of controls,
detected by such controls. Given these limitations
n internal control that we consider to be material
have not been identified.
recommendations not meeting the above definitions that we
This communication is intendeilr the information and use of management, Board of Directors, others
within the organization, and agent nd pass -through entities and is not intended to be and should not be used
by anyone other than these specified parties.
Pleasant Hill, California
DATE
Accountancy Corporation
3478 Buskirk Avenue, Suite 215
Pleasant Hill, CA 94523
r 925.930.0902
F 925.930.0135
E mazeamazeassociates.com
w mazeassociates.com
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 221 of 271
Page 102 of 117
Attachment 2
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 222 of 271
Page 103 of 117
Attachment 2
CENTRAL CONTRA COSTA SANITARY DISTRICT
SCHEDULE OF OTHER MATTERS
FOR THE YEAR ENDED JUNE 30, 2023
2023-01 New GASB Pronouncements Not Yet Effective
NEW GASB PRONOUNCEMENTS OR PRONOUNCEMENTS NOT YET EFFECTIVE
The following comment represents new pronouncements taking affect in the next few years. We cite them here
to keep you informed of developments:
EFFECTIVE FISCAL YEAR 2023/24:
GASB 100 — Accountinz for Changes and Error Corrections
The primary objective of this Statement is to enhance accounting and financial reporting requirements for
accounting changes and error corrections to provide more understandab]L reliable, relevant, consistent, and
comparable information for making decisions or assessing accountability
This Statement defines accounting changes as changes
estimates, and changes to or within the financial reporting
that constitute those changes. As part of those descriptions,
(2) certain changes in accounting estimates that result fA
principle or methodology should be justified on the basis
used before the change. That preferability shoul be b,
reporting —understandability, reliability, relevance,
also addresses corrections of errors in previously iss find
This Statement prescribes the acci
error corrections. This Statement
reported retroactively by restatin
reported by adjusting beginnin
reported prospectively by re
changes in accounting pri les
transition provisions in t w
adjustments to and restateme
displayed by reporting unit in th
in
Prntin inciples, changes in accounting
d descri he transactions or other events
�ertain chanlW in accounting principles and
O�e in measurement methodology, a new
preferable to the principle or methodology
the qualitative characteristics of financial
kency, and comparability. This Statement
ncial orting for (1) each type of accounting change and (2)
tha ) cha sin accounting principles and error corrections be
nges to or within the financial reporting entity be
the current period, and (c) changes in accounting estimates be
e in the current period. The requirements of this Statement for
th plementation of a new pronouncement in absence of specific
;ement. This Statement also requires that the aggregate amount of
ng net position, fund balance, or fund net position, as applicable, be
statements.
This Statement requires disclosure in notes to financial statements of descriptive information about accounting
changes and error corrections, such as their nature. In addition, information about the quantitative effects on
beginning balances of each accounting change and error correction should be disclosed by reporting unit in a
tabular format to reconcile beginning balances as previously reported to beginning balances as restated.
Furthermore, this Statement addresses how information that is affected by a change in accounting principle or
error correction should be presented in required supplementary information (RSI) and supplementary
information (SI). For periods that are earlier than those included in the basic financial statements, information
presented in RSI or SI should be restated for error corrections, if practicable, but not for changes in accounting
principles.
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 223 of 271
Page 104 of 117
Attachment 2
CENTRAL CONTRA COSTA SANITARY DISTRICT
SCHEDULE OF OTHER MATTERS
FOR THE YEAR ENDED JUNE 30, 2023
EFFECTIVE FISCAL YEAR 2024/25:
GASB 101— Compensated Absences
The objective of this Statement is to better meet the information needs of financial statement users by updating
the recognition and measurement guidance for compensated absences. That objective is achieved by aligning the
recognition and measurement guidance under a unified model and by amending certain previously required
disclosures.
Recognition And Measurement
This Statement requires that liabilities for compensated absences be recognized for (1) leave that has not been
used and (2) leave that has been used but not yet paid in cash or settled through noncash means. A liability
should be recognized for leave that has not been used if (a) the leave is att ' utable to services already rendered,
(b) the leave accumulates, and (c) the leave is more likely than not to ed for time off or otherwise paid in
cash or settled through noncash means. Leave is attributable to servi ady rendered when an employee has
performed the services required to earn the leave. Leave that accu ate arried forward from the reporting
period in which it is earned to a future reporting period durin ich it ma used for time off or otherwise
paid or settled. In estimating the leave that is more likely not to be use otherwise paid or settled, a
government should consider relevant factors such as empl ent ies related to compensated absences and
historical information about the use or payment of compen sences. However, leave that is more likely
than not to be settled through conversion to defined nefit pos loyment benefits should not be included in a
liability for compensated absences.
This Statement requires that a
military leave, and jury duty lea
that a liability for specific types
This Statement also establishes
using an employee's pay <ratbut not yet paid or settlemade. Certain salary-relaalso should be included i
With respect to financial stateme Wpre
Statement requires that expenditures be
expendable available financial resources.
Notes To Financial Statements
corn7ensated absences —including parental leave,
the leave commences. This Statement also requires
be recognized until the leave is used.
ability for leave that has not been used, generally
statements. A liability for leave that has been used
it of the cash payment or noncash settlement to be
incrementally associated with payments for leave
Jared using the current financial resources measurement focus, this
recognized for the amount that normally would be liquidated with
This Statement amends the existing requirement to disclose the gross increases and decreases in a liability for
compensated absences to allow governments to disclose only the net change in the liability (as long as they
identify it as a net change). In addition, governments are no longer required to disclose which governmental
funds typically have been used to liquidate the liability for compensated absences.
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 224 of 271
Page 105 of 117
Attachment 2
CENTRAL CONTRA COSTA SANITARY DISTRICT
SCHEDULE OF OTHER MATTERS
FOR THE YEAR ENDED JUNE 30, 2023
GASB 101— Compensated Absences (Continued)
How the Changes in this Statement Will Improve Financial Reporting
The unified recognition and measurement model in this Statement will result in a liability for compensated
absences that more appropriately reflects when a government incurs an obligation. In addition, the model can be
applied consistently to any type of compensated absence and will eliminate potential comparability issues
between governments that offer different types of leave.
The model also will result in a more robust estimate of the amount of compensated absences that a government
will pay or settle, which will enhance the relevance and reliability of information about the liability for
compensated absences.
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 225 of 271
Page 106 of 117
Attachment 2
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Page 107 of 117
Attachment 2
MAZE
& ASSOCIATES
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, 2023. Professional standards require that we provide you with information about our
responsibilities under generally accepted auditing standards as well as certain information related to the planned
scope and timing of our audit. We have communicated such information orally during our discussion with the
Audit Committee on July 7, 2023. Professional standards also requiOthat we communicate to you the
following information related to our audit
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Accounting Policies — Management is responsible for the
The significant accounting policies used by the Dis 'ct ar
new accounting policies were adopted, and the app
except as indicated below:
The following pronouncements became
GASB 91—
GASB 94 —
GASB 96 —
GASB 99 —
use of appropriate accounting policies.
Note 1 to the financial statements. No
,licies was not changed during the year,
have a material effect on the financial statements:
and
xtion Technology Arrangements
11-25
Availability Payment
Unusual Transactions, ControvNiLlArmerging Areas - We noted no transactions entered into by District
during the year for which there is JW 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.
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,
Accountancy Corporation
3478 Buskirk Avenue, Suite 215
Pleasant Hill, CA 94523
T 925.930.0902
F 925.930.0135
E mazeamazeassociates.com
w mazeassociates.com
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 227 of 271
Page 108 of 117
Attachment 2
2023. The value of the District's net pension asset 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, 2023. 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 pKforming and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and ents identified during the audit,
other than those that are clearly trivial, and communicate th o thly misste appropri eel of management. We did
not propose any audit adjustments that, in our judgement,4111 Id ha significant effect, either individually or
in the aggregate, on the District's financial reporting process.
Professional standards require us to accumulate n ana%cly uncorrected misstatements identified
during the audit, other than those that are trivial, an m th to the appropriate level of management.
We have no such misstatements to report to t�Boar ecto
Disagreements with Management
For purposes of this letter, a disa ree ith mana ement is a financial accounting, reporting, or auditing
matter, whether or not resole sa tion, that could be significant to the financial statements or the
auditor's report. We are pl d to rep hat uch disagreements arose during the course of our audit.
Management
We have requested certain represelwons from management that are included in a management representation
letter dated DATE.
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.
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 228 of 271
Page 109 of 117
Attachment 2
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 Matters
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 informatioy
We were engaged to report on the supplementary information, whicr
not required supplementary information. With respect to this s4
inquiries of management and evaluated the form, content,
determine that the information complies with accounting pr' ples
America, the method of preparing it has not changed fro e pri
and complete in relation to our audit of the financial stateme
information to the underlying accounting records �d to pre
statements themselves.
This information is intended solely
be, and should not be, used by anyc
Pleasant Hill, California
DATE
the financial statements but are
information, we made certain
preparing the information to
,ented in the United States of
eriod, and the information is appropriate
compared and reconciled the supplemental
the financial statements or to the financial
of Directors and management and is not intended to
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 229 of 271
Page 110 of 117
Attachment 2
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Page 111 of 117
Attachment 3
November 27, 2023
Accept Independently Audited
Annual Comprehensive
Financial Report
for FY 2022-23
Finance Committee
Kevin Mizuno, CPA
Finance Manager
1
2
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 231 of 271 1
Page 112 of 117
Attachment 3
Introduction
Annual exercise to receive and accept
Central San's annual financial
statements
For year ended June 30, 2023
Financial statements are presented in an
Annual Comprehensive Financial Report
(ACFR) format
Independently audited
Acceptance has no direct fiscal impact
3
Independent Audit
Independent Audit
Results
Independent audit required pursuant to 0
California Government Code § 26909
Must be delivered to California State
Controller's Office within 12 months of
end of fiscal year 1
Independent audit conducted by audit
firm Maze & Associates
Role of independent auditor versus
Central San management.
4
a..
Ali
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 232 of 271 2
Page 113 of 117
Attachment 3
5
Independent Audit
Two Independent Audit Reports
Audit Opinion Letter
Memo on Internal Control (MOIC)
Always 15Y page of ACFR
Reports on any material weaknesses or
Audit conducted in accordance with
significant deficiencies identified during
independent audit
generally accepted audit standards (GAAS)
issued by the American Institute of
Not an opinion on effectiveness of Central
Certified Public Accountants (AICPA)
San's internal controls
Ascertain whether audit is presented fairly
in
Other significant audit matters, including:
accordance with generally accepted
audit principles (GAAP) issued by the
New accounting standards
Government Accounting Standards Board
Accounting estimates
(GASB)
Corrected and uncorrected misstatements
Reference to materiality and disclaimers
Disagreements with management
This year's results: Unmodified ("clean")
audit opinion
ACFR Highlights
Annual Comprehensive
Financial Report (ACFR)
Provide financial condition and performance for
fiscal year ended June 30, 2023
Full accrual single enterprise fund format
compared to modified accrual "sub -fund"
reporting in budget book
ACFR goes above and beyond the typical "basic
financial statements"
Introductory
Financial
Statistical
Implementation of GASB 96: Subscription -Based
Information Technology Arrangements (SBITAs)
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 233 of 271 3
Page 114 of 117
Attachment 3
ACFR Highlights
Statement of Net
Position
Two Year
Comparison
$Increase
% Increase
June 30, 2023
June 30, 2022 (Decrease)
(Decrease)
Total assets
$ 1,074,204,242
$ 1,046,518,092 $ 27,686,150
2.6%
Total deferred outflows
83,854,962
130,729,859 (46,874,897)
-35.9%
Total liabilities
129,587,326
100,621,583 28,965,743
28.8%
Total deferred inflows
65,456,298
186,381,527 (120,925,229)
-64.9%
Net position
Net investment in capital assets
Restricted
Unrestricted
Total net position
7
ACFR Highlights
781,637,137
747,646,783
33,990,354
4.5%
1,527
14
1,513
10807.1%
181,376,916
142,598,044
38,778,872
27.2%
$ 963,015,580 $
890,244,841
$ 72,770,739
8.2%
Net Position - 5 Year Trend
$1,000,000,000
$950,000,000
$900,000,000
$850,000,000
$800,000,000
I
$750,000,000
$700,000,000 L I
$650,000,000 u
$600,000,000
$550,000,000
$500,000,000
2019 2020 2021 2022 2023
■ Net Investment in Capital Assets ■ Restricted i Unrestricted
L
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 234 of 271 4
Page 115 of 117
Attachment 3
0
ACFR Highlights
Revenues, Expenses
& Changes
in
Net Position
- Two Year
Comparison
$Increase
%Increase
June 30, 2023
June 30, 2022 (Decrease)
(Decrease)
Total revenues
$ 100,296,021
$ 145,305,739 $ (45,009,718)
-31.0%
Total expenses
113,330,918
104,698,580 8,632,338
8.2%
Income before capital contributions
(13,034,897)
40,607,159 (53,642,056)
-132.1%
Capital contributions
85,805,636
24,148,455 61,657,181
255.3%
Increase in net position
72,770,739
64,755,614 8,015,125
12.4%
Beginning net position
890,244,841
825,489,227 64,755,614
7.8%
Ending net position
$ 963,015, 880
$ 890,244,841 $ 22,770,739
8.2%
ACFR Highlights
Total Revenues by Category -
Last 5 Fiscal Years
$200,000,000
$180,000.000
$160,000,000 -
$140,000,000
$120,000,000
$100,000,000
$80,000,000
$60,000,000
$40,000,000 -
$20,000,000
$-
2019 2020 2021 2022 2023
■ Operating Revenue ■ Non -Operating Revenue
10
IPA,
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 235 of 271 5
Page 116 of 117
Attachment 3
ACFR Highlights
Total Revenues & Expenses
5 Year Trend -
$200,000,000
$180,000,000
$160,000,000
$140,000,000
$120,000,000
$100,000,000
$80,000,000 i
$60,000,000
$40,000,000
$20,000,000
$-
2019 2020 2021 2022 2023
■ Total Revenue ■ Total Expenses
11
ACFR Highlights
Capital Assets, Net of
Depreciation
Year Ending June 30
2023 vs. 2022
$Increase
% Increase
2023
2022
(Decrease)
(Decrease)
Structures, buildings, and
equipment
$700,065,619
$694,343,750
$5,721,869
0.8%
Land and rights of way
22,585,007
22,582,507
2,500
0.0%
Construction in progress
126,762,525
95,818,652
30,943,873
32.3%
Total
$849,413,151
$812,744,909
$36,668,242
4.5%
12
!W
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 236 of 271 6
Page 117 of 117
Attachment 3
0
G FOA Award
Certificate of Achievement for Excellence in
GoariomeurFm OMAssociation
Certificate of
Financial Reporting
Achievement
for Excellence
Applied for annually with GFOA
in Financial
Reporting
Received award for FY 2021-22 ACFR in
August 2023
23rd consecutive year receiving award
Central Contra Costa Sanitary District
California
Intend to apply for award for FY 2022-23
F�.
ACFR
For tte Fi-I Yex Ended
Iuve 30, 2022
6W_OD
Exe�v¢ve pueemefEO
13
14
November 27, 2023 Special FINANCE Committee Meeting Agenda Packet - Page 237 of 271 7