HomeMy WebLinkAbout03.d. Annual Comprehensive Financial Report (ACFR) FY ended June 30, 2024; Independent Auditors' Memorandum on Internal ControlPage 1 of 114
Item 3.d.
BOARD OF DIRECTORS
POSITION PAPER
MEETING DATE: NOVEMBER 19, 2024
SUBJECT: REVI EW DRAFT POSITION PAPER TO ACCEPT (1) THE ANNUAL
COMPREHENSIVE FINANCIAL REPORT (ACFR) FOR THE FISCAL
YEAR ENDED JUNE 30, 2024 AUDITED BY MAZE & ASSOCIATES, AND (2)
THE INDEPENDENT AUDITORS' MEMORANDUM ON INTERNAL CONTROL
AND REQUIRED COMMUNICATIONS FOR THE FISCAL YEAR ENDED
JUNE 30, 2024
SUBMITTED BY:
INITIATING DEPARTMENT:
KEVIN MIZUNO, FINANCE MANAGER ADMINISTRATION -FINANCE
REVIEWED BY: PHILIPLEIBER, DEPUTYGM -ADMINISTRATION
ROGER S. BAILEY, GENERAL MANAGER
ISSUE
The audited ACFR of Central San for the Fiscal Year ended June 30, 2024, and the independent auditors'
memorandum on internal control and required communications for the year ended June 30, 2024, 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, 2024, 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, 2024, expresses an unmodified (clean) opinion, as outlined on page 1 of the attached
ACFR (Attachment 1).
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In accordance with Califomia Govemment 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, 2024, will be remitted electronically by the January 31, 2025, 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.
In 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 $72.4 million or 7.5 percent to a total of $1.035 billion
as of June 30, 2024. The bulk of this net position, or 82.9 percent, is attributable to Central San's net
investment in capital assets, largely due to its extensive network of sewage collection and treatment plant,
and recycled water plant infrastructure. Non -operating revenues and expenses, which includes items such
as secured ad valorem property taxes and investment income, increased net position by $35.7 million.
Capital contributions for the fiscal year 2023-24 increased net position by $68.8 million, and were partially
offset by a $32.2 million decrease in net position resulting from operating losses. The increase in net
position is most reflected in an increase in net investment in capital assets of $77.5 million, or 9.9 percent,
over the prior year.
GFOA Award Program
The Government Finance Officers Association (GFOA) is a professional association of state/provincial
and local finance officers in the United States and Canada and has served the public finance profession
since 1906. The GFOA established the Certificate of Achievement for Excellence in Financial Reporting
Program in 1945 to encourage and assist state and local governments to go beyond the minimum
requirements of Generally Accepted Accounting Principles (GAAP) issued by the Government
Accounting Standards Board (GASB), and to prepare an ACFR that provides transparency and full
disclosure, and then recognize individual governments that succeed in achieving that goal.
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On July 25, 2024, 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, 2023, representing
the 24th 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. I n order to be
awarded a Certificate of Achievement, a government agency must publish an easily readable report in a
prescribed format report that complies with GAAP, 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, 2024. 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 19, 2024, Special Finance Committee meeting, but prior to the
forthcoming Board acceptance meeting in December 2024. Accordingly, the ACFR is clearly marked
"draft" and the audit opinion letter commencing on page 1 of the ACFR is unsigned at this time.
Additionally, three pages in the draft ACFR included with the agenda packet were incomplete at the time
the agenda packet was finalized with the attached ACFR, which are highlighted in yellow. It is emphasized
that these three incomplete pages are located solely in the statistical section of the ACFR, which are un-
audited sections as outlined in the audit opinion letter. The replacement sheets for these three specific
pages will be provided as handouts for the November 19, 2024 Finance Committee meeting:
1. Ten Largest Customers (pg. 68)
2. Ratios of Outstanding Debt (pg. 71)
3. Demographic and Economic Statistics (pg. 73)
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, 2024, 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
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Page 4 of 114
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 J une 30, 2025.
COMMITTEE RECOMMENDATION
The Finance Committee reviewed this matter at its meeting on November 19, 2024, 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, 2024.
Strategic Plan Tie -In
GOAL FOUR: Governance and Fiscal Responsibility
Strategy 3 - Maintain financial stability and sustainability
ATTACHMENTS:
1. Annual Comprehensive Financial Report
2. Memo on Internal Control
3. Presentation
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 110 of 230
CENTRAL CONTRA COSTA SANITARY DISTRICT
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Page 6 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
MARTINEZ, CALIFORNIA
ANNUAL COMPREHENSIVE FINANCIAL REPORT
FOR THE YEAR ENDED JUNE 30, 2024
WITH SUMMARIZED COMPARATIVE INFORMATION FOR THE
YEAR ENDED JUNE 30, 2023
Nk I
Prepared By: Finance Division
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 112 of 230
Page 7 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
Annual Comprehensive Financial Report Table of Contents
For the Year Ended June 30, 2024
h Y Y:ZI] 1111111 CI] "Alai I111 Y ICI]► R
Letterof Transmittal.......................................................................................................................... i
Boardof Directors.......................................................................................................................... viii
MissionStatement............................................................................................................................ ix
OrganizationChart............................................................................................................................ x
Mapof Service Area......................................................................................................................... xi
Certificateof Achievement............................................................................................................. xii
FINANCIAL SECTION:
IndependentAuditors' Report......................................................................................................... 1
Management's Discussion and Analysis..........................................................................................
5
Basic Financial Statements
Statement of Net Position............................................................................................
12-13
Statement of Revenues, Expenses and Changes in Net Position.....................................15
Statement of Cash Flows.............................................................................................
16-17
Notes to Financial Statements - The accompanying notes are an
integral part of the basic financial statements............................................................
19-51
Required Supplementary Information
Cost -Sharing Multiple Employer Defined Benefit Retirement Plan - Schedule of
Proportionate Share of Net Pension Liability (Asset) ..................................................
53
Schedule of Contributions.................................................................................................
54
Post -Retirement Health Care Defined Benefit Plan -
Schedule of Changes in the Net OPEB Liability and Related Ratios ................................
55
Schedule of Contributions.................................................................................................
56
Supplementary Information
Combining Schedule of Net Position.................................................................................
58
Combining Schedule of Revenues, Expenses and
Changes in Net Position - Enterprise Sub-Funds.............................................................
59
STATISTICAL SECTION (Unaudited):
Changes in Net Position and Statement of Net Position -
LastTen Fiscal Years....................................................................................................................
63
Revenue by Type - Last Ten Fiscal Years......................................................................................
64
Operating Expenses by Type - Last Ten Fiscal Years...................................................................
65
Major Revenue Base and Rates - Historical and Current Fees -
LastTen Fiscal Years....................................................................................................................
66
Assessed and Estimated Actual Valuation of Taxable Property -
LastTen Fiscal Years....................................................................................................................
67
Property Tax and Sewer Service Charge Fees Levied and Collected -
LastTen Fiscal Years....................................................................................................................
67
Sewer Service Charge - List of Ten Largest Customers -
LastTen Fiscal Years....................................................................................................................
68
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Payments Under the Concord Agreement -
LastTen Fiscal Years....................................................................................................................
69
Active Service Accounts and Fiscal Year Billings -
SewerService Charges.................................................................................................................
69
Summary of Debt Service - Type, Debt Service Coverage, Debt Ratio -
LastTen Fiscal Years....................................................................................................................
70
Ratios of Outstanding Debt - Debt as a Percentage of Per Capita Personal Income -
LastTen Calendar Years...............................................................................................................
71
Demographic and Economic Data - Population Served -
Last Ten Calendar Years...............................................................................................................
72
List of Nine Largest Employers in Contra Costa County -
LastYear and Eight Years Ago.....................................................................................................
72
Demographic and Economic Statistics - Contra Costa County -
LastTen Fiscal Years....................................................................................................................
73
Full-time Equivalent Positions Filled by Department -
LastTen Fiscal Years....................................................................................................................
74
Number of Retirees and Surviving Spouses -
LastTen Fiscal Years....................................................................................................................
74
Capital Asset and Operating Statistics -
Last Ten Calendar or Fiscal Years...............................................................................................
75
MicrPllnnarnic Ctntictirc
75
'V
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L0101 DI I In 110
Page 10 of 114
LCENTRAL SAN
November 19, 2024
Central Contra Costa Sanitary District Customers and
The Honorable Board of Directors,
Martinez, California:
California Government Code section 26909 requires an audit to be completed and filed with the
California State Controller's Office within twelve months after the close of the fiscal year. This report is
published to fulfill that requirement for the fiscal year ended June 30, 2024 (FY 2023-24).
Management of Central Contra Costa Sanitary District (the District) assumes full responsibility for the
completeness and reliability of the information in these financial statements, based upon a
comprehensive system of internal controls that is established for this purpose. T he cost of internal
control should not exceed anticipated benefits, and therefore the objective is to provide reasonable,
rather than absolute, assurance that the financial statements are free of any material misstatements.
The District's independent auditors, Maze & Associates, has issued an unmodified ("clean") opinion on
the District's financial statements for the year ended June 30, 2024. The independent auditors' report
is located at the front of the financial section of this report.
Management's Discussion and Analysis report (MD&A) immediately follows the independent auditors'
report and provides a narrative introduction, overview, and analysis of the basic financial statements.
The MD&A complements this letter of transmittal and should be read in conjunction with it.
PROFILE OF THE GOVERNMENT
History and Services Provided
The District was established in 1946 under the Sanitary District Act of 1923 and is located
approximately 30 miles east of San Francisco. The District builds, operates and maintains the facilities
required to collect and clean wastewater for approximately 351,000 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
132,000 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 diligent long-range financial planning and managing costs responsibly. The District has
approximately 1,500 miles of sewer pipeline, ranging in size from 4 inches to 102 inches in diameter,
and 18 sewage -pumping stations (three of which are privately owned) in the
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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 generating over eighty percent of total Sewer
Service Charges operating revenues. 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, with the need for enhanced capital
expenditures to replacing aging infrastructure and meet regulatory requirements for enhanced nutrient
removal. This is demonstrated by the issuance of $50.6 million in certificates of participation in June
2021 and up to an anticipated $173.1 million in California Water Board State Revolving Fund loan
proceeds to finance a large solids handling facility improvements project. 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 collaboration with Contra Costa Water District,
that provides high -quality recycled water for landscape irrigation at schools, parks, playgrounds,
median strips and playing fields, as well as dust control and industrial process uses. Due to strong
customer demand, the District maintained operation of A4 Residential Recycled Water Fill Station,
which allows residential customers to obtain a maxi;0h
f 300 gallens of recycled water per trip for
use in hand watering lawns, landscaping, and garden District also actively pursues new recycled
water expansion opportunities to take advantage of the potential water supply that highly -treated
wastewater represents, particularly given California's limited water supply. The District has been
collaborating with public water agency partners to jointly invest in a project that will enable the District
to comply with future nutrient discharge regulations while producing a new water supply to help ease
the region's water shortage. The District recently executed a Memorandum of Understanding with East
Bay Municipal Utility District (EBMUD) that will evaluate several potential recycled water projects
together, including an option for potable reuse - introducing highly -treated recycled water into
EBMUD's drinking water supplofFhe District,continues to actively promote water recycling, given the
role this would have in addre the statewide water shortage and the developing effects of climate
change.
In addition to its responsibility to collect and treat wastewater, the District also undertakes pollution
prevention initiatives through the operation and maintenance of a permanent Household Hazardous
Waste (HHW) Collection Facility in partnership with Mt. View Sanitary District and other local
governments. The HHW Collection Facility is located adjacent to the District's wastewater treatment
plant and seeks to keep pollutants out of the sewer system, making this facility a vital part of our overall
Pollution Prevention Program. Having completed its 27th year of operation, the HHW Facility served
over 32,000 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 2023-24. In conjunction with its HHW program, the District's Pharmaceutical Collection
Program further encourages pollution prevention having approximately 1,900 pounds of expired or
unwanted medications between its four collection sites in FY 2023-24.
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
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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 Board members were 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 279 permanent regular full-time employees at
fiscal year-end out of 298 authorized permanent regular full-time positions for that fiscal year. These
employees are organized into three departments steered by an Executive Governance unit. Two Deputy
General Managers direct Central San's management team, which is responsible for the budgets and
expenses of all divisions and programs that comprise Central San's three operational departments. The
three departments are: Administration, Engineering and Technical Services, and Operations.
The District charges fees to its customers for providing sewer collection and treatment services, which
are the primary operational revenue source. Accordingly, pursuant to generally accepted accounting
principles issued by the Governmental Accounting Standards Board (GASB), the District uses full
accrual enterprise fund accounting to account for its operations, which is similar, though not identical,
to private industry. The District currently has one enterprise fund for financial reporting purposes,
which is comprised of the following four internal sub -funds for internal accounting purposes:
• Running Expense - accounts for the general operations of the District. Substantially all
operating revenues and expenses are accounted for in this fund (also referred to as the
Operations & Maintenance or "O&M" Fund).
• Sewer Construction - accounts for non -operating revenues that are to be used for acquisition
or construction of plant, property, and equipment (also referred to as the "Capital Fund").
• Self -Insurance - accounts for interest earnings on cash balances in this sub -fund and cash
allocations from other funds, as well as costs of insurance premiums and claims not covered by
the District's insurance policies.
• Debt Service - accounts for activity associated with the payment of the District's long-term
bonds and loans.
Each year, the Board adopts the following four budgets: Operations and Maintenance, Capital
Improvement (i.e. Sewer Construction), Self -Insurance, and Debt -Service. The Board and Finance
Committee review interim financial reports on a quarterly basis for fiduciary purposes, with
management receiving more detailed monthly budget -to -actual results for budget monitoring
purposes. District management 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.
ASSESSING THE DISTRICT'S ECONOMIC CONDITION
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
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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
recession scenario, which if it does occur, could lead to revenues coming in $30 to $50 billion below the
outlook projections. The State currently has roughly enough in reserves ($23 million) to cover the
budget deficit, but not if a recession occurs. The LAO is recommending a pause in budget allocations to
one-time and temporary programs to reduce spending. A key assumption in the multiyear outlook is
that estimated revenues are expected to decline in the short-term, then stabilize and remain largely flat
between FY 2023-2024 and FY 2024-25, and then grow again in FY 2025-26 through 2026-27 after the
effects of inflation and corresponding Federal Reserve rate hikes subside.
According to the California Employment Development Department (EDD), the Contra Costa County
unemployment increased from 4.1% in September 2023 to 4.8% in September 2024. This combination
of high interest rates and increasing unemployment could lead to slower than normal economic growth
in the local economy, which may slightly adversely impact permit and capacity fee revenues related to
development, as well as consumption based commercial sewer service charges.
Long -Term Financial Planning
The District strives to maintain an excellent reputation in providing public service, which includes
transparent and accessible governance, financial reporting and management, sewage collection and
treatment, workforce safety, capital improvements and replacements, innovative use of technology, and
customer service. The Board of Directors approved a four-year sewer service charge rate adjustment
schedule in April 2019 spanning July 2019 through Jupe 2023. The foMr-year sewer service charge rate
increases ranged from 4.75% to 5.25% annually, subject to a Board review for continued necessity prior
to the start of each fiscal year. The planned increases are a critical component of implementing the
treatment plant and collection system capital 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 2023-24 and 2024-25, with overall Sewer Service Charge rates increasing by
1% and 4%, respectively, for single family residential customers. Other customer classes faced differing
rate adjustments in the first year, the same 4% increase for the second year, as a result of a cost of
service study.
As noted previously, in conjuncts wi he approved sewer service charge rates, the District's latest
10-year financial plan anticipates th panded use of debt financing to address major capital spending
projects including upgrades to the UV disinfection system, solids handling, and nutrient removal
infrastructure needs. While the District's FY 2024-25 capital budget is only increasing by approximately
$9.5 million (13.4%) over the prior year's adopted budget to $80.7 million, the long-term financial plan
forecasts capital spending in excess of $100 million in each of the following five fiscal years
consecutively thereafter. The long-term financial plan strives to carefully balance capital financing with
modest customer rate increases to achieve long-term rate stability and inter -generational equity while
responding to a growing list of long-term challenges (i.e., ageing infrastructure, growing capacity needs,
and new regulations).
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District management analyzes and updates a strategic plan every two years, with the seven goals in
effect during FY 2023-24 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 equipment to be dependable resilient,
and long lasting, and
7. Innovation & Agility - Optimize operations for continuous improvement and remain
flexible and adaptable.
Strategies to achieve each of these seven goals are developed, as well as metrics to evaluate success.
Performance on achievement of the goals in the plan is reported quarterly to the Board. The District
updates a 10-year financial plan each year prior to the completion, presentation, and adoption of the
annual budget. The main economic factors considered in this long-term forecasting exercise are: the
impact of state legislation and mandates, regulatory compliance, GASB reporting requirements,
negotiated labor contract terms (including projected changes in retirement and health care costs),
energy costs and interpreting the energy market, interest rates, housing growth, and infrastructure
renewal and replacement needs. The unfunded actuarial accrued liabilities (UAAL) for the District's
pension and other post -employment benefit (OPEB) plans are also considered in the financial
planning process. Pursuant to the most recently issued independent actuarial reports, the District
had a strong funded net position as a percentage of total pension liability in both its pension and
OPEB plans of approximately 92.9% (as of the December 31, 2023 measurement date) and 107.8%
(as of the June 30, 2024 measurement date) respectively. These plan funded statuses are carefully
monitored as the District's pension and OPEB funding policies set targets of proactively achieving fully
funded status, which is considered in each long-term financial plan update.
The District anticipates 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 2023-24, utilizing budgetary
savings from the prior year, the District Board directed an additional $1 million be contributed to the
pension pre -funding trust as a mechanism to hedge against recent actuarial results showing a slight
growth in the pension plan UAAL following losses realized in calendar year 2022. Section 53646 of
the California Government Code governs the District's investment practices, with changes in
legislation being considered in the Board's annual review of District investment policies.
Additionally, the Board receives quarterly financial reports that include budgetary highlights as well
as investment portfolio reports. The OPEB trust and the Section 115 pension prefunding trusts are
governed by separate investment policies. Since 2008, the OPEB trust fund have been invested using
a "moderate" investment strategy, reflecting the relatively long-term horizon for use of the funds. In
contrast, the pension prefunding trust funds are invested using a "moderately" conservative strategy,
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reflecting its relatively shorter -term outlook as a secondary trust to the primary plan administered
by the pension administrator. 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 pension pre -funding trust performance on a quarterly basis.
Major Initiatives
The District's vision statement in effect during FY 2023-24 was to be an innovative industry leader in
environmental stewardship and sustainability, while delivering exceptional service at responsible rates.
As noted previously, the Board and its appointed management team strives to achieve this vision
through the establishment of a strategic plan that establishes seven overarching goals, each with
their own specific underlying strategies, initiatives, and key success measures.
The District has received the Platinum award from the National Association of Clean Water Agencies
(NACWA) for 26 straight years in recognition of 100% compliance with our National Pollutant
Discharge Elimination System (NPDES) permit. It has also reduced the number of sanitary sewer
overflows by more than 90% in the past 20 years by improved sewer cleaning and a robust sewer
rehabilitation program.
As described previously, the District reviews and adopts a Strategic Plan every two years. In FY 2021-
22, the District Board and Management developed a new Strategic Plan for FY 2022-23 and FY 2023-
24, which was completed and adopted by the Board in the Spring of 2022, immediately prior to the
adoption of the FY 2022-23 budget. The District continues to analyze current and future rates, costs,
and cash flows to ensure consistency with its cost of service studies, with the most recent study
having been completed in the Spring of 2023. t
j�
To effectively manage assets to meet future state and federal regulatory requirements, the District
initiated an Asset Management Program and the preparation of a Comprehensive Wastewater
Management Plan to evaluate options for addressing future regulatory requirements. The latest
Management Plan was completed in FY 2016-17 and is intended to be used as a roadmap for capital
improvements over the next two decades. Individual projects are proposed in an annual capital
improvement budget and brought to the Board for approval prior to the start of the year.
Additionally, to facilitate more streamlined contracting and approval process for smaller capital
projects, the Board adopted the Uniform Construction Cost Accounting Act (UPCCA) in May 2018.
The District will be focusing on meeting the nutrient management requirements adopted by the
State of California Regional Water Control Board for the San Francisco region in July 2024. The
newly adopted regulation requires a substantial 40% reduction in nutrient discharges by the
publicly owned treatment works, including Central San, discharging effluent into the Bay by 2034,
with interim caps and limits until that date. The District intends to develop a plan to meet these
requirements in the next one to two years, indicating the technologies to be relied up to achieve
these requirements.
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, 2023. This was the 24th
consecutive year that the District has achieved this prestigious award. Recipients of the award must
publish an easily readable and efficiently organized ACFR satisfying both generally accepted
accounting principles and applicable legal requirements. The Certificate ofAchievementfor Excellence
in Financial Reporting is valid for a period of one year only. Management is confident the current
November 19, 2024 Regular FINANCE Committee Meting Agenda Packet - Page 121 of 230
Page 16 of 114
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: Brennan Rogers, Accounting Supervisor; Tricia Cruz, Accountant; Diana Diaz,
Accountant; and Amal Lyon, Management Analyst.
• The Communications & Intergovernmental Affairs Division who creatively and professionally
edited this the ACFR for publication.
• Dedicated staff in the Financial Planning, Household Hazardous Waste and Plant Operations
workgroups who provided much of the statistical information included in this document.
• The District's Board of Directors and Management team for their support in preparing this
document as well as their day-to-day support in overseeing the financial operations of the District
in a prudent and responsible manner.
Respectfully submitted,
Philip Leiber, CPA T. Kevin Mizuno, CPA
Deputy General Manager of Administration Fii%nce Manager
IF
November 19, 2024 Regular FINANCE Committee MgA-ing Agenda Packet - Page 122 of 230
Page 17 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT BOARD OF DIRECTORS
June 30, 2024
Mariah N. Lauritzen............................................................................................... President
Michael R. McGill................................................................................... President Pro-Tem
Barbara D. Hockett.................................................................................................. Member
Tad J. Pilecki
Florence T. Wedington
Member
Member
November 19, 2024 Regular FINANCE Committee M".ipg Agenda Packet - Page 123 of 230
-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 in environmental
stewardship and sustainability, while delivering exceptional
service at responsible rates
OUR VALUES
Our core values guide our daily decisions and how we fulfill
our mission, vision, and goals
• CUSTOMER SERVICE
We are responsive to our customers, and we
deliver on our commitment to provide safe,
reliable, and cost-efficient services.
EMPLOYEES
We empower our employees to do their best
work.
W7NTEGRITY A
We hold ourselves accountable to a
high standard of honesty, reliability, and
transparency.
• INNOVATION
We continuously improve and optimize our
operations.
ENVIRONMENTAL SUSTAINABILITY
We conduct our business to safeguard and
improve our planet.
I
all backgrounds,
Actives, and we are
•inciples of equity and
Page 19 of 114
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November 19, 2024 Regular FINANCE Committee Meting Agenda Packet - Page 125 of 230
Page 20 of 114
Central Contra Costa Sanitary District Service Area
J u ne 30, 2024 Date: 10/25/2023
Benicia
San Suisun
Pablo
Bay i
Berkeley
Ilk
ow
4 Pittsburg
4)
Martindz • j
Antioch
Concord
Pleasant Hill
Clayton
K0
n Orinda
Walnut Cree
Lafayette
Moraga
0 I \
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 351,379 people
Wastewater treatment and HHW collection for
132,196 residents in Concord and Clayton by
contract
HHW disposal services only
Danville
a
San Ramon
0�
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
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
0 Pump or Lift Station 0
OPrivately Owned Pump Station
2 4 A
� II
Miles ^'
November 19, 2024 Regular FINANCE Committee Meting Agenda Packet - Page 126 of 230
Page 21 of 114
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
L V-M d
Presented to
Central Contra Costa Sanitary District
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
November 19, 2024 Regular FINANCE Committee Mexq�ing Agenda Packet - Page 127 of 230
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Page 23 of 114
[)/A\ M A Z E
&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, 2024, 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, in all material respects, the respective
financial position of the business -type activities of the District as of June 30, 2024, and the change in financial
positions and, cash flows thereof for the years then ended in accor ce with accounting principles generally
accepted in the United States of America.
I
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America.
Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the
Financial Statements section of our report. We are required to be independent of the District and to meet our other
ethical responsibilities, in accordance with the relevant ethical requirement relating to our audit. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the 'na Statements
Management is responsible for the aration nd air presentation of these financial statements in accordance with
accounting principles generally acce in the United States of America; and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the District's ability to continue as a going concern for
twelve months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
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.
Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
T 925.228.2800
e maze@mazeassociates.com
w mazeassociates.com
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 129 of 230
Page 24 of 114
In performing an audit in accordance with generally accepted auditing standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the District's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the financial
statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that
raise substantial doubt about the District's ability to contin as a going concern for a reasonable period
of time.
We are required to communicate with those charged with governance reg ng, among other matters, the planned
scope and timing of the audit, significant audit findings; and certain in emal control -related matters that we
identified during the audit.
Report on Summarized Comparative Information
We have previously audited the District's June 0�23 ncial statements, and we expressed an unmodified audit
opinions on those audited financial statements in our report dated November 29, 2023. In our opinion,
the summarized comparative information presented herein as of and for the year ended June 30, 2023 is consistent,
in all material respects, with the audited financial statements from which it has been derived.
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.
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 130 of 230
Page 25 of 114
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the District's basic financial statements. The accompanying Supplementary Information, as listed in the Table of
Contents, is presented for purposes of additional analysis and is not a required part of the basic financial statements.
Such information is the responsibility of management and was derived from and relates directly to the underlying
accounting and other records used to prepare the basic financial statements. The information has been subjected to
the auditing procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other records used
to prepare the basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In our
opinion, the Supplementary Information is fairly stated, in all material respects, in relation to the basic financial
statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information comprises
the Introductory Section and Statistical Section listed in the TaNnformation
ents, but does not include the basic
financial statements and our auditor's report thereon. Our opiniosic financial statements do not cover
the other information, and we do not express an opinion or any foce thereon.
In connection with our audit of the basic financial statemen ury is to read the other information and
consider whether a material inconsistency exists between the othe and the basic financial statements, or
the other information otherwise appears to be materia#y misstated. If, based on the work performed, we conclude
that an uncorrected material misstatement of the other iliformation exists, we are required to describe it in our report.
Pleasant Hill, California
November 19, 2024
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 131 of 230
Page 26 of 114
This Page Left to y Blank
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 132 of 230
Page 27 of 114
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, 2024 (2023-24). This
information is presented in conjunction with the audited financial statements, which follow this report.
FINANCIAL HIGHLIGHTS
The District's 2023-24 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 $72.4 million or 7.5% in 2023-24. The
increase in net position is largely reflected in the increase in net investment in capital assets
of $77.5 million. Total changes in deferred inflows, outflows, assets and liabilities related
to post retirement and pension benefits resulted in a d crease in net position of $6.0
million. Changes in these balances are highly sitiveQNortfolio performance and
actuarial assumptions regarding future invest t morns.
7
Total operating revenue, excluding capital contributions, increased by $17.8 million or 25.5%
in 2023-24. This increase is directly attributable to a higher apportionment of sewer
service charges to operating revenues; 56.0% allocated to operating revenues in 2023-
2024 compared to 41.1% in 2022-2023. The change in allocation was directed by the
Board in contemplation with the reappropriation of reserves for the sewer construction
fund budget for 2023-2024.
r
Total 2023-24 operatin expenses, excluding depreciation and amortization, increased by
$5.8 million or 6.7%. The overall increase in operating expenses is mainly driven by an
increase in salaries and benefits expenses of $2.7 million in addition to an increase in
contracted services expenses of $1.4 million.
• Capital Contributions decreased in 2023-24 by $17.0 million or 19.8%. The decrease is
mainly due to a reduced allocation of sewer service charges to finance the capital program,
as noted previously. To a lesser extent, the decrease was also driven by reduced capacity
fees and partially offset with an increase in contributions from the City of Concord for its
share of capital project costs eligible for cost sharing.
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 133 of 230
Page 28 of 114
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 the accompanying
footnotes to the financial statements. This report also contains other supplementary information in addition
to the basic financial statements themselves.
In accordance with the GASB Codification of Governmental Accounting and Financial Reporting Standards,
the District's annual financial balances and transactions are summarized and reported in the following
financial statements:
• Statement of Net Position - reports the District's current financial resources (short-term
spendable resources) with capital assets, deferred outflows of resources, long-term obligations, and
deferred inflows of resources.
• Statement of Revenues, Expenses and Changes in Net Position - reports the District's operating
and non -operating revenues by major source along with operating and non -operating expenses and
capital contributions.
Statement of Cash Flows - reports the District's cash flows from operating activities, non -capital
financing activities, capital and related financing activities, investing activities, and non -cash
activities.
0
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 134 of 230
Page 29 of 114
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
Year Ending June 30
2024 vs. 2023
2024 vs. 2022
$ Increase
% Increase
$ Increase
% Increase
2024
2023
2022
(Decrease)
(Decrease)
(Decrease)
(Decrease)
$ 232,403,524
$ 219,378,496
$ 174,679,739
$ 13,025,028
5.9%
$ 57,723,785
33.0%
920,070,698
849,413,151
812,744,909
70,657,547
8.3%
107,325,789
13.2%
11,087,504
5,412,595
59,093,444
5,674,909
104.8%
(48,005,9401
-81.2%
1,163,561,726
1,074,204,242
1,046,518,092
89,357,484
8.3%
117,043,634
11.2%
54,258,588
78,754,514
122,427,550
(24,495,926)
-31.1%
(68,168,962)
-55.7%
743,072
5,100,448
8,302,309
(4,357,376)
-85.4%
(7,559,237)
-91.0%
55,001,660
83,854,962
130,729,859
(28,853,302)
-34.4%
(75,728,199)
-57.9%
37,280,350 25,281,001
95,855,515 104,306,325
133,13 5,865 129, 587, 326
39,519,504 52,931,043
7,172,709 8,555,091
3,364,942 3,970,164
50,057,155 65,456,298
27,956,046
11,999,349
47.5%
72,665,537
(8,450,810)
-8.1%
100,621,583
, 3,548,539
2.7%
179,778,9
3,411,539
-25.3%
2,087,
1,382,382)
-16.2%
4,514,63
(605,222)
100.0%
*J81,527 X,399,143) 23.5%
9,324,304 33.4%
23,189,978 31.9%
32,514,282 32.3%
(140,259,439) -78.0%
5,084,763 243.5%
(1,149,696) 100.0%
(136,324,372) -73.1%
Net position
Net investment in capital assets
857,800,710
780,344,1 747,646,783
77,456,565
9.9%
110,153,927
14.7%
Restricted
7,570,428
15 53,543,803
7,416,988
4833.8%
(45,973,375)
-85.9%
Unrestricted
169,999,228
182, 995 89,054,2SS
(12,518,767)
-6.9%
80,944,973
90.9%
Total net position
$ 1,035,370,366
$ 963,0 0 $ 890,244,841
$ 72,354,786
7.5%
$ 145,125,525
16.3%
Total net position of the District increase%iori *963.0 million in 2022-23 to $1,035.4 million in 2023-24, an
increase of 7.5%. This represents an increase of $145.1 million, or 16.3% when compared to 2021-22. Total
assets increased $89.4 million or 8.3% compared to 2022-23 and increased $117.0 million or 11.2%
compared to 2021-22. Total liabilities increased $3.5 million or 2.7% compared to 2022-23 and increased
$32.5 million or 32.3% compared to 2021-22.
The increase in net position over the two-year period totaling $145.1 million is a result of pension -related
actuarially determined deferred inflows decreasing from $179.8 million in 2021-22 to $39.5 million in 2023-
24; a decrease in deferred inflows increases net position. Additionally, over the same timeframe, the District
received $154.6 million in capital contributions, mostly through the allocation of sewer service charges to
the capital improvement program, which largely drove the increase in current and capital assets reported
previously. Conversely, over the same timeframe, the District reported a reduction in deferred pension
related outflows of $68.2 million and a $90.1 million reclassification of its net pension asset to a net liability.
As a public utility relying heavily on a complex infrastructure network, the largest portion of the District's
net position by far (82.8%) 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 and/or
construct those assets that is still outstanding. The District uses these capital assets to provide wastewater
treatment, collection, and other services to its customers, and consequently, these assets are not available
for future spending. Although the District's investment in its capital assets is reported net of related debt,
the funds needed to repay this debt must be provided from other sources, since the capital assets themselves
7
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 135 of 230
Page 30 of 114
are not available to discharge these liabilities. The balance of $170.0 million in unrestricted net position
reflects a decrease of $11.2 million from 2022-23 and an increase of $80.9 million from 2021-22. As noted
previously, this increase was primarily attributable to a decrease in pension related deferred inflows offset
by an increase in the net pension liability.
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
2024 vs. 2023
2024 vs. 2022
$Increase
% Increase
$Increase
% Increase
2024
2023
2022
(Decrease)
(Decrease)
(Decrease)
(Decrease)
Revenues
Operating revenues
Sewer service charges
$ 85,630,995
$ 67,758,217
$ 116,767,447
$ 17,872,778
26.4%
$ (31,136,452)
-26.7%
Other
2,199,774
2,233,077
2,164,237
(33,303)
-1.5%
35,537
1.6%
Total operating revenue
87,830,769
69,991,294
118,931,684
17,839,475
2S.S%
(31,100,915)
-26.2%
Non -operating revenues
Property taxes
24,085,643
22,933,224
21,239,420
1,152,419
5.0%
2,846,223
13.4%
Permit and inspection fees
2,114,590
2,042,467
2,308,395
72,123
3.5%
(193,805)
-8.4%
Investmentearnings
7,840,231
4,125,473
772,909
3,714,758
90.0%
7,067,322
914.4%
Other
1,648,273
1,203,563
2,053,331
444,710
36.9%
(405,058)
-19.7%
Total non -operating revenue
35,688,737
30,304,727
26,374,055
5,384,010
17.8%
9,314,682
35.3%
Total revenues
123,519,506
100,296,021
145,305,739
23,223,485
23.2%
(21,786,233)
-15.0%
Expenses
Operating expenses, excluding
depreciationa and amortization
92,947,514
87,150,184
79,894,599
5,797,330
6.7%
13,052,915
16.3%
Depreciation and amortization
26,096,869
25,003,263
22,853,140
1,093,606
4.4%
3,243,729
14.2%
Non -operating expenses
938,783
1,177,471
1,950,841
(238,688)
-20.3%
(1,012,058)
-51.9%
Total expenses
119,983,166
113,330,918
104,698,580
6,652,248
5.9%
15,284,586
14.6%
Income before capital contributions
Capital contributions
Increase in net position
Beginning net position
Ending net position
Revenue
3,536,340 (13,034,897) 40,607,159 16,571,237-127.1% (37,070,819) -91.3%
68,818,446 85,805,636 24,148,455 (16,987,190) -19.8% 44,669,991 185.0%
72,354,786 72,770,739 64,755,614 (415,953) -0.6% 7,599,172 11.7%
963,015,580 890,244,841 825,489,227 72,770,739 8.2% 137,526,353 16.7%
$1,035,370,366 $ 963,015,580 $ 890,244,841 $ 72,354,786 7.5% $ 145,125,525 16.3%
Total operating revenues increased from $70.0 million in 2022-23 to $87.8 million in 2023-24, an increase
of $17.8 million or 25.5%. This represents a decrease of $31.1 million or 26.2% when compared to 2021-22.
Increases and decreases in operating revenue compared to prior years is mostly attributed to the allocation
of sewer service charges between operations and the capital program as determined by the Board through
the annual budget adoption process. Total sewer service charges, whether designated as operating revenue
or capital contributions, have remained relatively stable in comparison. Total sewer service charges were
$118.0 million in 2023-24, $117.3 million in 2022-23, and $111.0 million in 2021-2022, representing an
annualized 3.1% cumulative growth rate from 2023-24 to 2021-2022. This increase is predominantly driven
by modest increases to customer rates and changing rate structures resulting from the District's study of cost
analysis.
Total non -operating revenue increased from $30.3 million in 2022-23 to $35.7 million in 2023-24, an
increase of $5.4 million or 17.8%. This represents an increase of $9.3 million or 35.3% when compared to
2021-22. Investment earnings were the largest driver of the increase over both time periods, with a $3.7
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Page 31 of 114
million increase compared to 2022-23 and $7.1 million increase compared to 2021-22. The increase in
investment earnings is attributable to a higher than normal interest rate environment persisting through the
year paired an increase in working capital reserves with capital spending falling short of the budget over the
past few years. The impact of high interest rates is clearly visible when assessing District's investment yields
which have averaged 5.06%, 4.14%, and 1.06% in 2023-24, 2022-23, and 2021-22 respectively. Secured ad
valorem property taxes levied through the annual county tax roll have also contributed to the increase in
non -operating revenues attributable to an increase in property valuations and development within the
District, generating revenue growth of $1.2 million or 5.0% from 2022-23, and $2.8 million or 13.4% from
2021-22.
Expenses
Total expenses increased from $113.3 million in 2022-23 to $120.0 million in 2023-24, an increase of $6.7
million or 5.9%. This is an increase of $15.3 million or 14.6% when compared to 2021-22. The District
recognized total pension and deferred compensation expenses of $17.5 million in 2023-24 compared to
$16.0 million in 2022-23, an increase of $1.5 million or 9.4%, largely due to increases in the actuarially -
determined pension expense. Salaries, wages, and compensated absences expenses increased by $2.8 million
or 4.5% from 2022-23, largely due to scheduled pay increases previously negotiated cost of living
adjustments with District employee unions and a decreased use of in' -service compensated absence pay -outs
by District employees. These increases were partially offset by a decrease in other post employment benefit
(OPEB) expenses of $0.3 million, as determined by an outside tuary, when compared to 2022-23.
Additionally, contracted services increased by $1.4 million or 13.5% a mpared to 2022-23, largely driven
by consulting and information technology support costs to support ongoing enterprise planning resource
enhancements and other strategic initiatives. A
Income before capital contributions totaled $3.5 million in 20Y23-24, an increase of $16.6 million compared
to 2022-23 and a decrease of $37.1 million as compared to 2021-22. These changes are largely attributable
to the Board -approved split of sewer service charges between operations and capital purposes as mentioned
previously, and changes in actuarially determined pension and OPEB expenses.
AVW
Total capital contributions in 2023-24 decreased to $68.8 million from $85.8 million in 2022-23 but
increased from $24.1 million in 2021-22. As noted previously, these changes are largely attributable to a
change in the allocation of sewer service charges between operating and capital purposes as specified in the
Board -adopted 2023-24 budget. The District has also seen steady increases in other capital contributions
derived from its agreement with the City of Concord for its share of eligible capital project expenses,
generating $11.5 million, $10.0 million, and $7.8 million in 2023-24, 2022-23, and 2021-22, respectively.
With the City of Concord's proportionate share of influent waste remaining stable, these increases in capital
contributions reflect the increased capital spending undertaken by the District.
CAPITAL ASSETS
Net capital assets for fiscal years 2023-24, 2022-23 and 2021-22 totaled $920.1 million, $849.4 million,
$812.7 million, respectively, representing an increase of $70.7 million or 8.3% from 2022-23, and a $107.3
million or 13.2% increase from 2021-22. Net capital assets are mostly comprised of the District's capital
infrastructure including wastewater treatment facilities, sewer pipes, land, buildings, pumping stations,
vehicles, intangible assets, furniture, and equipment, less accumulated depreciation. A comparison of the
District's capital assets, net of accumulated depreciation, over the past three fiscal years is presented below:
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Table 3 - Net Capital Assets
Year Ending June 30
2024 vs. 2023
2024 vs. 2022
$Increase
% Increase
$ Increase
% Increase
2024
2023
2022
(Decrease)
(Decrease)
(Decrease)
(Decrease)
Structures, buildings, and
equipment
$ 714,895,881
$ 700,065,619
$ 694,343,750
$14,830,262
2.1%
$ 20,552,131
3.0%
Land and rights of way
22,596,053
22,585,007
22,582,507
11,046
0.0%
13,546
0.1%
Construction in progress
182,578,764
126,762,525
95,818,652
55,816,239
44.0%
86,760,112
90.5%
Total
920,070,698
849,413,151
812,744,909
70,657,547
8.3%
107,325,789
13.2%
These increases are a result of an expanding capital improvement program to replace aging treatment plant
and collection system infrastructure, address regulatory requirements, and improve the sustainability of
operations and technology. In this timeframe, spending has exceeded depreciation with capital outlays
largely financed through pay-as-you-go resources (i.e., new revenue and reserves) supplemented with loan
proceeds from the Clean Water State Revolving Fund.
The construction in progress balance increases by ongoing capital outlays for existing projects, which have
yet to reach substantial completion. Conversely, this balance decreases by transfers to an appropriate asset
category upon completion. No depreciation expense is recorde r capital assets in the construction in
progress category. Increases to construction in progress show iouSly indicate an excess of spending on
capital projects over project completions, reflecting the mul '- ear ure of the bulk of the District's capital
projects. Major additions to construction in progress for 3� incl the following:
ect Number
Project Description
Capital Outlay
7348
Solids Handling Facility Improvements Ph.1A
$ 26,842,272
B457
Pump Station Upgrades - Ph. 2
10,969,930
5991
Pleasant Hill Sewer Renovation Phase 2
7,102,315
100019
Aeration Basins Diffuser Replacement 4 Seismic Upgrades
5,888,640
100049
Downtawn walnut Creek Sewer Renovation -Locust
5,293,729
7361
Filter Plant & Clear -well Improvements Ph.1A
3,669,152
100015
Electric Blower Improvements
2,618,322
7369
Piping Renovation - Ph. 10
2,413,621
100042
Pump Station Upgrades, Please 2B
1,836,224
7370
Annual Infrastructure Replacement FY 2019-25
1,773,551
Total
$ 68,407,756
Refer to Note 5 in the audited financial statements for additional details on the District's capital assets.
DEBT ADMINISTRATION
Total long-term debt inclusive of unamortized premiums, excluding liabilities related to pension, OPEB and
compensated absences liabilities, for fiscal years 2023-24, 2022-23 and 2021-22 totaled $60.1 million, $67.8
million, and $64.1 million, respectively. As of June 30, 2024, the District's outstanding debt totaled $60.1
million, a decrease of $7.7 million or 11.3% compared to the debt balance of $67.8 million on June 30, 2023.
In 2023-24, the District retired $7.1 million of principal and increased loan borrowings from the Clean Water
State Revolving Fund (SRF) by $0.6 million. The District increased its borrowings from the Clean Water State
Revolving Fund in the current year to reimburse eligible costs for the Solids Handling Facility Improvements
capital project which will be repaid after completion of the project, currently estimated to occur in 2027. The
total amount of approved project costs eligible for reimbursement through the Clean Water State Revolving
Fund are $173.1 million. As of June 30, 2024, the District has received inception -to -date SRF loan proceeds
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totaling $16.2 million and expects a significant increase in borrowings in the near term on this relatively low
interest (0.9% annual) debt. The primary source of funds pledged to and securing the repayment of debt
issuances for the capital improvement program is ad valorem secured property taxes.
The District's ability to obtain flexible, low-cost debt remains paramount to its ability to execute on its long
term plan and deliver reliable services at low costs to its customers. The District continues to maintain high
debt service coverage ratios and other key indicators of financial health after receiving Aa1 and AAA from
Moody's and S&P Global respectively in its most recent bond issuance, which it believes is critical in allowing
the District to access affordable debt to meet its strategic initiatives. Refer to Note 6 for additional
information on the District's outstanding debt obligations.
ECONOMIC FACTORS, NEXT YEAR'S BUDGET, AND RATES
The District operates as an enterprise fund primarily financed 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 replacement and
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.
M' • The economic cycle, creating volatility with capac' connection fee revenues as new development
projects are highly sensitive to the economic cycle. 4,4
• Interest rate and/or investment return, whichlr
rectly impacts investment earnings, borrowing costs,
and employer pension and OPEB contrib> •on uirements.
• Inflation, as measured using the co me rice index (CPI). The CPI for the San Francis co- Oakland -
Hayward area directly impacts he t-of-Iving adjustments provided in the employee labor
agreements. Higher than anticipa n ion may also adversely impact spending for contracted
services, energy, chemicals, fuel, and o er aterials/supplies necessary for wastewater collection and
treatment services.
• Fluctuations in assessed property values and development activity, 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 2024, the
District's Board of Directors adopted an operating and maintenance budget of $96.0 million and sewer
construction capital improvement budget of $80.7 million for the fiscal year ending June 30, 2025. Following
a cost of service study, customer outreach, public noticing, and a public hearing stipulated by Proposition
218, on June 30, 2023 the District's Board of Directors approved new sewer service charges for the two-year
timeframe spanning July 1, 2023 to June 30, 2025. The new sewer service charge rates incorporate an overall
modest rate increase of 1% for the year ending June 30, 2024 and 4% for the year ending June 30, 2025.
As designed in the District's long-term financial plan, steady but controlled sewer service charge rate
increases help prevent spikes in revenue needs from customers in future years when annual capital spending
is expected to significantly, but temporarily, outpace annual revenues. This pay-as-you-go approach, paired
with necessary and responsible debt financing, is designed with the intent of achieving rate stability and
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avoid volatility in the long -run, benefiting both the District and its customers. Primary drivers for the
expansion of the capital improvement program include the need to enhance and modernize the District's
ageing infrastructure to meet new regulatory requirements and ensure the sustainability of its infrastructure
as the region's population grows driving growing demand for service capacity.
FINANCIAL CONTACT
This financial report is designed to provide the District's customers, creditors, and other stakeholders with
a general overview of the District's finances and to demonstrate accountability and transparency for user fee
and taxpayer revenues it receives. If you have questions about this report or need additional financial
information, contact: Kevin Mizuno, Finance Manager, Central Contra Costa Sanitary District, 5019 Imhoff
Place, Martinez, CA 94553.
t
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Central Contra Costa Sanitary District
Statements of Net Position
June 30, 2024 and 2023
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 and material inventory
Total current assets
NON -CURRENT ASSETS
Non -current portion of lease receivable (Note 12)
Assessment Districts receivable (Note 4)
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 resources
2024
$22,537,285
3,622
166,440,000
1,076,737
33,394,216
645,044
465,145
1,297,345
6,544,130
232,403,524
3,053,631
1,543,804
6,490,069
205,174,817
714,895,881
931,158,202
�xo� 1,163,561,726
2023
$23,058,319
1,527
158,640,000
43,662
29,525,698
605,747
429,894
1,273,175
5,800,474
219,378,496
3,618,647
1,642,035
151,913
149,347,532
700,065,619
854,825,746
1,074,204,242
54,258,588
78,754,514
743,072
5,100,448
55,001,660
83,854,962
See accompanying notes to financial statements
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Central Contra Costa Sanitary District
Statements of Net Position
June 30, 2024 and 2023
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Salaries and benefits payable
Interest payable
Provision for uninsured claims (Note 7)
Deposits payable
Compensated absences payable, current (Note 6F)
Current portion of long-term obligations (Note 6)
Current portion of lease payable (Note 12)
Current portion of SBITAs payable (Note 12)
Total current liabilities
NON -CURRENT LIABILITIES
Net pension liability (Note 9)
Non -current portion of long term obligations (Note 6)
Accrued compensated absences - non -current (Note 6F)
Non -current portion of lease payable (Note 12)
Non -current portion of SBITAs 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 resources
NET POSITION (NOTE 11)
2024
23,338,475
1,459,156
1,721,703
1,775,711
242,308
577,172
7,095,000
72,805
998,020
37,280,350
36,556,805
52,998,594
5,194,547
553,033
552,536
2023
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
37,772,326
60,686,014
5,222,146
625,839
95,855,515 104,306,325
133,135,865 129,587,326
39,519,504
52,931,043
7,172,709
8,555,091
3,364,942
3,970,164
50,057,155
65,456,298
Net investment in capital assets
857,800,710
781,637,137
Restricted for pension -related benefits
1,076,737
43,662
Restricted for OPEB benefits
6,490,069
151,913
Restricted for debt service
3,622
1,527
Unrestricted net position
169,999,228
181,181,342
TOTAL NET POSITION
$1,035,370,366
$963,015,580
See accompanying notes to financial statements
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Central Contra Costa Sanitary District
Statements of Revenues, Expenses and Changes in Net Position
For the Fiscal Years Ended June 30, 2024 and 2023
OPERATING REVENUES
Sewer service charge (SSC)
Sewage treatment cost sharing (Note 8)
Miscellaneous service charges
Total operating revenues
OPERATING EXPENSES
Salaries and benefits
Contracted services
Utilities and 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
Investment income
Interest expense
Gain (loss) on sale of asset
Other non -operating income
Total non -operating revenues
INCOME (LOSS) BEFORE CAPITAL CO
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
2024 2023
$67,802,650 $50,109,215
17,828,345 17,649,002
2,199,774 2,233,077
87,830,769 69,991,294
63,571,346 60,809,719
12,018,682 10,585,951
8,863,283 8,174,185
2,724,827 2,175,040
2,805,949 2,675,384
2,963,427 2,729,905
26,096,869 25,003,263
119,044,383 112,153,447
(31,213,614) (42,162,153)
24,085,643 22,933,224
2,114,590 2,042,467
7,840,231 4,125,473
(798,576) (1,177,471)
(140,207) 129,918
1,648,273 1,073,645
34,749,954 29,127,256
3,536,340 (13,034,897)
11,581,690
9,956,648
50,274,268
67,227,158
2,154,742
1,456,478
4,807,746
7,165,352
68,818,446
85,805,636
72,354,786 72,770,739
963,015,580 890,244,841
$1,035,370,366 $963,015,580
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Central Contra Costa Sanitary District
Statements of Cash Flows
For the Fiscal Years Ended June 30, 2024 and 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers
Payments to employees and related benefits
Net cash provided (used) 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 AND RELATED FINANCING ACTIVITIES
Capital contributions
Capacity fees
Acquisition and construction of capital assets
Interest paid on long-term debt
Proceeds from direct borrowing
Principal payments on long-term debt
Net cash provided (used) for capital and related financing activities
CASH FLOWS FROM INVESTING ACTIVITIES
Redemption of investments
Acquisition of investments
Interest received
Net cash provided (used) by investing
NET INCREASE(DECREASE)IN CASH
Cash, beginning of year
Cash, end of year
See accompanying notes to financial statements
')n')e InIs
$83,920,275
$66,517,474
(18,452,767)
(27,699,052)
(57,040,583)
(56,257,900)
8,426,924
(17,439,478)
24,085,642
22,933,224
3,762,863
3,116,112
27,848,505
26,049,336
61,855,958
78,640,284
4,807,746
7,165,352
(94,631,854)
(61,720,324)
(2,064,142)
(2,305,124)
581,591
15,588,706
(7,090,000)
(10,750,000)
(36,540,701)
26,618,894
521,700,000
191,500,000
(529,500,000)
(227,600,000)
8,579,408
4,564,109
779,408
(31,535,891)
514,136
3,692,860
23,103,508
19,410,648
23,617,644
$23,103,508
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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 equivalents
Restricted cash and cash equivalents
Total cash and cash equivalents at end of year
InI 1)n')z
($31,213,614) ($42,162,153)
26,096,869 25,003,263
(140,207) 129,918
(3,770,287)
(3,603,738)
(743,656)
(1,672,950)
(24,170)
(610,976)
11,465,962
919,553
(30,666)
(470,490)
(26,096)
(166,322)
55,725
215,510
9,868,866
8,141,251
(3,363,162)
(3,334,452)
251,360
172,107
$8,426,924 ($17,439,478)
8,579,408 $4,564,109
68,818,446 85,805,636
$77,397,854 $90,369,745
$22,537,285 $23,058,319
1 nAn 2SQ dS 1 RQ
$23,617,644 $23,103,508
See accompanying notes to financial statements
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
NOTE 1- DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Reporting Entity
The Central Contra Costa Sanitary District (District), a special district and a public entity
established under the Sanitary District Act of 1923, provides sewer service for the
incorporated and unincorporated areas under its jurisdiction. A Board of Directors
comprised of five elected members governs the District.
As required by accounting principles generally accepted in the United States of America, these
basic financial statements present the financial statements of Central Contra Costa Sanitary
District and its component unit. The component unit discussed in the following paragraph is
blended in the District's reporting entity because of the significance of its operational and
financial relationship with the District.
Blended Component Unit - Component units are legally separate organizations for which the
District is financially accountable. Component units may also include organizations that are
fiscally dependent on the District, in that the District approves their budget, the issuance of
their debt or the levying of their taxes. In addition, component units are other legally separate
organizations for which the District is not financially accountable but the nature and
significance of the organization's relationship with the District is such that exclusion would
cause the District's financial statements to be misleading or incomplete. For financial
reporting purposes, the component unit discussed below is reported in the District's financial
statements because of the significance of its relationship with the District. The component
unit, although a legally separate entity, is reported in the financial statements using the
blended presentation method as if it were part of the District's operations because the
Governing Board of the component unit is the same as of Governing Board of the District and
because its purpose is to finance facilities to be used for the direct benefit of the District. The
Central Contra Costa Sanitary District Facilities Financing Authority (Authority) was organized
solely for the purpose of providing financial assistance to the District. The Authority does
this by acquiring, constructing, improving and financing various facilities, land and
equipment purchases, and by leasing or selling certain facilities, land and equipment for the
use, benefit and enjoyment of the public served by the District. The Authority has no
employees, and the Board of Directors of the Authority consists of the same people who are
serving as the Board of Directors of the District. There are no separate basic financial
statements prepared for the Authority.
B. Basis of Accounting
The District's financial statements are prepared on the accrual basis of accounting. The
District applies all applicable Governmental Accounting Standards Board (GASB)
pronouncements for accounting and financial reporting guidance.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
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 and
amortization, of providing goods or services to its customers, be financed or recovered
primarily through user charges; or where the governing body has decided that periodic
determination of revenues earned, expense incurred, and net income is appropriate for
capital maintenance, public policy, management control, accountability, or other purposes.
Enterprise funds are used to account for activities similar to those in the private sector, where
the proper matching of revenues and costs is important and the full accrual basis of
accounting is required. With this measurement focus, all assets and liabilities of the
enterprise are recorded on its statement of net position, all revenues are recognized when
earned and all expenses, including depreciation and amortization, are recognized when
incurred.
Enterprise funds distinguish operating revenues and expenses from non -operating items.
Operating revenues and expenses generally result from providing services and producing
and delivering goods in connection with an enterprise fund's principal ongoing operations.
The principal operating revenues of the District are charges to customers for services.
Operating expenses for the District include the costs of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as non -operating revenues and expenses.
For internal operating purposes, the District's Board of Directors has established four
separate sub -funds, each of which includes a separate self -balancing set of accounts and a
separate Board approved budget for revenues and expenses. These sub -funds are combined
into the single enterprise fund presented in the accompanying financial statements. The
nature and purpose of these sub -funds are as follows:
Running Expense - Running Expense accounts for the general operations of the
District. Substantially all operating revenues and expenses are accounted for in this
sub -fund.
Sewer Construction - Sewer Construction accounts for non -operating revenues, which
are to be used for acquisition or construction of plant, property and equipment.
Self -Insurance - Self -Insurance accounts for interest earnings on cash balances in this
sub -fund and cash allocations from other sub -funds, as well as for costs of insurance
premiums and claims not covered by the District's insurance coverage.
Debt Service - Debt Service accounts for activity associated with the payment of the
District's long term bonds and loans.
Rate Stabilization Accounts (RSA) have been established by the Board and consist of
book accounts in the Running Expense and Sewer Construction Funds. Deposits and
withdrawals to/from RSA require Board approval.
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CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
NOTE 1- DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (Continued)
C. Investments
Investments held at June 30, 2024 and 2023, with original maturities greater than one year,
are stated at fair value. Fair value is estimated using matrix pricing techniques, a market
approach, which estimates the value of securities based on their relationship to quoted
benchmark prices. All investments not required to be reported at fair value are stated at cost
or amortized cost.
D. Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. The
District categorizes its fair value measurements within the fair value hierarchy established
by generally accepted accounting principles. The fair value hierarchy categorizes the inputs
to valuation techniques used to measure fair value into three levels based on the extent to
which inputs used in measuring fair value are observable in the market.
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or
liabilities.
Level 2 inputs are inputs - other than quoted prices included within level 1- that are
observable for an asset or liability, either directly or indirectly.
Level 3 inputs are unobservable inputs for an asset or liability.
If the fair value of an asset or liability is measured using inputs from more than one level of
the fair value hierarchy, the measurement is considered to be based on the lowest priority
level input that is significant to the entire measurement.
E. Prepaid Expenses
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in the financial statements.
F. Parts and Supplies
Parts and supplies are valued at average cost and are used primarily for internal purposes.
21
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Page 44 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
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:
Years
Sewage Collection Facilities 75
Intangible Assets 75
Sewage Treatment Plant and Pumping Plants 40
Buildings 50
Furniture and Equipment 5 - 15
Motor Vehicles 7 - 15
H. Property Taxes
Property tax revenue is recognized in the fiscal year for which the tax is levied. The County
of Contra Costa levies, bills and collects property taxes for the District; all material amounts
are collected by June 30.
Property tax revenue recognized equals the amount levied as the County participates in
California's alternative method of apportionment called the Teeter Plan. The Teeter Plan, as
provided in Section 4701 at seq. of the State of Revenue and Taxation Code, establishes a
mechanism for the County to advance the full amount of property tax and other levies to
taxing agencies based on the tax levy, rather than actual tax collections. Under this
arrangement, the County assumes the risk of delinquencies but retains all rights to receive
the penalties and accrued interest thereon.
Secured property tax bills are mailed once a year, during the month of October on the current
secured tax roll, to the owner of the property as of the lien date (January 1). Payments can
be made in two installments and are due on November 1 and February 1. Delinquent
accounts are assessed a penalty of 10 percent. Accounts which remain unpaid on June 30 are
charged an additional 11/a 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 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
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 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 with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates.
K. Leases
A lease is defined as a contract that conveys control of the right to use another entity's
nonfinancial asset (the underlying asset) as specified in a contract for a period of time in an
exchange or exchange -like transaction. All such contracts with noncancelable periods greater
than twelve months, which do not also transfer ownership at contract termination, are
accounted for as leases.
L. Prior Year Summarized Comparative Information
The basic financial statements include certain prior -year summarized comparative
information in total but not at the level of detail required for a presentation in accordance
with generally accepted accounting principles. Accordingly, such information should be read
in conjunction with the District's financial statements for the year ended June 30, 2023, from
which the summarized information was derived.
M. New Governmental Accounting Standards Board (GASB) Pronouncements - Adopted
GASB Statement No. 100 - In June 2022, GASB Statement No. 100, Accounting Changes and
Error Corrections, was issued. GASB Statement No. 100 (GASB 100) intends to improve the
clarity of the accounting and financial reporting requirements for accounting changes and
error corrections, which will result in greater consistency in application in practice. In turn,
more understandable, reliable, relevant, consistent, and comparable information will be
provided to financial statement users for making decisions or assessing accountability. In
addition, the display and note disclosure requirements will result in more consistent,
decision useful, understandable, and comprehensive information for users about accounting
changes and error corrections.
23
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 151 of 230
Page 46 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
NOTE 1- DESCRIPTION OF DISTRICT AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
Implementation Guide No. 2023-01- In June 2023, Implementation Guide No. 2023-1 was
issued by the GASB to clarify and elaborate on GASB Statement No. 87 Leases and GASB
Statement No. 96, Subscription Based Information Technology Arrangements. The guide
provides clarity on the determination of the lease term across a variety of contracts with
varying termination and extension clauses held by lessees and lessors.
N. New Governmental Accounting Standards Board (GASB) Pronouncements - Not Yet
Adopted
GASB Statement No. 101 - In June 2022, the GASB issued GASB Statement No. 101,
Compensated Absences. 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. This Statement is effective for the fiscal year ending June 30, 2025. The District does
not expect this Statement to have a material impact on its financial statements.
GASB Statement No. 102 - In December 2023, the GASB issued GASB Statement No.
102, Certain Risk Disclosures. The requirements of this Statement will improve financial
reporting by providing users of financial statements with essential information that currently
is not often provided. The disclosures will provide users with timely information regarding
certain concentrations or constraints and related events that have occurred or have begun to
occur that make a government vulnerable to a substantial impact. As a result, users will have
better information with which to understand and anticipate certain risks to a government's
financial condition. This Statement is effective for the fiscal year ending June 30, 2025. The
District is currently evaluating the impact this Statement will have on its financial statements.
GASB Statement No. 103 - In April 2024, the GASB issued GASB Statement No. 103,
Financial Reporting Model Improvements. The requirements of this Statement include
changes to the presentation of the following items reported in the financial statements:
Management's Discussion and Analysis, Unusual or Infrequent Items, the Statement of
Revenues, Expenses, and Changes in Net Position, Major Component Information, and
Budgetary Comparison Information. This Statement is effective for the fiscal year ending June
30, 2026. The District is currently evaluating the impact this Statement will have on
its financial statements.
24
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 152 of 230
Page 47 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
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
2024 2023
$22,537,285
166,440,000
3,622
188,980,907
1,076,737
$190,057,644
$23,058,319
158,640,000
1,527
181,699,846
43,662
$181,743,508
The District is authorized under California Government Code to make direct investments in
local agency bonds, notes, or warrants within the State: U.S. Treasury instruments, registered
State warrants or treasury notes, securities of the U.S. Governments, or its agencies,
commercial paper, certificates of deposit placed with commercial banks and/or savings with
loan companies, and certificates of participation. State code and the District's investment
policy prohibit the District from investing in investments with a rating of less than A or
equivalent.
Investment purchases and sales are coordinated by the District's Treasurer, Contra Costa
County, at the request of the District.
25
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Page 48 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
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
Bankers Acceptances
Commercial Paper 1
Medium Term Notes '
Collateralized Certficates of Deposit
Supranationals
County Pooled Investment Funds
Local Agency Investment Fund (LAIF)
Government Investment Pools (CAMP, Ca1Trmtc)
Municipal Investments
5 years
None
None
N/A
5 years
None
None
N/A
N/A
20%
10%
A
5 years
30%
5%
AA
180 days
40%
5%
N/A
270 days
25%
10%
A-1
5 years
30%
10%
AA
5 years
20%
None
AAA
5 years
30%
5%
AA
N/A
None
None
N/A
N/A
None
$75 million
N/A
N/A
None
None
N/A
5 years
None
5%
AA
1 Prime quality; limited to corporations with assets over $500,000,000
2 Credit rating requirement not applicable for issuer if under FDIC insurance coverage, currently $250,000
26
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Page 49 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
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 the 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, 2024:
Investment Type
Investments Reported at Fair Value:
U.S. Treasury Obligations
Total
External Investment Pool (Exempt):
California Local Agency Investment Fund
Investments Exempt from Fair Value Hierarchy:
Restricted Cash and Investments
Cash and Mutual Funds held with Pension Trust
Cash in bank and On Hand
Total Cash and Investments
2024
Level Total
$123,500,000 $123,500,000
$123,500,000 123,500,000
53,600,000
3,622
1,076,737
11,877,285
$190.057.644
U.S. Treasury Obligations totalin $123.5 million classified in Level 2 of the fair value
hierarchy are valued using matrix pricing techniques maintained by various pricing vendors.
Matrix pricing estimates a security's fair value based on the security's relationship to
benchmark quoted prices.
27
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Page 50 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
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, 2023:
Investment
Investments Reported at Fair Value:
U.S. Treasury Obligations
U.S. Federal Agency Securities - FHLB
Total
External Investment Pool (Exempt):
California Local Agency Investment Fund
Investments Exempt from Fair Value Hierarchy:
Restricted Cash and Investments
Cash and Mutual Funds held with Pension Trust
Cash in bank and On Hand
Total Cash and Investments
2023
Level
Total
$107,000,000
$107,000,000
13,500,000
13,500,000
$120,500,000
120,500,000
45,600,000
1,527
43,662
15,598,319
$181,743,508
U.S. Treasury Obligations totaling $107.0 million as well as U.S. Federal Agency Securities
totaling $13.5 million are classified in Level 2 of the fair value hierarchy, are valued using
matrix pricing techniques maintained by various pricing vendors. Matrix pricing estimates a
security's fair value based on the security's relationship to benchmark quoted prices.
E. Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair
value of an investment; generally, the longer the maturity of an investment, the greater the
sensitivity of its fair value to changes in market interest rates. It is the District's policy to
manage exposure to interest rate risk by purchasing a combination of shorter term and longer -
term investments and by timing cash flows from maturities so that a portion of the portfolio is
maturing or coming close to maturity evenly over time as necessary to provide the cash flow
and liquidity needed for operations. District policy precludes investment in securities with
maturities in excess of five years, with the exception of investments in Treasury Notes or Local
Agency Investment Funds; 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:
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 156 of 230
Page 51 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
NOTE 2 - CASH AND INVESTMENTS (Continued)
Investment Type
U.S. Treasury Obligations
California Local Agency Investment Fund
Total
Restricted Cash and Investments
Restricted Cash and Mutual Funds held with Pension Trust
Cash in bank
Total Cash and Investments
2024
12 Months
or Less
$123,500,000
53,600,000
$ 177,100,000
Total
$123,500,000
53,600,000
177,100,000
3,622
1,076,737
11,877,285
$190,057,644
2023
12 Months
Investment Type
or Less
13 to 24 Months
Total
U.S. Treasury Obligations
$104,500,000
$2,500,000
$107,000,000
U.S. Federal Agency Securities - FHLB
13,500,000
13,500,000
California Local Agency Investment Fund
45,600, 0
-
45,600,000
Total
$ 163,600,%
NW
$ 2,500,000
166,100,000
Restricted Cash and Investments 1,527
Restricted Cash and Mutual Funds held with Pension Trust 43,662
Cash in bank 15,598,319
Total Cash and Investments $181,743,508
Investment in LAIF - The District is a olu ry participant in LAIF which is regulated by the
California Government Code under th��slght of the Treasurer of the State of California. LAIF
is not registered with the Securities and Exchange Commission. The fair value of the District's
investment in this pool is reported in the accompanying financial statements at amounts based
upon the District's pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio
(in relation to the amortized cost of that portfolio). The balance available for withdrawal is
based on the accounting records maintained by LAIF, which are recorded on an amortized cost
basis. At June 30, 2024 and 2023, these investments had weighted average maturities of 217
and 260 days, respectively.
Investments in County Treasury - The District is considered to be a voluntary participant in an
external investment pool. The fair value of the District's investment in the pool is reported in
the financial statements in cash and cash equivalents at amounts based upon the District's pro-
rata share of the fair value provided by the County Treasurer for the entire portfolio (in relation
to amortized cost of that portfolio). The balance available for withdrawal is based on the
accounting records maintained by the County Treasurer, which is recorded on an amortized
cost basis.
29
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Page 52 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
NOTE 2 - CASH AND INVESTMENTS (Continued)
F. Credit Risk
Credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder
of the investment. This is measured by the assignment of a rating by a nationally recognized
statistical rating organization. Presented below is the actual rating as of June 30, of each
investment type as provided by Moody's investment rating system, of which a P -1 rating is
the top rating for short term investments.
Totals
Investment
Rated P-1:
U.S. Federal Agency Securities - FHLB
AAA Rated:
U.S. Treasury Obligations
Total Rated Investments
2024 2023
$13,500,000
$123,500,000 107,000,000
123,500,000 120,500,000
Not Rated:
California Local Agency Investment Fund 53,600,000 45,600,000
Restricted Cash and Investments 3,622 1,527
Cash and Mutual Funds held with Pension Trust 1,076,737 43,662
Cash in Bank 11,877,285 15,598,319
Total Cash and Investments $190,057,644 $181,743,508
G. Concentration of Credit Risk
The investment policies of the District contain no limitations on the amount that can be
invested in any one issuer beyond that stipulated by the California Government Code. As of
June 30, 2024, the District does not have investments in any one issuer (other than U.S.
Treasury securities, mutual funds, and external investment pools) that represent 5 percent
or more of total investments.
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.
30
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 158 of 230
Page 53 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
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
2024
2023
$29,464,546 $27,657,109
989,068 948,222
2,940,602 920,367
$33,394,216 $29,525,698
The District provides loans to its employees for the purchase of personal computers. These
loans are payable through payroll deductions of $100 per month until the loan is paid off. The
interest rate associated with the loan is based on the most current Local Agency Investment
Fund (LAIF) rate in effect at the time of loan execution. The maximum amount each employee
may borrow is $2,000. The loans receivable balance, which is included in "All Other Accounts
Receivable" above, are as follows as of June 30:
Employee Computer Loans
Additions
Payments
Total Loan Receivable
Bank Escrow Deposit
2024 2023
$7,724 $10,212
11,213 9,901
(11,334) (12,389)
$7,603 $7,724
An escrow agreement was formed between the District and the National Park Service for the
right-of-way through the John Muir National Historic Site, in lieu of issuing a performance
bond. The current right-of-way permit is 10 years, but is renewable and must remain in effect
so long as there is sewage running through the area; therefore, it is unlikely that the escrow
funds will ever be released to the District. These funds with a balance of $103,648 at year-
end, are listed as "All Other Accounts Receivable" in table above.
31
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Page 54 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
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 balances at June 30, 2024 and 2023
were $621,248 and $720,859, 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 balances at June 30, 2024 and 2023
were $96,627 and $265,204, respectively.
The District also established Septic to Sewer Financing (S2S) to provide low-cost financing to help
homeowners connect to the public sewer system and properly abandon their septic tank. The
program is open to residential property owners with private septic systems located near existing
sewer mains within the District's service area. The S2S receivable balances at June 30, 2024 and
2023, were $825,929 and $655,972, respectively.
The total receivable balances at June 30, 2024 and 2023, for CAD, AVAD and S2S were $1,543,804
and $1,642,035, respectively and are shown as a non -current asset on the Statement of Net Position.
32
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Page 55 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
NOTE 5 - CAPITAL ASSETS
Property, plant and equipment, and construction in progress are summarized below for the year
ended June 30, 2024:
Capital assets not being depreciated:
Land
Easements (intangible)
Construction in Progress
Balance at Transfers & Balance at
July 1, 2023 Additions Retirements Adjustments June 30, 2024
$17,320,570 - $17,320,570
5,264,437 $11,046 5,275,483
126,762,525 $92,430,226 (36,613,987) 182,578,764
Total nondepreciated assets
149,347,532
92,430,226
(36,602,941)
205,174,817
Capital assets being depreciated
Sewage collection system
457,728,014
-
($26,350)
13,891,818
471,593,482
Contributed sewer lines
168,968,603
2,154,742
(47,338)
216,648
171,292,655
Outfall sewers
18,009,248
-
-
18,009,248
Sewage treatment plant
401,357,807
12,397,281
413,755,088
Recycled water infrastructure
29,389,233
2,546
29,391,779
Pumping station
89,286,964
175,308
89,462,272
Buildings
44,827,511
(30,000)
2,455,739
47,253,250
Furniture and equipment
18,089,892
(236,214)
1,799,041
19,652,719
Motor vehicles
9,687,395
(132,151)
840,006
10,395,250
Enterprise software
3,683,905
4,824,554
8,508,459
Lease right of use assets, equipment
337,849
910
(337,849)
-
-
Lease right of use assets, land
827,341
827,341
Subscription right of use assets
1310998 8
(5,432)
-
3,507,194
Total depreciated assets
1,2 04,7
4,356,370
(815,334)
36,602,941
1,283,648,737
Less accumulated depreciation:
Sewage collection system
100,972,046
6,268,273
(9,522)
-
107,230,797
Contributed sewer lines
`
72,267,8L8
2,239,356
(32,786)
74,474,398
Outfall sewers
4,640,423
239,055
4,879,478
Sewage treatment plant
262,919,410
9,164,936
272,084,346
Recycled water infrastructure
A,895,987
833,073
16,729,060
Pumping station
43,407,502
2,882,587
46,290,089
Buildings
20,576,800
1,327,756
(30,000)
21,874,556
Furniture and equipment
14,110,554
928,885
(235,413)
14,804,026
Motor vehicles
6,056,740
505,654
(132,151)
6,430,243
Enterprise software
1,562,174
609,618
2,171,792
Lease right of use assets, equipment
225,669
112,190
(337,859)
-
Lease right of use assets, land
157,588
78,793
236,381
Subscription right of use assets
646,419
906,693
(5,421)
1,547,690
Total accumulated depreciation
543,439,140
26,096,869
(783,152)
-
568,752,856
Total capital assets being depreciated, net
700,065,619
(21,740,499)
(32,182)
36,602,941
714,895,881
Capital assets, net $849,413,151 $70,689,727 ($32,182) $920,070,698
33
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 161 of 230
Page 56 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
NOTE 5 - CAPITAL ASSETS (Continued)
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
Lune 30, 2023
Capital assets not being depreciated;
Land
$17320,570
-
$17,320,570
Easements [intangible]
5,261,937
$2,500
5,264,437
Construction in Progress
95,518,652
$59,097,479
(28,151606)
126,762,525
Total nondepreciated assets
118,401,159
59,097,479
(29,151,105)
149,347,532
Capital assets being depreciated
Sewage collection system
443,262,940
-
($26,000) 14,491,074
457,729,014
Contributed sewer lines
167,746,429
1,311,857
(99,693) -
169,959,603
outfall sewers
16,872,714
-
1,136,534
19,009,249
Sewage treatment plant
392,167,194
-
9,190,613
401,357,807
Recycled vvaterinfrastructure
29,183,973
`
205,360
29,399,233
Pumping station
87,809,502
-
1,477,462
89,286,964
Buildings
44,819,817
- 7,694
44,927,511
Furniture and equipment
16,604,191
-
(5,105) 1,490,616
16,099,992
Motor vehicles
9,536,945
150A50
9,697,395
Enterprise software
3,612,802
-
1,103
3,693,905
Lease right of use assets, equipment
337,858
-
337,859
Lease right of use assets, land
901
B27,341
Subscription right of use assets
-
310,989
-
1,310,988
Total depreciated assets
1.212,951,596
2,622,945
12[ 0,799) 29,151,105
1,243,504,759
Less accumulated depreciation,
Sewage collection system
94,898.440
6,079,504
(5,898) -
100,972,046
Contributed sewer lines
70,113.115
2,215,679
(60,966)
72,267,929
Outfall sewers
4.408,945
231,479
4,640,423
Sewage treatment plant
254,124,019
9,795,392
262,919,410
Recycled ivater infrastructure
15,065,926
830,161
15,895,987
Pumping station
40,404352
3,003,150
43,407,502
Buildings
19,292,241
1,294,559
20,576,900
Furniture and equipment
13,294323
521,336
(5,105)
14,110,554
Motor vehicles
5,531,119
525,621
6,056,740
Enterprise software
1,193,939
359,336
1,552,174
Lease right of use assets, equipment
112,835
112,934
225,669
Lease right of use assets, land
79,794
79,704
157,599
Subscription right of use assets
-
646,419
646,419
Total accumulated depreciation
519,507,946
25,003,263
(71,969)
543,439,140
Total capital assets being depreciated, net
694,343,750
(22,390,418)
(49,910) 29,151,106
700,065,610
Capitalassets,net
$812,744,909
$36,717,061
[$48,Si9) -
$849,413,151
34
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 162 of 230
Page 57 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
NOTE 6 - LONG-TERM DEBT
A. Summary of Activity
The changes in the District's long-term obligations during the year ended June 30, 2024
consisted of the following:
Bonds
2018 Series A Wastewater Revenue
Refunding Bonds
1.39%-2.34% due 9/1/2029
2018 Series B Wastewater Revenue
Refunding Bonds
2.62%-3.12% due 9/1/2023
2021 Wastewater Revenue Certificates
of Participation
0.05%-0.62% due 9/1/2028
Direct Borrowing
Clean Water State Revolving Fund Loan
0.9% due 7/31/55
Total long-term debt
Add: Unamortized Premiums
Revenue Bonds/Certificates
Total long-term debt
Less Current Portion of Principal
Long Term Portion
Original Amount
Issue Balance Balance due within
Amount July 1, 2023 Additions Retirements June 30, 2024 one year
$15,135,000 $11,305,000 $ $1,395,000 $9,910,000 $1,465,000
4,315,000 570,000 570,000 - -
50,570,000 33,060,000 5,125,000 27,935,000 5,630,000
173,105,000 15,588,706 91 16,169,297
60,523,7 580, 7,090,000 54,014,297 $7,095,000
7,252,308 1,173,012 6,079,297
67,776,014 $580,591 $8,263,012 60,093,594
(7,090,000) (7,095,000)
$60,686,014 $52,998,594
35
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 163 of 230
Page 58 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
The changes in the District's long-term obligations during the year ended June 30, 2023
consisted of the following:
Bonds
2018 Series A Wastewater Revenue
Refunding Bonds
1.39%-2.34% due 9/1/2029
2018 Series B Wastewater Revenue
Refunding Bonds
2.62%-3.12% due 9/1/2023
2021 Wastewater Revenue Certificates
of Participation
0.05%-0.62% due 9/1/2028
Direct Borrowing
Clean Water State Revolving Fund Loan
0.9% due 7/31/55
Total long-term debt
Add: Unamortized Premiums
Revenue Bonds/Certificates
Total long-term debt
Less Current Portion of Principal
Long Term Portion
Original
Amount
Issue
Balance
Balance
due within
Amount
July 1, 2022 Additions
Retirements
June 30, 2023
one year
$15,135,000
$12,640,000 $
$1,335,000
$11,305,000
$1,395,000
4,315,000
1,120,000
550,000
570,000
570,000
50,570,000
41,925,000
8,865,000
33,060,000
5,125,000
173,105,000 - 15,588,706 - 15,588,706
55,685,000 15,588,706 10,750,000 60,523,706 $7,090,000
1,173,012 7,252,308
$11,923,012 67,776,014
(7,090,000)
$60,686,014
36
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 164 of 230
Page 59 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
NOTE 6 - LONG-TERM DEBT (Continued)
B. Debt Service Requirements
The scheduled and estimated debt service requirements for the next ten years are as follows:
Fiscal Year
2018 Wastewater Revenue
2021 Wastewater Revenue
Clean Water State Revolving
Ending
Refunding Bonds Series A & B
Certificates of Participation
Fund Loan
June 30
Principal
Interest
Principal
Interest
Principal
Interest
2025
$1,465,000
$458,875
$5,630,000
$1,256,000
$
$
2026
1,535,000
383,875
6,165,000
961,125
2027
1,610,000
305,250
6,740,000
638,500
471,892
521,402
2028
1,685,000
222,875
6,905,000
297,375
476,139
141,277
2029
1,765,000
136,625
2,495,000
62,375
480,425
136,991
2030-2034
1,850,000
46,250
-
-
2,467,763
619,316
2035-2039
-
2,580,830
506,250
2040-2044
2,699,076
388,003
2045-2049
2,822,741
264,339
2050-2054
2,952,071
135,008
2055-2056
1,218,359
16,472
Total
$9,910,000
$1,553,750
$27,935,000
$3,215,375
$16,169,297
$2,729,059
Debt service payments for the Clean Water State Revolving Fund Loan reflect payments
estimated only for proceeds received through June 30, 2024. Actual proceeds anticipated
from this loan are $173,105,000. The District's debt service requirements are expected to
increase as the District continues to receive proceeds from the loan.
C. 2018 Series A and B Wastewater Revenue Refunding Bonds
On September 13, 2018, the District issued two Wastewater Revenue Refunding Bonds
(Bonds). The 2018 Wastewater Revenue Refunding Bonds, Series A (tax-exempt) and B
(federally taxable) were issued for $15,135,000 and $4,315,000, respectively. The Bonds
were issued to defease and refund all the District's outstanding obligations with respect to
the $19,635,000 original principal amount of 2009 Wastewater Revenue Certificates of
Participation, Series A and all of the District's outstanding obligations with respect to the
$34,490,000 original principal amount of 2009 Wastewater Revenue Certificates of
Participation, Series B, and pay costs issuing the Bonds. The refunding resulted in an overall
debt service savings of $7,455,312. The net present value of the debt service savings is called
an economic gain and amounted to $2,603,897.
The two bonds total $19,450,000 and are secured by a pledge of tax and net revenues of the
wastewater system. The outstanding bonds from direct borrowings related to business -type
activities of $19,450,000 contain a provision that in an event of default, the U.S. Bank National
Association (Trustee) has the right to accelerate the total unpaid principal amounts of the
bonds. The official statement contains an event of default clause that changes the timing of
the repayments of outstanding amounts to become immediately due if the District is unable
to make payment. Principal payments began 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. During fiscal year ending June 30, 2024, the Series
B Bonds were fully repaid. The outstanding balance of the Series A Bonds at June 30, 2024
amounted to $9,910,000.
37
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 165 of 230
Page 60 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
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, 2024 amounted to
$27,935,000.
E. Clean Water State Revolving Fund Loan
The District entered into a contract in December 2021 to borrow funds from the State Water
Resources Control Board. The funds are being used for the Solids Handling Improvement
Project to rehabilitate and replace the sludge dewatering centrifuges, cake pumps, and
furnace air pollution control equipment. The maximum loan amount is $173,105,000, of
which the District has drawn $16,169,297. The loan bears interest at 0.9 percent per year and
will accrue beginning with each disbursement. Repayments are scheduled to commence in
July 2027 following the completion of the project for a term of 30 years. As of June 30, 2024,
the District owed $16,169,297 on the loan.
F. Compensated Absences
The liability for vested vacation, compensatory time, and sick pay is recorded as an expense
when earned. Depending on hire date and length of employment with the District, employees
retain a vested interest between 25 and 40 percent of their sick time. Unused sick time may
be applied towards pension service time and/or cashed out upon retirement.
The changes in compensated absences were as follows for fiscal years ended June 30:
Beginning Balance
Adjustments
Payments
Ending Balance
CuiTent Portion
2024 2023
S5,802,385
291,922
S6,272,875
('184,948)
(322,588)
(285,542)
S5,771,719
S5,802,385
S577,172
S580,239
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.
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 166 of 230
Page 61 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
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 workers' compensation insurance.
A. Insurance Coverage
The District's insurance coverage is as follows:
Type of Coverage Insurer
All -Risk Property:
Special Form Property Alliant Property Insurance Program
Crime National Union Fire Ins. Company
Liability:
Fiduciary Liabiltiy Insurance
Pollution - General Liabilty
Commercial Environment Excess
Excess Liabiltiy
Excess Following Form Liability Policy
Employment Practice Liabilty
Worker's Compensation:
Excess Workers' Compensation
Hudson Insurance Company
Aspen Specialty Ins. Company
Aspen Specialty Ins. Company
Great American E & S Insurance Company
Evanston Insurance Company
Indian Harbor
Self Insured Deductible
Limits Per Occurrence
$747,081,798 $250,000
1,000,000 2,500
1,000,000
25,000
5,000,000
5,000
9,000,000
50,000
10,000,000
500,000
5,000,000
-
500,000
35,000
CSRMA/Safety National Casualty Company Statutory
B. Provision for Uninsured Claims
The Governmental Accounting Standard Board (GASB) requires state and local governments
to record their liability for uninsured claims in their financial statements. The District's policy
is to maintain a reserve for claims of $1,500,000 which is equivalent to three claims at
$500,000 per occurrence. The District's independent actuary has calculated its potential
liability as of June 30, 2024 to be $1,775,711.
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. The 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.
39
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 167 of 230
Page 62 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
NOTE 7 - RISK MANAGEMENT (Continued)
For fiscal years ended June 30, 2024, 2023, and 2022, 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
2024 2023 2022
$1,719,986 $1,504,476 $1,455,065
303,202 516,226 202,162
(247,477) (300,716) (152,751)
$1,775,711 $1,719,986 $1,504,476
The District's Self Insurance program also maintains a reserve of $7.5 million for catastrophic
losses.
NOTE 8 - AGREEMENT WITH THE CITY OF CONCORD
In 1974, the District and the City of Concord (the City) entered into a cost -sharing agreement
under which the District became responsible for providing sewage treatment facilities and
services to the City. Under this agreement, the City pays a service charge for its share of
operating, maintenance and administrative costs and makes a contribution for its share of
facilities capital costs expended. Service charges and contributions to capital costs from the
City totaled $17,882,586 and $11,581,690 respectively, for the year ended June 30, 2024, for
a total of $29,464,276. Service charges and contributions to capital costs from the City totaled
$17,700,461 and $9,956,648 respectively, for the year ended June 30, 2023, for a total of
$27,657,109.
40
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 168 of 230
Page 63 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
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, 2023 providing the plan funded
status as of that date and contribution rates for the fiscal year ended June 30, 2024. CCCERA
issues a publicly available financial report that includes financial statements and
supplemental information of the Plan. That report is available by writing to Contra Costa
County Employees' Retirement Association, 1200 Concord Ave., Suite 300, Concord, CA
94523 or on their website at www.cccera.org.
Benefits Provided - The Plan provides for retirement, disability, and death and survivor
benefits. Annual cost of living (COL) adjustments to retirement allowances can be granted by
the Retirement Board as provided by State statutes. Retirement benefits are based on age,
length of service, date of membership and final average salary.
Subject to vested status, employees can withdraw contributions plus interests credited, or
leave them as a deferred retirement when they terminate, or transfer to a reciprocal
retirement system.
The Plans' provisions and benefits in effect at June 30, 2024, are summarized as follows:
Membership date
Benefit vesting schedule
Benefit payments
Leave cash out pensionable?
Benefit % per year of service
Final pensionable salary formula
Annual benefit cap
Minimum retirement age (with benefit reductions)
Normal retirement age (unreducted benefits)
Required employee contribution rates
Required employer contribution rates
Miscellaneous
Prior to January 1, 2013
On or after January 1, 2013
10 years service
5 years service
monthly for life
monthly for life
Yes
No
2%
2%
Highest 12 consecutive months
Annual average of highest 36
consecutive months
Hired before 1/1/1996 - None
$181,734
Hired 1/1/1996 - 12/31/2012 - $345,000
5o
52
55
62
8.47%-15.98%
11.52%
17.51%
11.67%
41
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 169 of 230
Page 64 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
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, 2024, the District's
contributions to the Plan were $6,477,175.
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 $36,556,805 for the year ended June 30, 2024.
The District reported net pension liability for its proportionate share of the net pension
liability of the Plan in the amount of $37,772,326 for the year ended June 30, 2023.
The District's net pension liability for the Plan is measured as the proportionate share of the
net pension liability. The net pension liability of the Plan is measured as of December 31,
2023, and the total pension liability for the Plan used to calculate the net pension liability was
determined by an actuarial valuation as of December 31, 2022 rolled forward to December
31, 2023 using standard update procedures. The District's proportion of the net pension
liability was based on a projection of the District's long-term share of contributions to the
pension plan relative to the projected contributions of all participating employers, actuarially
determined.
The District's proportionate share of the net pension liability for the Plan as of December 31,
2022, 2023, and 2024 were as follows: V
Proportionate Share of the
Plan Fiduciary Net
Reporting Date for Proportion of the Proportionate Share
Net Pension Liability as a
Pension as a Percentage
Employer under GASB Net Pension of Net Pension
Covered
Percentage of its Covered
of the Total Pension
68 as of June 30 Liability (Asset) Liability (Asset)
Payroll
Payroll
Liability
2022 22.039% ($53,543,789)
$37,667,972
-142.15%
111.27%
2023 2.224% 37,772,326
40,424,238
93.44%
92.35%
2024 2.292% 36,556,805
41,133,132
88.87%
92.93%
42
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 170 of 230
Page 65 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
NOTE 9 - PENSION PLANS (Continued)
For the year ended June 30, 2024, the District recognized a pension expense of $15,971,322.
At June 30, 2024, the District reported deferred outflows of resources and deferred inflows
of resources related to pensions from the following sources:
Deferred Outflows Deferred Inflows of
of Resources
Resources
Pension contributions subsequent to measurement date
$3,388,575
Differences between expected and actual experience
4,699,537
($24,376)
Changes of assumptions or other inputs
1,700,231
(42,821)
Change in proportion and differences between employer
contributions and proportionare share of contributions
27,304,731
(39,452,307)
Net difference betweeen projected and actual earnings
on pension plan investments
17,165,514
Total
$54,258,588
($39,519,504)
The $3,388,575 reported as deferred outflows of resources related to contributions
subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2025.
Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized as'kpen�sioon expense as follows:
Year Ended? Annual
June 30
Amortization
2025
$9,862,201
2026
(189,485)
2027
2,407,807
2028
(730,014)
Total
$11,350,509
43
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 171 of 230
Page 66 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
NOTE 9 - PENSION PLANS (Continued)
Actuarial Assumptions - The total pension liability in the December 31, 2023 actuarial
valuations were determined using the following actuarial assumptions:
Method/Assumption
Valuation Date
December 31, 2022
Measurement Date
December 31, 2023
Actuarial Cast Method
Entry Age Actuarial Cast Method
Amortization Method
Level perceut of payroll
Actuarial Assumptions:
Discount Rate
6.75%
Inflatiou Rate
2.50%
Payroll Growth
2.50% (1)
Projected Salary Increase
3.50%-14.00%
Cost of Living Adjustments
2.75%
Investment Rate of Return
6,75% (2)
Administrative Expense
1.17%
Post -Retirement Mortality -
Healthy Members and
Pub-2010 General Healthy Retiree Amount -Weighted Above -
Beneficiaries not in pay
Median Mortality Table, projected generationally with the two -
status
dimensional mortality improvement scale MP-2021
Post -Retirement Mortality - Pub-2010 Non -Safety Disabled Retiree Amount -Weighted
Disabled Members Mortality Table increased by 5 % for males and unadjusted for
females, projected generationally with the two-dimensional
morWity improvement scale MP-2021
Post -Retirement Mortality - Pub-2010 Contingent Survivor Amount-Waighted Above -
Beneficiaries in pay status Median Mortality Table increased by 5% for ruales and females,
projected generationally with the two-dimensional mortality
improvement scale MP-2021
Pre-RetirementMortality Pub-2010General Employee Amount-WeightedAbove-Median
Mortality Table, projected generationally with the two-
dimensional mortality improvement scale M P-2 0 21
(1) Plus "across the board" real salary increases of0.5% per year plus merit & promotion
increases that vary by service
(2) Net of pension plan investment expense, including inflation
Discount Rate - The discount rate used to measure the Total Pension Liability (TPL) was
6.75% as of December 31, 2023. The projection of cash flows used to determine the discount
rate assumed employer and employee contributions will be made at rates equal to the
actuarially determined contribution rates. For this purpose, only employer and employee
contributions that are intended to fund benefits for current plan members and their
beneficiaries are included. Projected employer contributions that are intended to fund the
service costs for future plan members and their beneficiaries, as well as projected
contributions from future plan members, are not included. Based on those assumptions, the
Plan Fiduciary Net Position was projected to be available to make all projected future benefit
payments for current plan members. Therefore, the long-term expected rate of return on
pension plan investments was applied to all periods of projected benefit payments to
determine the TPL as of December 31, 2023.
44
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 172 of 230
Page 67 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
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 arithmetic rate of return for the portfolio by
weighting the expected arithmetic 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
Expected
Target
Arithmetic Real
Asset Class Allocation
40ate of Return
Large Cap U.S. Equity
10%
5.40%
Small Cap U.S. Equity
3%
6.17%
Developed International Equity 10%
6.13%
,
Emerging Markets Equity
9%
8.17%
Core Fixed
%
0.39%
Short -Term Credit
4%
-0.14%
Cash and Equivalents
3%
-0.73%
Private Equity
15%
10.83%
Private Credit
13%
5.93%
Infrastructure
3%
6.30%
Value Add Real Estate
5%
7.20%
Opportunistic Real Estate
5%
8.50%
Risk PaNy
3%
3.80%
Hedge Funds
3%
2.40%
Total
100%
5.6%
NO,
Changes in the assumed discount rate can have large effects on the measurement of the Total
Pension Liability (TPL). Lower discount rates result in a higher TPL and higher discount rates
result in a lower TPL. Because the discount rate does not affect the measurement of plan
assets, small changes in the assumed discount rate can have significant changes in the Net
Pension Liability (NPL). The table below illustrates the sensitivity of the NPL to changes in
the actuarially assumed discount rate by one percent in either direction as reported at June
30, 2024:
Miscellaneous
1% Decrease 5.75%
Net Pension Liability (Asset) $105,880,485
Assumed Discount Rate 6.75%
Net Pension Liability (Asset) $36,556,805
1% Increase 7.75%
Net Pension Liability (Asset) ($20,263,520)
45
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 173 of 230
Page 68 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
NOTE 9 - PENSION PLANS (Continued)
B. 457 (b) Deferred Compensation Plan
District employees may defer a portion of their compensation under a District sponsored
Deferred Compensation Plan created in accordance with Internal Revenue Code Section 457
(b). The plan was established by the District's Board of Directors and any amendments to the
plan must be authorized by the Board of Directors. Under this plan, participants are not taxed
on the deferred portion of their compensation until it is distributed to them; distributions
may be made only at termination, retirement, death, or in an emergency as defined by the
plan. The District does not make contributions to the plan.
The plan's 457 (b) assets are held in trust with Mission Square Retirement (formerly ICMA-
RC) for the exclusive benefit of the participants and are not included in the District's financial
statements.
C. 401 (a) Money Purchase Plan
The District also contributes to a money purchase plan created in accordance with Internal
Revenue Code section 401(a). The plan was established by the District's Board of Directors
and any amendments to the plan must be authorized by the Board. Contributions to the plan
are made in accordance with a memorandum of understanding stating that in lieu of making
payments to Social Security, the District contributes to the 401(a) Plan an amount equal to
that which would have been contributed to Social Security on behalf of its employees as long
as the District is not required to participate in Social Security. The District contributed
$2,965,851 and $2,776,729 to the Plan during the years ended June 30, 2024 and 2023,
respectively. In addition to contributions made by the District as described previously,
unrepresented employees may elect to make irrevocable contributions to the plan.
The 401(a) money purchase plan assets are held in trust with Mission Square Retirement
(formerly ICMA-RC) for the exclusive benefit of the participants and are not included in the
District's financial statements.
NOTE 10 - OTHER POST EMPLOYMENT BENEFITS (OPEB) PLAN
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.
46
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 174 of 230
Page 69 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
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, 2024:
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
274
270
544
Actuarial Methods and Assumptions - The District's net OPEB liability was measured as of
June 30, 2024 and the total OPEB liability used to calculate the net OPEB liability was
determined by an actuarial valuation dated July 1, 2022 that was rolled forward using standard
update procedures to determine the $83,627,113 total OPEB liability as of June 30, 2024, based
on the following actuarial methods and assumptions:
Method/Assumption
Valuation Date
July 1, 2022
Measurement Date
June 30, 2024
Actuarial Cost Method
Entry Age Normal, Level Percent of Pay
Actuarial Assumptions:
Contribution and Funding Policy
District contributes full ADC
Discount Rate and Long -Term Expected
5.25% at June 30, 2024
Rate of Return on Assets
5.25% at June 30, 2023
General Inflation
2.50% Annually
Mortality, Disability, Termination,
CCCERA 2018-20 Experience Study
Retirement
Mortality Improvement
Mortality projected fully generational with Scale MP-2021
Medical Trend
Non -Medicare - 8.50% for 2025, decreasing to an ultimate rate of
3.45% in 2076
Medicare (Non -Kaiser) - 7.50% for 2025, decreasing to an
ultimate rate of 3.45% in 2076
Medicate (Kaiser) - 6.25% for 2025, decreasing to an ultimate rate
of 3.45% in 2076
Dental and Vision Trend
3.50% annually
Healthcare Participation for Future
Currently Covered and CCCERA Eligible: 100%
Retirees
Currently Waived Coverage and CCCERA Eligible: 95%
Not CCCERA Eligible: 60%
Self -Pay Board Members: 50%
Changes of assumptions
None
47
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 175 of 230
Page 70 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
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, 2023 to June 30, 2024.
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 weighing the
expected future real rates of return by the target asset allocation percentage and by adding
expected inflation. The target allocation and best estimates of arithmetic real rates of return for
each major asset class are summarized in the following table:
Expected Real Rate
Asset Class Component Target Allocation of Return
Global Equity 50.0% 4.56%
Fixed Income 45.0% 0.78%
Cash 5.0% -0.50%
Total 100%
Assumed Long -Term Rate of Inflation 2.50%
Expected Long -Term Net Rate of Return, Rounded 5.25%
Discount Rate - The discount rate used to measure the total OPEB liability was 5.25%. The
projection of cash flows used to determine the discount rate assumed that District
contributions will be made at rates equal to the actuarially determined contribution rates.
Based on those assumptions, the OPEB plan's fiduciary net position was projected to be
available to make all projected OPEB payments for current active and inactive employees and
beneficiaries. Therefore, the long-term expected rate of return on OPEB plan investments was
applied to all periods of projected benefit payments to determine the total OPEB liability.
:•
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 176 of 230
Page 71 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
NOTE 10 - OTHER POST EMPLOYMENT BENEFITS (OPEB) PLAN
(Continued)
C. Changes in Net OPEB Liability
The changes in the net OPEB liability are as follows:
Balance at July 1, 2023
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, 2024
Increase fDecrease
Total OPEB
Plan Fiduciary
Net OPEB
Liability
Net Position
Liability/(Asset)
(a)
(b)
(a) - (b)
$81,190,218
$81,342,131
($151,913)
1,892,040 1,892,040
4,264,186 4,264,186
3,647,801 (3,647,801)
9,076,240
(9,076,240)
(3,719,331) (3,719,331)
-
- (229,659)
229,659
2,436,895 8,775,051
(6,338,156)
$83,627,113 $90,117,182
($6,490,069)
D. Sensitivity of the Net OPEB Liability to Changes in the Discount Rate and Healthcare Cost
Trend Rates
The following presents the net OPEB asset of the District at June 30, 2024, as well as what the
District's net OPEB liability (asset) would be if it were calculated using a discount rate that is 1-
percentage-point lower (4.25%) or 1-percentage-point higher (6.25%) than the assumed
discount rate of 5.25%:
Net OPEB Liability (Asset)
Discount Rate -1% Discount Rate Discount Rate +1%
(4.25%) (5.25%) (6.25%)
$3,686,326 ($6,490,069) ($14,943,576)
The following presents the net OPEB asset 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
($15,507,443) ($6,490,069)
$5,971,224
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 177 of 230
Page 72 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
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, 2024, the District recognized an OPEB expense of $284,639. At
June 30, 2024, the District reported deferred outflows and inflows of resources related to OPEB
from the following sources:
Differences between expected and actual experience
Changes of assumptions
earnings
on pension plan investments
Total
Deferred Outflows Deferred Inflows of
of Resources Resources
$743,072 ($3,436,473)
- (2,766,281)
(969,955)
$743,072 ($7,172,709)
Amounts reported as deferred outflows and (inflows) of resources related to OPEB will be
recognized as part of OPEB expense as follows:
,04
Year Ended 'A
nnual
June 30 ortization
2025 ($1,784,519)
2026 1(18,907)
7 (3,109,197)
2a OX
(1, 517, 014)
Total ($6,429,637)
OPEB Liabilities, OPEB Expenses and Deferred Outflows/Inflows of Resources Related to
OPEB
For purposes of measuring the net OPEB liability, deferred outflows of resources and
deferred inflows of resources related to OPEB, and OPEB expense, information about the
fiduciary net position of the District's OPEB Plan and additions to/deductions from the OPEB
Plan's fiduciary net position have been determined on the same basis as they are reported by
the District's defined benefit post -employment healthcare plan (DPHP). For this purpose,
benefit payments are recognized when currently due and payable in accordance with the
benefit terms. Investments are reported at fair value.
6Y11
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 178 of 230
Page 73 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
NOTE 11- NET POSITION
Net Position
Net Position represents 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 categories:
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 or liabilities assumed to finance these assets.
Restricted describes the portion of Net Position which is restricted as to use by the terms and
conditions of agreements with outside parties, governmental regulations, laws, or other
restrictions which the District cannot unilaterally alter.
Unrestricted describes the portion of Net Position which is not restricted as to use.
NOTE 12 - LEASES AND SUBSCRIPTION -BASED INFORMATION TECHNOLOGY AGREEMENTS
A. Lease Receivable
The District has entered into 11 multi -year leases agreements as the lessor for various parcels
of land. The terms of these leases are between one and ten years and the District will receive
monthly payments from each lessee. The District recognized $730,970 in lease revenue and
$216,706 in interest revenue during the current fiscal year related to these leases. As of June
30, 2024 and 2023, the District receivable for these leasing agreements totaled $3,698,675
and $4,224,394, respectively. The District has also recorded a deferred inflow of resources
associated with this leases that will be recognized as revenue over the lease terms. As of June
30, 2024 and 2023, the balance of the deferred inflow of resources was $3,364,942 and
$3,970,164, respectively. V
Leases Receivable
Land
Less current portion
Non -current portion
Leases Receivable
Land
Less current portion
Non -current portion
Balance
July 1, 2023 Additions
$4,224,394 -
(605,747)
$ 3, 618, 647
Balance
Balance
Retirements June 30, 2024
$525,719 $3,698,675
(645,044)
$3,053,631
Balance
July 1, 2022 Additions Retirements June 30, 2023
4,635,788 - $411,394 $4,224,394
(411,394)
$4,224,394
(605,747)
$3,618,647
51
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 179 of 230
Page 74 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
NOTE 12 - LEASES AND SUBSCRIPTION -BASED INFORMATION TECHNOLOGY AGREEMENTS
(Continued)
B. Lease Payable
A summary of lease transactions for the fiscal years ended June 30, 2024 and 2023, are as
follows:
Leases Payable
Land
Equipment
Total
Less current portion
Non -current portion
Leases Payable
Land
Equipment
Total
Less current portion
Non -current portion
Balance
July 1, 2023 Additions
Retirements
$695,648 -
$69,809
112,437 -
112,437
808,085 -
182,246
(182,246)
$625,839
Balance
July 1, 2022 Additions
Retirements
$762,557 -
$66,909
225,249 -
112,812
987,806 -
179,721
(179,721)
$808,085
Balance
June 30, 2024
$625,839
625,839
(72,805)
$553,034
Balance
June 30, 2023
$695,648
112,437
808,085
(182,246)
$625,839
The District has entered into three multi -year lease agreements as lessee for the use of land
and office equipment. As of June 30, 2024 and 2023, the value of the lease liabilities were
$625,839 and $808,085, respectively. The District is required to make monthly principal and
interest payments ranging from $15,680 to $15,895. The leases have a weighted average
interest rate of 0.99%. The value of the right -to -use asset as of the end of the current fiscal
year was $827,341 and had accumulated amortization of $236,382.
The future principal and interest lease payments as of June 30, 2024, are as follows:
For the Year
Ended June 30
Principal
Interest
Total
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
85,809
2,739
88,548
2030-2032
229,829
2,985
232,814
$625,839
$24,665
$650,504
52
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 180 of 230
Page 75 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
NOTES TO THE BASIC FINANCIAL STATEMENTS
For the Years Ended June 30, 2024 and 2023
NOTE 12 - LEASES AND SUBSCRIPTION -BASED INFORMATION TECHNOLOGY AGREEMENTS
(Continued)
C. Subscription -Based Information Technology Arrangements (SBITAs)
A summary of changes in the SBITA payable account for the fiscal years ended June 30, 2024
and 2023, are as follows:
SBITAs Payable
2024
2023
Beginning Balance
$484,909
-
Additions
2,677,724
$1,310,988
Retirements
(1,612,077)
(826,079)
Ending Balance
1,550,556
484,909
Less current portion
(998,020)
484,909
Non -current portion
$552,536
$ -
The District has entered into twelve multi -year SBITAs for the use of information technology
software. As of June 30, 2024, the value of the SBITA liability was $1,550,556. The value of
the right -to -use asset as of the end of the current fiscal year was $3,507,196 and had
accumulated amortization of $1,549,690. As of June 30, 2023, the value of the SBITA current
liability was $484,909. The value of the right -to -use asset as of the end of fiscal year 2023 was
$1,310,988 and had accumulated amortization of $646,419.
The future principal and interest SBITA payments as of June 30, 2024, are as follows:
For the Year
Ended June 30
Principal
Interest
Total
2025
$998,020
$39,733
$1,037,753
2026
498,131
21,402
519,533
2027
25,986
2,149
28,135
2028
28,418
1,123
29,541
$1,550,555
$64,407
$1,614,962
NOTE 13 - COMMITMENTS AND CONTINGENCIES
Commitments and contingencies, undeterminable in amount, include normal recurring
pending claims and litigation. In the opinion of management, based upon discussion with
legal counsel, there is no pending litigation which is likely to have a material adverse effect
on the financial position of the District.
Claims and losses are recorded when they are reasonably probable of being incurred and the
amount is estimable. Insurance proceeds and settlements are recorded when received.
The District has several purchase commitments for ongoing capital projects that involve
multi -year contracts. Purchase commitments related to these multi -year contracts are
approximately $174,330,567 and $73,906,397 as of June 30, 2024 and 2023, respectively.
53
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 181 of 230
Page 76 of 114
REQUIRED SUPPLEMENTARY INFORMATION
,fir
r
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 182 of 230
Measurement date
Proportion of the net pension
liability
Proportionate share of the net
pension liability (asset)
Covered payrolls
Proportionate share of the net
pension liability as a percentage
CENTRAL CONTRA COSTA SANITARY DISTRICT
Cost -Sharing Multiple Employer Defined Benefit Retirement Plan
As of Fiscal Year Ending June 30, 2024
PROPORTIONATE SHARE OF NET PENSION LIABILITY (ASSET)
Last 10 Fiscal Years
December 31,
2023 2022 2021 2020 2019 A 2018 2017 2016 2015 2014
2.29%
2.22%
22.04%
10.59% 7.42%
` 6.33%
$36,556,805
$37,772,326
($53,543,789)
$48,886,895 450
$90,430,104
$41,133,132
$40,424,238
$37,667,972
$37,131,9�,08 9
$33,793,159
7.86% 6.27%
$63,806,000 $87,847,116
$33,306,738 $31,584,169
of covered payroll 88.87% 93.44%-142.15% 177.67% 267.60% 191.57% 278.14%
Fiduciary net position as a
percentage of the total pension
liability 92.93% 92.35% 27')measurement
89.10% 85.05% 77.86% 83.58% 76.44%
s Covered payroll represents compensation earnable and pensionable compensation fortperiod ended December 31st. Only compensation earnable and pensionable
compensation that would possibly go into the determination of retirement benefits are included.
6.09% 7.49%
$91,746,888 $89,535,510
$29,061,743 $29,647,993
315.70% 302.00%
74.14% 73.86%
55
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 183 of 230
CENTRAL CONTRA COSTA SANITARY DISTRICT
Cost -Sharing Multiple Employer Defined Benefit Retirement Plan
As of Fiscal Year Ending June 30, 2024
SCHEDULE OF CONTRIBUTIONS
Last 10 Years
2024 2023 2022 2021 2020 2019
2018 2017 2016 2015
Actuarially determinedcontribtuion $6,477,175 $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
Contributions in relation to the actuarially determined
contributions 6,477,175 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
Contributions deficiency (excess) - - - - - - - - - -
Covered payroll $46,617,607 $44,642,742 $40,961,867 $41,625,151 X6,S79 $38,479,260 $36,638,935 $35,178,106 $32,675,243 $30,093,339
Contributions as a percentage of covered payroll 13.89% 15.26% 17.09% 170.44%** 447N 45.53% 48.80% 51.29% 69.63% 81.25%
Notes to Schedule
Measurement Date: 12/31/23
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry Age
Amortization method Level percentage of payroll, closed
Remaining amortization period
Asset valuation method 5-year semi-annually
Inflation 2.50%
Salary increases 3.50% - 14.00%
Investment rate of return 6.75%, net of pension plan investmen)-afety
ncluding inflation
Retirement age 50 years Classic, 52 years PEPRA
Mortality Pre -Retirement, Post Retirement Heneficiaries not in pay status: Pub-2010 General Healthy Retiree Amount -Weighted Above -Median Mortality Table
Post Retirement Disabled: Pub-2010 Disabled Retiree Amount -Weighted Mortality Table increased by 5% for males and unadjusted for females
Post Retirement Beneficiaries in pay status: Pub-2010 Contingent Survivor Amount -Weighted Above -Median Mortality Table increased by 5% for males and females
* Remaining balance of December 31, 2007 UAAL is amortized over a fixed (decreasing or closed) period with 1 year remaining as of December 31, 2021. Any changes in UAAL after December 31, 2007 will be separately
amortized over a fixed 18-year period effective with that valuation. Effective December 31, 2013, any changes in UAAL due to plan amendments (with the exception of a change due to retirement incentives) will be
amortized over a 10-year fixed period effective with that valuation. 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.
56
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 184 of 230
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 OPEB liability/(asset) - 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:
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*
Period ending June 30
2024 2023 2022 2021 2020 2019 2018 2017
$1,892,040 $2,215,263 $2,150,741 $2,249,861 $2,184,331 $2,447,310 $2,370,276 $2,295,667
4,264,186 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) (464,535) 3,495,645
(3,719,331) (4,075,640) (4,182,821) (4,654,246) (4,145,654) (5,697,440) (5,571,750) (5,404,627)
2,436,895 (6,800,936) 2,664,167 4,967,299 2,520,823 (28,108,332) 3,194,589 3,094,270
81,190,218 87,991,154 85,326,987 80,359,688 77,838,865 105,947,197 102,752,608 99,658,338
$83,627,113 $81,190,218 $87,991,154 19$85,326,987 $80,359,688 $77,838,865 $105,947,197 $102,752,608
$3,647,801 $4,862,308 $5,16 , $4,654,246 $5,395,654 $7,280,240 $9,649,750 $10,433,327
(138,800)
9,076,240 5,632,562 (10,230,951) )�#14,958,207 2,994,909 4,920,923 3,354,822 4,735,576
(229,659) (216,708) (221,902) ' (200,304) (182,833) (174,362) (164,446) (5,404,627)
(3,719,331) (4,075,640) (4,182,821) (4,654,246) (4,145,654) (5,697,440) (5,571,750) (139,063)
8,775,051 6,202,522 (9,467,674) 14,619,103 4,062,076 6,329,361 7,268,376 9,625,213
81,342,131 75,139,609 84,607,283 69,988,180 65,926,104 59,596,743 52,328,367 42,703,154
$90,117,182 $81,342,131 $75,139,609 $84,607,283 $69,988,180 $65,926,104 $59,596,743 $52,328,367
($6,490,069) ($151,913) $12,851,545 $719,704 $10,371,508 $11,912,761 $46,350,454 $50,424,241
107.76% 100.19% 85.39% 99.16% 87.09% 84.70% 56.25% 50.93%
$46,617,607 $44,642,742 $40,961,867 $41,625,151 $40,356,579 $38,479,260 $36,638,935 $35,178,106
-13.92% -0.34% 31.37% 1.73% 25.70% 30.96% 126.51% 143.34%
* Fiscal year 2017 was the first year of implementation
** The District makes contributions to the plan on a "pay -go" approach, reimbursing the trust for incurred costs and premiums. Although administered through a trust, because the contributions are
not based on a measure of pay, covered -employee payroll is used
57
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 185 of 230
Fiscal Year Ended June 30,
Actuarially determined contribution
Contributions in relation to the
actuarially determined contribution
Contribution deficiency (excess)
Covered -employee payroll `
Contributions as a percentage of
covered payroll
Notes to Schedule
CENTRAL CONTRA COSTA SANITARY DISTRICT
POST -RETIREMENT HEALTH CARE DEFINED BENEFIT PLAN
SCHEDULE OF CONTRIBUTIONS
Single Employer
Last 10 fiscal years*
2024 2023 2022 2021 2020 2019 2018 2017
$2,021,000 $3,331,000 $3,324,000 $3,917,000 $3,906,000 $7,524,000 $7,866,000 $7,866,000
3,647,801
4,862,308
5,168,000
4,654,246
5,395,654
7,280,240
10,433,327
10,433,327
{S1,626,801}
,531,308}
{S1,844,000}
{S737,246}
{ 1,489,654}
S243,760
{ 2,567,3271
(52,567,327)
$46,617,607
544,642,742
$40,961,867
S41,625,151
$40,356,579
538,479,260
$36,638,935
535,178,106
7.82% 10.89% 12.62% 11.18% 13.37% 18.92% 28.48% 29.66%
Methods and assumptions used to determine contribution rates:
Valuation Date
Actuarial Cost Method
Amortization Method
Amortization Period
Asset Valuation Method
Actuarial Assumptions:
Discount Rate
General Inflation
Medical Trend
D eutal Trend
Mortality Rate
Mortality Improvement
July 1, 2022 `
Entry Age Normal, Level Percen P
Level dollar
12-year fixed period for 2023/24
Investment gains and lasses spread over 5-year rolling period
5.250I0 at June 30, 2824
2.500I0 annually
Nou-Medicare - 8.50% for 2025, decreasing to an ultimate rate of 3.45% in 2076
Medicare (Nou-Kaiser) - 7.50% for 2025, decreasing to an ultimate rate of 3AS% in 2076
Medicare (Kaiser) - 6.25% for 2025, decreasing to an ultimate rate of 3AS% in 2076
3.50% annually
CCCERA 2018-2020 Experieuce Study
Mortality projected fully generationally with Scale MP-2021
* Fiscal year 2017 was the first year of implementation
** The District makes contributions to the plan on a "pay -go" approach, reimbursing the trust for incurred costs and premiums. Although adtttittistered through a trust, because
the contributions are not based on a measure of pay, covered -employee payroll is used
am
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 186 of 230
Page 81 of 114
SUPPLEMENTARY INFORMATION
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 187 of 230
Page 82 of 114
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 depreciation
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 and 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 of SBITAs
Total current liabilities
NON -CURRENT LIABILITIES
Net pension liability
Non -current portion of long term obligations
Accrued compensated absences - non -current
Non -current portion of lease payable
Non -current portion of SBITAs 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 for pension -related benefits
Restricted for OPEB benefits
Restricted for debt service
Unrestricted net position
TOTAL NET POSITION
Central Contra Costa Sanitary District
Combining Schedule of Net Position
Enterprise Sub -Funds
June 30, 2024
Running Expense Sewer Construction Self Insurance
Debt Service
Totals
$13,980,304
$7,899,469
$657,512
- $22,537,285
-
-
-
$3,622 3,622
20,340,000
136,000,000
10,100,000
- 166,440,000
1,076,737
-
-
- 1,076,737
21,276,987
12,117,229
-
- 33,394,216
645,044
-
-
- 645,044
296,906
58,467
109,772
- 465,145
1,211,063
-
86,282
- 1,297,345
6,544,130
6,544,130
65,371,171
156,075,165
10,953,566
3,622 232,403,524
3,053,631
-
-
1,543,804
6,490,069
-
205,174,817
-
714,895,881
929, 614, 398
1,543,804
994,985,569
1
54,258,588
74z n7?
, -
3,053,631
1,543,804
6,490,069
205,174,817
714,895,881
931,158,202
3,622 1,163,561,726
54,258,588
55,001,660� 55,001,660
3,848,217
22
10,036
-
23,338,475
459,156
1,721703
oolk
1,056,209
-
630,750
1,721,703
_
1,775,711
-
1:775:711
V24 08
172
-
-
-
-
-
-
242,308
577,172
-
-
-
7,095,000
7,0,0
72,805
7272,805
998,020
-
-
998,020
7,232,422
20,536,431
1,785,747
7,725,750
37,280,350
v36,556,805
-
-
-
36,556,805
-
-
-
52,998,594
52,998,594
5,194,547
-
-
-
5,194,547
553,033
553,033
552,536
-
552,536
42,856,921
52,998,594
95,855,515
50,089,343
20,536,431
1,785,747
60,724,344
133,135,865
39,519,504
-
-
-
39,519,504
7,172,709
-
-
-
7,172,709
3,364,942
-
3,364,942
50,057,155
50,057,155
857,800,710
-
-
-
857,800,710
1,076,737
-
-
-
1,076,737
6,490,069
-
-
-
6,490,069
-
-
-
3,622
3,622
84,473,215
137,082,538
9,167,819
(60,724,344)
169,999,228
$949,840,731
$137,082,538
$9,167,819
($60,720,722]
$1,035,370,366
W1
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 188 of 230
Page 83 of 114
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, 2024
Running Expense
Sewer Construction
Self Insurance
Debt Service
Totals
OPERATING REVENUES
Sewer service charge (SSC]
$66,125,898
$ -
$1,676,752
$ -
$67,802,650
Sewage treatment cost sharing
17,828,345
-
-
-
17,828,345
Miscellaneous service charges
2,199,774
2,199,774
Total operating revenues
86,154,017
1,676,752
87,830,769
OPERATING EXPENSES
Salaries and benefits
63,571,346
-
-
-
63,571,346
Contracted services
11,226,022
-
786,860
5,800
12,018,682
Utilities and fuel
8,863,283
-
-
8,863,283
Chemicals
2,724,827
-
-
-
2,724,827
General supplies
2,805,949
-
-
-
2,805,949
Other operating expenses
1,237,218
-
1,726,209
-
2,963,427
Asset purchases
-
-
-
-
-
Gain (loss) on sale of asset
-
-
-
-
-
Depreciation and amortization expense
26,096,869
-
-
-
26,096,869
Contra -expense capital outlays
Total operating expenses
116,525,514
2,513,069
5,800
119,044,383
OPERATING INCOME (LOSS)
(30,371,497)
(836,317)
(5,800)
(31,213,614)
NON -OPERATING REVENUES (EXPENSES)
Taxes
-
16,211,1
-
7,874,500
24,085,643
Permit and inspection fees
1,952,699
161,8
-
-
2,114,590
Grants
-
-
-
-
-
Investment income
1,158,579
6,290,414
391,238
-
7,840,231
Interest expense
(25,676)
40 -
-
(772,900)
(798,576)
Gain (loss) on sale of asset
(32,180)
(108,027)
-
-
(140,207)
Other non -operating income
1,092,355
537,815
18,103
1,648,273
Total non -operating revenues (expenses), net
4,145,777 23,093,236
409,341
7,101,600
34,749,954
INCOME (LOSS) BEFORE CAPITAL
(26,2i-I
(426,976)
7,095,800
3,536,340
CONTRIBUTIONS AND TRANSFERS
CAPITAL CONTRIBUTIONS AND TRANSFERS
Z50274,268
Other government revenue - Concord
-
-
11,581,690
Customer contributions to capital
-
-
50,274,268
Non -exchange capital contributions/donations
2,154,742
f
-
-
-
2,154,742
Capacity fees
-
4,807,746
4,807,746
Total capital contributions
2,154,742
66,663,704
68,818,446
Interfund transfers in/out
V
(93,133,536)
500,000
703,310
CHANGE IN NET POSITION
67,'59,24,
(3,376,596)
73,024
7,799,110
72,354,786
NET POSITION, BEGINNING OF YEAR
881,981,483
140,459,134
9,094,795
(68,519,832)
963,015,580
NET POTISION, END OF YEAR
949,840,731
$137,082,538
$9,167,819
($60,720,722]
$1,035,370,366
61
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 189 of 230
^
� s
Page 85 of 114
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 Pages
Financial Position and Trends 63-65
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 66-69
These schedules contain information to help the reader assess the District's
most significant revenue source of sewer service fees.
Debt Capacity 70-71
These schedules present information to help the reader assess the affordability
of the District's current levels of outstanding debt and the District's ability to
issue additional debt in the future. `
Demographic and Economic Factors 72-73
These schedules offer demographic, economic, and District indicators to help
the reader understand the environment within which the District's financial
activities take place.
Operating Information
These schedules contain data to help the reader understand how the
information in the District's financial report relates to the services it provides
and the activities it performs.
74-75
62
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 191 of 230
Central Contra Costa Sanitary District
Changes in Net Position and Statement of Net Position
Last Ten Fiscal Years
Changes in Net Position
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020
2020-2021
2021-2022
2022-2023
2023-2024
Operatin Revenues:
Sewer Service Charges (SSC)
$70,023,512
$72,233,903
$73,138,235
$75,824,221
$68,656,908
$70,408,903
$72,325,340
$100,680,646
$50,109,215
$67,802,650
City of Concord
12,892,945
13,913,960
13,851,253
14,973,623
15,205,292
14,923,591
15,002,567
16,086,801
17,649,002
17,828,345
Other Service Charges
1,006,197
963,014
1,029,500
1,078,594
1,126,239
1,176,242
1,171,378
-
-
-
Miscellaneous Charges
593,780
623,659
606,453
619,997
689,727
714,043
743,276
2,164,237
2,233,077
2,199,774
Total Operating Revenue
84,516,434
87,734,536
88,625,441
92,496,435
85,678,166
87,222,779
89,242,561
118,931,684
69,991,294
67,830,769
Operating Expenses:
Salaries & Benefits
Chemicals, Utilities & Supplies
Professional & Outside Services
Hauling, Disposal, Repairs & Maintenance
Self -Insurance (net of transfers)
Pension/OPEB Expense
Depreciation and amortization
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 - GASH 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
66,104,630
63,988,158
62,342,392
68,862,484
65,071,382
62,672,096
134,187,829
55,538,097
56,002,920
57,065,642
7,466,490
7,304,619
8,115,004
7,477,602
8,093,144
8,088,750
8,738,404
10,972,308
13,024,609
14,393,347
3,322,881
4,196,302
3,891,224
2,988,280
3,276,763
2,684,034
4,160,807
5,404,618
4,456,818
4,995,860
4,758,260
5,780,533
5,662,086
5,461,011
5,755,590
5,435,406
5,751,355
3,781,839
5,676,960
6,230,162
496,381
72,486
(300,108)
(332,483)
1,039
1,110,798
550,000
1,640,304
1,961,374
2,513,069
(3,012,757)
(9,778,389)
(4,080,558)
1,104,358
(33,3 8)
(2,386,849)
(70,933,999)
373,099
4,806,799
6,505,704
22,740,942
22,885,030
22,892,153
21,561,704
20,983,353
21,253,062
21,531,302
23,044,768
25,003,263
26,096,865
2,473,963
3,343,778
2,942,592
2,558,122
2,366,41
1,858,144
1,459,081
1,992,706
1,220,704
1,243,734
104,350,790
97,792,517
101,464,785
109,681,078
- 13,278,92
100,711,441
105,444,779
102,747,739
112,153,447
119,044,383
(19,834,356)
(10,057,981)
(12,839,344)
(17,184,643)
12,399,242
(13,492,662)
(16,202,218)
16,183,945
(42,162,153)
(31,213,614)
14,083,331
14,635,167
16,318,874
17,650,74 8,251,794
18,876,886
20,516,826
21,239,420
22,933,224
24,085,643
1,843,942
2,546,723
2,600,888
2,592,137
2,648,708
2,251,245
2,440,187
2,308,395
2,042,467
2,114,590
318,475
562,308
761,838
1,223,349N2�":573,964
2,310,269
1,678,028
772,909
4,125,473
7,840,231
(1,523,127)
(1,427,641)
(1,313,398)
(1,230:680)025,006)
(604,851)
(542,226)
(1,950,841)
(1,177,471)
(798,576)
1,828,530
1,195,095
966,244
1,075,838424,520
1,219,811
3,193,569
2,053,331
1,203,563
1,508,066
16,551,151
17,711,652
19,334,446
21,311,385 11W
23,873,980
24,053,360
27,286,384
24,423,214
29,127,256
34,749,954
(3,283,205)
7,653,671
6,495,102
4,126,742
36,273,222
10,560,698
11,084,166
40,607,159
(13,034,897)
3,536,340
6,769,623
11,991,752
16,628,105
20,425,514
36,562,141
44,222,958
40,220,549
18,067,469
77,183,806
61,855,958
794,218
1,774,168
2,899,042
2,003,614
2,179,641
1,761,808
923,468
1,496,013
1,456,478
2,154,742
6,673,298
8,543,758
7,044,340
_ 9,331,420
8,145,068
7,083,702
5,500,316
4,584,973
7,165,352
4,807,746
10,953,934
29,963,349
33,066,589
35,887,290
83,160,072
63,629,166
57,728,499
64,755,614
72,770,739
72,354,786
644,345,666
563,607,078
593, Q42i_N
626,637,016
620,971,490
704,131,562
767,760,728
825,489,227
890,244,841
963,01S,58O
(91,692,522)
-
-
-
-
-
-
-
-
(41,552,816)
-
-
-
-
-
$563,607,078
$593,570,Llt
$626,637,016
$620,971,490
$704,131,562
$767,760,728
$625,489,227
$890,244,841
$963,015,580
$1,035,370,366
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
2019-2020
2020-2021
2021-2022
2022-2023
2023-2024
$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
$857,800,710
4,288,008
4,363,251
4,449,437
4,421,504
(271,370)
2,639
34,929,105
14
153,439
7,570,428
(13,856,024)
7,362,273
21,417,325
(6,757,356)
48,816,628
75,640,917
105,725,880
142,598,044
181,225,004
169,999,228
$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
$1,035,370,366
63
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 192 of 230
$250,000,000
$200,000,000
i $150,000,000
M
0
p $100,000,000
$50,000,000
Central Contra Costa Sanitary District
Revenue By Type
Last Ten Fiscal Years
2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
Fiscal Year
0Operating Revenue O Non -Operating Revenue
n- ti„o n
Fiscal
Year
Sewer Service
Charges*
City of
Concord!;Ages
Tffther Service
cellaneous
Charges
Total
Operating
2014-2015
$70,023,512
$12,892,945
$1,006,197
$593,780
$84,516,434
2015-2016
72,233,903
13,913,960
963,014
623,659
87,734,536
2016-2017
73,138,235
13,851,253
9,500
606,453
88,625,441
2017-2018
75,824,221
14,973,623
1,078,594
619,997
92,496,435
2018 2019
68,656,908,joIIIIIIIIIIIIIIII
15,205,292
1,126,239
689,727
85,678,166
2019-2020
70,408,903
14,923,591
1,176,242
714,043
87,222,779
2020-2021
72,325,340
15,002,567
1,171,378
743,276
89,242,561
2021-2022
100,680,646
-
2,164,237
118,931,684
2022-2023
50,109,215
17,649,002
2,233,077
69,991,294
2023-2024
67,802,650;6116,08-6,801
7,828,345
2,199,774
87,830,769
Non -Operating Revenue
Fiscal
Year
Property
Taxes
Customer
Contributions **
Connections
& Other Fees ***
Interest
All
Other
Total Non -Operating
& Contributions
2014-2015
$14,083,331
$7,563,841
$8,517,240
$318,475
$1,828,530
$32,311,417
2015-2016
14,835,167
13,765,920
11,090,481
562,308
1,195,095
41,448,971
2016-2017
16,318,874
19,527,147
9,645,228
761,838
966,244
47,219,331
2017-2018
17,650,741
22,429,128
11,923,557
1,223,349
1,075,838
54,302,613
2018-2019
18,251,794
38,741,782
10,793,776
2,573,964
1,424,520
71,785,836
2019-2020
18,876,886
45,984,766
9,334,947
2,310,269
1,219,811
77,726,679
2020-2021
20,516,826
41,144,017
7,940,503
1,678,028
3,193,569
74,472,943
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
2023-2024
24,085,643
64,010,700
6,922,336
7,840,231
1,508,066
104,366,976
* Sewer Service Charge (SSC) represents the Running Expense Fund portion of SSC County collections along with District direct billings and counter colh
** Customer Contributions include the portion of SSC that is allocated to Sewer Construction Fund, City of Concord reimbursement of capital costs, and
developer contributed sewer lines beginning in 2000-2001, due to changes in GASB 33 reporting requirements.
*** Includes connection fees, non -operating permit, inspection, and other fees.
Source: Central Contra Costa Sanitary District Audited Financial Statements
64
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 193 of 230
Central Contra Costa Sanitary District
Operating Expenses by Type
Last Ten Fiscal Years
$179,000,000
$129,000,000
$79,000,000
0
Ca $29,000,000
$(21,000,000)
$(71,000,000)
2014-2015 2015.2016 2016-2017 2017.2018 2018.201 19-2020 2020-2021 2021.2022 2022-2023 2023.2024
Fiscal Yea
■ Salaries and Benefits ❑ Chemicals, Utilities & Supplies Pro
essi &Outside Services ■Hauling Disposal, Repairs &Maintenance
■ Self -Insurance ■ Depreciation i i Pens OPEB Expense* ■All Other
OPERATING EXPENSES
Fiscal
Year
Salaries
and Benefits
Chemicals, Utilities
& Supplies
Professional &
Outside S
rHauling, Disposal,
1iK&&ZW&tenqAke
Self -Insurance
Depreciation
Pension/OPEB
Expense*
TIPW
Other
Total Operating
Expenses
,
2014-2015
$66,104,630
$7,466,490
$3,322,881
$4, 260
$1,146,381
$22,740,942
($3,012,757)
$1,823,963
$104,350,790
2015-2016
63,988,158
7,304,619
4,196,302
5,7 533
1,572,486
22,885,030
(9,778,389)
1,843,778
97,792,517
2016-2017
62,342,392
8,115,004
3,891,224
5 086
619,892
22,892,153
(4,080,558)
2,022,592
101,464,785
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
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
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
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)
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
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
2023-2024
57,065,642
14,393,347
4,995,860
6,230,162
2,513,069
26,096,865
6,505,704
1,243,734
119,044,383
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
Non -Operating
$1,523,127
1,427,641
1,313,398
1,230,680
1,025,006
604,851
542,226
1,950,841
1,177,471
65
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 194 of 230
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
$416
$23
$439
2014-2015
2015-2016
422
49
471
2016-2017
432
71
503
2017-2018
447
83
530
2018-2019
400
167
567
2019-2020
408
190
598
2020-2021
277
352 -
629
2021-2022
441
209 $10
660
2022-2023
284
396 10
2023-2024
$390
$297 $10
_ 697
Multi -Family Annual Sewer Service Charge (S
Fiscal Year I Operations Capital Self -Insurance
2014-2015
$416
$23
2015-2016
415
48
2016-2017
418
69
2017-2018
432
81
2018-2019
388
161
2019-2020
386
180
2020-2021
262
334
2021-2022
418
198
2022-2023
1 269
3754
1 $348
$265
2023-2024
487
513
549
566
596
625
654
$9 $622
Accessory Dwelling Unit (SSC) *4
Fiscal Year Operations Capital Self -Insurance Total
2023-2024 $180 $137 $5 $322
Facility
Capacity Fee *2
$5,995
6,005
5,948
6,300
6,700
6,589
6,803
6,803
$8,182
Pump
Zone Fee *3
$1,585
1,650
1,608
1,639
1,636
1,586
1,585
1,585
*1 All residential accounts paid a Flat annual sewer service charge shown above per household through 2014-2015. In 2015-2016, as a result of a cost of service study, the District
changed to a two tier single family and 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.
Fee was eliminated starting FY2023/24 based on review of pumped zone assets which indicated that recent investments in those assets have generally been paid for by all Central San Customers.
*4 New rate class starting FY2023/24 based on review of water consumption data for parcels with and without Accessory Dwelling Units (ADU).
ADU may include in-law units, backyard cottages, and other smaller independent residential units located on the same property. Fee is per connection.
Source: Central Contra Costa Sanitary District Environmental Services Division
66
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 195 of 230
Central Contra Costa Sanitary District
Assessed and Estimated Actual Valuation of Taxable Property
Last Ten Fiscal Years
Fiscal Year
Local Secured
Unsecured
Total
% Change
2014-2015
$80,431,132,956
$1,739,342,301
$82,170,475,257
7.9%
2015-2016
86,701,930,276
1,645,712,628
88,347,642,904
7.5%
2016-2017
92,006,863,080
1,704,263,642
93,711,126,722
6.1%
2017-2018
97,298,029,346
1,722,229,970
99,020,259,316
5.7%
2018-2019
102,984,718,407
1,801,374,862
104,786,093,269
5.8%
2019-2020
108,704,671,836
1,863,018,759
110,567,690,595
5.5%
2020-2021
110,795,231,142
1,848,644,910
112,643,876,052
1.9%
2021-2022
115,098,221,080
1,974,850,316
117,073,071,396
3.9%
2022-2023
123,119,257,816
1,855,761,569
124,975,019,385
6.7%
2023-2024
129,993,573,105
1,981,659,567 1
131,975,232,672
5.6%
Property Tax and Sewer Service Charge Fees Levied and Collected
Last Ten Fiscal Years
Property Tax*
Collection
I It
Sewer Service Charges*
Collection
Fiscal Year
Levied & Collected
Percentage 4NWjp4n a
Levied & Collected
Percentage
% Change
2014-2015
$14,195,300
00%
8.3%
$72,622,738
100%
9.0%
2015-2016
15,323,818
00%
<00%
7.9%
78,930,977
100%
8.7%
2016-2017
16,428,089
7.2%
83,601,971
100%
5.9%
2017-2018
17,300,475
100°/
5.3%
87,944,554
100%
5.2%
2018-2019
18,352,620
100%
6.1%
95,298,869
100%
8.4%
2019-2020
19,348,103
100%
5.4%
100,863,356
100%
5.8%
2020-2021
20,233,423
100%
4.6%
100,603,114
100%
-0.3%
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%
2023-2024
23,990,185
100%
4.5%
115,623,640
100%
0.6%
* 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
67
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 196 of 230
Customer
City of Concord 1.
Contra Costa County General Services 2.
First Walnut Creek Mutual
Park Regency Apartments
Second Walnut Creek Mutual Apts
Sun Valley Mall
Branch Creek Vista Apartments
Kaiser Foundation Hospital 2.
Bay Landing Apartments
Archstone Apartments
Muirland @ Windemere Apartments
John Muir Health 2.
Bishop Ranch City Center
Willows Shopping Center 2.
San Ramon Unified School District
Total
Customer
City of Concord 1.
First Walnut Creek Mutual
Park Regency Apartments
Second Walnut Creek Mutual Apts
John Muir Health 2.
Branch Creek Vista Apartments
Bay Landing Apartments
Archstone Apartments
Muirland @ Windemere Apartments
Kaiser Foundation Hospital 2.
Contra Costa County General Services 2
Sun Valley Mall
St. Mary's College Contract
San Ramon Unified School District
Bishop Ranch City Center
Willows Shopping Center 2.
Total
Central Contra Costa Sanitary District
Sewer Service Charge
Ten Largest Customers
Last Ten Fiscal Years
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
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
Collected
Rank
Service Chargg
Collected
Rank
Service Charges
Collected
Rank
Service Charges
Collected
Rank
Service Charges
Collected
Rank
Service Charges
$12,892,945
1
14.38%
$13,913,960
1
14.18%
$13,851,253
1
13.37%
$14,973,623
1
13.46%
$ 15,205,292
1
12.63%
451,567
2
0.50%
638,608
2
0.65%
547,943
2
0.53%
556,782
2
0.50%
-
-
417,050
3
0.47%
439,850
3
0.45%
462,650
3
0.45%
487,350
3
0.44%
521,550
2
0.43%
391,588
4
0.44%
412,996
4
0.42%
434,404
4
0.42%
457,596
4
0.41%
489,708
3
0.41%
329,250
5
0.37%
347,250
5
0.35%
361210
0.35%
387,750
5
0.35%
411,750
6
0.34%
299,697
6
0.33%
283,613
6
0.29%
298,00
7
0.29%
354,208
6
0.32%
453,512
4
0.38%
175,600
7
0.20%
-
194,80
9
0.19%
205,200
9
0.18%
219,600
10
0.18%
158,848
8
0.18%
186,232
10
0.19%
186,281
0.18%
-
-
244,180
9
0.20%
158,040
9
0.18%
-
-
-
-
-
-
153,650
10
0.17%
153,650
10
0.17%
-
-
-
-
-
-
-
-
-
218,919
7
0.22%
3 ,601
6
0.31%
278,589
7
0.25%
413,900
5
0.34%
-
-
-
-
-
315,106
7
0.26%
-
-
206,210
9
0.21°
-
188,828
10
0.17%
-
-
215,044
8
0.2�
2 5,339
8
0.22%
247,766
8
0.22%
266,550
8
0.22%
$ 15,581,885
17.37%
$ 16,862,681
17.18%
$ 16,888,526
16.30%
$ 18,137,692
16.31%
$ 18,541,148
15.40%
2019-2020
2
-2021
2021-2022
2022-2023
2023-2024
Sewer Service
Percentage of
Sewer Service
Percentage of
Sewer Service
Percentage of
Sewer Service
Percentage of
Sewer Service
Percentage of
Charges
Total Sewer
Charges
otal Sewer
Charges
Total Sewer
Charges
Total Sewer
Charges
Total Sewer
Collected
bank
Service Chargg
Ra
ervice ChargesCollected
Rank
Service Charges
Collected
Rank
Service Charges
Collected
Rank
Service Charges
$14,923,591
1
11.52%
048,78
1
.80%
$ 16,134,761
1
11.97%
$ 17,700,461
1
12.21%
$ 17,882,586
1
12.12%
537,700
3
0.42%
537,700
.42%
593,750
2
0.44%
621,300
2
0.43%
621,300
2
0.42%
504,872
4
0.39%
504,872
0.40%
557,500
3
0.41%
583,368
3
0.40%
583,368
3
0.40%
424,500
5
0.33%
424,500
0.33%
468,750
4
0.35%
490,500
4
0.34%
490,500
4
0.33%
391,245
6
0.30%
362,718
6
0.28%
404,989
5
0.30%
434,624
5
0.30%
434,624
5
0.29%
226,400
10
0.17%
226,400
9
0.18%
250,000
6
0.19%
261,600
6
0.18%
261,600
6
0.18%
-
-
225,000
7
0.17%
235,440
7
0.16%
235,440
7
0.16%
198,876
10
0.15%
228,900
8
0.16%
228,900
8
0.16%
218,750
9
0.16%
228,900
9
0.16%
228,900
9
0.16%
-
-
-
-
222,277
8
0.16%
225,383
10
0.16%
225,383
10
0.15%
733,416
2
0.57%
740,223
2
0.58%
-
-
-
-
-
-
373,171
7
0.29%
339,061
7
0.27%
242,777
8
0.19%
283,631
9
0.22%
215,229
10
0.17%
335,017
8
0.26%
-
-
$ 18,733,543
14.46%
$ 18,642,262
14.62%
$ 19,274,654
14.30%
$ 21,010,476
14.50%
$ 21,192,601
14.37%
1. Contract with the City of Concord to treat and dispose ofwastewater 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
68
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 197 of 230
Central Contra Costa Sanitary District
Payments Under the Concord Agreement
Last 10 Fiscal Years
Fiscal Year
Discharge Volume (mg)
Service Charges
Capital Contributions
Total
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
16,134,761
11,393,000
27,527,761
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
2023-24
4,566
17,882,586
11,581,690
29,464,276
Central Contra Costa Sanitary District
Active Service Accounts and Fiscal Year Billings
Sewer Service Charges
Fiscal Year 2023-2024
2023424 Sewer
Percentage of
User Group No. of Parcels
Service O rge Billings
Residential Unit Equivalents
Total
Residential
116,062 `
$97,158,537
139,395
83%
Office
1,075
3,276,215
4,700
3%
Food Service
220
2,568,760
3,685
2%
Mixed Use
217
2,462,705
3,533
2%
Hotel/Motel
24
1,301,696
1,868
1%
Schools
158
1,177,746
1,690
1%
Businesses*
439
1,106,135
1,587
1%
Market/Supermarket
44
1,004,945
1,442
1%
Industrial Permitted
14
976,826
1,401
1%
Recreation/Entertainment
218
911,584
1,308
1%
Automotive/Car Wash
250
893,768
1,282
1%
Skilled Nursing
44
790,830
1,135
1%
All Other User Groups
584
3,913,439
5,615
3%
Subtotal
119,349
$117,543,187
168,642
100%
Partial Year Charges (Counter)
$559,068
Prior Year Adjustments
(25,337)
Total FY 2023-2024 Sewer Service Charge Revenue
$118,076,918
69
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 198 of 230
Debt Service Paid Each Fiscal Year
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
Summary Of Debt Service
Last Ten Fiscal Years
Outstanding Debt Each Fiscal Year
In 2021, the District issued COP's for $58.OM, see Note 6
$75,000,000
$60,000,000
$45,000,000
0
Q $30,000,000
$15,000,000
$0
tih
,yo
lo ^ ~� ti�~Q ti�ryo ti�ry~ ti�ry� ti�ry� ti�ry�
`Lo,��i `Lo.�N `Loti1' `LotiO 'Lo,~A' 4,,yO' 4, ryotiti `Lol°i
Summary By Type of Debt
Revenue Bonds 2018 & 2009 & COI
Total Debt Service Annual Ex ense
Fiscal
Interest & Total
Interest &
Total
Interest & Total
Rev.Bonds
.. .
Year
Principal Amortization Debt Service
Principal Amortization
Debt Service
Principal Amortization Debt Service
& COP'S
..
.
2014-2015
$3,865,000
$1,504,939
$5,369,939
$168,860
$18,258
$187,118
$4,033,860
$1,523,197
$5,557,057
$36,010,000
$533,385
$36,543,385
2015-2016
2,210,000
1,413,772
3,623,772
173,251
13,868
187,119
2,383,251
1,427,640
3,810,891
33,800,000
360,134
34,160,134
2016-2017
2,300,000
1,304,036
3,604,036
177,757
9,362
187,119
2,477,757
1,313,398
3,791,155
31,500,000
182,377
31,682,377
2017-2018
2,405,000
1,225,938
3,630,938
182,377
742
187,119
2,587,377
1,230,680
3,818,057
29,095,000
-
29,095,000
2018-2019
-
1,025,006
1,025,006
-
-
-
-
1,025,006
1,025,006
21,806,631
-
21,806,631
2019-2020
2,145,000
604,851
2,749,851
,-
2,145,000
604,851
2,749,851
19,447,392
19,447,392
2020-2021
1,740,000
542,226
2,282,226
1,740,000
542,226
2,282,226
75,733,331
75,733,331
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
2023-2024
7,090,000
891,130
7,981,130
7,090,000
891,130
7,981,130
60,093,594
60,093,594
Fiscal
Year
Total
Debt
Service
Operating
Revenue
Total Operating
Expenses less
Depreciation *1
Debt Service
Non -Operating
Revenue &
Contributions
Covera a S mary
Debt Service
et Coverage
Revenue *2 (Net Revenue) *3
Capital
Improvement
Fees Concord
Adjusted Net
Revenue *4
Debt Service
Coverage
(Adj. Net Revenue) *5
Debt Ratios
Annual Debt Annual Debt Total Debt
Service to Service per Outstanding
Operating Exp. Customer Per Customer
2013-2014
$5,881,269
$74,002,008
$77,615,849
$36,133,744
$32,519,903
5.53
$12,045,375
$20,474,528
3.48
7.58%
$35.31
$243.60
2014-2015
$5,557,057
$84,516,434
$81,609,848
$32,311,417
$35,218,003
6.34
$9,570,789
$25,647,214
4.62
6.81%
$33.01
$217.10
2015-2016
3,810,891
87,734,536
74,907,487
41,448,971
54,276,020
14.24
12,215,650
42,060,370
11.04
5.09%
22.28
199.74
2016-2017
3,791,155
88,625,441
78,572,632
47,219,331
57,272,140
15.11
11,521,301
45,750,839
12.07
4.83%
22.36
186.85
2017-2018
3,818,057
92,496,435
88,119,374
51,841,253
56,218,314
14.72
15,696,145
40,522,169
10.61
4.33%
22.51
171.56
2018-2019
1,025,006
85,678,166
52,295,571
70,760,830
104,143,425
101.60
16,118,584
88,024,841
85.88
1.96%
5.98
127.15
2019-2020
2,749,851
87,222,779
79,462,379
77,121,828
84,882,228
30.87
18,476,702
63,795,526
23.20
3.46%
15.93
112.65
2020-2021
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%
70.98
381.37
2022-2023
12,076,410
69,991,294
87,150,184
115,980,445
98,821,555
8.18
17,122,000
81,699,555
6.77
13.86%
71.02
398.56
2023-2024
1 7,981,130
1 87,830,769
1 93,946,893
1 104,507,179
98,391,055
12.33
16,389,436
1 82,001,619
10.27
8.50%
47.11
354.73
Note: Details regarding the District's outstanding debt can be found in the notes to the financial statements.
*1 2014-2015 includes implementaion 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).
Debt Restrictions:
Revenue Pledge & Covenant: The District pledges
Property Tax Revenue along with its ability to raise Sewer
Service Charge (SSQ rates. Debt Coverage requirements
are discussed in thefootnotes to the left,
Source: fang ls�s2Q2�isR,99y drFFINAt4 Ent a�cm nijt��onMgge� inc Agenda Pack�t0- Page 199 of 230
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*
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
75,912,452
99,312
2022
65,403,313
95,047
2023
62,269,988
0
Debt as a
Percentage
of Per Capita
Personal Income
0.158%
0.189%
0.211%
0.242%
0.284%
0.391%
4 474%
.131%
0.145%
0.000%
Population**
1,110,971
1,126,027
10 1,138,645
1,147,439
1,150,215
153,526
152,333
1,161,413
1,156,966
0
* Includes lease and SBITA liabilities payable as reported at June 30. The District began reporting these numbers in FY'22
** U.S. Department of Commerce, Bureau of Economic Analysis. Estimates for 4621-2022 reflect county population estimates available as of November 2023.
- 1%
<*466o)
Debt
per
Capita
36.52
32.45
30.00
27.61
2 5.3 0
18.90
16.88
65.36
56.53
0.00
71
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 200 of 230
Central Contra Costa Sanitary District
Demographic and Economic Data
Population Served
Last Ten Calendar Years
Inside District Concord/ Total
As Of January 1 Boundaries Clayton Served
2015 339,029 137,357 476,386
2016 340,667 140,916 481,583
2017 344,591 139,654 484,245
2018 348,333 140,590 488,923
2019 352,733 141,542 494,275
2020 342,149 141,480 483,629
2021 344,254 140,541 484,795
2022 352,832 34,497 487,329
2023 352,183 ,489 485,672
2024 351,379 , 1 6 483,575
Source: Central Contra Costa Sanitary District Environmental Services Division
List of Ten Largest Employers in Contra Costa County
Last Year and Nine Years Ago*
Employers
Chevron Corporation
Kaiser Permanente
Bio-Rad Laboratories
John Muir Medical Center
La Raza Market
USS-POSCO Industries
Doctors Medical Center
John Muir Health
Texaco Inc.
CKS Employee Benefit Systems, Inc.
Contra Costa Newspapers, Inc.
DMC Foundation
Saint Mary's College of California
Walmart Stores, Inc.
All Others
Total
23*
Estimated
% of Total County
Employees
k
Employment
10,000+
T-1
1.88%
000+
T-1
1.88%
00 -4,999
T-2
0.56%
000-4,999
T-2
0.56%
,000-4,999
T-2
0.56%
1,000-4,999
T-2
0.56%
500,100
94.00%
532,100 100.0%
Chance
1.2%
1.1%
0.6%
1.0%
1.1%
-2.2%
0.2%
0.5%
-0.3%
-0.4%
2014*
Estimated
% of Total County
Employees
Rank
Employment
1,500
1
0.30%
1,500
2
0.30%
1,223
3
0.24%
1,000
4
0.20%
984
5
0.19%
960
6
0.19%
930
7
0.18%
917
8
0.18%
759
9
0.15%
496,327
98.07%
506,100 100.0%
Source: * County of Contra Costa, California, Annual Comprehensive Financial Report for June 30, 2023, Statistical Section, principal employers excludes government employers.
72
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 201 of 230
Central Contra Costa Sanitary District
Demographic and Economic Statistics
Contra Costa County
Last Ten Fiscal Years
Fiscal Year
Ended
June 30
2014
Population*
1,110,971
Personal
Income*
$71,164,468,000
Per Capita
Personal
Income*
$64,056
Average Annual
Unemployment
Rate**
6.2%
2015
1,126,027
77,914,957,000
69,195
5.0%
2016
1,138,645
82,204,425,000
72,195
4.4%
2017
1,147,439
87,810,279,000 40�
76,527
3.8%
2018
1,150,215
94,900,003,000
82,506
2.7%
2019
1,153,526
98,423,318,000
85,324
7.9%
2020
1,152,333
106,318,748,00
92,264
5.3%
2021
1,161,413
115,342,618,000 116
99,312
6.4%
2022
1,156,966
109,965,993,000
95,047
3.5%
2023
4.1%
* U.S. Department of Commerce, Bureau of Economic Analysis. Estimates for 2021-2022 reflect county population estim;
** State of California, Employment Development Department (EDD), annual calendar figure.
73
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 202 of 230
Central Contra Costa Sanitary District
Full-time Equivalent Positions Filled by Department
Last Ten Fiscal Years
Full-time Equivalent Positions Filled as of June 30
Department
2015
2016
2017
2018 2019
2020
2021
2022
2023
2024
Administration
46
49
43
43 41
44
51
50
52
57
Engineering
72
88
88
89 90
89
90
92
83
85
Operations
Collection Systems
56
55
55
53
55
55
54
54
Optimization
-
-
-
-
-
-
-
8
9
Plant
88
79
83
81 77
81
75
73
74
68
Pumping Station
8
7
7
7 12
7
7
6
7
6
Operations Total
152
141
145
143
141
137
134
143
137
District Total
270
278
274
274
278
276
278
276
279
Number of Retirees and Surviving Spouses as of June 30
Last Ten Fiscal Years
District Total 244 249 259 278 268 269 261 275 275 270
Source: Central Contra Costa Sanitary District Finance and Human Resources Divisions
74
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 203 of 230
Central Contra Costa Sanitary District
Capital Asset and Operating Statistics
Last Ten Calendar or Fiscal Years
Millions of Gallons per Day (mgd)
Treatment Plant
Year
2014
2015
2016
2017
2018
2019
2020
2021
2022
Treatment Plant Permitted Capacity
Calendar
53.8
53.8
53.8
53.8
53.8
53.8
53.8
53.8
53.8
Average Dry Weather Flow (ADWF)
Calendar
30.4
29.1
30.8
33.3
31.8
34.1
33.2
29.5
30.9
Wastewater Treated per day, Influent
Calendar
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
16,789
16,623
17,031
16,279
16,498
16,056
16,029
15,959
15,879
Ash to Reuse Site (Wet)*2
Fiscal
3,811
3,651
4,230
3,475
3,582
3,450
3,410
3,744
3,455
*1 In the multi -hearth furnace, the wet sludge is converted to dry ash. Water is added to the dry
ash as it is
loaded into trucks (ratio
of 60 percent ash to 40 percent water) to prevent the ash from blowing out of the
truck during transport
*2 Wet sludge, which at 19 to 27 percent solids, is pumped to the multiple -hearth furnace for incineration.
The table above shows the dry tons per year of sludge to the furnace, excluding the 73 to 81 percent water
in the wet sludge.
Collection Systems/Pumping Stations/Outfall Sewers
Other Data
Pipeline Miles
Calendar
1,519
1,519
1,519
1,535
1,535
1,535
1,535
1,535
1,541
Number of pumping stations (owned)
Calendar
16
16
16
15
15
15
15
15
15
Recycled Water
Recycled Water Distribution Pipeline (miles)-3
Calendar
14.3
14.6
4.6
44
14.6
14.6
14.6
14.6
13.5
13.8
Average Recycled Water Produced (million gallons per day)
Calendar
1.6
1.7
1.6
1.6
1.6
1.4
1.5
1.7
Number of Recycled Water Customers Sites
Calendar
29
43
4
47
49
50
58
53
57
Commercial Truck Fill Use (million gallons per year)
Calendar
0.3
4.4
0.4
0.6
0.6
4.6
4.8
5.5
0.6
Commercial Truck Fill Customers
Calendar
11
37
26
14
13
12
6
9
18
Estimated Residential Fill Station Use (million gallons per year)
Calendar
N/A
11.8
6.5
2.5
2.3
1.3
1.0
5.1
6.7
Residential Fill Station Customer Visits
Calendar
55,552
28,598
11,633
9,780
5,671
4,635
22,208
29,124
*3 In 2021, pipeline miles only include active pressurized recycled water mains and laterals.
1
1
Household Hazardous Waste CHH - Inception 1997/1998
Program Participation (Number of cars)
Fiscal
3
33A68
33,037
35,640
36,108
27,818
35,634
33,658
30,327
Percentage of Households in Service Area
Fiscal
1 /o
16.8%
16.7%
18.1%
18.4%
14.0%
17.9%
16.7%
14.9%
Operating Cost per Car ,0'
Fiscal
$78
$72
$80
$77
$78
$100
$95
$88
$105
Operating Cost per Hoursehold
Fiscal
/ $13.25
$12.43
$13.64
$14.21
$14.59
$14.29
$17.24
$14.99
$16.00
Operating Cost per Pound
Fiscal
$1.24
$1.13
$1.24
$1.21
$1.27
$1.64
$1.24
$1.36
$1.74
Pounds of HHW per Car
Fiscal
63
64
65
64
61
61
76
65
61
Pharmaceutical Collection Program - Inception 2009
Number of Collection Sites
'TEalendar
13
13
13
13
13
12
12
8
7
Pounds of Expired or Unwanted medications Collected
Calendar
14,041
15,366
16,485
17,337
17,178
9,918
5,645
5,396
5,662
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:
279 full-time equivalent employees (298 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 (4-Collection Sites)
Retail HHW Collection Program
Type Of Treatment:
Discharge - Secondary; Reclamation - Tertiary
Service Area:
146 square miles
Total Population Served:
483,575 (HHW service area 518,835)
Sewer Service Charge:
$697 for single family homes, $622 for multi -family homes, and $322 for accessory dwelling units.
Source: Central Contra Costa Sanitary District records
/ 5
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 204 of 230
Page 99 of 114
Attachment 2
Qk*
CENTRAL CONTRA COSTA SANITARY DISTRICT
MEMORANDUM ON INTERNAL CONTROL
AND
REQUIRED COMMUNICATIONS
FOR THE YEAR ENDED
JUNE 30, 2024
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 205 of 230
Page 100 of 114
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November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 206 of 230
Page 101 of 114
CENTRAL CONTRA COSTA SANITARY DISTRICT
MEMORANDUM ON INTERNAL CONTROL
AND
REQUIRED COMMUNICATIONS
For the Year Ended June 30, 2024
Table of Contents
Memorandum on Internal Control........
Page
................. I
RequiredCommunications................................................................................................................ 3
SignificantAudit Matters............................................................................................................... 3
Qualitative Aspects of Accounting Practices................................................................ 3
Difficulties Encountered in performing the Au......................................................4
Corrected and Uncorrected Misstatements.............................................................................4
Disagreements with Management...........................................................................................4
Management Representations................................................................................................. 5
Management Consultations with Other Independent Accountants.......................................5
Other Audit Findings or Issues................................................................................................ 5
OtherMatters ... ............................................................................................................ 5
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 207 of 230
Page 102 of 114
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November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 208 of 230
Page 103 of 114
tj\MAZE
&ASSOCIATES
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, 2024, in accordance with auditing standards generally
accepted in the United States of America, we considered the District's internal control over financial reporting
(internal control) as a basis for designing our auditing procedures that are appropriate in the circumstances for
the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an
opinion on the effectiveness of the District's internal control. Accordingly, v do not express an opinion on the
effectiveness of the District's internal control. 7 Will,
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the District's financial
statements will not be prevented, or detected and corrected, on a timely basis.
Our consideration of internal control was for the limited purpose described in the first paragraph and was not
designed to identify all deficiencies in internal control that might be material weaknesses. In addition, because
of inherent limitations in internal control, including the 'possibility of management override of controls,
misstatements due to error or fraud may occur and not be detected by such controls. Given these limitations
during our audit, we did not identify any deficiencies in internal control that we consider to be material
weaknesses. However, material weaknesses may exist that have not been identified.
This communication is intended solely for the information and use of management, Board of Directors, others
within the organization, and agencies and pass -through entities and is not intended to be and should not be used
by anyone other than these specified parties.
Pleasant Hill, California
DATE
Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
T 925.228.2800
e maze@mazeassociates.com
vw mazeassociates.com
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 209 of 230
Page 104 of 114
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2
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 210 of 230
Page 105 of 114
[%/�M AZ E
&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, 2024. 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 in our engagement letter to the Deputy
General Manager dated June 24, 2024, and in our email correspondence on November 11, 2024. Professional
standards also require that we communicate to you the following information related to our audit.
h r
Significant Audit Matters
Qualitative Aspects of Accounting Practices
Accounting Policies — Management is responsible for the selection and use of appropriate accounting policies.
The significant accounting policies used by the District are described in Note 1 to the financial statements. No
new accounting policies were adopted, and the applicatioij of existing policies was not changed during the year,
except as noted below.
The following pronouncements became effective, but did not have a material effect on the financial statements:
♦ � IE� GASB 100 — Accounting for Changes and ror Corrections
Unusual Transactions, Controversial or Emerging Areas - We noted no transactions entered into by the District
during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have
been recognized in the financial statements in the proper period.
Accounting Estimates - Accounting estimates are an integral part of the financial statements prepared by
management and are based on management's 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 were:
Estimated Fair Value of Investments: As of June 30, 2024, the District held approximately $46.1 million
of cash and investments as measured by fair value as disclosed in Note 2 to the financial statements.
Fair value is essentially market pricing in effect as of June 30, 2024. These fair values are not required
to be adjusted for changes in general market conditions occurring subsequent to June 30, 2024.
Accountancy Corporation
3478 Buskirk Avenue, Suite 217
Pleasant Hill, CA 94523
1 925.228,2800
e maze@mazeassociates.com
w mazeassociates.com
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 211 of 230
Page 106 of 114
Estimated Net Pension Liability and Pension -Related Deferred Outflows and Inflows of Resources:
Management's estimate of the net pension liability and deferred outflows/inflows of resources are
disclosed in Note 10 to the financial statements and are based on actuarial studies determined by a
consultant, which are based on the experience of the District. We evaluated the key factors and
assumptions used to develop the estimate and determined that it is reasonable in relation to the basic
financial statements taken as a whole.
Estimated Net OPEB Liability and OPEB-Related Deferred Outflows and Inflows of Resources:
Management's estimate of the net OPEB liability is disclosed in Note 9 to the financial statements and
is based on actuarial study determined by a consultant, which is based on the experience of the District.
We evaluated the key factors and assumptions used to develop the estimate and determined that it is
reasonable in relation to the basic financial statements taken as a whole.
Estimate of Depreciation: Management's estimate of the depreciation is based on useful lives
determined by management. These lives have been determined by management based on the expected
useful life of assets as disclosed in Note 1 to the financial statements. We evaluated the key factors and
assumptions used to develop the depreciation estimate and determined that it is reasonable in relation to
the basic financial statements taken as a whole. 04�hL�
Estimate of Compensated Absences: Accrued compensated absences which are comprised of accrued
vacation, holiday, and certain other compensating time is estimated using accumulated unpaid leave
hours and hourly pay rates in effect at the end of the fiscal year as disclosed in Note 1 to the financial
statements. We evaluated the key factors and assumptions used to develop the accrued compensated
absences and determined that it is reasonable irtelation to the basic financial statements taken as a
whole.
Disclosures — The financial statement disclosures are neutral,consistent, and clear.
. ('0411
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit,
other than those that are clearly trivial, and communicate them to the appropriate level of management. We did
not propose any audit adjustments that, in our judgement, could have a significant effect, either individually or
in the aggregate, on the District's financial reporting process.
Professional standards require us to accumulate all known and likely uncorrected misstatements identified
during the audit, other than those that are trivial, and communicate them to the appropriate level of management.
We have no such misstatements to report to the Board of Directors.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing
matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the
auditor's report. We are pleased to report that no such disagreements arose during the course of our audit.
4
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 212 of 230
Page 107 of 114
Management Representations
We have requested certain representations 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.
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 of 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 information.
We were engaged to report on the supplementary information, which accompany the financial statements but are
not required supplementary information. With respect to this supplemental information, we made certain
inquiries of management and evaluated the form, content, and methods of preparing the information to
determine that the information complies with accounting principles generally accepted in the United States of
America, the method of preparing it has not changed from the prior period, and the information is appropriate
and complete in relation to our audit of the financial statements. We compared and reconciled the supplemental
information to the underlying accounting records used to prepare the financial statements or to the financial
statements themselves.
This information is intended solely for the use of the Board of Directors and management and is not intended to
be, and should not be, used by anyone other than these specified parties.
Pleasant Hill, California
DATE
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r
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Attachment 3
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 215 of 230
Page 110 of 114
Introduction
Annual exercise to receive and accept
Central San's annual financial
statements
For year ended June 30, 2024
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
California Government Code § 26909
Must be delivered to California State
Controller's Office within 12 months of
end of fiscal year
Independent audit conducted by audit
firm Maze & Associates
Role of independent auditor versus
Central San management.
4
am
Ali
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 216 of 230 2
Page 111 of 114
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, 2024
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 100: Accounting
Changes and Error Corrections
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 217 of 230 3
Page 112 of 114
7
ACFR Highlights
4 --p
Statement of Net
Position
Two Year
Comparison
$Increase
% Increase
June 30, 2024
June 30, 2023 (Decrease)
(Decrease)
Total assets
$ 1,163,561,726
$ 1,074,204,242 $ 89,357,484
8.3%
Total deferred outflows
55,001,660
83,854,962 (28,853,302)
-57.9%
Total liabilities
133,135,865
129,587,326 11,999,349
47.5%
Total deferred inflows
50,057,155
65,456,298 (15,399,143)
-23.5%
Net position
Net investment in capital assets
857,800,710
781,637,137
77,456,565
9.9%
Restricted
75,704,428
197,102
7,416,988
4,833.8%
Unrestricted
169,999,228
181,181,342
(12,518,767)
-6.9
Total net position
$ 1,035,370,366
$ 890,244,841
$ 72,354,786
7.5%
ACFR Highlights
f
Net Position - 5 Year Trend
$1,100,000,000 -
$1,oso,000,000 — '�
$1,000,000,000 -
�r
$900,000,000
$850,000,000 �+
$800,000,000
$750,000,000
$700,000,000
$650,000,000,-k;
$600,000,000 ►"-m -�.
2020 2021 2022 2023 2024
■ Net Investment in Capital Assets ■ Restricted a Unrestricted
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 218 of 230 4
Page 113 of 114
5,CFR Highlights
Revenues, Expenses
& Changes
in
Net Position
- Two Year
Comparison
$ Increase
% Increase
June 30,2024
June 30,2023 (Decrease)
(Decrease)
Total revenues
$ 123,519,506
$ 100,296,021 $ 23,223,485
23.2%
Total expenses
119,983,166
113,330,918 6,652,248
5.9%
Income before capital contributions
3,536,340
(13,034,897) 16,571,237
-127.1%
Capital contributions
68,818,446
85,805,636 (16,987,190)
-19.8%
Increase in net position
72,354,786
72,770,739 (415,953)
-0.6%
Beginning net position
963,015,580
890,244,841 72,770,739
8.2%
Ending net position
$ 1,035,370, 666
$ 963,015,580 $ 22,354,789
7.5%
0
ft"
ACFR Highlights
Total Revenues
&
Expenses
5 Year Trend
$200,000,000
$180,000,000
$160,000,000
$140,000,000
I
$120,000,000
$100,000,000
$80,000,000
$60,000,000
t
$40,000,000
i
$20,000,000
W
W
$_
2020 2021
2022 2023 2024
■Total Revenue ■Total Expenses
10
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 219 of 230 5
Page 114 of 114
G FOA Award
Certificate of Achievement for Excellence in
Financial Reporting
Applied for annually with GFOA
Received award for FY 2022-23 ACFR in July 2024
24t" consecutive year receiving award
Intend to apply for award for FY 2023-24 ACFR
11
12
V�
Ooex` . F—, Off en Asvrcwtim
Certificate of
Achievement
for Excellence
in Financial
Reporting
Prc eo ed w
Central Contra Costa Sanitary District
California
Farem A —]Co .h--
Fw she Fiscal Yrar Euded
J— 30. 2023
n . P ar—H
November 19, 2024 Regular FINANCE Committee Meeting Agenda Packet - Page 220 of 230