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HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 12/14/2022BOARD OF DIRECTORS DECEMBER 14, 2022 East Valley Water District was formed in 1954 and provides water and wastewater services to 104,000 residents within the cities of San Bernardino and Highland, and portions of San Bernardino County. EVWD operates under the direction of a 5­member elected Board. GOVERNING BOARD EXECUTIVE MANAGEMENT Phillip R. Goodrich Chairman of the Board Michael Moore General Manager/CEO James Morales, Jr. Vice­Chairman Brian W. Tompkins Chief Financial Officer Chris Carrillo Governing Board Member Jeff Noelte Director of Engineering & Operations Ronald L. Coats Governing Board Member Kelly Malloy Director of Strategic Services David E. Smith Governing Board Member Kerrie Bryan Director of Administrative Services Justine Hendricksen District Clerk Patrick Milroy  Operations Manager Rocky Welborn  Water Reclamation Manager Board of Directors Regular Meeting December 14, 2022 ­ 5:30 PM 31111 Greenspot Road, Highland, CA 92346 www.eastvalley.org PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District’s office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District’s website at eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability­related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above agendized public meeting should be directed to the District Clerk at (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE PRESENTATIONS AND CEREMONIAL ITEMS Introduction of Newly Hired Employee Heather Uribe, Public Affairs Representative ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. 1.AGENDA This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. a.Approval of Agenda 2.APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a.Approve the November 9, 2022 Regular Board Meeting Minutes b.Approval of Directors' Fees and Expenses for November 2022 c.October 2022 Disbursements: Accounts payable disbursements for the period include check numbers 260195 through 260327, bank drafts, and ACH payments in the amount of $1,730,475.61 and $446,349.19 for payroll d.Financial Statements for Quarter Ended September 30, 2022 e.Financial Statements for October 2022 f.Investment Transaction Report for Month Ended November 30, 2022 3.INFORMATIONAL ITEMS a.Review the Draft Popular Annual Financial Report (PAFR) for Year Ended June 30, 2022 b.Review AB 2449 and SB 1439 Legislation 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider approval of the Annual Comprehensive Financial Report (Annual Report) for Year Ended June 30, 2022 b.Consider approval of Plant 108 Reservoir Rehabilitation Project Change Order No. 3 c.Consider approval of Master Services Agreement with Krieger & Stewart for Water Main Seismic Retrofit Project d.Consider approval to Surplus Trucks and Equipment e.Consider approval of Board Reorganization A) Elect official officers for the positions of Board President and Vice President B) Appointment of General Manager/Chief Executive Officer, Board Secretary and Chief Financial Officer C) Set the time, day and place for holding meetings. 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSDECEMBER 14, 2022East Valley Water District was formed in 1954 and provides water and wastewater services to104,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD EXECUTIVE MANAGEMENTPhillip R. GoodrichChairman of the Board Michael MooreGeneral Manager/CEOJames Morales, Jr.Vice­Chairman Brian W. TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsRonald L. CoatsGoverning Board Member Kelly MalloyDirector of Strategic ServicesDavid E. SmithGoverning Board Member Kerrie BryanDirector of Administrative ServicesJustine HendricksenDistrict ClerkPatrick Milroy  Operations Manager Rocky Welborn  Water Reclamation Manager Board of Directors Regular Meeting December 14, 2022 ­ 5:30 PM 31111 Greenspot Road, Highland, CA 92346 www.eastvalley.org PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District’s office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District’s website at eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability­related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above agendized public meeting should be directed to the District Clerk at (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE PRESENTATIONS AND CEREMONIAL ITEMS Introduction of Newly Hired Employee Heather Uribe, Public Affairs Representative ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. 1.AGENDA This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. a.Approval of Agenda 2.APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a.Approve the November 9, 2022 Regular Board Meeting Minutes b.Approval of Directors' Fees and Expenses for November 2022 c.October 2022 Disbursements: Accounts payable disbursements for the period include check numbers 260195 through 260327, bank drafts, and ACH payments in the amount of $1,730,475.61 and $446,349.19 for payroll d.Financial Statements for Quarter Ended September 30, 2022 e.Financial Statements for October 2022 f.Investment Transaction Report for Month Ended November 30, 2022 3.INFORMATIONAL ITEMS a.Review the Draft Popular Annual Financial Report (PAFR) for Year Ended June 30, 2022 b.Review AB 2449 and SB 1439 Legislation 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider approval of the Annual Comprehensive Financial Report (Annual Report) for Year Ended June 30, 2022 b.Consider approval of Plant 108 Reservoir Rehabilitation Project Change Order No. 3 c.Consider approval of Master Services Agreement with Krieger & Stewart for Water Main Seismic Retrofit Project d.Consider approval to Surplus Trucks and Equipment e.Consider approval of Board Reorganization A) Elect official officers for the positions of Board President and Vice President B) Appointment of General Manager/Chief Executive Officer, Board Secretary and Chief Financial Officer C) Set the time, day and place for holding meetings. 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSDECEMBER 14, 2022East Valley Water District was formed in 1954 and provides water and wastewater services to104,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD EXECUTIVE MANAGEMENTPhillip R. GoodrichChairman of the Board Michael MooreGeneral Manager/CEOJames Morales, Jr.Vice­Chairman Brian W. TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsRonald L. CoatsGoverning Board Member Kelly MalloyDirector of Strategic ServicesDavid E. SmithGoverning Board Member Kerrie BryanDirector of Administrative ServicesJustine HendricksenDistrict ClerkPatrick Milroy Operations ManagerRocky Welborn Water Reclamation ManagerBoard of Directors Regular MeetingDecember 14, 2022 ­ 5:30 PM31111 Greenspot Road, Highland, CA 92346www.eastvalley.orgPLEASE NOTE:Materials related to an item on this agenda submitted to the Board after distribution of theagenda packet are available for public inspection in the District’s office located at 31111Greenspot Rd., Highland, during normal business hours. Also, such documents are availableon the District’s website at eastvalley.org and are subject to staff’s ability to post thedocuments before the meeting.Pursuant to Government Code Section 54954.2(a), any request for a disability­relatedmodification or accommodation, including auxiliary aids or services, that is sought in orderto participate in the above agendized public meeting should be directed to the District Clerkat (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE PRESENTATIONS AND CEREMONIAL ITEMS Introduction of Newly Hired Employee Heather Uribe, Public Affairs Representative ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. 1.AGENDA This agenda contains a brief general description of each item to be considered. Except as otherwise provided by law, no action shall be taken on any item not appearing on the following agenda unless the Board of Directors makes a determination that an emergency exists or that a need to take immediate action on the item came to the attention of the District subsequent to the posting of the agenda. a.Approval of Agenda 2.APPROVAL OF CONSENT CALENDAR All matters listed under the Consent Calendar are considered by the Board of Directors to be routine and will be enacted in one motion. There will be no discussion of these items prior to the time the board considers the motion unless members of the board, the administrative staff, or the public request specific items to be discussed and/or removed from the Consent Calendar. a.Approve the November 9, 2022 Regular Board Meeting Minutes b.Approval of Directors' Fees and Expenses for November 2022 c.October 2022 Disbursements: Accounts payable disbursements for the period include check numbers 260195 through 260327, bank drafts, and ACH payments in the amount of $1,730,475.61 and $446,349.19 for payroll d.Financial Statements for Quarter Ended September 30, 2022 e.Financial Statements for October 2022 f.Investment Transaction Report for Month Ended November 30, 2022 3.INFORMATIONAL ITEMS a.Review the Draft Popular Annual Financial Report (PAFR) for Year Ended June 30, 2022 b.Review AB 2449 and SB 1439 Legislation 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider approval of the Annual Comprehensive Financial Report (Annual Report) for Year Ended June 30, 2022 b.Consider approval of Plant 108 Reservoir Rehabilitation Project Change Order No. 3 c.Consider approval of Master Services Agreement with Krieger & Stewart for Water Main Seismic Retrofit Project d.Consider approval to Surplus Trucks and Equipment e.Consider approval of Board Reorganization A) Elect official officers for the positions of Board President and Vice President B) Appointment of General Manager/Chief Executive Officer, Board Secretary and Chief Financial Officer C) Set the time, day and place for holding meetings. 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN BOARD OF DIRECTORSDECEMBER 14, 2022East Valley Water District was formed in 1954 and provides water and wastewater services to104,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.GOVERNING BOARD EXECUTIVE MANAGEMENTPhillip R. GoodrichChairman of the Board Michael MooreGeneral Manager/CEOJames Morales, Jr.Vice­Chairman Brian W. TompkinsChief Financial OfficerChris CarrilloGoverning Board Member Jeff NoelteDirector of Engineering & OperationsRonald L. CoatsGoverning Board Member Kelly MalloyDirector of Strategic ServicesDavid E. SmithGoverning Board Member Kerrie BryanDirector of Administrative ServicesJustine HendricksenDistrict ClerkPatrick Milroy Operations ManagerRocky Welborn Water Reclamation ManagerBoard of Directors Regular MeetingDecember 14, 2022 ­ 5:30 PM31111 Greenspot Road, Highland, CA 92346www.eastvalley.orgPLEASE NOTE:Materials related to an item on this agenda submitted to the Board after distribution of theagenda packet are available for public inspection in the District’s office located at 31111Greenspot Rd., Highland, during normal business hours. Also, such documents are availableon the District’s website at eastvalley.org and are subject to staff’s ability to post thedocuments before the meeting.Pursuant to Government Code Section 54954.2(a), any request for a disability­relatedmodification or accommodation, including auxiliary aids or services, that is sought in orderto participate in the above agendized public meeting should be directed to the District Clerkat (909) 885­4900 at least 72 hours prior to said meeting.In order to comply with legal requirements for posting of agenda, only those items filedwith the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesdaymeeting not requiring departmental investigation, will be considered by the Board ofDirectors.CALL TO ORDERPLEDGE OF ALLEGIANCEPRESENTATIONS AND CEREMONIAL ITEMSIntroduction of Newly Hired EmployeeHeather Uribe, Public Affairs RepresentativeROLL CALL OF BOARD MEMBERSPUBLIC COMMENTSAny person wishing to speak to the Board of Directors is asked to complete a SpeakerCard and submit it to the District Clerk prior to the start of the meeting. Each speaker islimited to three (3) minutes, unless waived by the Chairman of the Board. Under the Stateof California Brown Act, the Board of Directors is prohibited from discussing or takingaction on any item not listed on the posted agenda. The matter will automatically bereferred to staff for an appropriate response or action and may appear on the agenda at afuture meeting.1.AGENDAThis agenda contains a brief general description of each item to be considered.Except as otherwise provided by law, no action shall be taken on any item notappearing on the following agenda unless the Board of Directors makes adetermination that an emergency exists or that a need to take immediate action onthe item came to the attention of the District subsequent to the posting of theagenda.a.Approval of Agenda2.APPROVAL OF CONSENT CALENDARAll matters listed under the Consent Calendar are considered by the Board ofDirectors to be routine and will be enacted in one motion. There will be nodiscussion of these items prior to the time the board considers the motion unlessmembers of the board, the administrative staff, or the public request specific itemsto be discussed and/or removed from the Consent Calendar.a.Approve the November 9, 2022 Regular Board Meeting Minutes b.Approval of Directors' Fees and Expenses for November 2022 c.October 2022 Disbursements: Accounts payable disbursements for the period include check numbers 260195 through 260327, bank drafts, and ACH payments in the amount of $1,730,475.61 and $446,349.19 for payroll d.Financial Statements for Quarter Ended September 30, 2022 e.Financial Statements for October 2022 f.Investment Transaction Report for Month Ended November 30, 2022 3.INFORMATIONAL ITEMS a.Review the Draft Popular Annual Financial Report (PAFR) for Year Ended June 30, 2022 b.Review AB 2449 and SB 1439 Legislation 4.DISCUSSION AND POSSIBLE ACTION ITEMS a.Consider approval of the Annual Comprehensive Financial Report (Annual Report) for Year Ended June 30, 2022 b.Consider approval of Plant 108 Reservoir Rehabilitation Project Change Order No. 3 c.Consider approval of Master Services Agreement with Krieger & Stewart for Water Main Seismic Retrofit Project d.Consider approval to Surplus Trucks and Equipment e.Consider approval of Board Reorganization A) Elect official officers for the positions of Board President and Vice President B) Appointment of General Manager/Chief Executive Officer, Board Secretary and Chief Financial Officer C) Set the time, day and place for holding meetings. 5.REPORTS a.Board of Directors’ Reports b.General Manager/CEO Report c.Legal Counsel Report d.Board of Directors’ Comments ADJOURN Agenda Item #2a December 14, 20221 Meeting Date: December 14, 2022 Agenda Item #2a Consent Item 6 1 5 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approve the November 9, 2022 Regular Board Meeting Minutes RECOMMENDATION That the Board of Directors approve the November 9, 2022 Regular Board meeting minutes as submitted. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management B. Utilize Effective Communication Methods REVIEW BY OTHERS This agenda item has been reviewed by Administration. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS Draft November 9, 2022 regular board meeting minutes. Regular Board Meeting & Public Hearing Meeting Date: November 9, 2022 CALL TO ORDER The Chairman of the Board called the meeting to order at 4:30 p.m. ROLL CALL OF BOARD MEMBERS PRESENT Directors: Coats, Goodrich, Morales ABSENT Directors: Carrillo, Smith STAFF Michael Moore General Manager/CEO; Jeff Noelte, Director of Engineering and Operations; Kelly Malloy, Director of Strategic Services; Brian Tompkins, Chief Financial Officer; Kerrie Bryan, Director of Administrative Services; Rocky Welborn, Water Reclamation Manager; Pat Milroy, Operations Manager; Rudy Guerrero, Finance Supervisor; Jason Wolf, Senior Engineer; William Ringland, Public Affairs/Conservation Manager; Justine Hendricksen, District Clerk LEGAL COUNSEL Jean Cihigoyenetche GUESTS Members of the public Subject to approval 5 8 9 PUBLIC COMMENTS Chairman Goodrich declared the public participation section of the meeting open at 4:31 p.m. There being no written or verbal comments, the public participation section was closed. 1.APPROVAL OF AGENDA a.Approval of Agenda A motion was made by Director Coats, seconded by Vice Chairman Morales, that the Board approve the November 9, 2022 agenda as submitted. The motion carried by the following: Ayes: Coats, Goodrich, Morales Noes: None Absent: Carrillo, Smith 2.RECESS INTO CLOSED SESSION The Board entered into Closed Session at 4:32 p.m. as provided in the Ralph M. Brown Act Government Code Sections 54956.9(e)(3) and 54956(d)(1) to discuss the items listed on the agenda. RECONVENE THE MEETING The Board reconvened the meeting at 5:30 p.m. PLEDGE OF ALLEGIANCE Chairman Goodrich led the flag salute. ROLL CALL OF BOARD MEMBERS PRESENT Directors: Coats, Goodrich, Morales ABSENT Directors: Carrillo, Smith ANNOUNCEMENT OF CLOSED SESSION ACTIONS With respect to Item #2.a.: Legal Counsel stated that the Board considered a torte claim for damages filed by Mr. Dale Downs, and upon consideration of the claim, a motion was made by Vice Chairman Morales, seconded by Director Coats and by a unanimous vote by the Board members present that the claim be rejected. With respect to Item #2.b.: No reportable action taken. 5 8 9 PRESENTATIONS AND CEREMONIAL ITEMS •Presentation to Norman Terry for 25 Years of Dedicated Public Service The General Manager/CEO presented Resolution 2022.18 to Mr. Norman Terry. PUBLIC COMMENTS Chairman Goodrich declared the public participation section of the meeting open at 5:35 p.m. There being no written or verbal comments, the public participation section was closed. 3.APPROVAL OF CONSENT CALENDAR a.Approval the October 12, 2022 Regular Board Meeting Minutes b.Approval the October 26, 2022 Regular Board Meeting Minutes c.Investment Transaction Report for Month Ended October 31, 2022 d.Approval of Directors’ Fees and Expenses for October 2022 A motion was made by Director Coats, seconded by Vice Chairman Morales, that the Board approve the Consent Calendar as submitted. The motion was carried by the following vote: Ayes: Coats, Goodrich, Morales Noes: None Absent: Carrillo, Smith 4.INFORMATIONAL ITEMS a.Legislative Update The Director of Strategic Services provided and overview of the District’s Legislative Program. She stated that during the last legislative session we saw a significant number of bills passed relating to a wide variety of topics, and the District is anticipating a continued focus on climate change initiatives, drought management, and conservation regulations during the upcoming session. Ms. Malloy introduced the District’s Legislative Advocate, Ms. Pilar Onate-Quintana, who provided a legislative session summary. Ms. Onate-Quintana stated that her team actively monitored over 72 pieces of legislation and reviewed key bills that were passed into law. She also discussed the next 2-year session and the wave of new lawmakers in 2023, the administration’s water strategy, and the state budget. Ms. Onate-Quintana and staff responded to questions from the Board of Directors. 5 8 9 5.DISCUSSION AND POSSSIBLE ACTION ITEMS a.Formation of Community Facilities District (CFD) 2022-1 (Palm & Highland); Consider Adoption of Resolution 2022.21, CFD 2022-1 Resolution 2022.01, CFD 2022-1 Resolution 2022.02, and CFD 2022-1 Ordinance No. 1; Public Hearing The Chief Financial Officer provided information regarding the formation of Community Facilities District 2022-1 (Palm & Highland). He stated that included is a public report prepared by District’s Special Tax Consultant, Koppel & Gruber, for entry into the record of the public hearing. That the report encapsulates all the items being discussed at this evening’s meeting. The report includes: a description of the CFD and facilities to be financed, a cost estimate of the facilities, boundaries of the CFD and the method of levying special taxes within the CFD. Chairman Goodrich stated that this is the time and place set for a duly noticed Public Hearing regarding the proposed establishment of Community Facilities District No. 2022-01 (Palm & Highland) for East Valley Water District, the proposed Rate and Method of Apportionment of Special taxes with respect to the Community Facilities District and the proposed issuance of bonds of the Community Facilities District. CHAIRMAN GOODRICH OPENED THE PUBLIC HEARING AT 6:18 P.M. Chairman Goodrich declared the public participation section of the meeting open at 6:18 p.m. No public comments received. CHAIRMAN GOODRICH ANNOUNCED THE PUBLIC HEARING CLOSED AND ADJOURNED TO THE REGULAR BOARD MEETING AT 6:19 P.M. Vice Chairman Morales asked if there is any financial risk to the District regarding this action. A motion was made by Director Coats, seconded by Vice Chairman Morales, that the Board adopt Resolution 2022.21 and CFD 2022-1 Resolution 2022.01 as submitted. The motion carried by the following roll call vote: Ayes: Coats, Goodrich, Morales Noes: None Absent: Carrillo, Smith Chairman Goodrich stated that the Resolutions adopted establish the Community Facilities District, authorize the levy of special taxes within the Community Facilities District in accordance with the Rate and Method of Apportionment of Special taxes, determine the necessity to incur bonded indebtedness and call an election within the 5 8 9 Community Facilities District, which election is to be held at the time by the Secretary, as the Community Facilities District has received from all owners of taxable property within the Community Facilities District waivers as to the time for holding the election. CERTIFYING RESULTS OF ELECTION FOR COMMUNITY FACILITIES DISTRICT 2022-1 (HIGHLAND & PALM) The Secretary stated that all ballots have been cast in connection with the election for Community Facilities District No. 2022-1 of East Valley Water District and the elections have now been closed. The results of said elections and the number of votes cast for and against Propositions A, B, and C were unanimous, four (4) votes in favor of all propositions. A motion was made was made by Vice Chairman Morales, seconded by Director Coats that the Board adopt CFD 2022-1 Resolution 2022.02 as submitted. The motion carried by the following roll call vote: Ayes: Coats, Goodrich, Morales Noes: None Absent: Carrillo, Smith Chairman Goodrich stated that with respect to authorizing the levy of a special tax within the Community Facilities District a vote is needed. A motion was made by Vice Chairman Morales, seconded by Director Coats that the Board adopt CFD 2022-1 Ordinance No. 1 as submitted. The motion carried by the following roll call vote: Ayes: Coats, Goodrich, Morales Noes: None Absent: Carrillo, Smith b.Consider Approval of Agreement for Low-Income Household Water Assistance Program (LIHWP) with Horne LLC, to Disperse Grant Funding The Chief Financial Officer stated that the US Department of Health and Human Services, in conjunction with the California Department of Community Services and Development, established a Low-Income Household Water Assistance Program to help low-income residential water customers who have fallen behind on payment of their water utility bills. East Valley Water District must first enroll in the LIHWAP program and then enter into a Direct Payment Agreement with Horne LLP. The program directly pays off delinquent water/sewer bills of qualified customers. After determining eligibility, Horne LLP will disperse funding on behalf of delinquent water customers. 5 8 9 The Chief Financial Officer answered several questions from the Board of Directors. A motion was made by Director Coats, seconded by Vice Chairman Morales, that the Board approve the District Payment Agreement with Horne LLP to receive federally funded Low-Income Household Water Assistance Program grant funds to be applied to the accounts of eligible District customers through October 31, 2023 and authorized the General Manager/CEO to execute the Agreement and any related documents, and take any and all actions necessary, required, or advisable to implement the Agreement, including delegations to a Project Coordinator to administer the Agreement. The motion was carried by the following vote: Ayes: Coats, Goodrich, Morales Noes: None Absent: Carrillo, Smith c.Consider Authorization to Transfer Unclaimed Funds into the District’s General Fund The Finance Supervisor reviewed the process and procedure the District must take for the purpose of unencumbering stale-dated checks and keeping the related funds from escheating to the State. A motion was made by Vice Chairman Morales, seconded by Director Coats that the Board authorize the Chief Financial Officer to perform procedures prescribed in the Government Code and Civil Code of Procedure for the purpose of encumbering stale dated checks and keeping the related funds from escheating to the State as submitted. The motion carried by the following vote: Ayes: Coats, Goodrich, Morales Noes: None Absent: Carrillo, Smith 6.REPORTS a. Board of Directors’ Reports Director Coats reported on the following: November 8 he attended the City of San Bernardino Water Department meeting where they voted for a three-year computer replacement cycle, they also renewed several insurance policies. Vice Chairman Morales reported on the following: November 3 he discussed District business with the General Manager/CEO; he also attended San Bernardino Valley Municipal Water District’s workshop where they discussed a contract amendment regarding groundwater management; and on November 8 he attended Valley District’s Engineering workshop where they are working on an agreement with Metropolitan Water District for the foothill pump station and equipment procurements for the east 5 8 9 branch extension. He also commended Valley District on moving forward with their Strategic Plan. Chairman Goodrich reported on the following: November 3 he discussed District business with the General Manager/CEO. b. General Manager/CEO Report The General Manager announced the following: Phase 3 of the Regional Recycled Water Pipeline Project began on October 31, 2022. The project will be completed in phases and allow for water recycled at the Sterling Natural Resource Center to be conveyed to the new Weaver Basins Groundwater Recharge Facility. On October 31, the District initiated a water main line replacement project on 14th Street in Highland. This project will be performed in phases and is expected to be completed in mid-December 2022, depending on weather conditions. In observance of Veteran Day, East Valley Water District offices and customer service lines will be closed on Friday, November 11. Customers may pay their bill online, by phone, or at any 7-Eleven location. In observance of the Thanksgiving holiday, the November 23 Board meeting has been canceled and District offices and customer service lines will be closed November 24-25. The District is accepting applications for the Community Advisory Commission. East Valley Water District customers interested in applying may visit eastvalley.org/CAC for more information. Applications will be accepted through December 9, 2022. Last week the Employee Events Association (EEA) held a fundraising event for Hunt Elementary School. The Vice Principal attended the event and offered his appreciation to the EEA for their contributions to the school. The EEA purchased over 90 jackets and presented them to the school. Last Wednesday and Thursday District staff attended the ECS conference held at the SNRC. ECS is the electronic repository platform used for the District’s records retention program. c. Legal Counsel Report No report at this time. d. Board of Directors’ Comments 5 8 9 Director Coats congratulated fellow Board Members and thanked the public for allowing him the privilege to serve on the Board, he also wished staff, the Board and public a happy and healthy Thanksgiving. Vice Chairman Morales offered his appreciation to staff for the public outreach that is provided to the community. He also stated that it is a privilege to serve in this capacity and be selected by the ratepayers to continue to serve on the Board. No report at this time. ADJOURN Chairman Goodrich adjourned the meeting at 6:47 p.m. Phillip R. Goodrich, Board President Michael Moore, Board Secretary Agenda Item #2b December 14, 20221 Meeting Date: December 14, 2022 Agenda Item #2b Consent Item 6 0 4 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Approval of Directors' Fees and Expenses for November 2022 RECOMMENDATION That the Board of Directors approve the Directors' Fees and Expenses for November 2022 as submitted. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by Administration. FISCAL IMPACT The fiscal impact associated with this agenda item is $10,201.68 which is included in the current fiscal year budget. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Justine Hendricksen District Clerk ATTACHMENTS November 2022 Director Expense Reports Name: No. Date 1 11 / 03 2 11 / 09 3 11 / 17 4 11 / 21 5 11 / 28 6 11 / 29 7 11 / 30 _8_ 9 10 11 14 15 16 17 19 20 No. Date 1 11 / 29 2 11 / 29 3 4 5 6 7 8 9 10 EAST VALLEY WATER DISTRICT LEADERSMIP • PARTNERSMIP • STEWARDSMIP DIRECTOR EXPENSE / REIMBURSEMENT ACTIVITY SHEET Phillip R. Goodrich Month / Year: November Meeting / Event Description Mileage Agenda Review Regular Board Meeting EVWD Event ASBCSD Engineering & Oeerations Committee Meeting ACWA Event 144.00 ACWA Event Subtotal Meetings' Stipend ( 6 ) Meeting Stipend 225 225 0 225 225 225 225 Meetings I I Mileage 144.00 X o.625/mi 11 Expense Type Parking Lodging Miscellaneous Reimbursement Description Parking fee for ACWA conference Lodging for ACWA Conference Subtotal TOTAL PAYMENT I certify that the above is correct and accurate to the best of my knowledge. Date of Approval I 2022 Report Provided Written Oral 0 0 0 0 0 0 0 0 0 0 0 0 0 0 □ □ □ □ □ □ □ □ □ □ □ □ □ □ □ □ □ □ □ □ □ □ □ □ □ □ $1,350.001 $90.001 Reimbursement 70.00 483.56 $553.561 $1,993.56 I Phillip R. Goodrich Administration Signature 1 EAST VALLEY WATER DISTRICT LEADERSHIP • PARTNERSHIP • STEWARDSHIP DIRECTOR EXPENSE/ REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM Name: Phillip R. Goodrich Month / Year: November / 2022 ___ __.;.;..;;.;.... __ .;.....__=;:=..- As part of the District's commitment to transparency, please provide a brief description of any meeting/event(s) that you will not be providing a report during the Board meeting at which your Director's Expense Sheet is being approved. 1 Meeting Date: 11 / 3 / 2022 -,---,---::-....,....------------------Event Description: Agenda Review --==-------------------------Brief Description of Meeting/Event Value to EVWD With CEO and Vice Chair for review of current agenda 2 Meeting Date: 11 / 9 / 2022 -----------------------Event Description: Regular Board Meeting Brief Description of Meeting/Event Value to EVWD Attend reg. board meeting Ref. mins. This date 3 Meeting Date: 11 / 17 / 2022 -=,-.,,..,.,=--,-c----------------------E vent Description: EVWD Event -----------------------Brief Description of Meeting/Event Value to EVWD Attend District Thanksgiving luncheon and canned food drive 4 Meeting Date: 11 / 21 / 2022 ___ ,...,.... ___________________ _Event Description: ASBCSD -----------------------Brief Description of Meeting/Event Value to EVWD Attend local chapter of special distrcts monthly meeting at Yucaipa municipal presentation was on atmospheric river activity 5 Meeting Date: 11 / 28 / 2022 -----------------------Event Description: Engineering & Operations Committee Meeting Brief Description of Meeting/Event Value to EVWD Attend Engineering and ops committee meeting, updates on dept. activities and current and upcoming projects 2 EAST VALLEY WATER DISTRICT DIRECTOR EXPENSE/ REIMBURSEMENT ACTIVITY SHEET AB 1234 SUPPLEMENTAL REPORT FORM I Agenda Item #2c December 14, 20221 Meeting Date: December 14, 2022 Agenda Item #2c Consent Item 6 0 9 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: October 2022 Disbursements: Accounts payable disbursements for the period include check numbers 260195 through 260327, bank drafts, and ACH payments in the amount of $1,730,475.61 and $446,349.19 for payroll RECOMMENDATION That the Board of Directors (Board) approve the District's expense disbursements for the period October 1, 2022 through October 31, 2022 in the amount of $2,176,824.80. BACKGROUND / ANALYSIS In the continued effort to be fiscally transparent, the payment register for supplies, materials, services, and payroll for October 2022 is attached for review and approval. This process provides the Board and the public an opportunity to review the expenses of the District. Accounts Payable is processed weekly, while payroll is processed bi- weekly. Information to justify each expenditure is available through the Finance Department. Accounts payable disbursements for the period include check numbers 260195 through 260327, bank drafts, and ACH Payments in the amount of $1,730,475.61 and $446,349.19, for payroll. Significant expenses greater than or equal to $50,000 are further explained below: AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management PA YMENT #VENDOR DESCRIPTION A MOUNT 260245 S OUTHERN CALIFORNIA EDIS ON COMPANY ELECTRICIT Y COS T S DUE OCTOBER 2022 379,062.07$ 260303 CHEM-T ECH INTERNAT IONAL INC CHEMICALS FOR T REATMENT AT PLANT 134 88,784.55$ 260321 US BANCORP S ERVICE CENTER DIS TRICT-WIDE PURCHAS ING CARD PAYMENT DUE OCT OBER 2022 53,002.44$ Agenda Item #2c December 14, 20222 Meeting Date: December 14, 2022 Agenda Item #2c Consent Item 6 0 9 REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department. FISCAL IMPACT This item is funded in the current fiscal year budget. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS October 2022 Payment Register PAYMENT REGISTER OCTOBER 1, 2022 - OCTOBER 31, 2022 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 10/5/2022 260195 ALICIA VARGAS 84.15 10/5/2022 260196 OPENDOOR LABS INC 120.97 10/6/2022 260197 AMERICAN FIDELITY ASSURANCE COMPANY (FSA)1,421.36 10/6/2022 260198 BURRTEC WASTE/ 5455 Industrial pkwy 722.16 10/6/2022 260200 DIB'S SAFE & LOCK SERVICE 24.47 10/6/2022 260201 EVERSOFT, INC 260.45 10/6/2022 260202 EYE MED VISION CARE 1,601.80 10/6/2022 260203 GLOBAL EQUIPMENT COMPANY, INC 542.61 10/6/2022 260204 INLAND WATER WORKS SUPPLY CO 4,886.57 10/6/2022 260205 K & L HARDWARE 32.92 10/6/2022 260206 KENNETH LOUCKS 8,750.00 10/6/2022 260207 KONICA MINOLTA 69.64 10/6/2022 260208 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 13,178.70 10/6/2022 260209 SAN BERNARDINO VALLEY WATER CONSERVATION DISTRICT 226.40 10/6/2022 260210 SO CAL GAS 53.49 10/6/2022 260211 SOUTHERN CALIFORNIA EDISON COMPANY 15,991.55 10/6/2022 260212 TOM PONTON INDUSTRIES, INC.2,254.71 10/6/2022 260213 UNIFIRST CORPORATION 599.77 10/6/2022 260214 US BANK CORPORATE TRUST SERVICES 6,000.00 10/6/2022 260215 Wyatt's Paint & Body Shop, Inc.2,336.82 10/13/2022 260216 PATRON INVESTMENTS LLC 33.11 10/13/2022 260217 MARK GONZALEZ 328.08 10/13/2022 260218 D.R. HORTON 22.74 10/13/2022 260219 DIEGO GIL 14.55 10/13/2022 260220 LEIGHTON AND ASSOCIATES INC 2,691.70 10/13/2022 260221 BECKCO INC 2,600.20 10/13/2022 260223 RAMOS DEVELOPMENT INC 50.86 10/13/2022 260224 OOSRR LLC 77.47 10/13/2022 260225 MARLON WASHINGTON 430.01 10/13/2022 260226 Leobardo Estrada 1,867.10 10/13/2022 260227 AMERICAN FIDELITY ASSURANCE COMPANY 2,987.63 10/13/2022 260228 APPLEONE EMPLOYMENT SERVICE 955.82 10/13/2022 260229 AUTO UPHOLSTERY INC.1,220.62 10/13/2022 260230 AUTOZONE PARTS 18.75 10/13/2022 260231 CALIFORNIA WATER EFFICIENCY PARTNERSHIP 154.50 10/13/2022 260232 Calwest Refrigeration, Inc.857.50 10/13/2022 260233 CITY OF HIGHLAND 300.00 10/13/2022 260234 CULLIGAN OF ONTARIO 148.10 10/13/2022 260235 E Source Companies LLC 2,500.00 10/13/2022 260236 FedEx 62.75 10/13/2022 260237 FLEET MANAGEMENT DEPARTMENT 5,357.84 10/13/2022 260238 GEOSCIENCE SUPPORT SERVICES, ICN 31,356.00 10/13/2022 260239 INLAND WATER WORKS SUPPLY CO 8,993.85 10/13/2022 260240 K & L HARDWARE 28.64 PAYMENT REGISTER OCTOBER 1, 2022 - OCTOBER 31, 2022 Page 1 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 10/13/2022 260241 KOPPEL & GRUBER PUBLIC FINANCE 3,989.26 10/13/2022 260242 LOGICALIS, INC 1,945.00 10/13/2022 260243 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 2,462.00 10/13/2022 260244 SERGIO D. FIERRO 1,860.00 10/13/2022 260245 SOUTHERN CALIFORNIA EDISON COMPANY 379,062.07 10/13/2022 260246 UNIFIRST CORPORATION 523.75 10/13/2022 260247 YMCA OF THE EAST VALLEY 250.00 10/17/2022 260248 ACS SUPPORT 26.00 10/17/2022 260249 FRANCHISE TAX BOARD 50.00 10/20/2022 260250 VERDE AMARELLA LLC 20.06 10/20/2022 260251 SKKR 225.23 10/20/2022 260252 APREL C GLASS 24.59 10/20/2022 260253 ANTONIO CAMARENA 216.56 10/20/2022 260254 MARIBEL CHAVEZ 30.48 10/20/2022 260255 OPENDOOR LABS INC 174.38 10/20/2022 260256 MICHAEL LEMOS 15.56 10/20/2022 260257 ULYSSES CARRILLO 22.47 10/20/2022 260258 Dennis Craig 358.31 10/20/2022 260259 CITY OF SAN BERNARDINO-SOCCER 1,578.24 10/20/2022 260260 CITY OF SAN BERNARDINO-SOCCER 54.29 10/20/2022 260261 APPLEONE EMPLOYMENT SERVICE 2,300.93 10/20/2022 260262 AT&T 50.54 10/20/2022 260263 BURRTEC WASTE/ E. 111 MILL ST 1,275.23 10/20/2022 260264 CAL VALVE-JAQUELYN ROMERO 1,362.98 10/20/2022 260265 CHEM-TECH INTERNATIONAL INC 8,129.80 10/20/2022 260266 COUNTY OF SAN BERNARDINO/TAX COLLECTOR 916.48 10/20/2022 260267 CUTTING EDGE CATERING 5,527.78 10/20/2022 260268 DIB'S SAFE & LOCK SERVICE 40.38 10/20/2022 260269 EMPLOYMENT DEVELOPMENT DEPT.2,343.61 10/20/2022 260270 EUCLID MANAGERS, INSURANCE SERVICES INC.432.00 10/20/2022 260271 EXPERIAN 357.52 10/20/2022 260272 GNA FIRE ELECTRIC, INC.561.65 10/20/2022 260273 GOLDAK, INC.104.12 10/20/2022 260274 HATFIELD BUICK 350.10 10/20/2022 260275 HONEYWELL BUILDING SOLUTIONS 19,210.63 10/20/2022 260276 HYDROTECH ELECTRIC 9,626.52 10/20/2022 260277 INLAND DESERT SECURITY & COMMUNICATIONS, INC 746.20 10/20/2022 260278 INLAND WATER WORKS SUPPLY CO 1,479.23 10/20/2022 260279 Jonas Meza 275.00 10/20/2022 260280 K & L HARDWARE 244.04 10/20/2022 260281 KONICA MINOLTA 596.98 10/20/2022 260282 LOGICALIS, INC 7,647.75 10/20/2022 260283 MAGDANELI RODRIGUEZ 270.00 10/20/2022 260284 PETTY CASH 30.00 10/20/2022 260285 PETTY CASH 35.75 10/20/2022 260286 SOUTHERN CALIFORNIA EDISON COMPANY 25,413.70 10/20/2022 260287 TYLER BUSINESS FORMS 402.56 10/20/2022 260288 ULINE, INC.5,930.69 10/20/2022 260289 UNIVERSAL SELF STORAGE HIGHLAND 575.40 10/20/2022 260290 V.I.P. DOORS & GATES INC 2,800.00 10/21/2022 260291 BENNIE TED MAYANG 63.17 10/21/2022 260292 VANESSA VELARDE 650.00 PAYMENT REGISTER OCTOBER 1, 2022 - OCTOBER 31, 2022 Page 2 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 10/26/2022 260293 TANIKA CALDWELL 100.00 10/26/2022 260294 SYNERGIA PROCESSING CENTERS 61.97 10/26/2022 260295 NEW FORTUNE VC LLC 58.01 10/26/2022 260296 33 LLC 100.43 10/26/2022 260297 ANDREA M DELEON 32.39 10/26/2022 260298 MARILYN REDDICK 373.26 10/26/2022 260299 ACS SUPPORT 26.00 10/26/2022 260300 AT&T 1,863.67 10/26/2022 260301 BODY METRX- MARLY PAULUS 1,176.00 10/26/2022 260302 Calwest Refrigeration, Inc.595.00 10/26/2022 260303 CHEM-TECH INTERNATIONAL INC 88,784.55 10/26/2022 260304 COUNTY OF SAN BERNARDINO 40.47 10/26/2022 260305 DENTAL HEALTH SERVICES 189.40 10/26/2022 260306 FIRST CHOICE SERVICES 1,685.79 10/26/2022 260307 FRANCHISE TAX BOARD 50.00 10/26/2022 260308 HATFIELD BUICK 268.29 10/26/2022 260309 INLAND WATER WORKS SUPPLY CO 7,995.38 10/26/2022 260310 METLIFE SMALL BUSINESS CENTER (Dental)10,532.32 10/26/2022 260311 METROPOLITAN LIFE INS CO 93.30 10/26/2022 260312 Pro-West & Assoc., Inc 5,400.00 10/26/2022 260313 SAN BERNARDINO COUNTY FIRE PROTECTION DISTRICT 909.00 10/26/2022 260314 SAN BERNARDINO MUNICIPAL WATER DEPARTMENT 15,448.14 10/26/2022 260315 SO CAL GAS 28.60 10/26/2022 260316 SWRCB 5,658.00 10/26/2022 260317 ULINE, INC.4,218.80 10/26/2022 260318 UNIFIRST CORPORATION 2,813.55 10/26/2022 260320 UNIVERSAL SELF STORAGE HIGHLAND 372.00 10/26/2022 260321 US BANCORP SERVICE CENTER 53,002.44 10/26/2022 260327 VERIZON 1,169.60 BANK DRAFTS 10/3/2022 DFT0004717 GLOBAL PAYMENTS 13,397.52 10/3/2022 DFT0004721 MERCHANT BANKCD 606.59 10/12/2022 DFT0004720 FORTE, ACH DIRECT INC, ACH FEES 4,830.92 10/14/2022 DFT0004709 PayNearMe, Inc.376.11 10/17/2022 DFT0004710 CALPERS/ DEFERRED COMPENSATION 21,310.26 10/17/2022 DFT0004711 CALPERS/ RETIREMENT 49,015.12 10/17/2022 DFT0004712 Federal Payroll Tax 34,514.22 10/17/2022 DFT0004713 Medicare 9,274.30 10/17/2022 DFT0004714 Social Security 75.88 10/17/2022 DFT0004715 State Payroll Tax 14,170.83 10/17/2022 DFT0004716 CA SDI Tax 2,856.28 10/24/2022 DFT0004722 CBB 1,352.34 10/24/2022 DFT0004723 PayNearMe, Inc.268.65 10/28/2022 DFT0004724 CA SDI Tax 2,916.39 10/28/2022 DFT0004725 CALPERS/ DEFERRED COMPENSATION 22,073.39 10/28/2022 DFT0004726 CALPERS/ MEDICAL 111,825.78 10/28/2022 DFT0004727 CALPERS/ RETIREMENT 48,389.09 10/28/2022 DFT0004728 Federal Payroll Tax 39,253.50 10/28/2022 DFT0004729 Medicare 9,786.19 10/28/2022 DFT0004730 STATE DISBURSEMENT UNIT 322.15 10/28/2022 DFT0004731 State Payroll Tax 15,477.08 PAYMENT REGISTER OCTOBER 1, 2022 - OCTOBER 31, 2022 Page 3 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 10/28/2022 DFT0004732 Social Security 1,072.84 10/31/2022 DFT0004733 PayNearMe, Inc.135.32 ACH PAYMENTS 10/6/2022 10011469 ADVANCED TELEMETRY SYSTEMS INTERNATIONAL, INC.5,041.67 10/6/2022 10011470 BARRY'S SECURITY SERVICES, INC 9,021.81 10/6/2022 10011471 CAROL CALES 599.57 10/6/2022 10011472 CLARK PEST CONTROL 278.00 10/6/2022 10011473 CLEARFLY COMMUNATIONS 976.95 10/6/2022 10011474 COUNTY OF SAN BERNARDINO, RECORDER- CLERK 1,540.00 10/6/2022 10011475 DALE BRENDT MARSDEN, dba TOMORROW'S TALENT, LLC 2,500.00 10/6/2022 10011476 DANIEL DAVIS 671.72 10/6/2022 10011477 DAVID HERNANDEZ 477.73 10/6/2022 10011478 ED KING 714.38 10/6/2022 10011479 ELISEO OCHOA 606.31 10/6/2022 10011480 EXCEL LANDSCAPE, INC 446.86 10/6/2022 10011481 FMB TRUCK OUTFITTERS, INC 242.38 10/6/2022 10011482 GOLDEN STATE LABOR COMPLIANCE, LLC 4,990.00 10/6/2022 10011483 HARRINGTON INDUSTRIAL PLASTIC 3,817.52 10/6/2022 10011484 JOHN MURA 734.75 10/6/2022 10011485 KELLY MALLOY 215.49 10/6/2022 10011486 LESLIE'S POOL SUPPLIES, INC.360.27 10/6/2022 10011487 LINCOLN NATIONAL LIFE INS CO.2,155.08 10/6/2022 10011488 MARTHA T DURAN 850.00 10/6/2022 10011489 MICHAEL HENDERSON 741.83 10/6/2022 10011490 MOBILE OCCUPATIONAL SERVICES, INC 175.00 10/6/2022 10011491 PATTON'S SALES CORP 71.68 10/6/2022 10011492 RAYMOND ROYBAL 105.00 10/6/2022 10011493 REBECCA KASTEN 622.85 10/6/2022 10011494 RICHARD BECERRA 741.83 10/6/2022 10011495 S & J PLUMBING, INC.3,800.00 10/6/2022 10011496 SARAH PAREDES 449.00 10/6/2022 10011497 SOURCE GRAPHICS 1,650.00 10/6/2022 10011498 SPECTRUM 1,710.00 10/6/2022 10011499 STAPLES BUSINESS ADVANTAGE 734.73 10/6/2022 10011500 STERICYCLE, INC DBA SHRED-IT 392.09 10/6/2022 10011501 SUPERIOR AUTOMOTIVE WAREHOUSE, INC.177.72 10/6/2022 10011502 TROY ALARM, INC.564.00 10/6/2022 10011503 UNDERGROUND SERVICE ALERT 312.75 10/6/2022 10011504 WATEREUSE ASSOCIATION 4,698.75 10/6/2022 10011505 KELLAR CONSULTING, LLC 15,000.00 10/13/2022 10011506 ADCOMP SYSTEMS, INC 100.00 10/13/2022 10011507 ADVANCED TELEMETRY SYSTEMS INTERNATIONAL, INC.900.00 10/13/2022 10011508 AMAZON CAPITAL SERVICES, INC 3,836.25 10/13/2022 10011509 ARCADIS U.S., INC 532.50 10/13/2022 10011510 BARRY'S SECURITY SERVICES, INC 8,950.80 10/13/2022 10011511 CIVICPLUS -ICON ENTERPRISES, INC 2,110.65 10/13/2022 10011512 CORELOGIC SOLUTIONS, LLC 380.63 10/13/2022 10011513 FERGUSON ENTERPRISES, INC.12,719.33 10/13/2022 10011514 FIELDMAN, ROLAPP & ASSOCIATES, Inc.1,963.26 10/13/2022 10011515 FLEETWASH, INC 801.36 10/13/2022 10011516 GRAINGER 3,854.34 PAYMENT REGISTER OCTOBER 1, 2022 - OCTOBER 31, 2022 Page 4 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 10/13/2022 10011517 HACH COMPANY 2,250.00 10/13/2022 10011518 HARRINGTON INDUSTRIAL PLASTIC 16,604.54 10/13/2022 10011519 J COMM, INC.800.00 10/13/2022 10011520 JESUS FABIAN VALENZUELA 49.99 10/13/2022 10011521 JOSE MILLAN 140.00 10/13/2022 10011522 KRIEGER & STEWART, INCORPORATED 2,206.50 10/13/2022 10011523 MCCRAY ENTERPRISES 1,885.80 10/13/2022 10011524 MERLIN JOHNSON CONSTRUCTION 36,451.50 10/13/2022 10011525 MIKE J. ROQUET CONSTRUCTION INC 34,778.28 10/13/2022 10011526 MissionSquare Retirement 20,250.00 10/13/2022 10011527 NATIONAL CONSTRUCTION RENTALS 178.49 10/13/2022 10011528 PATTON'S SALES CORP 35.45 10/13/2022 10011529 PLUS 1 PERFORMANCE 1,803.61 10/13/2022 10011530 POWERSTRIDE BATTERY CO.136.62 10/13/2022 10011531 RESOLUTE 4,200.00 10/13/2022 10011532 SAFETY KLEEN SYSTEMS, INC.361.14 10/13/2022 10011533 STERICYCLE, INC DBA SHRED-IT 152.80 10/13/2022 10011534 SUPERIOR AUTOMOTIVE WAREHOUSE, INC.198.24 10/13/2022 10011535 TK CONSTRUCTION/ KIRTLEY CONSTRUCTION INC 15,766.33 10/13/2022 10011536 USA BLUE BOOK, HD SUPPLY FACILITIES MAINT, LTD 2,358.66 10/13/2022 10011537 VALERO FLEET, WEX BANK 22,457.15 10/13/2022 10011538 VULCAN MATERIALS CO/ CALMAT CO 4,691.41 10/13/2022 10011539 ZENON ENVIRONMENTAL CORP.2,309.75 10/17/2022 10011540 EVWD EMPLOYEES EVENTS ASSOC 280.50 10/20/2022 10011541 ADCOMP SYSTEMS, INC 319.29 10/20/2022 10011542 AIRGAS, USA LLC 52.05 10/20/2022 10011543 AMAZON CAPITAL SERVICES, INC 3,370.31 10/20/2022 10011545 ANTHESIS 5,598.38 10/20/2022 10011546 APPLIED MAINTENANCE SUPPLIES & SOLUTIONS 1,102.68 10/20/2022 10011547 BARRY'S SECURITY SERVICES, INC 8,718.94 10/20/2022 10011548 CINTAS CORPORATION (FIRST AID)791.69 10/20/2022 10011549 CLARK PEST CONTROL 51.00 10/20/2022 10011550 CLA-VAL CO 932.00 10/20/2022 10011551 CLINICAL LAB OF S B 5,056.50 10/20/2022 10011552 FRONTIER COMMUNICATIONS 1,106.16 10/20/2022 10011553 GENESIS INDUSTRIAL SUPPLY, INC 1,033.13 10/20/2022 10011554 HACH COMPANY 1,372.16 10/20/2022 10011555 HARRINGTON INDUSTRIAL PLASTIC 159.61 10/20/2022 10011556 INFOSEND, INC 1,018.79 10/20/2022 10011557 JC LAW FIRM 13,167.50 10/20/2022 10011558 JOSE MILLAN 3,890.00 10/20/2022 10011559 KAMBRELL CAMPER 49.99 10/20/2022 10011560 LANDS END INC 96.48 10/20/2022 10011561 LEGEND PUMP AND WELL SERVICES 8,020.03 10/20/2022 10011562 LESLIE'S POOL SUPPLIES, INC.421.84 10/20/2022 10011563 MANAGED HEALTH NETWORK 228.48 10/20/2022 10011564 MANAGED MOBILE, INC.3,231.26 10/20/2022 10011565 MCMASTER-CARR 168.73 10/20/2022 10011566 MIKE J. ROQUET CONSTRUCTION INC 8,567.50 10/20/2022 10011567 MINUTEMAN PRESS OF RANCHO CUCAMONGA 4,095.01 10/20/2022 10011568 PARKHOUSE TIRE, INC 2,503.93 10/20/2022 10011569 PETAS CAR CARE- KEVIN KOHRELL 348.97 PAYMENT REGISTER OCTOBER 1, 2022 - OCTOBER 31, 2022 Page 5 of 6 PAYMENT DATE NUMBER VENDOR NAME AMOUNT 10/20/2022 10011570 PLUMBERS DEPOT INC.1,096.30 10/20/2022 10011571 PLUS 1 PERFORMANCE 19.08 10/20/2022 10011572 QUADIENT, INC 407.62 10/20/2022 10011573 QUINN COMPANY 433.89 10/20/2022 10011574 SCN, SECURITY COMMUNICATION NETWORK, INC 159.50 10/20/2022 10011575 STAPLES BUSINESS ADVANTAGE 914.06 10/20/2022 10011577 STERICYCLE, INC DBA SHRED-IT 406.63 10/20/2022 10011578 TESCO CONTROLS, INC.1,885.00 10/20/2022 10011579 TYLER TECHNOLOGIES, INC 570.80 10/20/2022 10011580 VERIZON WIRELESS 9,951.36 10/20/2022 10011582 VULCAN MATERIALS CO/ CALMAT CO 3,741.95 10/20/2022 10011583 WAXIE SANITARY SUPPLY 1,321.28 10/21/2022 10011584 SEASONS AND REASONS, LLC 8,800.00 10/26/2022 10011585 ACI PAYMENTS INC.45.75 10/26/2022 10011586 ACWA, ASSOC OF CALIF WATER AGENCIES 27,870.00 10/26/2022 10011587 AMAZON CAPITAL SERVICES, INC 308.29 10/26/2022 10011589 ASBCSD 70.00 10/26/2022 10011590 BARRY'S SECURITY SERVICES, INC 9,521.03 10/26/2022 10011591 BOOT BARN, INC 586.21 10/26/2022 10011592 BURGESS MOVING & STORAGE 2,470.45 10/26/2022 10011593 CALIFORNIA SPECIAL DISTRICTS 8,810.00 10/26/2022 10011594 CLARK PEST CONTROL 154.00 10/26/2022 10011595 DANGELO CO INC 10,049.41 10/26/2022 10011596 EVWD EMPLOYEES EVENTS ASSOC 355.50 10/26/2022 10011597 FRONTIER COMMUNICATIONS 780.89 10/26/2022 10011598 HAAKER EQUIPMENT COMPANY & TOTAL CLEAN 5,876.82 10/26/2022 10011599 HARRINGTON INDUSTRIAL PLASTIC 2,139.76 10/26/2022 10011600 LANDS END INC 374.61 10/26/2022 10011601 LEGEND PUMP AND WELL SERVICES 27,570.37 10/26/2022 10011602 MANAGED MOBILE, INC.2,558.02 10/26/2022 10011603 MCCROMETER INC 3,909.91 10/26/2022 10011604 MCMASTER-CARR 128.44 10/26/2022 10011605 MOBILE OCCUPATIONAL SERVICES, INC 96.00 10/26/2022 10011606 PLUMBERS DEPOT INC.1,370.98 10/26/2022 10011607 PLUS 1 PERFORMANCE 2,031.89 10/26/2022 10011608 QUADIENT FINANCE USA, INC.5,123.18 10/26/2022 10011609 QUINN COMPANY 714.84 10/26/2022 10011610 SPECTRUM 6,300.00 10/26/2022 10011611 TYLER TECHNOLOGIES, INC 1,176.00 10/26/2022 10011612 UTILITY SERVICES ASSOCIATES, LLC 7,971.00 10/26/2022 10011613 WAXIE SANITARY SUPPLY 335.12 10/26/2022 10011614 WHITE CAP LP 711.20 TOTAL 1,730,475.61$ PAYMENT REGISTER OCTOBER 1, 2022 - OCTOBER 31, 2022 Page 6 of 6 Agenda Item #2d December 14, 20221 Meeting Date: December 14, 2022 Agenda Item #2d Consent Item 7 2 1 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Financial Statements for Quarter Ended September 30, 2022 RECOMMENDATION That the Board of Directors (Board) accept and file the attached financial statements as of, and for the quarter ended, September 30, 2022. BACKGROUND / ANALYSIS The East Valley Water District (District) adopted an annual budget on June 22, 2022 for fiscal year 2022-2023. In accordance with District Administrative policy 7.7, the Chief Financial Officer provides regular budget updates to the Board. Included herewith for the Board’s review is a summary of the District’s financial results, as of September 30, 2022. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS Agenda Item #2d December 14, 20222 Meeting Date: December 14, 2022 Agenda Item #2d Consent Item 7 2 1 1.September 2022 Financial Statement Quarterly Review 2. September 2022 Quarterly Financial Statements FINANCIAL STATEMENTS QUARTERLY REVIEW QUARTER ENDED SEPTEMBER 30, 2022 page | 1 The following is a highlight summary of the District’s financial results as of September 30, 2022. Please note all values presented are in millions (unless otherwise noted). Statement of Net Position Total assets at September 30, 2022 are $387.77 million. CLASSIFICATION WATER WASTEWATER RECLAMATION DISTRICT TOTAL Cash and Investments $ 8.99 $ 7.82 $ - $ 16.81 Utility Plant, Net 98.80 17.58 - 116.38 Other Assets 49.93 31.40 173.25 254.58 Current Liabilities 5.31 7.84 33.93 47.08 Long Term Liabilities 46.86 7.59 139.67 194.12 Beginning Net Position 103.41 40.93 - 144.34 Change in Equity 2.15 0.45 (0.35) 2.25 TOTAL NET $ 105.56 $ 41.38 $ (0.35) $ 146.59 Cash and Investments are $16.81 million for Quarter ending September 30th 2022, a decrease of $10.05 million from the prior Quarter. In Quarter ending September 30th 2022, the District paid for SNRC construction costs incurred during June, July, and August 2022 in the amount of $7.9 million. FINANCIAL STATEMENTS QUARTERLY REVIEW QUARTER ENDED SEPTEMBER 30, 2022 page | 2 $0 $5 $10 $15 $20 $25 $30 $35 Mi l l i o n s CASH & INVESTMENTS Restricted Unrestricted Comparing current assets to current liabilities, the District has a current ratio at September 30, 2022 of 1.29 to 1, with 2 to 1 being an indication of sound financial condition. Statement of Revenues & Expenses Operating results are presented in three ways in the attached financial statements for the period ending September 30, 2022. First is a one-page summary with monthly and year- to-date totals for revenue and expenses, presented by Expense Category. Second is a one-page summary with monthly and year-to-date totals for Revenues and Expense by Program. Third is a Budget-to-Actual presentation of program expense detail. FINANCIAL STATEMENTS QUARTERLY REVIEW QUARTER ENDED SEPTEMBER 30, 2022 page | 3 Total Revenues & Expenses through September 30, 2022 are summarized below (in millions): Column1 WATER WASTEWATER RECLAMATION DISTRICT TOTAL Revenue $ 8.89 $ 1.83 $ 2.55 $ 13.27 Expense 6.75 1.38 2.90 11.03 Water Sales for the quarter ending September 30, 2022 were $5.9M; $54K over projections. $- $0.5 $1.0 $1.5 $2.0 $2.5 Mi l l i o n s WATER SALES BY TIER Tier 1 Tier 2 Tier 3 FY 2022-23 Projection FINANCIAL STATEMENTS QUARTERLY REVIEW QUARTER ENDED SEPTEMBER 30, 2022 page | 4 Water Sales by Customer Class The table below shows the District’s water sales for the quarter ending September 30th, 2022 by customer class. All customer classes came in over projections. The following icons are to compliment the graph below: positive change, no change, negative change when comparing actuals versus projections. CUSTOMER CLASS ACTUAL PROJECTION $ VARIANCE % VARIANCE Residential 3,402,341$ 3,263,000$ 139,341$ 4% Multi-Family 1,092,590 1,116,000 (23,410) -2% Commercial 562,442 564,000 (1,558) 0% Irrigation 839,069 899,000 (59,931) -7% TOTAL $5,896,442 $ 5,842,000 $ 54,442 1% The following table displays customer class by tier for the quarter ending September 30th, 2022. CUSTOMER CLASS TIER ACTUAL PROJECTION $ VARIANCE % VARIANCE Residential Tier 1 1,075,445 1,056,000 19,445 2% Residential Tier 2 1,810,959 1,664,000 146,959 9% Residential Tier 3 515,937 543,000 (27,063) -5% Multi-Family Tier 1 453,391 436,000 17,391 4% Multi-Family Tier 2 330,589 435,000 (104,411) -24% Multi-Family Tier 3 308,610 245,000 63,610 26% Commercial Tier 1 300,732 287,000 13,732 5% Commercial Tier 2 27,981 32,000 (4,019) -13% Commercial Tier 3 233,729 245,000 (11,271) -5% Irrigation Tier 2 527,546 553,000 (25,454) -5% Irrigation Tier 3 311,523 346,000 (34,477) -10% Legend - Positive Change in Actuals - Neutral Change in Actuals - Negative Change in Actuals FINANCIAL STATEMENTS QUARTERLY REVIEW QUARTER ENDED SEPTEMBER 30, 2022 page | 5 The chart below is a comparative illustration of current Water Revenue compared to last year’s Water Revenue. As noted in the graph, Water Revenue experienced an increase over last year. Although water consumption decreased 16.19 million gallons (21K HCF) compared to September of 2021, meter sales increased 6%. $- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 9/30/2021 9/30/2022 Mi l l i o n s COMPARATIVE QUARTERLY WATER REVENUE (WATER SALES & METER CHARGES) Meter Tier 1 Tier 2 Tier 3 Total -$8,193,648 Total -$8,320,372 FINANCIAL STATEMENTS QUARTERLY REVIEW QUARTER ENDED SEPTEMBER 30, 2022 page | 6 Water Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Water Fund operating cost centers for FY 2021-22 and FY 2022-23. FINANCIAL STATEMENTS QUARTERLY REVIEW QUARTER ENDED SEPTEMBER 30, 2022 page | 7 Wastewater Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Wastewater Fund operating cost centers for FY 2021-22 and FY 2022-23. FINANCIAL STATEMENTS QUARTERLY REVIEW QUARTER ENDED SEPTEMBER 30, 2022 page | 8 Water Reclamation Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Water Reclamation Fund operating cost centers for FY 2021-22 and FY 2022-23. WATER WASTEWATER RECLAMATION DISTRICT TOTAL Assets: Current Assets: 01 - Cash and Cash EquivalentsCash and Cash Equivalents 504,889.23$ 689,232.23$ -$ 1,194,121.46$ 02 - InvestmentsInvestments 3,066,941.75 1,507,529.00 - 4,574,470.75 03 - Accounts Receivable, NetAccounts Receivable, Net 5,539,012.75 820,528.67 - 6,359,541.42 04 - Interest ReceivableInterest Receivable - 3,377.19 - 3,377.19 14*05 - Other ReceivablesOther Receivables 2,154,899.80 - - 2,154,899.80 07 - Due from Sewer FundDue from Sewer Fund 5,500,000.00 - - 5,500,000.00 07.1 - Due from Treatment FundDue from Reclamation Fund 13,359,514.26 12,680,360.02 - 26,039,874.28 06 - Due from other GovernmentsDue from Other Governments 42,000.01 - 13,921,701.88 13,963,701.89 08 - InventoryInventory 848,254.63 6,721.16 - 854,975.79 09 - Prepaid ExpensesPrepaid Expenses 227,825.51 36,884.60 1,720.50 266,430.61 31,243,337.94 15,744,632.87 13,923,422.38 60,911,393.19 Non-Current Assets: 10 - Restricted Cash and Cash EquivalentsRestricted Cash and Cash Equivalents 5,419,488.13 5,624,841.57 - 11,044,329.70 11 - Capital Assets not being DepreciatedCapital Assets not being Depreciated 19,521,690.58 16,872,372.03 159,323,582.17 195,717,644.78 13 - Capital Assets, NetCapital Assets, Net 98,804,274.33 17,584,763.40 - 116,389,037.73 123,745,453.04 40,081,977.00 159,323,582.17 323,151,012.21 Total Assets:154,988,790.98 55,826,609.87 173,247,004.55 384,062,405.40 Deferred Outflow Of Resources 24*Deferred Charge on Refunding 610,558.73 286,292.69 - 896,851.42 25 - Deferred Outflow - PensionsDeferred Outflows - Pensions 2,127,130.34 691,919.73 - 2,819,050.07 157,726,480.05 56,804,822.29 173,247,004.55 387,778,306.89 Current Liabilities: 22 - PayablesAccounts Payable and Accrued Expenses 1,643,723.58 27,441.76 - 1,671,165.34 29 - Due to Water FundDue to Water Fund - 5,500,000.00 13,359,514.26 18,859,514.26 29.1 - Due to Sewer FundDue to Sewer Fund - - 12,680,360.02 12,680,360.02 23 - Payroll LiabilitiesAccrued Payroll and Benefits 5,833.39 4,607.94 - 10,441.33 15 - Customer Service DepositsCustomer Service Deposits 1,427,242.41 - - 1,427,242.41 16 - Construction Advances and RetentionsConstruction Advances and Retentions 458,084.49 2,174,157.44 7,887,850.09 10,520,092.02 17 - Interest PayableAccrued Interest Payable 238,560.36 24,947.00 - 263,507.36 18 - Current Portion of Compensated AbsencesCurrent Portion of Compensated Absences 495,871.40 108,250.60 - 604,122.00 19 - Current Portion of Long-Term DebtCurrent Portion of Long-Term Debt 1,044,052.55 - - 1,044,052.55 5,313,368.18 7,839,404.74 33,927,724.37 47,080,497.29 Non-Current Liabilities: 20 - Compensated Absences, less current portionCompensated Absences, less current portion 493,375.73 90,210.70 - 583,586.43 28 - Net Pension LiabilityNet Pension Liability 5,094,004.28 1,563,684.95 - 6,657,689.23 21 - Long Term DebtLong Term Debt, Less Current Portion 35,864,413.60 4,938,562.10 139,669,059.00 180,472,034.70 27 - Other LiabilitiesOther Liabilities 1,173.64 - - 1,173.64 Deferred Inflows Of Resources 26 - Deferred Inflows - PensionsDeferred Inflows - Pensions 5,403,596.94 1,000,008.59 - 6,403,605.53 46,856,564.19 7,592,466.34 139,669,059.00 194,118,089.53 52,169,932.37 15,431,871.08 173,596,783.37 241,198,586.82 31 - EquityEquity 103,409,180.60 40,925,997.03 - 144,335,177.63 103,409,180.60 40,925,997.03 - 144,335,177.63 Total RevenueTotal Revenue 8,892,573.37 1,827,706.61 2,552,469.90 13,272,749.88 Total ExpenseTotal Expense 6,745,206.29 1,380,752.43 2,902,248.72 11,028,207.44 2,147,367.08 446,954.18 (349,778.82) 2,244,542.44 105,556,547.68 41,372,951.21 (349,778.82) 146,579,720.07 157,726,480.05$ 56,804,822.29$ 173,247,004.55$ 387,778,306.89$ Unaudited As of September 30, 2022 Combining Schedule of Net Position Total Equity and Current Surplus (Deficit): Total Assets and Deferred Outflows of Resources: Total Current Assets: Total Non-Current Assets: Total Liabilities, Equity and Current Surplus (Deficit): Total Beginning Equity: Equity: Revenues Over/Under Expenses Total Current Liabilities: Total Non-Current and Deferred Inflows of Resources: Total Liabilities and Deferred Inflows of Resources: Page 1 of 6 AMENDED AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 - Water SalesWater Sales 2,348,136.70$ 5,896,441.94$ 17,700,000.00$ -$ -$ -$ -$ -$ 692,000.00$ 18,392,000.00$ 12,495,558.06$ 42 - Meter ChargesMeter Charges 807,977.79 2,424,085.63 9,685,000.00 - - - - - - 9,685,000.00 7,260,914.37 43 - PenaltiesPenalties 45,382.97 149,571.68 468,000.00 4,531.99 16,487.14 95,000.00 - - - 563,000.00 396,941.18 44 - Wastewater System ChargesWastewater System Charges - - - 472,303.29 1,390,094.33 5,621,000.00 - - - 5,621,000.00 4,230,905.67 45 - Wastewater Treatment ChargesWastewater Treatment Charges - - - - - - 903,515.55 2,552,469.90 9,851,000.00 9,851,000.00 7,298,530.10 46 - Other Operating RevenueOther Operating Revenue 207,762.79 418,407.10 62,000.00 187,408.34 421,125.14 - - - 1,820,000.00 1,882,000.00 1,042,467.76 47 - Non Operating RevenueNon Operating Revenue 3,189.07 4,067.02 40,000.00 - - 5,000.00 - - 11,000.00 56,000.00 51,932.98 48 - Gain or Loss on DispositionGain or Loss on Disposition - - - - - - - - - - - 56 - BenefitsBenefits - - - - - - - - - - - 68 - DepreciationDepreciation - - - - - - - - - - - Revenue Total:3,412,449.32 8,892,573.37 27,955,000.00 664,243.62 1,827,706.61 5,721,000.00 903,515.55 2,552,469.90 12,374,000.00 46,050,000.00 32,777,250.12 - - - - - - - - Expense by Category 51 - LaborLabor 563,619.04 1,199,433.02 5,573,300.00 159,737.88 329,704.60 1,573,900.00 76,457.77 146,744.51 1,040,800.00 8,188,000.00 6,512,117.87 52 - Temporary LaborTemporary Labor 2,225.59 5,262.63 21,000.00 1,669.20 3,947.00 9,000.00 1,669.20 3,946.98 - 30,000.00 16,843.39 56 - BenefitsBenefits 155,433.97 1,226,267.05 2,869,400.00 43,219.31 274,493.89 801,500.00 18,577.88 182,803.20 598,100.00 4,269,000.00 2,585,435.86 63 - Contract ServicesContract Services 389,070.40 1,092,457.47 4,825,200.00 125,404.05 380,301.13 1,530,400.00 861,049.24 2,454,198.02 6,390,400.00 12,746,000.00 8,819,043.38 65 - Professional DevelopmentProfessional Development 1,253.67 47,165.00 313,000.00 231.18 16,471.37 114,000.00 - 26.29 18,000.00 445,000.00 381,337.34 53 - OvertimeOvertime 70,094.57 144,886.92 393,200.00 2,841.78 11,792.01 25,500.00 2,053.95 5,896.95 9,300.00 428,000.00 265,424.12 62 - Materials and SuppliesMaterials and Supplies 109,723.47 427,819.89 1,572,000.00 4,888.27 31,150.03 124,300.00 2,654.02 22,802.56 671,700.00 2,368,000.00 1,886,227.52 64 - UtilitiesUtilities 386,393.31 906,536.45 3,322,800.00 10,101.72 30,101.94 179,300.00 13,155.47 81,883.23 376,900.00 3,879,000.00 2,860,478.38 52 - Temporary LaborTemporary Labor 2,225.59 5,262.63 21,000.00 1,669.20 3,947.00 9,000.00 1,669.20 3,946.98 - 30,000.00 16,843.39 67 - OtherOther 7,873.75 905,537.60 700,100.00 3,010.00 228,386.41 288,100.00 - - 268,800.00 1,257,000.00 123,075.99 54 - StandbyStandby 4,372.00 8,561.18 33,000.00 168.00 459.92 2,000.00 - - - 35,000.00 25,978.90 61 - Water SupplyWater Supply - 108,881.00 286,000.00 - - - - - - 286,000.00 177,119.00 71 - Debt ServiceDebt Service 456,172.75 466,683.31 3,080,000.00 49,894.00 49,894.00 274,000.00 - - - 3,354,000.00 2,837,422.69 81 - Capital ImprovementCapital Improvement - - 5,425,000.00 - - 315,000.00 - - - 5,740,000.00 5,740,000.00 82 - Capital OutlayCapital Outlay 31,465.14 200,452.14 720,000.00 7,180.00 20,103.13 475,000.00 - - - 1,195,000.00 974,444.73 83 - Accounting Income Add backAccounting Income Add back - - - - - - - - - - - 88 - Transfer from ReservesTransfer to Reserves - - - - - - - - 3,000,000.00 3,000,000.00 3,000,000.00 99 - 99Transfer from Reserves - - (1,200,000.00) - - - - - - (1,200,000.00) (1,200,000.00) Expense Total:2,179,923.25 6,745,206.29 27,955,000.00 410,014.59 1,380,752.43 5,721,000.00 977,286.73 2,902,248.72 12,374,000.00 46,050,000.00 35,021,792.56 Total Surplus (Deficit):1,232,526.07$ 2,147,367.08$ -$ 254,229.03$ 446,954.18$ -$ (73,771.18)$ (349,778.82)$ -$ -$ (2,244,542.44)$ Unaudited Revenue and Expense Budget-to-Actual by Category Quarter Ended September 30, 2022 WATER WASTEWATER DISTRICT WIDERECLAMATION Page 2 of 6 AMENDED AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 - Water SalesWater Sales 2,348,136.70$ 5,896,441.94$ 17,700,000.00$ -$ -$ -$ -$ -$ 692,000.00$ 18,392,000.00$ 12,495,558.06$ 42 - Meter ChargesMeter Charges 807,977.79 2,424,085.63 9,685,000.00 - - - - - - 9,685,000.00 7,260,914.37 43 - PenaltiesPenalties 45,382.97 149,571.68 468,000.00 4,531.99 16,487.14 95,000.00 - - - 563,000.00 396,941.18 44 - Wastewater System ChargesWastewater System Charges - - - 472,303.29 1,390,094.33 5,621,000.00 - - - 5,621,000.00 4,230,905.67 45 - Wastewater Treatment ChargesWastewater Treatment Charges - - - - - - 903,515.55 2,552,469.90 9,851,000.00 9,851,000.00 7,298,530.10 46 - Other Operating RevenueOther Operating Revenue 207,762.79 418,407.10 62,000.00 187,408.34 421,125.14 - - - 1,820,000.00 1,882,000.00 1,042,467.76 47 - Non Operating RevenueNon Operating Revenue 3,189.07 4,067.02 40,000.00 - - 5,000.00 - - 11,000.00 56,000.00 51,932.98 Revenue Total:3,412,449.32 8,892,573.37 27,955,000.00 664,243.62 1,827,706.61 5,721,000.00 903,515.55 2,552,469.90 12,374,000.00 46,050,000.00 32,777,250.12 Program: 1000 - Board of Directors Total:1000 - Board of Directors 30,067.11 54,068.31 331,800.00 12,746.92 23,003.52 142,200.00 - - - 474,000.00 396,928.17 Program: 2000 - General Administration Total:2000 - General Administration 47,414.50 247,595.82 961,800.00 20,244.13 103,050.63 412,200.00 - - - 1,374,000.00 1,023,353.55 Program: 2100 - Human Resources Total:2100 - Human Resources 32,820.59 1,085,684.36 1,178,600.00 15,511.34 304,456.39 492,400.00 - - 267,000.00 1,938,000.00 547,859.25 Program: 2200 - Public Affairs Total:2200 - Public Affairs 109,414.46 295,656.19 1,216,600.00 52,953.12 161,400.95 521,400.00 - - - 1,738,000.00 1,280,942.86 Program: 2300 - Conservation Total:2300 - Conservation 68,293.34 112,821.59 917,000.00 - - - - - - 917,000.00 804,178.41 Program: 3000 - Finance Total:3000 - Finance 64,905.44 209,931.84 834,400.00 28,156.06 90,301.51 357,600.00 - - - 1,192,000.00 891,766.65 Program: 3200 - Information Technology Total:3200 - Information Technology 95,869.44 261,707.61 949,200.00 41,086.86 115,650.92 406,800.00 - - - 1,356,000.00 978,641.47 Program: 3300 - Customer Service Total:3300 - Customer Service 51,366.16 170,081.19 702,000.00 37,867.91 125,188.33 526,500.00 37,841.99 121,752.77 526,500.00 1,755,000.00 1,337,977.71 Program: 3400 - Meter Service Total:3400 - Meter Service 22,689.17 69,404.94 278,000.00 747.25 747.25 - - - - 278,000.00 207,847.81 Program: 4000 - Engineering Surplus Total:4000 - Engineering 52,676.17 123,539.83 1,126,300.00 22,523.95 57,449.41 482,700.00 - - - 1,609,000.00 1,428,010.76 Program: 5000 - Water Production Total:5000 - Water Production 470,100.06 1,382,175.58 4,927,000.00 - - - - - - 4,927,000.00 3,544,824.42 Program: 5100 - Water Treatment Total:5100 - Water Treatment 130,640.11 357,256.22 960,000.00 - - - - - - 960,000.00 602,743.78 Program: 5200 - Water Quality Total:5200 - Water Quality 39,580.33 120,282.75 557,000.00 - - - - - - 557,000.00 436,717.25 Program: 6000 - Field Maintenance Administration Total:6000 - Field Maintenance Administration 33,703.02 114,311.74 388,800.00 3,532.25 14,699.05 43,200.00 - - - 432,000.00 302,989.21 Program: 6100 - Water Maintenance Total:6100 - Water Maintenance 310,786.38 966,858.22 3,082,000.00 - - - - - - 3,082,000.00 2,115,141.78 Program: 6200 - Wastewater Maintenance Total:6200 - Wastewater Maintenance - - - 91,492.45 154,195.96 880,000.00 - - - 880,000.00 725,804.04 Program: 6200 - Wastewater Maintenance Total:6300 - Water Reclamation - - - - - - 891,085.46 2,504,566.66 8,180,000.00 8,180,000.00 5,675,433.34 Program: 7000 - Facilities Maintenance Total:7000 - Facilities Maintenance 82,362.11 359,851.33 888,600.00 19,673.08 142,746.19 321,900.00 48,359.28 275,929.29 400,500.00 1,611,000.00 832,473.19 Program: 7100 - Fleet Maintenance Total:7100 - Fleet Maintenance 49,596.97 146,843.32 630,900.00 6,405.27 17,865.19 70,100.00 - - - 701,000.00 536,291.49 Program: 8000 - Capital Total:8000 - Capital 487,637.89 667,135.45 8,025,000.00 57,074.00 69,997.13 1,064,000.00 - - 3,000,000.00 12,089,000.00 11,351,867.42 Expense Total:2,179,923.25 6,745,206.29 27,955,000.00 410,014.59 1,380,752.43 5,721,000.00 977,286.73 2,902,248.72 12,374,000.00 46,050,000.00 35,021,792.56 Total Surplus (Deficit):1,232,526.07$ 2,147,367.08$ -$ 254,229.03$ 446,954.18$ -$ (73,771.18)$ (349,778.82)$ -$ -$ (2,244,542.44)$ .. WATER WASTEWATER DISTRICT WIDE Revenue and Expense Budget-to-Actual by Program Quarter Ended September 30, 2022 Unaudited RECLAMATION Page 3 of 6 AMENDED AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 - Water SalesWater Sales 2,348,136.70$ 5,896,441.94$ 17,700,000.00$ -$ -$ -$ -$ -$ 692,000.00$ 18,392,000.00$ 12,495,558.06$ 42 - Meter ChargesMeter Charges 807,977.79 2,424,085.63 9,685,000.00 - - - - - - 9,685,000.00 7,260,914.37 43 - PenaltiesPenalties 45,382.97 149,571.68 468,000.00 4,531.99 16,487.14 95,000.00 - - - 563,000.00 396,941.18 44 - Wastewater System ChargesWastewater System Charges - - - 472,303.29 1,390,094.33 5,621,000.00 - - - 5,621,000.00 4,230,905.67 45 - Wastewater Treatment ChargesWastewater Treatment Charges - - - - - - 903,515.55 2,552,469.90 9,851,000.00 9,851,000.00 7,298,530.10 46 - Other Operating RevenueOther Operating Revenue 207,762.79 418,407.10 62,000.00 187,408.34 421,125.14 - - - 1,820,000.00 1,882,000.00 1,042,467.76 47 - Non Operating RevenueNon Operating Revenue 3,189.07 4,067.02 40,000.00 - - 5,000.00 - - 11,000.00 56,000.00 51,932.98 48 - Gain or Loss on DispositionGain or Loss on Disposition - - - - - - - - - - - 56 - BenefitsBenefits - - - - - - - - - - - 68 - DepreciationDepreciation - - - - - - - - - - - Revenue Total:3,412,449.32 8,892,573.37 27,955,000.00 664,243.62 1,827,706.61 5,721,000.00 903,515.55 2,552,469.90 12,374,000.00 46,050,000.00 32,777,250.12 - - - - - - - - Program: 1000 - Board of Directors - - - - - 51 - LaborLabor 7,875.00$ 20,632.50$ 94,500.00$ 3,375.00$ 8,842.50$ 40,500.00$ -$ -$ -$ 135,000.00$ 105,525.00$ 56 - BenefitsBenefits 4,268.47 12,587.52 61,600.00 1,829.32 5,394.59 26,400.00 - - - 88,000.00 70,017.89 62 - Materials and SuppliesMaterials and Supplies - - 1,400.00 - - 600.00 - - - 2,000.00 2,000.00 63 - Contract ServicesContract Services 17,500.00 17,500.00 156,800.00 7,500.00 7,500.00 67,200.00 - - - 224,000.00 199,000.00 65 - Professional DevelopmentProfessional Development 423.64 3,348.29 17,500.00 42.60 1,266.43 7,500.00 - - - 25,000.00 20,385.28 Program: 1000 - Board of Directors Total:30,067.11 54,068.31 331,800.00 12,746.92 23,003.52 142,200.00 - - - 474,000.00 396,928.17 - - - - - - Program: 2000 - General Administration - - - - - 51 - LaborLabor 22,758.91 83,171.67 367,500.00 9,753.89 35,530.88 157,500.00 - - - 525,000.00 406,297.45 52 - Temporary LaborTemporary Labor - - 21,000.00 - - 9,000.00 - - - 30,000.00 30,000.00 53 - OvertimeOvertime - 241.67 2,800.00 - 103.56 1,200.00 - - - 4,000.00 3,654.77 56 - BenefitsBenefits 6,659.36 99,428.31 237,300.00 2,777.56 39,664.41 101,700.00 - - - 339,000.00 199,907.28 62 - Materials and SuppliesMaterials and Supplies - 218.84 4,900.00 - 93.77 2,100.00 - - - 7,000.00 6,687.39 63 - Contract ServicesContract Services 17,916.41 46,701.95 221,200.00 7,678.47 20,015.13 94,800.00 - - - 316,000.00 249,282.92 64 - UtilitiesUtilities 79.82 159.64 4,200.00 34.21 68.42 1,800.00 - - - 6,000.00 5,771.94 65 - Professional DevelopmentProfessional Development - 17,673.74 102,900.00 - 7,574.46 44,100.00 - - - 147,000.00 121,751.80 Program: 2000 - General Administration Total:47,414.50 247,595.82 961,800.00 20,244.13 103,050.63 412,200.00 - - - 1,374,000.00 1,023,353.55 - - - - - - Program: 2100 - Human Resources - - - - - - 51 - LaborLabor 15,323.60 40,987.31 214,900.00 8,012.71 17,288.33 92,100.00 - - - 307,000.00 248,724.36 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime 48.27 179.10 2,100.00 20.69 62.88 900.00 - - - 3,000.00 2,758.02 56 - BenefitsBenefits 5,916.04 90,369.81 123,900.00 2,535.41 38,372.65 53,100.00 - - - 177,000.00 48,257.54 62 - Materials and SuppliesMaterials and Supplies 172.16 618.83 4,900.00 73.78 265.22 2,100.00 - - - 7,000.00 6,115.95 63 - Contract ServicesContract Services 4,314.19 37,681.29 87,500.00 1,848.91 14,716.64 37,500.00 - - - 125,000.00 72,602.07 64 - UtilitiesUtilities 40.31 86.08 700.00 17.27 36.88 300.00 - - - 1,000.00 877.04 65 - Professional DevelopmentProfessional Development - 12,541.95 46,900.00 - 5,353.95 20,100.00 - - - 67,000.00 49,104.10 67 - OtherOther 7,006.02 903,219.99 697,700.00 3,002.57 228,359.84 286,300.00 - - 267,000.00 1,251,000.00 119,420.17 Program: 2100 - Human Resources Total:32,820.59 1,085,684.36 1,178,600.00 15,511.34 304,456.39 492,400.00 - - 267,000.00 1,938,000.00 547,859.25 - - - - - - Program: 2200 - Public Affairs - - - - - - 51 - LaborLabor 47,680.18 93,827.01 412,300.00 20,434.37 40,211.55 176,700.00 - - - 589,000.00 454,961.44 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime 209.73 2,127.26 11,900.00 89.89 911.68 5,100.00 - - - 17,000.00 13,961.06 56 - BenefitsBenefits 11,247.20 76,803.01 170,100.00 4,820.15 32,915.39 72,900.00 - - - 243,000.00 133,281.60 62 - Materials and SuppliesMaterials and Supplies 2,689.36 31,848.90 91,000.00 1,152.56 13,649.51 39,000.00 - - - 130,000.00 84,501.59 63 - Contract ServicesContract Services 42,883.37 79,896.11 477,400.00 24,439.89 62,025.57 204,600.00 - - - 682,000.00 540,078.32 64 - UtilitiesUtilities 4,704.62 8,775.51 26,600.00 2,016.26 10,667.94 11,400.00 - - - 38,000.00 18,556.55 65 - Professional DevelopmentProfessional Development - 2,378.39 27,300.00 - 1,019.31 11,700.00 - - - 39,000.00 35,602.30 Program: 2200 - Public Affairs Total:109,414.46 295,656.19 1,216,600.00 52,953.12 161,400.95 521,400.00 - - - 1,738,000.00 1,280,942.86 - - - - - - Program: 2300 - Conservation - - - - - - 51 - LaborLabor 11,882.40 25,332.69 107,000.00 - - - - - - 107,000.00 81,667.31 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime 482.72 1,856.62 7,000.00 - - - - - - 7,000.00 5,143.38 56 - BenefitsBenefits 3,200.66 7,332.81 40,000.00 - - - - - - 40,000.00 32,667.19 62 - Materials and SuppliesMaterials and Supplies 677.82 1,689.15 278,000.00 - - - - - - 278,000.00 276,310.85 63 - Contract ServicesContract Services 46,070.87 64,715.70 442,000.00 - - - - - - 442,000.00 377,284.30 64 - UtilitiesUtilities 5,978.87 11,827.12 26,000.00 - - - - - - 26,000.00 14,172.88 65 - Professional DevelopmentProfessional Development - 67.50 17,000.00 - - - - - - 17,000.00 16,932.50 Program: 2300 - Conservation Total:68,293.34 112,821.59 917,000.00 - - - - - - 917,000.00 804,178.41 Program: 3000 - Finance - - - - - - 51 - LaborLabor 51,084.16 100,673.74 490,000.00 22,198.25 43,450.92 210,000.00 - - - 700,000.00 555,875.34 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime 155.20 1,735.02 9,100.00 66.51 743.55 3,900.00 - - - 13,000.00 10,521.43 56 - BenefitsBenefits 12,390.94 98,971.72 222,600.00 5,364.09 42,469.99 95,400.00 - - - 318,000.00 176,558.29 62 - Materials and SuppliesMaterials and Supplies 250.97 758.55 8,400.00 107.57 325.13 3,600.00 - - - 12,000.00 10,916.32 63 - Contract ServicesContract Services 234.00 5,650.82 80,500.00 81.00 2,393.93 34,500.00 - - - 115,000.00 106,955.25 64 - UtilitiesUtilities 350.14 512.09 2,800.00 150.06 219.47 1,200.00 - - - 4,000.00 3,268.44 65 - Professional DevelopmentProfessional Development 440.03 1,629.90 21,000.00 188.58 698.52 9,000.00 - - - 30,000.00 27,671.58 67 - OtherOther - - - - - - - - - - - Program: 3000 - Finance Total:64,905.44 209,931.84 834,400.00 28,156.06 90,301.51 357,600.00 - - - 1,192,000.00 891,766.65 - - - - - - Quarter Ended September 30, 2022 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Page 4 of 6 AMENDED AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Quarter Ended September 30, 2022 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Program: 3200 - Information Technology - - - - - - 51 - LaborLabor 29,850.26 58,066.77 266,000.00 12,792.94 27,861.71 114,000.00 - - - 380,000.00 294,071.52 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime - 301.39 - - 129.17 - - - - - (430.56) 56 - BenefitsBenefits 7,944.95 84,373.25 148,400.00 3,405.00 36,770.20 63,600.00 - - - 212,000.00 90,856.55 62 - Materials and SuppliesMaterials and Supplies 2,183.70 19,672.15 32,200.00 935.86 8,430.92 13,800.00 - - - 46,000.00 17,896.93 63 - Contract ServicesContract Services 53,585.24 93,445.66 483,700.00 22,965.08 39,952.48 207,300.00 - - - 691,000.00 557,601.86 64 - UtilitiesUtilities 2,305.29 5,567.95 8,400.00 987.98 2,386.26 3,600.00 - - - 12,000.00 4,045.79 65 - Professional DevelopmentProfessional Development - 280.44 10,500.00 - 120.18 4,500.00 - - - 15,000.00 14,599.38 Program: 3200 - Information Technology Total:95,869.44 261,707.61 949,200.00 41,086.86 115,650.92 406,800.00 - - - 1,356,000.00 978,641.47 - - - - - - Program: 3300 - Customer Service - - - - - - 51 - LaborLabor 22,928.69 45,372.53 213,200.00 17,196.51 33,662.68 159,900.00 17,196.41 31,285.05 159,900.00 533,000.00 422,679.74 52 - Temporary LaborTemporary Labor 2,225.59 5,262.63 - 1,669.20 3,947.00 - 1,669.20 3,946.98 - - (13,156.61) 53 - OvertimeOvertime 1,179.54 2,827.70 2,800.00 884.66 2,098.33 2,100.00 884.64 1,889.47 2,100.00 7,000.00 184.50 56 - BenefitsBenefits 7,011.07 40,629.74 122,800.00 5,244.97 30,371.36 92,100.00 5,226.60 29,776.69 92,100.00 307,000.00 206,222.21 62 - Materials and SuppliesMaterials and Supplies 702.31 812.39 2,800.00 526.73 609.29 2,100.00 526.73 609.30 2,100.00 7,000.00 4,969.02 63 - Contract ServicesContract Services 15,886.56 71,979.90 286,000.00 11,914.91 53,814.08 214,500.00 11,914.91 53,586.27 214,500.00 715,000.00 535,619.75 64 - UtilitiesUtilities 564.67 843.64 64,400.00 423.50 632.73 48,300.00 423.50 632.72 48,300.00 161,000.00 158,890.91 65 - Professional DevelopmentProfessional Development - 35.05 7,600.00 - 26.29 5,700.00 - 26.29 5,700.00 19,000.00 18,912.37 67 - OtherOther 867.73 2,317.61 2,400.00 7.43 26.57 1,800.00 - - 1,800.00 6,000.00 3,655.82 Program: 3300 - Customer Service Total:51,366.16 170,081.19 702,000.00 37,867.91 125,188.33 526,500.00 37,841.99 121,752.77 526,500.00 1,755,000.00 1,337,977.71 - - - - - - Program: 3400 - Meter Service - - - - - - 51 - LaborLabor 17,644.89 36,053.44 164,000.00 447.84 447.84 - - - - 164,000.00 127,498.72 53 - OvertimeOvertime 57.11 1,189.09 6,000.00 - - - - - - 6,000.00 4,810.91 56 - BenefitsBenefits 4,749.55 31,578.39 96,000.00 299.41 299.41 - - - - 96,000.00 64,122.20 62 - Materials and SuppliesMaterials and Supplies - - 4,000.00 - - - - - - 4,000.00 4,000.00 63 - Contract ServicesContract Services 125.74 352.88 7,000.00 - - - - - - 7,000.00 6,647.12 64 - UtilitiesUtilities 111.88 231.14 1,000.00 - - - - - - 1,000.00 768.86 65 - Professional DevelopmentProfessional Development - - - - - - - - - - - Program: 3400 - Meter Service Total:22,689.17 69,404.94 278,000.00 747.25 747.25 - - - - 278,000.00 207,847.81 - - - - - - Program: 4000 - Engineering - - - - - - 51 - LaborLabor 43,536.10 88,363.74 467,600.00 18,658.30 37,816.27 200,400.00 - - - 668,000.00 541,819.99 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime - - 2,100.00 - - 900.00 - - - 3,000.00 3,000.00 56 - BenefitsBenefits 7,979.03 20,087.95 135,100.00 3,419.49 8,695.36 57,900.00 - - - 193,000.00 164,216.69 62 - Materials and SuppliesMaterials and Supplies 9.72 124.88 13,300.00 4.17 53.52 5,700.00 - - - 19,000.00 18,821.60 63 - Contract ServicesContract Services 906.50 3,518.31 357,700.00 388.50 10,269.78 153,300.00 - - - 511,000.00 497,211.91 64 - UtilitiesUtilities 124.82 9,453.95 130,900.00 53.49 369.76 56,100.00 - - - 187,000.00 177,176.29 65 - Professional DevelopmentProfessional Development 120.00 1,991.00 19,600.00 - 244.72 8,400.00 - - - 28,000.00 25,764.28 Program: 4000 - Engineering Total:52,676.17 123,539.83 1,126,300.00 22,523.95 57,449.41 482,700.00 - - - 1,609,000.00 1,428,010.76 - - - - - - Program: 5000 - Water Production - - - - - - 51 - LaborLabor 89,220.23 183,047.36 781,000.00 - - - - - - 781,000.00 597,952.64 53 - OvertimeOvertime 4,419.02 11,434.79 70,000.00 - - - - - - 70,000.00 58,565.21 54 - StandbyStandby 1,820.00 3,222.00 15,000.00 - - - - - - 15,000.00 11,778.00 56 - BenefitsBenefits 21,326.56 190,143.73 404,000.00 - - - - - - 404,000.00 213,856.27 61 - Water SupplyWater Supply - 108,881.00 286,000.00 - - - - - - 286,000.00 177,119.00 62 - Materials and SuppliesMaterials and Supplies 11,346.45 45,677.65 335,000.00 - - - - - - 335,000.00 289,322.35 63 - Contract ServicesContract Services 6,358.04 114,768.02 461,000.00 - - - - - - 461,000.00 346,231.98 64 - UtilitiesUtilities 335,509.76 719,934.04 2,564,000.00 - - - - - - 2,564,000.00 1,844,065.96 65 - Professional DevelopmentProfessional Development 100.00 5,066.99 11,000.00 - - - - - - 11,000.00 5,933.01 Program: 5000 - Water Production Total:470,100.06 1,382,175.58 4,927,000.00 - - - - - - 4,927,000.00 3,544,824.42 - - - - - - Program: 5100 - Water Treatment - - - - - - 51 - LaborLabor 15,470.40 39,376.78 261,000.00 - - - - - - 261,000.00 221,623.22 53 - OvertimeOvertime 8,618.45 14,480.32 39,000.00 - - - - - - 39,000.00 24,519.68 56 - BenefitsBenefits 5,128.57 78,193.19 159,000.00 - - - - - - 159,000.00 80,806.81 62 - Materials and SuppliesMaterials and Supplies 21,898.71 70,111.80 170,000.00 - - - - - - 170,000.00 99,888.20 63 - Contract ServicesContract Services 77,996.10 105,371.52 149,000.00 - - - - - - 149,000.00 43,628.48 64 - UtilitiesUtilities 1,527.88 49,722.61 182,000.00 - - - - - - 182,000.00 132,277.39 Program: 5100 - Water Treatment Total:130,640.11 357,256.22 960,000.00 - - - - - - 960,000.00 602,743.78 - - - - - - Program: 5200 - Water Quality - - - - - - 51 - LaborLabor 24,586.82 50,565.74 238,000.00 - - - - - - 238,000.00 187,434.26 53 - OvertimeOvertime 174.27 958.49 12,000.00 - - - - - - 12,000.00 11,041.51 56 - BenefitsBenefits 5,383.08 40,833.56 114,000.00 - - - - - - 114,000.00 73,166.44 62 - Materials and SuppliesMaterials and Supplies 1,959.58 2,571.04 20,000.00 - - - - - - 20,000.00 17,428.96 63 - Contract ServicesContract Services 7,476.58 25,133.56 165,000.00 - - - - - - 165,000.00 139,866.44 64 - UtilitiesUtilities - - 2,000.00 - - - - - - 2,000.00 2,000.00 65 - Professional DevelopmentProfessional Development - 220.36 6,000.00 - - - - - - 6,000.00 5,779.64 Program: 5200 - Water Quality Total:39,580.33 120,282.75 557,000.00 - - - - - - 557,000.00 436,717.25 - - - - - - Page 5 of 6 AMENDED AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Quarter Ended September 30, 2022 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Program: 6000 - Field Maintenance Administration - - - - - - 51 - LaborLabor 19,867.12 38,257.40 180,900.00 2,187.53 6,258.22 20,100.00 - - - 201,000.00 156,484.38 52 - Temporary LaborTemporary Labor - - - - - - - - - - - 53 - OvertimeOvertime - 1,144.08 1,800.00 - 127.12 200.00 - - - 2,000.00 728.80 54 - StandbyStandby 2,552.00 5,339.18 18,000.00 168.00 459.92 2,000.00 - - - 20,000.00 14,200.90 56 - BenefitsBenefits 7,352.17 60,000.87 126,000.00 790.88 7,020.37 14,000.00 - - - 140,000.00 72,978.76 62 - Materials and SuppliesMaterials and Supplies - - 2,700.00 - - 300.00 - - - 3,000.00 3,000.00 63 - Contract ServicesContract Services 447.89 1,293.27 900.00 17.64 90.81 100.00 - - - 1,000.00 (384.08) 64 - UtilitiesUtilities 3,313.84 6,345.55 36,900.00 368.20 575.10 4,100.00 - - - 41,000.00 34,079.35 65 - Professional DevelopmentProfessional Development 170.00 1,931.39 21,600.00 - 167.51 2,400.00 - - - 24,000.00 21,901.10 Program: 6000 - Field Maintenance Administration Total:33,703.02 114,311.74 388,800.00 3,532.25 14,699.05 43,200.00 - - - 432,000.00 302,989.21 - - - - - - Program: 6100 - Water Maintenance - - - - - - 51 - LaborLabor 125,988.51 258,907.42 1,153,000.00 - - - - - - 1,153,000.00 894,092.58 53 - OvertimeOvertime 53,432.48 102,485.14 219,000.00 - - - - - - 219,000.00 116,514.86 56 - BenefitsBenefits 39,316.86 248,215.33 602,000.00 - - - - - - 602,000.00 353,784.67 62 - Materials and SuppliesMaterials and Supplies 56,401.33 218,354.29 471,000.00 - - - - - - 471,000.00 252,645.71 63 - Contract ServicesContract Services 35,647.20 135,251.04 637,000.00 - - - - - - 637,000.00 501,748.96 64 - UtilitiesUtilities - 3,645.00 - - - - - - - - (3,645.00) Program: 6100 - Water Maintenance Total:310,786.38 966,858.22 3,082,000.00 - - - - - - 3,082,000.00 2,115,141.78 - - - - - - Program: 6200 - Wastewater Maintenance - - - - - - 51 - LaborLabor - - - 40,619.76 70,722.80 362,000.00 - - - 362,000.00 291,277.20 53 - OvertimeOvertime - - - 1,430.37 6,535.31 9,000.00 - - - 9,000.00 2,464.69 56 - BenefitsBenefits - - - 11,089.36 20,992.09 196,000.00 - - - 196,000.00 175,007.91 62 - Materials and SuppliesMaterials and Supplies - - - - 254.82 36,000.00 - - - 36,000.00 35,745.18 Wastewater Treatment - - - - - 7,610,000.00 - - - 7,610,000.00 7,610,000.00 63 - Contract ServicesContract Services - - - 38,352.96 55,690.94 (7,333,000.00) - - - (7,333,000.00) (7,388,690.94) Program: 6200 - Wastewater Maintenance Total:- - - 91,492.45 154,195.96 880,000.00 - - - 880,000.00 725,804.04 - - - - - - Program: 6300 - Water Reclamation - - - - - - 51 - LaborLabor - - - - - - 54,413.18 107,669.79 820,000.00 820,000.00 712,330.21 53 - OvertimeOvertime - - - - - - 1,038.16 3,523.87 3,000.00 3,000.00 (523.87) 54 - StandbyStandby - - - - - - - - - - - 56 - BenefitsBenefits - - - - - - 11,489.62 140,769.63 473,000.00 473,000.00 332,230.37 62 - Materials and SuppliesMaterials and Supplies - - - - - - 11.84 11.84 657,000.00 657,000.00 656,988.16 63 - Contract ServicesContract Services - - - - - - 824,132.66 2,252,591.53 5,935,000.00 5,935,000.00 3,682,408.47 64 - UtilitiesUtilities - - - - - - - - 280,000.00 280,000.00 280,000.00 65 - Professional DevelopmentProfessional Development - - - - - - - - 12,000.00 12,000.00 12,000.00 Program: 6300 - Water Reclamation Total:- - - - - - 891,085.46 2,504,566.66 8,180,000.00 8,180,000.00 5,675,433.34 - - - - - - Program: 7000 - Facilities Maintenance - - - - - - 51 - LaborLabor 11,070.17 23,719.46 101,500.00 4,721.41 9,520.14 40,600.00 6,517.38 11,736.65 60,900.00 203,000.00 158,023.75 53 - OvertimeOvertime 1,337.68 4,076.98 7,000.00 367.20 1,140.14 2,800.00 131.15 483.61 4,200.00 14,000.00 8,299.27 56 - BenefitsBenefits 3,313.94 42,040.03 55,000.00 1,378.85 10,965.31 22,000.00 1,861.66 12,256.88 33,000.00 110,000.00 44,737.78 62 - Materials and SuppliesMaterials and Supplies 5,174.08 13,407.95 37,000.00 497.82 2,766.95 8,400.00 2,115.45 22,181.42 12,600.00 58,000.00 19,643.68 63 - Contract ServicesContract Services 49,918.98 246,019.10 595,600.00 8,905.29 109,746.50 215,500.00 25,001.67 148,020.22 240,900.00 1,052,000.00 548,214.18 64 - UtilitiesUtilities 11,547.26 30,587.81 92,000.00 3,802.51 8,607.15 32,400.00 12,731.97 81,250.51 48,600.00 173,000.00 52,554.53 65 - Professional DevelopmentProfessional Development - - 500.00 - - 200.00 - - 300.00 1,000.00 1,000.00 Program: 7000 - Facilities Maintenance Total:82,362.11 359,851.33 888,600.00 19,673.08 142,746.19 321,900.00 48,359.28 275,929.29 400,500.00 1,611,000.00 832,473.19 - - - Program: 7100 - Fleet Maintenance - - - - - - 51 - LaborLabor 9,077.19 18,340.09 81,900.00 1,008.57 2,037.76 9,100.00 - - - 91,000.00 70,622.15 53 - OvertimeOvertime 28.37 28.37 2,700.00 3.15 3.15 300.00 - - - 3,000.00 2,968.48 56 - BenefitsBenefits 2,197.25 4,498.73 49,500.00 244.13 499.88 5,500.00 - - - 55,000.00 50,001.39 62 - Materials and SuppliesMaterials and Supplies 6,257.28 21,953.47 95,400.00 1,589.78 4,700.90 10,600.00 - - - 106,000.00 79,345.63 63 - Contract ServicesContract Services 11,802.73 43,178.34 216,900.00 1,311.40 4,085.27 24,100.00 - - - 241,000.00 193,736.39 64 - UtilitiesUtilities 20,234.15 58,844.32 180,900.00 2,248.24 6,538.23 20,100.00 - - - 201,000.00 135,617.45 65 - Professional DevelopmentProfessional Development - - 3,600.00 - - 400.00 - - - 4,000.00 4,000.00 Program: 7100 - Fleet Maintenance Total:49,596.97 146,843.32 630,900.00 6,405.27 17,865.19 70,100.00 - - - 701,000.00 536,291.49 - - - Program: 8000 - Capital - - - - - 71 - Debt ServiceDebt Service 456,172.75 466,683.31 3,080,000.00 49,894.00 49,894.00 274,000.00 - - - 3,354,000.00 2,837,422.69 81 - Capital ImprovementCapital Improvement - - 5,425,000.00 - - 315,000.00 - - - 5,740,000.00 5,740,000.00 82 - Capital OutlayCapital Outlay 31,465.14 200,452.14 720,000.00 7,180.00 20,103.13 475,000.00 - - - 1,195,000.00 974,444.73 83 - Accounting Income Add backAccounting Income Add back - - - - - - - - - - - 88 - Transfer from ReservesTransfer to Reserves - - - - - - - - 3,000,000.00 3,000,000.00 3,000,000.00 99 - 99Transfer from Reserves - - (1,200,000.00) - - - - - - (1,200,000.00) (1,200,000.00) Program: 8000 - Capital Total:487,637.89 667,135.45 8,025,000.00 57,074.00 69,997.13 1,064,000.00 - - 3,000,000.00 12,089,000.00 11,351,867.42 Total Surplus (Deficit):1,232,526.07$ 2,147,367.08$ -$ 254,229.03$ 446,954.18$ -$ (73,771.18)$ (349,778.82)$ -$ -$ (2,244,542.44)$ Page 6 of 6 Agenda Item #2e December 14, 20221 Meeting Date: December 14, 2022 Agenda Item #2e Consent Item 7 2 0 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Financial Statements for October 2022 RECOMMENDATION That the Board of Directors (Board) accept and file the attached financial statements as of, and for the period ended, October 31, 2022. BACKGROUND / ANALYSIS The East Valley Water District (District) adopted an annual budget on June 22, 2022 for fiscal year 2022-2023. In accordance with District Administrative policy 7.7, the Chief Financial Officer provides regular budget updates to the Board. Included herewith for the Board’s review is a summary of the District’s financial results, as of October 31, 2022. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Agenda Item #2e December 14, 20222 Meeting Date: December 14, 2022 Agenda Item #2e Consent Item 7 2 0 Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS 1. October 2022 Financial Statement Monthly Review 2. October 2022 Financial Statements FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING OCTOBER 31, 2022 page | 1 The following is a highlight summary of the District’s financial results as of October 31, 2022. Please note all values presented are in millions (unless otherwise noted). Statement of Net Position Total assets at October 31, 2022 are $387.48 million. CLASSIFICATION WATER WASTEWATER RECLAMATION DISTRICT TOTAL Cash and Investments $ 20.48 $ 7.82 $ - $ 28.30 Utility Plant, Net 98.80 17.58 - 116.38 Other Assets 43.64 31.62 167.54 242.80 Current Liabilities 9.47 7.84 28.25 45.56 Long Term Liabilities 46.82 7.58 139.67 194.07 Beginning Net Position 103.41 40.93 - 144.34 Change in Equity 3.23 0.68 (0.38) 3.53 TOTAL NET $ 106.64 $ 41.61 $ (0.38) $ 147.87 Cash and Investments are $28.30 million for the month of October, an increase of $11.48 million from the prior month. In October the District received claim 26 for $2.7 million in State Revolving Funds and $6.13 million reimbursement for construction of the recycled water pipeline. The District’s Due from Other Governments balance as of October 31, 2022 is $5.13 million. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING OCTOBER 31, 2022 page | 2 $0 $5 $10 $15 $20 $25 $30 $35 Mi l l i o n s CASH & INVESTMENTS Restricted Unrestricted Comparing current assets to current liabilities, the District has a current ratio at October 31, 2022 of 1.25 to 1, with 2 to 1 being an indication of sound financial condition. Statement of Revenues & Expenses Operating results are presented in three ways in the attached financial statements for the period ending October 31, 2022. First is a one-page summary with monthly and year- to- date totals for revenue and expenses, presented by Expense Category. Second is a one- page summary with monthly and year-to-date totals for Revenues and Expense by Program. Third is a Budget-to-Actual presentation of program expense detail. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING OCTOBER 31, 2022 page | 3 Total Revenues & Expenses through October 31, 2022 are summarized below (in millions): Column1 WATER WASTEWATER RECLAMATION DISTRICT TOTAL Revenue $ 11.58 $ 2.41 $ 3.41 $ 17.40 Expense 8.35 1.73 3.79 13.87 Water Sales for the month ending October 31, 2022 were $1.68M; $62K under staff projections for the month and $7K under projections year-to-date. $- $0.5 $1.0 $1.5 $2.0 $2.5 Mi l l i o n s WATER SALES BY TIER Tier 1 Tier 2 Tier 3 FY 2022-23 Projection FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING OCTOBER 31, 2022 page | 4 Water Sales by Customer Class The table below shows the District’s water sales for the month of October 2022 by customer class. The following icons are to compliment the graph below: positive change, no change, negative change when comparing actuals versus projections. CUSTOMER CLASS ACTUAL PROJECTION $ VARIANCE % VARIANCE Residential 962,075$ 967,000$ (4,925)$ -1% Multi-Family 330,231 342,000 (11,769) -3% Commercial 167,352 171,000 (3,648) -2% Irrigation 218,347 260,000 (41,653) -16% TOTAL $1,678,005 $ 1,740,000 $ (61,995)-4% The following table displays customer class by tier for the month of October 2022: CUSTOMER CLASS TIER ACTUAL PROJECTION $ VARIANCE % VARIANCE Residential Tier 1 355,745$ 350,000$ 5,745$ 2% Residential Tier 2 372,565 417,000 (44,435) -11% Residential Tier 3 233,765 200,000 33,765 17% Multi-Family Tier 1 140,190 140,000 190 0% Multi-Family Tier 2 69,606 111,000 (41,394) -37% Multi-Family Tier 3 120,435 91,000 29,435 32% Commercial Tier 1 126,476 82,000 44,476 54% Commercial Tier 2 7,846 9,000 (1,154) -13% Commercial Tier 3 33,030 80,000 (46,970) -59% Irrigation Tier 2 110,492 135,000 (24,508) -18% Irrigation Tier 3 107,855 125,000 (17,145) -14% TOTAL $ 1,678,005 $ 1,740,000 $ (61,995)-4% Legend - Positive Change in Actuals - Neutral Change in Actuals - Negative Change in Actuals FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING OCTOBER 31, 2022 page | 5 The chart below is a comparative illustration of Water Revenue year -to-date compared to last year’s Water Revenue year-to-date as of October. As noted in the graph, Water Revenue experienced a minor decrease over last year. Water consumption decreased 174.56 million gallons (233K HCF) compared to October of 2021. $- $2.0 $4.0 $6.0 $8.0 $10.0 $12.0 10/31/2021 10/31/2022 Mi l l i o n s COMPARATIVE MONTHLY WATER REVENUE (WATER SALES & METER CHARGES) Meter Tier 1 Tier 2 Tier 3 Total -$11,193,126 Total -$10,807,229 FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING OCTOBER 31, 2022 page | 6 Water Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Water Fund operating cost centers for FY 2021-22 and FY 2022-23. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING OCTOBER 31, 2022 page | 7 Wastewater Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Wastewater Fund operating cost centers for FY 2021-22 and FY 2022-23. FINANCIAL STATEMENTS MONTHLY REVIEW MONTH ENDING OCTOBER 31, 2022 page | 8 Water Reclamation Fund Activities by Cost Center The graph below provides a year-to-date comparison of the Water Reclamation Fund operating cost centers for FY 2021-22 and FY 2022-23. WATER WASTEWATER RECLAMATION DISTRICT TOTAL Assets: Current Assets: 01 Cash and Cash Equivalents 11,983,006.64$ 689,232.23$ -$ 12,672,238.87$ 02 Investments 3,066,941.75 1,507,529.00 - 4,574,470.75 03 Accounts Receivable, Net 4,853,502.48 820,528.67 - 5,674,031.15 04 -Interest Receivable - 3,377.19 - 3,377.19 14*05 Other Receivables 2,160,946.84 - - 2,160,946.84 07 Due from Sewer Fund 5,500,000.00 - - 5,500,000.00 07.Due from Reclamation Fund 7,307,146.80 12,871,872.63 - 20,179,019.43 06 Due from Other Governments 42,000.01 - 5,091,423.34 5,133,423.35 08 Inventory 865,224.60 6,721.16 - 871,945.76 09 Prepaid Expenses 228,291.13 37,084.15 1,720.50 267,095.78 36,007,060.25 15,936,345.03 5,093,143.84 57,036,549.12 Non-Current Assets: 10 Restricted Cash and Cash Equivalents 5,425,472.85 5,624,841.57 - 11,050,314.42 11 Capital Assets not being Depreciated 19,947,799.64 16,900,165.78 162,447,932.17 199,295,897.59 13 Capital Assets, Net 98,804,274.33 17,584,763.40 - 116,389,037.73 124,177,546.82 40,109,770.75 162,447,932.17 326,735,249.74 Total Assets:160,184,607.07 56,046,115.78 167,541,076.01 383,771,798.86 Deferred Outflow Of Resources 24*Deferred Charge on Refunding 610,558.73 286,292.69 - 896,851.42 25 Deferred Outflows - Pensions 2,127,130.34 691,919.73 - 2,819,050.07 162,922,296.14 57,024,328.20 167,541,076.01 387,487,700.35 Current Liabilities: 22 Accounts Payable and Accrued Expenses 5,734,348.17 27,441.76 - 5,761,789.93 29 Due to Water Fund - 5,500,000.00 7,307,146.80 12,807,146.80 29.Due to Sewer Fund - - 12,871,872.63 12,871,872.63 23 Accrued Payroll and Benefits 1,040.45 4,535.83 - 5,576.28 15 Customer Service Deposits 1,433,205.77 - - 1,433,205.77 16 Construction Advances and Retentions 522,196.68 2,174,157.44 8,072,035.09 10,768,389.21 17 Accrued Interest Payable 238,560.36 24,947.00 - 263,507.36 18 Current Portion of Compensated Absences 495,871.40 108,250.60 - 604,122.00 19 Current Portion of Long-Term Debt 1,044,052.55 - - 1,044,052.55 9,469,275.38 7,839,332.63 28,251,054.52 45,559,662.53 Non-Current Liabilities: 20 Compensated Absences, less current portion 453,128.42 77,198.99 - 530,327.41 28 Net Pension Liability 5,094,004.28 1,563,684.95 - 6,657,689.23 21 Long Term Debt, Less Current Portion 35,864,413.60 4,938,562.10 139,669,059.00 180,472,034.70 27 Other Liabilities 1,173.64 - - 1,173.64 Deferred Inflows Of Resources 26 Deferred Inflows - Pensions 5,403,596.94 1,000,008.59 - 6,403,605.53 46,816,316.88 7,579,454.63 139,669,059.00 194,064,830.51 56,285,592.26 15,418,787.26 167,920,113.52 239,624,493.04 31 Equity 103,409,180.60 40,925,997.03 - 144,335,177.63 103,409,180.60 40,925,997.03 - 144,335,177.63 Tot Total Revenue 11,577,005.81 2,407,767.50 3,410,755.46 17,395,528.77 Tot Total Expense 8,349,482.53 1,728,223.59 3,789,792.97 13,867,499.09 3,227,523.28 679,543.91 (379,037.51) 3,528,029.68 106,636,703.88 41,605,540.94 (379,037.51) 147,863,207.31 162,922,296.14$ 57,024,328.20$ 167,541,076.01$ 387,487,700.35$ Total Liabilities, Equity and Current Surplus (Deficit): Total Beginning Equity: Equity: Revenues Over/Under Expenses Total Current Liabilities: Total Non-Current and Deferred Inflows of Resources: Total Liabilities and Deferred Inflows of Resources: Unaudited As of October 31, 2022 Combining Schedule of Net Position Total Equity and Current Surplus (Deficit): Total Assets and Deferred Outflows of Resources: Total Current Assets: Total Non-Current Assets: Page 1 of 6 AMENDED AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 1,678,005.07$ 7,574,447.01$ 17,700,000.00$ -$ -$ -$ -$ -$ 692,000.00$ 18,392,000.00$ 10,817,552.99$ 42 Meter Charges 808,903.95 3,232,989.58 9,685,000.00 - - - - - - 9,685,000.00 6,452,010.42 43 Penalties 46,616.95 196,188.63 468,000.00 4,746.44 21,233.58 95,000.00 - - - 563,000.00 345,577.79 44 Wastewater System Charges - - - 462,888.24 1,852,982.57 5,621,000.00 - - - 5,621,000.00 3,768,017.43 45 Wastewater Treatment Charges - - - - - - 858,285.56 3,410,755.46 9,851,000.00 9,851,000.00 6,440,244.54 46 Other Operating Revenue 150,884.55 569,291.65 62,000.00 112,426.21 533,551.35 - - - 1,820,000.00 1,882,000.00 779,157.00 47 Non Operating Revenue 21.92 4,088.94 40,000.00 - - 5,000.00 - - 11,000.00 56,000.00 51,911.06 48 Gain or Loss on Disposition - - - - - - - - - - - 56 Benefits - - - - - - - - - - - 68 Depreciation - - - - - - - - - - - Revenue Total: 2,684,432.44 11,577,005.81 27,955,000.00 580,060.89 2,407,767.50 5,721,000.00 858,285.56 3,410,755.46 12,374,000.00 46,050,000.00 28,654,471.23 - - - - - - - - Expense by Category 51 Labor 395,014.83 1,594,447.85 5,573,300.00 112,099.78 441,804.38 1,573,900.00 51,491.24 198,235.75 1,040,800.00 8,188,000.00 5,953,512.02 52 Temporary Labor 1,302.71 6,565.34 21,000.00 977.03 4,924.03 9,000.00 977.01 4,923.99 - 30,000.00 13,586.64 56 Benefits 144,695.19 1,370,962.24 2,869,400.00 42,872.14 317,366.03 801,500.00 14,727.52 197,530.72 598,100.00 4,269,000.00 2,383,141.01 63 Contract Services 272,611.96 1,365,069.43 4,825,200.00 118,700.37 499,001.50 1,530,400.00 772,217.66 3,226,415.68 6,390,400.00 12,746,000.00 7,655,513.39 65 Professional Development 45,192.37 92,357.37 313,000.00 17,669.35 34,140.72 114,000.00 50.45 76.74 18,000.00 445,000.00 318,425.17 53 Overtime 28,600.51 173,487.43 393,200.00 1,686.53 13,478.54 25,500.00 215.39 6,112.34 9,300.00 428,000.00 234,921.69 62 Materials and Supplies 230,115.16 657,935.05 1,572,000.00 10,231.48 41,381.51 124,300.00 9,772.29 32,574.85 671,700.00 2,368,000.00 1,636,108.59 64 Utilities 443,160.60 1,349,697.05 3,322,800.00 10,585.95 40,687.89 179,300.00 28,304.39 110,187.62 376,900.00 3,879,000.00 2,378,427.44 52 Temporary Labor 1,302.71 6,565.34 21,000.00 977.03 4,924.03 9,000.00 977.01 4,923.99 - 30,000.00 13,586.64 67 Other 23,251.54 928,789.14 700,100.00 9,439.87 237,826.28 288,100.00 8,811.29 8,811.29 268,800.00 1,257,000.00 81,573.29 54 Standby 2,184.00 10,745.18 33,000.00 116.00 575.92 2,000.00 - - - 35,000.00 23,678.90 61 Water Supply - 108,881.00 286,000.00 - - - - - - 286,000.00 177,119.00 71 -Debt Service - 466,683.31 3,080,000.00 - 49,894.00 274,000.00 - - - 3,354,000.00 2,837,422.69 81 -Capital Improvement - - 5,425,000.00 - - 315,000.00 - - - 5,740,000.00 5,740,000.00 82 -Capital Outlay 16,844.66 217,296.80 720,000.00 22,115.63 42,218.76 475,000.00 - - - 1,195,000.00 935,484.44 83 -Accounting Income Add back - - - - - - - - - - - 88 -Transfer to Reserves - - - - - - - - 3,000,000.00 3,000,000.00 3,000,000.00 99 -Transfer from Reserves - - (1,200,000.00) - - - - - - (1,200,000.00) (1,200,000.00) Expense Total: 1,604,276.24 8,349,482.53 27,955,000.00 347,471.16 1,728,223.59 5,721,000.00 887,544.25 3,789,792.97 12,374,000.00 46,050,000.00 32,182,500.91 Total Surplus (Deficit):1,080,156.20$ 3,227,523.28$ -$ 232,589.73$ 679,543.91$ -$ (29,258.69)$ (379,037.51)$ -$ -$ (3,528,029.68)$ Unaudited Revenue and Expense Budget-to-Actual by Category Month Ended October 31, 2022 WATER WASTEWATER DISTRICT WIDERECLAMATION Page 2 of 6 AMENDED AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 1,678,005.07$ 7,574,447.01$ 17,700,000.00$ -$ -$ -$ -$ -$ 692,000.00$ 18,392,000.00$ 10,817,552.99$ 42 Meter Charges 808,903.95 3,232,989.58 9,685,000.00 - - - - - - 9,685,000.00 6,452,010.42 43 Penalties 46,616.95 196,188.63 468,000.00 4,746.44 21,233.58 95,000.00 - - - 563,000.00 345,577.79 44 Wastewater System Charges - - - 462,888.24 1,852,982.57 5,621,000.00 - - - 5,621,000.00 3,768,017.43 45 Wastewater Treatment Charges - - - - - - 858,285.56 3,410,755.46 9,851,000.00 9,851,000.00 6,440,244.54 46 Other Operating Revenue 150,884.55 569,291.65 62,000.00 112,426.21 533,551.35 - - - 1,820,000.00 1,882,000.00 779,157.00 47 Non Operating Revenue 21.92 4,088.94 40,000.00 - - 5,000.00 - - 11,000.00 56,000.00 51,911.06 Revenue Total: 2,684,432.44 11,577,005.81 27,955,000.00 580,060.89 2,407,767.50 5,721,000.00 858,285.56 3,410,755.46 12,374,000.00 46,050,000.00 28,654,471.23 Program1000 - Board of Directors 23,242.09 77,310.40 331,800.00 9,940.79 32,944.31 142,200.00 - - - 474,000.00 363,745.29 Program2000 - General Administration 88,116.03 335,711.85 961,800.00 36,770.40 139,821.03 412,200.00 - - - 1,374,000.00 898,467.12 Program2100 - Human Resources 55,414.41 1,141,098.77 1,178,600.00 23,307.61 327,764.00 492,400.00 8,811.29 8,811.29 267,000.00 1,938,000.00 460,325.94 Program2200 - Public Affairs 58,003.65 353,659.84 1,216,600.00 24,738.60 186,139.55 521,400.00 - - - 1,738,000.00 1,198,200.61 Program2300 - Conservation 17,329.79 130,151.38 917,000.00 - - - - - - 917,000.00 786,848.62 Program3000 - Finance 47,653.61 257,585.45 834,400.00 20,422.84 110,724.35 357,600.00 - - - 1,192,000.00 823,690.20 Program3200 - Information Technology 64,098.31 325,805.92 949,200.00 27,377.68 143,028.60 406,800.00 - - - 1,356,000.00 887,165.48 Program3300 - Customer Service 40,154.26 210,235.45 702,000.00 29,927.02 155,115.35 526,500.00 29,920.79 151,673.56 526,500.00 1,755,000.00 1,237,975.64 Program3400 - Meter Service 17,097.82 86,502.76 278,000.00 - 747.25 - - - - 278,000.00 190,749.99 Program4000 - Engineering 42,824.22 166,364.05 1,126,300.00 16,395.33 73,844.74 482,700.00 - - - 1,609,000.00 1,368,791.21 Program5000 - Water Production 539,429.90 1,921,605.48 4,927,000.00 - - - - - - 4,927,000.00 3,005,394.52 Program5100 - Water Treatment 157,466.58 514,722.80 960,000.00 - - - - - - 960,000.00 445,277.20 Program5200 - Water Quality 35,607.60 155,890.35 557,000.00 - - - - - - 557,000.00 401,109.65 Program6000 - Field Maintenance Administration 29,463.27 143,775.01 388,800.00 3,186.00 17,885.05 43,200.00 - - - 432,000.00 270,339.94 Program6100 - Water Maintenance 253,148.10 1,220,006.32 3,082,000.00 - - - - - - 3,082,000.00 1,861,993.68 Program6200 - Wastewater Maintenance - - - 102,996.42 257,192.38 880,000.00 - - - 880,000.00 622,807.62 Program6300 - Water Reclamation - - - - - - 777,140.84 3,281,707.50 8,180,000.00 8,180,000.00 4,898,292.50 Program7000 - Facilities Maintenance 58,186.04 418,037.37 888,600.00 17,274.60 160,020.79 321,900.00 71,671.33 347,600.62 400,500.00 1,611,000.00 685,341.22 Program7100 - Fleet Maintenance 60,195.90 207,039.22 630,900.00 13,018.24 30,883.43 70,100.00 - - - 701,000.00 463,077.35 Program8000 - Capital 16,844.66 683,980.11 8,025,000.00 22,115.63 92,112.76 1,064,000.00 - - 3,000,000.00 12,089,000.00 11,312,907.13 Expense Total: 1,604,276.24 8,349,482.53 27,955,000.00 347,471.16 1,728,223.59 5,721,000.00 887,544.25 3,789,792.97 12,374,000.00 46,050,000.00 32,182,500.91 Total Surplus (Deficit):1,080,156.20$ 3,227,523.28$ -$ 232,589.73$ 679,543.91$ -$ (29,258.69)$ (379,037.51)$ -$ -$ (3,528,029.68)$ .. WATER WASTEWATER DISTRICT WIDE Revenue and Expense Budget-to-Actual by Program Month Ended October 31, 2022 Unaudited RECLAMATION Page 3 of 6 AMENDED AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Revenue 41 Water Sales 1,678,005.07$ 7,574,447.01$ 17,700,000.00$ -$ -$ -$ -$ -$ 692,000.00$ 18,392,000.00$ 10,817,552.99$ 42 Meter Charges 808,903.95 3,232,989.58 9,685,000.00 - - - - - - 9,685,000.00 6,452,010.42 43 Penalties 46,616.95 196,188.63 468,000.00 4,746.44 21,233.58 95,000.00 - - - 563,000.00 345,577.79 44 Wastewater System Charges - - - 462,888.24 1,852,982.57 5,621,000.00 - - - 5,621,000.00 3,768,017.43 45 Wastewater Treatment Charges - - - - - - 858,285.56 3,410,755.46 9,851,000.00 9,851,000.00 6,440,244.54 46 Other Operating Revenue 150,884.55 569,291.65 62,000.00 112,426.21 533,551.35 - - - 1,820,000.00 1,882,000.00 779,157.00 47 Non Operating Revenue 21.92 4,088.94 40,000.00 - - 5,000.00 - - 11,000.00 56,000.00 51,911.06 48 Gain or Loss on Disposition - - - - - - - - - - - 56 Benefits - - - - - - - - - - - 68 Depreciation - - - - - - - - - - - Revenue Total: 2,684,432.44 11,577,005.81 27,955,000.00 580,060.89 2,407,767.50 5,721,000.00 858,285.56 3,410,755.46 12,374,000.00 46,050,000.00 28,654,471.23 Program: 1000 - Board of Directors - - - - - 51 Labor 5,827.50$ 26,460.00$ 94,500.00$ 2,497.50$ 11,340.00$ 40,500.00$ -$ -$ -$ 135,000.00$ 97,200.00$ 56 Benefits 4,111.83 16,699.35 61,600.00 1,762.20 7,156.79 26,400.00 - - - 88,000.00 64,143.86 62 Materials and Supplies - - 1,400.00 - - 600.00 - - - 2,000.00 2,000.00 63 Contract Services 10,500.00 28,000.00 156,800.00 4,500.00 12,000.00 67,200.00 - - - 224,000.00 184,000.00 65 Professional Development 2,802.76 6,151.05 17,500.00 1,181.09 2,447.52 7,500.00 - - - 25,000.00 16,401.43 Program: 1000 - Board of Directors Total: 23,242.09 77,310.40 331,800.00 9,940.79 32,944.31 142,200.00 - - - 474,000.00 363,745.29 Program: 2000 - General Administration - - - - - 51 Labor 23,995.40 107,167.07 367,500.00 10,283.80 45,814.68 157,500.00 - - - 525,000.00 372,018.25 52 Temporary Labor - - 21,000.00 - - 9,000.00 - - - 30,000.00 30,000.00 53 Overtime - 241.67 2,800.00 - 103.56 1,200.00 - - - 4,000.00 3,654.77 56 Benefits 22,310.98 121,739.29 237,300.00 8,568.18 48,232.59 101,700.00 - - - 339,000.00 169,028.12 62 Materials and Supplies 372.00 590.84 4,900.00 159.43 253.20 2,100.00 - - - 7,000.00 6,155.96 63 Contract Services 10,623.59 57,325.54 221,200.00 4,552.97 24,568.10 94,800.00 - - - 316,000.00 234,106.36 64 Utilities 233.33 392.97 4,200.00 99.99 168.41 1,800.00 - - - 6,000.00 5,438.62 65 Professional Development 30,580.73 48,254.47 102,900.00 13,106.03 20,680.49 44,100.00 - - - 147,000.00 78,065.04 Program: 2000 - General Administration Total: 88,116.03 335,711.85 961,800.00 36,770.40 139,821.03 412,200.00 - - - 1,374,000.00 898,467.12 Program: 2100 - Human Resources - - - - - - 51 Labor 15,756.72 56,744.03 214,900.00 6,752.89 24,041.22 92,100.00 - - - 307,000.00 226,214.75 52 Temporary Labor - - - - - - - - - - - 53 Overtime 579.23 758.33 2,100.00 248.23 311.11 900.00 - - - 3,000.00 1,930.56 56 Benefits 4,650.02 95,019.83 123,900.00 1,992.82 40,365.47 53,100.00 - - - 177,000.00 41,614.70 62 Materials and Supplies (26.46) 592.37 4,900.00 (11.35) 253.87 2,100.00 - - - 7,000.00 6,153.76 63 Contract Services 6,144.16 43,825.45 87,500.00 2,633.21 17,349.85 37,500.00 - - - 125,000.00 63,824.70 64 Utilities 80.94 167.02 700.00 34.69 71.57 300.00 - - - 1,000.00 761.41 65 Professional Development 5,237.56 17,779.51 46,900.00 2,222.91 7,576.86 20,100.00 - - - 67,000.00 41,643.63 67 Other 22,992.24 926,212.23 697,700.00 9,434.21 237,794.05 286,300.00 8,811.29 8,811.29 267,000.00 1,251,000.00 78,182.43 Program: 2100 - Human Resources Total: 55,414.41 1,141,098.77 1,178,600.00 23,307.61 327,764.00 492,400.00 8,811.29 8,811.29 267,000.00 1,938,000.00 460,325.94 Program: 2200 - Public Affairs - - - - - - 51 Labor 34,484.26 128,311.27 412,300.00 14,778.95 54,990.50 176,700.00 - - - 589,000.00 405,698.23 52 Temporary Labor - - - - - - - - - - - 53 Overtime 193.07 2,320.33 11,900.00 82.75 994.43 5,100.00 - - - 17,000.00 13,685.24 56 Benefits 9,065.05 85,868.06 170,100.00 3,884.91 36,800.30 72,900.00 - - - 243,000.00 120,331.64 62 Materials and Supplies 4,996.88 36,845.78 91,000.00 2,141.53 15,791.04 39,000.00 - - - 130,000.00 77,363.18 63 Contract Services 7,372.75 87,268.86 477,400.00 3,039.75 65,065.32 204,600.00 - - - 682,000.00 529,665.82 64 Utilities 274.06 9,049.57 26,600.00 117.45 10,785.39 11,400.00 - - - 38,000.00 18,165.04 65 Professional Development 1,617.58 3,995.97 27,300.00 693.26 1,712.57 11,700.00 - - - 39,000.00 33,291.46 Program: 2200 - Public Affairs Total: 58,003.65 353,659.84 1,216,600.00 24,738.60 186,139.55 521,400.00 - - - 1,738,000.00 1,198,200.61 Program: 2300 - Conservation - - - - - - 51 Labor 7,921.61 33,254.30 107,000.00 - - - - - - 107,000.00 73,745.70 52 Temporary Labor - - - - - - - - - - - 53 Overtime - 1,856.62 7,000.00 - - - - - - 7,000.00 5,143.38 56 Benefits 2,755.06 10,087.87 40,000.00 - - - - - - 40,000.00 29,912.13 62 Materials and Supplies 1,021.81 2,710.96 278,000.00 - - - - - - 278,000.00 275,289.04 63 Contract Services 4,371.00 69,086.70 442,000.00 - - - - - - 442,000.00 372,913.30 64 Utilities 64.44 11,891.56 26,000.00 - - - - - - 26,000.00 14,108.44 65 Professional Development 1,195.87 1,263.37 17,000.00 - - - - - - 17,000.00 15,736.63 Program: 2300 - Conservation Total: 17,329.79 130,151.38 917,000.00 - - - - - - 917,000.00 786,848.62 Program: 3000 - Finance - - - - - - 51 Labor 31,601.36 132,275.10 490,000.00 13,543.45 56,994.37 210,000.00 - - - 700,000.00 510,730.53 52 Temporary Labor - - - - - - - - - - - 53 Overtime 311.07 2,046.09 9,100.00 133.30 876.85 3,900.00 - - - 13,000.00 10,077.06 56 Benefits 9,557.93 108,529.65 222,600.00 4,096.13 46,566.12 95,400.00 - - - 318,000.00 162,904.23 62 Materials and Supplies 281.79 1,040.34 8,400.00 120.77 445.90 3,600.00 - - - 12,000.00 10,513.76 63 Contract Services 5,355.59 11,006.41 80,500.00 2,295.25 4,689.18 34,500.00 - - - 115,000.00 99,304.41 64 Utilities 466.42 978.51 2,800.00 199.89 419.36 1,200.00 - - - 4,000.00 2,602.13 65 Professional Development 79.45 1,709.35 21,000.00 34.05 732.57 9,000.00 - - - 30,000.00 27,558.08 67 Other - - - - - - - - - - - Program: 3000 - Finance Total: 47,653.61 257,585.45 834,400.00 20,422.84 110,724.35 357,600.00 - - - 1,192,000.00 823,690.20 Month Ended October 31, 2022 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Page 4 of 6 AMENDED AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended October 31, 2022 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Program: 3200 - Information Technology - - - - - - 51 Labor 20,280.97 78,347.74 266,000.00 8,691.83 36,553.54 114,000.00 - - - 380,000.00 265,098.72 52 Temporary Labor - - - - - - - - - - - 53 Overtime - 301.39 - - 129.17 - - - - - (430.56) 56 Benefits 6,229.36 90,602.61 148,400.00 2,669.70 39,439.90 63,600.00 - - - 212,000.00 81,957.49 62 Materials and Supplies 6,786.62 26,458.77 32,200.00 2,908.55 11,339.47 13,800.00 - - - 46,000.00 8,201.76 63 Contract Services 27,266.89 120,712.55 483,700.00 11,592.83 51,545.31 207,300.00 - - - 691,000.00 518,742.14 64 Utilities 3,443.47 9,011.42 8,400.00 1,475.77 3,862.03 3,600.00 - - - 12,000.00 (873.45) 65 Professional Development 91.00 371.44 10,500.00 39.00 159.18 4,500.00 - - - 15,000.00 14,469.38 Program: 3200 - Information Technology Total: 64,098.31 325,805.92 949,200.00 27,377.68 143,028.60 406,800.00 - - - 1,356,000.00 887,165.48 Program: 3300 - Customer Service - - - - - - 51 Labor 15,575.10 60,947.63 213,200.00 11,681.32 45,344.00 159,900.00 11,681.18 42,966.23 159,900.00 533,000.00 383,742.14 52 Temporary Labor 1,302.71 6,565.34 - 977.03 4,924.03 - 977.01 4,923.99 - - (16,413.36) 53 Overtime 202.62 3,030.32 2,800.00 151.97 2,250.30 2,100.00 151.94 2,041.41 2,100.00 7,000.00 (322.03) 56 Benefits 5,919.94 46,549.68 122,800.00 4,440.09 34,811.45 92,100.00 4,439.73 34,216.42 92,100.00 307,000.00 191,422.45 62 Materials and Supplies 469.52 1,281.91 2,800.00 352.14 961.43 2,100.00 352.17 961.47 2,100.00 7,000.00 3,795.19 63 Contract Services 13,481.87 85,461.77 286,000.00 10,111.41 63,925.49 214,500.00 10,111.38 63,697.65 214,500.00 715,000.00 501,915.09 64 Utilities 2,875.91 3,719.55 64,400.00 2,156.93 2,789.66 48,300.00 2,156.93 2,789.65 48,300.00 161,000.00 151,701.14 65 Professional Development 67.29 102.34 7,600.00 50.47 76.76 5,700.00 50.45 76.74 5,700.00 19,000.00 18,744.16 67 Other 259.30 2,576.91 2,400.00 5.66 32.23 1,800.00 - - 1,800.00 6,000.00 3,390.86 Program: 3300 - Customer Service Total: 40,154.26 210,235.45 702,000.00 29,927.02 155,115.35 526,500.00 29,920.79 151,673.56 526,500.00 1,755,000.00 1,237,975.64 Program: 3400 - Meter Service - - - - - - 51 Labor 12,061.82 48,115.26 164,000.00 - 447.84 - - - - 164,000.00 115,436.90 53 Overtime 57.11 1,246.20 6,000.00 - - - - - - 6,000.00 4,753.80 56 Benefits 4,641.11 36,219.50 96,000.00 - 299.41 - - - - 96,000.00 59,481.09 62 Materials and Supplies - - 4,000.00 - - - - - - 4,000.00 4,000.00 63 Contract Services 106.09 458.97 7,000.00 - - - - - - 7,000.00 6,541.03 64 Utilities 231.69 462.83 1,000.00 - - - - - - 1,000.00 537.17 65 Professional Development - - - - - - - - - - - Program: 3400 - Meter Service Total: 17,097.82 86,502.76 278,000.00 - 747.25 - - - - 278,000.00 190,749.99 Program: 4000 - Engineering - - - - - - 51 Labor 29,140.73 117,504.47 467,600.00 12,488.87 50,305.14 200,400.00 - - - 668,000.00 500,190.39 52 Temporary Labor - - - - - - - - - - - 53 Overtime - - 2,100.00 - - 900.00 - - - 3,000.00 3,000.00 56 Benefits 6,535.37 26,623.32 135,100.00 2,800.80 11,496.16 57,900.00 - - - 193,000.00 154,880.52 62 Materials and Supplies 409.28 534.16 13,300.00 177.22 230.74 5,700.00 - - - 19,000.00 18,235.10 63 Contract Services 3,748.50 7,266.81 357,700.00 546.00 10,815.78 153,300.00 - - - 511,000.00 492,917.41 64 Utilities 2,416.87 11,870.82 130,900.00 243.81 613.57 56,100.00 - - - 187,000.00 174,515.61 65 Professional Development 573.47 2,564.47 19,600.00 138.63 383.35 8,400.00 - - - 28,000.00 25,052.18 Program: 4000 - Engineering Total: 42,824.22 166,364.05 1,126,300.00 16,395.33 73,844.74 482,700.00 - - - 1,609,000.00 1,368,791.21 Program: 5000 - Water Production - - - - - - 51 Labor 55,901.48 238,948.84 781,000.00 - - - - - - 781,000.00 542,051.16 53 Overtime 3,097.35 14,532.14 70,000.00 - - - - - - 70,000.00 55,467.86 54 Standby 800.00 4,022.00 15,000.00 - - - - - - 15,000.00 10,978.00 56 Benefits 16,821.90 206,965.63 404,000.00 - - - - - - 404,000.00 197,034.37 61 Water Supply - 108,881.00 286,000.00 - - - - - - 286,000.00 177,119.00 62 Materials and Supplies 35,366.33 81,043.98 335,000.00 - - - - - - 335,000.00 253,956.02 63 Contract Services 54,594.91 169,362.93 461,000.00 - - - - - - 461,000.00 291,637.07 64 Utilities 372,120.93 1,092,054.97 2,564,000.00 - - - - - - 2,564,000.00 1,471,945.03 65 Professional Development 727.00 5,793.99 11,000.00 - - - - - - 11,000.00 5,206.01 Program: 5000 - Water Production Total: 539,429.90 1,921,605.48 4,927,000.00 - - - - - - 4,927,000.00 3,005,394.52 Program: 5100 - Water Treatment - - - - - - 51 Labor 14,956.00 54,332.78 261,000.00 - - - - - - 261,000.00 206,667.22 53 Overtime 4,602.16 19,082.48 39,000.00 - - - - - - 39,000.00 19,917.52 56 Benefits 4,414.08 82,607.27 159,000.00 - - - - - - 159,000.00 76,392.73 62 Materials and Supplies 102,309.92 172,421.72 170,000.00 - - - - - - 170,000.00 (2,421.72) 63 Contract Services 10,979.50 116,351.02 149,000.00 - - - - - - 149,000.00 32,648.98 64 Utilities 20,204.92 69,927.53 182,000.00 - - - - - - 182,000.00 112,072.47 Program: 5100 - Water Treatment Total: 157,466.58 514,722.80 960,000.00 - - - - - - 960,000.00 445,277.20 Program: 5200 - Water Quality - - - - - - 51 Labor 18,131.21 68,696.95 238,000.00 - - - - - - 238,000.00 169,303.05 53 Overtime - 958.49 12,000.00 - - - - - - 12,000.00 11,041.51 56 Benefits 4,306.05 45,139.61 114,000.00 - - - - - - 114,000.00 68,860.39 62 Materials and Supplies 688.97 3,260.01 20,000.00 - - - - - - 20,000.00 16,739.99 63 Contract Services 12,196.89 37,330.45 165,000.00 - - - - - - 165,000.00 127,669.55 64 Utilities - - 2,000.00 - - - - - - 2,000.00 2,000.00 65 Professional Development 284.48 504.84 6,000.00 - - - - - - 6,000.00 5,495.16 Program: 5200 - Water Quality Total: 35,607.60 155,890.35 557,000.00 - - - - - - 557,000.00 401,109.65 Page 5 of 6 AMENDED AMENDED AMENDED AMENDED REMAINING MTD YTD BUDGET MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET BUDGET Month Ended October 31, 2022 Unaudited Program Expense Detail Budget-to-Actual WATER WASTEWATER DISTRICT WIDERECLAMATION Program: 6000 - Field Maintenance Administration - - - - - - 51 Labor 13,244.73 51,502.13 180,900.00 1,458.37 7,716.59 20,100.00 - - - 201,000.00 141,781.28 52 Temporary Labor - - - - - - - - - - - 53 Overtime - 1,144.08 1,800.00 - 127.12 200.00 - - - 2,000.00 728.80 54 Standby 1,384.00 6,723.18 18,000.00 116.00 575.92 2,000.00 - - - 20,000.00 12,700.90 56 Benefits 6,178.05 66,178.92 126,000.00 672.86 7,693.23 14,000.00 - - - 140,000.00 66,127.85 62 Materials and Supplies - - 2,700.00 - - 300.00 - - - 3,000.00 3,000.00 63 Contract Services 472.88 1,766.15 900.00 40.70 131.51 100.00 - - - 1,000.00 (897.66) 64 Utilities 6,248.43 12,593.98 36,900.00 694.16 1,269.26 4,100.00 - - - 41,000.00 27,136.76 65 Professional Development 1,935.18 3,866.57 21,600.00 203.91 371.42 2,400.00 - - - 24,000.00 19,762.01 Program: 6000 - Field Maintenance Administration Total: 29,463.27 143,775.01 388,800.00 3,186.00 17,885.05 43,200.00 - - - 432,000.00 270,339.94 Program: 6100 - Water Maintenance - - - - - - 51 Labor 84,007.10 342,914.52 1,153,000.00 - - - - - - 1,153,000.00 810,085.48 53 Overtime 19,424.97 121,910.11 219,000.00 - - - - - - 219,000.00 97,089.89 56 Benefits 32,096.64 280,311.97 602,000.00 - - - - - - 602,000.00 321,688.03 62 Materials and Supplies 64,070.55 282,424.84 471,000.00 - - - - - - 471,000.00 188,575.16 63 Contract Services 53,548.84 188,799.88 637,000.00 - - - - - - 637,000.00 448,200.12 64 Utilities - 3,645.00 - - - - - - - - (3,645.00) Program: 6100 - Water Maintenance Total: 253,148.10 1,220,006.32 3,082,000.00 - - - - - - 3,082,000.00 1,861,993.68 Program: 6200 - Wastewater Maintenance - - - - - - 51 Labor - - - 27,079.84 97,802.64 362,000.00 - - - 362,000.00 264,197.36 53 Overtime - - - 1,140.48 7,675.79 9,000.00 - - - 9,000.00 1,324.21 56 Benefits - - - 10,404.57 31,396.66 196,000.00 - - - 196,000.00 164,603.34 62 Materials and Supplies - - - 1,370.98 1,625.80 36,000.00 - - - 36,000.00 34,374.20 Wastewater Treatment - - - - - 7,610,000.00 - - - 7,610,000.00 7,610,000.00 63 Contract Services - - - 63,000.55 118,691.49 (7,333,000.00) - - - (7,333,000.00) (7,451,691.49) Program: 6200 - Wastewater Maintenance Total: - - - 102,996.42 257,192.38 880,000.00 - - - 880,000.00 622,807.62 Program: 6300 - Water Reclamation - - - - - - 51 Labor - - - - - - 36,442.13 144,111.92 820,000.00 820,000.00 675,888.08 53 Overtime - - - - - - 63.45 3,587.32 3,000.00 3,000.00 (587.32) 54 Standby - - - - - - - - - - - 56 Benefits - - - - - - 8,790.66 149,560.29 473,000.00 473,000.00 323,439.71 62 Materials and Supplies - - - - - - 36.60 48.44 657,000.00 657,000.00 656,951.56 63 Contract Services - - - - - - 731,808.00 2,984,399.53 5,935,000.00 5,935,000.00 2,950,600.47 64 Utilities - - - - - - - - 280,000.00 280,000.00 280,000.00 65 Professional Development - - - - - - - - 12,000.00 12,000.00 12,000.00 Program: 6300 - Water Reclamation Total: - - - - - - 777,140.84 3,281,707.50 8,180,000.00 8,180,000.00 4,898,292.50 Program: 7000 - Facilities Maintenance - - - - - - 51 Labor 7,380.09 31,099.55 101,500.00 3,147.61 12,667.75 40,600.00 4,344.94 16,081.59 60,900.00 203,000.00 143,151.11 53 Overtime 712.16 4,789.14 7,000.00 178.03 1,318.17 2,800.00 - 483.61 4,200.00 14,000.00 7,409.08 56 Benefits 2,825.68 44,865.71 55,000.00 1,143.12 12,108.43 22,000.00 1,497.13 13,754.01 33,000.00 110,000.00 39,271.85 62 Materials and Supplies 1,490.51 14,898.46 37,000.00 596.20 3,363.15 8,400.00 9,383.52 31,564.94 12,600.00 58,000.00 8,173.45 63 Contract Services 36,494.29 282,513.39 595,600.00 9,448.14 119,194.64 215,500.00 30,298.28 178,318.50 240,900.00 1,052,000.00 471,973.47 64 Utilities 9,283.31 39,871.12 92,000.00 2,761.50 11,368.65 32,400.00 26,147.46 107,397.97 48,600.00 173,000.00 14,362.26 65 Professional Development - - 500.00 - - 200.00 - - 300.00 1,000.00 1,000.00 Program: 7000 - Facilities Maintenance Total: 58,186.04 418,037.37 888,600.00 17,274.60 160,020.79 321,900.00 71,671.33 347,600.62 400,500.00 1,611,000.00 685,341.22 - - - Program: 7100 - Fleet Maintenance - - - - - - 51 Labor 6,051.46 24,391.55 81,900.00 672.38 2,710.14 9,100.00 - - - 91,000.00 63,898.31 53 Overtime - 28.37 2,700.00 - 3.15 300.00 - - - 3,000.00 2,968.48 56 Benefits 1,696.91 6,195.64 49,500.00 188.53 688.41 5,500.00 - - - 55,000.00 48,115.95 62 Materials and Supplies 11,877.44 33,830.91 95,400.00 2,416.01 7,116.91 10,600.00 - - - 106,000.00 65,052.18 63 Contract Services 15,354.21 58,532.55 216,900.00 6,939.56 11,024.83 24,100.00 - - - 241,000.00 171,442.62 64 Utilities 25,215.88 84,060.20 180,900.00 2,801.76 9,339.99 20,100.00 - - - 201,000.00 107,599.81 65 Professional Development - - 3,600.00 - - 400.00 - - - 4,000.00 4,000.00 Program: 7100 - Fleet Maintenance Total: 60,195.90 207,039.22 630,900.00 13,018.24 30,883.43 70,100.00 - - - 701,000.00 463,077.35 - - - Program: 8000 - Capital - - - - - 71 -Debt Service - 466,683.31 3,080,000.00 - 49,894.00 274,000.00 - - - 3,354,000.00 2,837,422.69 81 -Capital Improvement - - 5,425,000.00 - - 315,000.00 - - - 5,740,000.00 5,740,000.00 82 -Capital Outlay 16,844.66 217,296.80 720,000.00 22,115.63 42,218.76 475,000.00 - - - 1,195,000.00 935,484.44 83 -Accounting Income Add back - - - - - - - - - - - 88 -Transfer to Reserves - - - - - - - - 3,000,000.00 3,000,000.00 3,000,000.00 99 -Transfer from Reserves - - (1,200,000.00) - - - - - - (1,200,000.00) (1,200,000.00) Program: 8000 - Capital Total: 16,844.66 683,980.11 8,025,000.00 22,115.63 92,112.76 1,064,000.00 - - 3,000,000.00 12,089,000.00 11,312,907.13 Total Surplus (Deficit): 1,080,156.20$ 3,227,523.28$ -$ 232,589.73$ 679,543.91$ -$ (29,258.69)$ (379,037.51)$ -$ -$ (3,528,029.68)$ Page 6 of 6 Agenda Item #2f December 14, 20221 Meeting Date: December 14, 2022 Agenda Item #2f Consent Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider approval of Investment Transaction Report for Month Ended November 30, 2022 RECOMMENDATION That the Board of Directors (Board) approve the attached Investment Transaction Report for the month ended November 30, 2022. BACKGROUND / ANALYSIS California Government Code §53607 requires the CFO/Treasurer of a public agency to submit a monthly investment transaction report to the Board when the Board has delegated to the CFO/Treasurer the authority to invest, reinvest, sell, or exchange securities held in the Agency’s investment portfolio. During November the District began the month with $7,136,537 in funds invested with LAIF. With no deposits or withdrawals during the month, the LAIF account also had an ending balance of $7,136,537. Investments with Citizens Business Bank Wealth Management (CBB) totaled $5,960,650 at the beginning of November. Earnings and amortization of a discount on one of the bonds added $6,602 to the account, while fees reduced the balance by $704. There were no purchases, sales, or maturities of portfolio assets during November, leaving the Wealth Management account balance at $5,966,548 at month end. Attached hereto, for the Board’s review, is the November LAIF Statement and a listing of investments held in the CBB account for the month ended November 30, 2022. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department. Agenda Item #2f December 14, 20222 Meeting Date: December 14, 2022 Agenda Item #2f Consent Item FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS 1. Investment Transaction Report for Month Ended November 30, 2022 2. LAIF Statement for November 2022 EAST VALLEY WATER DISTRICT Investment Transaction Report Month Ended November 30, 2022 Activity (Book Value) Purch Units /Maturity Amort Cost Adjusted Cost Matured /Adjusted Cost Market Date Issuer CUSIP Yield Face Value Date 11/1/2022 Adjustment 11/1/2022 Purchases Called 11/30/2022 Value 10/19/21 US Treasury Note 91282CAZ4 0.375%500,000 11/30/25 488,936.12 1,566.07 490,502.19 490,502.19 446,230.00 03/31/21 US Treasury Note 9128CBT7 0.750%500,000 03/31/26 495,703.13 495,703.13 495,703.13 447,265.00 01/21/20 Tenn Valley Authority 880591ER9 2.875%300,000 09/15/24 309,165.27 309,165.27 309,165.27 290,133.00 05/29/20 US Treasury Note 912828ZP8 0.125%300,000 05/15/23 299,203.13 299,203.13 299,203.13 294,000.00 08/31/22 US Treasury N/B 91282CFG1 3.125%300,000 08/31/24 299,740.76 299,740.76 299,740.76 293,286.00 07/30/20 Federal Home Loan Bank 3130AJUN7 0.550%250,000 07/30/24 249,937.50 249,937.50 249,937.50 232,642.50 08/06/20 Freddie Mac 3134GWMY9 0.625%100,000 08/19/25 100,000.00 100,000.00 100,000.00 90,095.00 09/30/21 Federal Home Loan Bank 3030APAZ8 1.030%200,000 09/30/26 200,000.00 200,000.00 200,000.00 175,952.00 03/30/21 Federal Home Loan Bank 3130ALUF9 1.000%300,000 03/30/26 300,000.00 300,000.00 300,000.00 267,480.00 03/30/21 Federal Home Loan Bank 3130ALPB4 0.800%300,000 05/30/25 300,000.00 300,000.00 300,000.00 272,610.00 03/30/21 Federal Home Loan Bank 3130ALU93 0.750%200,000 06/30/25 200,000.00 200,000.00 200,000.00 181,014.00 09/20/21 Federal Home Loan Bank 3130AKL79 0.250%115,000 12/28/23 114,902.25 114,902.25 114,902.25 109,407.55 09/30/21 Federal Home Loan Bank 3130AP6M2 1.020%400,000 09/30/26 400,000.00 400,000.00 400,000.00 351,768.00 10/18/21 Federal Home Loan Bank 3130AKC95 0.550%200,000 10/29/25 197,411.64 197,411.64 197,411.64 178,100.00 10/26/21 Federal Home Loan Bank 3130APJ55 1.250%300,000 10/26/26 299,997.00 299,997.00 299,997.00 265,674.00 10/27/21 Federal Home Loan Bank 3130AJK24 0.480%100,000 09/01/23 100,010.82 100,010.82 100,010.82 96,919.00 10/28/21 Federal Home Loan Bank 3130APLB9 0.850%100,000 10/28/24 100,000.00 100,000.00 100,000.00 92,910.00 11/24/21 Federal Home Loan Bank 3130APWP6 0.600%200,000 11/24/23 200,000.00 200,000.00 200,000.00 191,810.00 11/30/21 Federal Home Loan Bank 3130APUY9 1.000%200,000 02/28/25 200,000.00 200,000.00 200,000.00 184,040.00 11/30/21 Federal Home Loan Bank 3130AQ2H5 1.050%100,000 11/25/24 99,985.00 99,985.00 99,985.00 92,873.00 08/30/22 Federal Home Loan Bank 3130AT2N6 3.700%250,000 02/28/24 250,000.00 250,000.00 250,000.00 246,840.00 11/23/21 Federal Farm Credit Bank 3133ENEM8 1.430%200,000 11/23/26 200,000.00 200,000.00 200,000.00 177,162.00 5,415,000.00 5,404,992.62 1,566.07 5,406,558.69 --5,406,558.69 4,978,211.05 Money Marklet Accounts 559,989.42 559,989.42 Total Wealth Management Acct 5,966,548.11 5,538,200.47 Attachment A Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 December 01, 2022 LAIF Home PMIA Average Monthly Yields EAST VALLEY WATER DISTRICT CHIEF FINANCIAL OFFICER P.O. BOX 3427 SAN BERNARDINO, CA 92413 Tran Type Definitions 0.00 Beginning Balance:7,136,537.21 Account Number: November 2022 Statement Account Summary Total Deposit: Total Withdrawal:0.00 Ending Balance:7,136,537.21 Agenda Item #3a December 14, 20221 Meeting Date: December 14, 2022 Agenda Item #3a Informational Item 6 1 4 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Review the Draft Popular Annual Financial Report (PAFR) for Year Ended June 30, 2022 RECOMMENDATION This agenda item is for informational purposes only, no action required. BACKGROUND / ANALYSIS The Finance and Human Resources Committee reviewed the Popular Annual Financial Report for fiscal year 2021-22, at their December 5, 2022 meeting. The PAFR is designed to be a summarized, user-friendly version of the District’s Annual Comprehensive Financial Report (Annual Report), which was audited in December and will be presented to the Board of Directors (Board) in December. Most financial information in the PAFR is presented in graphic form, and technical note disclosures are omitted. In addition, as with the Budget and Annual Report, the Government Finance Officers Association (GFOA) produces guidelines for producing an effective PAFR, and if an agency’s PAFR substantially meets or exceeds those guidelines, the GFOA presents the agency with an Award for Outstanding Achievement in Popular Annual Financial Reporting. The District received the award for its June 2021 PAFR, and that award appears on page 2 in the current report. District staff will submit the current year PAFR for award consideration. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department and the Finance and Human Resources Committee. Agenda Item #3a December 14, 20222 Meeting Date: December 14, 2022 Agenda Item #3a Informational Item 6 1 4 FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS Draft PAFR 2022 Highland, California Fiscal Year Ended June 30, 2022Popular Annual Financial Report TABLE OF CONTENTS POPULAR ANNUAL FINANCIAL REPORT | PAGE 2 Transmittal Letter .........................................................3 Core Values ................................................................................3 About the District ......................................................................4 Organizational Structure ........................................................4 District Vision .............................................................................5 District-at-a-Glance ..................................................................5 District Wide Goals & Objectives ........................................6 Capital Improvement Projects .............................................6 Sterling Natural Resource Center ......................................8 Community Involvement .....................................................10 Financial Performance .............................................11 Revenue and Expenses ........................................................11 Revenue by Sources .............................................................12 Breakdown of Expenses .....................................................13 Outstanding Long-Term Debt ............................................14 Comparative Net Position ...................................................15 The Government Finance Officers Association of the United States and Canada (GFOA) has given an Award for Outstanding Achievement in Popular Annual Financial Reporting to East Valley Water District, California for its Popular Annual Financial Report (PAFR) for the fiscal year ended June 30, 2021. In order to receive this award, a government unit must publish a Popular Annual Financial Report, whose contents conform to program standards of creativity, presentation, understandability, and reader appeal. We believe our current PAFR continues to conform to program requirements, and we are submitting it to GFOA to determine its eligibility for another Award. We also welcome and encourage feedback from District ratepayers to help make this publication more useful and/or informative. Government Finance Officers Association Award for Outstanding Achievement in Popular Annual Financial Reporting Presented to East Valley Water District California For its Annual Financial Report For the Fiscal Year Ended June 30, 2021 Executive Director/CEO Popular Annual Financial Reporting Award BOARD OF DIRECTORS Phillip R. Goodrich Chairman of the Board James Morales, Jr. Vice Chairman of the Board Chris Carrillo Governing Board Member Ronald L. Coats Governing Board Member David E. Smith Governing Board Member DISTRICT MANAGEMENT Kerrie Bryan Director of Administrative Services Justine Hendricksen District Clerk Kelly Malloy Director of Strategic Services Patrick Milroy Operations Manager Jeff Noelte, PhD, P.E. Director of Engineering & Operations Brian Tompkins Chief Financial Officer Rocky Welborn Water Reclamation Manager Michael Moore, P.E. General Manager/CEO EAST VALLEY WATER DISTRICT | PAGE 3 To Our Ratepayers & Community We are pleased to present East Valley Water District’s (District) Popular Annual Financial Report (PAFR) for the fiscal year ending June 30, 2022 (FY 2021-22). This report summarizes financial information appearing in the 2022 Annual Report and was created to provide valuable information related to District finances and the Five-Year Capital Improvement Program, that support the quality and reliability of our community’s distribution system. The PAFR is unaudited; however, the financial data presented in the PAFR is developed based on the audited Annual Report, which is consistent with Generally Accepted Accounting Principles. This document can also be reviewed on the District’s website at eastvalley.org/PAFR2022. For more detailed information, the District’s 2022 Annual Report is available for interested individuals at the District Headquarters, 31111 Greenspot Road, Highland, California 92346. It can also be viewed on the District’s website, along with other key financial documents, at eastvalley.org/2022AnnualReport. Questions, comments, and feedback regarding this report are encouraged. Please do not hesitate to contact Brian Tompkins, Chief Financial Officer, at finance@eastvalley.org or (909) 381-6463. On behalf of the District, thank you for the opportunity to serve you. Respectfully submitted, Michael Moore, P.E. General Manager/CEO CORE VALUES Leadership Motivating a group of people to act toward achieving a common goal or destination. Partnership Developing relationships between a wide range of groups and individuals through collaboration and shared responsibility. Stewardship Embracing the responsibility of enhancing and protecting resources considered worth caring for and preserving. TRANSMITTAL LETTER ABOUT THE DISTRICT The District was formed through a local election of mostly citrus grove operators, to have water service provided by a public agency. East Valley Water District is located in the foothills of the San Bernardino Mountains, 65 miles east of Los Angeles in the County of San Bernardino. 210 210 santa a n a r i v e r sant a a n a r i v e r plun g e c r e e k plunge creek eld e r c r e e k cit y c r e e k city c r e e k sa n d c r e e k tw i n c r e e k tw i n c r e e k warm cr e e k cook creek mil l c r e e k N Highland Seven Oaks Dam San Bernardino District Boundary Map ORGANIZATIONAL STRUCTURE Presented to the right is an overview of East Valley Water District’s organizational structure*. The District employed 76 full-time positions during FY 2021-22. *The organizational chart reflects the District during the timeframe reflected in this document. POPULAR ANNUAL FINANCIAL REPORT | PAGE 4 FTE: 3 EO: 5 FTE:3 FTE:5FTE: 4 FTE: 1 FTE: 3 FTE: 15 FTE: 7 FTE: 4 FTE: 2 FTE: 2 FTE: 2 FTE: 1 FTE: 2 FTE: 1 GOVERNING BOARD RATEPAYERS GENERAL MANAGER/CEO DIRECTOR OF ENGINEERING & OPERATIONS LEGAL COUNSEL GENERAL ADMINISTRATION HUMAN RESOURCES DIRECTOR OF STRATEGIC SERVICES DIRECTOR OF ADMINISTRATIVE SERVICES FTE:7 Program FTE: Full Time Employees EO: Elected Ocials Person/Position LEGEND CHIEF FINANCIAL OFFICER INFORMATION TECHNOLOGY FINANCE CUSTOMER SERVICE ENGINEERING FTE: 9 WATER RECLAMATION OPERATIONSPUBLIC AFFAIRS CONSERVATION METER SERVICES WATER PRODUCTION WATER TREATMENT WATER QUALITY WATER MAINTENANCE WASTEWATER MAINTENANCE FACILITIES MAINTENANCE FLEET MAINTENANCE EAST VALLEY WATER DISTRICT | PAGE 5 DISTRICT VISION Enhance and Preserve the Quality of Lifefor our community through innovative leadershipworld class public service.& DISTRICT AT-A-GLANCE East Valley Water District provides water and wastewater services to residents within a 30.1 square mile area. This includes more than 104,000 people in the cities of Highland and San Bernardino, portions of the unincorporated County of San Bernardino, the San Manuel Band of Mission Indians, and Patton State Hospital. 30.1 SQ. MILE SERVICE AREA 104,000 POPULATION SERVED ACTIVE GROUNDWATER WELLS MONITORED BY THE DISTRICT 15 3,465 SAMPLES COLLECTED 350 HYDRANTS FLUSHED 1,950 HYDRANTS REPAIRED, REPLACED OR PAINTED 7,400 FEET OF WATER MAIN REPLACED 301 MILES OF WATER MAINS 291 WATER LEAKS REPAIRED 227 MILES OF SEWER MAINS 211 MILES OF SEWER CLEANED 5,115 SEWERMANHOLES 6,000,000 AVERAGE GALLONS OF WASTEWATER CONVEYED DAILY 28,977,000 GALLONS OF WATER STORAGE 16,500,000 AVERAGE GALLONS OF WATER PRODUCED DAILY 71 MILES OF SEWER VIDEO MONITORING20,000+ ADVANCED METERS INSTALLED DISTRICT WIDE GOALS & OBJECTIVES POPULAR ANNUAL FINANCIAL REPORT | PAGE 6 As part of the annual budget process, District wide goals are established by the Governing Board to identify priority programs and projects. Implement Effective Solutions Through Visionary Leadership Maintain a Commitment to Sustainability, Transparency, and Accountability Deliver Public Service with Purpose While Embracing Continuous Growth Promote Planning, Maintenance and Preservation of District Resources CAPITAL IMPROVEMENT PROJECTS The District achieved a number of accomplishments during Fiscal Year 2021-22. As a results-oriented organization, each program has clearly defined goals and objectives. During this period, there were three priority projects that contributed to supporting not only the District-wide goals, but also the District Vision. These projects are included in the Five-Year Capital Improvement Program. Each year as part of the budget process, the District’s program managers and supervisors compile and submit a list of capital outlay requests for consideration. Staff reviews and prioritizes the list of equipment based on a needs assessment and the amount of funding available. Proposed Capital Improvement Projects for the budgeted fiscal year were submitted by the Engineering, Operations and Maintenance Programs in accordance with the anticipated needs of the District as outlined in the 2019 Sewer System Master Plan and 2019 Water System Master Plan. Plant 134 Process Improvements – Granular Activated Carbon Design The District contracted for design documents and specifications related to GAC technology at the District's Water Treatment Plant to remove organics and mitigate the possibility of high Trihalomethane (THM) levels. Date Completed: July 2021 Project Cost: $278,400 Project Benefits: Design of GAC technology is the step prior to installation, which will allow the District to continue meeting local, State, and Federal water quality requirements and maintain the quality and safety of water provided to the community. EAST VALLEY WATER DISTRICT | PAGE 7 Engineering Seismic Study for Reservoirs The study will include main line assessments, project designs, and a prevention plan to enhance water system reliability in the event of an earthquake. Date Completed: March 2022 Project Cost: $170,870 (CalOES Grant Funding of $90,005) Project Benefits: East Valley Water District was awarded a $1.1 million Hazard Mitigation Grant Program (HMGP) grant from the Federal Emergency Management Agency (FEMA) to fund a District Water Main Seismic Retrofit Study (Study). Upon completion of the Study, the District will become eligible to receive additional funding available through FEMA. During the secondary phases, East Valley Water District could receive funding needed to retrofit pipelines identified during the Study. Plants 56 and 59 Storage Tank Mixers Installed tank mixers in the reservoirs at Plants 56 and 59 to keep the water circulating and reduce potential for THM. Date Completed: May 2022 Project Cost: $34,894 Project Benefits: Maintain the quality and safety of water provided to the community. POPULAR ANNUAL FINANCIAL REPORT | PAGE 8 California is not a stranger to drought cycles. The Sterling Natural Resource Center has been built to serve the community for over 100 years and provide a sustainable new water supply for the region. Over 600,000 regional residents rely on groundwater as a source of water. The SNRC will replenish the local groundwater basin with up to 8 million gallons of recycled water per day. Recycled water is treated, clean, clear, and odorless. Water meets strict local, state, and federal guidelines for water quality standards. A Sustainable Future for Generations to Come The Sterling Natural Resource Center (SNRC) is a 20-acre state-of-the-art facility located in Highland, California. Capable of creating 8 million gallons per day of replenished water, the SNRC will create a sustainable water supply for the region and enhance the quality of life for residents by providing new and training, community space, and neighborhood improvements. opportunities in the form of education STERLING NATURAL RESOURCE CENTER EAST VALLEY WATER DISTRICT | PAGE 9 The Sterling Natural Resource Center's Administration Center is a community resource where residents can speak with a Customer Service Representative, attend free workshops, host special events, and get inspired on ways to be more water efficient by visiting the demonstration garden. Payment Kiosk Facility Rental No fee for using this service. Contact us to host your next special event. Customer Service Get assistance in English and Spanish. Community Resource Attend special conservation workshops and trainings. Administration Center Services now available at the SNRC The SNRC’s treatment facility will utilize state-of-the art technology to produce recycled water and renewable energy. As part of our commitment to being a good neighbor, the facility includes advanced odor control systems to help prevent noticeable smells coming from the SNRC. Did You Know? SERVING THE COMMUNITY POPULAR ANNUAL FINANCIAL REPORT | PAGE 10 Cold weather and limited access to warm clothing often prevents Jefferson Hunt Elementary students from attending school. To help bridge the gap between education and essential comfort, East Valley Water District staff held a drive and collected 105 sweatshirts. Sweatshirts provided students with warmth and motivation to attend classes during the winter months. During the Thanksgiving season, East Valley Water District partnered with the San Bernardino City Mission, a local non-profit that assists residents in need, to conduct a food drive. Through the combined efforts and generosity of staff and public, over 300 items were donated. Each food donation was included in a meal box and cash donations served to purchase additional items. East Valley Water District is committed to public service beyond providing water and wastewater services. In addition to year-round drives that benefit Jefferson Hunt Elementary, the District also works with organization within its service area to identify where there is a need. Through this effort, the District has helped provide meals to those in need. Giving Warmth Canned Food Drive Revenues & Expenses Providing safe drinking water to over 104,000 residents every day is the District’s top priority and also one of its most significant expenses. The graphs below represent the District’s combined revenue and expenses for FY 2021-22. For comparison purposes, FY 2019-20 and FY 2020-21 revenue and expenses have also been included. Please refer to the District’s 2022 Annual Report for a comprehensive breakdown of expenses. FINANCIAL PERFORMANCE Revenue Expenses HOW IS REVENUE MANAGED? East Valley Water District utilizes revenue to fund daily operations, scheduled capital improvements and replacements, and principal and interest for debt financed construction projects. Remaining revenue is invested back into capital improvement projects to help maintain and improve the system's reliability so that East Valley Water District may continue taking steps to support the District's Vision of providing world-class public service. Revenue also provides funding for conservation programming, which empowers customers to be efficient water users and encourages water savings indoors and out. Excess net revenue after expenses and payments is added to reserves for capital replacements and unforeseen emergency expenses. EAST VALLEY WATER DISTRICT | PAGE 11 -GrantsNon-OperatingOperating Expenses Developer Fees Non-Operating $37.83Million FY 2019-20FY 2019-20 $50.42Million FY 2020-21 $43.33Million Operating $39.12Million FY 2020-21 $47.15Million FY 2021-22 $42.18Million FY 2021-22 -GrantsNon-OperatingOperating Expenses Developer Fees Non-Operating $37.83Million FY 2019-20FY 2019-20 $50.42Million FY 2020-21 $43.33Million Operating $39.12Million FY 2020-21 $47.15Million FY 2021-22 $42.18Million FY 2021-22 REVENUE BY SOURCES POPULAR ANNUAL FINANCIAL REPORT | PAGE 12 The District uses relies on user rates/fees to fund day-to-day operations. East Valley Water District receives 99 percent of its revenue from user rates and fees; the District receives no funding from property or sales taxes. Rates and fees are reviewed on 3 to 5 year cycles and are adjusted as necessary to meet the costs of providing services to customers. Meter charges are fixed monthly charges assessed to customers based on the size of the service connection to their property. Wastewater collection revenue consists of 1) fixed monthly charges for residential customers and 2) a combination of fixed and volumetric charges for commercial customers. Wastewater treatment revenue consists of 1) fixed monthly charges for residential customers and 2) a combination of fixed and volumetric charges for commercial customers. These revenues are used to pay the City of San Bernardino Municipal Water Department, which is currently contracted to treat all wastewater generated by District Customers. Other charges are assessed according to an adopted fee schedule, but are only charged to users who request, or require, use of District resources beyond the scope of delivering normal water and wastewater services. Water sales are based on the volume of water used by a customer during the monthly billing period. Revenue History & Forecast (in millions) 43%Water Sales 2% Other Charges 21%Meter Charges 11%WastewaterCollection 23%WastewaterTreatment FY 2021-22 Rate Revenue 26.6 13.2 13.3 14.7 9.8 10.410 5 0 15 20 25 30 FY 21-22 Actual FY 22-23 Projected FY 23-24 Projected Water Operating Revenue Wastewater Operating Revenue Water Reclamation Operating Revenue 28.9 28.4 27.4 28.1 FY 19-20 Actual FY 20-21 Actual 0 5.6 6.0 EAST VALLEY WATER DISTRICT | PAGE 13 BREAKDOWN OF EXPENSES Expenses are the cost of providing water to meet customer demand and collecting and treating wastewater from customer residences or places of business. East Valley Water District strives to provide safe and reliable water delivery services. Despite the severity of the current drought, the District has put forth significant effort to overcome the challenges of maintaining a fiscally sustainable and operationally dependable organization. Expenses Source of Supply Pumping Water Treatment Transmission Customer Accounts Wastewater Treatment Depreciation Interest Expense Wastewater Collection Administrative and General and Distribution 9 3 1 144 2 9 22 33 3 This graphic identifies how every dollar spent is allocated to cover expenses (in cents). • Source of Supply - Expenses related to the extraction of groundwater, and for procuring water from the Santa Ana River or State Water Project when supply is available. • Pumping - Expenses related to moving water throughout the District’s water distribution system. • Water Treatment - Expenses related to the treatment of water. • Transmission and Distribution - Expenses for transmitting water to treatment plants and storage reservoirs for distribution to commercial and residential customers. • Customer Accounts - Expenses related to the service of customer accounts including, postage, telephone, printing and publishing, and billing services. • Wastewater Treatment - Expenses related to the contracted service currently provided by the City of San Bernardino Municipal Water Department. • Wastewater Collection - Expenses for the operation and maintenance of the District’s system of wastewater collection pipelines. • Administrative and General - Expenses related to the administration of District operations. For example, employee compensation, benefits, conservation rebates, office supplies, banking services, materials and supplies, utilities, fuel, permits, insurance claims, legal services, and printing and publishing. • Depreciation - Expenses related to the use of capital assets over time. • Other Expenses - Expenses not related to the District’s current cost of utility service delivery. Explanation of Expenses OUTSTANDING LONG-TERM DEBT POPULAR ANNUAL FINANCIAL REPORT | PAGE 14 Much like how a mortgage is financed to spread costs over 30 years, East Valley Water District has incurred debt to fund large capital projects. The District has adopted a Debt Management Policy to clearly state that long-term borrowing is only to be used for Capital Improvement Projects that cannot be funded from current revenues. Similar to an individual’s credit score, public agencies have a bond rating used by investors to determine risk. The District has a bond rating of AA- by both the Fitch and the Standard and Poor’s rating services. This is considered a high quality investment grade. US Bank Loan - Issued for the purchase and installation of energy conservation equipment at several of the District’s water production facilities. Sterling Natural Resource Center Loan - Funded the design and construction of the District’s water recycling facility that will capture and treat District wastewater flows. Recycled water will be recharged to the Bunker Hill Groundwater basin. 2020A Bonds - Issued to refund outstanding 2010 revenue bonds and save $380,000 annually in interest. The 2010 bonds were issued to finance pipeline and other infrastructure projects. 2020B Bonds - Issued to refund outstanding 2013 revenue bonds, which were issued to finance the construction of a new administration and operations headquarters. State Department of Water Resources Loans - Funded the improvement and expansion of the District’s surface water treatment plant. SBVMWD Loans - Agreement with the San Bernardino Valley Municipal Water District for the construction, financing, and maintenance of a City Creek Turnout and Plant 134 Hydroelectric Station. The station provides the District with direct access to State Project Water, to be used for the surface water treatment plant. consists of bonds, loans and installment purchases. The District's long-term debt $900,000US Bank Loan $139.7 millionSterling Natural Resource Center Explanation of Debt (in millions) $16 million2020ABonds $5.7 millionState Dept. of Water Resources $1.7 millionSBVMWD Loan $13.3 million2020BBonds EAST VALLEY WATER DISTRICT | PAGE 15 TWO-YEAR COMPARATIVE NET POSITION (IN MILLIONS) As an infrastructure-based organization, the District directs significant resources in capital investments to maintain and improve its water and wastewater system. Comparative net position offers perspective of the District’s assets, liabilities, and equity. The information presented below applies to fiscal years ended June 30, 2022 and 2021. Current Liabilities - Present financial obligations including, payments to vendors, payroll, and employee benefits. Non-Current Liabilities - Long-term financial obligations including payments for loans, bonds, and employee retirement benefits. Deferred Inflow of Resources - Receipt of net assets attributed to future reporting periods, such as deferred revenue and advance collections. Equity (Net Position) - Represents the excess of assets over liabilities. Current Assets - Cash and cash equivalents, customer utility receivables, inventory, prepaid expenses, and other liquid assets that can be readily converted to cash. Restricted Assets - Cash equivalents, grants and bonds restricted for a specific purpose and therefore not readily available to use. Other Assets - Special assessments receivable from certain property owners for system improvements that benefit only their properties. Capital Assets - Any land, building, equipment, vehicles, inventory, treatment plants, pipeline, and water distribution systems owned by the District. Deferred Outflow of Resources - Use of net assets attributed to future reporting periods, such as prepaid items and deferred charges. Explanation of Assets Explanation of Liabilities and Equity (Net Position) $40.1 $36.4 $8.5 $0.3 $0.3 $290.1 $309.2 $4.6 Current Assets Restricted Assets Other Assets Capital Assets Deferred Outflows Current Liabilities Non-Current Liabilities Net Position Deferred Inflows $20 $21 $181.9 $186.9 $140.1 $145.1 $1.6 $7.6 $11 $3.7 2022 Total Assets: $360.6 Million 2021 Total Assets: $343.6 Million 2021 Liabilities & Equity: $343.6 Million 2022 Liabilities & Equity: $360.6 Million 31111 Greenspot Road Highland, California 92346 DISTRICT HEADQUARTERS Office Hours Monday – Thursday 8:00am – 5:00pm 2nd and 4th Tuesday 9:00am – 5:00pm Friday 7:30am – 4:30pm Customer Service & After-Hours Emergency Service (909) 889-9501 District Headquarters 31111 Greenspot Road Highland, California 92346 (909) 889-9501 eastvalley.org District Board Meetings Second and Fourth Wednesday of Each Month at 5:30pm District Headquarters Board Room 31111 Greenspot Road Highland, CA 92346 Sterling Natural Resource Center 25318 5th Street Highland, CA 92410 Safe Reliable Water & Wastewater Service Provider East Valley Water District was formed in 1954 and provides water and wastewater services to over 104,000 residents within the cities of Highland and San Bernardino, and portions of San Bernardino County. The District operates under the direction of a 5-member elected Board. @eastvalleywater Agenda Item #3b December 14, 20221 Meeting Date: December 14, 2022 Agenda Item #3b Informational Item 6 0 6 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Review AB 2449 and SB 1439 Legislation RECOMMENDATION This agenda item is for informational purposes only, no action required. BACKGROUND / ANALYSIS The Governor recently signed into law several Bills potentially affecting the Board of Directors. The new state laws set forth in Assembly Bill 2449 and Senate Bill 1439 will take effect in January, 2023. AB 2449 amends portions of the Brown Act governing Board members’ ability to attend public meetings remotely via teleconference. Effective January 1, 2023, members of a legislative body will be permitted to attend public meetings via teleconference under the following circumstances: 1. At least a quorum of the members of the legislative body must participate in person from a singular physical location identified on the agenda and open to the public; and 2. There must be a means for the public to address the legislative body during the meeting. If each of the above requirements is satisfied, then AB 2449 allows a Board member to teleconference into a public meeting if there is either “just cause” or an “emergency circumstance” as defined by the Government Code. Just cause is defined to include: 1. Childcare or caregiving need of a family member; 2. A contagious illness; 3. Physical or mental disability; or 4. Travel while on official business of the legislative body or another state or local agency. If any of the above apply, and a Board member elects to attend a public meeting remotely under the just cause portion of the code, the Board member must do each of the following: Agenda Item #3b December 14, 20222 Meeting Date: December 14, 2022 Agenda Item #3b Informational Item 6 0 6 1. Notify the rest of the legislative body as soon as possible; 2. Include a general description as to why remote attendance is needed; 3. Disclose, prior to any action, whether anyone 18 or older is present at the remote location, and the general nature of the Board member’s relationship with that person. The just cause exemption may only be used by a Board member twice per calendar year. Under the new rules, a Board member may also teleconference under emergency circumstances, defined as a physical or family medical emergency. To use the emergency circumstances justification, the Board member must do each of the following; 1. Notify the rest of the legislative body as soon as possible; 2. Include a general description as to why remote attendance is needed; 3. Disclose, prior to any action, whether anyone 18 or older is present at the remote location, and the general nature of the Board member’s relationship with that person. 4. Make a request to the legislative body to participate remotely which must thereafter be approved; Just cause and emergency circumstances cannot be used for more than three calendar months or twenty percent of meetings during a calendar year. If the legislative body meets fewer than ten times per calendar year, just cause and emergency circumstances cannot be used for more than two meetings. SB 1439 also takes effect January 1, 2023 and expands the Levine Act (Government Code section 84308) to apply to local elected officials. Under the new rule, if a person or entity makes a campaign contribution of $250.00 or more to a Board member within the preceding 12 months, that Board member is thereafter required to recuse himself or herself from voting on a matter involving a license, contract, permit or other entitlement if the Board member knows or has reason to know that the person or entity has a financial interest in the matter. Prior to participating in any decision involving a license, permit, or other entitlement, a Board member who received a contribution over $250.00 in the preceding 12 months from a person/entity with an interest in the proceeding must disclose that fact on the record. If the Board member returns the contribution within 30 days of the time the Board member knows or should know about the contribution and relevant proceeding, the Board member may then participate in the decision. Certain violations may be cured if the contribution (or portion in excess of $250) is returned within 14 days of accepting, soliciting, or directing the contribution, whichever comes latest. In this instance, the Board member must not have knowingly or willfully Agenda Item #3b December 14, 20223 Meeting Date: December 14, 2022 Agenda Item #3b Informational Item 6 0 6 accepted, solicited, or directed the prohibited contribution. Records of this cure action must also be kept. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability B. Utilize Effective Communication Methods REVIEW BY OTHERS This agenda item has been reviewed by Administration and Legal Counsel. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Marty Cihigoyenetche Legal Counsel ATTACHMENTS No Attachment Agenda Item #4a December 14, 20221 Meeting Date: December 14, 2022 Agenda Item #4a Discussion Item 6 1 3 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Approval of the Annual Comprehensive Financial Report (Annual Report) for Year Ended June 30, 2022 RECOMMENDATION That the Board of Directors (Board) approve the attached draft Annual Comprehensive Financial Report and audit reports for fiscal year 2021-22. BACKGROUND / ANALYSIS The Finance and Human Resources Committee recommended, at their December 5, 2022 meeting, that the Board of Directors approve the draft Annual Report for fiscal year 2021-22. Each year, the District contracts with an external audit firm to conduct an annual audit of the District’s books and records for the current fiscal year in compliance with California Water Code §30540(b)(2). Firms are usually retained by the District to serve as auditors for a period of five years, after which the District uses a formal Request For Proposal (RFP) process to solicit proposals from qualified firms and select new auditors. In February of this year the RFP process was used to select a new audit firm, Rogers, Anderson, Malody & Scott (RAMS) in San Bernardino. On May 16, 2022, the audit partner from RAMS met with the Committee to review the auditing services to be provided during the audit for fiscal year ended June 30, 2022. In addition, RAMS described the procedures that were to be used to perform their audit in accordance with generally accepted auditing standards (GAAS). Once the audit is complete, the final requirement under Statement of Auditing Standards 114 (SAS 114) is for the auditors to communicate to those charged with governance: •Their views about qualitative aspects of the entity's significant accounting practices, including accounting policies, accounting estimates, and financial statement disclosures; •Significant difficulties, if any, encountered during the audit •Uncorrected misstatements, other than those the auditor believes are trivial, if any; •Disagreements with management, if any; and Agenda Item #4a December 14, 20222 Meeting Date: December 14, 2022 Agenda Item #4a Discussion Item 6 1 3 •Other findings or issues, if any, arising from the audit that are, in the auditor's professional judgement, significant and relevant to those charged with governance regarding their oversight of the financial reporting process. The Annual Report includes the District’s annual financial statements with accompanying note disclosures, management discussion and analysis, and statistical information compiled by staff. The 2021-22 Annual Report will receive an unmodified opinion from RAMS. An unmodified opinion indicates the financial data of the District is presented fairly. RAMS conducted an audit in accordance with auditing standards generally accepted in the United States of America and guidelines established by the California State Controller for Special Districts. In addition, the District will apply for the Government Finance Officers Association (GFOA), Certificate of Achievement for Excellence in Financial Reporting to ensure the District’s Annual Report once again meets high standards in governmental accounting and financial reporting. East Valley Water District has received the GFOA award for ten consecutive years. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department and the Finance and Human Resources Committee. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS Agenda Item #4a December 14, 20223 Meeting Date: December 14, 2022 Agenda Item #4a Discussion Item 6 1 3 1. EVWD Presentation 2. RAMS Presentation 3. Draft Annual Report for FY 2021-22 Brian Tompkins, Chief Financial Officer ANNUAL COMPREHENSIVE FINANCIAL REPORT FY 2021-22 December 14, 2022 •Current •Current Assets -$36.4 Million; Current Liabilities -$21.0 Million •Ratio of 1.73 to 1 •$2.4 Million Decrease in Current Assets •$1.0 Million Increase in Current Liabilities •Cash and Investments Increased $3.4 Million to $15.9 Million •Non-Current •$20.1 Million Increase in Non-Current Assets •Includes $23.9 Million Invested in SNRC •Decrease of $5.1 Million in Depreciable Assets, Net •$5.0 Million Increase in Non-Current Liabilities •Includes $13.2 Million Borrowed for SNRC •Decrease of $2.5 Million on other Debt •Decrease of $5.7 Million in Net Pension Liability 2 REPORT HIGHLIGHTS: FINANCIAL CONDITION •Net Position •$5.0 Million Increase to $145.1 Million •$2.31 Million Increase in Investment in Utility Plant •$2.64 Million Increase in Restricted •$0.03 Million Increase in Unrestricted 3 REPORT HIGHLIGHTS: FINANCIAL CONDITION 4 FINANCIAL CONDITION: DAYS CASH ON HAND 233 234 178 152 170 0 50 100 150 200 250 2018 2019 2020 2021 2022 DA Y S FISCAL YEAR 5 FINANCIAL CONDITION: CURRENT RATIO 3.24 3.35 2.13 1.93 1.73 - 0.50 1.00 1.50 2.00 2.50 3.00 3.50 2018 2019 2020 2021 2022 RA T I O FISCAL YEAR 6 OUTSTANDING DEBT $139,669,059 $878,871 $1,704,020 $13,340,000 $15,990,000 $5,698,987 SRF Loan - SNRC U.S. Bank Lease Purchase SBVMWD Loan 2020B Refunding Bonds 2020A Refunding Bonds DWR Loans 7 FINANCIAL CONDITION: UNRESTRICTED RESERVES 12.8 24.4 22.5 18.9 18.9 $- $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 2018 2019 2020 2021 2022 MI L L I O N FISCAL YEAR •Operating Activities •$2.3 Million Increase in Water Operating Revenue •$77 Thousand Increase in Wastewater Operating Revenue •$246 Thousand Increase in Operating Expenses •$2.2 Million Increase in Operating Income •Non-Operating Activities •$357 Thousand Decrease in Investment Income (68%) •$192 Thousand Decrease in Interest Expense •$1.2 Million Loss on Disposal Related to Meters 8 REPORT HIGHLIGHTS: CHANGES IN NET POSITION 9 PRIOR YEAR COMPARISON DESCRIPTION FY 2021-22 FY 2020-21 Operating Revenue 43,093,615$ 42,236,814$ Operating Expenses (40,578,341) (36,496,064) Operating Income 2,515,274 5,740,750 Non-Operating Revenue 1,242,257 211,243 Interest Expense (1,295,223) (1,387,113) Unrealized Investment Losses (303,474) - Loss on Disposal of Assets - (1,236,600) Grants / Developer Fees 2,826,525 877,185 Increase in Net Position 4,985,359$ 4,205,465$ 10 FY 2021-22 EXPENDITURES 19% 34% 6% 41% Employee Services Payments to Suppliers Debt Service Payments Capital Assets LAST FIVE YEARS 11 DEBT SERVICE COVERAGE 2.89 2.53 2.66 3.39 2.94 3.01 5.22 34.48 8.96 19.34 - 5 10 15 20 25 30 35 40 2018 2019 2020 2021 2022 CO V E R A G E R A T I O FISCAL YEAR Water Wastewater Bond Requirement DISCUSSION Brianna Schultz, CPA Engagement Manager December 14, 2022 East Valley Water District Annual Audit Fiscal year ended June 30, 2022 RESPONSIBILITIES 2 •Present the District’s financial position and results of its operations fairly and in conformity with generally accepted accounting principles •Adopt sound accounting policies •Provide reasonable accounting estimates •Establish and maintain internal controls •Prevent and detect fraud 3 The District’s Responsibilities •Obtain reasonable assurance that the financial statements are free of material misstatement •Examine, on a test basis, evidence supporting amounts and disclosures •Assess accounting principles used, estimates made, and evaluate the overall financial statement presentation •Review the District’s internal control policies and procedures •Express an opinion on the District’s financial statements 4 RAMS Responsibilities •Financial statements are fairly presented in all material respects •Significant accounting policies have been consistently applied •Estimates are reasonable •Disclosures are properly reflected in the financial statements 5 Our Opinion •No disagreements with management •No material errors or irregularities discovered •No significant accounting issues discovered 6 Other Key Points Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2022 East Valley Water District Prepared by: Finance Department 31111 Greenspot Road Highland, CA 92346 Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2022 Table of Contents 1 Page No. Introductory Section Letter of Transmittal.......................................................................................................... 5 Organizational Structure .................................................................................................... 9 Principal Officials ............................................................................................................. 10 GFOA Certificate ............................................................................................................ 11 Financial Section Independent Auditors’ Report ...................................................................................... 13-15 Management’s Discussion and Analysis ......................................................................... 16-27 Basic Financial Statements Statement of Net Position ......................................................................................... 29-30 Statement of Revenues, Expenses, and Changes in Net Position ................................... 31-32 Statement of Cash Flows ........................................................................................... 33-34 Notes to the Basic Financial Statements ..................................................................... 35-65 Required Supplementary Information Schedule of District’s Proportionate Share of the Net Pension Liability ............................... 67 Schedule of District’s Contributions ................................................................................ 68 Schedule of Changes in the Net OPEB Liability ................................................................ 69 Schedule of OPEB Healthcare Contributions .................................................................... 70 Notes to the Required Supplementary Information .......................................................... 71 Supplementary Information History and Organization ............................................................................................... 74 Combining Schedule of Net Position ........................................................................... 75-76 Combining Schedule of Revenues, Expenses, and Changes in Net Position .................... 77-79 Combining Schedule of Cash Flows ............................................................................ 80-82 Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2022 Table of Contents 2 Page No. Statistical Information Section Financial Trends Changes in Net Position by Component – Last Ten Fiscal Years .................................... 87-88 Operating Revenue by Source – Last Ten Fiscal Years ..................................................... 89 Water Operating Expenses – Last Ten Fiscal Years .......................................................... 90 Wastewater Operating Expenses – Last Ten Fiscal Years ................................................. 91 Revenue Capacity Water Sales and Production – Last Ten Fiscal Years ........................................................ 92 Revenue Rates for Water – Last Ten Fiscal Years ........................................................ 93-94 Revenue Rates for Wastewater – Last Ten Fiscal Years ................................................ 95-96 Active Services by Type – Last Ten Fiscal Years .............................................................. 97 Principal Customers – Current Fiscal Year and Nine Years Ago.......................................... 98 Debt Capacity Ratio of Outstanding Debt – Last Ten Fiscal Years ........................................................... 99 Debt Service Coverage – Last Ten Fiscal Years............................................................... 100 Demographic Information Demographic and Economic Statistics – Last Ten Calendar / Fiscal Years ......................... 101 Operating Information Full-Time Equivalent Employees by Department – Last Ten Fiscal Years ........................... 102 Operating and Capacity Indicators for Water and Wastewater – Last Ten Fiscal Years ....... 103 Other Information Capacity Charge Funds ............................................................................................ 105-107 3 4 5 December XX, 2022 To the Board of Directors and Customers of East Valley Water District, We are pleased to submit the Comprehensive Annual Financial Report (Annual Report) for East Valley Water District for the year ended June 30, 2022. This report was prepared by District staff in accordance with standards established by the Governmental Accounting Standards Board (GASB). The District’s management is responsible for the presented data, and the completeness and fairness of the presentation, including the note disclosures. We believe that the report presented is accurate in all material respects, and that the financial statements and other information are presented in a manner that enables readers to gain a full understanding of the District’s financial activities for the year. Readers should also refer to the Management’s Discussion and Analysis in the Financial Section of the Annual Report for a detailed discussion regarding the District’s financial condition and results of operations. The Annual Report follows the guidelines recommended by the Government Finance Officers Association (GFOA) of the United States and Canada. In December 2022, the District will, again, submit the Annual Report to this organization for review and possible recognition for achievement in reporting excellence. Background East Valley Water District (the District) was formed on January 18, 1954, and since then, has provided retail water service to customers in an expanding service area which now covers 30.1 square miles. The District directly serves treated water to approximately 104,000 people in the City of Highland, the eastern portion of the City of San Bernardino, the San Manuel Band of Mission Indians, and portions of the County of San Bernardino . In 1964, the District began providing wastewater collection services to the same service area. As of June 30, 2022, the District had 21,834 water connections and 19,766 wastewater connections. Water Supply and Reliability The District’s water supply for the year ended June 30, 2022 includes groundwater (79.7 percent), surface water (4.1 percent), and imported water (16.2 percent). Groundwater is pumped from the Bunker Hill Basin, and surface water from the Santa Ana River is diverted based on rights acquired from the North Fork Water Company. 6 Local Economy East Valley Water District is located within San Bernardino County in a metropolitan area referred to as the “Inland Empire”. Since 2013, the District’s population has grown by more than 11 percent and currently, comprised of mostly residential and commercial customers, with no major industrial users. Large consumers remain consistent year to year with the San Bernardino City Unified School District, Patton State Hospital, San Manuel Mission Indians, City of Highland, and East Highlands Ranch forming the list of top five users. In 2022, the average household income within the District’s service area was $56,514, approximately 22% lower than the County of San Bernardino. Customers who reside in the City of Highland account for approximately 65% of the District’s customer base. These customers had an average household income of $68,105, approximately 21% higher than the overall District average. Financial Management The District manages its resources conservatively to deliver safe and reliable services to its customers at a fair and cost-effective price. It focuses on establishing fair rates, cost containment, long -term planning, maintaining and upgrading infrastructure, and pursuing alternative source of funding. This approach has allowed the District to undertake substantial capital improvement projects during tough economic times, while passing a series of modest rate increases. The keys to the District’s successful financial management are the District’s Capital Improvement and Financial Plan (CIFP), comprehensive reviews of water and wastewater rates, and the annual budget process. The CIFP provides a comprehensive view of infrastructure investments necessary over a seven-year period to ensure that water resources are adequate, water quality is maintained, and the water and wastewater service needs of current and future customers are met. The CIFP is reviewed annually by the District’s Board of Directors 79.7% 4.1% 16.2% Water Supply Sources Groundwater Surface Water Imported 7 (Board) during the budget process, at which time the highest priority projects are adopted and receive authorization for expenditure along with the District’s operating budget. The District’s financial planning also includes the establishment and funding of reserv es, and the pursuit of alternative funding sources, both of which help reduce reliance on rates and rate increases. In recent years the District has been very successful in pursuing project funding from the State Revolving Fund and Federal Emergency Management Agency (FEMA), and have applied for water and energy efficiency project funding from the Bureau of Reclamation and Edison. Internal Control District management is responsible for establishing a system of internal accounting controls designed to provid e reasonable assurances that assets of the District are safeguarded against losses from unauthorized use or disposition, and theft. The District’s internal controls also ensure the proper recording of financial transactions, and the preparation of financial statements in accordance with Generally Accepted Accounting Principles (GAAP). The District’s internal control structure is designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that 1) the cost of a control should not exceed the benefits likely to be derived and 2) the valuation of costs and benefits requires estimates and judgments by management. Budgetary Control The District’s Board of Directors annually adopt a balanced operating and capital budget prior to the new fiscal year. The budget authorizes expenditures and provides a basis for accountability over the District’s enterprise operations and capital projects. Each quarter, management provides the Board with a quarterly budget review to allow Board assessment of staff’s progress in meeting goals and objectives, and budget adjustments, if necessary, are requested at the mid-year budget review in February. Debt Administration The District utilizes proceeds from long-term debt, along with reserves and contributions from the operating budget, to finance major construction projects. Current debt consists of Revenue Bonds and loans from US Bancorp, the State Revolving Fund, and the San Bernardino Valley Municipal Water District. The District received a credit rating of AA- from Standard and Poor’s and Fitch when the Revenue Bonds were issued in September 2020. This rating was affirmed by Fitch as the result of a review conducted in July 2022. Investment Policy The Board of Directors annually adopts an investment policy that conforms to California State Law, District ordinances and resolutions, and the prudent person standard. The objectives of the policy are safety, liquidity, and 8 yield. District funds are normally invested in the State Treasurer’s Local Agency Investment Fund (LAIF), and Federal government Treasury notes or agency obligations. Audit and Financial Reporting State law requires the District to obtain an annual audit of its financial statements by a n independent Certified Public Accountant. This year, the District’s Financial statements were audited by Rogers, Anderson, Malody & Scott, LLP from San Bernardino, California. Their audit opinion is included in the Basic Financial Statements section of th is report. 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 for the fiscal year ended June 30, 2021. This was the tenth year that the District has achieved this prestigious award. To be awarded a Certificate of Achievement, a governmental entity must publish an easily readable and efficiently organized Annual Comprehensive Financial Report. This report must satisfy both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Comprehensive Financial Report continues to meet the Certifica te of Achievement Program requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. Acknowledgements Preparation of this report was accomplished by the combined efforts of District staff. We appreciate the dedication and professionalism that our staff bring to the District. We would also like to thank the members of the Board of Directors for their continued support in the planning and implementation of the fin ancial affairs of the District. Respectfully submitted, Michael Moore General Manager/CEO Brian W. Tompkins Chief Financial Officer EAST VALLEY WATER DISTRICT Organizational Structure Year Ended June 30, 2022 9 EAST VALLEY WATER DISTRICT Principal Officials Year Ended June 30, 2022 10 Vision Enhance and preserve the quality of life for our community through innovative leadership and world class public service. Core Values Leadership: Motivating a group of people to act towards achieving a common goal or destination. Partnership: Developing relationships between a wide range of groups and individuals through collaboration and shared responsibility. Stewardship: Embracing the responsibility of enhancing and protecting resources considered worth caring for and preserving. East Valley Water District Governing Board Members as of June 30, 2022 Name Title Elected / Appointed Current Term Phillip R. Goodrich Chairman of the Board Elected 2018 - 2022 James Morales, Jr.Vice-Chairman of the Board Elected 2018 - 2022 David E. Smith Governing Board Member Elected 2020 - 2024 Ronald L. Coats Governing Board Member Elected 2018 - 2022 Chris Carrillo Governing Board Member Elected 2020 - 2024 Contact Information East Valley Water District Michael Moore, General Manager/CEO 31111 Greenspot Road Highland, CA 92346 (909) 889-9501 www.eastvalley.org EAST VALLEY WATER DISTRICT GFOA Certificate Year Ended June 30, 2021 11 12 EAST VALLEY WATER DISTRICT Independent Auditor’s Report Year Ended June 30, 2022 13 Will be issued once the Audit is completed. EAST VALLEY WATER DISTRICT Independent Auditor’s Report Year Ended June 30, 2022 14 Will be issued once the Audit is completed. EAST VALLEY WATER DISTRICT Independent Auditor’s Report Year Ended June 30, 2022 15 Will be issued once the Audit is completed. EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2022 16 The District East Valley Water District (District) is a California Special District established under section 30000 et seq. of the California Water Code. The District is engaged in pumping, treating, and distributing water to its customers, as well as maintaining a collection system for residential and commercial wastewater that is delive red for treatment at a plant owned by the City of San Bernardino Water Department. The District serves the City of Highland and portions of the City and County of San Bernardino in California. The Basic Financial Statements East Valley Water District is a special-purpose government agency, engaged in activities that are supported exclusively by user charges. As such, the District’s financial statements are presented in the format prescribed for proprietary funds by the GASB. The following financial statements for the year ended June 30, 2022 (2021 for comparative purposes only) consist of three interrelated statements designed to provide the reader with relevant, understandable data about the District’s financial condition and operating result s. They are the Statement of Net Position, the Statement of Revenues, Expenses, and Changes in Net Position, and the Statement of Cash Flows. The Statement of Net Position presents financial information on the District’s assets, liabilities, and deferred inflow and outflows of resources, with the difference reported as net position as of the last day of the District’s fiscal year. Over time, increases or decreases in net position can serve as a useful indicator of whether the financial position of the East Valley Water District is improving or deteriorating. The Statement of Revenues, Expenses, and Changes in Net Position presents information showing how the District’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of the related cash flows. The Statement of Cash Flows (direct method) conveys to financial statement users how the District managed cash resources during the year. This statement converts the change in net position presented on the Statement of Revenues, Expenses, and Changes in Net Position into actual cash provided by or used for operations. The Statement of Cash Flows also details how the District obtains cash through financing and investing activities, and conversely, how cash is spent for these purposes. Summary Financial Information and Analysis Financial Condition During the year ended June 30, 2022, the District’s total assets and deferred outflo ws increased by $16.9 million, to $360.6 million, and included a decrease in Current assets, offset by a significant increase in Capital assets. Current assets decreased $2.3 million (6%) to $36.4 million. While the decrease is a net between increases and decreases of the various current asset line items, the most significant decrease was in the amount Due From Other Governments, which dropped from $18.6 million to $10.3 million. This category recognizes outstanding EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2022 17 reimbursement claims from the state revolving fund for reimbursable construction activity, or reimbursements receivable from partner agencies in the construction of regional recycled water facilities and as the project nears completion contractor invoices and corresponding reimbursement requests are for significantly smaller amounts. Utility Accounts Receivable continued to grow, from $6.0 to $7.0 million, despite the fact that the California Governor’s moratorium on disconnection of utility services for non -payment ended on December 31, 2021. The District delayed implementing service disconnections while it applied for California Arrearage Payment Program (CAPP) funds from the state to apply to customer account balances incurred during a qualifying period during the pandemic. Inventory balances also increased 84% to $944 thousand as the District stocked up on frequently used fittings in order to mitigate the effect of supply chain shortages. Restricted Asset balances increased from $10.0 to $11.0 million. The increase is the result of significant development activity and the related collection of restricted development impact fees. Restricted assets do not include large retentions held on the contract construction of the Sterling Natural Resource Center as payment of the retentions will be made with loan proceeds borrowed from the state revolving fund (converted to Long Term debt) rather than paid out of current financial resources. 2022 2021 Current Assets 36.4 38.7 Restricted Assets 11.0 10.0 Other Assets 0.3 0.3 Capital Assets - Net 309.2 290.1 Total Assets 356.9 339.1 Total Deferred Outflow of Resources 3.7 4.6 Current Liabilities 21.0 20.0 Non-Current Liabilities 186.9 182.0 Total Liabilities 207.9 202.0 Total Deferred Inflows of Resources 7.6 1.6 Net Position Net Investment in Capital Assets 117.1 114.8 Restricted 9.1 6.4 Unrestricted 18.9 18.9 Total Net Position 145.1$ 140.1$ Capital Assets increased by $18.5 million during the 2021 -22 fiscal year. For purposes of the table above, Capital Assets includes construction in progress (CIP), utility plant in service, and the related accumulated depreciation. Changes in capital assets included additions of $27.3 million, net of asset retirements of $2.3 million and an annual depreciation charge of $6.5 million. Capital additions during the year were primarily construction in progress on the SNRC. A more detailed description of capital spending is in the Capital Assets section of this analysis. Total Deferred Outflow of Resources consists of pension contributions made after the most recent pension plan actuarial valuation, as well as differences between projected and actual earnings on pension plan investments and changes in assumptions. Contributions and investment earnings during the year ended June 2021 had the effect of reducing deferred outflows for 2021-22 by $1.2 million. This amount was reduced by an increase in deferred outflows related to Other Post-Employment Benefits (OPEB) of $0.3 million. EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2022 18 While current assets decreased by $2.3 million, current liabilities increased by $1.0 million, the result of the growing retentions payable balance related to construction of the SNRC, which is nearing completion. The net impact of these changes caused the District’s current ratio to fall slightly from 1.9:1 to 1.7:1. However, by removing the retentions payable of $10 million from the above calculation, the current ratio improves to 3.3:1. Justification for removing retentions payable from the calculation is that when the contracto r is paid the retention, the District will request a draw against its SRF loan for the retentions, rather than drawing on District financial resources, in effect converting retentions to long-term debt. Non-Current Liabilities increased by $5.0 million, the net effect of: • $13.1 million in draws on the State Revolving Fund loan for the SNRC; plus • $(2.3) million in principal payments and premium amortization; • $(0.1) million decrease in LT Debt amounts classified as current liabilities, and • $(0.1) million decrease in compensated absences and employee post -retirement benefit obligations calculated in accordance with GASB statements number 68 (pensions) and 75 (retiree medical). • $(5.6) million decrease in post-retirement pension and other benefit obligations due to extraordinary plan asset investment gains during the year ended June 2021, the date of the valuation on which current obligations are calculated. Pensions and OPEB (Other Post-Employment Benefits) are further discussed in Notes 8 and 11 of the accompanying financial statements. Long-term debt and Compensated absences are further explained in financial statement Notes 5 and 6, respectively. The District’s total Net Position was $145.1 million at the end of fiscal year 2022, a $5.0 million increase compa red to the end of the previous fiscal year. Of the $145.1 million Net Position balance, $117.1 million is categorized as Net Investment in Capital Assets, $9.1 million is Restricted for Capital Expansion Projects, and $18.9 million is Unrestricted. The calculation of Net Investment in Capital Assets is included in Note 7 of the accompanying financial statements. Looking at longer term results, the District’s total Net Position has increased $25.8 million and $30.6 million over five and ten year periods, respectively. Results of Operations and Changes in Net Position Water Operations Water sales for fiscal year 2021-22 decreased 4.0% to $18.5 million, the result of a decrease in water demand by customers from 18,429 acre-feet in 2020-21, to 17,998 acre-feet. Total water produced by the District during the year was 18,789 acre feet, with the difference between water produced and water sold of 791 acre feet (4.2%) being the result of District flushing programs, water use at District facilities, and sy stem leaks. While actual water sales declined compared to the previous year, current year actual sales of $18.5 million did exceed projections of $17.3 million for fiscal year 2021-22. Projections are based on historical usage, and follow a predictable pattern starting with high usage in the summer, decreasing usage as the weather cools until the winter months, when usage is at its lowest, and then increased usage toward the end of the District’s fiscal year in June. The District usually receives most of its rain between the months of December and February and has an annual average of 17 inches. However, below average rainfall, like 10.4 inches in 2021 -22, usually leads to higher than EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2022 19 expected water demand. Low levels of rainfall has again become a statewid e problem as California is entering its fourth year of drought. In October 2021 a statewide drought emergency was declared for California. East Valley Water District has been working to mitigate the effects of drought since before the previous drought emergency ended in April 2017. As referenced throughout this discussion, the District is building a water reclamation plant known as the Sterling Natural Resource Center (SNRC) which will allow the District to recharge more than six million gallons of recycled water per day into the local groundwater basin. In addition, when the state experienced heavy rainfall in the winters of 2017 and 2018, the District participated in regional efforts to buy as much State Water Project water as possible for recharge into the basin. While these measures will not stave off local water shortages indefinitely, smart water conservation, including a statewide target of a 15% water use reduction in the next year, puts the District is in a better position than most for going years into the current drought without facing water shortages. Water System, or Meter Charge revenue remained relatively consistent with prior year revenue at $9.2 million for fiscal year 2021-22. Although a 1% rate increase became effective in February of 2022, associated increases were offset by a reduction in charges for construction meters due to slowing construction, and a reduction in the accrual for unbilled revenue at year end. Accrued revenue at June 2021 were approximately $125 thousand higher than the accrued revenue recognized at June 2022. $- $5 $10 $15 $20 $25 $30 $35 2018 2019 2020 2021 2022 Mi l l i o n s Water Department Operating Revenue versus Expenses Revenue Expenses Water Department operating expenses increased 15.5% to $26.9 million for fiscal year 2021 -22. The primary factors contributing to this significant increase were a market median wage adjustment for positions found by an independent study to be significantly under market median, energy costs, and inflationary pressure on the price of goods and services overall. The rising cost of energy has had an impact on operations for the past two year. Over the past few years the District had implemented multiple energy efficiency and alternative energy production measures, and these helped mitigate the effects of rising power costs. However, by fiscal year 2019 -20, Edison rate increases were beginning to offset the District’s energy measures, and in 2020-21 increases in power costs could not be avoided. EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2022 20 In addition to rate increases, Edison redefined daily ‘peak’ hours. Peak hours and the high rates associated with them, were shifted away from the period 1:00 p.m. to 5:00 p.m., hours during which demands on the electrical grid have fallen because many customers are generating their own solar energy during those hours, to 4:00 p.m. to 9:00 p.m. when customers returning home from work/school are using electrical appliances but cannot generate solar energy. The District was able to adjust to the shift in peak hours during weekdays, but another revision that added peak hour pricing to weekend days disrupted District operational strategies that avoided peak hour rates by filling all reservoirs during the weekend. The effects of power cost increases and other costs fluctuations on the various cost centers and programs are outlined below: • Pumping: power costs related to boosting water to higher pressure zones increased $127 thousand (25%) to $646 thousand due to continued changes in Edison rates and rate structures explained above. • Treatment: these costs increased $37 thousand (4%) overall which consisted of a significant increase in power and chemicals costs, partially offset by a decrease in materials costs. Materials costs were dropp ed because a costly, periodic change out of filtration media at the District’s Plant 28 Granular Activated Carbon treatment module in the prior year. Power cost increases are explained above, and chemical costs were affected by price increases and availability challenges. • Transmission and Distribution- distribution system maintenance costs increased $310 thousand (9.5%) due almost entirely to the increased cost of materials. The cost of brass and other metal fittings rose between 150% to 200% due to supply chain issues and related inflation. Wastewater Operations Wastewater operating revenues consist of System Charges and Treatment Charges, and Other Operating Revenue. System Charge rates are set by the District to cover the cost of maintaining the District’s wastewater collection system and to cover a portion of administrative and general expenses. A rate adjustment implemented in January 2022 was responsible for a 2.6% increase in System charge revenue in 2021 -22. Treatment Charge rates have historically been established by the City of San Bernardino Water Department (City), which treats wastewater flows generated by District customers. The District uses the City rates to bill its customers and then remit payment to the City at the end of each month. This relationship, and use of City rates, was scheduled to terminate once the District has the capability to treat wastewater upon completion of the Sterling Natural Resource Center (SNRC). Completion of the SNRC was projected to be May of 2022. In anticipation of the SNRC start-up, the District adopted its own treatment rates in 2021. The SNRC was not completed in May, however, due to COVID and supply chain issues, and the revised completion date is July 2023. Although the District will continue to pay the City for treatment services for an additional year, the District went forward with implementation of its own rates in May 2022, and is using the increment between the two rates to cover some of the SNRC startup costs already being incurred, such as hi ring operators to begin training on SNRC plant operations. The implementation of District rates in May resulted in a 9.3% increase in treatment charge revenue during 2021-22. EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2022 21 Other Operating Revenue includes inspections, plan checking, and other developme nt related fees, and also periodic reimbursements from other public agencies or utilities for shared costs or participation in conservation programs. In fiscal year 2021-22, Other Operating Revenue included significant service connection fees related to ne w development (other than impact fees). Wastewater department collection line maintenance costs decreased by 19% compared to the prior year. This change is the result of a drop in Contract Services as the District had to deploy contractors for fewer sewer main repair incidents than in 2020-21. $6 $7 $8 $9 $10 $11 $12 $13 $14 $15 $16 2018 2019 2020 2021 2022 Mi l l i o n s Wastewater Department Operating Revenue versus Expenses Revenue Expenses Shared Customer Account & Administrative Costs Costs related to Customer Accounts (Water & Wastewater Operations) increased $96 thousand, or 5.9%. This increase is the net effect of increased labor and contract services costs which were partially offset by a r eduction in postage costs due to disconnection notices not being generated and delivered (prohibited during COVID). Labor costs increased as the District created a Supervisor position and hired additional part -time staff to bolster the department in preparations for completion of the SNRC, at which time the department will be split between a new customer service counter there, and the existing counter at the District Headquarters. Contract Serv ices increased due to escalating charges for maintenance and hosting of the District’s automated meter data portal and customer relationship/financial software. Administrative and general costs for the District increased by 29.9% to $13.9 million. The increase is the effect of several factors that became due in the current year in preparation for commencement of operations at the SNRC, and/or because items had been deferred during the height of the COVID19 pandemic. Some of the most significant were: 1. Conservation rebates increased 181% to $225 thousand as workshops and other customer outreach resumed. 2. Insurance costs continued to climb, 87.1% in 2021-22. The insurance industry in California continues to feel the effects of costly wildfires in 2019, including the District’s risk pool which buys excess insurance on the open market. EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2022 22 3. Labor and Benefits rose 19.5% to $8.4 million. This increase included the cost of some wastewater treatment operators being hired to begin training at the SNRC prior to commencement of operations, and was also the result ‘market median’ wage adjustments and of COLA increases that were negotiated in September 2020. 4. Contract services increased 33.6% to $2.1 million. The most significant items were a $170 thousand contribution to regional habitat conservation efforts, a one-time cost of $190 thousand to extend fiberoptic communication services to the District headquarters and 2 critical plants, and $153 thousand toward the fully burdened cost of a law enforcement officer to help ensure increased presence and priority response at critical District plants. Non-Operating Activities The District’s non-operating revenue of $939 thousand includes net investment losses of $137 thousand, a gain on disposal of vacant land of $1.042 million, and miscellaneous income of $34 thousand. Reported investment losses are a net between realized earnings during the year of $146 thousand, offset by $283 thousand in unrealized losses recorded at year end due to the negative variance between cost and market value of securities at year end caused by rising interest rates. The Gain on Disposal was realized when land that has been held for resale for 15 years was sold to a local development company. Non-operating expense consist of $1.382 million in interest on District long-term obligations. East Valley Water District Changes in Net Position (in millions) 2022 2021 2020 Water Sales 18.5$ 19.3$ 16.9$ System Charges 14.0 13.9 13.7 Treatment Charges 9.8 8.5 8.5 Other Operating Rev 0.8 0.5 0.7 Supply & Pumping (4.3) (4.2) (3.7) Distribution / Collection (4.2) (4.0) (4.2) Treatment (10.1) (9.5) (9.4) Customer Accounts (1.7) (1.6) (1.7) General & Administrative (13.9) (10.7) (10.6) Depreciation (6.4) (6.5) (6.6) Non-Operating Revenues 1.3 0.2 0.7 Interest Expense (1.6) (2.6) (1.6) Income Before Contributions & Special Item 2.2 3.3 2.7 Developer Contributions 2.7 0.6 3.2 Grant Funds Contributed 0.1 0.3 6.7 Change in Net Position 5.0 4.2 12.6 Beginning Net Position, as Previously Reported 140.1 135.9 123.3 Ending Net Position 145.1$ 140.1$ 135.9$ EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2022 23 Investment earnings decreased slightly compared to the prior year, despite the fact that quarterly apportionment rates paid by the Local Agency Fund rose from 0.33% to 0.75% during fiscal year 2021 -22. Payment of large construction invoices on the SNRC followed by a 60 – 75 day waiting period for reimbursement under a State Water Resources Control Board (SWRCB) funding agreement depressed the amount of investible reserves. Earnings were, however, offset by an unrealized investment loss recorded at year end as the rising interest rates hampered the value of US Treasury and agency bonds in the District’s investment portfolio. Capital Contributions Contributions received during fiscal year 2021-22 included $2.7 million in developer capacity fees and $104 thousand in operating cost reimbursement grants related to COVID19. A majority of the capacity fees received were related to a 205-unit apartment complex under construction, with the remainder coming from two moderate developments of single-family homes. $91 thousand of the grant funds received were FEMA funds for pandemic related expenses and safety protocols put in place during 2021. The remaining $13 thousand is administrative cost reimbursements for the District’s participation in the California Arrearage Payment Program (CAPP) i n which the state paid delinquent customer accounts for bills incurred during the pandemic. The District received and applied $575 thousand directly to customer accounts with the CAPP. Components of Net Position The District is required to present its net position in three categories: Net Investment in Capital Assets, Restricted, and Unrestricted. Net Investment in Capital Assets The components comprising Net Investment in Capital Assets are presented in Note 7 of the accompanying financial statements. The balance at June 30, 2022 is $116.4 million, an increase of $1.7 million compared to June 30, 2021. The increase is the net result of the acquisition or construction of capital assets for $25.1 million, offset by a $10.7 million increase in outstanding debt, $6.8 million increase in year-end project payables, and depreciation of $5.9 million. Restricted Restricted Net Position consists of unexpended development impact fees which may only be appropriated for a project included in the District’s Capital Improvement Program. During fiscal year 2021-22 the District received $2.7 million in capacity fees while no restricted funds were used to fund current projects. A summary of the collection and use of these funds is presented as Other Information in this document. Unrestricted EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2022 24 Unrestricted Net Position is the balance after amounts to be classified as Net Investment in Capital Assets or Restricted have been determined. Unrestricted Net Position decreased $1.3 million to $17.6 million in fiscal year 2021-22. Capital Assets The District spent approximately $25.1 million for expansion or replacement of property, plant, and equipment during the 2021-22 fiscal year. These amounts are reflected in Utility Plant, or as additions to Construction in Progress, in the accompanying financial statements. Placed in Service During the 2021-22 fiscal year, District staff, consultants, and contractors completed work on the following: • Purchased land for a future reservoir site; • Replaced fourth complete train of filtration membranes in Plant 134; • Completed security fencing and retaining walls at District Plant 39; • Completed a lined retention basin for storage of off-spec water should the new SNRC water reclamation plant need to be taken offline; • Upgraded network servers, access control software and badge readers at critical plants; and • Replaced and upsized 2,000 linear feet of sewer main. Utility Plant in Service – June 30th (in millions) Department 2022 2021 Water Source of Supply 19.5$ 19.3$ Pumping 15.2 14.9 Transmission & Distribution 100.9 101.9 Treatment 29.2 28.9 Wastewater Collection Lines 27.8 27.6 General Plant 31.2 30.4 Total 223.8$ 223.0$ Construction in Progress (CIP) Construction in progress increased $25.2 million to $184.0 million (see note 4) between June 30, 2021 and June 30, 2022. With approximately 32 projects in progress, additions to CIP totaled $27.1 million, while $1.9 million was capitalized and transferred to Utility Plant in Service, or expenses. Of the $184.0 million balance in Construction in Progress at June 30, 2022, 92% is related to a single project, the Sterling Natural Resource Center. EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2022 25 The SNRC is a water reclamation plant capable of converting six million gallons per day (mgd) of wastewater into recycled water that will be recharged into the regional groundwater basin. Future phases will increase capacity of the plant to 10 mgd. Other significant work in progress includes upgrades to treatment processes at the District surface water treatment Plant (134) and continued replacement of treatment membranes at the same plant. Future Capital Improvements - Water The District’s ability to meet water quality requirements, promote water conservation, and increase efficiencies in conducting District business are the driving forces by which District management develops long term capital plans. To meet these objectives, the District’s 5-year Capital Improvement Plan includes the following projects: • Rehabilitation of District water storage tanks; • Replacement of aging water distribution pipelines that require frequent repair and are suspected of causing system water losses; • Seismic retrofits for multiple water tanks / reservoirs to help ensure structural integrity of the tank during a major earthquake; and • Partner with project developers to upsize their plans to build a new storage tanks to serve their project . The District has been awarded 10% match funding under the state’s Prepare California Match Program for a $6.8 million project to complete seismic re trofits on several water storage tanks. A District application for FEMA 2022 Building Resilient Infrastructure and Communities (BRIC) grant funds to cover 90% of the project is under review and should be finalized early in 2023. The District has also been awarded Phase 1 FEMA funding of over $1.1 million for design of a significant water main replacement project. Once design is complete, the District will work to finalize Phase 2 funding to cover up to $40 million in replacement of pipelines which qualify for hazard mitigation assistance. The District is also exploring the feasibility of building a new surface water treatment plant in the District’s east end, closest to the source of surface water and to the largest areas of undeveloped land in the District ’s service area. Future Capital Improvements - Wastewater The District maintains a list of recommended wastewater main replacements / rehabilitations based on assessments of pipeline condition noted during video logging of the collections system. Pipelines assessed at the highest risk of structural failure are prioritized on the District’s 5-year Capital Improvement Plan (CIP). The District also completed an update to its Wastewater Collection System Master Plan in fiscal year 2018 -19 which identified three wastewater pipelines that are susceptible to surcharging during heavy rains. Undersized pipelines can impede new development and will be included in discussions with developers as necessary. These pipelines are included it the District’s capacity fee structure. Long Term Debt / Credit EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2022 26 The District’s long-term debt at June 30, 2022 consists of Revenue Bonds, loans from the California Department of Water Resources (DWR) State Revolving Fund, a capital lease purchase with US Bank, and a loan from the San Bernardino Valley Municipal Water District (SBVMWD). Outstanding balances as of June 30, 2022 were as follows: 2020A Refunding Bonds 15,990,000$ 2020B Refunding Bonds 13,340,000 SBVMWD Loan 1,704,020 AVAD Construction 5,368,172 EFAD Construction 57,478 Plant 134 Construction 273,337 SNRC Construction 139,669,059 U.S. Bank Lease Purchase 878,871 Total 177,280,938$ The funding agreement with the State Water Resources Control Board for the SNRC construction consists of a $150.3 million loan at 1.8% and a $6.7 million grant, and was finalized on November 21, 2019. In May of 2022 the District requested an increase in the loan to $168.3 million for three purposes, 1) finance a large emergency storage basin for off-spec water in the event of an SNRC emergency shutdown, 2) upgrade boosters to move recycled water farther to a revised location for recharge, and 3) to fund a g ap between the amount of contracts signed to build digesters at the SNRC, and the existing loan funding for those digesters. Debt service of approximately $7.5 million and plant operating expenses will be paid with $8.7 million currently paid to the City of San Bernardino Water Department for wastewater treatment, Additional revenue streams will include Local Resource Investment Program payments received from the San Bernardino Valley Municipal Water Department for the recharge of recycled water produced by the SNRC, tipping fees from waste haulers who dispose of liquid waste at the District digesters, and energy cost avoidance through use of power produced by the digesters. The loan balance as of June 30,2022 is $139.7 million; loan payments will begin on e year after the Notice of Completion is filed for the SNRC. All scheduled debt payments for fiscal year 2021-22 were paid timely. EAST VALLEY WATER DISTRICT Management’s Discussion and Analysis Year Ended June 30, 2022 27 $- $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 2018 2019 2020 2021 2022 Mi l l i o n s Outstanding Long-Term Debt June 30th 2020B Bonds 2020A Bonds SBVMWD Loan US Bank Loan SRF Loans- Other SRF Loan-SNRC Standard & Poor’s and Fitch rated the District’s 2020 Series A and B Revenue Bonds at AA- at the time of issuance. Fitch affirmed this rating after a review of the District’s financial plans in June 2022. Dun & Bradstreet (D&B), based on audited financial statements and creditor input, also rated the District. The rating given by D&B is currently 5A1 accompanied by a financial condition assessment of ‘strong’, which is no change from previous years. Rate Increases On May 12, 2021 the District adopted rate adjustments for water and wastewater collection activities, and adopted inaugural rates for the District’s water reclamation activities which were implemented in May of 2022 to help pay startup costs being incurred prior to commencement of operations of the Sterling Natural Resource Center. Additional rate adjustments for all water and wastewater services are scheduled to become effective on January 1, 2023, and again on January 1, 2024. Additional information about the District’s water and wastewater rates can be found on the District’s website at www.eastvalley.org. Contacting the District’s Financial Management This financial report is designed to give our customers / ratepayers, creditors, and investors a general overview of the District’s finances, and to demonstrate the District’s accountability for money it receives, and stewardship over facilities it maintains. If you have questions about this report, or need additional information, contact the District’s Finance Department at 31111 Greenspot Road, Highland, California 92346, or call (909) 381 -6463. 28 EAST VALLEY WATER DISTRICT Statement of Net Position June 30, 2022 The accompanying notes are an integral part of this statement. 29 For Comparative Purposes Only 2022 2021 ASSETS Current Assets: Cash and Cash Equivalents 11,313,557$ 8,718,115$ Investments 4,574,471 3,778,726 Accounts Receivable, Net 6,974,934 6,036,701 Interest Receivable 18,461 8,326 Other Receivables 1,994,056 681,203 Due from Other Governments 10,306,002 18,593,458 Inventory 944,539 503,614 Prepaid Expenses 270,497 387,404 Total Current Assets 36,396,517 38,707,547 Non-Current Assets: Restricted Cash and Cash Equivalents 10,960,683 9,975,888 Assessments Receivable 285,745 308,826 Capital Assets not being Depreciated 190,577,346 166,336,585 Capital Assets, Net 118,693,660 123,772,355 Total Non-Current Assets 320,517,434 300,393,654 Total Assets 356,913,951 339,101,201 DEFERRED OUTFLOWS OF RESOURCES Deferred Charge on Refunding 896,852 946,442 Deferred Outflows - Pensions 2,024,887 3,206,817 Deferred Outflows - OPEB 794,163 463,638 Total Deferred Outflows Of Resources 3,715,902 4,616,897 Total Assets and Deferred Outflows of Resources 360,629,853$ 343,718,098$ (Continued) EAST VALLEY WATER DISTRICT Statement of Net Position - Continued June 30, 2022 The accompanying notes are an integral part of this statement. 30 For Comparative Purposes Only 2022 2021 LIABILITIES Current Liabilities: Accounts Payable and Accrued Expenses 5,283,932$ 7,337,004$ Accrued Payroll and Benefits 772,778 684,607 Customer Service Deposits 1,390,220 1,331,243 Construction Advances and Retentions 10,188,813 7,324,945 Accrued Interest Payable 263,507 295,316 Current Portion of Compensated Absences 604,122 630,257 Current Portion of Long-Term Debt 2,499,787 2,441,104 Total Current Liabilities 21,003,159 20,044,476 Non-Current Liabilities: Compensated Absences, Less Current Portion 683,507 576,285 Net Pension Liability 6,657,689 12,313,294 Net OPEB Liability 1,861,875 2,040,977 Long-Term Debt, Less Current Portion 177,740,054 167,030,458 Total Non-Current Liabilities 186,943,125 181,961,014 Total Liabilities 207,946,284 202,005,490 DEFERRED INFLOWS OF RESOURCES Deferred Inflows - Refunding 1,181,143 1,268,266 Deferred Inflows - Pensions 6,115,141 275,850 Deferred Inflows - OPEB 288,464 55,030 Total Deferred Inflows Of Resources 7,584,748 1,599,146 Total Liabilities and Deferred Inflows Of Resources 215,531,032 203,604,636 NET POSITION Net Investment in Capital Assets 117,079,071 114,767,362 Restricted for: Future Capital Expansion Projects 9,076,014 6,435,505 Unrestricted 18,943,736 18,910,595 Total Net Position 145,098,821$ 140,113,462$ EAST VALLEY WATER DISTRICT Statement of Revenues, Expenses, and Changes in Net Position Year Ended June 30, 2022 The accompanying notes are an integral part of this statement. 31 For Comparative Purposes Only 2022 2021 OPERATING REVENUES Water Sales 18,472,876$ 19,305,631$ Wastewater Treatment Charges 9,764,357 8,456,508 System Charges 14,020,823 13,922,686 Other Charges 835,559 551,989 Total Operating Revenues 43,093,615 42,236,814 OPERATING EXPENSES Water Department: Source of Supply 3,515,262 3,617,788 Pumping 756,843 596,586 Treatment 1,045,730 1,008,129 Transmission and Distribution 3,563,328 3,253,175 Customer Accounts 1,225,403 1,185,551 Total Water Department 10,106,566 9,661,229 Wastewater Department: Wastewater Treatment 9,084,061 8,456,508 Wastewater Collection 587,128 722,680 Customer Accounts 494,505 438,645 Total Wastewater Department 10,165,694 9,617,833 Administrative and General 13,927,491 10,724,630 Operating Expenses Before Depreciation 34,199,751 30,003,692 Depreciation 6,378,590 6,492,372 Total Operating Expenses 40,578,341 36,496,064 Operating Income 2,515,274$ 5,740,750$ (Continued) EAST VALLEY WATER DISTRICT Statement of Revenues, Expenses, and Changes in Net Position - Continued Year Ended June 30, 2022 The accompanying notes are an integral part of this statement. 32 For Comparative Purposes Only 2022 2021 NON-OPERATING REVENUES (EXPENSES) Investment Income 165,989$ 167,499$ Gain on Disposal 1,042,562 - Other Income 33,706 43,744 Interest Expense (1,295,223) (1,387,113) Unrealized Investment Losses (303,474) - Loss on Disposal of Assets - (1,236,600) Total Non-Operating Revenues (Expenses)(356,440) (2,412,470) Income Before Contributions 2,158,834 3,328,280 CONTRIBUTIONS Capacity Charges 2,722,948 577,185 Operating Grants 103,577 300,000 Total Contributions 2,826,525 877,185 CHANGE IN NET POSITION 4,985,359 4,205,465 TOTAL NET POSITION, BEGINNING 140,113,462 135,907,997 TOTAL NET POSITION, ENDING 145,098,821$ 140,113,462$ EAST VALLEY WATER DISTRICT Statement of Cash Flows Year Ended June 30, 2022 The accompanying notes are an integral part of this statement. 33 For Comparative Purposes Only 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers 42,383,540$ 40,768,273$ Cash Payments for Employees Services (12,167,869) (11,567,176) Cash Payments to Suppliers (22,435,948) (19,267,178) Cash to/(from) Other Sources (1,186,152) 24,325 Net Cash Provided by Operating Activities 6,593,571 9,958,244 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Reimbursements Received 8,287,456 Grant Funds Received - 316,145 Proceeds from Sale of Capital Assets 3,379,959 26,552 Developer Fees Received 2,826,525 577,185 Assessments Received 23,081 27,000 Proceeds/Draws from SRF Loan 13,221,385 63,384,866 Proceeds from Issuance of Bonds - 33,761,890 Payments on Capital Debt (2,290,011) (36,225,058) Interest Paid on Capital Debt (1,527,660) (1,718,549) Acquisition of Capital Assets (25,897,710) (72,417,532) Net Cash Used for Capital and Related Financing Activites (1,976,975) (12,267,501) CASH FLOWS FROM INVESTING ACTIVITIES Interest Received from Investments 62,700 165,235 Acquisition of Investments (3,456,732) (2,465,610) Proceeds from Sale of Investments 2,357,673 4,330,612 Loan Collections - - Net Cash Provided (Used) by Investing Activities (1,036,359) 2,030,237 Net Increase (Decrease) in Cash and Cash Equivalents 3,580,237 (279,020) Cash and Equivalents, Beginning of Year 18,694,003 18,973,023 Cash and Equivalents, End of Year 22,274,240$ 18,694,003$ RECONCILIATION TO STATEMENT OF NET POSITION Cash and Cash Equivalents 11,313,557$ 8,718,115$ Restricted Cash and Cash Equivalents 10,960,683 9,975,888 Total Cash and Cash Equivalents 22,274,240$ 18,694,003$ (Continued) EAST VALLEY WATER DISTRICT Statement of Cash Flows - Continued Year Ended June 30, 2022 The accompanying notes are an integral part of this statement. 34 For Comparative Purposes Only 2022 2021 Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating Income 3,604,697$ 5,740,750$ Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities: Depreciation 6,378,590 6,492,372 Miscellaneous Income/(Expense)126,699 24,325 CIP Projects Expensed 714,343 5,507 Change in Assets and Liabilities: (Increase) Decrease in Accounts Receivable (938,233) (1,236,263) (Increase) Decrease in Inventory (440,925) (16,643) (Increase) Decrease in Prepaids 116,907 (137,001) (Increase) in Deferred Outflows of Resources - Pensions - 298,506 Increase (Decrease) in Accounts Payable (2,053,069) (1,323,261) Increase (Decrease) in Accrued Salaries and Benefits 88,171 86,552 Increase (Decrease) in Compensated Absences 81,086 217,552 Increase (Decrease) in Net Pension Liability - 508,154 Increase in Net OPEB Liability - (55,700) Decrease in Deferred Inflows of Resources - (414,327) Increase (Decrease) in Customer Deposits (1,312,853) (232,275) Increase (Decrease) in Developer Deposits 228,158 - Total Cash Provided by Operating Activities 6,593,571$ 9,958,248$ EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 35 1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A) Reporting Entity The East Valley Water District is a special district that was formed in 1954, as a result of an election by local residents who desired water service by a public water agency. Later, as the population increased, a modern wastewater system was needed to replace the septic tanks used at the time. Citizens voted to give the District responsibility for that service. The District encompasses an area of approximately 30.1 square miles and provides water and wastewater service to the City of Highland, parts of the City of San Bernardino, and unincorporated parts of the County of San Bernardino, California. The East Valley Water District Financing Authority (Authority), and the North Fork Water Company (Company) are component units of the East Valley Water District. A component unit is an entity which is financially accountable to the primary government, either because the primary government appoints a voting majority of the component unit's Board, or because the component unit will provide a financial benefit or impose a financial burden on the primary government. The Authority, and Company are blended component units. Only North Fork Water Company prepares separate financial statements. The Authority was created in August 2010 by a joint exercise of powers agreement for the purpose of financing public capital improvements. It is governed by a Board of Directors comprised of the District's Board of Directors. The Authority issued debt in October 2010 which is secured solely from installment payments under an installment purchase agreement entered into by the District and the Authority. The Company was established in February 1885 to deliver water, taken from the Santa Ana River, to its property owner /shareholders. The Company is governed by a Board of Directors comprised of, and elected by, Company shareholders. The District has purchased shares of Company stock as they become available to secure rights to the Santa Ana River water and have it delivered to the District's surface water treatment plant. At June 30, 2022, the District owned 7,146.99 of 7,156 outstanding Company shares. Due to the number of Company shares owned, the District is able to appoint a majority of the Company’s Governing Board and is therefore, financially accountable for the Company. In addition, management and staff of the District have complete responsibility for the operations of the Company. As a result, the Company's financial statements have been included in the accompanying financial statements as a blended component unit. Copies of the Company's financial statements may be obtained from the District’s Fi nance Department at 31111 Greenspot Road, Highland, California 92346. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 36 1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued The following condensed combining schedule shows how the District and its component units are blended in the accompanying financial statements: Table 1-1 District NFWC Eliminations Total Statement of Net Position Current Assets 36,383,785$ 12,732$ -$ 36,396,517$ Capital Assets 311,103,711 233,526 (2,066,231) 309,271,006 Other Assets 8,528,514 2,717,914 - 11,246,428 Deferred Outflows 3,715,902 - 3,715,902 Total Assets & Deferred Outflows 359,731,912 2,964,172 (2,066,231) 360,629,853 Current Liabilities 20,963,013 40,146 - 21,003,159 Long-Term Liabilities 186,943,125 - - 186,943,125 Deferred Inflows 7,584,748 - - 7,584,748 Total Liabilities & Deferred Inflows 215,490,886 40,146 - 215,531,032 Net Investment in Capital Assets 116,298,971 2,846,331 (2,066,231) 117,079,071 Restricted Net Position 8,998,319 77,695 - 9,076,014 Unrestricted Net Position 18,943,736 - 18,943,736 Total Net Position 144,241,026 2,924,026 (2,066,231) 145,098,821 Statement of Changes in Net Position Sales and Services 42,258,056$ -$ -$ 42,258,056$ Other Operating Revenue 835,559 - 835,559 Operating Expenses 34,033,951 165,800 - 34,199,751 Depreciation 6,322,753 55,837 - 6,378,590 Operating Income 2,736,911 (221,637) - 2,515,274 Net Non-Operating Revenue (Expenses)(449,435) 92,995 - (356,440) Capital Contributions 2,826,525 - - 2,826,525 Special Items - - - - Change in Net Position 5,114,001 (128,642) - 4,985,359 Beginning Net Position 139,127,025 3,052,668 (2,066,231) 140,113,462 Ending Net Position 144,241,026$ 2,924,026$ (2,066,231)$ 145,098,821$ Net Cash from Operating Activities 6,724,455$ (130,884)$ -$ 6,593,571$ Net Cash from Capital and Related Financing Activities (2,070,485) 93,510 - (1,976,975) Net Cash from Investing Activities (1,036,359) - - (1,036,359) Beginning Cash and Equivalents 18,424,561 269,442 - 18,694,003 Ending Cash & Equivalents 22,042,172$ 232,068$ -$ 22,274,240$ EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 37 1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued B) Measurement Focus, Basis of Accounting and Financial Statement Presentation The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources or economic resources. The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. The District uses the economic resources measurement focus and the accrual basis of accounting. Accordingly, revenues are recognized when they are earned, and expenses are recorded when the liability is incurred. C) Comparative Data Prior year data has been included where practical for comparison purposes only. The prior year data does not represent a complete presentation in accordance with accounting principles generally accepted in the United States of America. D) Inventory Valuation Inventories are valued at cost using the average-cost method. E) Capitalization and Depreciation Capital assets purchased or constructed by the District are recorded at cost. Donated capital assets are recorded at acquisition value as of the date received. The District has a capitalization threshold of $5,000. Depreciation is computed using the straight-line method over the estimated useful lives of the various assets. Water canals, water, and wastewater lines are depreciated over 25 to 50 years; office equipment and vehicles are depreciated over 5 years. Water stock and rights contributed to the District are recorded at the same value the District is currently paying for the purchase of similar stock. F) Restricted Assets Certain assets of the District are restricted in use by ordinance or debt covenant and accordingly are shown as restricted assets on the accompanying statement of net position. Unexpended Bond proceeds are set aside for capital improvements, District deposits into Bond trustee accounts are to be used for debt service, and utility deposits must be returned to the customers at their request after their account has been paid timely for 12 consecutive months, or when their account is closed. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 38 1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued G) Cash and Cash Equivalents For the purposes of the statement of cash flows, cash and cash equivalents have been defined as demand deposits and highly liquid investments purchased with an original maturity of 3 months or less. The District invests funds with the Local Agency Investment Fund (LAIF) and Money Market Mutual Funds. Due to the high liquidity of these investments, these funds are classified as cash equivalents. H) Investments The District has adopted the provisions of GASB Statement No. 72, Fair Value Measurement and Application. The objective of this Statement is to enhance comparability of financial statements among governments by measurement of certain assets and liabilities at their fair value using a consistent and more detailed definition of fair value and accepted valuation techniques. The definition of fair value is the price that would be received to sell and asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. This Statement establishes a hierarchy of inputs to valuation techniques used to measure fair value. I) Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position includes a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to future periods and so will not be recognized as an outflow of resources (expense/expenditure) until then. The District has three items which qualify for reporting in this category: Deferred Outflows Charge on Refunding, Deferred Outflows Related to Pensions, and Deferred Outflows Related to OPEB. In addition to liabilities, the statement of financial position includes a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The District has three items which qualify for reporting in this category: Deferred Inflows related to Pensions, Deferred Inflows related to OPEB, and Deferred Inflows related to Bond Refinancing. J) Compensated Absences The District has a policy whereby an employee can accumulate unused sick leave and vacation. Sick leave is to be used for extended periods of sickness; however, upon termination or retirement, a portion will be paid as additional benefits to the employee. At retirement or termination, employees who have accumulated over ten years of service will be paid between 50 to 70% of their unused sick leave (based upon their balance of unused sick leave) at their regular payroll rates in effect at the date of termination. Also, employees can cash out up to 300 hours of unused sick time, per calendar year, provided that a minimum of 160 hours is retained after said cash-out. The District has provided for these future costs by accruing a range of the earned and unused sick leave and 100% of the earned and unused vacation. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 39 1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued K) Classification of Revenue As an enterprise (proprietary) fund, the District classifies its revenues into three classifications: operating revenue, non-operating revenue, and contributions. Operating revenues are defined as revenues realized by the District in exchange for providing its primary services of water distribution and wastewater collection to its customers. Non-operating revenues are those derived from the investment of cash reserves and from the disposal of excess property, and include those resources received from entities other than customers, such as governmental agencies and developers, for purposes not related to capital improvement. Donated plant and cash received for capital improvement without the requirement that the District give resources in exchange are recorded as contributions. L) Use of Restricted Resources The District uses restricted resources, prior to using unrestricted resources, to pay expenses meeting the criteria imposed on the use of restricted resources by a third party. M) 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 certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. N) Pension For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the District’s California Public Employees’ Retirement System (CalPERS) plans (Plans) are additions to/deductions from the Plans’ fiduciary net position and have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. O) Postemployment Benefits Other Than Pensions (OPEB) For purposes of measuring the District’s OPEB liability related to the California Employer’s Retirement Benefits Trust (CERBT), deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the CERBT and additions to/deductions from the CERBT fiduciary net position have been determined on the same basis as they are reported by the CERBT. For this purpose, the CERBT recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value, except for money market investments and participating interest earning investment contracts that have a maturity at the time of purchase of one year or less, which are reported at cost. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 40 1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued P) Future Accounting Pronouncements The applicable GASB Statements listed below will be implemented in future financial statements: Table 1-2 GASB Statement Description Effective Date Statement No. 92 Omnibus 2020 The objectives of this statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing practice issues that have been identified during implementation and application of certain GASB Statements. The statement addresses a variety of topics. Some requirements are effective upon issuance of the statement and other requirements are effective for the FY 2022-23. Statement No. 93 Replacement of Interbank Offered Rates As a result of global reference rate reform, the London Interbank Offered rate (LIBOR) is expected to cease to exist in its current form at the end of 2021. The objective of this statement is to address accounting and financial reporting implications that result from replacement of an IBOR. The statement is effective for the FY 2022-23. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 41 1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued P) Future Accounting Pronouncements Table 1-2 - Continued GASB Statement Description Effective Date Statement No. 94 Public-Private and Public- Public Partnership and Availability Payment Arrangements Addresses issues related to public‐private and public‐public partnership arrangements (PPPs). A PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange‐like transaction. The statement is effective for the FY 2022-23. Statement No. 96 Subscription- based Information Technology Arrangements Guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). The statement is effective for the FY 2022-23. Statement No. 99 Omnibus 2022 Objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The statement is effective for reporting periods beginning after June 15, 2023. Statement No. 100 (an amendment of GASB Statement No. 62) Accounting Changes and Error Corrections Prescribes the accounting and financial reporting for (1) each type of accounting change and (2) error corrections. This Statement requires disclosure in notes to financial statements of descriptive information about accounting changes and error corrections. The statement is effective for fiscal years beginning after June 15, 2023. Statement No. 101 Compensated Absences Updates the recognition and measurement guidance for compensated absences by aligning the recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The statement is effective for fiscal years beginning after December 15, 2023. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 42 2) CASH AND INVESTMENTS Cash and Investments as of June 30, 2022 are classified in the accompanying financial statements as follows: Table 2-1 Cash and Cash Equivalents 11,313,557$ Restricted Cash and Cash Equivalents 10,960,683 Investments 4,574,471 Total 26,848,711$ Cash and investments as of June 30, 2022 consist of the following: Table 2-2 Cash on Hand 5,400$ Deposits with Financial Institutions 5,104,868 Money Market Accounts with Financial Institutions 1,085,264 Investments with Local Agency Investment Fund 16,078,708 Investment in Debt Securities 4,574,471 Total 26,848,711$ Investments Authorized by the California Government Code and the District’s Investment Policy The table below identifies the investment types that are authorized by the District's investment policy and in accordance with Section 52601 of the California Government Code The table also identifies certain provisions of the District's investment policy that address interest rate risk and concentration of credit risk. Table 2-3 Authorized Investment Type Maximum Maturity Authorize d Limit Required Rating Bonds and Certificates of Participation by EVWD 5 years None None U.S. Treasury Bills, Notes, or Bonds 5 years None None State Registered Warrants, Notes, or Bonds 5 years None None Notes and Bonds of other Local California Agencies 5 years None None U.S. Agencies 5 years None None Negotiable Certificates of Deposits 5 years 30%None Money Market Mutual Funds and Mutual Funds 5 years 15%2 - AAA Collateralized Bank Deposits 5 years None None Local Agency Investment Fund (LAIF)N/A None None At June 30, 2022, the District had no investments in repurchase agreements and did not utilize this investment media during the reporting year. As a matter of investment policy, the District does not borrow funds with reverse repurchase agreements. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 43 2) CASH AND INVESTMENTS - Continued Disclosures Relating to 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. One of the ways that the District minimizes its exposure to this type of risk is by investing in investments with laddered maturity dates. As of June 30, 2022, the District had the following investments and maturities: Table 2-4 Investment Type Fair Value Average Maturity Freddie Mac 92,922$ 3.14 years Federal Home Loan Bank 2,787,605 2.81 years Federal Farm Credit Bank 185,068 4.4 years US Treasury 1,209,953 1.99 years Tenn Valley Authority 298,923 2.21 years LAIF 16,078,708 N/A Money Market Mutual Funds 1,085,264 N/A 21,738,443$ Disclosures Relating to Credit Risk Generally, 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 minimum rating required by (where applicable) the California Government Code or the District’s investment policy, and the actual rating as of year-end for each investment type. Table 2-5 Investment Type Fair Value Minimum Legal Rating Exempt From Disclosure Rating at Year End AAA Not Rated Freddie Mac 92,922$ N/A -$ 92,922$ -$ Federal Home Loan Bank 2,787,605 N/A - 2,787,605 - Federal Farm Credit Bank 185,068 N/A - 185,068 - US Treasury 1,209,953 N/A 1,209,953 - - Tenn Valley Authority 298,923 N/A - 298,923 - LAIF 16,078,708 N/A - - 16,078,708 Money Market Mutual Funds 1,085,264 N/A - 1,085,264 - 21,738,443$ 1,209,953$ 4,449,782$ 16,078,708$ EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 44 2) CASH AND INVESTMENTS - Continued Fair Value Measurements The District categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. These principles recognize a three-tiered fair value hierarchy, as follows: • Level 1: Investments reflect prices quoted in active markets; • Level 2: Investments reflect prices that are based on a similar observable asset either directly or indirectly, which may include inputs in markets that are not considered to be active; and • Level 3: Investments reflect prices based upon unobservable sources. Valuation Technique: Level 2 Investments use the Market Approach which uses prices generated for identical or similar assets or liabilities. The District has the following recurring fair value measurements as of June 30, 2022: Table 2-6 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Investments by Fair Value Level (Level 1)(Level 2)(Level 3)Total Debt Securities Freddie Mac 92,922$ -$ -$ 92,922$ Federal Home Loan Bank 2,787,605 - - 2,787,605 Federal Farm Credit Bank 185,068 - - 185,068 US Treasury 1,209,953 - - 1,209,953 Tenn Valley Authority 298,923 - - 298,923 Total Investments Measured at Fair Value 4,574,471$ -$ -$ 4,574,471$ Investments Measured at Amortized Cost LAIF 16,078,708 Money Market Mutual Funds 1,085,264 Total Investments 21,738,443$ Fair Value Measurements Using Disclosure Related to Concentration of Credit Risk The District's policy places no limits on amounts invested in any given issuer beyond that stipulated by the California Government Code. At June 30, 2022, there were no investments (other than external pools, U.S. Government Securities and Money Market Mutual Funds) that exceeded 5% of the District's total investments. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 45 2) CASH AND INVESTMENTS – Continued Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., 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 requires California banks and savings and loan associations to secure deposits by pledging government securities as collateral. Such collateralization of public funds is accomplished by pooling. As such, collateralized securities are held by the pledging financial institution's agent on behalf of the District. The fair value of the pledged securities must equal at least 110% of Districts deposits. California law also allows financial institutions to secure deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. The District may waive collateral requirements for deposits which are fully insured by Federal depository insurance. As of June 30, 2022, the District had $9,899,019 deposited with financial institutions that were in excess of federal depository insurance limits. The federal deposit insurance limit is $250,000. Investment in State Investment Pool The management of the State of California Pooled Money Investment Account (generally referred to as LAIF) has reported to its participating agencies that, as of June 30, 2022, the carrying amount (at amortized cost) of the pool was $234,590,320,982 and the estimated fair value of the pool was $231,570,067,770. The District's proportionate share of the fair value (as determined by LAIF) as of June 30, 2022, was $16,078,708. Included in LAIF's investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset- backed securities, loans to certain State funds, and floating rate securities issued by federal agencies, government- sponsored enterprises, and corporations. 3) RESTRICTED CASH AND CASH EQUIVALENTS Restricted cash and cash equivalents at June 30, 2022 are restricted as follows: Table 3-1 Held for Debt Service 230,576$ Capacity Fees from Developers 8,998,318 Customer Deposits 1,390,220 Construction Advances 109,500 North Fork Water Company 232,069 Total 10,960,683$ EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 46 4) CAPITAL ASSETS A summary of changes in capital assets for the year ended June 30, 2022 is as follows: Table 4-1 Beginning of End of Year Additions Deletions Adjustments Year Water Fund Non-Depreciable Assets Land and Easements 3,408,270$ 491,883$ (751,842)$ -$ 3,148,311$ Water Rights 732,835 - - - 732,835 Construction in Progress 10,058,568 4,664,736 (1,589,243) - 13,134,061 Total Non-Depreciable Assets 14,199,673 5,156,619 (2,341,085) - 17,015,207 Depreciable Assets Source of Supply 19,253,685 231,875 - - 19,485,560 Pumping Plant 14,890,661 351,548 (55,365) - 15,186,844 Treatment Plant 28,884,303 343,048 - - 29,227,351 Transmission and Distribution Plant 101,936,554 294,779 (1,314,775) - 100,916,558 General Plant 20,565,864 641,701 - - 21,207,565 Total Depreciable Assets 185,531,067 1,862,951 (1,370,140) - 186,023,878 Accumulated Depreciation Source of Supply (8,456,369) (649,587) - - (9,105,956) Pumping Plant (7,600,601) (495,288) 54,314 - (8,041,575) Treatment Plant (13,185,134) (650,690) - - (13,835,824) Transmission and Distribution Plant (43,104,381) (2,568,027) 426,277 - (45,246,131) General Plant (7,626,263) (1,119,122) - - (8,745,385) Total Accumulated Depreciation (79,972,748) (5,482,714) 480,591 - (84,974,871) Water Fund Capital Assets, Net 119,757,992 1,536,856 (3,230,634) - 118,064,214 Wastewater Fund Non-Depreciable Assets Land and Easements 3,383,431 - (684,725) - 2,698,706 Construction in Progress 148,753,482 22,869,942 (759,991) - 170,863,433 Total Non-Depreciable Assets 152,136,913 22,869,942 (1,444,716) - 173,562,139 Depreciable Assets Wastewater Collection Plant 27,599,602 242,080 - - 27,841,682 General Plant 9,864,381 84,413 - - 9,948,794 Total Depreciable Assets 37,463,983 326,493 - - 37,790,476 Accumulated Depreciation Wastewater Collection Plant (15,510,660) (462,576) - - (15,973,236) General Plant (3,739,288) (433,299) - - (4,172,587) Total Accumulated Depreciation (19,249,948) (895,875) - - (20,145,823) Wastewater Fund Capital Assets, Net 170,350,948 22,300,560 (1,444,716) - 191,206,792 Total Capital Assets, Net 290,108,940$ 23,837,416$ (4,675,350)$ -$ 309,271,006$ EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 47 5) LONG-TERM DEBT The schedule below summarizes changes in long-term debt during the year ended June 30, 2022: Table 5-1 Beginning Balance (June 30, 2021) Additions Retirements/ P ayments Ending Balance (June 30, 2022) Current P ortion Long-Term P ortion Direct Placement: 2020A Refunding Bonds 16,885,000$ - (895,000) 15,990,000 940,000 15,050,000 2020A Unamortized Premium 3,121,998$ - (163,094) 2,958,904 163,094 2,795,810 2020B Refunding Bonds 13,615,000$ - (275,000) 13,340,000 280,000 13,060,000 2020B Unamortized Premium -$ - - - - - Subtotal Direct Placement 33,621,998 - (1,333,094) 32,288,904 1,383,094 30,905,810 Direct Borrowing: U.S. Bank Lease Purchase 1,303,702$ -$ (424,831)$ 878,871 434,496$ 444,375$ SBVMWD Loan 2,146,022$ (12,002) (430,000) 1,704,020 429,020 1,275,000 DWR Contracts -$ AVAD Construction 64,240$ - (6,762) 57,478 6,762 50,716 Plant 134 Construction 5,601,571$ - (233,399) 5,368,172 233,399 5,134,774 EFAD Construction 286,354$ - (13,016) 273,337 13,016 260,321 SNRC 126,447,674$ 13,221,385 - 139,669,059 - 139,669,059 Subtotal Direct Borrowing 135,849,563 13,209,383 (1,108,008) 147,950,938 1,116,693 146,834,245 Total 169,471,561$ 13,209,383$ (2,441,102)$ 180,239,842$ 2,499,787$ 177,740,054$ 2020 Revenue Bonds Series 2020A - On September 10, 2020, the District issued $16,885,000 of East Valley Water District Refunding Revenue Bonds, Series 2020A (2020A Bonds), to accomplish a current refunding of then outstanding 2010 Revenue Bonds ($21,635,000). The 2020A Bonds carry inter est rates ranging from 3.00% to 5.00% and will be repaid in various principal increments with the final payment due on October 1, 2040. The refunded 2010 Bonds carried interest rates ranging from 4.00% to 5.00% and were due in various principal increments until October 1, 2040. The 2020A bonds were issued at a premium of $3,261,890, and after paying issuance costs of $161,885, net proceeds were $19,985,005. The net proceeds, combined with a $2,129,931 sinking fund for 2010 bond debt service, were sufficient to accomplish the refunding of the existing debt. All refunded debt has been retired. The refunding resulted in a difference between the reacquisition price and the carrying amount of the old debt of $259,548. This difference is included in the accompanying financial statements as a Deferred Outflows of Resources and is being charged to operations through the year 2040 using the straight -line method of amortization. The District completed the refunding to decrease total debt service over the nex t 20 years by $6,052,794, and to obtain an economic gain (difference between the present values of the old and new debt service payment) of $4,765,023. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 48 5) LONG-TERM DEBT - Continued Series 2020B - Also on September 10, 2020, the District issued $13,615,000 of East Valley Water District Refunding Revenue Bonds, Series 2020B (2020B Bonds), to accomplish an advance refunding of then outstanding 2013 Revenue Bonds ($12,085,000). The 2020B Refunding Bonds carry interest rates from 0.42 % to 2.93 % (federally taxable) and will be repaid in various principal increments with the final payment due on October 1, 2043. The refunded 2013 Bonds carried interest rates ranging from 4.00% to 5.00% and were due in various principal increments until October 1, 2043. The 2020B bonds were issued at face value, and after paying issuance costs of $123,500, net proceeds were $13,491,500. The net proceeds, combined with a $292,563 sinking fund held for 2013 bond debt service, were used to purchase US Government securities which were deposited in an irrevocable trust with an escrow agent to provide debt service on the 2013 Bonds until October 1, 2023 on which date all outstanding bonds will be redeemed. The advance refunding met the requirements of an in-substance defeasance there fore, accordingly, the 2013 Revenue Bonds are no longer reflected as a liability on the accompanying financial statements. The refunding resulted in a difference between the reacquisition price and the carrying amount of the old debt of $259,548. This difference is included in the accompanying financial statements as a Deferred Outflows of Resources and is being charged to operations through the year 2043 using the straight -line method of amortization. The District completed the refunding to decrease total debt service over the next 23 years by $3,014,190, and to obtain an economic gain (difference between the present values of the old and new debt service payment) of $2,154,117. US Bank Lease Purchase On November 13, 2013 the District entered into a Lease Purchase Agreement with US Bancorp Government Leasing and Finance, Inc. (US Bank), to implement Energy Conservation Measures (ECM) identified in a comprehensive energy conservation and operational efficiency study prepared by Honeywell International, Inc. (Honeywell). Honeywell has been contracted to install the facilities necessary to achieve the energy savings identified in their study, and has guaranteed that the savings will be sufficient to pay the debt service on the lease with US Bank. Project costs paid to Honeywell, and the amount borrowed from US Bank under the lease agreement is $3,998,560 with an interest rate of 2.3 8%. Semi-annual payments are $226,398, to com mence in September 2014 through March 2024. The indenture authorizes, upon default, the Trustee to declare immediate due and payable the total unpaid principal of the Bonds and accrued interest thereon. San Bernardino Valley Municipal Water District - City Creek Turnout and Plant 134 Hydroelectric Station Loan On January 20, 2015, the District entered into an agreement with the SBVMWD for the construction, financing, and maintenance of a turnout by which the District’s surface water treatment plant can receive State Project water. The total amount borrowed for construction of the project is $4,367,927 bearing interest at the State of California Local Agency Investment Fund (LAIF) apportionment rate, which is 0.75% at June 30, 2022. Debt service payments are to be made annually on February 1st over ten years. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 49 5) LONG-TERM DEBT - Continued Department of Water Resources Contract 00C412 - Arroyo Verde Assessment District (AVAD) On June 30, 2004, the District entered into a Funding Agreement for replacement of distribution pipelines in the section of the District's service area formerly served by the Arroyo Verde Water Company. The original loan amount was $169,052 with an annual interest rate of 0%. Semi -annual payments of $3,381 are due through January 2031 and are secured by annual assessments to property owners within the Arroyo Verde Assessment District. The indenture authorizes, upon default, the Trustee to declare immediate due and payable the total unpaid principal of the Bonds and accrued interest thereon. Department of Water Resources Contract 10CX110 - Plant 134 On December 21, 2010, the District entered into a Funding Agreement to upgrade treatment methods utilized by the District's surface water treatment plant (Plant 134). The amount borrowed under the agreement is $7,001,964 with an annual interest rate of 0%. Semi-annual payments of $116,699 are due through January 2045, and are secured by a pledge of net revenues of the District's water operating fund . The indenture authorizes, upon default, the State to declare immediate due and payable the total unpaid prin cipal of the debt and accrued interest thereon. Department of Water Resources Contract 11CX101 - Eastwood Farms Assessment District (EFAD) On June 15, 2011 the District entered into a Funding Agreement for replacement of distribution pipelines in the section of the District's service area formerly serviced by the Eastwood Farms Water Users Association. The amount of the loan is $390,482 with an annual interest rate of 0%. Semi-annual payments of $6,508 are due for 30 years through January 2043. Repayment of the loan is secured by annual assessments to property owners within the Eastwood Farms Assessment District. The indenture authorizes, upon default, the Trustee to declare immediate due and payable the total unpaid principal of the Bonds and accrued interest thereon. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 50 5) LONG-TERM DEBT – Continued The aggregate debt service requirements to maturity for long -term debt as of June 30, 2022 are as follows (excludes unamortized premiums/discounts and the California State Water Resource Control Board Contract C- 06-8106-110): Table 5-2 Year Ending June 30,Principal Interest Total 2023 2,336,693$ 1,016,316$ 3,353,009$ 2024 2,392,552 965,074 3,357,626 2025 1,983,177 898,188 2,881,365 2026 1,628,177 850,937 2,479,114 2027 1,243,177 808,729 2,051,906 2028-2032 6,777,505 3,452,319 10,229,824 2033-2037 7,842,075 2,353,005 10,195,080 2038-2042 8,997,075 1,194,543 10,191,618 2043-2045 4,411,448 112,732 4,524,180 37,611,879$ 11,651,843$ 49,263,722$ California State Water Resources Control Board Contract C -06-8106-110 – Sterling Natural Resource Center On June 26, 2018 the District entered into a Funding Agreement for the construction of a 6 million gallon per day (mgd) water recycling plant with the State Water Resources Control Board. The initial agreement approves $11.5 million for design cost reimbursement, with a revised agreement covering design and construction costs totaling $157 million executed on December 2, 2019. The revised Agreement includes a $6.7 million grant and a low interest (1.8%) loan for the balance of $150.3 million. As of June 30, 2022 the District has incurred $138.6 million in design and construction cost, the District has drawn approximately $126.4 million, $12.2 million is awaiting reimbursement (Due From Other Governments) of the $150.3 million in loan financing available. Repayment on the loan will begin one year after the completion of construction and annual installment payments of principal and interest are projected to be approximately $7.3million. The District has pledged available water and wastewater revenue for the repayment of the loan, including the following new revenue streams: • Wastewater treatment charges (previously paid to the City of San Bernardino) • Sale of electrical energy produced by plant digesters (beyond energy used on site) • Local Resource Investment Program fees for recycled water delivered for groundwater recharge • Tipping fees from waste haulers Estimated debt service on this loan is not included in Table 5-2 above. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 51 5) LONG-TERM DEBT - Continued Security for debt is as follows: Table 5-3 Debt Security 2020A and 2020B Refunding Revenue Bonds and Department of Water Resources Construction Loans The District is required to maintain net revenues, as defined by the revenue bond trust agreements and State of California Department of Public Health Funding agreements of at least 120% of District's annual debt service (principal and interest). At June 30, 2022, net water revenues represented 294% of the annual water debt service and net wastewater revenues represented 1934% of the annual wastewater debt service. 6) COMPENSATED ABSENCES Compensated absences are comprised of unused vacation leave and a limited amount of sick leave which is accrued as earned in accordance with District policy. The District's liability for compensated absences is determined annually. Current portions are determined based on estimates of usage, amounts in excess of 196 hours that will be voluntarily cashed out and amounts that will be cashed out upon termination of employment. Table 6-1 Beginning of Year Additions Usage / Payments End of Year Current Portion Long-Term Portion Accrued Vacation Leave 604,783$ 231,437$ (206,087)$ 630,133$ 347,001$ 283,132$ Accrued Sick Leave 601,759 808,971 (753,234) 657,496 257,121 400,375 Total 1,206,542$ 1,040,408$ (959,321)$ 1,287,629$ 604,122$ 683,507$ 7) NET INVESTMENT IN CAPITAL ASSETS Net Investment in capital assets at June 30, 2022 consisted of the following: Table 7-1 Non-Depreciable Capital Assets 190,577,346$ Depreciable Capital Assets 223,814,354 Accumulated Depreciation (105,120,694) North Fork Water Company 651,683 Loans Payable (160,270,423) Bonds Payable (32,288,904) Deferred Inflows (1,181,143) Deferred Ouflows 896,852 Total 117,079,071$ EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 52 8) DEFINED BENEFIT PENSION PLAN (PERS) A) General Information about the Pension Plans Plan Description All qualified permanent and probationary employees are eligible to participate in the District’s Miscellaneous Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the California Public Employees’ Retirement System (CalPERS). Benefit provisions under the Plans are established by State statue and East Valley Water District resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions, and membership information that can be found on the CalPERS website. Benefits Provided CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries. Benefits are based on years of credited service, equal to one year of full-time employment. Members with five years of total service are eligible to retire at age 50 with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is one of the following: the Basic Death Benefit, the 1957 Survivor Benefit, or the Optional Settlement 2 W Death Benefit. The cost-of-living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. The Plans’ provisions and benefits in effect at June 30, 2022, are summarized as follows: Table 8-1 Prior to On or after Hire Date January 1, 2013 January 1, 2013 Benefit Formula 2.7% @55 2.0% @62 Benefit Vesting Schedule 5 years service 5 years service Benefit Payments monthly for life monthly for life Retirement Age 50 - 55 52 - 67 Monthly Benefits, as a % of Eligible Compensation 2.0% to 2.7%1.0% to 2.5% Required Employee Contribution Rates 8.0%6.5% Required Employer Contribution Rates 13.66%7.65% Miscellaneous Contributions Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, w ith an additional amount to finance any unfunded accrued liability. The District is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 53 8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued For the year ended June 30, 2022, the contributions recognized as part of pension expense for the Plans were as follows: Table 8-2 Miscellaneous Contributions - Employer $ 1,019,834 B) Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2022, the District reported net pension liabilities for its proportionate shares of the net pension liability of the Plans as follows: Table 8-3 Proportionate Share of Net Pension Liability Miscellaneous $ 6,657,689 The District’s net pension liability for each Plan is measured as the proportionate share of the net pension liability. The net pension liability of each of the Plans is measured as of June 30, 2022, and the total pension liability for each Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2021 rolled forward to June 30, 2022 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 plans relative to the projected contributions of all participating employers, actuarially determined. The District’s proportionate share of the net pension liability for each Plan as of June 30, 2021 and 2022 was as follows: Table 8-4 Proportion - June 30, 2021 0.29192% Proportion - June 30, 2022 0.35063% Change - Increase (Decrease)0.05871% Miscellaneous EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 54 8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued For the year ended June 30, 2022, the District recognized pension expense of $2,159,042. At June 30, 2022, the District reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Table 8-5 Deferred Outflows of Resources Deferred Inflows of Resources Difference between expected and actual experience $ 746,589 -$ Changes in Assumptions - Net differences between projected and actual earnings on plan investments - 5,811,810 Change in employer's proportion 48,122 265,265 Difference between the employer's contributions and the employer's proportionate share of contributions 210,342 38,066 Pension contributions subsequent to measurement date 1,019,834 Total $ 2,024,887 $ 6,115,141 $1,019,834 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, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows: Table 8-6 Year Ended June 30,Amount 2023 $ (1,050,926) 2024 (1,146,027) 2025 (1,307,052) 2026 (1,606,083) $ (5,110,088) EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 55 8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued Actuarial Assumptions The total pension liabilities in the June 30, 2020 actuarial valuations were determined using the following actuarial assumptions: Table 8-7 Miscellaneous Valuation Date June 30, 2020 Measurement Date June 30, 2021 Entry Age Normal in accordance with the requirements of GASB Market Value of Assets 7.15% 2.50% Varies by Entry Age and Service Derived using CalPERS' membership data for all Funds The lesser of contract COLA or 2.50% until Purchasing Power Protection Allowance floor on purchasing power applies, 2.50% thereafter (1) Mortality Rate Table (1) Post Retirement Benefit Increase The mortality table used was developed based on CalPERS’ specific data. The probabilities of mortality are based on the 2017 CalPERS Experience Study for the period from 1997 to 2015. Pre-retirement and Post-retirement mortality rates include 15 years of projected mortality improvement using 90% of Scale MP-2016 published by the Society of Actuaries. For more details on this table, please refer to the CalPERS Experience Study and Review of Actuarial Assumptions report from December 2017 that can be found on the CalPERS website. Actuarial Cost Method Asset Valuation Method Actuarial Assumptions: Discount Rate Inflation Salary Increases Discount Rate The discount rate used to measure the total pension liability remained the same at 7.15%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current 7.15% discount rate is adequate and the use of the municipal bond rate calcu lation EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 56 8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued is not necessary. The long term expected discount rate of 7.15% will be applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website. CalPERS continues the Asset Liability Management (ALM) process to expand its review of assets and liabilities to ensure financial risks to the System are better understood, communicated, and mitigated. To establish appropriate levels of risk, ALM is focused on investment and actuarial policies. These policies include key decision factors and intend to drive optimum asset allocations, while stabilizing employer contribution rates, and the volatility of those rates year to year. Additionally, to better manage risks a rising from terminating agencies, CalPERS has enhanced its oversight of contracting public agencies' financial health through its development of a standardized review criteria. These improvements include streamlining the collection and termination process to reduce the timeframe, accelerating notifications to the Board and members, and adopting a risk oversight process to improve early detection of financial hardship issues. The long-term expected rate of return on pension plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS considered both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all funds’ asset classes, expected compound (geometric) returns were calculated over the short term (first 10 years) and the long term (11+ years) using a building -block approach. Using the expected nominal returns for both short term and long term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short -term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculate d above and adjusted to account for assumed administrative expenses. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 57 8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued The table below reflects the long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses. Table 8-8 Asset Class (1) Assumed Asset Allocation Real Return Years 1 - 10 (2) Real Return Years 11+(3) Global Equity 50.0%4.80%5.98% Fixed Income 28.0%1.00%2.62% Inflation Assets 0.0%0.77%1.81% Private Equity 8.0%6.30%7.23% Real Assets 13.0%3.75%4.93% Liquidity 1.0%0.00%-0.92% Total 100.0% (1)In the System's Annual Report,Fixed Income is included in Global Debt Securities; Liquidity is included in Short-term Investments;Inflation Assets are included in both Global Equity. (2) An expected inflation of 2.00% used for this period. (3) An expected inflation of 2.92% used for this period. C) Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents East Valley Water District’s proportionate share of the net pension liability for the Plan, calculated using the current discount rate, as well as what the District’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is one-percentage point lower or one-percentage point higher than the current rate: Table 8-9 Miscellaneous 1% Decrease 6.15% Net Pension Liability $ 13,346,922 Current Discount Rate 7.15% Net Pension Liability $ 6,657,689 1% Increase 8.15% Net Pension Liability $ 1,127,795 EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 58 D) Pension Plan Fiduciary Net Position Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. E) Payable to the Pension Plan At June 30, 2022, the District reported a payable of $0 for the outstanding number of contributions to the pension plan required for the year ended June 30, 2022. 9) COMMITMENTS AND CONTINGENCIES Grant Awards Grant funds received by the District are subject to audit by the grantor agencies. Such audit could lead to requests for reimbursements to the grantor agencies for expenditures disallowed under terms of the grant. Management of the District believes that such disallowances, if any, would not be significant. 10) RISK MANAGEMENT The District is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omission; injuries to employees; and natural disasters. The District participates in a joint powers agreement (JPA) with the Special District Risk Management Authority (Authority). The Authority is a risk-pooling self-insurance authority created under the provisions of California Government Code Section 6500 et. sec. The Authority is governed by a Board consisting of 7 directors that are either a manager or Board member of a current member agency that were elected by members of SDRMA. The Board controls the operations of the Authority including selection of management and approval of operation budgets. The relationship between the District and the Authority is such that the Authority is not a component unit of the District for financial reporting purposes. Settled claims have been immaterial and claims liabilities have not been reported in these financial statements as of June 30, 2022, or in the previous two fiscal years. The purpose of the Authority is to arrange and administer programs of insurance for the pooling of self -insured losses and to purchase excess insurance coverage. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 59 10) RISK MANAGEMENT – Continued At June 30, 2022, the District's participation in the self-insurance programs of the Authority was as follows: Table 10-1 Description Deductible Personal Injury and Property Damage Liability Coverage - General 10,000,000$ Per occurrence / aggregate where applicable $500 (property damage only) Personal Injury and Property Damage Liability Coverage - Auto 10,000,000$ Per accident None Public Officials and Employees Errors and Omissions Liability 10,000,000$ Per wrongful act / annual member aggregate None Employment Practices Liability 10,000,000$ Per wrongful employment practice / aggregate limits per member included with Public Officials and Employee Errors and Omissions Coverage None up to $10,000, 50% co-insurance from $10,000 to $50,000, none for amounts greater than $50,000 Employee Benefits Liability 10,000,000$ Per wrongful act / annual member aggregate None Employee Dishonesty Coverage 1,000,000$ Per loss None Public Officials Personal Liability 500,000$ Per occurrence / annual aggregate per Board Member $ 500 Automobile Physical Damage ACV Limits Replacement cost (stated value adjusted for depreciation on selected vehicles) $250/$500 or $500/$1,000 comprehensive / collision (as elected per vehicle) Uninsured Motorist Bodily Injury Coverage 750,000$ Per accident None Property Coverage 1,000,000,000$ Replacement cost for scheduled property if replaced (if not replaced within two years, actual cash value basis) $ 1,000 Boiler and Machinery 100,000,000$ Replacement cost $ 1,000 Limits EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 60 11) POST-EMPLOYMENT HEALTHCARE BENEFITS The District provides post-employment healthcare benefits for retired employees and eligible surviving spouses in accordance with the plan as established by the District. As of June 30, 2022, the District’s total liability for post-employment healthcare benefits and details of the plan are ex plained below: Table 11-1 OPEB Plan Net OPEB Liability Deferred Outflows of Resources Deferred Inflows of Resources OPEB Expense Retiree Benefits Plan 1,861,875$ 794,163$ 288,464$ 258,955$ Plan Description and Eligibility The District contributes to the retiree health coverage of eligible retirees and eligible surviving spouses. As of June 7, 2011, the District is part of the Public Agency portion of the California Employers’ Retiree Benefit Trust Fund (CERBT), an agent multiple-employer plan administered by California Public Employees’ Retirement System (CalPERS), which acts as a common investment and administrative agent for participating public employers within the State of California. A menu of benefit provisions as well as other requirements is established by State statute within the Public Employees’ Retirement Law. The District selects optional benefit provisions from the benefit menu by contract with CalPERS and adopts those benefits through District resolution. CalPERS issues a Comprehensive Annual Financial Report (Report). The Report is issued in aggregate and includes the sum of all CalPERS plans. Copies of the CalPERS Report may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento, California 95814. Membership in the health benefit plan consisted of the following at July 1, 2022, the date of the latest actuarial valuation: Table 11-2 Participant Type 28 0 Active employees 65 93 Number of Participants Inactive participants currently receiving benefits Inactive participants entitled to but not yet receiving benefit Total Funding Policy The contribution requirements of plan members and the District are established and may be amended by the Board of Directors. At retirement, the District provides the minimum employer contribution under the CalPERS Health Program for eligible retirees and surviving spouses in receipt of a pension benefit from CalPERS. An employee is eligible for this employer contribution provided they are vested in their CalPERS pension benefit and commence payment of their pension benefit within 120 days of retirement with the District. Vesting requires at least five years of service. The surviving spouse of an eligible retiree who elected spouse coverage under CalPERS is eligible for the employer contribution upon death of the retiree. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 61 11) POST-EMPLOYMENT HEALTHCARE BENEFITS – Continued Employees retiring with at least 10 years of District service will receive an additional District contribution through attainment of Medicare eligibility age. The additional contribution is based on the negotiated dollar amount at retirement (currently $750 per month). The surviving spouse of an eligible retiree is eligible for the District's contribution upon the death of the retiree through the spouse's attainment of Medicare eligibility age. The District’s funding policy is to contribute the Annual Determined Contribution (ADC) to their account within the CERBT. For fiscal year ended June 30, 2021, the District paid $412,106 to the plan including the implicit rate subsidy. The District contributed $186,785 including the implicit rate subsidy for retiree health benefits to the Trust during the fiscal year ended June 30, 2022. Net OPEB Liability The table herein shows the components of the net OPEB liability of the District: Table 11-3 Balance June 30, 2022 Total OPEB Liability $ 3,276,038 Plan Fiduciary Net Position 1,414,163 District's Net OPEB Liability (Asset) $ 1,861,875 Investments As described above, at June 30, 2022, all Plan investments are held in the CERBT through CalPERS. Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At June 30, 2022, the District reported deferred outlflows of resources and deferred inflows of resources related to pensions from the sources as follows: Table 11-4 Deferred Outflows and Inflows of Resources Deferred Outflows of Resources Deferred Inflows of Resources Contributions subsequent to measurement date 348,363$ -$ Differences between expected and actuarial experience 445,800 - Changes of assumptions - 193,081 Differences between projected and actual earnings on - 95,383 Total 794,163$ 288,464$ The deferred outflow of resources results from a change of assumptions and is amortized over the expected average remaining service life (EARSL) of the plan participants. Contributions submitted subsequent to the measurement date will be recognized in the following fiscal year. The EARSL for the OPEB plan for June 30, 2022 is five years. The year of amortization is recognized in OPEB expense for the year the gain or loss occurs. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 62 11) POST-EMPLOYMENT HEALTHCARE BENEFITS – Continued The remaining amount is deferred and will be amortized over the remaining periods not to exceed four years. The deferred inflows of resources related to OPEB resulting from the net differences between projected and actual earnings on planned investments is amortized over a five-year period on a straight-line basis. One-fifth is recognized in pension expense during the measurement period and the remaining amount is deferred and will be amortized over the remaining four-year period. Deferred inflows and outflows will be amortized as follow: Table 11-5 Year Ending June 30, Amortization 2023 $ 8,801 2024 8,406 2025 9,100 2026 5,246 2027 31,734 Thereafter 94,049 Total $ 157,336 Actuarial Methods and Assumptions The District’s net OPEB liability was measured as of June 30, 2021, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of June 30, 20 21. Liabilities in this report were calculated as of the valuation date. The total OPEB liability was determined by an actuarial valuation as of June 30, 20 21, using the actuarial assumptions shown herein, applied to all periods included in the measurement, unless otherwise specified. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 63 11) POST-EMPLOYMENT HEALTHCARE BENEFITS - Continued Table 11-6 Actuarial Methods and Assumptions Valuation Date June 30, 2021 Measurement Date June 30, 2021 Inflation 2.75% Salary Increases 2.75% Investment Rate of Return 6.50% Health Care Trend Rate 6.00% HMO / 6.00% PPO Mortality rates were based upon the rates under the CalPERS pensions plan updated to reflect the most recent experience study. The long-term expected rate of return on Plan investments was determined using a building -block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the OPEB plan’s target asset allocation at June 30, 20 21 are shown herein: Table 11-7 Asset Class Global Equity 40%5.00% Fixed Income 43%5.00% Inflation Assets 5%3.00% Commodities 4%3.00% REITs 8%5.00% Total 100%6.50% Target Allocation L/T Expected Real ROR The discount rate used to measure the total OPEB liability was 6.50 percent. The discount rate assumes the District continues to fully fund for its retiree health benefits through the CERBT under its investment allocation strategy 2. The rate reflects the CERBT published median interest rate for strategy 2 with an additional margin for adverse deviation. EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 64 11) POST-EMPLOYMENT HEALTHCARE BENEFITS - Continued Changes in the Net OPEB Liability Table 11-8 Total OPEB Liability (a) Plan Fiduciary Net Position (b) Net OPEB Liability (Asset) (a) - (b) Balances at June 30, 2021 $ 3,064,031 $ 1,023,054 $ 2,040,977 Changes for the year: Service Cost 122,441 - 122,441 Interest 199,913 - 199,913 Differences between expected and actual experience 278,335 - 278,335 Employer Contributions - 412,106 (412,106) Net Investment Income - 204,887 (204,887) Change of assumptions (163,361) - (163,361) Benefit Payments (225,321) (225,321) - Administrative Expenses - (563) 563 Other Expenses - - - Net Changes 212,007 391,109 (179,102) Balances at June 30, 2022 $ 3,276,038 $ 1,414,163 $ 1,861,875 Increase (Decrease) The following presents the District’s net OPEB liability calculated using the discount rate of 6.50 percent, as well as what the net OPEB liability would be if it were calculated using a discount rate that is 1 -percentage- point lower (5.5 percent) or 1-percentage-point higher (7.5 percent) than the current rate: Table 11-9 Discount Rate Net OPEB Liability (Asset) 2,097,776$ 1,861,875$ 1,476,536$ 1% Decrease (5.50%) Current Discount Rate (6.50%) 1% Increase (7.50%) The following presents the District’s net OPEB liability calculated using the current healthcare cost trend rate of 6.5 percent, as well as what the net OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower (5.5 percent) or 1-percentage-point higher (7.5 percent) than the current rate: EAST VALLEY WATER DISTRICT Notes to the Basic Financial Statements Year Ended June 30, 2022 65 11) POST-EMPLOYMENT HEALTHCARE BENEFITS - Continued Table 11-10 Healthcare Trend Rate Net OPEB Liability (Asset) 1% Decrease (5.00% HMO/5.00% PPO Decreasing to 4.00% HMO/4.00% PPO)1,418,479$ Current Healthcare Cost Trend Rates (6.00% HMO/6.00% PPO Decreasing to 5.00% HMO/5.00% PPO)1,861,875$ 1% Increase (7.00% HMO/7.00%PPO Decreasing to 6.00% HMO/6.00% PPO)2,181,020$ OPEB Expense For the year ended June 30, 2022, the District recognized OPEB expense of $258,955 and recorded deferred outflows of resources of $794,163 for contributions made during fiscal year 2022 after the measurement date. The deferred outflows will be recognized in OPEB expense for the period ending June 30, 2023. The District recorded $288,464 of deferred inflows of resources resulting from the differences between projected and actual earnings on OPEB plan investments for the period ending June 30, 2021. The deferred inflows of resources will be amortized and recognized in OPEB expense over three remaining periods ending June 30, 2025. 12) CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS The District has three significant active construction project commitments as of June 30, 2022. The following contracts are related to the construction of the Recycled Water Facility. Table 12-1 Contractual Commitments Spent to Date Remaining Commitment Design-Build Services of the Granular Activated Carbon Treatment System -$ 1,777,399$ Design-Build Services of the Recycled Water Facility 180,219,119$ 30,270,445$ Design-Build Services of the Digester 17,983,544$ 2,245,500$ East Valley Water District Schedule of District’s Proportionate Share of the Net Pension Liability Year Ended June 30, 2022 Last Ten Years* The accompanying notes to required supplementary information are an integral part of this schedule. 67 Schedule of District’s Proportionate Share of the Net Pension Liability The schedule presents information on the District’s proportionate share of the net pension liability, the plans’ fiduciary net position and, when applicable, the proportionate share of the net pension liability associated with the District. In the future, as data becomes available, 10 years of information will be presented. 2022 2021 2020 Proportion of the Net Pension Liability 0.350626%0.291917%0.294797% Proportionate Share of the Net Pension Liability $ 6,657,689 $12,313,294 $11,805,140 Covered Payroll $ 6,536,459 $ 6,188,589 $ 5,888,338 Proportionate Share of the Net Pension Liability as Percentage of Covered Payroll 101.85%198.97%200.48% Plan's Fiduciary Net Position $44,006,462 $36,172,219 $34,016,773 Plan's Fiduciary Net Position as a Percentage of the Total Pension Liability 86.86%77.71%77.73% 2019 2018 2017 2016 2015 Proportion of the Net Pension Liability 0.28782%0.11699%0.11585%0.11551%0.10632% Proportionate Share of the Net Pension Liability $10,846,955 $11,601,798 $10,024,712 $ 7,928,173 $ 6,615,935 Covered Payroll $ 5,447,702 $ 4,489,575 $ 5,097,156 $ 4,715,712 $ 4,436,236 Proportionate Share of the Net Pension Liability as Percentage of Covered Payroll 199.11%258.42%196.67%168.12%149.13% Plan's Fiduciary Net Position $33,563,265 $27,706,747 $27,529,345 $28,045,198 $29,336,566 Plan's Fiduciary Net Position as a Percentage of the Total Pension Liability 77.69%71.37%74.06%78.40%79.82% Note: Fiscal year 2015 was the first year of implementation, therefore only eight years are shown. East Valley Water District Schedule of District’s Contributions Year Ended June 30, 2022 Last Ten Years* The accompanying notes to required supplementary information are an integral part of this schedule. 68 Schedule of District’s Contributions The schedule presents information on the District’s required contribution, the amounts actually contributed, and any excess or deficiency related to the required contribution. In the future, as data becomes available, 10 years of information will be presented. 2022 2021 2020 Contractually Required Contribution (Actuarially Determined)1,019,834$ 1,900,537$ 1,798,495$ Contributions in Relation to the Actuarially Determined Contributions 1,019,834$ 1,900,537$ 1,798,495$ Contribution Deficiency (Excess)-$ -$ -$ Covered Payroll $ 5,888,338 $ 6,188,589 $ 5,888,338 Contributions as a Percentage of Covered Payroll 17.32%30.71%30.54% 2019 2018 2017 2016 2015 Contractually Required Contribution (Actuarially Determined)1,228,277$ 1,579,268$ 1,035,102$ 895,822$ 742,546$ Contributions in Relation to the Actuarially Determined Contributions 1,228,277$ 1,579,268$ 1,035,102$ 895,822$ 742,546$ Contribution Deficiency (Excess)-$ -$ -$ -$ -$ Covered Payroll $ 5,658,626 $ 5,447,702 $ 4,489,575 $ 5,097,156 $ 4,715,712 Contributions as a Percentage of Covered Payroll 21.71%28.99%23.06%17.57%15.75% Note: Fiscal year 2015 was the first year of implementation, therefore only eight years are shown. East Valley Water District Schedule of Changes in the Net OPEB Liability Year Ended June 30, 2022 Last Ten Years* The accompanying notes to required supplementary information are an integral part of this schedule. 69 Schedule of Changes in the Net OPEB Liability Accounting standards require presentation of 10 years of information. However, the information in this schedule is not required to be presented retroactively. Years will be added to this schedule as future data becomes available. Total OPEB Liability 2022 2021 2020 2019 2018 Service Cost 122,441$ 122,428$ 106,297$ 103,452$ 97,138$ Interest 199,913 189,204 174,233 166,826 160,043 Differences bewteen exptected and actual experience 278,335 75,893 192,265 - - Changes of assumptions (163,361) - (65,796) - - Benefit Payments, including refunds of member contributions (225,321) (220,316) (168,787) (149,550) (168,724) Net Change in Total OPEB Liability 212,007 167,209 238,212 120,728 88,457 Total OPEB Liability - Beginning 3,064,031 2,896,822 2,658,610 2,537,882 2,449,425 Total OPEB Liability - Ending (a)3,276,038$ 3,064,031$ 2,896,822$ 2,658,610$ 2,537,882$ Plan Fiduciary Net Position 2022 2021 2020 2019 2018 Contributions - Employer 412,106$ 405,008$ 278,539$ 149,548$ 218,724$ Net Investment Income 204,887 38,644 48,769 37,365 36,877 Benefit Payments (225,321) (220,316) (168,787) (149,548) (168,724) Administrative Expense - - (330) - (261) Other Expense (263) (427) (240) (683) - Net Change in Plan Fiduciary Net Position 391,409$ 222,909$ 157,951$ 36,682$ 86,616$ Plan Fiduciary Net Position - Beginning 1,023,054 800,145 642,194 605,512 518,896 Plan Fiduciary Net Position - Ending (b)1,414,463$ 1,023,054$ 800,145$ 642,194$ 605,512$ Net OPEB Liability (Asset) - Ending (a) - (b)1,861,575$ 2,040,977$ 2,096,677$ 2,016,416$ 1,932,370$ Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 43.18%33.39%27.62%24.16%23.86% Covered-Employee Payroll 5,847,005$ 5,902,604$ 5,744,627$ 5,495,000$ 5,495,000$ Net OPEB Liability (Asset) as a Percentage of Covered- Employee Payroll 31.84%34.58%36.50%36.70%35.17% Note: Fiscal year 2018 was the first year of implementation, therefore only five years are shown. East Valley Water District Schedule of OPEB Healthcare Contributions Year Ended June 30, 2022 Last Ten Years* The accompanying notes to required supplementary information are an integral part of this schedule. 70 Schedule of OPEB Healthcare Contributions Accounting standards require presentation of 10 years of information. However, the information in this schedule is not required to be presented retroactively. Years will be added to this schedule as future data becomes available. OPEB Contributions 2022 2021 2020 2019 2018 Actuarially Determined Contribution (ADC)348,363$ 350,024$ 362,533$ 285,551$ 144,415$ Contributions in Relation to the ADC (412,106) (405,008) (278,539) (149,548) (218,724) Contribution Deficiency (Excess)(63,743) (54,984) 83,994 136,003 (74,309) District's Covered-Employee Payroll 5,847,005$ 5,903,000$ 5,745,000$ 5,495,000$ 5,495,000$ Contributions as a Percentage of Covered-Employee Payroll 5.96%5.93%6.31%5.20%2.63% Note: Fiscal year 2018 was the first year of implementation, therefore only four years are shown. East Valley Water District Notes to the Required Supplementary Information Purpose of Schedules Year Ended June 30, 2022 71 Schedule of District’s Proportionate Share of the Net Pension Liability The schedule presents information on the District’s proportionate share of the net pension liability, the plans’ fiduciary net position and, when applicable, the State’s proportionate share of the net pension liability associated with the District. In the future, as data becomes available, 10 years of information will be presented. Schedule of District’s Contributions The schedule presents information on the District’s required contribution, the amounts actually contributed, and any excess or deficiency related to the required contribution. In the future, as data becomes available, 10 years of information will be presented. Schedule of Changes in Net OPEB Liability The schedule is intended to show the funded status of the District’s actuarially determined liability for postemployment benefits other than pensions. In the future, as data becomes available, 10 years of information will be presented. Schedule of OPEB Healthcare Contributions The schedule presents information on the District’s required contribution, the amounts actually contributed, and any excess or deficiency related to the required contribution. In the future, as data becomes available, 10 years of information will be presented. Pertinent valuation dates and methods and assumptions used to determine the OPEB liability and required contributions are as follows: Measurement Date June 30, 2021 Valuation Date June 30, 2021 Methods and Assumptions Used to Determine Contribution Rates: Actuarial Cost Method Entry Age Normal Amortization Method Level Percentage of Payroll Remaining Amortization Period 12 years Assets Valuation Method 5 Year Inflation 2.75% Salary Increases 2.75% Annually Plus Merit Increases Based on 2017 Experience Study Investement Rate of Return 6.50% 72 73 East Valley Water District History and Organization Year Ended June 30, 2022 74 Formation of the District The Board of Supervisors of San Bernardino County approved a petition in writing for the formation of the East Valley Water District (formerly East San Bernardino County Water District) under Division 12 of the Water Code of the State of California and ordered an election held January 12, 1954. The formation of the District was voted by the electors. The Board of Supervisors of San Bernardino County, by action on January 18, 1954, approved the formation of the District. Incorporation of the "East Valley Water District" was approved by the State of California on February 1, 1954. East Valley Water District Financing Authority The East Valley Water District Financing Authority (Authority) is a public body organized and existing under a Joint Exercise of Powers Agreement, and under the Constitution and laws of the State of California, between East Valley Water District and the California Municipal Finance Authority. The Authority was formed to assist in the financing and refinancing of capital improvement projects of the District for the use, benefit, and enjoyment of the public. Nature of Business The District has been engaged in the furnishing of water service and wastewater transmission services to its customers since inception. Location The District office is located at 31111 Greenspot Road, Highland, California. The office is situated within the District's boundaries which encompass an area of approximately 30.1 square miles within the County of San Bernardino, California. Directors Phillip R. Goodrich Chairman of the Board James Morales, Jr.Vice-Chairman of the Board David E. Smith Governing Board Member Ronald L. Coats Governing Board Member Chris Carrillo Governing Board Member East Valley Water District Phillip R. Goodrich President James Morales, Jr.Vice-President Michael Moore Secretary/Executive Director Brian W. Tompkins Director of Finance East Valley Water District Financing Authority Management Michael Moore General Manager/CEO Brian W. Tompkins Chief Financial Officer/Treasurer East Valley Water District District General Counsel Jean Cihigoyenetche JC Law Firm East Valley Water District East Valley Water District Combining Schedule of Net Position June 30, 2022 75 Water Wastewater Eliminations Total ASSETS Current Assets: Cash & Cash Equivalents 10,441,125$ 872,432$ -$ 11,313,557$ Investments 3,066,942 1,507,529 - 4,574,471 Accounts Receivable, Net 6,154,405 820,529 - 6,974,934 Interest Receivable 15,084 3,377 - 18,461 Other Receivables 1,994,056 - - 1,994,056 Due From Sewer Fund 12,488,658 - 12,488,658 - Due from Other Governments - 10,306,002 - 10,306,002 Inventory 937,818 6,721 - 944,539 Prepaid Expenses 236,212 34,285 - 270,497 Total Current Assets 35,334,300 13,550,875 12,488,658 36,396,517 Non-Current Assets: Restricted Cash & Cash Equivalents 5,519,041 5,441,642 - 10,960,683 Assessments Receivable 285,745 - - 285,745 Capital Assets not being Depreciated 17,015,207 173,562,139 - 190,577,346 Capital Assets, Net (Note 4)101,049,007 17,644,653 - 118,693,660 Total Non-Current Assets 123,869,000 196,648,434 - 320,517,434 Total Assets 159,203,300 210,199,309 12,488,658 356,913,951 DEFERRED OUTFLOWS OF RESOURCES Deferred Charge on Refunding 610,559 286,293 - 896,852 Deferred Outflows - Pensions 1,571,216 453,671 - 2,024,887 Deferred Outflows - OPEB 555,915 238,248 - 794,163 Total Deferred Outflows 2,737,690 978,212 - 3,715,902 Total Assets and Deferred Outflows of Resources 161,940,990$ 211,177,521$ 12,488,658$ 360,629,853$ (Continued) East Valley Water District Combining Schedule of Net Position – Continued June 30, 2022 76 Water Wastewater Eliminations Total LIABILITIES Current Liabilities: Accounts Payable & Accrued Expenses 5,189,794$ 94,138$ -$ 5,283,932$ Accrued Payroll & Benefits 609,394 163,384 - 772,778 Customer Service Deposits 1,390,220 - - 1,390,220 Construction Advances and Retentions 275,180 9,913,633 - 10,188,813 Accrued Interest Payable 238,560 24,947 - 263,507 Current Portion of Compensated Absences 495,871 108,251 - 604,122 Current Portion of Long-Term Debt 2,324,787 175,000 - 2,499,787 Due To Water Fund - 12,488,658 12,488,658 - Total Current Liabilities 10,523,806 22,968,011 12,488,658 21,003,159 Non-Current Liabilities: Compensated Absences, Less Current Portion 571,309 112,198 - 683,507 Net Pension Liability 5,094,004 1,563,685 - 6,657,689 Net OPEB Liability 1,303,313 558,562 - 1,861,875 Long-Term Debt, Less Current Portion 33,690,995 144,049,059 - 177,740,054 Total Non-Current Liabilities 40,659,621 146,283,504 - 186,943,125 Total Liabilities 51,183,427 169,251,515 12,488,658 207,946,284 DEFERRED INFLOWS OF RESOURCES Deferred Inflows - Refunding 1,181,143 - - 1,181,143 Deferred Inflows - Pensions 5,201,672 913,469 - 6,115,141 Deferred Inflows - OPEB 201,925 86,539 - 288,464 Total Deferred Inflows 6,584,740 1,000,008 - 7,584,748 Total Liabilities and Deferred Inflows of Resources 57,768,167 170,251,523 12,488,658 215,531,032 NET POSITION Net Investment in Capital Assets 82,129,530 34,949,541 - 117,079,071 Restricted for: Future Capital Expansion Projects 3,637,872 5,438,142 - 9,076,014 Unrestricted 18,405,421 538,315 - 18,943,736 Total Net Position 104,172,823$ 40,925,998$ -$ 145,098,821$ East Valley Water District Combining Schedule of Revenues, Expenses, and Changes in Net Position Year Ended June 30, 2022 77 Water Wastewater Eliminations Total OPERATING REVENUE Water Sales 18,472,876$ -$ -$ 18,472,876$ Wastewater Treatment Charges - 9,764,357 - 9,764,357 System Charges 9,192,297 4,828,526 - 14,020,823 Other Revenue 723,093 112,466 - 835,559 Total Operating Revenue 28,388,266 14,705,349 - 43,093,615 OPERATING EXPENSES Source of Supply: Salary & Benefits 764,709 - - 764,709 Contract Services 375,125 - - 375,125 Utilities 1,811,850 - - 1,811,850 Insurance 7,314 - - 7,314 Materials & Supplies 44,085 - - 44,085 Purchased Water 301,483 - - 301,483 Water Assessments 71,613 - - 71,613 Chemicals 109,440 - - 109,440 Professional Development 684 - 684 Taxes 28,959 - - 28,959 Total Source of Supply 3,515,262 - - 3,515,262 Pumping: Salary & Benefits 38,009 - - 38,009 Contract Services 58,641 - - 58,641 Utilities 646,029 - - 646,029 Materials & Supplies 14,164 - - 14,164 Total Pumping 756,843 - - 756,843 Water Treatment: Salary & Benefits 454,279 - - 454,279 Contract Services 171,347 - - 171,347 Utilities 203,512 - - 203,512 Materials & Supplies 38,742 - - 38,742 Chemicals 177,850 - - 177,850 Total Water Treatment 1,045,730 - - 1,045,730 Wastewater Treatment: Treatment Services - 9,084,061 - 9,084,061 Transmission & Distribution: Salary & Benefits 2,375,773 - - 2,375,773 Contract Services 449,747 - - 449,747 Materials & Supplies 699,307 - - 699,307 Chemicals 729 - - 729 Permits 5,670 - - 5,670 Tools 32,027 - - 32,027 Professional Development 75 - - 75 Total Transmission & Distribution 3,563,328$ -$ -$ 3,563,328$ (Continued) East Valley Water District Combining Schedule of Revenues, Expenses, and Changes in Net Position -Continued Year Ended June 30, 2022 78 Water Wastewater Eliminations Total OPERATING EXPENSES - Continued Wastewater Collection: Salary & Benefits -$ 433,506$ -$ 433,506$ Contract Services - 138,574 - 138,574 Materials & Supplies - 10,558 - 10,558 Tools - 4,490 - 4,490 Total Wastewater Collection - 587,128 - 587,128 Customer Accounts: Salary & Benefits 703,130 280,992 - 984,122 Contract Services 379,509 153,515 - 533,024 Utilities 27,763 13,869 - 41,632 Materials & Supplies 9,477 371 - 9,848 General Office Supplies 10,086 310 - 10,396 Tools 2,991 61 - 3,052 Printing & Publishing 1,290 553 - 1,843 Postage 78,870 39,719 - 118,589 Professional Development 12,287 5,115 - 17,402 Total Customer Accounts 1,225,403 494,505 - 1,719,908 General & Administrative: Salary & Benefits 6,823,098 1,560,601 - 8,383,699 Contract Services 2,158,892 442,968 - 2,601,860 Conservation Rebates 225,308 - - 225,308 Utilities 417,273 53,573 - 470,846 Insurance 614,024 153,506 - 767,530 Materials & Supplies 453,266 152,458 - 605,724 General Office Supplies 27,180 11,380 - 38,560 Legal Services 136,019 69,457 - 205,476 Permits 52,476 29,707 - 82,183 Memberships & Dues 96,916 29,485 - 126,401 Tools 22,742 3,449 - 26,191 Printing & Publishing 123,255 61,220 - 184,475 Professional Development 143,842 47,401 - 191,243 Rents & Leases 14,396 3,599 - 17,995 Total General & Administrative 11,308,687 2,618,804 - 13,927,491 OPERATING EXPENSES BEFORE DEPRECIATION 21,415,253 12,784,498 - 34,199,751 Depreciation 5,482,714 895,876 - 6,378,590 Total Operating Expenses 26,897,967 13,680,374 - 40,578,341 OPERATING INCOME (LOSS)1,490,299$ 1,024,975$ -$ 2,515,274$ (Continued) East Valley Water District Combining Schedule of Revenues, Expenses, and Changes in Net Position - Continued Year Ended June 30, 2022 79 Water Wastewater Eliminations Total NON-OPERATING REVENUES Investment Income 152,248$ 13,741$ -$ 165,989$ Gain on Disposal of Assets 807,425 235,137 1,042,562 Other Income 33,706 - - 33,706 Total Non-Operating Revenues 993,379 248,878 - 1,242,257 NON-OPERATING EXPENSES Interest Expense 1,020,436 274,787 - 1,295,223 Unrealized Investment Losses 208,617 94,857 303,474 Total Non-Operating Expenses 1,229,053 369,644 - 1,598,697 INCOME BEFORE CONTRIBUTIONS 1,254,625 904,209 - 2,158,834 CONTRIBUTIONS: Capacity Charges 983,303 1,739,645 - 2,722,948 Operating Grants 100,248 3,329 - 103,577 Total Contributions 1,083,551 1,742,974 - 2,826,525 CHANGE IN NET POSITION 2,338,176 2,647,183 - 4,985,359 TOTAL NET POSITION, BEGINNING 101,834,647 38,278,815 - 140,113,462 TOTAL NET POSITION, ENDING 104,172,823$ 40,925,998$ -$ 145,098,821$ 80 East Valley Water District Combining Schedule of Cash Flows Year Ended June 30, 2022 81 Water Wastewater Eliminations Total CASH FLOWS FROM OPERATING ACTIVITIES Cash Received from Customers 28,158,779$ 14,224,761$ -$ 42,383,540$ Cash Payments for Employees Services (9,584,253) (2,583,616) - (12,167,869) Cash Payments to Suppliers (12,235,070) (10,200,878) - (22,435,948) Cash from Other SourcesMisc Income / (Expense)(1,186,152) - - (1,186,152) Net Cash Provided by Operating Activities 5,153,304 1,440,267 - 6,593,571 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Assessments Received 23,081 - - 23,081 Proceeds from Sale of Capital Assets 2,448,816 931,143 - 3,379,959 Developer Fees Received 1,083,551 1,742,974 - 2,826,525 Reimbursements Received - 8,287,456 - 8,287,456 Proceeds/Draws from SRF Loan - 13,221,385 - 13,221,385 Proceeds from Issuance of Bonds - - - - Due To Water Fund - (3,730,214) 3,730,214 - Due From Sewer Fund 3,730,214 - (3,730,214) - Payments on Capital Debt (2,120,011) (170,000) - (2,290,011) Interest Paid on Capital Debt (1,268,525) (259,135) - (1,527,660) Acquisition of Capital Assets (5,924,371) (19,973,339) - (25,897,710) Net Cash Used for Capital and Related Financing Activities (2,027,245) 50,270 - (1,976,975) CASH FLOWS FROM INVESTING ACTIVITIES Interest Received from Investments 51,686 11,014 - 62,700 Acquisition of Investment Securities (1,860,198) (1,596,534) - (3,456,732) Proceeds from Sales of Investments 999,643 1,358,030 - 2,357,673 Net Cash Provided (Used) by Investing Activities (808,869) (227,490) - (1,036,359) Net (Decrease) Increase in Cash and Cash Equivalents 2,317,190 1,263,047 - 3,580,237 Cash and Equivalents, Beginning of Year 13,642,976 5,051,027 - 18,694,003 Cash and Equivalents, End of Year 15,960,166$ 6,314,074$ -$ 22,274,240$ RECONCILIATION TO STATEMENT OF NET POSITION Cash and Cash Equivalents 10,441,125$ 872,432$ -$ 11,313,557$ Restricted Cash and Cash Equivalents 5,519,041 5,441,642 10,960,683 Total Cash and Cash Equivalents 15,960,166$ 6,314,074$ -$ 22,274,240$ (Continued) East Valley Water District Combining Schedule of Cash Flows - Continued Year Ended June 30, 2022 82 Water Wastewater Eliminations Total Reconciliation of Operating Income (Loss) to Net Cash Provided by Operating Activities Operating Income (Loss)2,853,836$ 750,861$ -$ 3,604,697$ Adjustments to Reconcile Operating Income (Loss) to Net Cash Provided by Operating Activities: Depreciation 5,482,714 895,876 - 6,378,590 Miscellaneous Income/(Expense)126,699 - - 126,699 CIP Projects Expensed 494,039 220,304 - 714,343 Change in Assets and Liabilities: Customer Receivables (457,645) (480,588) - (938,233) Inventory (440,925) - - (440,925) Prepaids 95,385 21,522 - 116,907 Accounts Payable - Supplier (2,119,764) 66,695 - (2,053,069) Salaries & Benefits Payable 96,969 (8,798) - 88,171 Compensated absences 106,691 (25,605) - 81,086 Other Receivables (1,312,853) - - (1,312,853) Customer / Developer Deposits 228,158 - - 228,158 5,153,304$ 1,440,267$ -$ 6,593,571$ NON-CASH INVESTING, CAPITAL, AND NON-CAPITAL FINANCING ACTIVITIES: Fair Value Adjustments to Investments 208,616$ 92,130$ -$ 300,746$ Bond RefinanceLiabilities, Including Retainage -$ 2,079,355$ -$ 2,079,355$ Capital Assets Acquired by Assuming 83 84 Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2022 Table of Contents 85 Page No. Statistical Information Section Financial Trends .................................................................................................. 87-91 These schedules contain information to help the reader understand how the District’s financial performance and well-being have changed over time. Changes in Net Position by Component – Last Ten Fiscal Years .................................... 87-88 Operating Revenue by Source – Last Ten Fiscal Years ..................................................... 89 Water Operating Expenses – Last Ten Fiscal Years .......................................................... 90 Wastewater Operating Expenses – Last Ten Fiscal Years ................................................. 91 Revenue Capacity ................................................................................................ 92-98 These schedules contain information to help the reader assess the District’s most significant sources of revenue, water sales, meter charges, wastewater system charges, wastewater treatment charges, and other charges. Water Sales and Production – Last Ten Fiscal Years ........................................................ 92 Revenue Rates for Water – Last Ten Fiscal Years ........................................................ 93-94 Revenue Rates for Wastewater – Last Ten Fiscal Years ................................................ 95-96 Active Services by Type – Last Ten Fiscal Years .............................................................. 97 Principal Customers – Current Fiscal Year and Nine Years Ago.......................................... 98 Debt Capacity ................................................................................................... 99-100 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. Ratio of Outstanding Debt – Last Ten Fiscal Years ........................................................... 99 Debt Service Coverage – Last Ten Fiscal Years............................................................... 100 Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2022 Table of Contents 86 Page No. Statistical Information Section - Continued Demographic Information ..................................................................................... 101 These schedules offer demographic indicators to help the reader understand the environment within which the District’s financial activities take place. Demographic and Economic Statistics – Last Ten Calendar / Fiscal Years ......................... 101 Operating Information ................................................................................... 102-103 These schedules contain service and infrastructure data to help the reader understand how the information in the District’s financial report relates to the service provided by the District. Full-Time Equivalent Employees by Department – Last Ten Fiscal Years ........................... 102 Operating and Capacity Indicators for Water and Wastewater – Last Ten Fiscal Years ....... 103 EAST VALLEY WATER DISTRICT Changes in Net Position by Component Last Ten Fiscal Years 87 Year ended June 30, 2013 2014 2015 2016 2017 Change In Net Position Operating Revenue 31,513,194$ 32,620,577$ 30,743,445$ 33,024,082$ 37,448,549$ Operating Expenses 24,859,076 29,191,176 29,146,339 32,655,921 32,299,587 Operating Income (Loss)6,654,118 3,429,401 1,597,106 368,161 5,148,962 Non Operating Revenue (Expenses) Investment Income 55,310 49,846 100,830 146,874 69,237 Other Income 397,796 334,700 800,278 830,806 401,323 Interest Expense (1,445,981) (1,917,676) (1,980,062) (1,843,440) (1,776,684) Amortization (69,038) (99,688) - - - Gain (Loss) on Disposal of Assets - (606,085) - - - (1,061,913) (2,238,903) (1,078,954) (865,760) (1,306,124) Special Item Abandoned Projects - - (2,413,478) - (1,615,241) Hazard Mitigation - - - - - Capital Contributions 832,515 6,369,890 596,940 732,642 2,446,118 Change in Net Position 6,424,720 7,560,388 (1,298,386) 235,043 4,673,715 Prior Period Adjustment (537,099) - (7,956,231) - - Cumulative Effect of Change in Accounting Principles - - - - - Net Position - Beginning 108,621,485 114,509,106 122,069,494 112,814,877 113,049,920 Net Position - Ending 114,509,106$ 122,069,494$ 112,814,877$ 113,049,920$ 117,723,635$ Net Position By Component Net Investment in Capital Assets 95,258,164 101,757,787 98,091,685 103,222,160 104,659,796 Restricted 920,554 2,274,769 2,322,238 2,276,695 2,847,924 Unrestricted 18,330,388 18,036,938 12,400,954 7,551,065 10,215,915 114,509,106$ 122,069,494$ 112,814,877$ 113,049,920$ 117,723,635$ (Continued) SOURCE: East Valley Water District - Finance Department EAST VALLEY WATER DISTRICT Changes in Net Position by Component - Continued Last Ten Fiscal Years 88 Year ended June 30,Year ended June 30, 2018 2019 2020 2021 2022 Change In Net Position Operating Revenue 40,291,125$ 39,309,298$ 39,812,912$ 42,236,814$ 43,093,615$ Operating Expenses 35,980,099 35,898,073 36,249,650 36,496,064 40,578,341 Operating Income (Loss)4,311,026 3,411,225 3,563,262 5,740,750 2,515,274 Non Operating Revenue (Expenses) Investment Income 221,359 571,549 524,675 167,499 165,989 Other Income 258,560 307,247 121,983 43,744 (269,768) Interest Expense (1,777,852) (1,684,986) (1,579,104) (1,387,113) (1,295,223) Amortization - - - Gain (Loss) on Disposal of Assets - 705,285 (1,579,104) (1,236,600) 1,042,562 (1,297,933) (100,905) (2,511,550) (2,412,470) (356,440) Special Item Abandoned Projects - - - - Hazard Mitigation (155,177) - - - Capital Contributions 523,918 611,673 9,961,522 877,185 2,826,525 Change in Net Position 3,381,834 3,921,993 11,013,234 4,205,465 4,985,359 Prior Period Adjustment - - - - Cumulative Effect of Change in Accounting Principles (1,711,803) - - - Net Position - Beginning 117,723,635 119,393,666 123,315,659 135,907,997 140,113,462 Net Position - Ending 119,393,666$ 123,315,659$ 134,328,893$ 140,113,462$ 145,098,821$ Net Position By Component Net Investment in Capital Assets 103,210,762 95,468,735 106,708,555 114,767,362 117,079,071 Restricted 3,334,940 3,460,835 6,659,487 6,435,505 9,076,014 Unrestricted 12,847,964 24,386,089 22,539,955 18,910,595 18,943,736 119,393,666$ 123,315,659$ 135,907,997$ 140,113,462$ 145,098,821$ SOURCE: East Valley Water District - Finance Department EAST VALLEY WATER DISTRICT Operating Revenue by Source Last Ten Fiscal Years 89 Wastewater Wastewater Total Year Ended Water Meter System Treatment Other Operating June 30,Sales Charges Charges Charges Charges Revenue 2013 14,780,448 4,555,414 4,473,032 6,998,487 705,813 31,513,194 2014 15,351,609 4,704,036 4,649,212 7,197,418 718,302 32,620,577 2015 13,505,159 4,874,581 4,531,355 6,907,828 924,522 30,743,445 2016 11,927,523 8,063,077 4,286,594 7,165,655 1,581,233 33,024,082 2017 14,556,339 8,944,652 4,703,439 8,128,030 1,116,089 37,448,549 2018 17,063,891 8,999,756 4,668,923 8,697,671 860,884 40,291,125 2019 15,746,654 9,009,881 4,643,732 8,592,950 1,316,081 39,309,298 2020 16,902,370 9,023,267 4,647,347 8,496,012 743,916 39,812,912 2021 19,305,631 9,217,003 4,705,683 8,456,508 551,989 42,236,814 2022 18,472,876 9,192,297 4,828,526 9,764,357 835,559 43,093,615 SOURCE: East Valley Water District - Finance Department - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 50,000,000 Other Charges Wastewater Treatement Charges Wastewater System Charges Meter Charges Water Sales EAST VALLEY WATER DISTRICT Water Operating Expenses Last Ten Fiscal Years 90 Trans Customer Accts,Total Year Ended Source of Water &General, &Water Oper June 30,Supply Pumping Treatment Distribution Admin Expenses 2013 672,101 2,683,340 874,448 1,469,243 5,323,101 11,022,233 2014 2,875,518 992,555 1,516,412 1,437,831 6,397,534 13,219,850 2015 3,025,714 615,147 743,099 2,120,374 6,785,909 13,290,243 2016 2,442,061 696,432 799,947 2,327,185 8,782,957 15,048,582 2017 3,401,062 646,940 750,052 2,222,953 7,696,211 14,717,218 2018 2,595,071 683,296 969,460 2,538,910 9,347,724 16,134,461 2019 2,975,348 585,585 840,623 2,819,288 9,393,555 16,614,399 2020 3,263,403 457,846 891,127 3,460,642 9,414,762 17,487,780 2021 3,617,788 596,586 1,008,129 3,253,175 9,208,176 17,683,854 2022 3,515,262 756,843 1,045,730 3,563,328 12,534,090 21,415,253 SOURCES: East Valley Water District - Customer Service, Finance, and Operations Departments - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 Source of Supply Pumping Water Treatment Trans & Distribution Customer Accts, General, & Admin EAST VALLEY WATER DISTRICT Wastewater Operating Expenses Last Ten Fiscal Years 91 Customer Accts,Total Year Ended Wastewater Wastewater General, &Wastewater Oper June 30,Collections Treatment Admin Expenses 2013 382,197 6,998,487 2,758,848 10,139,532 2014 312,193 7,197,418 2,953,997 10,463,608 2015 448,399 6,907,828 3,356,250 10,712,477 2016 407,913 7,302,389 2,752,779 10,463,081 2017 425,944 8,128,030 2,510,920 11,064,894 2018 753,000 8,697,671 3,367,091 12,817,762 2019 700,507 8,592,950 3,309,983 12,603,440 2020 767,448 8,496,012 2,922,949 12,186,409 2021 722,680 8,456,508 3,140,650 12,319,838 2022 587,128 9,084,061 3,113,309 12,784,498 SOURCES: East Valley Water District - Customer Service and Finance Departments - 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 Customer Accts, General, & Admin Wastewater Treatment Wastewater Collections EAST VALLEY WATER DISTRICT Water Sales and Production Last Ten Fiscal Years 92 Year Ended Water Sales Water Produced June 30,(Acre Feet)(Acre Feet) 2013 20,036 22,308 2014 19,910 20,665 2015 17,431 18,494 2016 14,999 16,614 2017 16,223 17,922 2018 18,361 18,997 2019 16,167 17,397 2020 17,037 17,596 2021 18,429 18,784 2022 17,998 18,789 SOURCES: East Valley Water District - Finance and Operations Departments 0 5,000 10,000 15,000 20,000 25,000 Water Produced Water Sales EAST VALLEY WATER DISTRICT Revenue Rates for Water Last Ten Fiscal Years 93 Year ended June 30, 2013 2014 2015(1)2016 2017 Tier 1-$1.45 Tier 1-$1.45 Tier 1-$1.63 Tier 2-$2.07 Tier 2-$2.07 Tier 2-$2.32 Tier 3-$2.89 Tier 3-$2.89 Tier 3-$3.24 Year ended June 30,Year ended June 30, 2013 2014 2015 2016 2017 13.71$ 13.71$ 20.96$ 20.96$ 23.06$ 13.71 13.71 26.61 26.61 29.27 20.87 20.87 37.92 37.92 41.71 38.60 38.60 66.19 66.19 72.81 88.48 88.48 100.12 100.12 110.13 163.25 163.25 207.54 207.54 228.30 270.06 270.06 365.85 365.85 402.44 537.09 537.09 744.67 744.67 819.14 857.52 857.52 1,366.62 1,366.62 1,503.28 (Continued) NOTES: HCF = Hundred Cubic Feet = 748 gallons (1)On June 1, 2015 the District adopted Water Budget Based Rates. (2)On January 1, 2020 the District adopted New Water Rates. (3)On January 1, 2022 the District adopted New Water Rates. SOURCE: East Valley Water District - Water and Wastewater Rate Resolutions Meter Size Charge per HCF 1.77$ 1.77$ Water Monthly System Charges (inches) 5/8 3/4 8 3 4 6 1 1 1/2 2 Water Consumption Rates EAST VALLEY WATER DISTRICT Revenue Rates for Water - Continued Last Ten Fiscal Years 94 Year ended June 30,Year ended June 30, 2018 2019 2020(2)2021 2022(3) Tier 1-$1.73 Tier 1-$1.73 Tier 1-$1.83 Tier 1-$1.83 Tier 1-$1.98 Tier 2-$2.46 Tier 2-$2.46 Tier 2-$2.61 Tier 2-$2.61 Tier 2-$2.54 Tier 3-$3.44 Tier 3-$3.44 Tier 3-$3.64 Tier 3-$3.64 Tier 3-$3.93 Year ended June 30, 2018 2019 2020 2021 2022(3) 23.06$ 23.06$ 23.06$ 23.06$ 24.01$ 29.27 29.27 29.27 29.27 30.85 41.71 41.71 41.71 41.71 44.52 72.81 72.81 72.81 72.81 78.69 110.13 110.13 110.13 110.13 119.70 228.30 228.30 228.30 228.30 229.05 402.44 402.44 402.44 402.44 352.07 819.14 819.14 819.14 819.14 693.79 1,503.28 1,503.28 1,503.28 1,503.28 1,923.98 NOTES: HCF = Hundred Cubic Feet = 748 gallons (1)On June 1, 2015 the District adopted Water Budget Based Rates. (2)On January 1, 2020 the District adopted New Water Rates. (3)On January 1, 2022 the District adopted New Water Rates. SOURCE: East Valley Water District - Water and Wastewater Rate Resolutions Charge per HCF Meter Size Water Monthly System Charges (inches) 5/8 3/4 8 3 4 6 1 1 1/2 2 Water Consumption Rates EAST VALLEY WATER DISTRICT Revenue Rates for Wastewater Last Ten Fiscal Years 95 Year ended June 30, 2013 2014 2015(1)2016 2017 Single-Family Residential (1 to 3 units) Flat Monthly Charge (per unit)15.36$ 15.36$ 15.36$ 15.36$ 15.36$ Multi-Family Residential (4 or more units) Flat Monthly Charge (per unit)15.36 15.36$ 15.36$ 15.36$ 15.36 Commercial Non-Residential Flat Monthly Charge 3.90 3.90 3.90 3.90 3.90 plus, Charge per HCF 0.55 0.55 0.55 0.55 0.55 Year ended June 30, 2013 2014 2015(1)2016 2017 Residential (Flat Monthly Charge) Flat Monthly Charge Residential (1 unit)18.50$ 18.50$ 18.50$ 19.18$ 20.85$ Residential (2 units)N/A N/A N/A N/A N/A Residential (3 units)N/A N/A N/A N/A N/A Multi-Family (2 units)37.00 37.00 37.00 38.37 41.72 Multi-Family (3 units)55.50 55.50 55.50 57.55 62.58 Multi-Family (4 or more units)N/A N/A N/A N/A N/A Commercial Multi-Family (4+ units)2.40 2.40 2.40 1.71 1.90 Non-Residential 2.40 2.40 2.40 3.18 3.42 plus, Charge per HCF: Multi-Family (4+ units)1.25 1.25 1.25 1.36 1.48 Retail 2.10 2.10 2.10 2.28 2.47 Restaurants/Lounges 2.70 2.70 2.70 2.93 3.18 Schools/Churches 1.10 1.10 1.10 1.19 1.29 Governments/Municipal 1.50 1.50 1.50 1.63 1.77 Laundromats 1.50 1.50 1.50 1.63 1.77 Dry Cleaners 2.10 2.10 2.10 2.28 2.47 Convalescent Homes 1.35 1.35 1.35 1.46 1.58 Auto Repair/Svc Stations 1.30 1.30 1.30 1.41 1.53 Car Wash 1.30 1.30 1.30 1.41 1.53 Patton State Hospital N/A N/A N/A N/A N/A Hotels 2.70 2.70 2.70 2.93 3.18 Ofc Bldgs/Motels 1.50 1.50 1.50 1.63 1.77 NOTES:(Continued) HCF = Hundred Cubic Feet = 748 gallons (1)On June 1, 2015 the District adopted Water Budget Based Rates. (2) SOURCE: East Valley Water District - Water and Wastewater Rate Resolutions Starting in May 2022, the District transitioned from rates established by the City of San Bernardino to rates adopted as the result of a wastewater Cost of Service Analysis for the District's Sterling Natural Resource Center Water Reclamation Plant. Wastewater Maintenance Charges Wastewater Treatment Charges EAST VALLEY WATER DISTRICT Revenue Rates for Wastewater - Continued Last Ten Fiscal Years 96 Year ended June 30,Year ended June 30, 2018 2019 2020 2021 2022(2) Single-Family Residential (1 to 3 units) Flat Monthly Charge (per unit)15.36$ 15.36$ 15.36$ 15.36$ 14.25$ Multi-Family Residential (4 or more units) Flat Monthly Charge (per unit)N/A N/A N/A N/A 13.46$ Commercial Non-Residential Flat Monthly Charge 3.90 3.90 3.90 3.90 10.33 plus, Charge per HCF 0.55 0.55 0.55 0.55 - Year ended June 30,Year ended June 30, 2018 2019 2020 2021 2022(2) Residential (Flat Monthly Charge) Flat Monthly Charge Residential (1 unit)21.55$ 21.55$ 21.55$ 21.55$ 23.37$ Residential (2 units)N/A N/A N/A N/A 23.37 Residential (3 units)N/A N/A N/A N/A 23.37 Multi-Family (2 units)43.10 43.10 43.10 43.10 20.86 Multi-Family (3 units)64.64 64.64 64.64 64.64 20.86 Multi-Family (4 or more units)N/A N/A N/A N/A 20.86 Commercial Multi-Family (4+ units)1.97 1.97 1.97 1.97 N/A Non-Residential 3.52 3.52 3.52 3.52 10.83 plus, Charge per HCF: Multi-Family (4 + units)1.53 1.53 1.53 1.53 N/A Retail 2.55 2.55 2.55 2.55 1.31 Restaurants/Lounges 3.28 3.28 3.28 3.28 1.31 Schools/Churches 1.33 1.33 1.33 1.33 1.31 Governments/Municipal 1.83 1.83 1.83 1.83 1.31 Laundromats 1.83 1.83 1.83 1.83 1.99 Dry Cleaners 2.55 2.55 2.55 2.55 1.99 Convalescent Homes 1.63 1.63 1.63 1.63 1.99 Auto Repair/Svc Stations 1.58 1.58 1.58 1.58 1.99 Car Wash 1.58 1.58 1.58 1.58 1.99 Patton State Hospital N/A N/A N/A N/A 2.36 Hotels 3.28 3.28 3.28 3.28 3.88 Ofc Bldgs/Motels 1.83 1.83 1.83 1.83 3.88 NOTES: HCF = Hundred Cubic Feet = 748 gallons (1)On June 1, 2015 the District adopted Water Budget Based Rates. (2) SOURCE: East Valley Water District - Water and Wastewater Rate Resolutions Wastewater Treatment Charges Starting in May 2022, the District transitioned from rates established by the City of San Bernardino to rates adopted as the result of a wastewater Cost of Service Analysis for the District's Sterling Natural Resource Center Water Reclamation Plant. Wastewater Maintenance Charges EAST VALLEY WATER DISTRICT Active Services by Type Last Ten Fiscal Years 97 Year Ended Residential Multi-Family Total June 30,(1 to 3 units)(4+ units)Commercial Irrigation Fire Svcs Service 2013 18,584 497 1,268 313 1,321 21,983 2014 18,584 497 1,268 313 1,321 21,983 2015 18,584 497 1,268 313 1,321 21,983 2016 19,500 463 949 275 1,330 22,517 2017 19,526 463 988 275 1,339 22,591 2018 19,526 463 988 275 361 21,613 2019 19,883 474 681 322 252 21,612 2020 19,526 463 988 275 255 21,507 2021 19,526 463 988 275 255 21,507 2022 19,853 463 988 275 255 21,834 SOURCES: East Valley Water District - Customer Service and Finance Departments 0 5,000 10,000 15,000 20,000 25,000 Residential Multi-Family Commercial Irrigation Fire Svcs EAST VALLEY WATER DISTRICT Principal Customers Current Fiscal Year and Nine Years Ago 98 Water Percentage Water Percentage Consumed of Total Consumed of Total Customer (AF)Rank (%)(AF)Rank (%) San Bernardino City Unified School District 649 1 3.45%667 1 2.99% Patton State Hospital 406 2 2.16%451 2 2.02% San Manuel Mission Indians 390 3 2.08%270 5 1.21% City of Highland 348 4 1.85%313 4 1.40% San Manuel Indian Bingo & Casino 286 5 1.52%220 6 0.99% East Highlands Ranch 259 6 1.38%318 3 1.43% Village Lakes Homeowners Association 183 7 0.97%- Tuscany Apartment Homes 148 8 0.79%- Stubblefield Mobile Home Parks & Offices 131 9 0.70%170 7 0.76% Valencia Lea Mobile Home Park 125 10 0.67%136 8 0.61% City of San Bernardino 111 9 0.50% Woodman Realty Inc 103 10 0.46% Total - Top 10 2,925 15.57%2,759 12.37% Total - Water Produced 18,789 100.00%22,308 100.00% 20132022 EAST VALLEY WATER DISTRICT Ratio of Outstanding Debt Last Ten Fiscal Years 99 Fiscal Year Revenue Bonds DWR Loans Capital Lease and Loan Certificates of Participation Installment Note Outstanding Debt $ Per Capita As a Share of Personal Income 2013 43,400,000 7,101,964 - - - 50,501,964 540 1.69% 2014 42,195,000 7,091,964 3,998,560 - - 53,285,524 561 1.67% 2015 40,930,000 7,071,964 3,671,849 - - 51,673,813 508 1.43% 2016 39,615,000 6,818,565 3,299,108 - - 49,732,673 476 1.30% 2017 38,235,000 6,565,166 7,278,478 - - 52,078,644 510 1.36% 2018 36,800,000 6,721,695 6,392,308 - - 49,914,003 489 1.26% 2019 35,300,000 31,947,551 5,131,238 - - 72,378,789 710 1.72% 2020 33,720,000 69,565,404 4,295,104 - - 107,580,508 1,044 * 2021 30,500,000 132,399,838 3,449,724 - - 166,349,563 1,615 * 2022 29,330,000 145,368,047 2,582,891 - - 177,280,938 1,705 * Total Outstanding Debt 2020A Refunding Bonds 2020B Refunding Bonds SBVMWD Loan Plant 134 AVAD Construction EFAD Construction SNRC Construction U.S. Bank Lease Purchase Total NOTE: ** This data was not developed in the format required for this fiscal year. SOURCE: East Valley Water District - Finance Department $0 $20,000,000 $40,000,000 $60,000,000 $80,000,000 $100,000,000 $120,000,000 $140,000,000 $160,000,000 $180,000,000 $200,000,000 Revenue Bonds DWR Loans Capital Lease and Loan Certificates of Participation Installment Note EAST VALLEY WATER DISTRICT Debt Service Coverage Last Ten Fiscal Years 100 Gross Operating Net Available Revenue(1)Expenses(2)Revenue Principal(3)Interest Total 2013 20,225,013$ 11,022,233$ 9,202,780$ 1,095,000$ 1,382,013$ 2,477,013$ 3.72 % 2014 27,397,559 13,219,850 14,177,709 1,167,718 1,840,671 3,008,389 4.71 2015 20,662,750 12,915,690 7,747,060 1,546,490 1,813,348 3,359,838 2.31 2016 22,543,107 15,048,582 7,494,525 1,851,139 1,718,658 3,569,797 2.10 2017 25,257,709 14,717,219 10,540,490 1,926,956 1,653,322 3,580,278 2.94 2018 27,537,072 16,134,461 11,402,611 2,479,570 1,584,820 4,064,390 2.81 2019 27,071,082 16,614,399 10,456,683 2,904,466 1,593,181 4,497,647 2.32 2020 27,466,707 17,487,780 9,978,927 2,564,310 1,456,842 4,021,152 2.48 2021 29,738,333 17,638,854 12,099,479 4,703,778 1,104,438 5,808,216 2.08 2022 30,465,196 21,415,253 9,049,943 4,703,778 1,104,438 5,808,216 1.56 Gross Operating Net Available Revenue(1)Expenses(2)Revenue Principal Interest Total 2013 11,600,800$ 10,139,532$ 1,461,268$ 80,000$ 35,100$ $ 115,100 12.70 % 2014 11,974,164 10,463,608 1,510,556 85,000 184,621 269,621 5.60 2015 11,578,742 10,606,751 971,991 85,000 229,725 314,725 3.09 2016 12,095,372 10,463,081 1,632,291 90,000 225,775 315,775 5.17 2017 13,134,564 11,064,894 2,069,670 95,000 221,625 316,625 6.54 2018 13,758,976 12,817,762 941,214 95,000 217,350 312,350 3.01 2019 14,433,970 12,603,440 1,830,530 100,000 212,475 312,475 5.86 2020 22,954,385 12,186,049 10,768,336 105,000 207,350 312,350 34.48 2021 13,586,909 12,319,838 1,267,071 110,000 158,476 268,476 4.72 2022 16,697,201 12,784,498 3,912,703 110,000 158,476 268,476 14.57 NOTES: (1) (2)Operating expenses, less depreciation, for the utility fund. (3)Excludes Debt Service for Assessment Districts' Arroyo Verde and Eastwood Farms. SOURCE: East Valley Water District - Finance Department Year Ended Gross revenue includes all operating revenue, interest income, other non-operating revenue and connection fees from the utility fund. Coverage Debt Service June 30, Wastewater Department Coverage Year Ended June 30, Debt Service Water Department EAST VALLEY WATER DISTRICT Demographics and Economic Statistics Last Ten Calendar / Fiscal Years 101 Personal Personal Income Income District Unemployment Population (thousands Per Capita Population(3)(4)Rate(1)(3)(2)+of dollars)(2)+(dollars)(2)+ 2013 93,500 10.6%2,079,963 66,581,008 32,011 2014 95,000 8.9%2,095,533 70,425,945 33,608 2015 101,733 7.2%2,110,852 74,773,589 35,423 2016 104,457 6.0%2,126,539 77,868,801 36,618 2017 102,208 5.5%2,144,961 80,514,585 37,537 2018 102,000 4.4%2,160,049 83,915,091 38,849 2019 102,000 4.0%2,170,992 89,559,909 41,253 2020 103,000 6.4%2,182,740 99,313,293 45,499 2021 103,000 9.0%2,194,710 108,623,799 49,493 2022 104,000 5.4%*** NOTES: +This data was revised in 2021(2) *This data was not developed in the format required for this fiscal year. SOURCES: (1)U.S. Department of Labor, Bureau of Labor Statistics (BLS) Census Bureau midyear population estimates. (2)Bureau of Economic Analysis (BEA) Computed using midyear population estimates. (3)Fiscal Year ends on June 30 of the year that is shown. (4)East Valley Water District - Finance Department June 30, County of San Bernardino Year Ended EAST VALLEY WATER DISTRICT Full-Time Equivalent Employees by Department Last Ten Fiscal Years 102 District Engineering &Water Administration Maintenance Operations Reclamation(1)Total 25 27 11 0 63 25.5 29 11 0 65.5* 27.5 28.5 11 0 67* 27 28 13 0 68* 27 29 12 0 68* 26.5 29 13 0 68.5* 27.5 32 11 0 70.5* 26 30 11 0 67 25 30 11 0 66 26 30 11 9 76 NOTES: *Includes Part-Time Employees (PTEs) (1)Water Reclamation program started in FY 2021-22 SOURCES: East Valley Water District - Finance and Human Resources Departments 2020 2021 2022 2018 2013 2014 2015 2016 2017 2019 Year Ended June 30, 0 10 20 30 40 50 60 70 80 District Administration Engineering & Maintenance Operations Water Reclamation EAST VALLEY WATER DISTRICT Operating and Capacity Indicators for Water and Wastewater Last Ten Fiscal Years 103 Annual Average Miles of Number of Production Production Water Main Fire Hydrants (MG)(MGD) 2013 303 2,915 6,529 18 2014 297 2,976 6,488 18 2015 316 3,005 5,680 16 2016 316 3,005 4,887 13 2017 316 3,005 5,286 14 2018 300 3,018 5,983 16 2019 300 3,025 5,268 14 2020 300 3,025 5,552 15 2021 300 3,029 6,121 17 2022 300 3,043 6,122 17 Annual Daily Miles of Service Sewerage Sewerage Wastewater Connections (MG)(MGD) 2013 224 19,502 2,285.06 6.26 2014 223 19,504 2,595.08 7.11 2015 224 19,544 2,271.96 6.22 2016 224 19,572 2,167.71 5.94 2017 260 20,290 2,175.40 5.96 2018 225 20,581 2,149.85 5.89 2019 214 20,563 2,091.45 5.73 2020 214 19,679 2,220.61 6.08 2021 214 19,686 2,220.61 6.08 2022 220 19,766 2,448.97 6.71 SOURCE: East Valley Water District - Engineering and Finance Departments Water System Wastewater System Year Ended June 30, Year Ended June 30, 104 EAST VALLEY WATER DISTRICT Capacity Charge Funds Year Ended June 30, 2022 105 Capacity Charge Funds Government Code Section 66013 requires local agencies that collect capacity charges to deposit and account for these fees in a separate capital facilities fund. In addition, local agencies are required to annual provide the information in this report to the public upon request. Government Code Section 66013 (b) (3) defines "Capacity charge" means a charge for public facilities at the time the charge is imposed or charges for new public facilities to be acquired or constructed in the future that are of proportional benefit to the person or property being charged, including supply or capacity contracts for rights or entitlements, real property interests, and entitlements and other rights of the local agency involving capital expense related to its use of the use of existing or new public facilities. " Government Code Section 66013 (d) outlines the reporting requirements on the capital facilities funds and expenditures. Government Code Section 66013 (f) (2) exempts capacity charges that are used to pay existing debt service from the reporting requirements of Section 66013 (d). Two of the District's capacity charges are used to pay existing debt service; therefore, they are exempt from the reporting requirements. For the purpose of enhancing transparency, the District has provided the reporting information on its capacity charges that are exempt from Section 66013 (d). The District has the following capacity charge funds: Water Capacity Fee Fund. This fund collects System Capacity Charges for new water service connections to pay for proportionate shares of the District equipment replacements and facility improvements. Wastewater Capacity Fee Fund. This fund collects a fee for the capacity used by new wastewater connections and the funds are used to pay for equipment replacements and facility improvements. EAST VALLEY WATER DISTRICT Capacity Charge Funds Year Ended June 30, 2022 106 A summary of changes in Water Fund Capacity Fees collected for the year ended June 30, 2022 is as follows: Beginning of End of Categories Year Contributions Usage Year Storage 162,507$ $ 102,831 $ - $ 265,338 Treatment 813,702 31,463 - 845,165 Supply 436,204 46,637 - 482,841 Trans & Distribution 898,883 424,511 - 1,323,394 General 161,385 27,895 - 189,280 East Treatment Plant 104,193 349,966 - 454,159 2,576,874$ 983,303$ -$ 3,560,177$ A summary of Projects Funded by Capacity Fees for the year ended June 30, 2022: Categories CIP Project* FY 2021-22 Expended % Funded by Capacity Total Capacity Fees Usage Storage -$ 0%-$ Treatment Supply Trans & Distribution General New Treatment Plant -$ -$ Note: * The District did not have any CIP projects utilizing Capacity Fee funds for the year ended June 30, 2022. EAST VALLEY WATER DISTRICT Capacity Charge Funds Year Ended June 30, 2022 107 A summary of changes in Wastewater Fund Capacity Fees collected for the year ended June 30, 2022 is as follows: Beginning of End of Categories Year Contributions Usage Year Collection $ 1,516,891 $ 305,126 $ - $ 1,822,017 General 236,975 44,413 - 281,388 Greenspot Main 56,115 343,329 - 399,444 5th Street Main 22,303 136,457 - 158,760 Lynwood Main 5,604 34,287 - 39,891 Treatment 1,860,609 876,033 - 2,736,642 3,698,497$ 1,739,645$ -$ 5,438,142$ A summary Project Funded by Capacity Fees for the year ended June 30, 2022: Categories CIP Project FY 2021-22 Expended % Funded by Capacity Total Capacity Fees Usage Collection -$ 0%-$ Transmission - Recharge - Operations - Treatment - -$ -$ Agenda Item #4b December 14, 20221 Meeting Date: December 14, 2022 Agenda Item #4b Discussion Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Plant 108 Reservoir Rehabilitation Project Change Order No. 3 RECOMMENDATION That the Board of Directors authorize the General Manager/CEO to execute Change Order No. 3 to Crosno Construction Inc. for an amount up to $370,000 for additional services needed for extensive structural repairs to the Plant 108 Reservoir. BACKGROUND / ANALYSIS The Engineering & Operations Committee recommended, at their November 28, 2022 meeting, that the Board of Directors authorize the General Manager/CEO to execute Change Order No. 3 to Crosno Construction, Inc. A Task Order was authorized to Crosno Construction, Inc. (Contractor) in December 2020 to clean, recoat and repair the coating system for the Plant 108 Reservoir (Project). In April 2021, the Contractor was authorized Change Order No. 1 to perform additional sand blasting to better assess the condition of structural elements. The Project was subsequently deferred due to the required repairs being more extensive than originally anticipated. The Contractor agreed to defer the task order until a future date with Change Order No. 2. The Project was re-budgeted for fiscal year 2022-2023 for $1,200,000. The tank was taken out of service and the Contractor re-initiated the Project on October 26, 2022. Additional repair work is required to replace 26 deflected full-length rafters, 26 jack rafters, and 52 lateral braces. The damage to the rafters is thought to have been caused by movement from an earthquake. The cost of this additional work to extend the useful life of the tank will be approximately $370,000. The tank was taken off-line during the winter months when water demand is lower. The structural repairs will be performed through mid-January, followed by sand blasting to remove the old interior coating system through February. Re-coating activities will take place in March and April, and the tank will be put back into service near the end of April. Once rehabilitated, the tank will provide reliable water storage until the next rehabilitation cycle in 15 to 20 years. Agenda Item #4b December 14, 20222 Meeting Date: December 14, 2022 Agenda Item #4b Discussion Item AGENCY GOALS AND OBJECTIVES IV - Promote Planning, Maintenance and Preservation of District Resources A. Develop Projects and Programs to Ensure Safe and Reliable Services C. Dedicate Efforts Toward System Maintenance and Modernization REVIEW BY OTHERS This agenda item has been reviewed by the executive management team. FISCAL IMPACT The proposed Change Order No. 3 of up to $370,000 is within the authorized budget for fiscal year 2022-2023 for Reservoir Rehabilitation. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Jeff Noelte Director of Engineering and Operations ATTACHMENTS Power-Point Presentation Jeff Noelte Plant 108 Reservoir Rehabilitation Project Update December 14, 2022 2 Plant 108 Overview Plant 108 Reservoir Plant 108 Booster Station Crest View Ln. Hi l l c r e s t C t . Fa i r w o o d L n . •2.0 MG reservoir •Constructed in 1980 •Rehabilitated in 2000 •Inspected in 2019 •Request for Letter Proposal issued May 2020 •Task Order issued to contractor December 2020 •Change Order No. 1 issued April 2021 for inspection spot blasting •Determined by Design Engineer after tank was drained •Construction halted until November 2021 •Spot blasting revealed extensive structural repairs required •Time constraint in getting reservoir operational prior to peak demand season •Change Order No. 2 extended Period of Performance •Construction delayed until November 2022 to accommodate other District project priorities •Term extended to May 2023 •Proposed Change Order No. 3 for addition of services for extensive structural repairs 3 PROJECT HISTORY •Original Bid items •Protective coating on interior surfaces •Wash down and spot painting of exterior •New cathodic protection system •Removal and replacement of center vent screen and davit arm •Removal of liquid level indicator •Addition, replacement, and modification of items to meet current safety codes •Disinfection of interior of reservoir •Additional Items •Full-length rafter, jack-rafter, lateral brace, and nut and bolt replacement •Corrosion removal and grinding •Patch plating 4 SCOPE OF WORK 5 Additional Structural Repairs Deflected Roof Rafters Roof Support Plate Nuts and bolts completed corroded away Thinning and sharp edges along lower flanges of rafters 6 Construction Progress Access door cut in tank shell New rafters being shop coated New rafters being installed DISCUSSION Agenda Item #4c December 14, 20221 Meeting Date: December 14, 2022 Agenda Item #4c Discussion Item 7 2 4 Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider approval of Master Services Agreement with Krieger & Stewart for Water Main Seismic Retrofit Project RECOMMENDATION That the Board of Directors authorize the General Manager/CEO to execute a task order to the Master Services Agreement with Krieger & Stewart to provide Engineering Support Services for the Water Main Seismic Retrofit Project for a not to exceed amount of $1,184,000 plus a fifteen percent (15%) contingency. BACKGROUND / ANALYSIS The East Valley Water District (District) maintains over 500 miles of water mains throughout the service area. Some of the pipe is over 70 years old and is reaching the end of its’ useful life. The District prioritizes pipe replacements in the capital improvement program to maintain water service. Some of these older pipelines are in high risk seismic areas that may cause large-scale customer outages during an earthquake. The proposed consulting agreement will provide design and engineering support during construction to replace approximately 6.5 miles of water mains known as the Water Main Seismic Retrofit Project. The State of California has a grant program to assist qualified water agencies to replace water mains in high-risk areas. The Hazard Mitigation Grant Program (HMGP) funding is supported by the Federal Emergency Management Agency (FEMA) to support projects like the Water Main Seismic Retrofit Project. The District applied for and was awarded a Hazard Mitigation Grant to develop design documents to replace approximately 6.5 miles of water mains to reduce the risk of water main failures due to an earthquake. The grant will provide 75% of the funding to support the engineering and design which is $888,000 with a cost share requirement from the District of 25% ($296,000). The District solicited proposals from five pre-qualified consulting engineers on October 11, 2022 to provide design and associated engineering services to replace the approximate 6.5 miles of water mains identified in the Hazard Mitigation Grant. Two proposals were received. A selection committee reviewed the proposals and found both proposals to be of high quality. Krieger & Stewart was selected as the best value to the District for this work. Krieger & Stewart has a team with extensive experience with similar projects, and has successfully performed pump station design work for the District in the past. Furthermore, Krieger & Stewart demonstrated a good Agenda Item #4c December 14, 20222 Meeting Date: December 14, 2022 Agenda Item #4c Discussion Item 7 2 4 understanding of the project and grant requirements. The design engineering services and the services during construction bidding will cost approximately $535,000. The engineering services during construction will cost $649,000. AGENCY GOALS AND OBJECTIVES IV - Promote Planning, Maintenance and Preservation of District Resources A. Develop Projects and Programs to Ensure Safe and Reliable Services C. Dedicate Efforts Toward System Maintenance and Modernization REVIEW BY OTHERS This agenda item has been reviewed by the executive management team. FISCAL IMPACT The cost share requirement of approximately $350,000 will be funded by reserves in the Water Capital Replacement Fund which has a balance of about $10,300,000. Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Jeff Noelte Director of Engineering and Operations ATTACHMENTS EVWD Presentation Jeff Noelte Water Main Seismic Retrofit Project Engineering Support Services December 14, 2022 2 HAZARD MITIGATION GRANT PROGRAM (HGMP) •Introduction •California is eligible for HGMP funding as a result of a major disaster declaration by the President of the United States •Eligible hazard mitigation activities are intended to reduce or eliminate damages to life and improved property. •Funding •Federal funding through FEMA and the CalOES •CalOES identifies program priorities, reviews sub-applications, and forwards recommendations to FEMA •Eligibility •Must be an eligible State Agency, Local Government, Federally Recognized Tribe, or Nonprofit organization •Must have a FEMA approved and adopted Local Hazard Mitigation Plan 3 AWARD OF GRANT •EVWD applied for and was awarded a Hazard Mitigation Grant to develop design documents to replace approximately 6.5 miles of water mains •Reducing the risk of water main failures due to an earthquake •Grant will fund 75% of costs to support the engineering and design of the water main replacement, which is about $888,000. •Requires a cost share from the District of 25% (approximately $296,000) •After FEMA approves final design, grant will fund 75% of construction cost (approximately $8.6 million) 4 PROJECT SELECTION CRITERIA Seismic Risk Community Affordability Consequence of Pipe Failure Population Density 5 PROJECT AREA Pacific Street Baseline Street Dw i g h t W a y St e r l i n g A v e n u e Designates water main to be replaced N 6 EXISTING CEMENT PIPE Rigid material Prone to failure in earthquakes 7 SEISMIC PIPE REDUCES RISK OF FAILURE IN EARTHQUAKE Seismic pipe joints allow for greater ground movement Flexible couplings reduce stress on pipe Ductile iron pipe is more flexible and allows greater joint deflection 8 ENGINEERING SUPPORT SERVICES SOLICITATION •Request for Letter Proposal (RFLP) •Issued October 11th •Sent to Master Services Consultants •Scope of Work includes project coordination, environmental, permit compliance, preparation of contract documents, land surveying, and geotechnical •Responses and Selection •Two proposals were received •Krieger & Stewart selected as best value for this work •Phasing •Phase 1 -services noted in the RFLP •Phase 2 -construction •Phase 1 must be approved by FEMA prior to construction activities •Budget Summary •Design and bidding services -$535,000 •Engineering services during construction -$649,000 DISCUSSION Agenda Item #4d December 14, 20221 Meeting Date: December 14, 2022 Agenda Item #4d Discussion Item 6 1 6 Regular Board Meeting TO: Governing Board Members FROM: General Manager SUBJECT: Surplus Trucks and Equipment RECOMMENDATION That the Board of Directors approve the General Manager/CEO to authorize surplus vehicles and equipment as submitted. BACKGROUND / ANALYSIS The Engineering and Operations Committee recommended, at the November 28, 2022 meeting, that the Board of Directors approve the General Manager/CEO to authorize surplus vehicles and equipment as submitted. The District maintains a fleet of vehicles and equipment that are essential to maintaining operations throughout the service area. Staff maintain vehicles and equipment to extend their useful life. Once a vehicle or equipment is at the end of its’ useful life, the District replaces the asset. The following vehicles and equipment have been identified for surplus: No.Vehicle Details Miles Reason for Surplus 117 2008 GMC 4500 Box van VIN # 1GDE4V19X8F406750 48,241 14 years old vehicle has reached its useful life for the District. 118 2007 GMC Sierra 2500 with service bed VIN # 1FTSF30L6YEA42027 133,067 15 years old vehicle has reached its useful life for the District. 128 2000 Ford F-350 with service bed VIN # 1GTHC24U57E150928 111,384 22 years old vehicle has reached its useful life for the District. Agenda Item #4d December 14, 20222 Meeting Date: December 14, 2022 Agenda Item #4d Discussion Item 6 1 6 133 2004 Chevrolet 2500 with service bed VIN # 1GBHC24UX4E182340 115,688 18 years old vehicle has reached its useful life for the District. 140 2005 Chevrolet 2500 HD with service bed VIN # 1GBHC24005E276745 113,969 17 years old vehicle has reached its useful life for the District. 143 2005 Chevrolet 1500 VIN # 1GCEC14V05Z153800 156,753 17 years old vehicle has reached its useful life for the District. Two cement mixers This equipment has reached its useful life for the District Administrative Policy 7.1.1 identifies the process to surplus District assets including vehicles and equipment. The policy states the Board of Directors must declare the assets surplus and staff has a variety of options to dispose of the assets. The vehicles and equipment identified in this request will be either sold at a public auction or public donation. Proceeds from the sale at auction will be credited to the appropriate equipment replacement fund. AGENCY GOALS AND OBJECTIVES IV - Promote Planning, Maintenance and Preservation of District Resources B. Enhance Planning Efforts that Respond to Future Demands C. Dedicate Efforts Toward System Maintenance and Modernization REVIEW BY OTHERS This agenda item has been reviewed by the Executive Management Team. FISCAL IMPACT Revenue received from the sale of the surplus vehicles and equipment will be added to the Operating Reserve Fund. Agenda Item #4d December 14, 20223 Meeting Date: December 14, 2022 Agenda Item #4d Discussion Item 6 1 6 Recommended by: ________________ Michael Moore General Manager/CEO Respectfully submitted: ________________ Patrick Milroy Operations Manager ATTACHMENTS No Attachments Agenda Item #4a December 14, 20221 Meeting Date: December 14, 2022 Agenda Item #4a Discussion Item Regular Board Meeting TO: Governing Board Members FROM: General Manager/CEO SUBJECT: Consider Approval of Board Reorganization A) Elect official officers for the positions of Board President and Vice President B) Appointment of General Manager/Chief Executive Officer, Board Secretary and Chief Financial Officer C) Set the time, day and place for holding meetings. RECOMMENDATION That the Board of Directors: A) Elect official officers for the positions of Board President and Vice President B) Appointment of General Manager/Chief Executive Officer, Board Secretary and Chief Financial Officer C) Set the time, day and place for holding meetings. BACKGROUND / ANALYSIS The Board of Directors conducts their reorganization process at the first regular meeting in December pursuant to California Water Code Section 30520. The Board reorganization ensures the efficient management of the District and reflects a dedication to the highest standards of integrity and accountability so as to continue to earn the trust and confidence of the public served by the District. Staff is recommending that the District continue to hold regularly scheduled Board meetings at 31111 Greenspot Road, Highland, CA, on the 2nd and 4th Wednesday of each month at 5:30 p.m. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by Administration and Legal Counsel. FISCAL IMPACT Agenda Item #4a December 14, 20222 Meeting Date: December 14, 2022 Agenda Item #4a Discussion Item There is no fiscal impact associated with this agenda item. Recommended by: ________________ Michael Moore General Manager/CEO ATTACHMENTS No attachments