HomeMy WebLinkAboutAgenda Packet - EVWD Board of Directors - 12/09/2015REGULAR BOARD MEETING
December 9, 2015
4:30 P.M. CLOSED SESSION
5:30 P.M. PUBLIC MEETING
31111 GREENSPOT ROAD, HIGHLAND, CA 92346
AGENDA
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“In order to comply with legal requirements for posting of agenda, only those items filed
with the District Secretary 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”.
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CALL TO ORDER
ROLL CALL
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.
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.
1. Approval of Agenda
RECESS INTO CLOSED SESSION
CLOSED SESSION
2. CONFERENCE WITH LABOR NEGOTIATORS
[Government Code Section 54957.6(a)]
District Designated Representative: Jean Cihigoyenetche
Unrepresented Employee: John Mura, General Manager/CEO
5:30 P.M. RECONVENE MEETING
PLEDGE OF ALLEGIANCE
ROLL CALL OF BOARD MEMBERS
ANNOUNCEMENT OF CLOSED SESSION ACTIONS
PUBLIC COMMENTS
3.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 General Manager, or the public request specific items to
be discussed.
a)Directors' fees and expenses for November 2015
b)Accept and file the Financial Statements as of, and for the period ended
October 2015
NEW BUSINESS
4.Adopt and file the Comprehensive Annual Financial Report (CAFR) for Year Ended
June 30, 2015
5.Approve Contract Amendments for the Legal Team, EIR Consultant, Permitting
Consultant and Communications Consultant for the Sterling Natural Resource
Center
6.Consider possible amendments to the General Manager/CEO’s Employment
Agreement
7.Board Reorganization
a)Elect official officers for the position of Board President, Vice President
(Commencing at the conclusion of this meeting)
b)Appointment of General Manager/CEO, Chief Financial Officer and Board
Secretary
c)Set the time, day and place for holding meetings
REPORTS
8.Board of Directors’ Reports
9.General Manager/CEO Report
10.Legal Counsel Report
11. Board of Directors’ Comments
ADJOURN
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 Road, Highland, during
normal business hours. Also, such documents are available on the District’s website at www.eastvalley.org
subject to staff’s ability to post the documents before the meeting.
Pursuant to Government Code Section 54954.2(a), any request for a disability-related 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) 885-4900 at least 72 hours prior to
said meeting.
BOARD AGENDA STAFF REPORT
Agend a Item #3.a.
Meeting Date: December 9, 2015
Cons ent Item
To: G o verning Board Memb ers
From: G eneral Manager/CEO
Subject: Direc tors ' fees and exp enses for Novemb er 2015
RECOMMENDATION:
Approve the Governing Bo ard Members’ fees and expens es for Novemb er 2015.
BACKGROUND / ANALYSIS:
The Board has instruc ted staff to lis t all direc tor fees and exp ens es as a s eparate agenda item to s how full fis c al
trans p arenc y. Only after Bo ard review and approval will the compens ation and expens es be p aid .
AGENCY IDEALS AND ENDEAVORS:
Id eals and End eavor II - Maintain An Environment Committed To Elevated P ublic S ervic e
(E) – Practice trans parent & acc o untable fis c al management
REVIEW BY OTHERS:
This agend a items has b een reviewed by the Adminis tratio n d ep artment.
FISCAL IMPACT :
The fis cal impac t as s o ciated with this agenda item is $4,812.73 whic h is inc luded in the c urrent fis cal b udget.
Res p ectfully s ubmitted:
Rec o mmended b y:
Jo hn Mura
General Manager / C EO
Jus tine Hendric ksen
District Clerk
ATTACHMENTS:
Description Type
Directors' fees and expenses for November 2015 Cover Memo
BOARD AGENDA STAFF REPORT
Agend a Item #3.b .
Meeting Date: December 9, 2015
Cons ent Item
To: G o verning Board Memb ers
From: G eneral Manager/CEO
Subject: Financ ial S tatements for Octo ber 2015
RECOMMENDATION:
Staff rec o mmend s that the Bo ard of Direc tors ac c ept and file the attac hed financ ial s tatements as of, and fo r
the period end ed , Octo b er 31, 2015.
BACKGROUND / ANALYSIS:
Inc luded herewith fo r the Bo ard 's review is a s ummary o f Eas t Valley Water Dis trict's financ ial results, as of
Octo b er 31, 2015.
AGENCY IDEALS AND ENDEAVORS:
Id eals and End eavor II - Maintain An Environment Committed To Elevated P ublic S ervic e
(E) - Practice Trans parent & Acc o untable Fis c al Management
FISCAL IMPACT :
There is no fis c al imp act assoc iated with this agend a item.
Res p ectfully s ubmitted:
Rec o mmended b y:
Jo hn Mura
General Manager / C EO
Brian Tompkins
Chief F inancial Offic er
ATTACHMENTS:
Description Type
October 2015 Financial Statement Monthly Revie w Backup Material
October 2015 Financial Statements Backup Material
FINANCIAL STATEMENTS
MONTHLY REVIEW – OCTOBER 31, 2015
The following is a highlight summary of the District’s financial results as of October 31,
2015.
Statement of Net Position
Total assets at October 31, 2015 are $180.3 million excluding the $6.6 million Inter-fund
Loan between the Water and Wastewater funds.
Below is a summary of the District’s net position as of October 31, 2015.
CLASSIFICATION WATER WASTEWATER TOTAL
Cash and Cash Equivalents $ 11,694,614 $ 581,171 $ 11,258,096
Utility Plant, Net 107,085,973 19,365,406 126,436,044
Other Assets 32,037,034 15,413,044 49,806,440
Current Liabilities 4,939,176 415,706 5,323,486
Long Term Liabilities 59,001,261 6,819,180 58,914,041
Beginning Net Position 84,008,455 27,960,380 119,440,179
Change in Equity 3,459,325 330,935 3,823,222
Total Net Position $ 87,467,780 $ 28,291,315 $ 115,759,096
FINANCIAL STATEMENTS
MONTHLY REVIEW – OCTOBER 31, 2015
Cash and Investments are $22.6 million, down $1.1 million from the prior month. The
large decrease is attributed to the 2010 and 2013 debt service payments that occurred
during the month of October.
Comparing current assets to current liabilities, the District has a current ratio at October
31, 2015 of 4.18 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
eleven months ending October 31, 2015. First, is a one page summary with monthly and
year-to-date totals for revenue, and expenses presented by Expense Category. Second is
0
5
10
15
20
25
30
Mi
l
l
i
o
n
$
CASH & INVESTMENTS
Unrestricted
Restricted
FINANCIAL STATEMENTS
MONTHLY REVIEW – OCTOBER 31, 2015
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.
WATER WASTEWATER DISTRICT TOTAL
Operating Revenues $ 8,173,688 $ 3,937,390 $ 12,111,078
Operating Expenses 4,714,363 3,606,455 8,320,818
Water Sales for September were $1,129,454, $114,454 (11%) over projection. The month
of October continued to have consistently warmer weather, therefore water sales exceed
the District’s historical consumption levels. Water sales year to date are over projections
$94,361.
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
WATER REVENUE
Actual
Projection
FINANCIAL STATEMENTS
MONTHLY REVIEW – OCTOBER 31, 2015
Below are operational cost associated with the delivery of water to our customers, as of
October 31, 2015 cost of delivering water is at 22% or $1,650,355.
DELIVERING WATER BY COST CENTER
COST CENTER TOTAL BUDGET YTD ACTIVITY REMAINING
AMOUNT
Source of Supply/Wells $ 3,528,000 $ 620,514 $ 2,907,486
Pumps & Boosters 1,025,000 212,130 812,870
Treatment 793,000 231,103 561,897
Transmission & Distribution 2,044,000 586,608 1,457,392
Total $ 7,390,000 $ 1,650,355 $ 5,739,645
Wastewater System Charge revenue are on target with the budget. Wastewater Treatment
Revenue collected and passed-through to the City of San Bernardino as of October 31,
2015 is $ 2,425,566 or 35% of the total budget.
Most programs have continued to be on pace with their overall budget with the exception
of Human Resources and Public Affairs which have large onetime expenses that normally
occur during the first half of the fiscal year. For Human Resources the District’s general
liability insurance is prepaid for the fiscal year. Additionally, Public Affairs had a large
expense for postage related to the drought mailers.
Water WasteWater District Total
Assets:
Current Assets:
01 Cash and Cash Equivalents 11,694,613.66$ 581,170.90$ 12,275,784.56$
02 Investments 2,703,155.81 2,225,805.81 4,928,961.62
03 Accounts Receivable, Net 3,495,476.63 387,057.65 3,882,534.28
04 ‐Interest Receivable - - -
05 Other Receivables 215,781.39 - 215,781.39
06 Due from other Governments 629,300.01 - 629,300.01
08 Inventory 355,871.96 6,721.16 362,593.12
09 Prepaid Expenses 63,368.70 7,400.35 70,769.05
19,157,568.16 3,208,155.87 22,365,724.03
Non-Current Assets:
10 Restricted Cash and Cash Equivalents 5,254,072.33 167,585.57 5,421,657.90
17 Loan to Water Fund - 6,600,000.00 6,600,000.00
11 Capital Assets not being Depreciated 19,145,654.38 6,018,473.63 25,164,128.01
13 Capital Assets, Net 107,085,973.42 19,365,406.18 126,451,379.60
131,485,700.13 32,151,465.38 163,637,165.51
Total Assets:150,643,268.29 35,359,621.25 186,002,889.54
Deferred Outflow Of Resources
unding Deferred Charge on Refunding 174,353.17 - 174,353.17
25 Deferred Outflows - Pensions 590,596.65 166,579.24 757,175.89
151,408,218.11 35,526,200.49 186,934,418.60
Current Liabilities:
22 Accounts Payable and Accrued Expenses 621,238.20$ 29,893.35$ 651,131.55$
23 Accrued Payroll and Benefits 31,455.15 - 31,455.15
15 Customer Service Deposits 1,760,841.82 - 1,760,841.82
16 Construction Advances and Retentions 106,000.00 135,697.50 241,697.50
17 Accrued Interest Payable 448,005.83 57,006.25 505,012.08
18 Current Portion of Compensated Absences 223,102.32 85,150.50 308,252.82
19 Current Portion of Long-Term Debt 1,748,533.01 107,958.00 1,856,491.01
4,939,176.33 415,705.60 5,354,881.93
Non-Current Liabilities:
24 Loan from Wastewater Fund 6,600,000.00 - 6,600,000.00
20 Compensated Absences, less current portion 273,597.08 115,784.67 389,381.75
21 Long Term Debt, Less Current Portion 50,866,350.13 6,327,119.01 57,193,469.14
27 Other Liabilities 149.79 20,562.12 20,711.91
Deferred Inflows Of Resources
26 Deferred Inflows - Pensions 1,261,164.29 355,713.71 1,616,878.00
59,001,261.29 6,819,179.51 65,820,440.80
63,940,437.62 7,234,885.11 71,175,322.73
31 Equity 84,008,455.45 27,960,379.99 111,968,835.44
84,008,455.45 27,960,379.99 111,968,835.44
Tot Total Revenue 8,173,688.39 3,937,389.93 12,111,078.32
Tot Total Expense 4,714,363.35 3,606,454.54 8,320,817.89
3,459,325.04 330,935.39 3,790,260.43
87,467,780.49 28,291,315.38 115,759,095.87
151,408,218.11$ 35,526,200.49$ 186,934,418.60$ Total Liabilities, Equity and Current Surplus (Deficit):
Total Total Beginning Equity:
Equity:
Revenues Over/Under Expenses
Liability:
Total Current Liabilities:
Total Non-Current and Deferred Inflows of Resources:
Total Liabilities and Deferred Inflows of Resources:
Unaudited
As of October 31, 2015
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:
MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET REMAINING BUDGET
Revenue
41 Water Sales 1,129,453.59$ 5,024,361.09$ 11,950,000.00$ -$ -$ -$ 11,950,000.00$ 6,925,638.91$
42 Meter Charges 676,462.53 2,713,019.31 8,175,000.00 - - - 8,175,000.00 5,461,980.69
43 Penalties 55,832.50 218,049.25 500,000.00 3,887.79 15,642.38 50,000.00 550,000.00 316,308.37
44 Wastewater System Charges - - - 370,555.67 1,498,161.67 4,600,000.00 4,600,000.00 3,101,838.33
45 Wastewater Treatment Charges - - - 608,615.25 2,425,565.62 7,250,000.00 7,250,000.00 4,824,434.38
46 Other Operating Revenue 8,595.31 147,950.74 585,000.00 - 100.00 200,000.00 785,000.00 636,949.26
47 Non Operating Revenue 6,564.12 70,308.00 100,000.00 - (2,079.74) 10,000.00 110,000.00 41,771.74
48 Gain or Loss on Disposition - - - - - - - -
Revenue Total: 1,876,908.05 8,173,688.39 21,310,000.00 983,058.71 3,937,389.93 12,110,000.00 33,420,000.00 21,308,921.68
- - - - -
Expense by Category
51 Labor 302,844.51 1,194,380.00 4,312,350.00 101,579.22 412,860.05 1,332,650.00 5,645,000.00 4,037,759.95
56 Benefits 133,170.49 581,033.47 1,415,500.00 651,953.42 2,610,573.82 7,328,100.00 8,743,600.00 5,551,992.71
63 Contract Services 253,294.17 693,091.59 2,945,450.00 61,550.13 213,881.60 8,164,050.00 11,109,500.00 3,340,926.81
65 Professional Development 12,788.39 33,198.31 208,640.00 5,569.43 13,940.87 87,460.00 296,100.00 248,960.82
53 Overtime 18,332.69 70,062.32 247,300.00 1,803.27 12,590.07 28,200.00 275,500.00 192,847.61
62 Materials and Supplies 129,244.66 317,642.19 1,892,950.00 4,763.38 20,896.82 105,050.00 1,998,000.00 1,659,460.99
64 Utilities 236,543.25 715,838.47 3,408,950.00 18,818.14 59,486.05 199,550.00 3,608,500.00 2,833,175.48
52 Temporary Labor 5,048.45 18,433.84 46,900.00 2,163.62 3,322.21 10,100.00 57,000.00 35,243.95
67 Other 9,032.89 157,813.19 217,350.00 3,871.22 66,913.88 93,150.00 310,500.00 85,772.93
54 Standby 1,910.00 8,094.95 34,000.00 610.00 2,540.65 6,000.00 40,000.00 29,364.40
61 Water Supply - - 575,000.00 - - - 575,000.00 575,000.00
71 -Debt Service 831,831.25 875,743.47 3,605,000.00 114,012.50 114,012.50 320,000.00 3,925,000.00 2,935,244.03
81 -Capital Improvement 1,416.20 49,031.55 1,767,360.00 - 75,436.02 4,595,000.00 6,362,360.00 6,237,892.43
82 -Capital Outlay - - 633,250.00 - - 66,750.00 700,000.00 700,000.00
83 -Accounting Income Add back - - - - - - - -
Expense Total: 1,935,456.95 4,714,363.35 21,310,000.00 966,694.33 3,606,454.54 22,336,060.00 43,646,060.00 28,463,642.11
Total Surplus (Deficit): (58,548.90)$ 3,459,325.04$ -$ 16,364.38$ 330,935.39$ -$ -$ -$
Unaudited
Revenue and Expense Budget-to-Actual by Category
Month Ended October 31, 2015
WATER WASTEWATER DISTRICT WIDE
MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET REMAINING BUDGET
Revenue
41 Water Sales 1,129,453.59$ 5,024,361.09$ 11,950,000.00$ -$ -$ -$ 11,950,000.00$ 6,925,638.91$
42 Meter Charges 676,462.53 2,713,019.31 8,175,000.00 - - - 8,175,000.00 5,461,980.69
43 Penalties 55,832.50 218,049.25 500,000.00 3,887.79 15,642.38 50,000.00 550,000.00 316,308.37
44 Wastewater System Charges - - - 370,555.67 1,498,161.67 4,600,000.00 4,600,000.00 3,101,838.33
45 Wastewater Treatment Charges - - - 608,615.25 2,425,565.62 7,250,000.00 7,250,000.00 4,824,434.38
46 Other Operating Revenue 8,595.31 147,950.74 585,000.00 - 100.00 200,000.00 785,000.00 636,949.26
47 Non Operating Revenue 6,564.12 70,308.00 100,000.00 - (2,079.74) 10,000.00 110,000.00 41,771.74
48 Gain or Loss on Disposition - - - - - - - -
Revenue Total: 1,876,908.05 8,173,688.39 21,310,000.00 983,058.71 3,937,389.93 12,110,000.00 33,420,000.00 21,308,921.68
Progra 1000 - Board of Directors 7,140.27 30,840.83 206,500.00 2,742.14 12,261.60 88,500.00 295,000.00 251,897.57
Progra 2000 - General Administration 65,296.13 191,949.39 918,400.00 26,545.16 76,096.15 393,600.00 1,312,000.00 1,043,954.46
Progra 2100 - Human Resources 34,121.51 242,442.31 487,900.00 14,623.33 103,903.27 209,100.00 697,000.00 350,654.42
Progra 2200 - Public Affairs 17,704.07 112,330.48 354,900.00 7,182.78 35,876.47 152,100.00 507,000.00 358,793.05
Progra 2300 - Conservation 107,222.12 241,544.37 1,511,000.00 - - - 1,511,000.00 1,269,455.63
Progra 3000 - Finance 280,207.35 723,347.73 694,610.00 28,074.02 102,880.23 297,690.00 992,300.00 3,188,072.04
Progra 3200 - Information Technology 27,341.43 120,953.63 371,580.00 21,395.86 95,553.06 244,400.00 615,980.00 399,473.31
Progra 3300 - Customer Service 99,159.49 339,648.25 1,314,050.00 43,637.79 156,921.92 405,770.00 1,719,820.00 1,223,249.83
Progra 3400 - Meter Service 14,823.71 56,571.56 176,750.00 14,312.42 54,526.62 176,750.00 353,500.00 242,401.82
Progra 4000 - Engineering 43,982.91 191,221.54 525,300.00 27,414.04 101,721.75 338,400.00 863,700.00 570,756.71
Progra 5000 - Water Production 287,916.86 855,417.49 4,791,000.00 633.11 1,707.62 6,800.00 4,797,800.00 3,940,674.89
Progra 5100 - Water Treatment 85,625.59 229,084.40 736,000.00 - - - 736,000.00 506,915.60
Progra 5200 - Water Quality 24,085.45 88,607.56 342,000.00 - - - 342,000.00 253,392.44
Progra 6000 - Field Maintenance Administration 14,005.93 56,227.11 248,850.00 13,765.46 54,800.02 106,650.00 355,500.00 244,472.87
Progra 6100 - Water Maintenance 138,126.71 526,158.07 1,672,000.00 - - - 1,672,000.00 1,145,841.93
Progra 6200 - Wastewater Maintenance - - - 623,806.07 2,513,402.84 7,709,000.00 7,709,000.00 5,195,597.16
Progra 7000 - Facilities Maintenance 45,626.20 168,495.90 582,900.00 16,765.09 60,707.85 205,100.00 788,000.00 558,796.25
Progra 7100 - Fleet Maintenance 24,268.01 97,836.45 370,650.00 11,784.56 46,646.62 158,850.00 529,500.00 385,016.93
Progra 8000 - Capital 833,247.45 924,775.02 6,005,610.00 114,012.50 189,448.52 4,981,750.00 10,987,360.00 9,873,136.46
Expense Total: 2,042,679.07 4,714,363.35 21,310,000.00 966,694.33 3,606,454.54 15,474,460.00 36,784,460.00 29,733,097.74
Total Surplus (Deficit):(165,771.02)$ 3,459,325.04$ -$ 16,364.38$ 330,935.39$ -$ -$ -$
Revenue and Expense Budget-to-Actual by Program
Month Ended October 31, 2015
Unaudited
WATER WASTEWATER DISTRICT WIDE
MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET REMAINING BUDGET
Revenue
41 Water Sales 1,129,453.59 5,024,361.09$ 11,950,000.00$ - -$ - 11,950,000.00 6,925,638.91
42 Meter Charges 676,462.53 2,713,019.31 8,175,000.00 - - - 8,175,000.00 5,461,980.69
43 Penalties 55,832.50 218,049.25 500,000.00 3,887.79 15,642.38 50,000.00 550,000.00 316,308.37
44 Wastewater System Charges - - - 370,555.67 1,498,161.67 4,600,000.00 4,600,000.00 3,101,838.33
45 Wastewater Treatment Charges - - - 608,615.25 2,425,565.62 7,250,000.00 7,250,000.00 4,824,434.38
46 Other Operating Revenue 8,595.31 147,950.74 585,000.00 - 100.00 200,000.00 785,000.00 636,949.26
47 Non Operating Revenue 6,564.12 70,308.00 100,000.00 - (2,079.74) 10,000.00 110,000.00 41,771.74
48 Gain or Loss on Disposition - - - - - - - -
56 Benefits 61.94 811.99 - 33.24 197.25 - - (1,009.24)
68 Depreciation - - - - - - -
Revenue Total: 1,876,908.05 8,173,688.39 21,310,000.00 983,058.71 3,937,389.93 12,110,000.00 33,420,000.00 21,308,921.68
Program: 1000 - Board of Directors - - -
51 Labor 4,042.50$ 18,783.65$ 73,500.00$ 1,732.50$ 8,050.20$ 31,500.00$ 105,000.00$ 78,166.15$
56 Benefits 2,099.50 8,898.29 28,000.00 785.78 3,202.93 12,000.00 40,000.00 27,898.78
63 Contract Services - - 70,000.00 - - 30,000.00 100,000.00 100,000.00
65 Professional Development 998.27 3,158.89 35,000.00 223.86 1,008.47 15,000.00 50,000.00 45,832.64
Program: 1000 - Board of Directors Total: 7,140.27 30,840.83 206,500.00 2,742.14 12,261.60 88,500.00 295,000.00 251,897.57
Program: 2000 - General Administration - - -
51 Labor 23,772.13 78,984.03 395,500.00 10,188.05 33,850.26 169,500.00 565,000.00 452,165.71
53 Overtime 112.19 112.19 - 48.07 48.07 - - (160.26)
56 Benefits 17,242.68 58,968.41 140,000.00 5,950.82 19,104.33 60,000.00 200,000.00 121,927.26
62 Materials and Supplies 834.95 1,161.53 4,900.00 357.85 497.81 2,100.00 7,000.00 5,340.66
63 Contract Services 17,775.01 42,572.22 282,100.00 7,617.87 18,245.26 120,900.00 403,000.00 342,182.52
64 Utilities 253.31 717.15 4,200.00 108.56 307.34 1,800.00 6,000.00 4,975.51
65 Professional Development 5,305.86 9,433.86 91,700.00 2,273.94 4,043.08 39,300.00 131,000.00 117,523.06
Program: 2000 - General Administration Total: 65,296.13 191,949.39 918,400.00 26,545.16 76,096.15 393,600.00 1,312,000.00 1,043,954.46
Program: 2100 - Human Resources - - - -
51 Labor 10,234.58 39,259.81 140,000.00 4,386.23 16,825.61 60,000.00 200,000.00 143,914.58
52 Temporary Labor 508.20 2,249.50 8,400.00 217.80 964.07 3,600.00 12,000.00 8,786.43
53 Overtime 302.83 746.90 2,100.00 129.78 320.10 900.00 3,000.00 1,933.00
56 Benefits 4,231.61 20,182.65 45,500.00 1,813.45 8,649.30 19,500.00 65,000.00 36,168.05
62 Materials and Supplies 183.44 701.48 3,500.00 78.60 300.61 1,500.00 5,000.00 3,997.91
63 Contract Services 8,682.60 18,954.63 53,900.00 3,721.11 8,123.40 23,100.00 77,000.00 49,921.97
64 Utilities 35.15 136.68 350.00 15.06 58.57 150.00 500.00 304.75
65 Professional Development 910.21 4,162.40 16,800.00 390.08 1,783.87 7,200.00 24,000.00 18,053.73
67 Other 9,032.89 156,048.26 217,350.00 3,871.22 66,877.74 93,150.00 310,500.00 87,574.00
Program: 2100 - Human Resources Total: 34,121.51 242,442.31 487,900.00 14,623.33 103,903.27 209,100.00 697,000.00 350,654.42
Program: 2200 - Public Affairs - - - -
51 Labor 9,710.31 61,630.21 154,000.00 4,161.54 18,197.16 66,000.00 220,000.00 140,172.63
52 Temporary Labor - - 10,500.00 - - 4,500.00 15,000.00 15,000.00
53 Overtime 115.79 969.06 4,900.00 49.62 216.28 2,100.00 7,000.00 5,814.66
56 Benefits 2,949.69 21,111.63 44,100.00 1,263.87 7,780.54 18,900.00 63,000.00 34,107.83
Month Ended October 31, 2015
Unaudited
Program Expense Detail Budget-to-Actual
WATER WASTEWATER DISTRICT WIDE
MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET REMAINING BUDGET
Month Ended October 31, 2015
Unaudited
Program Expense Detail Budget-to-Actual
WATER WASTEWATER DISTRICT WIDE
62 Materials and Supplies 264.20 1,137.34 31,500.00 88.07 362.77 13,500.00 45,000.00 43,499.89
63 Contract Services 4,437.42 24,960.87 91,000.00 1,522.54 8,416.69 39,000.00 130,000.00 96,622.44
64 Utilities 226.66 656.93 10,500.00 97.14 281.54 4,500.00 15,000.00 14,061.53
65 Professional Development - 1,864.44 8,400.00 - 621.49 3,600.00 12,000.00 9,514.07
Program: 2200 - Public Affairs Total: 17,704.07 112,330.48 354,900.00 7,182.78 35,876.47 152,100.00 507,000.00 358,793.05
Program: 2300 - Conservation - - - -
51 Labor 15,867.06 30,667.96 230,000.00 - - - 230,000.00 199,332.04
52 Temporary Labor - - 25,000.00 - - - 25,000.00 25,000.00
53 Overtime 203.18 208.43 8,000.00 - - - 8,000.00 7,791.57
56 Benefits 4,919.11 12,686.07 60,000.00 - - - 60,000.00 47,313.93
62 Materials and Supplies 85,594.77 164,075.95 1,037,000.00 - - - 1,037,000.00 872,924.05
63 Contract Services 597.20 25,621.68 130,000.00 - - - 130,000.00 104,378.32
64 Utilities - 8,243.48 15,000.00 - - - 15,000.00 6,756.52
65 Professional Development 40.80 40.80 6,000.00 - - - 6,000.00 5,959.20
Program: 2300 - Conservation Total: 107,222.12 241,544.37 1,511,000.00 - - - 1,511,000.00 1,269,455.63
Program: 3000 - Finance - - - -
51 Labor 30,121.93 135,664.92 448,000.00 12,909.34 58,129.05 192,000.00 640,000.00 446,206.03
52 Temporary Labor 4,540.25 5,502.34 - 1,945.82 2,358.14 - - (7,860.48)
53 Overtime 213.96 962.01 1,050.00 52.83 295.29 450.00 1,500.00 242.70
56 Benefits 12,872.20 64,949.43 143,500.00 5,511.31 27,708.38 61,500.00 205,000.00 112,342.19
62 Materials and Supplies 531.31 4,492.14 4,900.00 161.80 1,663.56 2,100.00 7,000.00 844.30
63 Contract Services 14,073.46 21,599.27 86,100.00 6,031.49 9,813.31 36,900.00 123,000.00 91,587.42
64 Utilities 129.45 326.73 1,750.00 55.48 140.03 750.00 2,500.00 2,033.24
65 Professional Development 3,280.55 6,469.12 9,310.00 1,405.95 2,772.47 3,990.00 13,300.00 4,058.41
67 Other - 293.03 - - - - - (293.03)
Program: 3000 - Finance Total: 65,763.11 240,258.99 3,716,610.00 28,074.02 102,880.23 297,690.00 4,014,300.00 3,188,072.04
Program: 3200 - Information Technology - - - -
51 Labor 12,373.45 52,381.86 165,000.00 8,248.96 34,921.23 110,000.00 275,000.00 187,696.91
52 Temporary Labor - - - - - - - -
53 Overtime - - - - - - - -
56 Benefits 4,673.52 15,917.10 45,000.00 2,855.92 10,773.03 30,000.00 75,000.00 48,309.87
62 Materials and Supplies 735.90 1,606.08 19,800.00 735.93 1,606.11 13,200.00 33,000.00 29,787.81
63 Contract Services 9,355.80 49,418.97 135,000.00 9,355.79 47,473.96 90,000.00 225,000.00 128,107.07
64 Utilities 199.26 778.74 1,800.00 199.26 778.73 1,200.00 3,000.00 1,442.53
65 Professional Development 3.50 850.88 4,980.00 - - - 4,980.00 4,129.12
Program: 3200 - Information Technology Total: 27,341.43 120,953.63 371,580.00 21,395.86 95,553.06 244,400.00 615,980.00 399,473.31
Program: 3300 - Customer Service - - - -
51 Labor 19,189.78 87,643.20 325,500.00 11,261.42 47,158.30 139,500.00 465,000.00 330,198.50
52 Temporary Labor - 10,682.00 - - - - - (10,682.00)
53 Overtime 189.68 986.03 3,500.00 85.93 341.41 1,500.00 5,000.00 3,672.56
56 Benefits 9,982.02 39,004.98 122,500.00 5,254.64 22,152.31 52,500.00 175,000.00 113,842.71
62 Materials and Supplies 499.38 1,419.82 6,300.00 413.21 1,333.64 2,700.00 9,000.00 6,246.54
63 Contract Services 61,129.79 178,803.73 734,800.00 18,450.24 65,412.63 154,200.00 889,000.00 644,783.64
64 Utilities 8,168.84 19,580.31 112,700.00 8,168.86 19,580.36 48,300.00 161,000.00 121,839.33
MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET REMAINING BUDGET
Month Ended October 31, 2015
Unaudited
Program Expense Detail Budget-to-Actual
WATER WASTEWATER DISTRICT WIDE
65 Professional Development - 56.28 8,750.00 3.49 907.13 7,070.00 15,820.00 14,856.59
67 Other - 1,471.90 - - 36.14 - - (1,508.04)
Program: 3300 - Customer Service Total: 99,159.49 339,648.25 1,314,050.00 43,637.79 156,921.92 405,770.00 1,719,820.00 1,223,249.83
Program: 3400 - Meter Service - - - -
51 Labor 8,012.73 32,453.94 112,500.00 8,012.57 32,453.47 112,500.00 225,000.00 160,092.59
53 Overtime 134.47 1,574.45 10,000.00 134.47 1,574.44 10,000.00 20,000.00 16,851.11
56 Benefits 4,029.99 19,361.53 42,500.00 3,518.88 17,317.20 42,500.00 85,000.00 48,321.27
62 Materials and Supplies - 193.51 1,750.00 - 193.52 1,750.00 3,500.00 3,112.97
63 Contract Services 2,593.14 2,834.16 9,000.00 2,593.11 2,834.00 9,000.00 18,000.00 12,331.84
64 Utilities 53.38 153.97 1,000.00 53.39 153.99 1,000.00 2,000.00 1,692.04
65 Professional Development - - - - - - - -
Program: 3400 - Meter Service Total: 14,823.71 56,571.56 176,750.00 14,312.42 54,526.62 176,750.00 353,500.00 242,401.82
Program: 4000 - Engineering - - - -
51 Labor 24,754.33 103,848.13 264,600.00 16,502.91 68,129.27 171,400.00 436,000.00 264,022.60
52 Temporary Labor - - 3,000.00 - - 2,000.00 5,000.00 5,000.00
53 Overtime - - 900.00 - - 600.00 1,500.00 1,500.00
56 Benefits 10,177.72 39,455.57 99,000.00 5,674.44 20,550.14 66,000.00 165,000.00 104,994.29
62 Materials and Supplies 603.11 1,034.38 7,200.00 603.09 1,034.36 4,800.00 12,000.00 9,931.26
63 Contract Services 6,296.00 35,678.25 110,700.00 4,269.00 9,667.98 73,800.00 184,500.00 139,153.77
64 Utilities 850.75 7,397.00 29,700.00 364.60 2,340.00 19,800.00 49,500.00 39,763.00
65 Professional Development 1,301.00 3,808.21 10,200.00 - - - 10,200.00 6,391.79
Program: 4000 - Engineering Surplus Total: 43,982.91 191,221.54 525,300.00 27,414.04 101,721.75 338,400.00 863,700.00 570,756.71
Program: 5000 - Water Production - - - -
51 Labor 45,357.55 166,958.10 618,000.00 - - - 618,000.00 451,041.90
53 Overtime 3,785.12 12,888.56 35,500.00 - - - 35,500.00 22,611.44
54 Standby 1,080.00 4,271.43 20,000.00 - - - 20,000.00 15,728.57
56 Benefits 17,885.28 75,650.63 190,000.00 - - - 190,000.00 114,349.37
61 Water Supply - - 575,000.00 - - - 575,000.00 575,000.00
62 Materials and Supplies 23,841.62 56,243.54 264,000.00 - - - 264,000.00 207,756.46
63 Contract Services 11,286.36 20,720.14 308,500.00 - - - 308,500.00 287,779.86
64 Utilities 184,371.73 516,428.42 2,773,000.00 - - - 2,773,000.00 2,256,571.58
65 Professional Development 309.20 2,256.67 7,000.00 633.11 1,707.62 6,800.00 13,800.00 9,835.71
Program: 5000 - Water Production Total: 287,916.86 855,417.49 4,791,000.00 633.11 1,707.62 6,800.00 4,797,800.00 3,940,674.89
Program: 5100 - Water Treatment - - - -
51 Labor 15,705.98 60,309.89 211,000.00 - - - 211,000.00 150,690.11
53 Overtime 2,038.16 4,670.34 10,000.00 - - - 10,000.00 5,329.66
56 Benefits 5,155.05 35,826.70 52,000.00 - - - 52,000.00 16,173.30
62 Materials and Supplies 1,918.20 22,555.02 165,000.00 - - - 165,000.00 142,444.98
63 Contract Services 39,990.54 41,565.42 160,500.00 - - - 160,500.00 118,934.58
64 Utilities 20,817.66 64,157.03 137,500.00 - - - 137,500.00 73,342.97
Program: 5100 - Water Treatment Total: 85,625.59 229,084.40 736,000.00 - - - 736,000.00 506,915.60
Program: 5200 - Water Quality - - - -
51 Labor 11,356.70 43,604.11 160,000.00 - - - 160,000.00 116,395.89
53 Overtime 69.37 100.05 3,000.00 - - - 3,000.00 2,899.95
MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET REMAINING BUDGET
Month Ended October 31, 2015
Unaudited
Program Expense Detail Budget-to-Actual
WATER WASTEWATER DISTRICT WIDE
56 Benefits 4,390.41 19,427.37 45,000.00 - - - 45,000.00 25,572.63
62 Materials and Supplies 1,371.05 4,720.44 19,500.00 - - - 19,500.00 14,779.56
63 Contract Services 6,731.27 20,447.54 112,000.00 - - - 112,000.00 91,552.46
64 Utilities 166.65 308.05 2,500.00 - - - 2,500.00 2,191.95
Program: 5200 - Water Quality Total: 24,085.45 88,607.56 342,000.00 - - - 342,000.00 253,392.44
Program: 6000 - Field Maintenance Administration - - - -
51 Labor 8,635.86 33,276.80 164,500.00 8,635.76 33,276.60 70,500.00 235,000.00 168,446.60
52 Temporary Labor - - - - - - - -
53 Overtime - - - - - - - -
54 Standby 830.00 3,823.52 14,000.00 610.00 2,540.65 6,000.00 20,000.00 13,635.83
56 Benefits 3,378.21 15,851.74 50,400.00 3,357.85 15,707.74 21,600.00 72,000.00 40,440.52
62 Materials and Supplies - 137.86 2,100.00 - 137.86 900.00 3,000.00 2,724.28
63 Contract Services - - - - - - - -
64 Utilities 522.86 2,040.43 10,500.00 522.85 2,040.43 4,500.00 15,000.00 10,919.14
65 Professional Development 639.00 1,096.76 7,350.00 639.00 1,096.74 3,150.00 10,500.00 8,306.50
Program: 6000 - Field Maintenance Administration 14,005.93 56,227.11 248,850.00 13,765.46 54,800.02 106,650.00 355,500.00 244,472.87
Program: 6100 - Water Maintenance - - - -
51 Labor 51,973.40 203,712.23 690,000.00 - - - 690,000.00 486,287.77
53 Overtime 10,629.44 43,654.60 150,000.00 - - - 150,000.00 106,345.40
56 Benefits 23,822.19 108,060.41 250,000.00 - - - 250,000.00 141,939.59
62 Materials and Supplies 7,804.24 37,119.60 250,000.00 - - - 250,000.00 212,880.40
63 Contract Services 41,872.44 106,986.31 282,000.00 - - - 282,000.00 175,013.69
64 Utilities 2,025.00 26,624.92 50,000.00 - - - 50,000.00 23,375.08
Program: 6100 - Water Maintenance Total: 138,126.71 526,158.07 1,672,000.00 - - - 1,672,000.00 1,145,841.93
Program: 6200 - Wastewater Maintenance - - - -
51 Labor - - - 10,059.32 40,762.08 135,000.00 135,000.00 94,237.92
53 Overtime - - - 1,012.62 8,094.02 3,000.00 3,000.00 (5,094.02)
56 Benefits - - - 4,857.79 20,116.27 55,000.00 55,000.00 34,883.73
62 Materials and Supplies - - - 61.54 4,217.25 35,000.00 35,000.00 30,782.75
Wastewater Treatment - - - 608,615.25 2,425,565.62 6,861,600.00 6,861,600.00 4,436,034.38
63 Contract Services - - - (800.45) 14,647.60 619,400.00 619,400.00 604,752.40
Program: 6200 - Wastewater Maintenance Total:- - - 623,806.07 2,513,402.84 7,709,000.00 7,709,000.00 5,195,597.16
Program: 7000 - Facilities Maintenance - - - -
51 Labor 4,102.69 15,788.94 55,250.00 2,209.11 8,501.64 29,750.00 85,000.00 60,709.42
53 Overtime 538.50 3,034.57 16,250.00 289.95 1,633.98 8,750.00 25,000.00 20,331.45
56 Benefits 2,364.04 10,882.91 19,500.00 1,208.87 5,604.10 10,500.00 30,000.00 13,512.99
62 Materials and Supplies 1,557.09 4,615.82 29,300.00 501.88 1,592.76 7,700.00 37,000.00 30,791.42
63 Contract Services 25,478.15 91,121.38 327,350.00 6,380.98 20,385.87 83,650.00 411,000.00 299,492.75
64 Utilities 11,585.73 43,052.28 135,250.00 6,174.30 22,989.50 64,750.00 200,000.00 133,958.22
Program: 7000 - Facilities Maintenance Total: 45,626.20 168,495.90 582,900.00 16,765.09 60,707.85 205,100.00 788,000.00 558,796.25
Program: 7100 - Fleet Maintenance - - - -
51 Labor 7,633.53 29,412.22 105,000.00 3,271.51 12,605.18 45,000.00 150,000.00 107,982.60
53 Overtime - 155.13 2,100.00 - 66.48 900.00 3,000.00 2,778.39
56 Benefits 2,997.27 14,798.05 38,500.00 1,284.55 6,341.93 16,500.00 55,000.00 33,860.02
MTD YTD BUDGET MTD YTD BUDGET TOTAL BUDGET REMAINING BUDGET
Month Ended October 31, 2015
Unaudited
Program Expense Detail Budget-to-Actual
WATER WASTEWATER DISTRICT WIDE
62 Materials and Supplies 3,505.40 16,427.68 46,200.00 1,761.41 7,956.57 19,800.00 66,000.00 41,615.75
63 Contract Services 2,994.99 11,807.02 52,500.00 2,408.45 8,860.90 22,500.00 75,000.00 54,332.08
64 Utilities 7,136.82 25,236.35 123,200.00 3,058.64 10,815.56 52,800.00 176,000.00 139,948.09
65 Professional Development - - 3,150.00 - - 1,350.00 4,500.00 4,500.00
Program: 7100 - Fleet Maintenance Total: 24,268.01 97,836.45 370,650.00 11,784.56 46,646.62 158,850.00 529,500.00 385,016.93
Program: 8000 - Capital - - -
71 Debt Service 831,831.25 875,743.47 3,605,000.00 114,012.50 114,012.50 320,000.00 3,925,000.00 2,935,244.03
81 Capital Improvement 1,416.20 49,031.55 1,767,360.00 - 75,436.02 4,595,000.00 6,362,360.00 6,237,892.43
82 Capital Outlay - - 633,250.00 - - 66,750.00 700,000.00 700,000.00
83 Accounting Income Add back - - - - - - -
Program: 8000 - Capital Total: 833,247.45 924,775.02 6,005,610.00 114,012.50 189,448.52 4,981,750.00 10,987,360.00 9,873,136.46
Total Surplus (Deficit): (58,548.90)$ 3,459,325.04$ -$ 16,364.38$ 330,935.39$ -$ -$ -$
BOARD AGENDA STAFF REPORT
Agenda Item #4.
Meeting Date: December 9, 2015
Disc ussion Item
To: G o verning Board Memb ers
From: G eneral Manager/CEO
Subject: Comprehensive Annual Financial R ep o rt (CAFR) for Year Ended June 30, 2015
RECOMMENDATION:
Adopt and file the attached CAF R and audit rep o rts .
BACKGROUND / ANALYSIS:
Attac hed is the Eas t Valley Water Dis tric t Comprehens ive Annual F inancial Report (CAFR) for the fisc al year
ended June 30, 2015. The CAFR inc ludes the Dis trict annual financ ial s tatements with acc o mp anying no te
d is closures , Management Dis c us s io n and Analys is , and s tatis tic al info rmation compiled by staff. The CAFR is
acc o mp anied by an aud it o p inion letter is s ued by the District’s CPA firm Van Lant & F ankhanel, whic h
cond uc ted an aud it in acc o rd anc e with Generally Ac cepted Auditing S tand ard s and guid elines es tablished b y
the Califo rnia S tate C o ntro ller.
Also in this year ’s CAFR is a copy o f the Certific ate o f Ac hievement fo r Excellence in F inancial Rep o rting
received fo r las t year ’s report. This year ’s rep o rt is in draft form, b ut will b e finalized for submis s ion and
cons id eration fo r the GF OA award later this month, as each year ’s CAFR mus t be cons idered fo r the award
b as ed on its o wn merits .
Adoptio n o f the annual CAF R and audited financ ial statements, and sub mittal of the CAFR for the GF OA
certificate supports :
AGENCY IDEALS AND ENDEAVORS:
Id eals and End eavor II - Maintain An Environment Committed To Elevated P ublic S ervic e
(E) - Practice Trans parent & Acc o untable Fis c al Management
REVIEW BY OTHERS:
This agend a item has b een reviewed by the F inanc e Department.
FISCAL IMPACT :
There is no fis c al imp act assoc iated with this agend a item.
Res p ectfully s ubmitted:
Rec o mmended b y:
Jo hn Mura
General Manager / C EO
Brian Tompkins
Chief F inancial Offic er
ATTACHMENTS:
Description Type
CAFR Draft 20 15 Cover Memo
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Comprehensive Annual Financial Report
Fiscal Year Ended
June 30, 2015
East Valley Water District
Prepared by: Finance Department
31111 Greenspot Road
Highland, CA 92346
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2015
Table of Contents
Page No.
Introductory Section
Letter of Transmittal ............................................................................................................................... 1-4
Organizational Structure ........................................................................................................................... 5
Principal Officials ........................................................................................................................................ 6
GFOA Certificate ....................................................................................................................................... 7
Financial Section
Independent Auditor’s Report ............................................................................................................ 8-10
Management’s Discussion and Analysis ........................................................................................ 11-22
Basic Financial Statements:
Statement of Net Position .............................................................................................................. 23-24
Statement of Revenues, Expenses, and Changes in Net Position ......................................... 25-26
Statement of Cash Flows ............................................................................................................... 27-28
Notes to the Basic Financial Statements .................................................................................... 29-56
Required Supplementary Information:
Schedule of Proportionate Share of Net Pension Liability ............................................................ 57
Schedule of Contributions ................................................................................................................... 58
Schedule of Funding Progress for Retirees Health Coverage ..................................................... 59
Supplementary Information:
History and Organization ..................................................................................................................... 60
Combining Schedule of Net Position .......................................................................................... 61-62
Combining Schedule of Revenues, Expenses, and Changes in Net Position ..................... 63-65
Combining Schedule of Cash Flows ........................................................................................... 66-67
Refunding Revenue Bonds - Series 2010 .................................................................................. 68-69
Refunding Revenue Bonds - Series 2013 .................................................................................. 70-71
US Bancorp Installment Purchase Agreement ................................................................................ 72
Department of Water Resources Construction Loan - Contract 00C412 ................................... 73
Department of Water Resources Construction Loan - Contract 10CX110 .......................... 74-75
Department of Water Resources Construction Design Loan - Contract 10PX102 ................... 76
Department of Water Resources Construction Loan - Contract 11CX101 .......................... 77-78
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2015
Table of Contents
Page No.
Statistical Information Section
Changes in Net Position by Component – Last Ten Fiscal Years .............................................. 79-80
Operating Revenue by Source – Last Ten Fiscal Years ..................................................................... 81
Water Operating Expenses – Last Ten Fiscal Years ........................................................................... 82
Wastewater Operating Expenses – Last Ten Fiscal Years................................................................. 83
Water Sales and Production – Last Ten Fiscal Years ......................................................................... 84
Revenue Rates for Water– Last Ten Fiscal Years .......................................................................... 85-86
Revenue Rates for Wastewater– Last Ten Fiscal Years ............................................................... 87-88
Active Services by Type – Last Ten Fiscal Years ................................................................................ 89
Principal Customers – Current Fiscal Year and Nine Years Ago ..................................................... 90
Ratio of Outstanding Debt – Last Ten Fiscal Years ............................................................................. 91
Debt Service Coverage – Last Ten Fiscal Years ................................................................................. 92
Demographic and Economic Statistics – Last Ten Calendar / Fiscal Years .................................. 93
Full-Time Employees – Last Ten Fiscal Years ...................................................................................... 94
Operating and Capacity Indicators for Water and Wastewater – Last Ten Fiscal Years ............. 95
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1
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1
October 26, 2015
To the Board of Directors and Customers of East Valley Water District,
We are pleased to submit the Comprehensive Annual Financial Report (CAFR) for East Valley Water District for the
year ended June 30, 2015. This report was prepared by District staff in accordance with standards established by
the Governmental Accounting Standards Board.
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 Discussion and Analysis in the Financial Section of the CAFR for a detailed discussion regarding the
District’s financial condition and results of operations.
The CAFR follows the guidelines recommended by the Government Finance Officers Association (GFOA) of the
United States and Canada. In December 2015, the District will, again, submit the CAFR to this organization for
review and possible recognition for achievement in reporting excellence.
Background
East Valley Water 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 27.7 square miles. The District directly serves treated
water to approximately 101,733 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, 2015, the District had 21,983 active water connections and 20,534 active wastewater connections.
Water Supply and Reliability
The District’s water supply for the year ended June 30, 2015 includes groundwater (87.4 percent) and surface
water (12.6 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.
2
Local Economy
The District is located within San Bernardino County in a metropolitan area referred to as the “Inland Empire”. The
District’s population has grown by nearly 38 percent since 2006, but has experienced a low number of new
connections during the national economic downturn. The District’s customer base is substantially residential and
commercial, with no major industrial users. Large consumers remain consistent year to year with the San
Bernardino City Unified School District, Patton State Hospital, East Highlands Ranch Homeowners Association, and
San Manuel Indian Bingo & Casino forming the list of top four users.
In 2010, median household income (MHI) in San Bernardino County was $55,845, 8.3 percent lower than the State
of California median of $60,883. The City of Highland, whose residents comprise approximately 75 percent of the
District’s customer base, had an MHI of $59,549, while the City of San Bernardino, where the remainder of the
District’s customers reside, had an MHI of $39,895 in 2010.
Financial Management
The District manages its resources conservatively in order 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
(CIP), comprehensive reviews of water and wastewater rates, and the annual budget process. The CIP 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 CIP is reviewed annually by the District’s Board of Directors during the budget
87.4%
12.6%
Water Supply Sources
Groundwater
Surface Water
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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 reserves, 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 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 provide
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. 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 adopts 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 January.
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 the State Revolving
Fund.
The District received a credit rating of AA- from Standard and Poors and Fitch when the Revenue Bonds were
issued in June 2013. This rating was affirmed by Fitch as the result of a review conducted in May 2015.
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
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 an independent Certified
Public Accountant. This year, the District’s Financial statements were again audited by Van Lant & Fankhanel, LLP
from Loma Linda, California. Their audit opinion is included in the Basic Financial Statements section of this 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 Comprehensive Annual Financial Report for
the fiscal year ended June 30, 2014. This was the third year that the District has achieved this prestigious award. In
order to be awarded a Certificate of Achievement, a governmental entity must publish an easily readable and
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efficiently organized Comprehensive Annual Financial Report. This report must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current Comprehensive
Annual Financial Report continues to meet the Certificate of Achievement Program’s 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 members 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 financial affairs of the
District.
Respectfully submitted,
John Mura
General Manager
Brian W. Tompkins
Chief Financial Officer
EAST VALLEY WATER DISTRICT
Organizational Structure
Year Ended June 30, 2015
5
EAST VALLEY WATER DISTRICT
Principal Officials
Year Ended June 30, 2015
6
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, 2015
Name Title
Elected /
Appointed Current Term
James Morales, Jr. Chairman of the Board Elected 2013 - 2017
Ronald Coats Vice-Chairman of the Board Elected 2013 - 2017
Ben C. Coleman Governing Board Member Elected 2011 - 2015
Chris Carrillo Governing Board Member Appointed 2014 - 2015
Nanette Shelton Governing Board Member Appointed 2014 - 2015
Contact Information
East Valley Water District
John Mura, 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, 2014
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INDEPENDENT AUDITOR’S REPORT
Board of Directors
East Valley Water District
Highland, California
Report on the Financial Statements
We have audited the accompanying financial statements of the East Valley Water District (District), as of
and for the year ended June 30, 2015, and the related notes to the financial statements which collectively
comprise the District’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to error or
fraud.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America, the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States, and the State Controller’s Minimum Audit Requirements
for Special Districts. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor’s judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity’s
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the East Valley Water District, as of June 30, 2014, and the changes in financial
9
position, and cash flows thereof for the year then ended in accordance with accounting principles
generally accepted in the United States of America, as well as accounting systems prescribed by the
State Controller’s Office and State regulations governing special districts.
Other Matters
Prior Year Comparative Information
We have previously audited the District’s 2014 financial statements, and we expressed unmodified audit
opinions on the financial statements in our report dated December 23, 2014. In our opinion, the
summarized comparative information presented herein as of and for the year ended June 30, 2014, is
consistent, in all material respects, with the audited financial statements from which it has been derived.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s
discussion and analysis on pages 11 through XX, and other required supplementary information, as listed
in the Table of Contents, be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting
Standards Board, who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, or historical context. We have applied
certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for
consistency with management’s responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the District’s basic financial statements. The introductory section, the supplementary
information, as listed in the table of contents, and the statistical section, are presented for purposes of
additional analysis and are not a required part of the basic financial statements.
10
The supplementary information, as listed in the table of contents, is the responsibility of management and
was derived from and relates directly to the underlying accounting and other records used to prepare the
basic financial statements. Such information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In
our opinion, the supplementary information, as listed in the table of contents, is fairly stated in all
material respects in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued a report dated December 9,
2015 on our consideration of the District’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on the
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the District’s internal
control over financial reporting and on compliance.
Signature
December 9, 2015
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2015
11
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 delivered 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 of San Bernardino and the County of San
Bernardino in California.
The Basic Financial Statements
East Valley Water District is a special-purpose government 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 Governmental Accounting Standards Board.
The following financial statements for the year ended June 30, 2015 (2014 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 results. They are the Statement of Net Position, the Statement of
Revenue, 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, 2015, the District’s total assets decreased by $5.6 million. The decrease occurred
in Non-Current assets and was approximately the amount of depreciation recorded for the fiscal year. Net
depreciable assets grew only $4.5 million, despite the fact that capital assets placed in service during the year
totaled $11.5 million, including $9.9 million in completed projects transferred from Construction in Progress. Non
depreciable capital assets decreased by $6.6 million, due to the number of construction projects capitalized during
2014-15, which is discussed in more detail in the Capital Assets section of this analysis.
Restricted Cash balances fell from $11.2 to $7.6 million due to two significant factors. Unspent bond proceeds were
spent down $2.9 million to fund the capital projects for which they were received, and contractor retentions of $1.1
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2015
12
million, held at June 30, 2014, were released to contractors upon successful completion and District acceptance of
related capital projects. Restricted Cash balances are further discussed in Note 3 to the financial statements.
East Valley Water District’s Net Position
(in millions)
2015 2014
Current & Other Assets 21.3$ 21.2$
Restricted Cash 7.6 11.2
Capital Assets - Net 151.3 153.5
Total Assets 180.2 185.9
Total Deferred Outflow of Resources 0.9 0.2
Current Liabilities 7.2 9.5
Non-Current Liabilities 59.5 54.6
Total Liabilities 66.7 64.1
Total Deferred Inflows of Resources 1.6 -
Net Position
Net Investment in Capital Assets 98.1 101.8
Restricted 2.3 2.3
Unrestricted 12.4 18.0
Total Net Position 112.8$ 122.1$
Current assets remained relatively flat compared to the end of the prior year, growing just .4%. However, collection
of significant grants receivable outstanding at June 30, 2014 increased the liquidity of current assets held. At the
same time, a decrease in current liabilities due to the absence of significant payables related to construction activity
at year end, allowed the District’s current ratio to increase from 2.2:1 to 2.9:1, and the liquidity ratio to increase
from 1.2:1 at June 30, 2014, to 2.1:1 at June 30, 2015.
Long Term Liabilities increased by $4.9 million due to the recognition of $6.6 million in Net Pension Obligations with
the adoption of Governmental Accounting Standards Board (GASB) statement number 68 Accounting and Financial
Reporting for Pensions. As further explained in Note 8 to the financial statements, the District is required to
recognize its proportionate share of the difference between future pension benefit obligations, and pension assets
held in trust by the California Public Employees Retirement System (PERS) on behalf of District employees,
currently a deficit.
Outstanding debt decreased by $1.7 million as the District made timely scheduled payments to bondholders and
other creditors during fiscal year 2014-15.
The District’s net position totaled $112.8 million at the end of fiscal year 2015, a $9.3 million decrease resulting
from two primary factors. The adoption of GASB 68 stipulated that the District recognize a prior period adjustment
to Unrestricted Net Position of $7.9 million in order to recognize that portion of the Net Pension Obligation,
discussed above, which had accumulated in previous fiscal years. The District also recorded a $2.4 million charge
against Net Position Invested in Capital Assets to expense costs related to an abandoned project further explained
in Note 15 to the financial statements. Looking at longer term results, the District’s total Net Position has increased
$13.9 million, and $32.7 million over five and ten year periods, respectively.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2015
13
At June 30, 2015, $98.1 million of the $112.8 million in net position was invested in capital assets, $2.3 million is
Restricted, and the remaining $12.4 million classified as unrestricted. $2.9 million of the $12.4 million in
unrestricted net position has been designated for emergency and rate stabilization and can only be spent with
authorization from the District’s governing Board.
Activities and Changes in Net Position
Water Operations
In FY 2014-15, the District produced 18,494 acre feet of water and sold 17,431 acre feet to consumers. The
difference of 1,063 acre feet (5.7%) of water was the result of District flushing programs, water use at District
facilities, and system leaks. Water sold reflects a 12.4% decrease in water consumption as customers continued to
respond to District efforts to promote water conservation, made necessary by severe drought conditions caused by
four years of below-average rainfall.
The sustained, regional drought has resulted in dwindling water supplies throughout the State of California, leading
to an Executive Order from the Governor’s Office in Sacramento that water agencies drive consumer conservation
through rebate programs, irrigation watering restrictions, and through assessment of penalties for water waste when
necessary. Further, the State Department of Water Resources has set percentage goals for each water agency in
California, with monthly reporting requirements commencing June 2015, to show that conservation efforts are
achieving significant reduction in water consumption when compared to the same reporting periods during the
2013 year. The goal established for East Valley Water District was 28%.
In July 2014, with conservation mandates and the related revenue volatility on the horizon, the District contracted
with a consultant to conduct a multi-year water rate study. As part of the study, the consultant was asked to model
Water Budget based tiered rates (WBR), and also to model a shift in the percentage of revenues collected from
variable commodity charges toward fixed water system (meter) charges. Water Budget rates are designed to
allocate to each customer, sufficient water to meet efficient water needs for indoor and outdoor use based on the
unique characteristics of each customer’s household and irrigated landscape. Water usage within the allocations, or
budgets, is then billed at the lowest priced tiers 1 and 2, with inefficient water usage in excess of established
budgets billed at higher priced tiers.
In March 2015, the District adopted Water Budget based rates with an effective date of June 1, 2015. In addition,
the adopted rate structured was designed to stabilize revenue with a goal of collecting approximately 40% of
revenue from fixed system charges, and the remaining 60% from tiered (water budget) commodity charges.
With new rates effective for only one month during the 2014-15 fiscal year, conservation efforts caused water
operating revenues to fall 7.3% to $19.2 million, compared to $20.7 million recognized in the prior fiscal year.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2015
14
The drop in water production, along with energy efficiency measures implemented in the prior year, also resulted in
water operating costs savings. Pumping costs fell $386 thousand, including $152 thousand in energy cost savings
despite the fact that Edison rate increases of 15% were effective during the year. In addition, Treatment costs fell
$794 thousand as a result of the District cancelling contracts for wellhead treatment units, which included take-or-
pay minimum treatment quantities, and producing water from sources with lesser treatment requirements.
Source of supply costs increased 4% primarily due to labor charges, which were higher due to negotiated pay rate
adjustments that were effective at the beginning of the fiscal year. In addition, the District’s participation in an in-lieu
program with the basin water master, required that the District produce more water from wells during the 2014
summer months, rather than take water from the Santa Ana River. This program also increased wellhead chemical
and power costs. Reimbursement of those costs by the watermaster was recorded as non-operating revenue.
Transmission and Distribution costs increased 42% to $2.0 million as pipeline crews addressed 92 main leaks and
148 service line leaks while trying to maintain preventative maintenance program goals for system flushing and
valve exercising. Labor costs increased significantly due to negotiated wage adjustments, and to overtime required
to respond to significant leaks during off-hours. Contract costs for repaving street surfaces, and the cost for fill
materials also increased by $155 thousand, or 32%, collectively. The District’s Capital Improvement Program budget
for 2015-16 includes three water pipeline replacement projects to begin to address the excessive number of leaks
occurring in older sections of the District service area.
Sewer Operations
Sewer operating revenues consist of System Charges and Treatment Charges. 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.
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Water Department Operating
Revenue versus Expenses
Revenue
Expenses
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2015
15
Treatment Charge rates are established by the City of San Bernardino Water Department, which treats the
wastewater produced by the District’s customers – the District currently has no wastewater treatment facilities. All
wastewater treatment revenues collected by the District are directly offset by payments to the City of San
Bernardino Water Department, therefore, sewer treatment has no net effect on the District’s operating results.
Sewer operating revenues fell 3.1% to $11.5 million during fiscal year 2014-15 as a result of lower water usage.
Commercial customers, which includes multi-family residential complexes larger than 4 units, are billed for sewer
charges based on water consumption. Therefore, the 12.4% decrease in water consumption discussed above, had a
related impact on sewer revenue. A complete list of sewer rates in effect for the last 10 years is included in the
statistical section at the end of this document.
Wastewater collection line maintenance increased by 149% as the District returned to an aggressive schedule of
video monitoring and inspecting lines in order to mitigate the risk of sewer system backup and overflows. In the
prior year, the District had planned to stretch this program from three to five year cycle, periodically redeploying
program employees to other tasks, but the rate at which lines can deteriorate, or be compromised by seismic
activity or tree roots, caused the District to return to a three year schedule in order to maintain system integrity.
Wastewater treatment costs fell $290 thousand (4%) as a result of lower water sales. Commercial customer
accounts are billed for wastewater treatment based on water usage. Ultimately, wastewater treatment costs are
directly offset by charges to customers on behalf of the San Bernardino Water Department, therefore, fluctuations in
the cost for wastewater treatment services have no effect on the District’s operating results.
Customer Accounts (Water & Sewer Operations) increased 22% to $1.9 million primarily in three cost classifications
– labor, contract services, and professional development. Labor cost increases of $116 thousand were the result of
a salary adjustments per a Memorandum of Understanding finalized with employees in July 2014. Contract services
increased $210 thousand due to the transfer of all payment card, and other electronic payment charges from
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Sewer Department Operating
Revenue versus Expenses
Revenue
Expenses
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2015
16
General and Administrative expense to Customer Accounts, and increases to Professional Development were
related to a contract with an outside consultant to implement a Customer Service Excellence program.
Administrative and general costs for the District increased just .6% to $7.9 million. Significant changes in general
and administrative costs included:
1) Salaries and Benefits increased 3.5% to $4.6 as a result of salary and wage adjustments per the
Memorandum of Understanding discussed above.
2) Contractual services decreased by $230 thousand as full-time employees increasingly performed work
previously tasked to consultants, while legal services increased by 44% as the District continued to review
and restructure agreements, review contracts related to wastewater treatment and water rights, and
increased efforts to clear title on vacant land.
3) Professional development costs increased by 21.8% due to an increased emphasis on certifications,
education, and training amongst staff.
Depreciation expense recorded by the District’s water department increased from $4.4 million to $4.9 million due to
1) the capitalization and beginning depreciation of $10 million in utility plant, and 2) shorter useful lives being used
to estimate annual depreciation of pumps, valves and other mechanical components capitalized as part of a larger
utility plant assets. Wastewater department depreciation expense decreased from $1.1 million to $0.8 million as the
prior year included accelerated charges related to the abandonment of leasehold improvements when the District
moved into its new headquarters building in February 2014.
Non-Operating Activities
The District’s non-operating revenue of $901 thousand includes investment earnings of $100 thousand, discussed
below, and $800 thousand in other income. Other income includes quarterly remittances from energy purveyors,
totaling $188 thousand, for participation in demand response programs, whereby the District takes designated
plants off-line when power grids are approaching capacity, and a one-time reimbursement of $442 thousand from
the basin water master for participation in an in-lieu program that required the District to produce from wells, rather
than taking guaranteed water deliveries from the Santa Ana River between June and November of 2014.
Non-operating expenses include $1.6 million in interest on District long-term obligations and $135 thousand in
amortization of deferred amounts from the refunding of District debt in 2010.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2015
17
East Valley Water District Changes in Net Position
(in millions)
2015 2014
Water Revenues 19.2$ 20.7$
Water Operating Expenses (17.8) (17.7)
Sewer Services 11.5 11.9
Sewer Operating Expenses (11.3) (11.5)
Non-Operating Revenues 0.9 0.4
Non-Operating Expenses (2.0) (2.6)
Income Before Contributions & Special Item 0.5 1.2
Developer Contributions - 1.9
Grant Funds Contributed 0.6 4.5
Special Item - Abandoned Projects (2.4) -
Change in Net Position (1.3) 7.6
Beginning Net Position 122.1 114.5
Prior Period Adjustment (8.0) -
Ending Net Position 112.8$ 122.1$
Investment earnings increased as yields and unrestricted investible funds grew in 2014-15. The Apportionment rate
paid by the California Local Agency Investment Fund rose 6 basis points to .28% during fiscal year 2015. In
addition, the District was able to build unrestricted cash and investments $1.9 million by concentrating resources
on the completion of projects that were reimbursable by grant funding, or by unspent bond proceeds.
Capital Contributions and Transfers
Contributions received during 2014-15 included $11 thousand in developer capacity fees, and $586 thousand in
reimbursements for two grant funded projects. The first reimbursement was the final claim related to a project to
consolidate a mutual water company into the District’s service area, and the second was awarded to the District
during the fiscal year to reimburse costs related to the implementation of water budget based rates, which
significantly assist with water conservation efforts.
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 of Net Investment in Capital Assets are presented in Note 7 to the accompanying financial
statements. The balance at June 30, 2015 is $98.1 million, a decrease of $3.7 million compared to June 30, 2014.
The decrease resulted from the acquisition or construction of capital assets for $2.7 million, and a decreases in
outstanding debt of $1.7 million, offset by a decrease in unspent bond proceeds of $3.2 million, and an increase in
accumulated depreciation of $4.9 million.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2015
18
Restricted
Restricted Net Position increased by $47 thousand during the year ended June 30, 2015. This amount includes
capacity fees collected from developers totaling $11 thousand, and restricted assessments collected from North
Fork Water Company shareholders which are restricted for future capital improvement projects By law Capacity
fees are restricted for use on plant expansion capital projects, or debt service on such projects. Further, under the
District’s Designated Funds Policy, use of restricted funds for a certain capital project must be approved by the
Board of Directors.
Unrestricted
Unrestricted Net Position is the balance after amounts to be classified as Invested in Capital Assets or Restricted
have been determined. Unrestricted Net Position decreased $5.5 million to $12.5 million in 2014-15, primarily due
to the implementation of Governmental Accounting Standards Board Statement No. 68 and the recognition of a
related $7.9 million prior period adjustment to record a Net Pension Obligation related to the District’s pension plan.
Capital Assets
The District spent approximately $6.0 million for expansion or replacement of property, plant, and equipment during
2014-2015. These amounts are reflected in Utility Plant, or as additions to Construction in Progress, in the
accompanying financial statements.
Following is a discussion of the facilities and equipment constructed and purchased.
Placed in Service
During the 2014-2015 fiscal year, District staff, consultants, and contractors completed work on the following:
Efficiency upgrades to pumps and pipeline choke points, and updates to SCADA radios and programming
at 9 plants
Distribution system replacement for, and consolidation of, a 450 service mutual water company into the
District’s service area
Replacement of 2,000 lineal feet of 6” main in Live Oak Road, and of pipelines to, and returning from, a
nearby storage tank
Replacement of 120’ lineal feet of 10” pipeline at the District’s intake facilities for water from the Santa Ana
River
Construction in Progress (CIP)
Construction in progress decreased $6.7 million to $9.3 million (see note 4) between June 30, 2014 and June 30,
2015. With approximately 70 jobs in progress, additions to CIP totaled $5.8 million, while $9.9 million was
capitalized and transferred to fixed assets, and an additional $2.6 million was charged as a current year expense or
write off, as further discussed in Note 15 to the financial statements.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2015
19
Utility Plant in Service – June 30th
(in millions)
Department 2015 2014
Water
Source of Supply 16.5$ 15.2$
Pumping 11.9 10.3
Transmission & Distribution 89.2 82.8
Treatment 25.0 25.0
Wastewater
Collection Lines 25.4 25.4
General
Buildings & Improvements 18.0 18.0
Equipment 7.1 7.0
Total 193.1$ 183.7$
Of the $9.3 million remaining in CIP at June 30, 2015, 80% is related to three projects, including:
1. Construction of a 30” pipeline connecting wells in the District’s lower pressure zone to pumping and
storage facilities in the District’s Intermediate and Upper pressure zones. This pipeline, which will facilitate
off peak hour water production and operational efficiency, is substantially complete and will be placed in
service in the 2015-16 fiscal year.
2. Upgrade of booster pumps at the District’s Plant 40. Plant 40 is in the center of the District’s services area
and is a key location for boosting water throughout the District’s distributions system from current and
future water supply facilities. The project is substantially complete and will be placed in service during the
2015-16 fiscal year.
3. Conceptual design, environmental and financing package costs related to a water reclamation facility which
has been named the Sterling Natural Resource Center. The facility would capture, treat, and recycle all of
the wastewater flows generated by District customers. Treated water produced by the plant would be used
to recharge the Bunker Hill Basin from which the District produces groundwater.
Preliminary concepts for the plant include a first phase with a capacity of 6 million gallons per day (mgd), which
could be expanded to 10 mgd in a second phase giving the District the capability to provide treatment services to
significant housing developments being planned within the District’s service area. The project will also include
ancillary pipelines and lift stations to deliver wastewater to the plant, and recycled water pipelines to deliver the
treated water to recharge basins.
The District has partnered with the San Bernardino Valley Municipal Water District (Valley District) by entering into
an Agreement for the Construction and Operation of Groundwater Replenishment Facilities. Under terms of the
agreement, Valley District will act as lead agency for construction and operation of the project, while East Valley
Water District will retain ownership of the project and the recycled water produced, and will finance the full cost of
the project. A financing application package is being prepared for submittal to the State of California Department of
Water Resources in order to utilize grants and low interest loans to fund all or a portion of this important water
reclamation project.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2015
20
Future Capital Improvements - Water
The District’s ability to meet water quality requirements, implement conservation measures, and increase
efficiencies in conducting District business are the driving forces by which District management develops long term
capital plans.
The District is working collaboratively with the San Bernardino Valley Municipal Water District (Muni) on the design
and installation of a new state water project turnout, and two new conjunctive use wells that would supply water to
the District. The turnout at Plant 134 would allow the District to take delivery of more wholesale water from Muni at
their Tier 1 water rate, currently $125 per acre foot. The wells, which will be located in the lower end of the Bunker
Hill groundwater basin, will be part of a network of wells designed to control regional groundwater levels and will
reduce the cost to produce water for the District.
Future Capital Improvements - Wastewater
The District’s Wastewater Collection System Master Plan, updated in 2014, identified areas in the District where
wastewater pipelines were susceptible to surcharging during heavy rains and therefore could not accept additional
flows from new development. Based on the Master Plan recommendations, the District has included two pipeline
capacity projects in it’s 5 year capital improvement program, to facilitate new development and enhance system
redundancy in the event of emergency.
Long Term Debt / Credit
The District’s long-term debt consists of Revenue Bonds issued through the East Valley Water District Financing
Authority (Authority), a blended component unit, design and construction loans from the California Department of
Water Resources, and a capital lease purchase with US Bank for construction or installation of energy conservation
measures (ECM). Outstanding balances as of June 30, 2015 were as follows:
2010 Refunding Revenue Bonds 28,845,000$
2013 Revenue Bonds 12,085,000
DWR Loan - Arroyo Verde 104,812
DWR Loan - Eastwood Farms 364,450
DWR Loan - Plant 134 7,001,964
DWR Loan - Plant 150 Design 70,000
US Bank Lease Purchase - ECMs 3,671,849
Total 52,143,075$
As explained in Note 5 to the accompanying financial statements, proceeds from the 2010 and 2013 revenue bonds
were used to retire debt previously issued by the District (2010 bonds only) and to construct water and sewer
capital projects.
DWR loans for the Arroyo Verde and Eastwood Farms water company consolidation projects are ultimately the
obligation of property owners within Assessment Districts that replaced those water companies previously operating
independently within the District’s service area. Semi- annual loan payments are paid by assessments on property
within the assessment district.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2015
21
Other DWR loans include $7,001,964, payable over 30 years at 0% interest, for upgrade of the District’s Plant 134,
and $70,000, payable over 5 years at 0%, used to help pay for the design of a new treatment plant in the District’s
lower pressure zone.
The Lease Purchase Agreement with US Bank was entered into in November 2013 to finance the construction of
energy conservation projects recommended by an Energy and Operational Efficiency Study prepared by Honeywell.
The lease is payable in semi-annual installments over 10 years at an interest rate of 2.38%.
All scheduled debt payments for fiscal year 2014-15 were paid timely.
Standard & Poor’s and Fitch rated the EVWDFA 2013 Revenue Bonds at the time of issuance. Both agencies gave
the bonds a rating of AA-. Fitch affirmed their rating of AA- in May 2015 after having conducted an industry, and
agency specific, review of the effects of the drought on water agency revenues and financial condition. Dun &
Bradstreet, based on audited financial statements and creditor input, also rates 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 March 25th, 2015, the District adopted a new Water Budget based rate structure, moving from a uniform rate
charged for every unit (hundred cubic feet or 748 gallons) of water used, to a tiered rate structure in which
consumers pay increasingly higher rates as they use more water during a billing period. The District adopted 3 rate
tiers, each supported by the increased cost of supplying water as consumer demands on the water distribution
system increase.
-
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
Outstanding Long-Term Debt June 30th
2013 Bonds
2010 Bonds
Inst Purchase
DWR Loans
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2015
22
The new rate structure includes scheduled rate adjustments to occur on June 1, 2015, and on July 1 of both years
2016 and 2017.
In addition, the City of San Bernardino adopted rate increases for sewer treatment, to be implemented in three
phases in 2015, 2016, and 2017. As the District currently relies on the City to treat wastewater generated by District
customers, it is obliged to adopt the City’s rate increases. The District can implement the new sewer rates utilizing
the provisions of California AB 2567, which allows the District to treat the increases as a pass-through of costs it
has no control over, rather than having to follow public notice and hearing procedures established by California
Proposition 218.
Additional information about the District’s Water Budget based rate structure 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.
[This page intentionally left blank]
EAST VALLEY WATER DISTRICT
Statement of Net Position
Year Ended June 30, 2015
23
For Comparative
Purposes Only
2015 2014
ASSETS
Current Assets:
Cash and Cash Equivalents 10,081,755$ 6,431,784$
Investments 5,185,067 4,746,981
Accounts Receivable, Net 3,323,976 4,035,153
Interest Receivable 9,273 4,513
Other Receivables 140,787 86,208
Due from Other Governments 1,771,368 5,160,885
Inventor y 297,803 256,866
Prepaid Expenses 84,737 81,547
Total Current Assets 20,894,766 20,803,937
Non-Current Assets:
Restricted Cash and Cash Equivalents 7,567,927 11,175,115
Assessments Receivable 434,355 441,817
Capital Assets not being Depreciated 22,561,578 29,228,410
Capital Assets, Net (Note 4) 128,787,082 124,279,104
Total Non-Current Assets 159,350,942 165,124,446
Total Assets 180,245,708 185,928,383
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding 174,353 227,721
Deferred Outflows - Pensions 757,176 -
Total Deferred Outflows Of Resources 931,529 227,721
Total Assets and Deferred Outflows
of Resources 181,177,237$ 186,156,104$
(Continued)
The accompany notes are an integral part of this statement.
EAST VALLEY WATER DISTRICT
Statement of Net Position - Continued
Year Ended June 30, 2015
24
For Comparative
Purposes Only
2015 2014
LIABILITIES
Current Liabilities:
Accounts Payable and Accrued Expenses 1,961,253$ 3,198,175$
Accrued Payroll and Benefits 422,698 262,224
Customer Service Deposits 1,727,286 1,848,421
Construction Advances and Retentions 219,311 1,305,081
Accrued Interest Payable 505,012 538,723
Current Portion of Compensated Absences 308,252 332,083
Current Portion of Long-Term Debt 2,060,605 1,966,959
Total Current Liabilities 7,204,417 9,451,666
Non-Current Liabilities:
Compensated Absences, Less Current Portion 456,412 339,021
Net Pension Liability 6,615,935 -
Long-Term Debt, Less Current Portion 52,468,718 54,295,923
Total Non-Current Liabilities 59,541,065 54,634,944
Total Liabilities 66,745,482 64,086,610
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Pensions 1,616,878 -
Total Liabilities and Deferred
Inflows Of Resources 68,362,360 64,086,610
NET POSITION
Net Investment in Capital Assets 98,091,685 101,757,787
Restricted for:
Future Capital Expansion Projects 2,322,238 2,274,769
Unrestricted 12,400,954 18,036,938
Total Net Position 112,814,877$ 122,069,494$
The accompany notes are an integral part of this statement.
EAST VALLEY WATER DISTRICT
Statement of Revenues, Expenses, and Changes in Net Position
Year Ended June 30, 2015
25
For Comparative
Purposes Only
2015 2014
OPERATING REVENUES
Water Sales 13,505,159$ 15,351,609$
Sewer Treatment Charges 6,907,828 7,197,418
System Charges 9,405,936 9,353,248
Other Charges 924,522 718,302
Total Operating Revenues 30,743,445 32,620,577
OPERATING EXPENSES
Water Department:
Source of Supply 2,988,115 2,875,518
Pumping 606,791 992,555
Treatment 722,211 1,516,412
Transmission and Distribution 2,049,667 1,437,831
Customer Accounts 982,919 786,884
Total Water Department 7,349,703 7,609,200
Wastewater Department:
WastewaterTreatment 6,907,828 7,197,418
Wastewater Collection 440,151 312,193
Customer Accounts 925,762 769,252
Total Wastewater Department 8,273,741 8,278,863
Administrative and General 7,898,997 7,795,395
Operating Expenses Before Depreciation 23,522,441 23,683,458
Depreciation 5,623,898 5,507,718
Total Operating Expenses 29,146,339 29,191,176
Operating Income (Loss) 1,597,106$ 3,429,401$
(Continued)
The accompany notes are an integral part of this statement.
EAST VALLEY WATER DISTRICT
Statement of Revenues, Expenses, and Changes in Net Position - Continued
Year Ended June 30, 2015
26
2015 2014
NON-OPERATING REVENUES (EXPENSES)
Investment Income 100,830$ 49,846$
Cooperative Agreements
Grants
Claims / Settlements
Other Income (Loss) 800,278 334,700
Interest Expense (1,827,007) (1,917,676)
Amortization (153,055) (99,688)
Loss on Disposal of Assets - (606,085)
Total Non-Operating Revenues (Expenses) (1,078,954) (2,238,903)
Income Before Contributions and
Special Item 518,152 1,190,498
CONTRIBUTIONS
Capacity Charges 11,339 1,849,250
Capital Grants 585,601 4,520,640
Total Contributions 596,940 6,369,890
SPECIAL ITEM
Abandoned Project (2,413,478) -
CHANGE IN NET POSITION (1,298,386) 7,560,388
TOTAL NET POSITION, BEGINNING 122,069,494 114,509,106
PRIOR PERIOD ADJUSTMENT (7,956,231) -
TOTAL NET POSITION, ENDING 112,814,877$ 122,069,494$
The accompany notes are an integral part of this statement.
EAST VALLEY WATER DISTRICT
Statement of Cashflows
Year Ended June 30, 2015
27
For Comparative
Purposes Only
2015 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 30,247,717$ 32,930,091$
Cash Payments for Employees Services (8,089,209) (6,865,272)
Cash Payments to Suppliers (16,940,840) (16,134,792)
Cash from Other Sources 708,386 450,314
Net Cash Provided (Used) by
Operating Activities 5,926,054 10,380,341
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Grant Funds Received 3,975,118 918,157
Contributed Capital 11,339 1,849,250
Principal Paid on Capital Debt (1,633,871) (1,245,934)
Interest Paid on Capital Debt (2,043,098) (1,861,481)
Acquisition of Capital Assets (5,878,522) (27,271,657)
Net Cash Used for Capital and
Related Financing Activites (5,569,034) (27,611,665)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received from Investments 78,274 35,031
Acquisition of Investments (3,241,537) (2,497,866)
Proceeds from Sale of Investments 2,804,251 2,645,189
Loan Collections 44,775 20,884
Net Cash Provided (Used) by
Investing Activities (314,237) 203,238
Net (Decrease) Increase in Cash
and Cash Equivalents 42,783 (17,028,086)
Cash and Equivalents, Beginning of Year 17,606,899 34,634,985
Cash and Equivalents, End of Year 17,649,682$ 17,606,899$
RECONCILIATION TO STATEMENT OF NET POSITION
Cash and Cash Equivalents 10,081,755$ 6,431,784$
Restricted Cash and Cash Equivalents 7,567,927 11,175,115
Total Cash and Cash Equivalents 17,649,682$ 17,606,899$
(Continued)
The accompany notes are an integral part of this statement.
EAST VALLEY WATER DISTRICT
Statements of Cash Flows - Continued
Year Ended June 30, 2015
28
For Comparative
Purposes Only
2015 2014
Reconciliation of Operating Income to Net
Cash Provided by Operating Activities
Operating Income (Loss) 1,597,106$ 3,429,401$
Adjustments to Reconcile Operating
Income to Net Cash Provided by
Operating Activities:
Depreciation 5,623,898 5,507,718
Miscellaneous Income 800,278 450,314
Change in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable 711,177 (519,506)
(Increase) Decrease in Other Receivables (91,892) -
(Increase) Decrease in Inventory (40,937) 79,436
(Increase) Decrease in Prepaids (3,189) 56,164
Decrease in Deferred Outflows of Resrcs 64,856 -
Increase (Decrease) in Accounts Payable (1,236,922) 471,459
Increase (Decrease) in Accrued Salaries
and Benefits 160,475 18,825
Increase in Compensated Absences 93,559 57,510
Decrease in Net Pension Liability (2,162,327) -
Increase in Deferred Inflows of Resources 1,616,877 -
Decrease in Customer Deposits (121,135) 137,288
Decrease in Developer Deposits (1,085,770) 691,732
Total Cash Provided (Used)
by Operating Activities 5,926,054$ 10,380,341$
NON-CASH INVESTING, CAPITAL, AND NONCAPITAL
FINANCING ACTIVITIES:
Write off Abandoned Project Costs (2,413,478)$ -$
Capital Assets Contributed by Developers 800$ -$
The accompany notes are an integral part of this statement.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
29
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A) Reporting Entity
The East Valley Water District (the District) is a special district 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 25 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 in
order to secure rights to the Santa Ana River water and have it delivered to the District's surface water
treatment plant. At June 30, 2015, the District owned 5,904.49 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 Finance
Department at 31111 Greenspot Road, Highland, California 92346.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
30
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
Financing
District NFWC Authority Eliminations Total
Statement of Net Position
Current Assets 20,878,799$ 15,967$ 479,397$ (479,397)$ 20,894,766$
Capital Assets 149,787,365 3,047,177 - (1,485,882) 151,348,660
Other Assets 7,776,851 225,431 40,930,000 (40,930,000) 8,002,282
Deferred Outflows 931,529 - - - 931,529
Total Assets & Deferred Outflows 179,374,544 3,288,575 41,409,397 (42,895,279) 181,177,237
Current Liabilities 7,134,490 69,927 479,397 (479,397) 7,204,417
Long-Term Liabilities 59,541,065 - 40,930,000 (40,930,000) 59,541,065
Deferred Inflows 1,616,878 - - - 1,616,878
Total Liabilities & Deferred Inflows 68,292,433 69,927 41,409,397 (41,409,397) 68,362,360
Net Investment in Capital Assets 96,530,390 3,047,177 - (1,485,882) 98,091,685
Restricted Net Position 2,150,767 171,471 - - 2,322,238
Unrestricted Net Position 12,400,954 - - - 12,400,954
Total Net Position 111,082,111$ 3,218,648$ -$ (1,485,882)$ 112,814,877$
Statement of Changes in Net Position
Sales and Services 29,818,923 - - - 29,818,923
Other Operating Revenue 924,522 - - - 924,522
Operating Expenses (23,400,929) (121,512) - - (23,522,441)
Depreciation (5,569,060) (54,838) - - (5,623,898)
Operating Income 1,773,456 (176,350) - - 1,597,106
Net Non-Operating Revenue
(Expenses) (1,272,240) 193,286 - - (1,078,954)
Capital Contributions 596,940 - - - 596,940
Special Items (2,413,478) - - - (2,413,478)
Change in Net Position (1,315,322) 16,936 - - (1,298,386)
Beginning Net Position 120,353,664 1,715,830 - - 122,069,494
Prior Period Adjustment (7,956,231) - - - (7,956,231)
Ending Net Position 111,082,111$ 1,732,766$ -$ -$ 112,814,877$
Statement of Cash Flows
Net Cash from Operating Activities 5,793,148 132,906 - - 5,926,054
Net Cash from Capital and Related
Financing Activities (5,533,391) (35,643) 3,181,988 (3,181,988) (5,569,034)
Net Cash from Investing Activities (315,228) 991 (3,181,988) 3,181,988 (314,237)
Beginning Cash and Equivalents 17,484,855 122,044 - - 17,606,899
Ending Cash & Equivalents 17,429,384$ 220,298$ -$ -$ 17,649,682$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
31
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 generally accepted accounting principles.
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. Capital assets contributed to the
District are recorded at estimated fair value. The estimated fair value, determined by the District's engineer, is
the amount the District would have to pay for construction of comparable facilities. 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 sewer 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) Reclassifications
Certain reclassifications have been made to the prior year information to conform to the current year
presentation.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
32
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
G) 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.
H) 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.
I) Investments
The District has adopted the provisions of GASB Statement No. 31, Accounting and Financial Reporting for
Certain Investments and External Pools (GASB 31), which require governmental entities to report certain
investments at fair value in the statement of net position and recognize the corresponding change in the fair
value of investments in the year in which the change occurred.
J) 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 two items which qualify for reporting in this
category; Deferred Charge on Refunding and Deferred Outflows related to Pensions.
In addition to liabilities, the statement of financial position will sometimes report a separate section for
deferred inflows of resources. This separate finanancial 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 one item which qualify for reporting in this
category; Deferred Inflows related to Pensions.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
33
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
K) 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 40 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 that obtain
196 unused sick hours can cash out 40 hours at their discretion. 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.
L) 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 also 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.
M) 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.
N) 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.
O) 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 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. Investments are reported at fair value.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
34
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
P) Future Accounting Pronouncements
GASB Statement Nos. 72 - 76 listed below will be implemented in future financial statements:
Table 1-2
GASB Statement Description Effective Date
Statement No. 72 Fair Value Measurement and
Application
The requirements of this statement are
effective for financial statements for reporting
periods beginning after June 15, 2015. Earlier
application is encouraged.
Statement No. 73 Accounting and Financial Reporting
for Pensions and Related Assets that
are not within the Scope of GASB
Statement 68, and Amendments to
Certain Provisions of GASB
Statements 67 and 68
The provisions in Statement 73 are effective
for fiscal years beginning after June 15, 2015 –
except those provisions that address
employers and governmental non-employer
contributing entities for pensions that are not
within the scope of Statement 68, which are
effective for fiscal years beginning after June
15, 2016. Earlier application is encouraged.
Statement No. 74 Financial Reporting for Post-
employment Benefit Plans other than
Pension Plans
The provisions in Statement 74 are effective
for fiscal years beginning after June 15, 2016.
Earlier application is encouraged.
Statement No. 75 Accounting and Financial Reporting
for Post-employment Benefits other
than Pensions
The provisions in Statement 75 are effective
for fiscal years beginning after June 15, 2017.
Earlier application is encouraged.
Statement No. 76 The Hierarchy of Generally
Accepted Accounting Principles for
State and Local Governments
The provisions in Statement 76 are effective
for reporting periods beginning after June 15,
2015. Earlier application is encouraged.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
35
2) CASH AND INVESTMENTS
Cash and Investments as of June 30, 2015 are classified in the accompanying financial statements as follows:
Table 2-1
Cash and Cash Equivalents 10,081,755$
Restricted Cash and Cash Equivalents 7,567,927
Investments 5,185,067
Total 22,834,749$
Cash and investments as of June 30, 2015 consist of the following:
Table 2-2
Cash on Hand 10,750$
Deposits with Financial Institutions 1,163,125
Money Market Accounts with Financial Institutions 3,358,287
Investment in Local Agency Investment Fund 13,117,520
Investment in Debt Securites 5,185,067
Total Cash and Investments 22,834,749$
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
Authorized
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, 2015, 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 through
the use of reverse repurchase agreements.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
36
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, 2015, the District had the following investments and maturities:
Table 2-4
Investment Type Fair Value
Average
Maturity
Freddie Mac 263,469$ 2.10 years
GNMA 39,940 1.32 years
Federal Home Loan Bank 2,798,335 2.96 years
Federal Farm Credit Bank 601,001 2.15 years
US Treasury 1,309,250 2.74 years
Tenn Valley Authority 173,072 1.21 years
LAIF 13,117,520 N/A
Money Market Mutual Funds 3,558,287 N/A
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 263,469$ N/A -$ 263,469$ -$
GNMA 39,940 N/A 39,940 - -
Federal Home Loan Bank 2,798,335 N/A - 2,798,335 -
Federal Farm Credit Bank 601,001 N/A - 601,001 -
US Treasury 1,309,250 N/A 1,309,250 - -
Tenn Valley Authority 173,072 N/A - 173,072 -
LAIF 13,117,520 N/A - - 13,117,520
Money Market Mutual Funds 3,358,287 N/A - 3,358,287 -
21,660,874$ 1,349,190$ 7,194,164$ 13,117,520$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
37
2) CASH AND INVESTMENTS – Continued
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, 2015, 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.
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, 2015, the District had $569,205 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, 2015, the carrying amount (at amortized cost) of
the pool was $69,606,487,716 and the estimated fair value of the pool was $69,641,162,418. The District's
proportionate share of the fair value (as determined by LAIF) as of June 30, 2015, was $13,117,520. Included
in LAIF's investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-
backed securities, loans to certain State funds, and floating rate securities issued by federal agencies,
government-sponsored enterprises, and corporations.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
38
3) RESTRICTED CASH AND CASH EQUIVALENTS
Restricted cash and cash equivalents at June 30, 2015 are restricted as follows:
Table 3-1
Held for Debt Service 1,981,800$
Construction Project Financing Proceeds 1,268,465
Capacity Fees from Developers 2,150,767
Customer Deposits 1,727,286
Construction Advances 219,311
North Fork Water Company 220,298
Total 7,567,927$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
39
4) CAPITAL ASSETS
A summary of changes in capital assets for the year ended June 30, 2015 is as follows:
Table 4-1
Beginning of End of
Year Additions Deletions Year
Water Fund
Non-Depreciable Assets
Land and Easements 8,563,144$ -$ -$ 8,563,144$
Water Rights 727,585 11,250 - 738,835
Construction in Progress 15,941,721 4,419,022 (12,410,322) 7,950,421
Total Non-Depreciable Assets 25,232,450 4,430,272 (12,410,322) 17,252,400
Depreciable Assets
Source of Supply 15,272,991 1,292,404 (74,501) 16,490,894
Pumping Plant 10,344,063 1,749,333 (138,462) 11,954,934
Treatment Plant 24,982,019 - - 24,982,019
Transmission and Distribution Plant 82,782,712 6,452,620 - 89,235,332
General Plant 15,439,857 627,827 (176,250) 15,891,434
Total Depreciable Assets 148,821,642 10,122,184 (389,213) 158,554,613
Accumulated Depreciation
Source of Supply (4,229,143) (507,511) 74,501 (4,662,153)
Pumping Plant (4,033,538) (450,884) 138,462 (4,345,960)
Treatment Plant (5,001,565) (1,221,417) - (6,222,982)
Transmission and Distribution Plant (28,557,554) (2,126,781) - (30,684,335)
General Plant (2,815,314) (561,977) 176,250 (3,201,041)
Total Accumulated Depreciation (44,637,114) (4,868,570) 389,213 (49,116,471)
Water Fund Capital Assets, Net 129,416,978 9,683,886 (12,410,322) 126,690,542
Sewer Fund
Non-Depreciable Assets
Land and Easements 3,921,962 - - 3,921,962
Construction in Progress 73,998 1,380,284 (67,066) 1,387,216
Total Non-Depreciable Assets 3,995,960 1,380,284 (67,066) 5,309,178
Depreciable Assets
Wastewater Collection Plant 25,373,510 - - 25,373,510
General Plant 9,534,781 9,690 (156,381) 9,388,090
Total Depreciable Assets 34,908,291 9,690 (156,381) 34,761,600
Accumulated Depreciation
Wastewater Collection Plant (12,415,425) (447,782) - (12,863,207)
General Plant (2,398,290) (307,544) 156,381 (2,549,453)
Total Accumulated Depreciation (14,813,715) (755,326) 156,381 (15,412,660)
Sewer Fund Capital Assets, Net 24,090,536 634,648 (67,066) 24,658,118
Total Capital Assets, Net 153,507,514$ 10,318,534$ (12,477,388)$ 151,348,660$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
40
5) LONG-TERM DEBT
The schedule below summarizes changes in long-term debt during the year ended June 30, 2015:
Table 5-1
Beginning
Balance Additions
Retirements/
Payments
Ending
Balance
Current
Portion
Long-Term
Portion
2010 Refunding Bonds 30,110,000$ -$ (1,265,000)$ 28,845,000$ 1,315,000$ 27,530,000$
Unamortized Premium 1,910,285 - (80,741) 1,829,544 80,741 1,748,803
2013 Refunding Bonds 12,085,000 - - 12,085,000 - 12,085,000
Unamortized Premium 614,844 - (20,300) 594,544 20,300 574,244
Unamortized Discount (39,193) - 1,353 (37,840) (1,353) (36,487)
U.S. Bank Lease Purchase 3,998,560 - (326,711) 3,671,849 372,740 3,299,109
Dept Water Resources Contracts
AVAD Construction 111,574 - (6,762) 104,812 6,762 98,050
Plant 134 Construction 7,001,964 - - 7,001,964 233,399 6,768,565
Plant 150 Design 90,000 - (20,000) 70,000 20,000 50,000
EFAD Construction 377,466 - (13,016) 364,450 13,016 351,434
Capital Lease 2,382 - (2,382) - - -
Total 56,262,882$ -$ (1,733,559)$ 54,529,323$ 2,060,605$ 52,468,718$
2010 Refunding Revenue Bonds
On October 29, 2010, the District issued $33,545,000 of East Valley Water District Financing Authority
Refunding Revenue Bonds, Series 2010 (2010 Bonds), with interest rates ranging from 2.00% to 5.00%. The
purpose for issuing the 2010 Bonds was to provide $16,000,000 for future capital improvements, and for
refunding virtually all of the Districts outstanding long-term debt. The refunded debt included 1) $5,935,000
in 2001 Certificates of Participation bearing interest rates ranging from 4.25% to 5.00%, 2) a $7,867,528
balance on a 2004 Installment Sale Note bearing interest at 4.50%, and 3) a $5,109,854 balance on a 2006
Installment Sale Note bearing interest at 4.95%.
The refunding portion of the 2010 Bonds ($17,170,000) were issued at a premium of $1,630,726, and after
paying issuance costs of $318,849, net proceeds were $18,481,877. The net proceeds, combined with a
$920,318 sinking fund for 2001 COP debt service, were sufficient to accomplish the refunding of the
existing debt.
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 Resoures and is being charged to operations through the year 2024 using the straight-line
method of amortization.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
41
5) LONG-TERM DEBT - Continued
2013 Revenue Bonds
On June 19, 2013 the District issued $12,085,000 of East Valley Water District Financing Authority Revenue
Bonds, Series 2013 (2013 Bonds), with interest rates ranging from 4.00% to 5.00%. The purpose for issuing
the 2013 Bonds was to provide financing for water and wastewater capital improvements, primarily
construction of a new administration and operations headquarters complex.
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), in order 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 2.38%. Semi-
annual payments are $226,398, to commence on September 2014 through March 2024.
Department of Water Resources Contract 00C412 - Arroyo Verde Assessment District
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.
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.
Department of Water Resources Contract 10PX102 - Plant 150 Design
On March 11, 2011 the District entered into a Funding Agreement to assist in financing the cost of studies
and planning of treatment facilities to address water quality issues threatening the District's lower zone
wells (Plant 150). The amount of the loan is $100,000 with an annual interest rate of 0%. Semi-annual
payments of $10,000 are due through July 2018 and are secured by a pledge of net revenues of the
District's water operating fund.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
42
5) LONG-TERM DEBT - Continued
Department of Water Resources Contract 11CX101 - Eastwood Farms Assessment District
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 $6,508 are
due for 30 years through January 2043. Repayment of the loan is secured by annual assessments to
property owners within the Eastwood Farms Assessment District. The aggregate debt service requirements
to maturity for long-term debt as of June 30, 2015 are as follows:
Table 5-2
Year Ending
June 30, Principal Interest Total
2016 1,960,916$ 1,944,432$ 3,908,856$
2017 2,041,733 1,874,947 3,912,700
2018 2,096,420 1,802,170 3,898,344
2019 2,160,266 1,719,457 3,869,470
2020 2,239,311 1,632,905 3,871,954
2021-2025 9,464,968 7,133,032 16,370,986
2026-2030 6,315,885 5,859,313 12,175,195
2031-2035 7,452,457 4,681,476 12,133,934
2036-2040 9,100,075 3,037,130 12,137,207
2041-2045 9,311,044 853,125 10,034,452
Total 52,143,075$ 30,537,987$ 82,313,098$
Security for debt is as follows:
Table 5-3
Debt Security
2010 and 2013 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, 2015, net water revenues
represented 250% of the annual water debt service and net
sewer revenues represented 313% of the annual sewer debt
service.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
43
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 341,258$ 168,401$ (137,480)$ 372,179$ 213,225$ 158,954$
Accrued Sick Leave 329,846 161,136 (98,497) 392,485 95,027 297,458
Total 671,104$ 329,537$ (235,977)$ 764,664$ 308,252$ 456,412$
7) NET INVESTMENT IN CAPITAL ASSETS
Net Investment in capital assets at June 30, 2015 consisted of the following:
Table 7-1
Non-Depreciable Capital Assets 22,561,578$
Depreciable Capital Assets 193,316,211
Accumulated Depreciation (64,529,129)
Loans Payable (11,213,074)
Bonds Payable (42,218,254)
Deferred Amount on Refunding 174,353
Total 98,091,685$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
44
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, 2015, 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 16.552% 6.5%
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, with 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, 2015
45
8) DEFINED BENEFIT PENSION PLAN (PERS) - Continued
For the year ended June 30, 2015, the contributions recognized as part of pension expense for each Plan
were as follows:
Table 8-2
Miscellaneous
Contributions - Employer $ 822,031
B) Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to
Pensions
As of June 30, 2015, the District reported net pension liabilities for its proportionate shares of the net
pension liability of each Plan as follows:
Table 8-3
Proportionate Share
of Net Pension
Liability
Miscellaneous $ 6,615,935
Total Net Pension Liability 6,615,935
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, 2014, 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, 2013 rolled forward to June 30, 2014 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, 2013 and 2014 was as follows:
Table 8-4
Prior to On or after
January 1, 2013 January 1, 2013
Proportion - June 30, 2013 0.26788% 0.00026%
Proportion - June 30, 2014 0.26767% 0.00002%
Change - Increase (Decrease) -0.00021% -0.00023%
Miscellaneous
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
46
8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued
For the year ended June 30, 2015, the District recognized pension expense of $750,487. At June 30, 2015,
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
Pension Contributions Subsequent to
Measurement Date $ 742,546 -$
Differences between Actual and Expected
Experience - -
Changes in Assumptions - -
Change in Employer's Proportion and
Differences between the Employer's
Contributions and the Employer's Proportionate
Share of Contributions 14,630 4,643
Net Differences between Projected and Actual
Earnings on Plan Investments - 1,612,235
Total $ 757,176 1,616,878$
$742,546 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, 2016. 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
2016 $ (399,493)
2017 (399,493)
2018 (400,207)
2019 (403,055)
2020 -
Thereafter -
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
47
8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued
Actuarial Assumptions
The total pension liabilities in the June 30, 2013 actuarial valuations were determined using the following
actuarial assumptions:
Table 8-7
Miscellaneous
Valuation Date June 30, 2013
Measurement Date June 30, 2014
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 7.5%
Inflation 2.8%
Payroll Growth 3.0%
Projected Salary Increase 3.3% - 14.2% (1)
Investment Rate of Return 7.5% (2)
(1) Depending on age; service and type of employment
(2) Net of pension plan investment expenses, including inflation
The underlying mortality assumptions and all other actuarial assumptions used in the June 30, 2013 valuation
were based on the results of a January 2014 actuarial experience study for the period 1997 to 2011. Further
details of the Experience Study can found on the CalPERS website.
Discount Rate
The discount rate used to measure the total pension liability was 7.50% for each Plan. To determine whether
the municipal bond rate should be used in the calculation of a discount rate for each 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 7.50 percent discount rate is adequate and the use of the municipal bond rate calculation is not
necessary. The long term expected discount rate of 7.50 percent 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.
According to Paragraph 30 of Statement 68, the long-term discount rate should be determined without
reduction for pension plan administrative expense. The 7.50 percent investment return assumption used in
this accounting valuation is net of administrative expenses. Administrative expenses are assumed to be 15
basis points. An investment return excluding administrative expenses would have been 7.65 percent. Using
this lower discount rate has resulted in a slightly higher Total Pension Liability and Net Pension Liability.
CalPERS checked the materiality threshold for the difference in calculation and did not find it to be a material
difference.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
48
8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued
CalPERS is scheduled to review all actuarial assumptions as part of its regular Asset Liability Management
(ALM) review cycle that is scheduled to be completed in February 2018. Any changes to the discount rate will
require Board action and proper stakeholder outreach. For these reasons, CalPERS expects to continue
using a discount rate net of administrative expenses for GASB 67 and 68 calculations through at least the
2017-18 fiscal year. CalPERS will continue to check the materiality of the difference in calculation until such
time as we have changed our methodology.
The long-term expected rate of return on pension 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 pension
plan investment expense and inflation) are developed for each major asset class.
In determining the long-term expected rate of return, CalPERS took into account both short-term and long-
term market return expectations as well as the expected pension fund cash flows. Using historical returns of
all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years)
and the long-term (11 – 60 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 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 equivalent to the single equivalent rate calculated above and rounded down to the
nearest one quarter of one percent.
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
New Strategic
Allocation
Real Return
Years 1 - 10(a)
Real Return
Years 11 + (b)
Global Equity 47.0% 5.25% 5.71%
Global Fixed Income 19.0% 0.99% 2.43%
Inflation Sensitive 6.0% 0.45% 3.36%
Private Equity 12.0% 6.83% 6.95%
Real Estate 11.0% 4.50% 5.13%
Infrastructure and Forestland 3.0% 4.50% 5.09%
Liquidity 2.0%-0.55%-1.05%
Total 100.0%
(a) An expected inflation of 2.5% used for this period
(b) expected inflation of 3.0% used for this period
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
49
8) DEFINED BENEFIT PENSION PLAN (PERS) – Continued
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 each
Plan, calculated using the discount rate for each Plan, 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 1-percentage point lower
or 1-percentage point higher than the current rate:
Table 8-9
Miscellaneous
1% Decrease 6.50%
Net Pension Liability $ 11,385,892
Current Discount Rate 7.50%
Net Pension Liability $ 6,615,935
1% Increase 8.50%
Net Pension Liability $ 2,657,324
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, 2015, the District reported a payble of $0 for the outstanding amount of contributions to the
pension plan required for the year ended June 30, 2015.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
50
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, 2015, or in the previous fiscal year.
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, 2015
51
10) RISK MANAGEMENT - Continued
At June 30, 2015, 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 400,000$ 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, 2015
52
11) POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS
Plan Description
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 (CAFR). The CAFR is issued in aggregate and includes the sum of all CalPERS plans.
Copies of the CalPERS CAFR may be obtained from the CalPERS Executive Office, 400 P Street, Sacramento,
California 95814.
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.
Employees retiring with at least 20 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 $650 per month). The surviving spouse of an eligible retiree is eligible for the District's
contribution upon the death of the retiree through the spouse's attainment of Medicare eligibility age.
Directors who were first elected to office on or after July 1, 1994 shall be eligible to continue to receive health
benefits upon termination on a self-pay basis. There are two Directors (in office prior to July 1, 1994) who are
eligible for District-paid health care benefits and any covered spouse or dependents. The benefits are payable for
the lifetime and the lifetime of any covered surviving spouse.
Prior to June 7, 2011, the District contributed 100% of the cost of current year premiums for eligible retired plan
members and their dependents. The District, as part of the CERBT, is required to contribute the annual required
contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of
GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to
cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a closed
27 year period. The current ARC rate is 2.1% of the annual covered payroll.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
53
11) POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS - Continued
Annual OPEB Cost
The District's annual OPEB cost for the current year and the related information for the plan are as follows:
Table 11-1
Annual Required Contribution 82,319$
Interest on Net OPEB Obligation (1,223)
Adjustments to Annual Required Contribution 1,604
Annual OPEB Expense 82,700
Contributions Made (102,991)
Increase (Decrease) in Net OPEB Obligation (20,291)
Net OPEB Obligation - Beginning of Year (18,166)
Net OPEB Obligation / (Asset) - End of Year (38,457)$
For 2015, 2014, and 2013, the District’s annual OPEB costs (expenses) were $82,700, $76,355, and $94,490,
respectively. The District's annual OPEB cost has been recognized as a part of the administrative and general
expenses in the accompanying Statement of Revenue, Expenses and Changes in Net Position. The District’s
annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation
for the 2015 and the two preceding years were as follows:
Table 11-2
Percentage Net OPEB
Fiscal Annual Actual of OPEB Obligation
Year Ended OPEB Cost Contribution Contributed (Asset)
6/30/15 82,700$ 102,991$ 125% (38,457)$
6/30/14 76,355$ 102,991$ 135% (18,166)$
6/30/13 94,490$ 288,143$ 305% 8,470$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
54
11) POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS - Continued
Funded Status and Funding Progress
The funded status of the plan as of June 30, 2015, was as follows:
Table 11-3
Actuarial Accrued Liability (AAL) 1,547,909$
Actuarial Value of Plan Assets 467,926$
Unfunded Actuarial Accrued Liability (UAAL) 1,079,983$
Funded Ratio (Actuarial Value of Plan Assets/AAL) 30%
Covered Payroll (Active Plan Members) 4,810,000$
UAAL as a Percentage of Covered Payroll 22%
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the probability of
occurrence of events far into the future. Examples include assumptions about future employment, mortality, and
the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required
contributions of the employer are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. The schedule of funding progress, presented as
required supplementary information following the notes to the financial statements, presents multiyear trend
information that shows whether the actuarial value of the plan assets is increasing or decreasing over time
relative to the actuarial accrued liabilities for benefits.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and plan members) and include the types of benefits provided at the time of each
valuation and the historical pattern of sharing of benefit costs between the employer and plan members to that
point. The actuarial methods and assumptions used include techniques that are designed to reduce short-term
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term
perspective of the calculations.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
55
11) POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS - Continued
The following is a summary of the actuarial assumptions and methods:
Table 11-4
Valuation Date June 30, 2015
Actuarial Cost Method Entry Age Normal
Amortization Method Level Percent of Payroll
Remaining Amortization Period 3 Years Closed Period
Actuarial Assumptions:
Investment Rate of Return 6.73%
Projected Salary Increase 3.00%
2016 - 2017 Health Care Trend Rate 7.00%
2018 - 2021 Health Care Trend Rate 6.00%
2021 - Thereafter Health Care Trend Rate 5.00%
Inflation Rate 2.80%
Post Retirement Benefit Increases 0.00%
12) INTERNAL BALANCES
In previous years, Water System capital improvement costs have exceeded water revenue and other financing
sources resulting in borrowing from the Sewer Fund in the approximate amount of $7 million. Pursuant to
Resolution 2010.20 adopted by the Board of Directors on September 14, 2010, Sewer System revenues borrowed
from the Sewer Department will be repaid by the Water Department in scheduled annual installments, with
installments of $200,000 beginning in fiscal year 2014, increasing to $250,000 in fiscal year 2020 and $300,000
in fiscal year 2030.
13) SUBSEQUENT EVENTS
On September 23, 2015 the East Valley Water District’s Governing Board approved a Joint Facilities Agreement
for the Joint Facilitation Water Replenishment and Recycling Project with San Bernardino Valley Municipal Water
District. The Agreement establishes a framework for the design, permitting, construction, and operation of a
recycled water treatment and recharge system in the Bunker Hill Basin. The wastewater treatment plant shall be
built on 4 parcels of land that are owned by the District, the treatment plant is estimated to be completed by June
30, 2018 and all cost incurred by San Bernardino Valley Municipal Water District will be reimbursed by the
District.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2015
56
14) CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS
The District has active construction projects as of June 30, 2015. The projects include the following Booster
station upgrades for Plant 40 and Plant 134, and the 5th Street Pipeline Project. At year end, the District’s
commitment with contractors are as follows:
Table 14-1
Project Spent to Date
Remaining
Commitment
Plant 151 to Plant 40 Pipeline 1,789,301$ 561,183$
Plant 134 Booster / Getaway Upgrades - 1,484,425
Honeywell New Remote Terminal Units (RTUs) 13,269 344,126
Plant 40 Design and Construction 409,841 407,159
15) SPECIAL ITEM – ABANDONED PROJECT
In 2006, the District purchased property for the purpose of building a groundwater treatment plant (Plant 150) to
remove perchlorate and other constituents from water produced by wells in the District’s lower pressure zone.
Preliminary correspondence from the State Department of Water Resources (DWR) indicated that state funding – a
combination of grants and 0% interest loans payable over 30 years – would be available for the project’s
construction after the District had completed the design of the plant. The DWR made $500,000 in grants and 0%
interest loans available toward design costs.
In 2013, the District completed the design and other preliminary studies for the plant at a cost of $2,413,478.
Upon resubmitting an application for DWR construction funding, the District learned that revised terms for funding
included no grants, and loans at 1.787% payable over 20 years, essentially doubling the annual projected debt
service and significantly reducing the project’s financial viability.
In 2014, the District completed an update of it’s Water System Master Plan, which contained an evaluation of three
future water supply sources, including Plant 150. The evaluation concluded that Plant 150 was the most expensive
of the three options and was in-excess of District needs. Based on these findings, the District abandoned the Plant
150 project. The write off of costs incurred for the design and other preliminary studies for Plant 150 is included
on the accompanying Statement of Revenues, Expenses and Changes in Net Position as a Special Item.
16) PRIOR PERIOD ADJUSTMENT
The prior period adjustment of ($7,956,231) is related to the implementation of GASB 68. The adjustment was
made to reflect the prior period costs related to the implementation of the net pension liability.
[This page intentionally left blank]
East Valley Water District
Schedule of Proportionate Share of Net Pension Liability
Year Ended June 30, 2015
Last Ten Years*
57
2015
Proportion of the Net Pension Liability 0.26769%
Proportionate Share of the Net Pension Liability $ 6,615,935
Covered - Employee Payroll $ 4,436,236
Proportionate Share of the Net Pension Liability
as Percentage of Covered-Employee Payroll 149.13%
Plan's Fiduciary Net Position $ 29,336,566
Plan's Fiduciary Net Position as a Percentage of
the Total Pension Liability 81.60%
* - Fiscal year 2015 was the first year of implementation, therefore only one year is shown.
East Valley Water District
Schedule of Contributions
Year Ended June 30, 2015
Last Ten Years*
58
2015
Contractually Required Contribution (actuarially determined) 804,673$
Contributions in Relation to the Actuarially Deteremined Contributions 804,673$
Contribution Deficiency (excess) -$
Covered-Employee Payroll 4,436,236$
Contributions as a Percentage of Covered-Employee Payroll 18.14%
* - Fiscal year 2015 was the first year of implementation, therefore only one year is shown.
East Valley Water District
Schedule of Funding Progress for Retirees Health Coverage
Year Ended June 30, 2015
59
Actuarial
Valuation
Date
Actuarial
Value of
Assets
Actuarial
Accrued
Liability (AAL)
Entry Age
Unfunded
AAL (UAAL)
Funded
Ration
Covered
Payroll
UAAL as a
Percentage
of Covered
Payroll
(A) (B) (B - A) (A / B) (C) [(B - A) / C]
06/30/15 467,926$ 1,547,909$ 1,079,983$ 30.23% 4,810,000$ 22.45%
06/30/13 398,241$ 968,388$ 570,147$ 41.12% 4,325,000$ 13.18%
06/30/11 74,958$ 778,688$ 703,730$ 9.63% 4,914,556$ 14.32%
[This page intentionally left blank]
East Valley Water District
History and Organization
Year Ended June 30, 2015
60
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.
Formation of the Public Facilities Corporation
The East Valley Public Facilities Corporation was incorporated October 1986, pursuant to the nonprofit public benefit
corporation law of the State of California to provide financial assistance to the District by acquiring and constructing
various public improvements, and by acquiring land and related facilities for the use, benefit and enjoyment of the
public.
Nature of Business
The District has been engaged in the furnishing of water service and sewage 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 27.7 square miles within the County of San Bernardino,
California.
Directors
James Morales, Jr. Chairman of the Board
Ronald Coats Vice-Chairman of the Board
Ben C. Coleman Governing Board Member
Chris Carrillo Governing Board Member
Nanette Shelton Governing Board Member
East Valley Water District
James Morales, Jr. President
Ronald Coats 1st Vice President
Ben C. Coleman 2nd Vice President
John Mura Secretary
Brian W. Tompkins Treasurer
Public Facilities Corporation
Management
John Mura General Manager/CEO
Brian W. Tompkins Chief Financial Officer/Treasurer
East Valley Water District
Professional Consultants
The firms Brunick, McElhaney & Kennedy and Cihigoyenetche, Grossberg & Clouse serve as general counsel for the
District. Additionally, the firms Buchalter Nemer , Filarsky & Watt, LLP, Musick, Peeler & Garrett, LLP, and Wagner &
Bonsignore, serve as special counsel for the District.
East Valley Water District
Combining Schedule of Net Position
Year Ended June 30, 2015
61
Water Sewer Eliminations Total
ASSETS
Current Assets:
Cash & Cash Equivalents 9,964,729$ 117,026$ -$ 10,081,755$
Investments 2,705,635 2,479,432 - 5,185,067
Accounts Receivable, Net 2,936,918 387,058 - 3,323,976
Interest Receivable 9,273 - - 9,273
Other Receivables 140,787 - - 140,787
Due from Other Governments 1,771,368 - - 1,771,368
Inventory 291,082 6,721 - 297,803
Prepaid Expenses 77,336 7,401 - 84,737
Total Current Assets 17,897,128 2,997,638 - 20,894,766
Non-Current Assets:
Restricted Cash & Cash Equivalents 7,387,158 180,769 - 7,567,927
Assessments Receivable 434,355 - - 434,355
Due from Other Fund - 6,600,000 6,600,000 -
Capital Assets not being Depreciated 17,252,400 5,309,178 - 22,561,578
Capital Assets, Net (Note 4) 109,438,142 19,348,940 - 128,787,082
Total Non-Current Assets 134,512,055 31,438,887 6,600,000 159,350,942
Total Assets 152,409,183 34,436,525 6,600,000 180,245,708
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding 174,353 - - 174,353
Deferred Outflows - Pensions 590,597 166,579 - 757,176
Total Deferred Outflows 764,950 166,579 - 931,529
Total Assets and Deferred
Outflows of Resources 153,174,133 34,603,104 6,600,000 181,177,237
(Continued)
East Valley Water District
Combining Schedule of Net Position – Continued
Year Ended June 30, 2015
62
Water Sewer Eliminations Total
LIABILITIES
Current Liabilities:
Accounts Payable & Accrued Expenses 1,926,070$ 35,183$ -$ 1,961,253$
Accrued Payroll & Benefits 318,575 104,123 - 422,698
Customer Service Deposits 1,727,286 - - 1,727,286
Construction Advances and Retentions 114,811 104,500 - 219,311
Accrued Interest Payable 448,006 57,006 - 505,012
Current Portion of Compensated
Absences 223,102 85,150 - 308,252
Current Portion of Long-Term Debt 1,952,647 107,958 - 2,060,605
Total Current Liabilities 6,710,497 493,920 - 7,204,417
Non-Current Liabilities:
Due to Other Fund 6,600,000 6,600,000 -
Compensated Absences,
Less Current Portion 324,599 131,813 - 456,412
Net Pension Liability 5,160,429 1,455,506 - 6,615,935
Long-Term Debt, Less Current Portion 47,507,105 4,961,613 - 52,468,718
Total Non-Current Liabilities 59,592,133 6,548,932 6,600,000 59,541,065
Total Liabilities 66,302,630 7,042,852 6,600,000 66,745,482
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Pensions 1,261,164 355,714 - 1,616,878
Total Liabilities and Deferred
Inflows of Resources 67,563,794 7,398,566 6,600,000 68,362,360
NET POSITION
Net Investment in Capital Assets 78,503,138 19,588,547 - 98,091,685
Restricted for:-
Future Capital Expansion Projects 2,245,969 76,269 - 2,322,238
Unrestricted 4,861,232 7,539,722 - 12,400,954
Total Net Position 85,610,339$ 27,204,538$ -$ 112,814,877$
East Valley Water District
Combining Schedule of Revenues, Expenses, and Changes in Net Position
Year Ended June 30, 2015
63
Water Wastewater Eliminations Total
OPERATING REVENUE
Water Sales 13,505,159$ -$ -$ 13,505,159$
Sewer Treatment Charges - 6,907,828 - 6,907,828
System Charges 4,874,581 4,531,355 - 9,405,936
Other Revenue 832,921 91,601 - 924,522
Total Operating Revenue 19,212,661 11,530,784 - 30,743,445
OPERATING EXPENSES
Salary & Benefits 477,020 - - 477,020
Contract Services 185,682 - - 185,682
Utilities 1,498,282 - - 1,498,282
Insurance 4,863 - - 4,863
Materials & Supplies 28,398 - - 28,398
Purchased Water 411,476 - - 411,476
Water Assessments 189,379 - - 189,379
Chemicals 162,804 - - 162,804
Taxes 30,211 - - 30,211
Total Source of Supply 2,988,115 - - 2,988,115
Pumping:
Salary & Benefits 107,495 - - 107,495
Contract Services 10,969 - - 10,969
Utilities 471,017 - - 471,017
Materials & Supplies 17,310 - - 17,310
Taxes - - - -
Total Pumping 606,791 - - 606,791
Water Treatment:
Salary & Benefits 276,117 - - 276,117
Contract Services 179,152 - - 179,152
Utilities 154,186 - - 154,186
Materials & Supplies 31,718 - - 31,718
Chemicals 80,788 - - 80,788
Treatment Services - - - -
Permits 250 - - 250
Total Water Treatment 722,211 - - 722,211
Wastewater Treatment:
Treatment Services - 6,907,828 - 6,907,828
Transmission & Distribution:
Salary & Benefits 1,241,026 - - 1,241,026
Contract Services 390,034 - - 390,034
Utilities - - - -
Materials & Supplies 339,036 - - 339,036
Chemicals 22,702 - - 22,702
Permits 45,360 - - 45,360
Tools 11,509 - - 11,509
Total Transmission & Distribution 2,049,667$ -$ -$ 2,049,667$
(Continued)
East Valley Water District
Combining Schedule of Revenues, Expenses, and Changes in Net Position - Continued
Year Ended June 30, 2015
64
Water Wastewater Eliminations Total
OPERATING EXPENSES - Continued
Wastewater Collection:
Salary & Benefits -$ 171,203$ -$ 171,203$
Contract Services - 238,057 - 238,057
Materials & Supplies - 26,332 - 26,332
Tools - 4,559 - 4,559
Total Wastwater Collection - 440,151 - 440,151
Customer Accounts:
Salary & Benefits 493,290 438,264 - 931,554
Contract Services 385,393 383,262 - 768,655
Utilities 1,062 1,062 - 2,124
Materials & Supplies 2,715 2,715 - 5,430
General Office Supplies 3,734 3,734 - 7,468
Tools 139 139 - 278
Postage 73,383 73,383 - 146,766
Professional Development 23,203 23,203 - 46,406
Total Customer Accounts 982,919 925,762 - 1,908,681
General & Administrative:
Salary & Benefits 3,351,435 1,346,049 - 4,697,484
Contract Services 1,131,748 526,579 - 1,658,327
Utilities 156,423 78,794 - 235,217
Insurance 130,739 55,767 - 186,506
Materials & Supplies 298,790 135,128 - 433,918
General Office Supplies 27,214 12,318 - 39,532
Legal Services 183,595 78,684 - 262,279
Permits 39,400 13,996 - 53,396
Memberships & Dues 51,734 22,378 - 74,112
Tools 3,615 1,725 - 5,340
Printing & Publishing 90,208 22,711 - 112,919
Professional Development 97,830 37,128 - 134,958
Rents & Leases 3,256 1,753 - 5,009
Total General & Administrative 5,565,987 2,333,010 - 7,898,997
OPERATING EXPENSES BEFORE
DEPRECIATION 12,915,690 10,606,751 - 23,522,441
Depreciation 4,868,573 755,325 - 5,623,898
Total Operating Expenses 17,784,263 11,362,076 - 29,146,339
OPERATING INCOME (LOSS)1,428,398$ 168,708$ -$ 1,597,106$
(Continued)
East Valley Water District
Combining Schedule of Revenues, Expenses, and Changes in Net Position - Continued
Year Ended June 30, 2015
65
Water Wastewater Eliminations Total
NON-OPERATING REVENUES
Investment Income 59,603$ 41,227$ -$ 100,830$
Other Income 800,278 - - 800,278
Total Non-Operating Revenues 859,881 41,227 - 901,108
NON-OPERATING EXPENSES
Interest Expense 1,634,047 192,960 - 1,827,007
Amortization 135,097 17,958 - 153,055
Total Non-Operating Expenses 1,769,144 210,918 - 1,980,062
INCOME BEFORE CONTRIBUTIONS AND
SPECIAL ITEMS 519,135 (983) - 518,152
CONTRIBUTIONS:
Capacity Charges 4,607 6,732 - 11,339
Capital Grants 585,601 - - 585,601
Total Contributions 590,208 6,732 - 596,940
SPECIAL ITEM:
Abandoned Project (2,413,478) - - (2,413,478)
CHANGE IN NET POSITION (1,304,135) 5,749 - (1,298,386)
TOTAL NET POSITION, BEGINNING 93,120,334 28,949,160 - 122,069,494
PRIOR PERIOD ADJUSTMENT (6,205,860) (1,750,371) - (7,956,231)
TOTAL NET POSITION, ENDING 85,610,339$ 27,204,538$ -$ 112,814,877$
[This page intentionally left blank]
East Valley Water District
Combining Schedule of Cash Flows
Year Ended June 30, 2015
66
Water Sewer Eliminations Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 18,921,900$ 11,325,817$ -$ 30,247,717$
Cash Payments for Employees Services (6,111,844) (1,977,365) - (8,089,209)
Cash Payments to Suppliers (8,324,669) (8,616,171) - (16,940,840)
Cash from Other Sources 708,386 - - 708,386
Net Cash Provided (Used) by
Operating Activities 5,193,773 732,281 - 5,926,054
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Grant Funds Received 3,975,118 - - 3,975,118
Contributed Capital 4,607 6,732 - 11,339
Principal Paid on Capital Debt (1,748,871) (85,000) 200,000 (1,633,871)
Interest Paid on Capital Debt (1,830,366) (229,727) 16,995 (2,043,098)
Acquisition of Capital Assets (4,555,617) (1,322,905) - (5,878,522)
Net Cash Used for Capital
and Related Financing Activities (4,155,129) (1,630,900) 216,995 (5,569,034)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received from Investments 49,901 45,368 (16,995) 78,274
Acquisition of Investment Securities (2,330,936) (910,601) - (3,241,537)
Proceeds from Sales of Investments 1,428,297 1,375,954 - 2,804,251
Loan Collections 44,775 200,000 (200,000) 44,775
Net Cash Provided by Investing Activities (807,963) 710,721 (216,995) (314,237)
Net (Decrease) Increase in Cash
and Cash Equivalents 230,681 (187,898) - 42,783
Cash and Equivalents, Beginning of Year 17,121,206 485,693 - 17,606,899
Cash and Equivalents, End of Year 17,351,887$ 297,795$ -$ 17,649,682$
RECONCILIATION TO STATEMENT
OF NET POSITION
Cash and Cash Equivalents 9,964,729 117,026 - 10,081,755
Restricted Cash and Cash Equivalents 7,387,158 180,769 - 7,567,927
Total Cash and Cash Equivalents 17,351,887$ 297,795$ -$ 17,649,682$
(Continued)
East Valley Water District
Combining Schedule of Cash Flows - Continued
Year Ended June 30, 2015
67
Water Sewer Eliminations Total
Reconciliation of Operating Income to Net
Cash Provided by Operating Activities
Operating Income (Loss) 1,428,398$ 168,708$ -$ 1,597,106$
Adjustments to Reconcile Operating
Income (Loss) to Net Cash Provided by
Operating Activities:
Depreciation 4,868,573 755,325 - 5,623,898
Miscellaneous Income 800,278 - - 800,278
Change in Assets and Liabilities:
(Increase) Decrease in Accounts Receivab 886,144 (174,967) - 711,177
(Increase) Decrease in Other Receivables (91,892) - - (91,892)
(Increase) Decrease in Inventory (40,937) - - (40,937)
(Increase) Decrease in Prepaids (3,189) - - (3,189)
Decrease in Deferred Outflows of Resrcs 50,588 14,268 - 64,856
Increase (Decrease) in Accounts Payable (1,271,987) 35,065 - (1,236,922)
Increase (Decrease) in Accrued Salaries
and Benefits 82,459 78,016 - 160,475
Increase in Compensated Absences 87,694 5,865 - 93,559
Decrease in Net Pension Liability (1,686,615) (475,712) - (2,162,327)
Increase in Deferred Inflows of Resources 1,261,164 355,713 - 1,616,877
Decrease in Customer Deposits (121,135) - - (121,135)
Decrease in Developer Deposits (1,055,770) (30,000) - (1,085,770)
Total Cash Provided (Used)
by Operating Activities 5,193,773$ 732,281$ -$ 5,926,054$
NON-CASH INVESTING, CAPITAL, AND
NON-CAPITAL FINANCING ACTIVITIES:
Write-off of Abandoned Project Costs (2,413,478)$ -$ -$ (2,413,478)$
Fair Value Adjustments to Investments 3,587$ (2,787)$ -$ 800$
East Valley Water District
Principal and Interest Repayment Schedule
Refunding Revenue Bonds – Series 2010
Year Ended June 30, 2015
68
Total
Due Date Principal Interest Payments
10/01/15 1,315,000$ 5.00 % 653,281$ 1,968,281$
04/01/16 - 4.00 620,406 620,406
10/01/16 1,380,000 4.00 620,406 2,000,406
04/01/17 - 4.00 592,806 592,806
10/01/17 1,435,000 4.00 592,806 2,027,806
04/01/18 - 4.00 556,931 556,931
10/01/18 1,500,000 5.00 556,931 2,056,931
04/01/19 - 5.00 519,431 519,431
10/01/19 1,580,000 5.00 519,431 2,099,431
04/01/20 - 5.00 479,931 479,931
10/01/20 1,650,000 4.00 479,931 2,129,931
04/01/21 - 4.00 446,931 446,931
10/01/21 1,030,000 4.00 446,931 1,476,931
04/01/22 - 4.00 426,331 426,331
10/01/22 1,075,000 4.00 426,331 1,501,331
04/01/23 - 4.00 404,831 404,831
10/01/23 1,120,000 4.00 404,831 1,524,831
04/01/24 - 4.50 382,431 382,431
10/01/24 1,155,000 4.50 382,431 1,537,431
04/01/25 - 4.00 356,444 356,444
10/01/25 700,000 4.00 356,444 1,056,444
04/01/26 - 4.00 342,444 342,444
10/01/26 730,000 4.00 342,444 1,072,444
04/01/27 - 4.00 327,844 327,844
10/01/27 760,000 4.00 327,844 1,087,844
04/01/28 - 4.00 312,644 312,644
10/01/28 790,000 4.00 312,644 1,102,644
04/01/29 - 4.00 296,844 296,844
10/01/29 820,000 4.00 296,844 1,116,844
04/01/30 - 4.00 280,444 280,444
10/01/30 855,000 4.00 280,444 1,135,444
04/01/31 - 4.25 263,344 263,344
10/01/31 885,000 4.25 263,344 1,148,344
04/01/32 - 4.25 244,538 244,538
10/01/32 925,000 4.25 244,538 1,169,538
04/01/33 - 4.25 224,881 224,881
10/01/33 965,000 4.25 224,881 1,189,881
(Continued)
Interest
Rate %
East Valley Water District
Principal and Interest Repayment Schedule
Refunding Revenue Bonds – Series 2010 - Continued
Year Ended June 30, 2015
69
Total
Due Date Principal Interest Payments
04/01/34 -$ 5.00 % 204,375$ 204,375$
10/01/34 1,005,000 5.00 204,375 1,209,375
04/01/35 - 5.00 179,250 179,250
10/01/35 1,055,000 5.00 179,250 1,234,250
04/01/36 - 5.00 152,875 152,875
10/01/36 1,105,000 5.00 152,875 1,257,875
04/01/37 - 5.00 125,250 125,250
10/01/37 1,165,000 5.00 125,250 1,290,250
04/01/38 - 5.00 96,125 96,125
10/01/38 1,220,000 5.00 96,125 1,316,125
04/01/39 - 5.00 65,625 65,625
10/01/39 1,280,000 5.00 65,625 1,345,625
04/01/40 - 5.00 33,626 33,626
10/01/40 1,345,000 5.00 33,626 1,378,626
Totals 28,845,000$ 16,526,445$ 45,371,445$
Interest
Rate %
East Valley Water District
Principal and Interest Repayment Schedule
Revenue Bonds – Series 2013
Year Ended June 30, 2015
70
Total
Due Date Principal Interest Payments
10/01/15 -$ - % 292,562$ 292,562$
04/01/16 - - 292,563 292,563
10/01/16 - - 292,562 292,562
04/01/17 - - 292,563 292,563
10/01/17 - - 292,562 292,562
04/01/18 - - 292,563 292,563
10/01/18 - - 292,562 292,562
04/01/19 - - 292,563 292,563
10/01/19 - - 292,562 292,562
04/01/20 - - 292,563 292,563
10/01/20 - - 292,562 292,562
04/01/21 - - 292,563 292,563
10/01/21 105,000 5.00 292,562 397,562
04/01/22 - - 289,938 289,938
10/01/22 110,000 5.00 289,937 399,937
04/01/23 - - 287,188 287,188
10/01/23 115,000 5.00 287,187 402,187
04/01/24 - - 284,313 284,313
10/01/24 120,000 5.00 284,312 404,312
04/01/25 - - 281,313 281,313
10/01/25 225,000 5.00 284,312 509,312
04/01/26 - - 275,688 275,688
10/01/26 240,000 5.00 275,687 515,687
04/01/27 - - 269,688 269,688
10/01/27 250,000 5.00 269,687 519,687
04/01/28 - - 263,438 263,438
10/01/28 260,000 5.00 262,437 522,437
04/01/29 - - 256,938 256,938
10/01/29 275,000 5.00 256,937 531,937
04/01/30 - - 250,063 250,063
10/01/30 285,000 5.00 250,062 535,062
04/01/31 - - 244,363 244,363
10/01/31 305,000 4.00 250,362 555,362
04/01/32 - - 238,263 238,263
10/01/32 315,000 4.00 238,262 553,262
04/01/33 - - 231,963 231,963
(Continued)
Rate %
Interest
East Valley Water District
Principal and Interest Repayment Schedule
Revenue Bonds – Series 2013 - Continued
Year Ended June 30, 2015
71
Total
Due Date Principal Interest Payments
10/01/33 325,000$ 4.00 % 231,962$ 556,962$
04/01/34 - - 225,463 225,463
10/01/34 352,000 4.00 225,462 577,462
04/01/35 - - 217,345 217,345
10/01/35 367,000 5.00 217,345 584,345
04/01/36 - - 208,853 208,853
10/01/36 392,000 5.00 208,852 600,852
04/01/37 - - 199,735 199,735
10/01/37 407,000 5.00 199,735 606,735
04/01/38 - - 190,243 190,243
10/01/38 427,000 5.00 190,242 617,242
04/01/39 - - 180,250 180,250
10/01/39 450,000 5.00 180,250 630,250
04/01/40 - - 169,000 169,000
10/01/40 475,000 5.00 169,000 644,000
04/01/41 - - 157,125 157,125
10/01/41 1,915,000 5.00 157,125 2,072,125
04/01/42 - - 109,250 109,250
10/01/42 2,015,000 5.00 109,250 2,124,250
04/01/43 - - 58,875 58,875
10/01/43 2,355,000 5.00 58,875 2,413,875
Totals 12,085,000$ 13,589,887$ 25,674,887$
Interest
Rate %
East Valley Water District
Principal and Interest Repayment Schedule
US Bancorp Installment Purchase Agreement
Year Ended June 30, 2015
72
Total
Due Date Principal Interest Payments
07/01/14 146,382$ 2.38 % 80,016$ 226,398$
01/01/15 180,330 2.38 46,069 226,399
07/01/15 184,336 2.38 43,912 228,248
01/01/16 188,405 2.38 41,708 230,113
07/01/16 192,301 2.38 39,455 231,756
01/01/17 196,256 2.38 37,155 233,411
07/01/17 192,968 2.38 34,808 227,776
01/01/18 195,276 2.38 32,500 227,776
07/01/18 197,365 2.38 30,165 227,530
01/01/19 199,725 2.38 27,804 227,529
07/01/19 201,860 2.38 25,416 227,276
01/01/20 204,274 2.38 23,002 227,276
07/01/20 206,455 2.38 20,559 227,014
01/01/21 208,924 2.38 18,090 227,014
07/01/21 211,153 2.38 15,591 226,744
01/01/22 213,679 2.38 13,066 226,745
07/01/22 215,957 2.38 10,511 226,468
01/01/23 218,539 2.38 7,928 226,467
07/01/23 220,867 2.38 5,314 226,181
01/01/24 223,508 2.38 2,671 226,179
07/01/24 - 0.00 - -
Totals 3,998,560$ 555,740$ 4,554,300$
Interest
Rate %
East Valley Water District
Principal and Interest Repayment Schedule
Department of Water Resources Construction Loan – Contract 00C412
Year Ended June 30, 2015
73
Total
Due Date Principal Interest Payments
01/01/16 3,381$ - % -$ 3,381$
07/01/16 3,381 - - 3,381
01/01/17 3,381 - - 3,381
07/01/17 3,381 - - 3,381
01/01/18 3,381 - - 3,381
07/01/18 3,381 - - 3,381
01/01/19 3,381 - - 3,381
07/01/19 3,381 - - 3,381
01/01/20 3,381 - - 3,381
07/01/20 3,381 - - 3,381
01/01/21 3,381 - - 3,381
07/01/21 3,381 - - 3,381
01/01/22 3,381 - - 3,381
07/01/22 3,381 - - 3,381
01/01/23 3,381 - - 3,381
07/01/23 3,381 - - 3,381
01/01/24 3,381 - - 3,381
07/01/24 3,381 - - 3,381
01/01/25 3,381 - - 3,381
07/01/25 3,381 - - 3,381
01/01/26 3,381 - - 3,381
07/01/26 3,381 - - 3,381
01/01/27 3,381 - - 3,381
07/01/27 3,381 - - 3,381
01/01/28 3,381 - - 3,381
07/01/28 3,381 - - 3,381
01/01/29 3,381 - - 3,381
07/01/29 3,381 - - 3,381
01/01/30 3,381 - - 3,381
07/01/30 3,381 - - 3,381
01/01/31 3,382 - - 3,382
Totals 104,812$ -$ 104,812$
Rate %
Interest
East Valley Water District
Principal and Interest Repayment Schedule
Department of Water Resources Construction Loan – Contract 10CX110
Year Ended June 30, 2015
74
Total
Due Date Principal Interest Payments
07/01/15 116,699$ - % -$ 116,699$
01/01/16 116,699 - - 116,699
07/01/16 116,700 - - 116,700
01/01/17 116,699 - - 116,699
07/01/17 116,700 - - 116,700
01/01/18 116,699 - - 116,699
07/01/18 116,700 - - 116,700
01/01/19 116,699 - - 116,699
07/01/19 116,700 - - 116,700
01/01/20 116,699 - - 116,699
07/01/20 116,700 - - 116,700
01/01/21 116,699 - - 116,699
07/01/21 116,700 - - 116,700
01/01/22 116,699 - - 116,699
07/01/22 116,700 - - 116,700
01/01/23 116,699 - - 116,699
07/01/23 116,700 - - 116,700
01/01/24 116,699 - - 116,699
07/01/24 116,700 - - 116,700
01/01/25 116,699 - - 116,699
07/01/25 116,700 - - 116,700
01/01/26 116,699 - - 116,699
07/01/26 116,700 - - 116,700
01/01/27 116,699 - - 116,699
07/01/27 116,700 - - 116,700
01/01/28 116,699 - - 116,699
07/01/28 116,700 - - 116,700
01/01/29 116,699 - - 116,699
07/01/29 116,700 - - 116,700
01/01/30 116,699 - - 116,699
07/01/30 116,700 - - 116,700
01/01/31 116,699 - - 116,699
07/01/31 116,700 - - 116,700
01/01/32 116,699 - - 116,699
07/01/32 116,700 - - 116,700
01/01/33 116,699 - - 116,699
07/01/33 116,700 - - 116,700
(Continued)
Interest
Rate %
East Valley Water District
Principal and Interest Repayment Schedule
Department of Water Resources Construction Design Loan – Contract 10CX110 - Continued
Year Ended June 30, 2015
75
Total
Due Date Principal Interest Payments
01/01/34 116,699$ - % -$ 116,699$
07/01/34 116,700 - - 116,700
01/01/35 116,699 - - 116,699
07/01/35 116,700 - - 116,700
01/01/36 116,699 - - 116,699
07/01/36 116,700 - - 116,700
01/01/37 116,699 - - 116,699
07/01/37 116,699 - - 116,699
01/01/38 116,699 - - 116,699
07/01/38 116,699 - - 116,699
01/01/39 116,699 - - 116,699
07/01/39 116,699 - - 116,699
01/01/40 116,699 - - 116,699
07/01/40 116,699 - - 116,699
01/01/41 116,699 - - 116,699
07/01/41 116,699 - - 116,699
01/01/42 116,699 - - 116,699
07/01/42 116,699 - - 116,699
01/01/43 116,699 - - 116,699
07/01/43 116,699 - - 116,699
01/01/44 116,699 - - 116,699
07/01/44 116,699 - - 116,699
01/01/45 116,699 - - 116,699
Totals 7,001,961$ -$ 7,001,961$
Rate %
Interest
[This page intentionally left blank]
East Valley Water District
Principal and Interest Repayment Schedule
Department of Water Resources Construction Loan - Contract 10PX102
Year Ended June 30, 2015
76
Total
Due Date Principal Interest Payments
07/01/15 10,000$ - % -$ 10,000$
01/01/16 10,000 - - 10,000
07/01/16 10,000 - - 10,000
01/01/17 10,000 - - 10,000
07/01/17 10,000 - - 10,000
01/01/18 10,000 - - 10,000
07/01/18 10,000 - - 10,000
Totals 70,000$ -$ 70,000$
Rate %
Interest
East Valley Water District
Principal and Interest Repayment Schedule
Department of Water Resources Construction Loan - Contract 11CX101
Year Ended June 30, 2015
77
Total
Due Date Principal Interest Payments
07/01/15 6,508$ - % -$ 6,508$
01/01/16 6,508 - - 6,508
07/01/16 6,508 - - 6,508
01/01/17 6,508 - - 6,508
07/01/17 6,508 - - 6,508
01/01/18 6,508 - - 6,508
07/01/18 6,508 - - 6,508
01/01/19 6,508 - - 6,508
07/01/19 6,508 - - 6,508
01/01/20 6,508 - - 6,508
07/01/20 6,508 - - 6,508
01/01/21 6,508 - - 6,508
07/01/21 6,508 - - 6,508
01/01/22 6,508 - - 6,508
07/01/22 6,508 - - 6,508
01/01/23 6,508 - - 6,508
07/01/23 6,508 - - 6,508
01/01/24 6,508 - - 6,508
07/01/24 6,508 - - 6,508
01/01/25 6,508 - - 6,508
07/01/25 6,508 - - 6,508
01/01/26 6,508 - - 6,508
07/01/26 6,508 - - 6,508
01/01/27 6,508 - - 6,508
07/01/27 6,508 - - 6,508
01/01/28 6,508 - - 6,508
07/01/28 6,508 - - 6,508
01/01/29 6,508 - - 6,508
07/01/29 6,508 - - 6,508
01/01/30 6,508 - - 6,508
07/01/30 6,508 - - 6,508
01/01/31 6,508 - - 6,508
07/01/31 6,508 - - 6,508
01/01/32 6,508 - - 6,508
07/01/32 6,508 - - 6,508
01/01/33 6,508 - - 6,508
07/01/33 6,508 - - 6,508
(Continued)
Rate %
Interest
East Valley Water District
Principal and Interest Repayment Schedule
Department of Water Resources Construction Loan - Contract 11CX101 - Continued
Year Ended June 30, 2015
78
Total
Due Date Principal Interest Payments
01/01/34 6,508$ - % -$ 6,508$
07/01/34 6,508 - - 6,508
01/01/35 6,508 - - 6,508
07/01/35 6,508 - - 6,508
01/01/36 6,508 - - 6,508
07/01/36 6,508 - - 6,508
01/01/37 6,508 - - 6,508
07/01/37 6,508 - - 6,508
01/01/38 6,508 - - 6,508
07/01/38 6,508 - - 6,508
01/01/39 6,508 - - 6,508
07/01/39 6,508 - - 6,508
01/01/40 6,508 - - 6,508
07/01/40 6,508 - - 6,508
01/01/41 6,508 - - 6,508
07/01/41 6,508 - - 6,508
01/01/42 6,509 - - 6,509
07/01/42 6,509 - - 6,509
01/01/43 6,508 - - 6,508
Totals 364,450$ -$ 364,450$
Rate %
Interest
[This page intentionally left blank]
EAST VALLEY WATER DISTRICT
Changes in Net Position by Component
Last Ten Fiscal Years
79
Year ended June 30,
2006 2007 2008 2009 2010
Change In Net Position
Operating Revenue 20,122,090$ 21,977,829$ 23,198,698$ 24,535,251$ 24,427,059$
Operating Expenses 19,041,634 19,748,804 20,665,623 22,867,601 24,015,104
Operating Income (Loss) 1,080,456 2,229,025 2,533,075 1,667,650 411,955
Non Operating Revenue
(Expenses)
Investment Income 341,237 539,720 510,361 235,826 61,192
Other Income 51,247 140,474 64,043 138,173 178,515
Interest Expense (620,130) (554,914) (776,466) (1,094,926) (989,019)
Amortization (37,956) (37,955) (37,956) (37,956) (36,061)
Loss on Disposal of Assets 1,907,327 28,142 (36,983) (110,944) (133,412)
1,641,725 115,467 (277,001) (869,827) (918,785)
Special Item
Abandoned Projects - - - - -
Capital Contributions 3,032,089 3,530,415 2,806,993 1,737,025 101,233
Change in Net Position 5,754,270 5,874,907 5,063,067 2,534,848 (405,597)
Prior Period Adjustment
Net Position - Beginning 80,214,925 85,969,195 91,844,102 96,907,169 99,442,017
Net Position - Ending 85,969,195$ 91,844,102$ 96,907,169$ 99,442,017$ 99,036,420$
Net Position By Component
Invested in Capital Assets 76,414,981 81,696,386 89,593,423 93,342,590 93,380,410
Restricted - - - - -
Unrestricted 9,554,214 10,147,716 7,313,746 6,099,427 5,656,010
85,969,195$ 91,844,102$ 96,907,169$ 99,442,017$ 99,036,420$
(Continued)
SOURCE: East Valley Water District - Finance Department
EAST VALLEY WATER DISTRICT
Changes in Net Position by Component - Continued
Last Ten Fiscal Years
80
Year ended June 30,
2011 2012 2013 2014 2015
Change In Net Position
Operating Revenue 25,205,990$ 28,652,017$ 31,513,194$ 32,620,577$ 30,743,445$
Operating Expenses 24,368,478 24,664,829 24,859,076 29,191,176 29,146,339
Operating Income (Loss)837,512 3,987,188 6,654,118 3,429,401 1,597,106
Non Operating Revenue
(Expenses)
Investment Income 87,589 84,094 55,310 49,846 100,830
Other Income 195,070 137,094 397,796 334,700 800,278
Interest Expense (1,286,352) (1,451,516) (1,445,981) (1,917,676) (1,827,007)
Amortization (32,851) (35,284) (69,038) (99,688) (153,055)
Loss on Disposal of Assets (140,301) - - (606,085) -
(1,176,845) (1,265,612) (1,061,913) (2,238,903) (1,078,954)
Special Item
Abandoned Projects - - - - (2,413,478)
Capital Contributions 778,049 3,562,822 832,515 6,369,890 596,940
Change in Net Position 438,716 6,284,398 6,424,720 7,560,388 (1,298,386)
Prior Period Adjustment 2,861,951 (537,099) - (7,956,231)
Net Position - Beginning 99,036,420 99,475,136 108,621,485 114,509,106 122,069,494
Net Position - Ending 99,475,136$ 108,621,485$ 114,509,106$ 122,069,494$ 112,814,877$
Net Position By Component
Invested in Capital Assets 95,251,762 96,919,789 95,258,164 101,757,787 98,091,685
Restricted 103,029 416,250 920,554 2,274,769 2,322,238
Unrestricted 4,120,345 11,285,446 18,330,388 18,036,938 12,400,954
99,475,136$ 108,621,485$ 114,509,106$ 122,069,494$ 112,814,877$
SOURCE: East Valley Water District - Finance Department
EAST VALLEY WATER DISTRICT
Operating Revenue by Source
Last Ten Fiscal Years
81
Wastewater Wastewater Total
Year Ended Water Meter System Treatment Operating
June 30, Sales Charges Charges Charges Other Revenue
2006 9,303,974$ 2,377,376$ 2,262,028$ 5,471,880$ 314,319$ 19,729,577$
2007 10,660,279 2,451,060 2,532,458 5,607,142 301,065 21,552,004
2008 10,680,971 2,763,508 2,943,230 5,561,830 638,446 22,587,985
2009 11,767,683 3,096,902 3,407,900 5,631,258 763,245 24,666,988
2010 11,638,234 3,215,189 3,509,254 5,665,046 399,336 24,427,059
2011 11,625,249 3,695,345 3,708,815 5,761,956 500,831 25,292,196
2012 13,426,700 4,175,522 4,114,621 6,470,322 464,852 28,652,017
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 4,531,354 6,907,828 924,522 30,743,444
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
$35,000,000
Other
Wastewater
Treatement Charges
Wastewater System
Charges
Meter Charges
Water Sales
EAST VALLEY WATER DISTRICT
Water Operating Expenses
Last Ten Fiscal Years
82
Transmission Customer Accts, Total
Year Ended Source of Water & General, & Water Oper
June 30, Supply Pumping Treatment Distribution Admin Expenses
2006 639,948$ 2,987,709$ 381,846$ 695,088$ 4,361,458$ 9,066,049$
2007 390,124 3,451,376 626,770 766,082 4,215,687 9,450,039
2008 438,134 3,005,392 709,406 1,255,931 4,662,582 10,071,445
2009 608,742 2,961,727 1,420,962 1,403,076 5,320,152 11,714,659
2010 815,349 2,971,681 1,453,365 1,586,237 5,112,974 11,939,606
2011 853,161 2,853,461 1,080,954 1,514,394 4,923,033 11,225,003
2012 658,481 2,700,867 1,412,079 1,449,491 5,203,981 11,424,899
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
SOURCES: East Valley Water District - Customer Service, Finance, and Operations Departments
$-
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
Customer Accts,
General, & Admin
Transmission &
Distribution
Water Treatment
Pumping
Source of Supply
EAST VALLEY WATER DISTRICT
Wastewater Operating Expenses
Last Ten Fiscal Years
83
Customer Accts, Total
Year Ended Wastewater Wastewater General, & Wastewater Oper
June 30, Collections Treatment Admin Expenses
2006 336,171$ 5,473,390$ 1,512,221$ 7,321,782$
2007 377,919 5,607,172 1,498,844 7,483,935
2008 333,588 5,561,830 1,707,574 7,602,992
2009 449,296 5,631,258 1,932,193 8,012,747
2010 474,244 5,665,046 2,621,931 8,761,221
2011 447,426 5,995,720 2,857,272 9,300,418
2012 310,834 6,800,369 2,389,631 9,500,834
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
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
$12,000,000
Customer Accts,
General, & Admin
Wastewater
Treatment
Wastewater
Collections
EAST VALLEY WATER DISTRICT
Water Sales and Production
Last Ten Fiscal Years
84
Water Sales Water Produced
(Acre Feet) (Acre Feet)
21,400 24,079
25,015 27,252
21,375 24,144
21,660 23,700
19,803 21,792
18,712 20,605
19,708 20,982
20,036 22,308
19,910 20,665
17,431 18,494
SOURCES: East Valley Water District - Finance and Operations Departments
2015
2007
2008
2009
2010
2012
2011
2006
Year Ended
June 30,
2013
2014
0
5,000
10,000
15,000
20,000
25,000
30,000
Water Sales
Water Produced
EAST VALLEY WATER DISTRICT
Revenue Rates for Water
Last Ten Fiscal Years
85
Year ended June 30,
2006 2007 2008 2009 2010
Year ended June 30,
2006 2007 2008 2009 2010
7.50 7.50 8.40 10.45 10.45
7.50 7.50 8.40 10.45 10.45
14.00 14.00 15.70 14.63 14.63
29.50 29.50 33.00 18.81 18.81
42.50 42.50 47.60 30.39 30.39
74.50 74.50 83.50 114.94 114.94
124.00 124.00 139.00 146.29 146.29
241.00 241.00 270.00 219.44 219.44
362.00 362.00 405.00 303.04 303.04
(Continued)
HCF = Hundred Cubic Feet = 748 gallons
* On June 1, 2015 the District adopted Water Budget Based Rates.
SOURCE: East Valley Water District - Water and Sewer Rate Resolutions
Water Monthly System Charges
Charge per HCF 1.01$ 1.08$ 1.20$ 1.35$ 1.35$
Water Consumption Rates
3/4
1
1 1/2
2
Meter Size
(inches)
3
4
6
8
5/8
EAST VALLEY WATER DISTRICT
Revenue Rates for Water - Continued
Last Ten Fiscal Years
86
Year ended June 30,
2011 2012 2013 2014 2015*
Tier 1-$1.45
Tier 2-$2.07
Tier 3-$2.89
Year ended June 30,
2011 2012 2013 2014 2015*
11.54 12.58 13.71 13.71 20.96
11.54 12.58 13.71 13.71 26.61
17.56 19.14 20.87 20.87 37.92
32.49 35.41 38.60 38.60 66.19
74.47 81.17 88.48 88.48 100.12
137.40 149.77 163.25 163.25 207.54
227.30 247.76 270.06 270.06 365.85
452.06 492.74 537.09 537.09 744.67
721.76 786.72 857.52 857.52 1,366.62
HCF = Hundred Cubic Feet = 748 gallons
* On June 1, 2015 the District adopted Water Budget Based Rates.
SOURCE: East Valley Water District - Water and Sewer Rate Resolutions
Charge per HCF
Water Monthly System Charges
1.62$ 1.77$
Water Consumption Rates
1.77$ 1.49$
Meter Size
(inches)
5/8
3/4
1
1 1/2
2
3
4
6
8
EAST VALLEY WATER DISTRICT
Revenue Rates for Wastewater
Last Ten Fiscal Years
87
Year ended June 30,
2006 2007 2008 2009 2010
Residential (1 to 3 units)
Flat Monthly Charge 7.00$ 7.75$ 9.75$ 10.84$ 10.84$
Commercial
Flat Monthly Charge - - - - -
plus,
Charge per HCF 0.34 0.37 0.49 0.55 0.55
Year ended June 30,
2006 2007 2008 2009 2010
Residential (1 to 3 units)
Flat Monthly Charge 14.50 14.50 14.50 15.25 15.25
Commercial
Flat Monthly Charge 2.00 2.00 2.00 2.00 2.00
plus,
Charge per HCF:
Multi-family (4 + units) 0.83 0.83 0.83 0.87 0.87
Retail 1.70 1.70 1.70 1.79 1.79
Restaurants/Lounges 1.84 1.84 1.84 1.93 1.93
Laundromats 1.15 1.15 1.15 1.21 1.21
Dry Cleaners 1.70 1.70 1.70 1.79 1.79
Schools/Churches 0.62 0.62 0.62 0.65 0.65
Governments/Municipal 1.32 1.32 1.32 1.39 1.39
Convalescent Homes 0.84 0.84 0.84 0.88 0.88
Hotels 1.84 1.84 1.84 1.93 1.93
Ofc Bldgs/Motels 1.32 1.32 1.32 1.39 1.39
Auto Repair/Svc Stations 1.17 1.17 1.17 1.23 1.23
Car Wash 1.17 1.17 1.17 1.23 1.23
(Continued)
HCF = Hundred Cubic Feet = 748 gallons
* On June 1, 2015 the District adopted Water Budget Based Rates.
SOURCE: East Valley Water District - Water and Sewer Rate Resolutions
Wastewater Maintenance Charges
Wastewater Treatment Charges
EAST VALLEY WATER DISTRICT
Revenue Rates for Wastewater - Continued
Last Ten Fiscal Years
88
Year ended June 30,
2011 2012 2013 2014 2015*
Residential (1 to 3 units)
Flat Monthly Charge 12.93$ 14.09$ 15.36$ 15.36$ 35.86$
Commercial
Flat Monthly Charge 3.28 3.58 3.90 3.90 3.90
plus,
Charge per HCF 0.46 0.50 0.55 0.55 0.55
Year ended June 30,
2011 2012 2013 2014 2015*
Residential (1 to 3 units)
Flat Monthly Charge 16.00 18.50 18.50 18.50 18.50
Commercial
Flat Monthly Charge 2.00 2.40 2.40 2.40 2.40
plus,
Charge per HCF:
Multi-family (4 + units) 0.95 1.25 1.25 1.25 1.80
Retail 1.90 2.10 2.10 2.10 2.65
Restaurants/Lounges 2.00 2.70 2.70 2.70 3.25
Laundromats 1.30 1.50 1.50 1.50 2.05
Dry Cleaners 1.90 2.10 2.10 2.10 2.65
Schools/Churches 0.70 1.10 1.10 1.10 1.65
Governments/Municipal 1.50 2.70 2.70 2.70 2.05
Convalescent Homes 0.95 1.50 1.50 1.50 1.90
Hotels 2.00 1.35 1.35 1.35 3.25
Ofc Bldgs/Motels 1.50 2.70 2.70 2.70 2.05
Auto Repair/Svc Stations 1.30 1.30 1.30 1.30 1.85
Car Wash 1.30 1.30 1.30 1.30 1.85
HCF = Hundred Cubic Feet = 748 gallons
* On June 1, 2015 the District adopted Water Budget Based Rates.
SOURCE: East Valley Water District - Water and Sewer Rate Resolutions
Wastewater Maintenance Charges
Wastewater Treatment Charges
EAST VALLEY WATER DISTRICT
Active Services by Type
Last Ten Fiscal Years
89
Year Ended Residential Multi-Family Total
June 30, (1 to 3 units) (4+ units) Commercial Irrigation Fire Svcs Service
2006 18,243 534 1,315 267 1,295 21,654
2007 18,454 532 1,316 272 1,295 21,869
2008 18,367 516 1,309 289 1,301 21,782
2009 18,403 508 1,293 306 1,306 21,816
2010 18,562 496 1,277 310 1,324 21,969
2011 18,564 502 1,273 310 1,318 21,967
2012 18,584 497 1,268 313 1,321 21,983
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
SOURCES: East Valley Water District - Customer Service and Finance Departments
0
5,000
10,000
15,000
20,000
25,000
Fire Svcs
Irrigation
Commercial
Multi-Family
Residential
EAST VALLEY WATER DISTRICT
Principal Customers
Current Fiscal Year and Nine Years Ago
90
Water Percentage Water Percentage
Consumed of Total Consumed of Total
Customer (AF) Rank (%) (AF) Rank (%)
San Bernardino City Unified School District 556 1 3.01% 407 1 1.69%
Patton State Hospital 414 2 2.24%
Eash Highlands Ranch 299 3 1.62% 243 3 1.01%
San Manuel Mission Indians 268 4 1.45% 148 7 0.61%
San Manuel Indian Bingo & Casino 201 5 1.09% 368 2 1.53%
Stubblefield Mobile Home Parks & Offices 192 6 1.04% 211 5 0.88%
City of Highland 159 7 0.86% 198 6 0.82%
Valencia Lea Mobile Home Park 127 8 0.69% 120 10 0.50%
Victoria Village Apts 108 9 0.58% 123 9 0.51%
Village Lakes Homeowners Assoc 91 10 0.49% 213 4 0.88%
Safety Investment 135 8 0.56%
Total - Top 10 2,415 13.06% 2,166 9.00%
Total - District 18,494 100.00% 24,079 100.00%
SOURCES: East Valley Water District - Customer Service and IT Departments
20062015
EAST VALLEY WATER DISTRICT
Ratio of Outstanding Debt
Last Ten Fiscal Years
91
As a Share of
Outstanding Per Personal
Debt Capita Income
2006 $ 26,764,017 $ 426 1.47%
2007 24,823,814 380 1.26%
2008 23,049,105 373 1.22%
2009 21,183,730 339 1.14%
2010 19,221,480 302 1.01%
2011 33,545,000 518 1.66%
2012 35,950,760 546 1.70%
2013 53,618,412 573 1.75%
2014 56,262,882 592 *
2015 54,529,323 536 *
* Note: This data was not developed in the format required for this fiscal year.
SOURCE: East Valley Water District - Finance Department
Note: Two State Revolving Fund (SRF) loans totaling $515,580, for the Arroyo Verde and Eastwood
Farms Assessment Districts, and which are secured by assessment liens and assessments on property
owners within those districts, are excluded from this schedule.
Year Ended
June 30,
$5,000,000
$15,000,000
$25,000,000
$35,000,000
$45,000,000
$55,000,000
$65,000,000
Outstanding Debt
EAST VALLEY WATER DISTRICT
Debt Service Coverage
Last Ten Fiscal Years
92
Gross Operating Net Available
Revenue(1)Expenses (2)Revenue Principal Interest Total
13,069,160$ 9,066,049$ 4,003,111$ 1,679,209$ 991,303$ $ 2,670,512 1.50 %
14,773,286 9,450,039 5,323,247 2,025,825 1,120,815 3,146,640 1.69
16,028,695 10,071,445 5,957,250 1,774,710 1,120,091 2,894,801 2.06
16,187,479 11,714,619 4,472,860 1,865,373 1,035,456 2,900,829 1.54
15,510,043 11,939,606 3,570,437 1,962,250 845,499 2,807,749 1.27
16,911,310 11,129,387 5,781,923 1,347,250 828,894 2,176,144 2.66
18,286,850 11,424,899 6,861,951 1,048,319 980,000 2,028,319 3.38
20,225,013 11,022,233 9,202,780 1,095,000 1,382,013 2,477,013 3.72
27,397,559 13,219,850 14,177,709 1,167,718 1,840,671 3,008,389 4.71
20,662,750 13,290,243 7,372,507 1,546,490 1,813,348 3,359,838 2.19
Gross Operating Net Available
Revenue(1)Expenses (2)Revenue Principal Interest Total
* * * * * * *
* * * * * * *
* * * * * * *
* * * * * * *
* * * * * * *
* * * * * * *
10,674,998 9,500,834 1,174,164 75,000 36,650 111,650 10.52
11,600,800 10,139,532 1,461,268 80,000 35,100 115,100 12.70
11,974,164 10,463,608 1,510,556 85,000 184,621 269,621 5.60
11,578,742 10,712,477 866,265 85,000 229,725 314,725 2.75
(1)
(2)Operating expenses, less depreciation, for the utility fund.
*Not Applicable
SOURCE: East Valley Water District - Finance Department
Year Ended
2007
2008
Water Department
Wastewater Department
Coverage
Coverage
Debt Service
Debt Service
June 30,
2014
2015
2009
2010
2011
2012
2013
Year Ended
June 30,
2006
Gross revenue includes all operating revenue, interest income, other non-operating revenue and connection fees
from the utility fund.
2015
2006
2007
2013
2014
2008
2009
2010
2011
2012
EAST VALLEY WATER DISTRICT
Demographics and Economic Statistics
Last Ten Calendar / Fiscal Years
93
Personal
Income Personal
District Unemployment (thousands Income
Population Rate(1)Population(2)of dollars)(2)Per Capita(2)
2006 62,833 4.9%1,974,140 $57,300,625 $ 29,026
2007 65,378 5.1%1,992,161 60,002,703 30,119
2008 61,855 6.4%2,003,735 61,343,103 30,614
2009 62,455 10.5%2,013,960 60,156,703 29,870
2010 63,567 13.4%2,041,647 61,277,839 30,014
2011 64,698 13.3%2,063,143 64,454,103 31,241
2012 65,850 12.2%2,077,453 66,577,329 32,048
2013 93,500 10.6%2,088,371 68,387,465 32,747
2014 95,000 8.9%2,112,619 * *
2015 101,733 7.1%***
* Note: 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.
Estimates for 2010-2013 reflect county population estimates available as of March 2014.
(2)Bureau of Economic Analysis (BEA)
Personal Income Per Capita was computed using Census Bureau midyear population estimates.
Estimates for 2010-2013 reflect county population estimates available as of March 2014.
East Valley Water District - Finance Department
June 30,
County of San Bernardino
Year Ended
EAST VALLEY WATER DISTRICT
Full-Time Employees
Last Ten Fiscal Years
94
Year Ended District Engineering &
June 30, Administration Maintenance Operations Total
2006 19 37 10 66
2007 19 37 10 66
2008 20 37 10 67
2009 20 38 10 68
2010 20 38 10 68
2011 21 35 10 66
2012 21 31 11 63
2013 25 27 11 63
2014 25.5 29 11 65.5
2015 27.5 28.5 11 67
SOURCE: East Valley Water District - Finance and HR Departments
0
10
20
30
40
50
60
70
80
District Administration
Engineering & Maintenance
Operations
EAST VALLEY WATER DISTRICT
Operating and Capacity Indicators for Water and Wastewater
Last Ten Fiscal Years
95
Annual Average
Miles of Number of Production Production
Water Mains Fire Hydrants (MG) (MGD)
272 * 7,846 21
284 * 8,880 24
284 * 7,867 22
286 * 7,723 21
287 * 7,101 19
294 2,854 6,714 18
297 2,854 6,837 19
303 2,915 7,269 20
297 2,976 6,734 18
316 3,005 6,026 17
Annual Daily
Miles of Service Sewerage Sewerage
Sewer Main Connections (MG) (MGD)
* * 7,062 19
* * 7,992 22
* 19,115 7,081 19
205 19,132 6,950 19
208 19,333 6,391 18
208 19,535 6,043 17
224 19,577 6,153 17
224 20,402 6,542 18
223 20,404 6,060 17
224 20,534 5,424 15
* This data was not developed in the format required for this fiscal year.
SOURCE: East Valley Water District - Engineering and Finance Departments
Water System
2008
2011
2014
2015
Wastewater System
2009
2010
2011
2012
2013
Year Ended
June 30,
Year Ended
June 30,
2006
2007
2008
2009
2010
2012
2013
2006
2007
2014
2015
Note: The District Sewer Master Plan was updated in October 2013, providing more accurate
information on wastewater flows.
Last Ten Fiscal Years
BOARD AGENDA STAFF REPORT
Agenda Item #5.
Meeting Date: December 9, 2015
Disc ussion Item
To: G o verning Board Memb ers
From: G eneral Manager/CEO
Subject: Contrac t Amendments fo r the Legal Team, EIR Cons ultant, Permitting Co nsultant and
Communic ations Co nsultant for the S terling Natural Resource C enter
RECOMMENDATION:
Autho rize the General Manager to exec ute the following c o ntract amend ments :
1. Mus ick, P eeler & Garrett LLP for p ro vid ing legal s ervices o n enviro nmental doc uments und er preparation,
2 . Enviro nmental S cience As s o ciates (ES A) fo r pro viding s ervic es for the Notice o f Preparatio n, c o nduc ting
various studies and preparing the Enviro nmental Impac t Report (EIR),
3 . RMC Water and Enviro nment fo r as s is tanc e in o b taining permits from several regulato ry agencies and
p ro viding as s is tanc e with the p rep aration of S RF funding ap p licatio n and s up p o rting d o cuments ,
4. Katz and As s oc iates fo r c o mmunity outreac h and meetings related to the Draft Environmental Impac t
Report.
BACKGROUND / ANALYSIS:
All o f these cons ultants were s elected through a c o mp etitive s electio n p ro ces s as the Dis tric t’s cons ultants to
as s is t with vario us as pec ts o f the Dis tric t’s R ecycled Water Center now known as the Sterling Natural
Resource Center (SNRC ). The Bo ard to o k formal actio n earlier this year to authorize the General Manager to
exec ute the P ro fes s io nal S ervic es Agreement with thes e cons ultants to p ro vide s ervic es req uired for
completio n of the EIR and p ermitting.
Since the legal team and c ons ultants have come o n b o ard , the pro jec t has evo lved into a regional projec t under
a F ramework Agreement b etween EVWD and the S an Bernardino Valley Munic ip al Water Dis tric t. T he
Framewo rk Agreement enables collaboration between the two agenc ies within the San Bernardino Valley regio n
to ad vance their integrated rec yc led water management objec tives . The Framework Agreement provid es fo r the
cons tructio n and o p eration of the SNRC by Valley Dis tric t. The agreement als o c ontemplates a regio nal p lan in
p artners hip with other water agencies to increas e the use o f recycled water to s o lve regional water s up p ly
challenges .
The S cope of Work in evaluating various p ro ject elements o f SNRC and to p rep are the s upporting d o cuments
fo r these cons ultants has inc reas ed sub s tantially and their agreements need to b e amend ed ac cordingly.
The autho rity reques ted under the c urrent item will mo ve the p ro ces s forward to complete the environmental
d o cumentatio n and related s tud ies for the EIR and permitting fo r the SNRC p ro gram.
AGENCY IDEALS AND ENDEAVORS:
Id eals and End eavor I - Encourage Inno vative Inves tments To P ro mo te Sus tainable Benefits
(A) - Develop projec ts and p ro grams to ensure s afe and reliable s ervic es
(B) - Manage and Id entify Metho d s to Co nserve Natural Resource
(E) - Ac tively S eek Alternative S upply Res ourc es
REVIEW BY OTHERS:
The Engineering Department, the CFO and Dis tric t’s Legal Co uns el have reviewed this agenda item.
FISCAL IMPACT :
The imp acts as s o c iated with this agend a item are the legal team and cons ultant fees as fo llo ws:
1. A contrac t amend ment in the amo unt o f $330,000 for the legal team of Mus ic k, Peeler & Garrett LLP.
2. A contrac t amend ment in the amo unt o f $135,000 for the EIR cons ultant ES A.
3. A contrac t amend ment in the amo unt o f $380,000 for the permitting cons ultant RMC Water and
Environment.
4. A contrac t amend ment in the amo unt o f $55,000 fo r the communic ation c ons ultant for p ublic outreac h
related to the EIR .
The fis cal impac t fo r this p ro ject is the aggregate of all amend ments $900,000. T he p ro ject will be fund ed
thro ugh a borro wing fro m sewer fund res erves until the reimb ursements are s ec ured through grant and loan
fund s .
Res p ectfully s ubmitted:
Rec o mmended b y:
Jo hn Mura
General Manager / C EO
Jean Cihigo yenetc he
District Co uns el
BOARD AGENDA STAFF REPORT
Agenda Item #6.
Meeting Date: December 9, 2015
Discussion Item
To: Governing Board Members
From: Jean Cihigoyenetche, Legal Counsel
Subject: General Manager/CEO Emp loyment Agreement
RECOMMENDATION:
Cons ider poss ib le amendments to the General Manager/CEO’s Emp loyment Agreement.
BACKGROUND / ANALYSIS:
The General Manager/CEO’s Employment Agreement was approved on March 12, 2014. As a result of
concerns related to contract language, this item was requested to be brought back for further
discussion and possible action.
AGENCY IDEALS AND ENDEAVORS:
Ideals and Endeavor II - Maintain An Environment Committed To Elevated Public Service
(C) – Identify Strategies to Attract and Retain a High Quality Workforce
REVIEW BY OTHERS:
This agenda item has been reviewed by the District’s Legal Counsel.
FISCAL IMPACT:
The fiscal impact associated with this agenda is unknown at this time.
Recommended by:
Jean Cihigoyenetche
District Legal Counsel
BOARD AGENDA STAFF REPORT
Agenda Item #7.
Meeting Date: December 9, 2015
Disc ussion Item
To: G o verning Board Memb ers
From: G eneral Manager/CEO
Subject: Bo ard R eo rganization
RECOMMENDATION:
Staff rec o mmend s that the Bo ard of Direc tors :
a. Elec t o ffic ial offic ers for the positio ns of Board President, Vic e Pres ident
b . Ap p o intment o f General Manager, Chief Financ ial Offic er and Board Sec retary
c. Set the time, day and plac e for holding meetings
BACKGROUND / ANALYSIS:
The Bo ard of Direc to rs c o nducts their reo rganizatio n p ro cess at the first regular meeting in December p urs uant
to California Water Code Sec tion 30520.
The Bo ard reo rganization ens ures the effic ient management of the Dis tric t and reflec ts a dedic ation to the
highest standard s of integrity and acc o untability s o as to c o ntinue to earn the trus t and c o nfidence o f the pub lic
s erved b y the Dis trict.
Staff is recommending that the Dis tric t continue to ho ld regularly sc heduled Bo ard meetings at 31111
Greenspot Road, Highland, CA, on the 2nd and 4th Wed nesday of each mo nth.
The Bo ard will c ond uc t closed s es s io n at 4:30 pm and commence the regular board meeting at 5:30 p m.
Sho uld closed s es s ion items require more than the allo tted time, the Board will adjourn to o p en s es s io n at 5:30
p m, cond uc t Dis tric t b usines s , and then ad journ b ack into closed s es s io n. After clos ed s es s io n, the Bo ard will
reconvene into open s es sion and announc e any ac tion taken in the closed s es s ion prior to ad jo urnment of the
meeting.
AGENCY IDEALS AND ENDEAVORS:
Id eals and End eavor II - Maintain An Environment Committed To Elevated P ublic S ervic e
(E) - Practice Trans parent and Acc o untable F is c al Management
REVIEW BY OTHERS:
This agend a item has b een reviewed by the Adminis tratio n Department.
FISCAL IMPACT :
There is no fis c al imp act assoc iated with this agend a item.
Res p ectfully s ubmitted:
Rec o mmended b y:
Jo hn Mura
General Manager / C EO
Jus tine Hendric ksen
District Clerk
DECEMBER 9, 2015Comprehensive
Annual Financial Report
(CAFR)
FY 2014-15 CAFR ENDING JUNE 30
•Overview
•Financial Condition
•Capital Asset Condition
•Debt Service Coverage
•GASB 68 Implementation
•Questions
2
•Maintained Stable Financial Condition
–Despite $1.8 Million Decline in Water Sales (12.4%)
•Maintained Healthy Reserves
•Completed 3 Major CIP Projects
•Met Debt Service Coverage Requirements
•Implemented GASB 68
HIGHLIGHTS
3
PRIOR YEAR COMPARISON
FY 2014-15 FY 2013-14
Operating Revenue 30,743,445 32,620,577
Operating Expenses (29,146,339) (29,191,176)
Operating Income 1,597,106 3,429,401
Non-Operating Revenue 901,108 384,546
Non-Operating Expenses (1,980,062) (2,623,449)
Contributions 596,940 6,369,890
Special Items-Abandoned Project (2,413,478) 0
Increase In Net Position (1,298,388) 7,560,388
4
FY 2014-15 EXPENDITURES
5
FINANCIAL CONDITION
6
0
0.5
1
1.5
2
2.5
2011 2012 2013 2014 2015
Ra
t
i
o
Fiscal Year
Quick Ratio
FINANCIAL CONDITION
7
0
50
100
150
200
250
300
2011 2012 2013 2014 2015
Da
y
s
Fiscal Year
Days Cash on Hand
FINANCIAL CONDITION
8
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
$18.0
$20.0
2011 2012 2013 2014 2015
Mi
l
l
i
o
n
D
o
l
l
a
r
s
Fiscal Year
Unrestricted Reserves
CAPITAL ASSET CONDITION
9
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
$80.0
Mi
l
l
i
o
n
D
o
l
l
a
r
s
Asset Type
Water Fixed Assets Depreciation
Depreciated
Remaining Life
CAPITAL ASSET CONDITION
10
$-
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
Pipelines General
Mi
l
l
i
o
n
D
o
l
l
a
r
s
Asset Type
Wastewater Fixed Assets Depreciation
Depreciated
Remaining Life
DEBT SERVICE COVERAGE
11
DEBT SERVICE COVERAGE
12
GASB 68 IMPLEMENTATION
13
•New accounting standards will provide additional
transparency on long-term pension obligations in annual
financial reports
•District recognizes Net Pension Liability on Statement of
Net Position
–Difference between Total Pension Liability and Market Value of
Plan Investments
•Pension expense includes contributions paid into system,
as well as changes in the Net Pension Liability affected
by:
–Changes in assumptions
–Difference between projected and actual earnings on Plan
Investments