HomeMy WebLinkAboutAgenda Packet - Finance & Human Resources Committee - 10/05/2016FINANCE AND POLICY COMMITTEE
October 5, 2016 - 1:00 PM
31111 Greenspot Road, Highland CA 92346
AGENDA
CALL TO ORDER
PLEDGE OF ALLEGIANCE
PUBLIC COMMENTS
NEW BUSINESS
1.Approve the July 28, 2016 Finance and Policy Standing Committee Meeting Minutes
2.Review Draft Comprehensive Annual Financial Report 2015-16
3.Discuss Upcoming Finance and Policy Standing Committee Meetings
ADJOURN
P LEASE NOT E:
P ursuant to Go vernment Co d e Sectio n 54954.2(a), any reques t fo r a d is ability-related modific ation or
ac commod ation, inc luding auxiliary aid s o r s ervices , that is s o ught in ord er to participate in the ab o ve-
agendized pub lic meeting s hould be d irected to the Dis tric t Clerk at (909) 885-4900 at leas t 72 ho urs prior
to said meeting.
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Minutes 7/26/2016 cmk
Subject to Approval
EAST VALLEY WATER DISTRICT July 26, 2016
FINANCE AND POLICY STANDING COMMITTEE MEETING
MINUTES
Ms. Koide called the meeting to order at 3:30 p.m. and Mr. Paredes led the flag salute.
PRESENT: Directors: Morales, Smith
ABSENT: Brian Tompkins, Chief Financial Officer
STAFF: Nate Paredes, Business Services Manager; Kerrie Bryan, Human
Resources/Risk & Safety Manager; Christi Koide, Administrative
Assistant
GUEST(s): Mr. Fred Yauger
PUBLIC COMMENTS
Ms. Koide declared the public participation section of the meeting open at 3:32 p.m.
Mr. Yauger stated he would like to hold his comments until after each agenda item
presented.
With no further comments the public participation section of the meeting closed at
3:34 p.m.
APPROVE THE JUNE 28, 2016 FINANCE AND POLICY STANDING COMMITTEE MEETING
MINUTES
M/S/C (Smith-Morales) to approve the June 28, 2016 Finance and Policy Standing
Committee Meeting minutes as submitted.
JUNE 2016 DISBURSEMENTS: ACCOUNTS PAYABLE DISBURSEMENTS FOR THE PERIOD
INCLUDE CHECK NUMBERS 247892 THROUGH 248104, BANK DRAFTS, AND ACH
PAYMENTS IN THE AMOUNT OF $3,046,838.12 AND $320,467.84 FOR PAYROLL.
The Business Services Manager pointed out two large disbursements made to the East
Highlands Ranch MHOA and Lynwood Owners Association for Conservation Rebates for
Turf Replacement totaling $406,646.
REVIEW THE DRUG AND ALCOHOL POLICY
The Human Resources/Risk & Safety Manager provided the committee with a brief
overview of the proposed changes to the District’s Drug and Alcohol Policy and
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Minutes 7/26/2016 cmk
highlighted the following sections: Medication Reporting Requirements, Indications for
Alcohol and Drug Testing, Voluntary Disclosure, and Reasonable Suspicion Evaluation.
The Human Resources/Risk & Safety Manager also explained that the District completes
Post-Accident Drug Screening on a case by case basis, depending on the severity of the
accident.
ADJOURN
The meeting adjourned at 3:51 p.m.
James Morales, Jr., David E. Smith,
Governing Board Member Governing Board Member
STAFF REPORT
Agenda Item #2.
Meeting Date: Oc tober 5, 2016
Disc ussion Item
To: FINANCE AND POLICY COMMIT T EE
From: Chief F inancial Officer
Subject: Review Draft Co mp rehens ive Annual F inancial Report 2015-16
RECOMMENDATION:
Staff rec o mmend s that the Financ e and Po lic y Standing Committee review the attac hed Comprehensive Annual
Financ ial Report (C AF R) and audit reports .
BACKGROUND / ANALYSIS:
Attac hed is the Eas t Valley Water Dis tric t Comprehensive Annual F inancial Report (CAF R) fo r the fis cal year
ended June 30, 2016. 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 ac cordance with aud iting s tand ard s generally acc ep ted in the United States of Americ a
and guid elines es tab lis hed b y the Califo rnia S tate C o ntro ller for Spec ial Dis tric ts .
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 .
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.
ATTACHMENTS:
Description Type
Draft CAFR 20 15 -16 Backup Material
Comprehensive Annual Financial Report
Fiscal Year End ed
June 30, 2016
East Valley Water District
Prepared by: Finance Department
31111 Greenspot Road
Highland, CA 92346
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2016
Table of Contents
Page No.
Introductory Section
Letter of Transmittal ............................................................................................................................... 3-6
Organizational Structure ........................................................................................................................... 7
Principal Officials ........................................................................................................................................ 8
GFOA Certificate ....................................................................................................................................... 9
Financial Section
.......................................................................................................... 12-14
........................................................................................ 15-26
Basic Financial Statements
Statement of Net Position .............................................................................................................. 28-29
Statement of Revenues, Expenses, and Changes in Net Position ......................................... 30-31
Statement of Cash Flows ............................................................................................................... 32-33
Notes to the Basic Financial Statements .................................................................................... 34-60
Required Supplementary Information
Schedule of Proportionate Share of Net Pension Liability ............................................................ 62
Schedule of Contributions ................................................................................................................... 63
Schedule of Funding Progress for Retirees Health Coverage ..................................................... 64
Supplementary Information
History and Organization ..................................................................................................................... 67
Combining Schedule of Net Position .......................................................................................... 68-69
Combining Schedule of Revenues, Expenses, and Changes in Net Position ..................... 70-72
Combining Schedule of Cash Flows ........................................................................................... 74-75
Refunding Revenue Bonds - Series 2010 .................................................................................. 76-77
Refunding Revenue Bonds - Series 2013 .................................................................................. 78-79
US Bancorp Installment Purchase Agreement ................................................................................ 80
Department of Water Resources Construction Loan - Contract 00C412................................... 81
Department of Water Resources Construction Loan - Contract 10CX110 .......................... 82-83
Comprehensive Annual Financial Report
Fiscal Year Ended June 30, 2016
Table of Contents
Page No.
Department of Water Resources Construction Design Loan - Contract 10PX102 ................... 85
Department of Water Resources Construction Loan - Contract 11CX101 .......................... 86-87
Statistical Information Section
Changes in Net Position by Component Last Ten Fiscal Years .............................................. 90-91
Operating Revenue by Source Last Ten Fiscal Years ..................................................................... 92
Water Operating Expenses Last Ten Fiscal Years ........................................................................... 93
Wastewater Operating Expenses Last Ten Fiscal Years................................................................. 94
Water Sales and Production Last Ten Fiscal Years......................................................................... 95
Revenue Rates for Water Last Ten Fiscal Years ........................................................................ 96-97
Revenue Rates for Wastewater Last Ten Fiscal Years .............................................................. 98-99
Active Services by Type Last Ten Fiscal Years ............................................................................. 100
Principal Customers Current Fiscal Year and Nine Years Ago .................................................. 101
Ratio of Outstanding Debt Last Ten Fiscal Years.......................................................................... 102
Debt Service Coverage Last Ten Fiscal Years .............................................................................. 103
Demographic and Economic Statistics Last Ten Calendar / Fiscal Years ............................... 104
Full-Time Employees Last Ten Fiscal Years ................................................................................... 105
Operating and Capacity Indicators for Water and Wastewater Last Ten Fiscal Years .......... 106
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October 12, 2016
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, 2016. This report was prepared by District staff in accordance with standards established by
the Governmental Accounting Standards Board.
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
Discussion and Analysis in the 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 November 2016, 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, 2016, the District had 22,591 active water connections and 24,069 active wastewater connections.
Water Supply and Reliability
2016 includes groundwater (75.9 percent) and surface water
(24.1 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.
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Local Economy
38 percent since 2006, but has experienced a low number of new
commercial, with no major industrial users. Large consumers remain consistent year to year with the San Bernardino
City Unified School District, Patton State Hospital, City of Highland, and San Manuel Mission Indians 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
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 t
(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
75.9%
24.1%
Water Supply Sources
Groundwater
Surface Water
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the highest priority projects are adopted and receive authorization for expenditure along with the Distri
budget.
funding sources, both of which help reduce reliance on rates and rate increases. In recent years the District h as 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,
per recording of financial transactions, and the
internal control structure is designed to provide reasonable assurance that these objectives ar e 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 Distric
and capital projects. Each quarter, management provides the Board with a quarterly budget review to allow Board
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 Treas
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
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, 2015. 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 efficiently
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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 Achieve
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 fin ancial 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, 2016
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EAST VALLEY WATER DISTRICT
Principal Officials
Year Ended June 30, 2016
8
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, 2016
Name Title
Elected /
Appointed Current Term
Ronald Coats Chairman of the Board Elected 2013 - 2017
Chris Carrillo Vice-Chairman of the Board Elected 2015 - 2019
David Smith Governing Board Member Elected 2015 - 2019
James Morales, Jr.Governing Board Member Elected 2013 - 2017
Nanette Shelton Governing Board Member Appointed 2015 - 2017
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, 2015
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EAST VALLEY WATER DISTRICT
Independent Auditor’s Report
Year Ended June 30, 2016
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REPORT FROM LAST YEAR
(place-holder)
EAST VALLEY WATER DISTRICT
Independent Auditor’s Report
Year Ended June 30, 2016
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EAST VALLEY WATER DISTRICT
Independent Auditor’s Report
Year Ended June 30, 2016
14
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2016
15
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 th e 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
presented in the format prescribed for proprietary funds
by the Governmental Accounting Standards Board.
The following financial statements for the year ended June 30, 201 6 (2015 for comparative purposes only) consist of
financial condition and operating results. They are the Statement of Net Position, the Statemen t of Revenue, Expenses,
and Changes in Net Position, and the Statement of Cash Flows.
and outflows of resources, with the difference re
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.
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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 pos ition 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
the net effect of decreases
in Current and Restricted assets, and an increase in Capital assets.
Restricted Cash balances decreased from $7.6 to $5.9 million as remaining unspent bond proceeds
2013 revenue bonds were used to fund the capital projects for which they were received. The nature of the Restricted
Cash balances at June 30, 2016 are further discussed in Note 3 to the financial statements.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2016
16
(in millions)
2016 2015
Current & Other Assets 18.0$ 21.3$
Restricted Cash 5.9 7.6
Capital Assets - Net 155.5 151.3
Total Assets 179.4 180.2
Total Deferred Outflow of Resources 1.4 0.9
Current Liabilities 8.2 7.2
Non-Current Liabilities 58.7 59.5
Total Liabilities 66.9 66.7
Total Deferred Inflows of Resources 0.9 1.6
Net Position
Net Investment in Capital Assets 103.2 98.1
Restricted 2.3 2.3
Unrestricted 7.5 12.4
Total Net Position 113.0$ 112.8$
Capital Assets increased $4.2 million despite recognition during the fiscal year of $7.1 million in charges for
depreciation. As mentioned above, the District incurred significant spending on capital items, resulting in $9.6 mill ion
in new plant and equipment being placed in service, and a $1.7 net increase in Construction in Progress taking p lace
in 2015-16.
While current assets have decreased by $3.1 million, current liabilities increased by $1.0 million due to significant
payables at year end related to rebates for turf removal, legal fees, and the purchase of a hydroexcavator. As a result
of these year end fluctuations in cash and payables, the has declined from 2.9:1 to 2.1:1, and
the liquidity ratio from 2.1:1 at June 30, 2015, to 1.5:1 at June 30, 2016.
Non-Current Liabilities decreased by $0.9 million with the payment of scheduled debt service on long-term debt,
despite an increase in Net Pension Obligations calculated in accordance with Governmental Accounting Standards
Board (GASB) statement number 68 Accounting and Financial Reporting for Pensions.
Outstanding debt decreased by $2.1 million as the District made timely scheduled payments to bondholders and
other creditors during fiscal year 201 5-16. Long term debt and the accounting for District pensions are further
explained in financial statement Notes 3 and 8, respectively.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2016
17
113.0 million at the end of fiscal year 2016, a $0.2 million increase compared to
the end of the previous fiscal year. Of the $113.0 million Net Position balance, $103.2 million is categorized as
Investment in Capital Assets, $2.3 million is Restricted for Capital Expansion Projects, and $7.5 million is
Unrestricted.
et Position has increased $13.5 million, and $21.2 million over five
and ten year periods, respectively
Activities and Changes in Net Position
Water Operations
In FY 2015-16, the District produced 16,614 acre feet of water and sold 14,999 acre feet to consumers. The difference
of 1,615 acre feet (9.7%) of water was the result of District flushing programs, water use at District facilities, and
system leaks. Water sold reflects a 13.9% 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
through rebate programs, irrigation watering restrictions, and through assessment of penalties for water waste when
necessary.
As part of its water conservation efforts, the District adopted Water Budget based rates which were implemented in
June of 2015. Water Budget rates are designed to allocate to each customer, sufficient water to meet efficient water
needs for indoor and outdoor use based on
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 hig her tier 3 pricing. 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.
The new rate structure helped the District offset falling water sales, and a continued trend of cost recovery and fiscal
sustainability.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2016
18
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2013
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2015
2016
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Water Department Operating
Revenue versus Expenses
Revenue
Expenses
The drop in water production discussed above, along with a shift in p roduction from wells to the District s surface
water treatment plant, resulted in significant energy costs savings for 2015-16. The shift in production was made
possible by the recent expansion of the treatment plant from 4 million gallons per day (mgd) to 8 mgd, and has given
the District the capability to take all of its rightful flows from the Santa Ana River for treatment and distribution to
District customers.
Energy savings and other year to year variancces in the water production costs centers incl ude:
Source of supply (wells) costs decreased $546 thousand due to a 28% decrease in power costs. These
savings were slightly offset by an increase in shareholder assessments paid to the North Fork Water Company
Pumping: power costs for boosting water to higher pressure zones decreased by 10%, however, contract
services increased by $110 thousand for two reasons, 1) implementation of a preventative maintenance
program whereby a designated number of booster pumps are pulled and inspected each year, and 2) building
and landscape maintenance costs previously charged as an administrative expense were charged to this
cost center in 2015-16. This caused pumping costs to increase 15% overall.
Treatment: water treatment costs increased 11% during the 2015-16 fiscal year. This included power costs
savings of $34 thousand, or 22%, offset by increases in labor and contract services. Labor costs increased
as Production staff was allocated more time on membrane maintenance at District Plant 134, and contract
services increased due to a one-time charge for disposal of contaminated resins from a Uranium treatment
unit at the site of a well which is no longer in service.
Transmission and Distribution costs increased 13% to $2.3 million. This increase included labor co sts as two
additional staff were added to the pipeline repair staff to complete two full response crews, and an increase in
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2016
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contracted paving costs due to the number of leak responses. In 2015 -16 crews repaired 110 main leaks and 181
service line leaks, a 10% increase in responses over the previous fiscal year.
Wastewater Operations
Wastewater operating revenues consist of System Charges and Treatment Charges. System Charge rates are set by
administrative and general expenses.
Treatment Charge rates are established by the City of San Bernardino Water Department, which treats the wastewater
generated the District currently has no wastewater treatment facilities. All wastewater
treatment revenues collected by the District are directly offset by remittance payments to the City of San Bernardino
Water Department, therefore, wastewater
During the 2015-16 fiscal year wastewater operating revenues increased 0.6% to $11.6 million as a direct result of
wastewater treatment rate increases collected on behalf of, and remitted to, the City of San Bernardino as discussed
below. Collections system fees assessed by the District for maintenance of wastew ater collection mains decreased
by 5% as a result of lower water usage by commercial customers. Commercial customers, which include multi-family
residential complexes larger than 4 units, are billed for wastewater charges based on water consumption. Therefore,
the 13.9% decrease in water consumption discussed above, had a related impact on wastewater revenue. A complete
list of wastewater rates in effect for the last 10 years is included in the statistical section at the end of this document.
Wastewater collection line maintenance costs decreased by 7% compared to the prior year as the District had to
make fewer spot repairs to collections mains. The need for spot repairs is identified while District staff is video logging,
and making conditional assessments of, the Districts mains. When a breach in the integrity of a main is identified, a
pre-qualified contractor is dispatched to make a repair in order to mitigate the risk of wastewater system backup and
overflows. The District has had no reportable wast ewater overflows since beginning the video inspection program in
2006.
Wastewater treatment costs rose 6% to $7.3 million as a result of rate increases implemented by the City of San
Bernardino. The City currently treats all wastewater flows generated by District customers, therefore the District is
subject to rates adopted by the City. City treatment rates were increased in 3 phases, the first becoming effective
during the 2015-16 fiscal year.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2016
20
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2015
2016
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Wastewater Department Operating
Revenue versus Expenses
Revenue
Expenses
Costs related to Customer Accounts (Water & Wastewater Operations) decreased 3% to $1.8 million, primarily for
contract services and postage related to the collection of delinquest utility accounts. The District has implemented an
automated outbound phone notification program which advises customers that their account is deli nquent and
additional fees can be avoided by making a payment. The number of final notices generated have decreased by 12%
since implementation of the automated outbound calling system.
Administrative and general costs for the District increased by 22.7% to $9.7 million. The primary reason for this
increase was the implementation of a very aggressive conservation rebate program devised to help the District meet
state mandated reductions in water usage due to emergency drought conditions.in California. The rebate programs
were highly successful as $1.65 million in direct rebates were paid to customers who installed water efficient fixtures
and irrigation systems, and who removed turf. Other significant changes in general and administrative costs included:
1) Salaries and Benefits increased 10.8% to $5.2 million two new full time, and three part time positions were
added to the Public Affairs and Conservation departments to promote, administer , and enforce water
conservation and drought restrictions.
2) Contractual services decreased by $375 thousand as full-time employees increasingly performed work
previously tasked to consultants.
3) Professional development costs increased by 24.2% due to an increased emphasis on certifications,
education, and training amongst staff.
9 million to $5.7 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 remained constant at $0.8 million.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2016
21
Non-Operating Activities
-operating revenue of $993 thousand includes investment earnings of $147 thousand, discussed
below, and $830 thousand in other income. Other income includes quarterly remittances from energy purveyors, for
participation in demand response programs, whereby the District takes designated plants off-line when power grids
are approaching capacity.
Non-operating expenses includes $1.92 million in interest on District long-term obligations net of $82 thousand in
amortization of premiums and deferred amounts from the refunding of District debt in 2010.
East Valley Water District Changes in Net Position
(in millions)
2016 2015
Water Revenues 21.4$ 19.2$
Water Operating Expenses (20.8) (17.8)
Sewer Services 11.6 11.5
Sewer Operating Expenses (11.2) (11.3)
Non-Operating Revenues 1.0 0.9
Non-Operating Expenses (1.8) (2.0)
Income Before Contributions & Special Item 0.2 0.5
Developer Contributions 0.6 -
Grant Funds Contributed 0.1 0.6
Special Item - Change in Estimate (0.7) (2.4)
Change in Net Position 0.2 (1.3)
Beginning Net Position 112.8 122.1
Prior Period Adjustment - (8.0)
Ending Net Position 113.0$ 112.8$
Investment earnings increased . The increase was
related to the apportionment rate paid by the California Local Agency Investment Fund , which rose 27 basis points to
.55% during fiscal year 2016.
Capital Contributions and Special Item
Contributions received during 2015-16 included $637 thousand in developer capacity fees, and $76 thousand in
reimbursements for a grant funded project. The District has also reported a Change in Estimate related to accumulated
depreciation for $653 thousand; this item is explained further in Note 14 to the financial statements.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2016
22
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, 2016 is $103.2 million, an increase of $5.1 million compared to June 30, 2015.
The increase resulted from the acquisition or construction of capital assets for $2.7 million, and decreases in
outstanding debt of $1.7 million, offset by a decrease in unspent bond proceeds of $3.2 million, and an incr ease in
accumulated depreciation of $4.9 million.
Restricted
Restricted Net Position decreased by $46 thousand during the year ended June 30, 2016. This decrease is a net of
$637 thousand in capacity fees collected from developers, and the budgeted use of $631 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 d ebt service
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 an d the recognition of a related
Capital Assets
The District spent approximately $11.3 million for expansion or replacement of property, plant, and equipment during
2015-2016. 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 2015-16 fiscal year, District staff, consultants, and contractors completed work on the following:
Installation of 10,000
in the District Intermediate zone, and completion a Booster station at Plant 40 to push water from the
Installation of 4.350 feet of parallel wastewater collection mains next to undersized existing mains in the
Installation of a virtual server and data storage appliance to alleviate computer network capacity constraints
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2016
23
Construction in Progress (CIP)
Construction in progress increased $1.7 million to $11.1 million (see note 4) between June 30, 2015 and June 30,
2016. With approximately 60 jobs in progress, additions to CIP totaled $10.4 million, while $8.7 million was capitalized
and transferred to utility plant in service.
Utility Plant in Service June 30th
(in millions)
Department 2016 2015
Water
Source of Supply 16.5$ 16.5$
Pumping 13.1 11.9
Transmission & Distribution 95.0 89.2
Treatment 25.0 25.0
Wastewater
Collection Lines 26.9 25.4
General
Buildings & Improvements 17.8 18.0
Equipment 8.1 7.1
Total 202.4$ 193.1$
Of the $11.1 million remaining in CIP at June 30, 2016, 85% is related to two projects, including:
1. Conceptual design, environmental, legal and financing package costs related to the Sterling Natural Resource
Center water recycling facility. The facility will capture, treat, and recycle all of the wastewater flows generated
by District customers. Recycled water produced by the plant would be used to recharge the Bunker Hill
Basin from which the District produces groundwater.
Preliminary concepts for the Sterling Natural Resource Center include a first phase with a capacity of 6 million
gallons per day (mgd), expandable to 10 mgd in a second phase giving the District the capability to provide
project will also include ancillary pipelines and lift stations to deliver wastewater to the pl ant, 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) on the
Project, 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 Sterling Natural Resource Center, while East Valley Water District will retain ownership of the p roject
and the recycled water produced, and will finance the full cost of the project. A financing application package
has been submitted to the State of California Department of Water Resources in order to utilize grants and/or
low interest loans to fund this regionally significant water recycling project.
2. A collaborative effort with the San Bernardino Valley Municipal Water District (Muni) on the construction of a
new state water project turnout The turnout will
allow the District to take delivery of more wholesale water from Muni at their Tier 1 water rate, currently $125
per acre foot. The project also includes hydro-electic generation facilities which will generate power for the
operation of the treatment plant.
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2016
24
Future Capital Improvements - Water
in conducting District business are the driving forces by which District management develops long term capital plans.
Accordingly, the District is participating in a regional effort for the design and installation of a conjunctive use well
field in the lower end of the Bunker Hill basin, designed to control regional groundwater levels. The District would
have access to water produced by two of the wells at a reduced cost if groundwater levels necessitate pumping from
the wells.
Future Capital Improvements - Wastewater
wastewater pipelines were susceptible to surcharging during heavy rains and therefore could not accept additional
flows from new development. As described above, the District has completed one wastewater main to help alleviate
this problem, and has one additional new wastewater main in
development and enhance system redundancy in the event of emergency.
Long Term Debt / Credit
-term debt consists of Revenue Bonds issued through the East Valley Water District Financing
Authority (Authority), a blended component unit, design and construction loans from the California De partment of
Water Resources (DWR), and a capital lease purchase with US Bank for construction or installation of energy
conservation measures (ECM). Outstanding balances as of June 30, 2016 were as follows:
2010 Refunding Revenue Bonds 27,530,000$
2013 Revenue Bonds 12,085,000
DWR Loan - Arroyo Verde 98,050
DWR Loan - Eastwood Farms 351,434
DWR Loan - Plant 134 6,768,565
DWR Loan - Plant 150 Design 50,000
US Bank Lease Purchase - ECMs 3,299,108
Total 50,182,157$
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 wastewater
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 these water companies that were previously
- annual loan payments are paid from assessments
on property within the assessment districts.
Other DWR loans include $6,535,168, payable over 28
and $50,000, payable over the next 3 years at 0%, used to help pay for the design of a new treatment plant in the
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2016
25
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 2015-16 were paid timely.
-
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
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 b
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.
The new rate structure includes scheduled rate ad justments 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 wastewater treatment, to be implemented in three
phases in 2015, 2016, and 2017. As the District currently re lies on the City to treat wastewater generated by District
has implemented the first two phases of the
EAST VALLEY WATER DISTRICT
Management’s Discussion and Analysis
Year Ended June 30, 2016
26
new wastewater 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. The final phase occurring in 2017will be considered for adoption at a
public hearing conducted under the provisions established by California Proposition 218.
Addit
at www.eastvalley.org.
This financial report is designed to give our customers / ratepayers, creditors, and investors a general overview of
facilities it maintains.
If you have questions abo
31111 Greenspot Road, Highland, California 92346, or call (909) 381 -6463.
27
EAST VALLEY WATER DISTRICT
Statement of Net Position
Year Ended June 30, 2016
28
For Comparative
Purposes Only
2016 2015
ASSETS
Current Assets:
Cash and Cash Equivalents 7,844,650$ 10,081,755$
Investments 4,970,168 5,185,067
Accounts Receivable, Net 3,565,745 3,323,976
Interest Receivable 27,341 9,273
Other Receivables 589,619 140,787
Due from Other Governments 16,145 1,771,368
Inventory 252,962 297,803
Prepaid Expenses 291,514 84,737
Total Current Assets 17,558,144 20,894,766
Non-Current Assets:
Restricted Cash and Cash Equivalents 5,900,620 7,567,927
Assessments Receivable 413,633 434,355
Capital Assets not being Depreciated 24,276,764 22,561,578
Capital Assets, Net (Note 4)131,257,709 128,787,082
Total Non-Current Assets 161,848,726 159,350,942
Total Assets 179,406,870 180,245,708
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding 156,417 174,353
Deferred Outflows - Pensions 1,249,997 757,176
Total Deferred Outflows Of Resources 1,406,414 931,529
Total Assets and Deferred Outflows
of Resources 180,813,284$ 181,177,237$
(Continued)
The accompany notes are an integral part of this statement.
EAST VALLEY WATER DISTRICT
Statement of Net Position - Continued
Year Ended June 30, 2016
29
For Comparative
Purposes Only
2016 2015
LIABILITIES
Current Liabilities:
Accounts Payable and Accrued Expenses 2,920,380$ 1,961,253$
Accrued Payroll and Benefits 606,197 422,698
Customer Service Deposits 1,630,380 1,727,286
Construction Advances and Retentions 109,500 219,311
Accrued Interest Payable 485,974 505,012
Current Portion of Compensated Absences 352,282 308,252
Current Portion of Long-Term Debt 2,141,422 2,060,605
Total Current Liabilities 8,246,135 7,204,417
Non-Current Liabilities:
Compensated Absences, Less Current Portion 417,682 456,412
Net Pension Liability 7,928,173 6,615,935
Long-Term Debt, Less Current Portion 50,327,296 52,468,718
Total Non-Current Liabilities 58,673,151 59,541,065
Total Liabilities 66,919,286 66,745,482
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Pensions 844,078 1,616,878
Total Liabilities and Deferred
Inflows Of Resources 67,763,364 68,362,360
NET POSITION
Net Investment in Capital Assets 103,222,160 98,091,685
Restricted for:
Future Capital Expansion Projects 2,276,695 2,322,238
Unrestricted 7,551,065 12,400,954
Total Net Position 113,049,920$ 112,814,877$
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, 2016
30
For Comparative
Purposes Only
2016 2015
OPERATING REVENUES
Water Sales 11,927,523$ 13,505,159$
Sewer Treatment Charges 7,165,655 6,907,828
System Charges 12,349,671 9,405,936
Other Charges 1,581,233 924,522
Total Operating Revenues 33,024,082 30,743,445
OPERATING EXPENSES
Water Department:
Source of Supply 2,442,061 2,988,115
Pumping 696,432 606,791
Treatment 799,947 722,211
Transmission and Distribution 2,327,185 2,049,667
Customer Accounts 1,400,208 982,919
Total Water Department 7,665,833 7,349,703
Wastewater Department:
WastewaterTreatment 7,302,389 6,907,828
Wastewater Collection 407,913 440,151
Customer Accounts 446,249 925,762
Total Wastewater Department 8,156,551 8,273,741
Administrative and General 9,689,279 7,898,997
Operating Expenses Before Depreciation 25,511,663 23,522,441
Depreciation 6,491,059 5,623,898
Total Operating Expenses 32,002,722 29,146,339
Operating Income (Loss)1,021,360$ 1,597,106$
(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, 2016
31
For Comparative
Purposes Only
2016 2015
NON-OPERATING REVENUES (EXPENSES)
Investment Income 146,874$ 100,830$
Other Income (Loss)830,806 800,278
Interest Expense (1,843,440) (1,980,062)
Total Non-Operating Revenues (Expenses)(865,760) (1,078,954)
Income Before Contributions and
Special Item 155,600 518,152
CONTRIBUTIONS
Capacity Charges 636,717 11,339
Contributed Plant 19,525 -
Capital Grants 76,400 585,601
Total Contributions 732,642 596,940
SPECIAL ITEM
Change in Accounting Estimate (653,199)
Abandoned Project - (2,413,478)
CHANGE IN NET POSITION 235,043 (1,298,386)
TOTAL NET POSITION, BEGINNING 112,814,877 122,069,494
PRIOR PERIOD ADJUSTMENT - (7,956,231)
TOTAL NET POSITION, ENDING 113,049,920$ 112,814,877$
The accompany notes are an integral part of this statement.
EAST VALLEY WATER DISTRICT
Statement of Cashflows
Year Ended June 30, 2016
32
For Comparative
Purposes Only
2016 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 32,575,596$ 30,247,717$
Cash Payments for Employees Services (8,571,419) (8,089,209)
Cash Payments to Suppliers (15,907,637) (16,940,840)
Cash from Other Sources 381,974 708,386
Net Cash Provided (Used) by
Operating Activities 8,478,514 5,926,054
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Grant Funds Received 1,831,623 3,975,118
Contributed Capital 636,717 11,339
Principal Paid on Capital Debt (1,960,917) (1,633,871)
Interest Paid on Capital Debt (1,944,230) (2,043,098)
Acquisition of Capital Assets (11,310,545) (5,878,522)
Net Cash Used for Capital and
Related Financing Activites (12,747,352) (5,569,034)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received from Investments 127,336 78,274
Acquisition of Investments (5,058,088) (3,241,537)
Proceeds from Sale of Investments 5,274,457 2,804,251
Loan Collections 20,721 44,775
Net Cash Provided (Used) by
Investing Activities 364,426 (314,237)
Net (Decrease) Increase in Cash
and Cash Equivalents (3,904,412) 42,783
Cash and Equivalents, Beginning of Year 17,649,682 17,606,899
Cash and Equivalents, End of Year 13,745,270$ 17,649,682$
RECONCILIATION TO STATEMENT OF NET POSITION
Cash and Cash Equivalents (3,904,412)$ 10,081,755$
Restricted Cash and Cash Equivalents 17,649,682 7,567,927
Total Cash and Cash Equivalents 13,745,270$ 17,649,682$
(Continued)
The accompany notes are an integral part of this statement.
EAST VALLEY WATER DISTRICT
Statements of Cash Flows - Continued
Year Ended June 30, 2016
33
For Comparative
Purposes Only
2016 2015
Reconciliation of Operating Income to Net
Cash Provided by Operating Activities
Operating Income (Loss)1,021,359$ 1,597,106$
Adjustments to Reconcile Operating
Income to Net Cash Provided by
Operating Activities:
Depreciation 6,491,059 5,623,898
Miscellaneous Income 830,806 800,278
Change in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable (241,769) 711,177
(Increase) Decrease in Other Receivables (448,832) (91,892)
(Increase) Decrease in Inventory 44,841 (40,937)
(Increase) Decrease in Prepaids (206,776) (3,189)
Decrease in Deferred Outflows of Resrcs (492,821) 64,856
Increase (Decrease) in Accounts Payable 959,127 (1,236,922)
Increase (Decrease) in Accrued Salaries
and Benefits 183,498 160,475
Increase in Compensated Absences 5,300 93,559
Decrease in Net Pension Liability 1,312,238 (2,162,327)
Increase in Deferred Inflows of Resources (772,799) 1,616,877
Decrease in Customer Deposits (96,906) (121,135)
Decrease in Developer Deposits (109,811) (1,085,770)
Total Cash Provided (Used)
by Operating Activities 8,478,514$ 5,926,054$
NON-CASH INVESTING, CAPITAL, AND NONCAPITAL
FINANCING ACTIVITIES:
Contributed Plant (16,599) -
Fair Value Adjustments to Investments 19,210 -
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, 2016
34
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, 2016, the District owned 5,904.49 of 7,156 outstanding Company shares.
Due to the number of
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
at 31111 Greenspot Road, Highland, California 92346.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2016
35
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 17,542,188$ 15,956$ 462,959$ (462,959)$ 17,558,144$
Capital Assets 154,017,458 3,002,897 - (1,485,882) 155,534,473
Other Assets 6,087,441 226,812 39,615,000 (39,615,000) 6,314,253
Deferred Outflows 1,406,414 - - - 1,406,414
Total Assets & Deferred Outflows 179,053,501 3,245,665 40,077,959 (41,563,841) 180,813,284
Current Liabilities 8,229,564 16,571 462,959 (462,959) 8,246,135
Long-Term Liabilities 58,673,151 - 39,615,000 (39,615,000) 58,673,151
Deferred Inflows 844,078 - - - 844,078
Total Liabilities & Deferred Inflows 67,746,793 16,571 40,077,959 (40,077,959) 67,763,364
Net Investment in Capital Assets 101,599,749 3,108,293 - (1,485,882) 103,222,160
Restricted Net Position 2,155,894 120,801 - - 2,276,695
Unrestricted Net Position 7,551,065 - - - 7,551,065
Total Net Position 111,306,708$ 3,229,094$ -$ (1,485,882)$ 113,049,920$
Statement of Changes in Net Position
Sales and Services 31,442,849 - - - 31,442,849
Other Operating Revenue 1,581,233 - - - 1,581,233
Operating Expenses (25,347,960) (163,703) - - (25,511,663)
Depreciation (6,436,216) (54,843) - - (6,491,059)
Operating Income 1,239,906 (218,546) - - 1,021,360
Net Non-Operating Revenue
(Expenses)(1,094,752) 228,992 - - (865,760)
Capital Contributions 732,642 - - - 732,642
Special Items (653,199) - - - (653,199)
Change in Net Position 224,597 10,446 - - 235,043
Beginning Net Position 112,814,877 - - - 112,814,877
Prior Period Adjustment - - - - -
Ending Net Position 113,039,474$ 10,446$ -$ -$ 113,049,920$
Statement of Cash Flows
Net Cash from Operating Activities 8,466,570 11,944 - - 8,478,514
Net Cash from Capital and Related
Financing Activities (12,736,789) (10,563) 3,173,813 (3,173,813) (12,747,352)
Net Cash from Investing Activities 361,087 3,339 (3,173,813) 3,173,813 364,426
Beginning Cash and Equivalents 17,429,384 220,298 - - 17,649,682
Ending Cash & Equivalents 13,520,252$ 225,018$ -$ -$ 13,745,270$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2016
36
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 wastewater lines are depreciated over 25 to 50 years; office equipment and vehicles
are depreciated over 5 years.
Water stock and rights contributed to the District are recorded at the same value the District is currently paying
for the purchase of similar stock.
F) 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, 2016
37
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, 2016
38
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
tem (CalPERS) plans (Plans) ar
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, 2016
39
1) REPORTING ENTITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
P) Future Accounting Pronouncements
The applicable GASB Statement listed below will be implemented in future financial statements:
Table 1-2
GASB Statement Description Effective Date
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. 77 Tax Abatement Disclosures The provisions in Statement 77 are effective
for reporting periods beginning after
December 15, 2015. Earlier application is
encouraged.
Statement No. 78 Pensions Provided through Certain
Multiple-Employer Defined Benefit
Pension Plans
The provisions in Statement 78 are effective
for reporting periods beginning after
December 15, 2015. Earlier application is
encouraged.
Statement No. 79 Certain External Investment Pools
and Pool Participants
The provisions in Statement 79 are effective
for reporting periods beginning after June 15,
2015, except for the provisions in paragraphs
reporting periods beginning after December
15, 2015
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2016
40
2) CASH AND INVESTMENTS
Cash and Investments as of June 30, 2016 are classified in the accompanying financial statements as follows:
Table 2-1
Cash and Cash Equivalents 7,844,650$
Restricted Cash and Cash Equivalents 5,900,620
Investments 4,970,168
Total 18,715,438$
Cash and investments as of June 30, 2016 consist of the following:
Table 2-2
Cash on Hand 10,750$
Deposits with Financial Institutions 1,455,702
Money Market Accounts with Financial Institutions 584,420
Investments with Local Agency Investment Fund 11,694,398
Investment in Debt Securities 4,970,168
Total 18,715,438$
Investments Authorized by the California Government Code
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, 2016, 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, 2016
41
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, 2016, the District had the following investments and maturities:
Table 2-4
Investment Type Fair Value
Average
Maturity
Fannie Mae 955,734$ 2.10 years
Freddie Mac 1,902,605 1.32 years
Federal Home Loan Bank 327,320 2.96 years
Federal Farm Credit Bank 200,348 2.15 years
US Treasury 1,306,520 2.74 years
Tenn Valley Authority 277,641 1.21 years
LAIF 11,639,816 N/A
Money Market Mutual Funds 584,406 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
Table 2-5
Investment Type Fair Value
Minimum
Legal
Rating
Exempt
From
Disclosure
Rating at
Year End
AAA Not Rated
Fannie Mae 955,734$ N/A -$ 955,734$ -$
Freddie Mac 1,902,605 N/A - 1,902,605$ -
Federal Home Loan Bank 327,320 N/A - 327,320$ -
Federal Farm Credit Bank 200,348 N/A - 200,348$ -
US Treasury 1,306,520 N/A 1,306,520 - -
Tenn Valley Authority 277,641 N/A - 277,641 -
LAIF 11,639,816 N/A - - 11,639,816
Money Market Mutual Funds 584,406 N/A - 584,406 -
17,194,390$ 1,306,520$ 4,248,054$ 11,639,816$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2016
42
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, 2016, 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, 2016, the District had $1,737,833 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, 2016, the carrying amount (at amortized cost) of
the pool was $78,368,904,612 and the estimated fair value of the pool was $75,442,588,513. The District's
proportionate share of the fair value (as determined by LAIF) as of June 30, 2016, was $11,639,816. Included
in LAIF's investment portfolio are collateralized mortgage obligations, mortgage-backed securities, other asset-
backed securities, loans to certain State funds, and floating rate securities issued by federal agencies,
government-sponsored enterprises, and corporations.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2016
43
3) RESTRICTED CASH AND CASH EQUIVALENTS
Restricted cash and cash equivalents at June 30, 2016 are restricted as follows:
Table 3-1
Held for Debt Service 1,779,813$
Construction Project Financing Proceeds 15
Capacity Fees from Developers 2,155,894
Customer Deposits 1,630,380
Construction Advances 109,500
North Fork Water Company 225,018
Total 5,900,620$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2016
44
4) CAPITAL ASSETS
A summary of changes in capital assets for the year ended June 30, 2016 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 738,835 - - 738,835
Construction in Progress 7,950,421 3,787,194 (7,129,015) 4,608,600
Total Non-Depreciable Assets 17,252,400 3,787,194 (7,129,015) 13,910,579
Depreciable Assets
Source of Supply 16,490,894 18,587 (21,583) 16,487,898
Pumping Plant 11,954,934 1,276,161 (125,068) 13,106,027
Treatment Plant 24,982,019 24,246 - 25,006,265
Transmission and Distribution Plant 89,235,332 5,804,952 (57,844) 94,982,440
General Plant 15,891,434 904,232 (193,827) 16,601,839
Total Depreciable Assets 158,554,613 8,028,178 (398,322) 166,184,469
Accumulated Depreciation
Source of Supply (4,662,153) (739,017) 21,583 (5,379,587)
Pumping Plant (4,345,960) (886,300) 125,068 (5,107,192)
Treatment Plant (6,222,982) (1,220,448) - (7,443,430)
Transmission and Distribution Plant (30,684,335) (2,824,788) 57,844 (33,451,279)
General Plant (3,201,041) (676,140) 193,827 (3,683,354)
Total Accumulated Depreciation (49,116,471) (6,346,693) 398,322 (55,064,842)
Water Fund Capital Assets, Net 126,690,542 5,468,679 (7,129,015) 125,030,206
Wastewater Fund
Non-Depreciable Assets
Land and Easements 3,921,962 - - 3,921,962
Construction in Progress 1,387,217 6,626,867 (1,569,861) 6,444,223
Total Non-Depreciable Assets 5,309,179 6,626,867 (1,569,861) 10,366,185
Depreciable Assets
Wastewater Collection Plant 25,373,510 1,550,268 - 26,923,778
General Plant 9,388,088 36,441 (100,521) 9,324,008
Total Depreciable Assets 34,761,598 1,586,709 (100,521) 36,247,786
Accumulated Depreciation
Wastewater Collection Plant (12,863,207) (448,515) - (13,311,722)
General Plant (2,549,452) (349,051) 100,521 (2,797,982)
Total Accumulated Depreciation (15,412,659) (797,566) 100,521 (16,109,704)
Wastewater Fund Capital Assets, Net 24,658,118 7,416,010 (1,569,861) 30,504,267
Total Capital Assets, Net 151,348,660$ 12,884,689$ (8,698,876)$ 155,534,473$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2016
45
5) LONG-TERM DEBT
The schedule below summarizes changes in long-term debt during the year ended June 30, 2016:
Table 5-1
Beginning
Balance
Additions
Retirements/
Payments
Ending
Balance
Current
Portion
Long-Term
Portion
2010 Refunding Bonds 28,845,000$ -$ (1,315,000)$ 27,530,000$ 1,380,000$ 26,150,000$
Unamortized Premium 1,829,544 - (80,741) 1,748,803 80,741 1,668,062
2013 Refunding Bonds 12,085,000 - - 12,085,000 - 12,085,000
Unamortized Premium 594,544 - (20,299) 574,245 20,300 553,945
Unamortized Discount (37,840) - 1,353 (36,487) (1,353) (35,134)
U.S. Bank Lease Purchase 3,671,849 - (372,741) 3,299,108 388,557 2,910,551
Dept Water Resources Contracts
AVAD Construction 104,812 - (6,762) 98,050 6,762 91,288
Plant 134 Construction 7,001,964 - (233,399) 6,768,565 233,399 6,535,166
Plant 150 Design 70,000 - (20,000) 50,000 20,000 30,000
EFAD Construction 364,450 - (13,016) 351,434 13,016 338,418
Total 54,529,323$ -$ (2,060,605)$ 52,468,718$ 2,141,422$ 50,327,296$
2010 Refunding Revenue Bonds
On October 29, 2010, the District issued $33,545,000 of East V alley 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 carryi ng 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, 2016
46
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 2.3 8%. 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 in terest 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, 2016
47
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 $6,508 are
due for 30 years through January 2043. Repayment of the loan is secured by annual assessments to property
owners within the Eastwood Farms Assessment District. The aggregate debt service requirements to maturity
for long-term debt as of June 30, 2016 are as follows:
Table 5-2
Year Ending
June 30,Principal Interest Total
2017 2,041,733$ 1,874,947$ 3,916,680$
2018 2,096,420 1,802,170 3,898,590
2019 2,160,267 1,719,456 3,879,723
2020 2,239,311 1,632,905 3,872,216
2021 2,318,556 1,550,637 3,869,193
2022-2026 8,324,588 6,838,283 15,162,871
2027-2031 6,527,505 5,641,635 12,169,140
2032-2036 7,731,075 4,401,588 12,132,663
2037-2041 9,498,075 2,638,559 12,136,634
2042-2045 7,244,627 493,375 7,738,002
Total 50,182,157$ 28,593,555$ 78,775,712$
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 241% of the annual water debt service and net
sewer revenues represented 517% of the annual sewer debt
service.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2016
48
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 372,179$ 22,394$ (126,831)$ 267,742$ 158,288$ 109,454$
Accrued Sick Leave 392,485 197,116 (87,379) 502,222 193,994 308,228
Total 764,664$ 219,510$ (214,210)$ 769,964$ 352,282$ 417,682$
7) NET INVESTMENT IN CAPITAL ASSETS
Net Investment in capital assets at June 30, 2016 consisted of the following:
Table 7-1
Non-Depreciable Capital Assets 24,276,760$
Depreciable Capital Assets 202,432,255
Accumulated Depreciation (71,174,554)
Loans Payable (10,567,157)
Bonds Payable (41,901,561)
Deferred Amount on Refunding 156,417
Total 103,222,160$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2016
49
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 Miscellaneous
Employee Pension Plans, cost-sharing multiple employer defined benefit pension plans administered by the
California Public Employees
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
efits in effect at June 30, 2016, 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 20.095%6.460%
Miscellaneous
Contributions
rates for all public employers be determined on an annual basis by the actuary and shall be effective on the
July 1 following notice of a change in the rate. Funding contributions for both Plans are determined annually
on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount
necessary to finance the costs of benefits earned by employees during the year, w ith an additional amount
to finance any unfunded accrued liability. The District is required to contribute the difference between the
actuarially determined rate and the contribution rate of employees.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2016
50
8) DEFINED BENEFIT PENSION PLAN (PERS) - Continued
For the year ended June 30, 2016, the contributions recognized as part of pension expense for each Plan
were as follows:
Table 8-2
Miscellaneous
Contributions - Employer $ 742,546
B) Pension Liabilities, Pension Expenses, and Deferred Outflows/Inflows of Resources Related to
Pensions
As of June 30, 2016, 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 $ 7,928,173
Total Net Pension Liability 7,928,173
The District 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, 2014 rolled forward to June 30, 2015 using standard update procedures. The
proportion of the net pension liability was based on a projection of the long-term share of
contributions to the pension plans relative to the projected contributions of all participating employers,
actuarially determined. The proportionate share of the net pension liability for each Plan as of
June 30, 2014 and 2015 was as follows:
Table 8-4
Prior to On or after
January 1, 2013 January 1, 2013
Proportion - June 30, 2014 0.267690%0.000025%
Proportion - June 30, 2015 0.288984%0.000025%
Change - Increase (Decrease)0.021294%0.000000%
Miscellaneous
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2016
51
8) DEFINED BENEFIT PENSION PLAN (PERS) Continued
For the year ended June 30, 2016, the District recognized pension expense of $542,946. At June 30, 2016, the
District reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
Table 8-5
Deferred Outflows
of Resources
Deferred Inflows
of Resources
Difference between expected and actual
experience $ 47,621 -$
Changes in Assumptions - 450,540
Net differences between projected and actual
earnings on plan investments - 225,861
Change in employer's proportion 306,554 -
Difference between the employer's
contributions and the employer's proportionate
share of contributions - 167,677
Pension contributions subsequent to
measurement date 895,822
Total $ 1,249,997 $ 844,078
$895,822 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
2017 (264,092)
2018 (265,061)
2019 (249,453)
2020 288,705
2021 -
Thereafter -
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2016
52
8) DEFINED BENEFIT PENSION PLAN (PERS) Continued
Actuarial Assumptions
The total pension liabilities in the June 30, 2014 actuarial valuations were determined using the following
actuarial assumptions:
Table 8-7
Miscellaneous
Valuation Date June 30, 2014
Measurement Date June 30, 2015
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:
Discount Rate 7.65%
Inflation 2.75%
Payroll Growth 3.00%
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, 2014 valuation
were based on the results of a January 2014 actuarial experience study for the period 1997 to 2007. 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 changed from 7.50% to 7.65% to correct an
adjustment to exclude administrative expense 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 7.65 % discount rate is adequate and
the use of the municipal bond rate calculation is not necessary. The long term expected discount rate of 7.65%
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.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2016
53
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
ated 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, 2016
54
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 proportionate share of the net pension liability for each
Plan, calculated using the discount rate for each Plan, as well as what the 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 6.65%
Net Pension Liability $ 12,827,267
Current Discount Rate 7.65%
Net Pension Liability $ 7,928,173
1% Increase 8.65%
Net Pension Liability $ 3,883,402
D) Pension Plan Fiduciary Net Position
CalPERS financial reports.
E) Payable to the Pension Plan
At June 30, 2016, the District reported a payble of $0 for the outstanding amount of contributions to the
pension plan required for the year ended June 30, 2016.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2016
55
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, 2016
56
10) RISK MANAGEMENT - Continued
At June 30, 2016, the District's participation in the self-insurance programs of the Authority was as follows:
Table 10-1
Description Deductible
Personal Injury and Property
Damage Liability Coverage -
General
10,000,000$ Per occurrence / aggregate
where applicable
$500 (property
damage only)
Personal Injury and Property
Damage Liability Coverage -
Auto
10,000,000$ Per accident None
Public Officials and Employees
Errors and Omissions Liability
10,000,000$ Per wrongful act / annual
member aggregate
None
Employment Practices Liability 10,000,000$ Per wrongful employment
practice / aggregate limits
per member included with
Public Officials and
Employee Errors and
Omissions Coverage
None up to $10,000,
50% co-insurance
from $10,000 to
$50,000, none for
amounts greater than
$50,000
Employee Benefits Liability 10,000,000$ Per wrongful act / annual
member aggregate
None
Employee Dishonesty Coverage 1,000,000$ Per loss None
Public Officials Personal
Liability
500,000$ Per occurrence / annual
aggregate per Board
Member
$ 500
Automobile Physical Damage ACV Limits Replacement cost (stated
value adjusted for
depreciation on selected
vehicles)
$250/$500 or
$500/$1,000
comprehensive /
collision (as elected
per vehicle)
Uninsured Motorist Bodily
Injury Coverage
750,000$ Per accident None
Property Coverage 1,000,000,000$ Replacement cost for
scheduled property if
replaced (if not replaced
within two years, actual cash
value basis)
$ 1,000
Boiler and Machinery 100,000,000$ Replacement cost $ 1,000
Limits
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2016
57
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
(CERBT), an agent multiple-
(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
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 $650 per month). The surviving spouse of an eligible retiree is eligible for the District's
contribution upon the death of the retiree through the spouse's attainment of Medicare eligibility age.
Directors who were first elected to office on or after July 1, 1994 shall be eligible to continue to receive health
benefits upon termination on a self-pay basis. There are two Directors (in office prior to July 1, 1994) who are eligible
for District-paid health care benefits and any covered spouse or dependents. The benefits are payable for the
lifetime and the lifetime of any covered surviving spouse.
Prior to June 7, 2011, the District contributed 100% of the cost of current year premiums for eligible retired plan
members and their dependents. The District, as part of the CERBT, is required to contribute the annual required
contribution of the employer (ARC), an amount actuarially determined in accordance with the parameters of GASB
Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover
normal cost each year and amortize any unfunded actuarial liabilities (or funding excess) over a closed 27 year
period. The current ARC rate is 2.1% of the annual covered payroll.
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2016
58
11) POSTEMPLOYMENT BENEFITS OTHER THAN PENSIONS - Continued
Annual OPEB Cost
The District's annual OPEB cost for the current year and the related information for the plan are as follows:
Table 11-1
Annual Required Contribution 141,212$
Interest on Net OPEB Obligation (2,588)
Adjustments to Annual Required Contribution 3,333
Annual OPEB Expense 141,957
Contributions Made (155,381)
Increase (Decrease) in Net OPEB Obligation (13,424)
Net OPEB Obligation - Beginning of Year (38,457)
Net OPEB Obligation / (Asset) - End of Year (51,881)$
For 2015, 2014, and 2013 $82,700, $76,355, and $94,490,
respectively. The District's annual OPEB cost has been recognized as a part of the administrative and general
expenses in the accompanying Statement of Revenue, Expenses and Changes in Net Position.
annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for
the 2015 and the two preceding years were as follows:
Table 11-2
Percentage Net OPEB
Fiscal Annual Actual of OPEB Obligation
Year Ended OPEB Cost Contribution Contributed (Asset)
6/30/16 141,957$ 155,381$ 109%(51,881)$
6/30/15 82,700$ 102,991$ 125%(38,457)$
6/30/14 76,355$ 102,991$ 135%(18,166)$
EAST VALLEY WATER DISTRICT
Notes to the Basic Financial Statements
Year Ended June 30, 2016
59
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 relativ e
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 sho rt-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, 2016
60
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 Wastewater Fund in the approximate amount of $7 million. Pursuant to
Resolution 2016.04 adopted by the Board of Directors on February 24, 2016, the Water Fund repaid the Wastewater
Fund the outstanding balance of $6,400,000 with interest of $2,279.
13) CONSTRUCTION AND OTHER SIGNIFICANT COMMITMENTS
The District has active construction projects and large capital purchases as of June 30, 2016. The projects and
purchases include the following: emergency generators, replacement of 2,000 linear feet of 8-inch steel water main,
and the installation of approximately 7,500 meters using Advanced Metering Infrastructure.
Table 13-1
Contractual Commitments Spent to Date
Remaining
Commitment
2 Emergency Generators - 333,333
Pumelo St. Water Main Replacement - 616,641
Advanced Metering Infrastructure - 2,011,465
14) SPECIAL ITEM CHANGE IN ACCOUNTING ESTIMATE
In 2016, the District evaluated the useful life assigned to several capital asset classifications and identified specific
assets in each classification that require a change in estimate in the amount of $653,199 due to the nature of the
assets and past experience.
61
East Valley Water District
Schedule of Proportionate Share of Net Pension Liability
Year Ended June 30, 2016
Last Ten Years*
62
2016 2015
Proportion of the Net Pension Liability 26.74400%0.26769%
Proportionate Share of the Net Pension Liability $ 7,928,173 $ 6,615,935
Covered - Employee Payroll $ 5,097,156 $ 4,436,236
Proportionate Share of the Net Pension Liability
as Percentage of Covered-Employee Payroll 156%149.13%
Plan's Fiduciary Net Position $ 28,045,198 $ 29,336,566
Plan's Fiduciary Net Position as a Percentage of
the Total Pension Liability 78.01%81.60%
* - Fiscal year 2015 was the first year of implementation, therefore only two years are shown.
East Valley Water District
Schedule of Contributions
Year Ended June 30, 2016
Last Ten Years*
63
2016 2015
Contractually Required Contribution (actuarially determined)970,107$ 804,673$
Contributions in Relation to the Actuarially Deteremined Contributions 742,546$ 804,673$
Contribution Deficiency (excess)227,561$ -$
Covered-Employee Payroll $ 5,097,156 4,436,236$
Contributions as a Percentage of Covered-Employee Payroll 19.03%18.14%
* - Fiscal year 2015 was the first year of implementation, therefore only two years are shown.
East Valley Water District
Schedule of Fund ing Progress for Retirees Health Coverage
Year Ended June 30, 2016
64
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%
65
66
East Valley Water District
History and Organization
Year Ended June 30, 2016
67
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 East Valley Water District Financing Authority
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 wastewater transmission services to its customers
since inception.
Location
The District office is located at 31111 Greenspot Road, Highland, California. The office is situated within the District's
boundaries which encompass an area of approximately 27.7 square miles within the County of San Bernardino,
California.
Directors
Ronald Coats Chairman of the Board
Chris Carrillo Vice-Chairman of the Board
David Smith Governing Board Member
James Morales, Jr.Governing Board Member
Nanette Shelton Governing Board Member
East Valley Water District
Ronald Coats President
Chris Carrillo Vice President
John Mura Secretary/Executive Director
Brian W. Tompkins Director of Finance
East Valley Water District Financing Authority
Management
John Mura General Manager/CEO
Brian W. Tompkins Chief Financial Officer/Treasurer
East Valley Water District
Professional Consultants
The firms Brunick, McElhaney & Kennedy Professional Law Corporation and JC Law Firm 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, 2016
68
Water Wastewater Eliminations Total
ASSETS
Current Assets:
Cash & Cash Equivalents 6,591,690$ 1,252,960$ -$ 7,844,650$
Investments 2,763,103 2,207,065 - 4,970,168
Accounts Receivable, Net 3,318,929 246,816 - 3,565,745
Interest Receivable 21,262 6,079 - 27,341
Other Receivables 589,619 - - 589,619
Due from Other Governments 16,145 - - 16,145
Inventory 246,241 6,721 - 252,962
Prepaid Expenses 259,217 32,297 - 291,514
Total Current Assets 13,806,206 3,751,938 - 17,558,144
Non-Current Assets:
Restricted Cash & Cash Equivalents 5,368,521 532,099 - 5,900,620
Assessments Receivable 413,633 - - 413,633
Due from Other Fund - - - -
Capital Assets not being Depreciated 13,910,579 10,366,185 - 24,276,764
Capital Assets, Net (Note 4)111,119,627 20,138,082 - 131,257,709
Total Non-Current Assets 130,812,360 31,036,366 - 161,848,726
Total Assets 144,618,566 34,788,304 - 179,406,870
DEFERRED OUTFLOWS OF RESOURCES
Deferred Charge on Refunding 156,417 - - 156,417
Deferred Outflows - Pensions 974,997 275,000 - 1,249,997
Total Deferred Outflows 1,131,414 275,000 - 1,406,414
Total Assets and Deferred
Outflows of Resources 145,749,980 35,063,304 - 180,813,284
(Continued)
East Valley Water District
Combining Schedule of Net Position – Continued
Year Ended June 30, 2016
69
Water Wastewater Eliminations Total
LIABILITIES
Current Liabilities:
Accounts Payable & Accrued Expenses 2,890,211$ 30,169$ -$ 2,920,380$
Accrued Payroll & Benefits 520,362 85,835 - 606,197
Customer Service Deposits 1,630,380 - - 1,630,380
Construction Advances and Retentions 106,000 3,500 - 109,500
Accrued Interest Payable 430,093 55,881 - 485,974
Current Portion of Compensated
Absences 258,473 93,809 - 352,282
Current Portion of Long-Term Debt 2,028,464 112,958 - 2,141,422
Total Current Liabilities 7,863,983 382,152 - 8,246,135
Non-Current Liabilities:
Due to Other Fund - - - -
Compensated Absences,
Less Current Portion 347,654 70,028 - 417,682
Net Pension Liability 6,183,974 1,744,199 - 7,928,173
Long-Term Debt, Less Current Portion 45,478,640 4,848,656 - 50,327,296
Total Non-Current Liabilities 52,010,268 6,662,883 - 58,673,151
Total Liabilities 59,874,251 7,045,035 - 66,919,286
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows - Pensions 658,380 185,698 - 844,078
Total Liabilities and Deferred
Inflows of Resources 60,532,631 7,230,733 - 67,763,364
NET POSITION
Net Investment in Capital Assets 77,679,511 25,542,649 - 103,222,160
Restricted for:-
Future Capital Expansion Projects 1,748,096 528,599 - 2,276,695
Unrestricted 5,789,742 1,761,323 - 7,551,065
Total Net Position 85,217,349$ 27,832,571$ -$ 113,049,920$
East Valley Water District
Combining Schedule of Revenues, Expenses, and Changes in Net Position
Year Ended June 30, 2016
70
Water Wastewater Eliminations Total
OPERATING REVENUE
Water Sales 11,927,523$ -$ -$ 11,927,523$
Sewer Treatment Charges - 7,165,655 - 7,165,655
System Charges 8,063,077 4,286,594 - 12,349,671
Other Revenue 1,435,536 145,697 - 1,581,233
Total Operating Revenue 21,426,136 11,597,946 - 33,024,082
OPERATING EXPENSES
Source of Supply:
Salary & Benefits 502,623 - - 502,623
Contract Services 216,251 - - 216,251
Utilities 1,081,370 - - 1,081,370
Insurance 4,016 - - 4,016
Materials & Supplies 43,962 - - 43,962
Purchased Water 217,295 - - 217,295
Water Assessments 253,956 - - 253,956
Chemicals 93,213 - - 93,213
Taxes 29,375 - - 29,375
Total Source of Supply 2,442,061 - - 2,442,061
Pumping:
Salary & Benefits 114,105 - - 114,105
Contract Services 119,520 - - 119,520
Utilities 447,571 - - 447,571
Materials & Supplies 15,236 - - 15,236
Total Pumping 696,432 - - 696,432
Water Treatment:
Salary & Benefits 324,390 - - 324,390
Contract Services 196,472 - - 196,472
Utilities 120,024 - - 120,024
Materials & Supplies 18,658 - - 18,658
Chemicals 140,403 - - 140,403
Total Water Treatment 799,947 - - 799,947
Wastewater Treatment:
Treatment Services - 7,302,389 - 7,302,389
Transmission & Distribution:
Salary & Benefits 1,493,385 - - 1,493,385
Contract Services 511,512 - - 511,512
Utilities - - - -
Materials & Supplies 233,042 - - 233,042
Chemicals 41,937 - - 41,937
Permits 38,806 - - 38,806
Tools 8,503 - - 8,503
Total Transmission & Distribution 2,327,185$ -$ -$ 2,327,185$
(Continued)
East Valley Water District
Combining Schedule of Revenues, Expenses, and Changes in Net Position - Continued
Year Ended June 30, 2016
71
Water Wastewater Eliminations Total
OPERATING EXPENSES - Continued
Wastewater Collection:
Salary & Benefits -$ 223,208$ -$ 223,208$
Contract Services - 161,208 - 161,208
Materials & Supplies - 21,902 - 21,902
Tools - 1,595 - 1,595
Total Wastwater Collection - 407,913 - 407,913
Customer Accounts:
Salary & Benefits 713,307 231,712 - 945,019
Contract Services 589,414 155,171 - 744,585
Utilities 1,612 665 - 2,277
Materials & Supplies 7,348 1,613 - 8,961
General Office Supplies 1,689 2,672 - 4,361
Tools 773 - - 773
Postage 81,918 52,728 - 134,646
Professional Development 4,147 1,688 - 5,835
Total Customer Accounts 1,400,208 446,249 - 1,846,457
General & Administrative:
Salary & Benefits 3,731,525 1,472,580 - 5,204,105
Contract Services 867,017 416,726 - 1,283,743
Contract ServicesConservation Rebates 1,649,011 - - 1,649,011
Utilities 234,713 67,400 - 302,113
Insurance 133,288 57,067 - 190,355
Materials & Supplies 253,883 98,645 - 352,528
General Office Supplies 26,390 9,873 - 36,263
Legal Services 219,121 96,225 - 315,346
Permits 20,382 7,905 - 28,287
Memberships & Dues 32,634 13,067 - 45,701
Tools 5,591 2,461 - 8,052
Printing & Publishing 86,013 12,800 - 98,813
Professional Development 118,299 49,153 - 167,452
Rents & Leases 4,882 2,628 - 7,510
Total General & Administrative 7,382,749 2,306,530 - 9,689,279
OPERATING EXPENSES BEFORE
DEPRECIATION 15,048,582 10,463,081 - 25,511,663
Depreciation 5,710,092 780,967 - 6,491,059
Total Operating Expenses 20,758,674 11,244,048 - 32,002,722
OPERATING INCOME (LOSS)667,462$ 353,898$ -$ 1,021,360$
(Continued)
East Valley Water District
Combining Schedule of Revenues, Expenses, and Changes in Net Position - Continued
Year Ended June 30, 2016
72
Water Wastewater Eliminations Total
NON-OPERATING REVENUES
Investment Income 106,755$ 40,119$ -$ 146,874$
Other Income 825,829 4,977 - 830,806
Total Non-Operating Revenues 932,584 45,096 - 977,680
NON-OPERATING EXPENSES
Interest Expense 1,636,748 206,692 - 1,843,440
Total Non-Operating Expenses 1,636,748 206,692 - 1,843,440
INCOME BEFORE CONTRIBUTIONS AND
SPECIAL ITEMS (36,702) 192,302 - 155,600
CONTRIBUTIONS:
Capacity Charges 184,387 452,330 - 636,717
Capacity Capital 19,525 - - 19,525
Capital Grants 76,400 - - 76,400
Total Contributions 280,312 452,330 - 732,642
SPECIAL ITEM:
Change in Accounting Estimate (636,600) (16,599) - (653,199)
CHANGE IN NET POSITION (392,990) 628,033 - 235,043
TOTAL NET POSITION, BEGINNING 85,610,339 27,204,538 - 112,814,877
PRIOR PERIOD ADJUSTMENT - - -
TOTAL NET POSITION, ENDING 85,217,349$ 27,832,571$ -$ 113,049,920$
73
East Valley Water District
Combining Schedule of Cash Flows
Year Ended June 30, 2016
74
Water Wastewater Eliminations Total
CASH FLOWS FROM OPERATING ACTIVITIES
Cash Received from Customers 20,938,408$ 11,637,188$ -$ 32,575,596$
Cash Payments for Employees Services (6,582,762) (1,988,657) - (8,571,419)
Cash Payments to Suppliers (7,342,147) (8,565,490) - (15,907,637)
Cash from Other Sources 376,997 4,977 - 381,974
Net Cash Provided (Used) by
Operating Activities 7,390,496 1,088,018 - 8,478,514
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Grant Funds Received 1,831,623 - - 1,831,623
Contributed Capital 184,387 452,330 - 636,717
Principal Paid on Capital Debt (8,470,917) (90,000) 6,600,000 (1,960,917)
Interest Paid on Capital Debt (1,718,455) (225,775) - (1,944,230)
Acquisition of Capital Assets (4,666,829) (6,643,716) - (11,310,545)
Net Cash Used for Capital
and Related Financing Activities (12,840,191) (6,507,161) 6,600,000 (12,747,352)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest Received from Investments 90,660 36,676 - 127,336
Acquisition of Investment Securities (3,256,974) (1,801,114) - (5,058,088)
Proceeds from Sales of Investments 3,203,612 2,070,845 - 5,274,457
Loan Collections 20,721 6,600,000 (6,600,000) 20,721
Net Cash Provided by Investing Activities 58,019 6,906,407 (6,600,000) 364,426
Net (Decrease) Increase in Cash
and Cash Equivalents (5,391,676) 1,487,264 - (3,904,412)
Cash and Equivalents, Beginning of Year 17,351,887 297,795 - 17,649,682
Cash and Equivalents, End of Year 11,960,211$ 1,785,059$ -$ 13,745,270$
RECONCILIATION TO STATEMENT
OF NET POSITION
Cash and Cash Equivalents (5,391,676) 1,487,264 - (3,904,412)
Restricted Cash and Cash Equivalents 17,351,887 297,795 - 17,649,682
Total Cash and Cash Equivalents 11,960,211$ 1,785,059$ -$ 13,745,270$
(Continued)
East Valley Water District
Combining Schedule of Cash Flows - Continued
Year Ended June 30, 2016
75
Water Wastewater Eliminations Total
Reconciliation of Operating Income to Net
Cash Provided by Operating Activities
Operating Income (Loss)667,461$ 353,898$ -$ 1,021,359$
Adjustments to Reconcile Operating
Income (Loss) to Net Cash Provided by
Operating Activities:
Depreciation 5,710,092 780,967 - 6,491,059
Miscellaneous Income 825,829 4,977 - 830,806
Change in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable (382,011) 140,242 - (241,769)
(Increase) Decrease in Other Receivables (448,832) - - (448,832)
(Increase) Decrease in Inventory 44,841 - - 44,841
(Increase) Decrease in Prepaids (181,881) (24,895) - (206,776)
Decrease in Deferred Outflows of Resources (384,400) (108,421) - (492,821)
Increase (Decrease) in Accounts Payable 964,141 (5,014) - 959,127
Increase (Decrease) in Accrued Salaries
and Benefits 201,786 (18,288) - 183,498
Increase in Compensated Absences 58,426 (53,126) - 5,300
Decrease in Net Pension Liability 1,023,545 288,693 - 1,312,238
Increase in Deferred Inflows of Resources (602,784) (170,015) - (772,799)
Decrease in Customer Deposits (96,906) - - (96,906)
Decrease in Developer Deposits (8,811) (101,000) - (109,811)
Total Cash Provided (Used)
by Operating Activities 7,390,496$ 1,088,018$ -$ 8,478,514$
NON-CASH INVESTING, CAPITAL, AND
NON-CAPITAL FINANCING ACTIVITIES:
Contributed Plant -$ (16,599)$ -$ (16,599)$
Fair Value Adjustments to Investments 5,689$ 13,521$ -$ 19,210$
East Valley Water District
Principal and Interest Repayment Schedule
Refunding Revenue Bonds – Series 2010
Year Ended June 30, 2016
76
Total
Due Date Principal Interest Payments
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, 2016
77
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 27,530,000$ 15,873,164$ 43,403,164$
Interest
Rate %
East Valley Water District
Principal and Interest Repayment Schedule
Revenue Bonds – Series 2013
Year Ended June 30, 2016
78
Total
Due Date Principal Interest Payments
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, 2016
79
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$ 13,297,325$ 25,382,325$
Interest
Rate %
East Valley Water District
Principal and Interest Repayment Schedule
US Bancorp Installment Purchase Agreement
Year Ended June 30, 2016
80
Total
Due Date Principal Interest Payments
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 3,299,107$ 344,035$ 3,643,142$
Interest
Rate %
East Valley Water District
Principal and Interest Repayment Schedule
Department of Water Resources Construction Loan – Contract 00C412
Year Ended June 30, 2016
81
Total
Due Date Principal Interest Payments
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
Totals 98,049$ -$ 98,049$
Rate %
Interest
East Valley Water District
Principal and Interest Repayment Schedule
Department of Water Resources Construction Loan – Contract 10CX110
Year Ended June 30, 2016
82
Total
Due Date Principal Interest Payments
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, 2016
83
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 6,768,563$ -$ 6,768,563$
Rate %
Interest
84
East Valley Water District
Principal and Interest Repayment Schedule
Department of Water Resources Construction Loan - Contract 10PX102
Year Ended June 30, 2016
85
Total
Due Date Principal Interest Payments
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 50,000$ -$ 50,000$
Rate %
Interest
East Valley Water District
Principal and Interest Repayment Schedule
Department of Water Resources Construction Loan - Contract 11CX101
Year Ended June 30, 2016
86
Total
Due Date Principal Interest Payments
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, 2016
87
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 351,434$ -$ 351,434$
Rate %
Interest
88
89
EAST VALLEY WATER DISTRICT
Changes in Net Position by Component
Last Ten Fiscal Years
90
Year ended June 30,
2007 2008 2009 2010 2011
Change In Net Position
Operating Revenue 21,977,829$ 23,198,698$ 24,535,251$ 24,427,059$ 25,205,990$
Operating Expenses 19,748,804 20,665,623 22,867,601 24,015,104 24,368,478
Operating Income (Loss)2,229,025 2,533,075 1,667,650 411,955 837,512
Non Operating Revenue
(Expenses)
Investment Income 539,720 510,361 235,826 61,192 87,589
Other Income 140,474 64,043 138,173 178,515 195,070
Interest Expense (554,914) (776,466) (1,094,926) (989,019) (1,286,352)
Amortization (37,955) (37,956) (37,956) (36,061) (32,851)
Loss on Disposal of Assets 28,142 (36,983) (110,944) (133,412) (140,301)
115,467 (277,001) (869,827) (918,785) (1,176,845)
Special Item
Abandoned Projects - - - - -
Change in Acounting Estimate - - - - -
Capital Contributions 3,530,415 2,806,993 1,737,025 101,233 778,049
Change in Net Position 5,874,907 5,063,067 2,534,848 (405,597) 438,716
Prior Period Adjustment - - - - -
Net Position - Beginning 85,969,195 91,844,102 96,907,169 99,442,017 99,036,420
Net Position - Ending 91,844,102$ 96,907,169$ 99,442,017$ 99,036,420$ 99,475,136$
Net Position By Component
Invested in Capital Assets 81,696,386 89,593,423 93,342,590 93,380,410 95,251,762
Restricted - - - - 103,029
Unrestricted 10,147,716 7,313,746 6,099,427 5,656,010 4,120,345
91,844,102$ 96,907,169$ 99,442,017$ 99,036,420$ 99,475,136$
(Continued)
SOURCE: East Valley Water District - Finance Department
EAST VALLEY WATER DISTRICT
Changes in Net Position by Component - Continued
Last Ten Fiscal Years
91
Year ended June 30,Year ended June 30,
2012 2013 2014 2015 2016
Change In Net Position
Operating Revenue 28,652,017$ 31,513,194$ 32,620,577$ 30,743,445$ 33,024,082$
Operating Expenses 24,664,829 24,859,076 29,191,176 29,146,339 32,002,722
Operating Income (Loss)3,987,188 6,654,118 3,429,401 1,597,106 1,021,360
Non Operating Revenue
(Expenses)
Investment Income 84,094 55,310 49,846 100,830 146,874
Other Income 137,094 397,796 334,700 800,278 830,806
Interest Expense (1,451,516) (1,445,981) (1,917,676) (1,980,062) (1,843,440)
Amortization (35,284) (69,038) (99,688) - -
Loss on Disposal of Assets - - (606,085) - -
(1,265,612) (1,061,913) (2,238,903) (1,078,954) (865,760)
Special Item
Abandoned Projects - - - (2,413,478)
Change in Acounting Estimate - - - - (653,199)
Capital Contributions 3,562,822 832,515 6,369,890 596,940 732,642
Change in Net Position 6,284,398 6,424,720 7,560,388 (1,298,386) 235,043
Prior Period Adjustment 2,861,951 (537,099) - (7,956,231)
Net Position - Beginning 99,475,136 108,621,485 114,509,106 122,069,494 112,814,877
Net Position - Ending 108,621,485$ 114,509,106$ 122,069,494$ 112,814,877$ 113,049,920$
Net Position By Component
Invested in Capital Assets 96,919,789 95,258,164 101,757,787 98,091,685 103,222,160
Restricted 416,250 920,554 2,274,769 2,322,238 2,276,695
Unrestricted 11,285,446 18,330,388 18,036,938 12,400,954 7,551,065
108,621,485$ 114,509,106$ 122,069,494$ 112,814,877$ 113,049,920$
SOURCE: East Valley Water District - Finance Department
EAST VALLEY WATER DISTRICT
Operating Revenue by Source
Last Ten Fiscal Years
92
Wastewater Wastewater Total
Year Ended Water Meter System Treatment Operating
June 30,Sales Charges Charges Charges Other Revenue
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 4,531,355 6,907,828 924,522 30,743,445
2016 11,927,523 8,063,077 4,286,594 7,165,655 1,581,233 33,024,082
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
$35,000,000
Other
Wastewater
Treatement Charges
Wastewater System
Charges
Meter Charges
Water Sales
EAST VALLEY WATER DISTRICT
Water Operating Expenses
Last Ten Fiscal Years
93
Transmission Customer Accts,Total
Year Ended Source of Water &General, &Water Oper
June 30,Supply Pumping Treatment Distribution Admin Expenses
2007 390,124$ 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
2016 2,442,061 696,432 799,947 2,327,185 8,782,957 15,048,582
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
$16,000,000
Customer Accts,
General, & Admin
Transmission &
Distribution
Water Treatment
Pumping
Source of Supply
EAST VALLEY WATER DISTRIC T
Wastewater Operating Expenses
Last Ten Fiscal Years
94
Customer Accts,Total
Year Ended Wastewater Wastewater General, &Wastewater Oper
June 30,Collections Treatment Admin Expenses
2007 377,919$ 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
2016 407,913 7,302,389 2,752,779 10,463,081
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
$12,000,000
Customer Accts,
General, & Admin
Wastewater
Treatment
Wastewater
Collections
EAST VALLEY WATER DISTRICT
Water Sales and Production
Last Ten Fiscal Years
95
Water Sales Water Produced
(Acre Feet)(Acre Feet)
25,015 27,252
21,375 24,144
21,660 23,700
19,803 21,792
18,712 20,605
19,708 20,982
20,036 22,308
19,910 20,665
17,431 18,494
14,999 16,614
SOURCES: East Valley Water District - Finance and Operations Departments
2016
2015
2007
2008
2009
2010
2012
2011
Year Ended
June 30,
2013
2014
0
5,000
10,000
15,000
20,000
25,000
30,000
Water Sales
Water Produced
EAST VALLEY WATER DISTRICT
Revenue Rates for Water
Last Ten Fiscal Years
96
Year ended June 30,
2007 2008 2009 2010 2011
Year ended June 30,
2007 2008 2009 2010 2011
7.50$ 8.40$ 10.45$ 10.45$ 11.54$
7.50 8.40 10.45 10.45 11.54
14.00 15.70 14.63 14.63 17.56
29.50 33.00 18.81 18.81 32.49
42.50 47.60 30.39 30.39 74.47
74.50 83.50 114.94 114.94 137.40
124.00 139.00 146.29 146.29 227.30
241.00 270.00 219.44 219.44 452.06
362.00 405.00 303.04 303.04 721.76
(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 1.08$ 1.20$ 1.35$ 1.35$ 1.49$
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
97
Year ended June 30,Year ended June 30,
2012 2013 2014 2015*2016
Tier 1-$1.45 Tier 1-$1.45
Tier 2-$2.07 Tier 2-$2.07
Tier 3-$2.89 Tier 3-$2.89
Year ended June 30,Year ended June 30,
2012 2013 2014 2015*2016
12.58$ 13.71$ 13.71$ 20.96$ 20.96$
12.58 13.71 13.71 26.61 26.61
19.14 20.87 20.87 37.92 37.92$
35.41 38.60 38.60 66.19 66.19
81.17 88.48 88.48 100.12 100.12$
149.77 163.25 163.25 207.54 207.54
247.76 270.06 270.06 365.85 365.85$
492.74 537.09 537.09 744.67 744.67
786.72 857.52 857.52 1,366.62 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$
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
98
Year ended June 30,
2007 2008 2009 2010 2011
Residential (1 to 3 units)
Flat Monthly Charge 7.00$ 7.75$ 9.75$ 10.84$ 12.93$
Commercial
Flat Monthly Charge - - - - 3.28
plus,
Charge per HCF 0.34 0.37 0.49 0.55 0.46
Year ended June 30,
2007 2008 2009 2010 2011
Residential
Flat Monthly Charge
Residential (1 unit)14.50$ 14.50$ 15.25$ 15.25$ 16.00$
Multi-Family (2 units)14.50 14.50 15.25 15.25 16.00
Multi-Family (3 units)14.50 14.50 15.25 15.25 16.00
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 0.87 0.87 0.95
Retail 1.70 1.70 1.79 1.79 1.90
Restaurants/Lounges 1.84 1.84 1.93 1.93 2.00
Laundromats 1.15 1.15 1.21 1.21 1.30
Dry Cleaners 1.70 1.70 1.79 1.79 1.90
Schools/Churches 0.62 0.62 0.65 0.65 0.70
Governments/Municipal 1.32 1.32 1.39 1.39 1.50
Convalescent Homes 0.84 0.84 0.88 0.88 0.95
Hotels 1.84 1.84 1.93 1.93 2.00
Ofc Bldgs/Motels 1.32 1.32 1.39 1.39 1.50
Auto Repair/Svc Stations 1.17 1.17 1.23 1.23 1.30
Car Wash 1.17 1.17 1.23 1.23 1.30
(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
99
Year ended June 30,Year ended June 30,
2012 2013 2014 2015*2016
Residential (1 to 3 units)
Flat Monthly Charge 14.09$ 15.36$ 15.36$ 15.36$ 15.36$
Commercial
Flat Monthly Charge 3.58 3.90 3.90 3.90 3.90
plus,
Charge per HCF 0.50 0.55 0.55 0.55 0.55
Year ended June 30,Year ended June 30,
2012 2013 2014 2015*2016
Residential (Flat Monthly Charge)
Flat Monthly Charge
Residential (1 unit)18.50$ 18.50$ 18.50$ 18.50$ 19.18$
Multi-Family (2 units)18.50 18.50 18.50 18.50 38.37
Multi-Family (3 units)18.50 18.50 18.50 18.50 57.55
Commercial
Flat Monthly Charge 2.40 2.40 2.40 2.40 3.18
plus,
Charge per HCF:
Multi-family (4 + units)1.25 1.25 1.25 1.25 1.36
Retail 2.10 2.10 2.10 2.10 2.28
Restaurants/Lounges 2.70 2.70 2.70 2.70 2.93
Laundromats 1.50 1.50 1.50 1.50 1.63
Dry Cleaners 2.10 2.10 2.10 2.10 2.28
Schools/Churches 1.10 1.10 1.10 1.10 1.19
Governments/Municipal 1.50 1.50 1.50 1.50 1.63
Convalescent Homes 1.35 1.35 1.35 1.35 1.46
Hotels 2.70 2.70 2.70 2.70 2.93
Ofc Bldgs/Motels 1.50 1.50 1.50 1.50 1.63
Auto Repair/Svc Stations 1.30 1.30 1.30 1.30 1.41
Car Wash 1.30 1.30 1.30 1.30 1.41
(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
Active Services by Type
Last Ten Fiscal Years
100
Year Ended Residential Multi-Family Total
June 30,(1 to 3 units)(4+ units)Commercial Irrigation Fire Svcs Service
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
2016 19,526 463 988 275 1,339 22,591
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
101
Water Percentage Water Percentage
Consumed of Total Consumed of Total
Customer (AF)Rank (%)(AF)Rank (%)
San Bernardino City Unified School District 599 1 3.60%421 2 1.54%
Patton State Hospital 345 2 2.08%262 5 0.96%
City of Highland 274 3 1.65%293 4 1.08%
San Manuel Mission Indians 238 4 1.43%188 8 0.69%
East Highlands Ranch 228 5 1.37%487 1 1.79%
San Manuel Indian Bingo & Casino 208 6 1.25%373 3 1.37%
Victoria Village Apts 105 7 0.63%- 0.00%
Stubblefield Mobile Home Parks & Offices 102 8 0.61%230 6 0.85%
Valencia Lea Mobile Home Park 100 9 0.60%141 9 0.52%
Village Lakes Homeowners Assoc 99 10 0.59%208 7 0.76%
Safety Investment 136 10 0.50%
Total - Top 10 2,297 13.83%2,740 10.05%
Total - District 16,614 100.00%27,252 100.00%
SOURCES: East Valley Water District - Customer Service and IT Departments
20072016
EAST VALLEY WATER DISTRICT
Ratio of Outstanding Debt
Last Ten Fiscal Years
102
As a Share of
Outstanding Per Personal
Debt Capita Income
2007 $ 24,823,814 $ 380 1.29%
2008 23,049,105 373 1.24%
2009 21,183,730 339 1.16%
2010 19,221,480 302 1.03%
2011 33,545,000 518 1.70%
2012 35,950,760 546 1.76%
2013 53,618,412 573 1.81%
2014 56,262,882 592 1.80%
2015 54,529,323 536 *
2016 52,468,718 516 *
*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
$65,000,000
Outstanding Debt
EAST VALLEY WATER DISTRICT
Debt Service Coverage
Last Ten Fiscal Years
103
Gross Operating Net Available
Revenue(1)Expenses (2)Revenue Principal Interest Total
16,028,695$ 9,450,039$ 6,578,656$ 2,025,825$ 1,120,815$ $3,146,640 2.09 %
16,187,479 10,071,445 6,116,034 1,774,710 1,120,091 2,894,801 2.11
15,510,043 11,714,619 3,795,424 1,865,373 1,035,456 2,900,829 1.31
16,911,310 11,939,606 4,971,704 1,962,250 845,499 2,807,749 1.77
18,286,850 11,129,387 7,157,463 1,347,250 828,894 2,176,144 3.29
20,225,013 11,424,899 8,800,114 1,048,319 980,000 2,028,319 4.34
27,397,559 11,022,233 16,375,326 1,095,000 1,382,013 2,477,013 6.61
20,662,750 13,219,850 7,442,900 1,167,718 1,840,671 3,008,389 2.47
20,662,750 13,290,243 7,372,507 1,546,490 1,813,348 3,359,838 2.19
22,543,107 15,048,582 7,494,525 1,478,399 1,633,038 3,111,437 2.41
Gross Operating Net Available
Revenue(1)Expenses (2)Revenue Principal Interest Total
* * * * * * *
* * * * * * *
* * * * * * *
* * * * * * *
* * * * * * *
10,674,998 9,500,834 1,174,164 75,000 36,650 111,650 10.52
11,600,800 10,139,532 1,461,268 80,000 35,100 115,100 12.70
11,974,164 10,463,608 1,510,556 85,000 184,621 269,621 5.60
11,578,742 10,712,477 866,265 85,000 229,725 314,725 2.75
12,095,372 10,463,081 1,632,291 90,000 225,775 315,775 5.17
(1)
(2)Operating expenses, less depreciation, for the utility fund.
*Not Applicable
SOURCE: East Valley Water District - Finance Department
2013
2007
2008
Water Department
Wastewater Department
Coverage
2014
2015
2016
2009
2010
2011
2012
Year Ended
June 30,
Debt Service
Year Ended
Gross revenue includes all operating revenue, interest income, other non-operating revenue and connection
fees from the utility fund.
2016
2015
2007
2013
2014
2008
2009
2010
2011
2012
Coverage
Debt Service
June 30,
EAST VALLEY WATER DISTRICT
Demographics and Economic Statistics
Last Ten Calendar / Fiscal Years
104
Personal
Income Personal
District Unemployment (thousands Income
Population(3)Rate (1), (3)Population(2)of dollars)(2)Per Capita(2)
65,378 5.1%1,992,161 58,473,029$ 29,352$
61,855 6.4%2,003,735 60,145,538 30,017
62,455 10.5%2,013,960 58,693,991 29,144
63,567 13.4%2,041,689 59,850,108 29,314
64,698 13.3%2,064,663 62,952,683 30,491
65,850 12.2%2,080,651 64,633,723 31,064
93,500 10.6%2,093,306 66,321,591 31,683
95,000 8.9%2,112,619 69,487,877 32,892
101,733 7.1%***
101,733 6.0%***
*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.
(2)Bureau of Economic Analysis (BEA)
Computed using midyear population estimates.
(3)Fiscal Year ends on June 30 of the year that is shown.
SOURCE: East Valley Water District - Finance Department
June 30,
County of San Bernardino
Year Ended
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
EAST VALLEY WATER DISTRICT
Full-Time Employees
Last Ten Fiscal Years
105
Year Ended District Engineering &
June 30,Administration Maintenance Operations Total
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
2016 28 27 12 67
SOURCES: East Valley Water District - Finance and HR Departments
0
10
20
30
40
50
60
70
District Administration
Engineering & Maintenance
Operations
EAST VALLEY WATER DISTRICT
Operating and Capacity Indicators for Water and Wastewater
Last Ten Fiscal Years
106
Annual Average
Miles of Number of Production Production
Water Main Fire Hydrants (MG)(MGD)
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
316 3,005 5,414 15
Annual Daily
Miles of Service Sewerage Sewerage
Wastewater Main Connections (MG)(MGD)
**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
224 24,069 4,872 13
*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,
2007
2008
2009
2010
2012
2013
2007
2014
2015
Note: The District Sewer Master Plan was updated in October 2013, providing more accurate
information on wastewater flows.
2016
2016